PPL Earnings Call Nuggets: MATS Impact and Capital Reduction Programs
Justin McCann – S&P Capital IQ: I have two questions for Paul and one for Bill. For Paul, what’s the effective tax rate for the U.K. is expected to be 22% what would it be for the consolidated?
Paul A. Farr – EVP and CFO: On the consolidated basis for ’13 between 27% and 28% for 2013.
Justin McCann – S&P Capital IQ: After the exchange of the 2025 8.857, or the 2021 4.6 what is your current weighted average cost of capital and where are you targeting for by the end of ’13?
Paul A. Farr – EVP and CFO: From an interest expense level, we’ll basically end up with the same level P&L interest expense on the converted notes at the higher part of balance than we were sitting on with the notes that were on Ironwood. Your question on weighted average cost of capital is that what segment or what, but we’re at corp or at?
Justin McCann – S&P Capital IQ: Yeah, corp?
Paul A. Farr – EVP and CFO: I don’t have that number off the top of my head right now.
Justin McCann – S&P Capital IQ: Okay.
Paul A. Farr – EVP and CFO: Using a market implied rate across all of the segments and blending that and looking at the average debt levels, especially with the holdco leverage that we’ve got in the U.K. and in Kentucky and the bit that we have at cap funding that includes the convertible securities, it’s going to be in the 7% to 8% range.