Good day, ladies and gentlemen and welcome to the fourth quarter 2008 Avista Corporation earnings conference call. My name is Erica and I will be your coordinator for today. (Operator Instructions) I would now like to turn the presentation over to your host for today's call, Mr. Jason Lang, Investor Relations Manager. You may proceed, sir.

Thank you, Erica. Good morning everyone and welcome to Avista's fourth quarter and fiscal year 2008 earnings conference call. Our earnings were released pre-market this morning and the release is available on our website at avistacorp.com. Joining me this morning are Avista Corp. Chairman of the Board, President and CEO, Scott Morris; Executive Vice President Malyn Malquist; Senior Vice President and CFO Mark Thies; Vice President of Finance and Treasurer, Ann Wilson; Vice President State and Federal Regulation, Kelly Norwood; Vice President, Controller and Principal Accounting Officer Christy Burmeister-Smith; and the President and CEO at Advantage IQ, Stu Stiles. Before we begin, I'd like to remind you that some of the statements that will be made today are forward-looking statements that involve risks and uncertainties which are subject to change. A reference to the various factors which could cause actual results to differ materially from those discussed in today's call, I will direct you to our Form 10-K 2007 and Form 10-Q for the quarter ended September 30, 2008, which are available on our website. To begin this presentation I would like to recap the financial results presented in today's press release. For the fourth quarter of 2008, our consolidated net income was $0.32 per diluted share compared to net income of $0.26 per diluted share for the fourth quarter of 2007. For the year ended December 31, 2008, our earnings were $1.36 per diluted share compared to $0.72 per diluted share for the year ended December 31, 2007. Now I'll turn the discussion over to Avista's Chairman of the Board, President and Chief Executive Officer, Scott Morris.

Thank you, Jason, and good morning everyone. Overall, we are pleased with our results for the fourth quarter and year ended December 31, 2008. We expect continued improvement in our financial results in 2009 due to the implementation of a general rate increase in Idaho that became effective October 1st and the implementation of a general rate increase in Washington effective January 1, 2009. A previous general rate increase in Washington implemented at the beginning of 2008 partially contributed to the improvement in our utility results as well as lower interest costs. Avista Utilities also had weak earnings in 2007. In addition to the improvement at the utility, our consolidated results improved as compared to 2007, which were lower due to the net loss at Avista Energy in 2007. Despite a good winter snow pack in early 2008 the late spring runoff resulted in excess water being spilled which yielded lower than normal hydroelectric generation for the first half of the year. Purchase power costs were higher than expected due in part to colder than normal temperatures starting the first quarter heating season and an increase in the price of wholesale power. Therefore, for fiscal year 2008 we absorbed $7.4 million of costs under the energy recovery mechanism in Washington compared to $8.5 million in 2007. Also contributing to the increase and net income for 2008 was $5.7 million of interest income related to the company's 2001 through 2003 tax years and the resulting refund received from the Internal Revenue Service, which included the settlement of the indirect overhead cost issue. This was partially offset by $1.4 million of interest expense related to 2004 and 2005 tax years. Both amounts were recorded during the third quarter of 2008. As approved by the Idaho Public Utility Commission electric rates for Idaho…

Thanks, Scott and good morning everyone. For 2008 our capital expenditures were approximately $220 million. Our capital expenditures are expected to be approximately $210 million in 2009 and 2010. And we expect our rate base to grow by 5 to 7% per year in 2009, 2010 and 2011. We are planning to upgrade certain hydro projects and we will continue to enhance our natural gas and electric distribution system. The second quarter of 2008 we completed the acquisition of a wind generation site. We expect to construct a 50 megawatt generation facility at an estimated cost of over $125 million. To help reduce cost and resulting rate pressure we have recently decided to delay this project until 2013. The delay is partially because of the company’s ability to meet its renewable resource requirements and growing customer demand with ongoing upgrades at the company’s hydroelectric facilities and by acquiring renewable energy credits. We remain committed to the project but believe that the current economic environment warrants pushing the project out a few years. As we mentioned in the third quarter call, we are participating in planning activities for the development of a proposed 3,000 megawatt transmission project that would extend from British Columbia, Canada to northern California. Other participants include Pacific Gas and Electric Company, Pacific Corp. and British Columbia Transmission Corporation. We have executed an agreement with the other participants in order to perform preliminary studies and assessments for the project including electrical system studies and resource mapping of possible transmission line corridors. Under the agreement we have committed to contribute $600,000 or 12% of the total preliminary cost of the project. Avista utilities contributed $0.33 per diluted share for the fourth quarter 2008 compared to $0.23 per diluted share for the fourth quarter of last year. For the full…

Thanks, Mark and good morning. Advantage IQ's net income for the fourth quarter and fiscal year 2008 were slightly below the comparable periods of 2007. This was primarily due to the increase in our ownership percentage in the business as a result of the acquisition of Cadence Network, effective July 2, 2008 and the amortization of intangible assets related to the Cadence acquisition. However, our contribution of $0.11 per diluted share still met our expectations for 2008. For 2008 total revenues increased 25% from service revenues that increased 40%, partially offset by a 37% decrease in interest revenue. In 2008 we processed bills totaling $60.7 billion, an increase of $4.2 billion or 34% as compared to 2007. The addition of Cadence Network added $2.1 billion in energy dollars managed for 2008. During 2009 we are expecting slower internal growth than had been expected as some of our customers are experiencing bankruptcies and store closures in these tough economic times. Additionally, interest revenue is expected to be lower in 2009 due to the historic low short-term interest rate environment that we are currently experiencing and that is expected to continue throughout 2009. However, the overall services provided by Advantage IQ are considered valuable to current and potential customers as Advantage IQ is able to assist them in reducing costs in these difficult economic times. We are pleased with the way the business has started in 2009. Our parent company plans to monetize at least a portion of its investment in Advantage IQ during the next two to four years. The potential monetization could be contemplated through an initial public offering or sale of the business depending on future market conditions, growth of the business and other factors. Under the transaction agreement the previous owners of Cadence Network can exercise the right to redeem their shares of Advantage IQ stock during July, 2011 or July, 2012 if Advantage IQ is not monetized through either an initial public offering or sale of the business to a third party. Their redemption rights expire on July 31, 2012. The redemption price would be determined based on the fair market value of Advantage IQ at the time of the redemption election as determined by certain independent parties. The consolidation of the two companies continues to go very well. We have met all major integration milestones and have substantially met financial goals with the combined companies. Therefore, we remain optimistic about the future of the business. Now, I'll turn this presentation back over to Mark Thies to review our other businesses, dividend information and earnings guidance.

Thanks, Stu. In other business for 2008 our results improved over 2007 primarily because of the net loss from Avista Energy in the prior year. The remaining activities of Avista Energy are no longer a reportable business segment and are included in other for segment reporting purposes. The fourth quarter of 2008 we absorbed some market losses on venture fund investments due to overall economic conditions and we incurred some litigation costs. These were the primary drivers of the net loss of $2.2 million in our other businesses. Over time as opportunities arise we plan to dispose of assets and phase out operations that do not fit with our overall corporate strategy. However, we may invest incremental funds to protect our existing investments and invest in new businesses that fit with our overall corporate strategy. As we have indicated in past calls management intends to recommend that the board consider gradually increasing the dividend pay out ratio to become more in line with the average pay out ratio for the utility industry which is currently approximately 60% to 70% of earnings. The board considers the level of dividends on a regular basis, taking into account numerous factors including financial results, business strategies and economic and competitive conditions. The declaration of dividends is within the sole discretion of the board. Last week the board approved a quarterly dividend of $0.18 per share. We are confirming our 2009 guidance for consolidated earnings to be in the range of $1.40 to $1.60 per diluted share. We expect Avista Utilities to contribute in the range of $1.30 to $1.45 per diluted share for 2009. Our outlook for Avista Utilities assumes among other variables normal precipitation, temperatures and hydroelectric generation. We expect Advantage IQ to contribute in the range of $0.12 to $0.14 per diluted…

Thank you, Mark. Last Friday Malyn Malquist announced that he will retire from the company effective March 31st. Malyn has been an invaluable member of our senior leadership team since 2002. As you know Malyn was our CFO from 2002 through September 2008. His extensive background in the utility sector finance and management has been instrumental in strengthening our company's financial health and helping us attain important goals including regaining our investment grade credit rating. We greatly appreciate it Malyn's knowledgeable insight, his leadership and his service to our stakeholders. I also appreciate all of Malyn's efforts and commitment to assure that the CFO transition went very smoothly. Now, I would like to turn the call over to Malyn.

Well thanks, Scott, for your kind words. Good morning everyone. You can't see me but I am smiling quite broadly this morning. Most of you know that we've been planning for my retirement for the past year. Well, actually I have been planning for this for over 30 years. We've worked to have a very smooth transition from my tenure as a company CFO to Mark Thies our new CFO. This is now complete. Mark is doing a great job and has proven to all of us that we made a wise choice. So it's time for me to move on to the next phase of my life. I want to thank everyone at Avista for giving me the opportunity to be a part of this fine team. I particularly appreciate [Gary Healy] for not taking no for an answer in 2001 and 2002 as he spent a year trying to convince [Georgia] and me to leave Reno. The officers and employees of Avista are outstanding professionals. I appreciate the support they've given me as well as the constant support that I have received from our Board of Directors. I have enjoyed my time here immensely. One of my favorite parts of my job has been working with the financial community. I appreciate the support and the opportunity to work with many analysts and bankers whom I have come to know over the past 30 years. I want to wish each of you continued success and all the best in your careers and in your personal life's. Thank you for all that you've done for me. Now, I would like to turn the call back over to Jason.

Thanks, Malyn. Now, we'll open this call up for questions.

(Operator Instructions). Your first question comes from the line of Paul Ridzon – Keybanc. Paul Ridzon – Keybanc Capital Markets: I had a few questions. First, what's the embedded price of natural gas in your Washington electric rates?

Currently the embedded costs in existing rates is $8.30 per dekatherm for the unhedged portion. Paul Ridzon – Keybanc Capital Markets: And that will change with the next rate order?

Yes, it will. Paul Ridzon – Keybanc Capital Markets: What's the current, I know it can change pretty quickly, but what are you seeing as far as the snow pack?

Paul, right now snow pack is a little bit below normal. We caught up but it's been dry. However, I think a couple of things to remember about that. You're right, it can catch up pretty quickly. I think if we get normal precipitation we're not too worried. The other thing to remember is that natural gas prices are quite low right now as you know and wholesale power prices are very low for the region. So overall I like our position. Paul Ridzon – Keybanc Capital Markets: Are you aggressively trying to lock in some of that, those low prices?

We are aggressively executing our hedging strategies and yes, we are making some purchases to take advantage of the market. Paul Ridzon – Keybanc Capital Markets: And just at in the fourth quarter other segment had a kind of a wide swing of $0.04 can you just give a little more detail about what happened with these venture funds and litigation?

Well the venture funds they're small investments that we have and we mark those to market and as the economy has come off significantly in the fourth quarter their performance, well actually throughout 2008, their performance had suffered and so we did take impairment about half of that amount was related to a couple of the venture fund investments that we have. The other side of the litigation, we don’t really comment on ongoing litigation. We had some litigation costs related to one of our subsidiaries and we incurred those costs of about $1 million in the fourth quarter. Paul Ridzon – Keybanc Capital Markets: And just – you gave your Washington and Idaho rate case parameters. What was the rate base in each of those jurisdictions you filed for?

I don’t have the exact rate base numbers. We may have to circle back on that. Paul Ridzon – Keybanc Capital Markets: And then the 150 basis points of potential under earning you kind of highlighted for the various reasons, what is that in the net income?

Again he's looking at the rate base and the equity. We have approximately $1 billion of equity. Paul Ridzon – Keybanc Capital Markets: Okay. That's…

So from a return on equity perspective you can do the math on that. Paul Ridzon – Keybanc Capital Markets: I'll jump back in queue with some further questions. Thank you.

Your next question comes from Brian Russo – Ladenburg Thalmann. Brian Russo – Ladenburg Thalmann: Good morning. Can you tell us what your actual ROE was in 2008? And then remind us of the allowed ROE's in your jurisdictions that have been approved with the new rates effective for '09?

I'll start with the allowed ROEs for '09. In Washington we have a 10.2% allowed ROE. In Idaho it's also 10.2%. In Oregon it's 10%. And then on an actual overall for our utility was 7.95% and then consolidated for the entire company 7.71%. Brian Russo – Ladenburg Thalmann: Okay. So, I guess what you're kind of insinuating in your press release and earlier comments is that you almost need to haircut that 10.2% by nearly 150 basis points to kind of fit into your earnings guidance?

That's what we're saying with the expectation of continued regulatory lag as well as certain costs that we're not currently allowed recovery for. So we're trying to set the expectation building off that allowed return. That's correct. Brian Russo – Ladenburg Thalmann: Okay. What load growth assumptions are embedded in the 2009 guidance and then maybe you could talk a little bit about the various customer class sales in the fourth quarter of '08?

We've got embedded in growth about 1.5% roughly and as far as growth by sectors I don’t have that in front of me, Brian. Brian Russo – Ladenburg Thalmann: Just could you kind of qualitatively talk about what you're seeing on the industrial side?

Sure we have seen some reduction in industrial growth primarily in forest products and mining. However, we have not seen significant reduction in our residential and commercial classes. As a matter of fact we've continued to see strong usage by our customers in those areas. So while in certain sectors we've seen reductions we're not seeing reductions in other parts of our industrial load growths. It's primarily mining and timber. Brian Russo – Ladenburg Thalmann: All right and then you're assuming normal hydro conditions. Is that based off of a NOAA forecast and if so maybe you could talk about specifically what forecast you're based off or if there is some sort of internal type of forecast you guys use as well?

Brian, we're usually forecast around normal hydro and as you know it's very challenging for us to predict the weather, so we look at our snow pack predictions and let me just give you December as an example of why we predict normal. First going into the first two weeks of December 2008, our snow pack was really roughly about 30% of normal at that point and we were quite concerned. Over the next two weeks we received over 80 inches of snow and our snow pack went up to over 100% of normal in less than a little over two weeks. We dried out in January and a little bit of February, so now we’re kind of again below normal, but if we get normal precipitation over the next two or three months we’re not too concerned. So it’s really challenging for us to try to peg it exactly. So the best thing that we can do at this point, this early in the snow year is to predict normal precipitation and at this point I don’t have any reason to believe that that’s not going to happen. If you look at all of the NOAA information right now, it basically says they’re predicting normal precipitation for the year. They are not predicting below normal precipitation. Some services are actually predicting above normal precipitation so given all of that information we feel that a normal precipitation forecast is the proper thing to do. Brian Russo – Ladenburg Thalmann: Right. Understood. So I guess the next eight weeks are critical for the 2009 hydro conditions and on your next quarterly conference call, you’ll have more certainty as to what those conditions are like?

Absolutely. By late April or early May we’ll certainly know what our hydro conditions are. Brian Russo – Ladenburg Thalmann: Okay, just real quickly, on Advantage IQ, you’re forecasting slower internal growth yet you’re maintaining your $0.12 to $0.14 range, I’m just curious why you’re not seeing more pressure on margin or earnings given your outlook?

Yeah, Ryan, we’re still very bullish about our business. We have a strong value proposition and so we continue to see good results on the sales front. We maintain our guidance and for that reason we expect our business to grow as projected. As stated, we do have pressures on our business and we are continuing to look at cost reductions and ways for us to be more efficient and mitigate our costs and but with all of that we continue to be very optimistic about the business.

Your next question comes from James Bellessa – D.A. Davidson & Company James Bellessa – D.A. Davidson & Company: Did you tell us what the utility's equity position is? I heard book value of about $1 billion and that’s the overall business. What’s the equity in the utility?

A little over $900 million. James Bellessa – D.A. Davidson & Company: So that would be something like $16.50 a share or something like that, something in that magnitude?

You can do the calculation. Yes. James Bellessa – D.A. Davidson & Company: $16.50-$17.00. So here we have the stock at or below that level of your overall book value and then your utility. Would you be issuing stock under your issuance plans at the low book value?

Our intention, Jim, would not to issue stock below our book value. So we will continue to watch market. Yes, currently we are just below that number, but our expectations would not be to issue stock below that level. James Bellessa – D.A. Davidson & Company: You indicated that you had this litigation at one of your subsidiaries, I would assume that it is not your utility or your Advantage IQ subsidiaries?

That would be correct. James Bellessa – D.A. Davidson & Company: And are there any subsidiaries where– that are large enough to have a million dollars' litigation? It sounds like – what are the sizes of those subsidiaries that you have?

It’s a legacy case left over from Avista Energy. James Bellessa – D.A. Davidson & Company: And then you indicated you had a lot of snow at the end of the year and first of January, and it's melted. It sounds like and perhaps does that allow good runoff in the first quarter and helps your first quarter results?

You know, Jim, I think it was drier than normal in January as you well know. We did have some extra water running both from [inaudible] and the Spokane River. James Bellessa – D.A. Davidson & Company: In your Washington decision that went into effect in January 1, 2008, it was both electric and natural gas $33.5 million. Now you’ve had a whole year under those rates, did you collect the $33.5 million or was there something that helped you have more than that or less than that?

Jim, we don’t track what the change in revenue is from a single rate adjustment. As you know, there are changes in revenues related to weather, and other changes in revenue; also we have expense changes, too. It’s pretty difficult to track a single change in rates. James Bellessa – D.A. Davidson & Company: And your 10-K, when will that be filed?

February 27th.

Your next question comes from the line of Hasan Doza – Luminus Management. Hasan Doza – Luminus Management: A couple of quick questions, first on pension, can you refresh us as to what is the pension expense for '09 and whether or not it had any EPS impact?

The pension expense we filed in our request for our rate case totaled $22.5 million of which about two-thirds of that will be expense and one-third of that goes to capital in our labor loadings. That would be the anticipated amount that we would expect and that is included in our expectations and our guidance. Hasan Doza – Luminus Management: Was there a cash contribution in '09 in your pension plan and if there was do you have the amount?

What we have said was the expected contribution, we have not made the contribution yet in 2009, but the expected contribution we expect to be approximately $48 million. That compares to a $28 million contribution that we made in 2008. But it is an increase. Hasan Doza – Luminus Management: The second question on Advantage IQ, you guys mentioned some of the store closings and bankruptcies in your client base. I mean can you give a qualitative idea as to what types of businesses are having those issues and secondly, when you kind of sign on new customers, given the general weakness, are you being flexible in your terms when you sign up new customers right now versus say six or eight months ago?

Yes. First of all, when we look at signing on new customers we’re always working very closely with our clients about terms and pricing, etc. so, we’ve always maintained that posture and continue to maintain that posture as I said, we actually started out the year very strong and we’re bullish about our business. In terms of store closings and bankruptcies, maybe a couple of the most notable might be Circuit City for instance, is going through a liquidation. We’ve got pretty strong retail client base. 500 clients, 82 Fortune 500 clients and you’ve got companies like a Circuit City, like a Linens and Things for instance where you do see liquidation and going out of business. We’re just trying to understand what those impacts might look like through '09 and into 2010 and prepare for it.

Your next question comes from the line of Chris Shelton – Millennium Partners. Chris Shelton – Millennium Partners: On the Dribble Program, I thought that you said that you did 750,000 shares I guess in fourth quarter, how much do you have left on that program to do?

It’s a 2 million share program. We did 750,000, but that was in third quarter of 2008. Chris Shelton – Millennium Partners: The third quarter and the 750,000 is all you’ve done.

So we have 1,250,000 shares remaining under that plan. Chris Shelton – Millennium Partners: But you’ve got some room left on there, I guess, the leftover amount, should we expect you, assuming the markets are conducive to doing equity, assume you kind of keep using that program to access the equity markets for your own [inaudible] plan.

To the extent, yes, again there are a lot of factors that go into that to the extent that the market comes back and we determine that that makes sense. Yes, we would anticipate using that plan to meet our needs. Chris Shelton – Millennium Partners: Okay, and as you said in the release the other option is you can use short-term debt in the meantime.

Yes, we have plenty of liquidity to be able to meet our needs through 2009. Chris Shelton – Millennium Partners: Okay and then a quick follow up on the pension, you said $48 million does that have to be done by a certain point in '09 or do you have some discretion on can you do it piecemeal?

By September 15th is when we have to make our contributions by if we want the tax deduction on it. So that is our expectation. Chris Shelton – Millennium Partners: Okay and finally I just wanted to ask one question on the Attorney General appeal, how would the refund be determined if they ruled that some should be refunded?

I'll let Kelly answer that, but again I want to emphasize that we are confident in the process that it was fully looked at. We had as we talked about agreement from staff over at low income [assets] and we're confident, however, if there is refunds and I don’t want you to really focus on that, but if there were to be.

If the court were to rule in Public Council's favor it would be remanded back to the Commission. The Commission would further consider the issues and they would make a decision and that would ongoing forward basis. As Scott mentioned we're pretty confident the Commission made the right decision. They had a sound basis for their decisions. Chris Shelton – Millennium Partners: Okay so this case is in the courts not in front of the Commission at this point?

That is correct. Chris Shelton – Millennium Partners: Okay so you're saying the court decision would be maybe mid-year and then post that it would be remanded back to the Commission if anything was to develop?

Yes and our expectation is it would be at least mid-year before we receive anything from the courts. Chris Shelton – Millennium Partners: Okay and have you reserved anything for that case yet, it sounds like you're pretty confident around it?

We have not reserved anything.

Your next question comes from Patrick McGlinchey – Sidoti & Company Patrick McGlinchey – Sidoti & Company: Just could you remind us on your – the forest product and the mining you were speaking of earlier, what portion of the business is that on the utility side?

I wouldn’t – it's not a huge portion. It's, as you know, we have a very diversified economy here in the region. I would say 25 years ago it would have been a much more devastating hit to our revenues but today I would say mining and forest products make up less than 10% of our industrial revenue if that. Patrick McGlinchey – Sidoti & Company: Okay and then just industrial on a whole then as a portion of the business?

Less than 20%. Patrick McGlinchey – Sidoti & Company: Okay and then just further with the economic conditions in the service areas, on the industrial side have you heard of anyone in the forest product or mining or any other industrial customers then that have planned to suspend their business for any period of time in the near future or is there any risk of that in 2009?

Well as you know, with forest products I mean with the housing starts being what they are that yes, we've seen significant amount of our bills in our service territory have laid off most of their workers at this point in time. And while we do have some mining that's been affected, particularly a couple in our northern Idaho area we do still have very strong growth happening at the Lucky Friday mine and some other mines. So I think it really depends on the commodity that they're mining and so we're seeing some weakness in some areas but continuing usage by others. Patrick McGlinchey – Sidoti & Company: Okay and then just quickly on the Advantage IQ side then, you sort of qualitatively spoke of the type of customers that you were seeing going through bankruptcy procedures and whatnot. But is there any quantitative numbers that you can give us, a percentage of the customer base that you've lost?

You know it's really early in the year and we're trying to, Patrick, get a handle on it as we watch the retail industry especially as we watch developments we're trying to understand how that might impact our business. The couple I cited were what we know about as we start out the year, I think what we'll do is watch very closely through '09. Continue to monitor events and work closely with our customers. So as we've indicated we've maintained guidance at $0.12 to $0.14 and we're bullish and excited about those.

And Patrick by the way our industrial revenues are 10.2% of our overall revenue.

And your final question is a follow-up from the line of Paul Ridzon – Keybanc Capital Markets Paul Ridzon – Keybanc Capital Markets: What kind of initial capital outlay do you have in IQ Project is that I wouldn’t imagine it was a whole lot of equipment or anything but is there any risk there?

No there really isn’t, Paul. It's minimal. Paul Ridzon – Keybanc Capital Markets: Okay and just again then in IQ, your 25% revenue growth, we don’t seem to be observing a whole lot of operating leverage can you just drill down a little bit deeper as to really kind of more detail about what's happening?

I mean we continue to drive efficiencies in our business and continue to manage costs very closely and very well. As we grow revenues I think we've seen a lot of downward pressure on our business with the interest rate environment. For goodness sakes you had December 16th you had Fed funds rates go to in effect zero and so I think that has put some downward pressure on the business and but in the face of that our value proposition is strong. We've continued to grow the business and add continue to add clients and customers so again we're pleased with that.

Paul, this is Malyn. I can't help but jump in with one last answer here. I think what you're seeing really is the fact that the reduction in interest revenue which really flows right down to the bottom line, that's a very profitable piece of our business, that has dropped significantly, the profitability on the customers that we are signing as new customers continues at about the same rate that it has historically. We're making good margins on those customers. It is competitive but we're being pretty selective and I think doing a good job, Stu and his team, of selling profitable business. So that side continues to be strong. We just have seen a real reduction in margins as a result of the interest rate environment and that's going to come back at some point.

It will and as Malyn mentioned we're real pleased that we maintained really a 96% retention rate on our clients over the last several years. And so we're heads down. We're going to keep growing the business, adding clients, which will grow our daily balance and then when and if the interest rate environment comes back in a couple of years then we'll be poised to move forward. Paul Ridzon – Keybanc Capital Markets: How much of the pressure is related to commodity prices coming off and therefore overnight balances being down?

Our daily balances are really up because we're adding clients and so it's much more very specific interest rate pressure. Paul Ridzon – Keybanc Capital Markets: Okay so falling gas prices aren’t really hurting you that much?

No our electricity expense is a much greater portion of our business. Paul Ridzon – Keybanc Capital Markets: And then just one last question on the appeal by OPC, if it were remanded back to the Commission would any Commission action be prospective or could it be retroactive? I was a little unclear on that?

My understanding is that they could go back if the court were to remand it back, it could be some refund. But bear in mind that of the issues that were raised the dollar amounts built in rates on the issue that were raised are pretty small. Paul Ridzon – Keybanc Capital Markets: OPC has proven to be pretty aggressive on tracing things that have been pretty fully vetted from what we've seen recently, would that be fair?

Again this is Washington, Paul not Oregon.

He's referring to Office of Public Accounting.

Office of Public Accounting, oh, I apologize.

You know if you look at the Commission's order, what you'll see I think is the Commission was pretty thorough in reviewing all of these issues. As we've stated before we think the Commission made the right decision based on solid evidence that they had in the records so we're, as I said before, pretty confident that we're in good shape here.

Your next question we have a follow up from the line of Brian Russo – Ladenburg Thalmann Brian Russo – Ladenburg Thalmann: Just on IQ can you give us a sales mix breakdown of what is exposed to the interest rate and the carrying side of the business versus service revenues?

Well really our entire business is exposed to the interest rate environment because we process and pay bills on behalf of our clients. As we look at our business we have a pretty significant retail base of customers, that's the base that we're watching most closely as we look at organic growth, bankruptcies closing stores etc. But our entire base of business we basically pay the bills for. Brian Russo – Ladenburg Thalmann: Okay can you confirm that the following are customers of IQ, Starbucks, Movie Gallery, Pier One Imports and Home Depot?

Really our customers really ask us not to identify them publically, most of those and so I just soon not Brian. Brian Russo – Ladenburg Thalmann: Okay one last question on IQ, you'd mentioned kind of a target of $100 million in revenue as like the critical mass you may need to effectively monetize that business. Just want to know if that's still the target and then number two are there any other roll up opportunities out there with any other privately held companies like your acquisition of Cadence earlier last year?

Yes we continue to, good questions, we continue to work at ways to potentially monetize our business as we said over the next two to four years. That $100 million target is definitely still our target and over the next couple of years we're going to continue to pursue that. That would give us the flexibility as the market turns around to take this business public if we decided to go that avenue. And then secondly we're always looking at opportunities to grow our business and always looking for ways to augment our services and provide more value to our customers, so we're going to continue to do that through '09.

And we have a follow-up question from James Bellessa – D.A. Davidson & Company. James Bellessa – D.A. Davidson & Company: Taxes other than income taxes went down about $2 million. Was there something unusual about the year ago fourth quarter or unusual about the fourth quarter of '08?

We did some property tax true ups in the fourth quarter and we used a consultant and they were able to help us lower our property taxes. James Bellessa – D.A. Davidson & Company: Will those change the pattern for the future or is it just the fourth quarter benefit?

We would anticipate that we would have stable – we got to a level where we expect that that will be stable going forward. We don’t expect continued reductions as we go forward.

And this concludes the question and answer portion of the call. I would now like to turn it over to Mr. Jason Lang for closing remarks.

I want to thank everyone for joining us today. We certainly appreciate your interest in our company. Have a great day.

Thank you for your participation in today's conference. You may now disconnect and have a wonderful day.