These firms are cautious due to a modest earnings growth and heavy capital expenditure in the near term. They also state that rising operating cost is a primary concern for the near term. Management apprehends slower customer growth and operating expense increases to cause the regulated ROE to fall below allowed ROE bands, prompting gas and electric rate cases in 2009. The Company expects the turmoil in the financial industry and the tightening of lending standards to delay the housing market recovery, which is currently not expected to start until 2H10. The firms believe that the Company is exposed to current economic volatility. The coal business is exposed to declining commodity prices and the utilities to the Florida housing slump.

While the Company operates in a growth-oriented service territory, which requires spending on new construction, the firms are of the opinion that the Company has adequate access to the capital markets to fund these costs. They believe that operating and maintenance expenses fluctuate, but management largely keeps them under tight control.