Last month, Supply Corporation placed its line in expansion project and service and I expect that Empire’s Tioga County Extension Project, which takes advantage of the relatively strong market north of the border, will be in service this quarter. Combined, those two projects will add $23.7 million in revenues in fiscal 2012. After the contracts underlying those projects have been ramped up to their full volumes, which will take about 18 months or so, annual pipeline and storage revenues will be impacted by about $36 million.Our utility turned in a very strong performance despite the continued weak economy. Thanks to a number of revenue protecting mechanisms, things like revenue decoupling, weather normalization, 90-10 symmetrical sharing. Our utility earnings are much less sensitive to macro economic cycles. This stability not only benefits our retail customers, but our shareholders as well. Like our pipeline and storage earnings, utility earnings are not particularly sensitive to commodity price volatility, which services as a nice hedge to E&P earnings.
National Fuel Gas' CEO Discusses F4Q 2011 Results - Earnings Call Transcript
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