2011 was a year of significant progress on our key initiatives. While there is still more work to be done, we are pleased that our investments to improve system reliability and customer service are producing tangible results. While our earnings were impacted by our increased spending on systems maintenance and tree trimming, this spending is having a positive effect on reliability and restoration performance. Throughout the year, our Power Delivery business invested nearly $900 million in transmission and distribution infrastructure, including projects focused on improving reliability and installing advanced technology. Investment such as these are important components of our strategy to provide enhanced value to our customers and investors. As seen on Slide 3, GAAP earnings from continuing operations for 2011 were $1.15 per share compared to $0.62 per share in 2010. Excluding special items in 2010, earnings would have been $1.24. Our 2011 earnings include $0.08 per share for mark-to-market losses resulting from economic hedging activities associated with the Retail Energy Supply business of Pepco Energy Services and lower earnings of $0.02 per share associated with the tax law changes in the District of Columbia. The effects of these items was excluded from the 2011 earnings guidance range. Excluding these items, our 2011 earnings from continuing operations would have been $1.25 per share compared to the 2011 guidance range of $1.15 to $1.25 per share. The increase in adjusted earnings per share from continuing operations for 2011 as compared to 2010 was primarily the result of higher transmission and distribution revenue due to higher rates driven from increased investment. Lower interest expense also contributed to the increase in adjusted earnings. Partially offsetting the earnings increases were higher Power Delivery operation and maintenance expense and the favorable income of income tax adjustments in the 2010 period. Later on the call, Tony will address financial results and our operating segment performance in more detail. But first I'll address some topics of interest.
Pepco Holdings' CEO Discusses Q4 2011 Results - Earnings Call Transcript
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