First quarter therm sales at Peoples Gas also reflected the mild weather in January and February and lower sales to residential and commercial customers. Unfortunately, Peoples does not benefit from cooling degree days, so the weather impact was more pronounced on the gas company, resulting in net income lower than last year. Peoples did benefit from higher throughput for power generation customers, as gas-fired units ran more in response to the low natural gas prices. Peoples Gas also continues to experience steady customer growth, with an increase of 0.9% this quarter.Earnings at TECO Coal were higher this quarter, the result of margin expansion of $4 per ton. Sales volumes were lower than last year, as we projected they would be in January when we reduced our volume expectations in response to market condition. The average selling price for the quarter rose to $96 per ton. This reflects met coal prices contracted when the market was stronger and higher average steam coal prices, following the expiration of a below-market contract at the end of last year. The contract to replace those tons was signed in the middle of 2011 in a more favorable pricing environment.
TECO Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts