Excluding this item, Operating Results in the Pipeline and Storage segment, increased $4.8 million or $0.06 per share. The increase in earnings is mainly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, which were completed and placed in service in the current fiscal year’s first quarter. The increase in base tariff rates, lower depreciation expense and lower operating expenses also increased Operating Results. Operating Results were reduced by lower efficiency gas revenues as a result of adopting a fuel tracker for retained gas volumes, which eliminates revenue recognition for efficiency gas.
The Pipeline and Storage segment’s earnings of $60.5 million, or $0.72 per share, for the fiscal year ended September 30, 2012, increased $29.0 million, or $0.34 per share, when compared with the same period in the prior fiscal year. Excluding the $12.8 million adjustment of the regulatory liability associated with Supply Corporation’s postretirement benefit plan discussed above, Operating Results increased $16.2 million or $0.19 per share. The increase was mostly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, higher base tariff rates, and lower operating expenses noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and implementation of the fuel tracker noted above.
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation, which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.The Utility segment’s earnings of $5.9 million, or $0.07 per share, for the quarter ended September 30, 2012, increased $5.0 million, or $0.06 per share, when compared with the same period in the prior fiscal year. The increase was due to a regulatory true-up adjustment in the prior year’s fourth quarter that did not recur in the current year’s fourth quarter and lower income taxes.
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