Third Quarter 2012 Compared with Third Quarter 2011
Gross margin increased primarily due to a $9.6 million increase related to rate adjustments that include a return on significant capital investments at Colorado Electric, partially offset by a $0.7 million decrease in wholesale and transmission margins as a result of decreased pricing, a decrease of $0.3 million in off-system sales and a decrease of $0.6 million from expiration of a reserve capacity agreement with PacifiCorp.
Operations and maintenance decreased primarily due to a $2.1 million reduction of major maintenance accruals related to the power plants announced for retirement and cost containment efforts, partially offset by costs associated with operating the new generating facility in Pueblo, Colo. including increased corporate allocations.
Depreciation and amortization increased primarily due to a higher asset base associated with the new 180 megawatt generating facility constructed in Pueblo, Colo. and the capital lease assets associated with the 200 megawatt generating facility providing capacity and energy from Colorado IPP.Interest expense, net increased primarily due to interest associated with the financing of the Pueblo generating facility completed in December 2011. Interest costs were capitalized during construction in the prior year. Gas Utilities
|Three Months Ended||Nine Months Ended|
|Sept. 30,||Variance||Sept. 30,||Variance|
|2012||2011||2012 vs. 2011||2012||2011||2012 vs. 2011|
|Operations and maintenance||28.3||28.3||—||88.1||91.1||(3.0||)|
|Depreciation and amortization||6.3||6.1||0.2||18.7||18.0||0.7|
|Interest expense, net||(5.4||)||(6.3||)||0.9||(17.7||)||(19.6||)||1.9|
|Other expense (income), net||—||—||—||0.1||0.2||(0.1||)|
|Income tax (expense)||0.8||1.8||(1.0||)||(8.9||)||(10.5||)||1.6|
|Income (loss) from continuing operations||$||—||$||0.6||$||(0.6||)||$||16.4||$||24.3||$||(7.9||)|
|Three Months Ended Sept. 30,||Nine Months Ended Sept. 30,|
|Total gas sales - Dth||5,448,719||5,753,975||31,419,468||39,958,801|
|Total transport volumes - Dth||14,584,979||14,385,819||46,009,382||44,510,873|