- Margin growth due to normal weather, gross customer additions of slightly greater than 1% in the Company's North Carolina, South Carolina and Tennessee markets, the full-year impact of the Wayne County power generation delivery project that went into service on June 1, 2012 and the Tennessee general rate case that went into effect on March 1, 2012, and the completion and placement into service of the Sutton power generation delivery project as scheduled for June 1, 2013;
- Margin reduction in secondary marketing due to lower price and basis volatility in the wholesale natural gas markets as well as a $1.1 million annual margin decrease pursuant to a settlement approved in the Company's 2012 South Carolina Rate Stabilization proceeding effective November 1, 2012;
- Higher O&M expense of about 5% primarily driven by higher pension costs due to lower discount rates, higher payroll costs, and higher utility operations expense related to pipeline integrity, safety and compliance programs;
- Higher depreciation expense reflecting additional utility plant in service;
- Allowance for Funds Used During Construction (AFUDC) of about $28 million resulting from the amount and timing of capital expenditures;
- Modest improvement from equity method investments mostly due to normal weather in the markets served by SouthStar Energy;
- Capital expenditures in the range of $525 - $575 million, including $75 - $85 million for the completion of the Sutton power generation delivery project, and higher utility capital expenditures related to pipeline integrity, safety and compliance programs, and system and technology infrastructure;
- Higher interest expense reflecting the full-year impact of the $300 million long-term debt issuance in fiscal year 2012, as well as a new $250 million issuance of long-term debt in fiscal year 2013; and
- A new equity issuance of approximately 4 million shares during fiscal year 2013.
Piedmont Natural Gas Initiates Fiscal Year 2013 Earnings Guidance
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