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With that, I'll turn it over to Don, who will begin with Slide 3.Donald Felsinger Thanks, Steve. And again, thank you, all, for joining us. On today's call, we'll start by reviewing our first quarter financial results, and I'll then give you an operational update on our businesses. Early this morning, we reported first quarter earnings of $258 million or $1.07 per share, compared with $106 million or $0.42 per share in the same period last year. The first quarter of last year included a $96 million or $0.38 per share charge related to the settlement of energy crisis litigation. Excluding the impact of this charge in last year's first quarter, our quarterly earnings per share increased by 34%. All of our businesses are performing well, and each of our business units reported an increase in earnings in the first quarter over the year-ago period. There are two things I'd like to highlight before Mark goes into the details of the financial results. As we discussed at the March Analyst Conference, we have already exit from the Commodities Trading business, we have refocused our strategy on regulated utilities and contracted energy infrastructure. This quarter's strong results across all of our business segments demonstrates our execution on that strategy going forward. And second, a key element of our renewable business strategy is the contracting of our portfolio of projects at Sempra Generation. We recently received regulatory approval for the first 150 megawatts phase of the 700 megawatt Mesquite Solar project and signed contracts for 2 wind projects, totaling about 175 megawatts. Now I'd like to hand it over to Mark, so he can take you through some of the details of the financial results beginning with Slide 4. Mark Snell Thanks, Don. At the San Diego Gas & Electric, earnings for the first quarter of 2011 were $89 million compared with earnings of $83 million in the year-ago quarter. The increase was primarily due to $7 million of higher authorized margins, offset by $5 million of higher wildfire insurance premiums this year. And in last year's first quarter, we had a $3 million charge related to the passage of the healthcare bill. At Southern California Gas, first quarter 2011 earnings was $68 million, that's up from $65 million in the first quarter of 2010.
Last year's results included a $7 million regulatory award and a $13 million tax charge related to passage of the healthcare bill.Now let's go to Slide 5. Our Generation business recorded earnings of $44 million in the first quarter of 2011 compared with a loss of $51 million in the same quarter in 2010. The increase for the quarter is due to lower operating and maintenance costs, less scheduled plant maintenance and an $84 million charge related to a litigation settlement last year. Now please move to Slide 6. Sempra Pipelines & Storage recorded earnings of $54 million in the first quarter of 2011, up from earnings of $38 million in the same quarter of 2010. The quarter benefited from $8 million of higher earnings from pipeline assets in Mexico, which were acquired in the second quarter of 2010, and from $6 million of higher operating results from Chile and Peru. I'd also like to mention that in the next quarter, we expect to report a onetime gain related to our increased ownership stake in Chile and Peru, do a step up of our prior investment to fair value. The size of the gain has not yet been determined, and it was not included in our earnings guidance that we previously provided for this year. Read the rest of this transcript for free on seekingalpha.com