Before we begin, I will advise everyone that this call is being recorded and will be available for replay through November 1, 2011. I need to direct you to Slides 3 of our presentation and to point out that this presentation contains forward-looking statements within the definition of the United States Securities and Exchange Commission’s Safe Harbor rules, including projected results for Integrys Energy Group and its subsidiaries.Forward-looking statements contain factors that are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statement. Except as required by federal securities laws, Integrys Energy Group and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statements contained in this presentation, whether the result of new information, future events or otherwise. This slide is condensed commentary on forward-looking statements and all are encouraged to read and understand the more specific language that is contained in our filings with the Securities and Exchange Commission including quarterly report on Form 10-Q we filed this morning, the forward-looking statement section of yesterday news release and slide 49 in the appendix. Slide 4 indicates that today’s presentation includes non-GAAP financial information related to diluted earnings per share adjusted and adjusted earnings or loss. We believe that these are useful financial measures for providing investors with additional insight into our operating performance because they eliminate the effects of certain items that are not comparable from one period to the next. Please review the text of this slide for information regarding these non-GAAP financial measures. I will now turn this call over to Charlie Schrock. Charlie? Charles Schrock Thanks, Steve. Good morning everyone and thanks for joining us today. I will begin by providing a high-level overview of our 2011 second quarter financial and operating results. And then Joe O’Leary will then discuss our financial results for the quarter in more detail, and in addition he will provide us summary of our investment and financing plans for 2011. And we will leave plenty of time for your questions at the end of course.
So turning to Slide 5, our second quarter 2011 consolidated diluted earnings per share adjusted were lower than for the same periods a year ago. Due to the seasonal nature of our energy businesses the second quarter is traditionally the weakest quarter during our financial reporting year, because of the temperate whether typical for the second quarter and lower natural gas and electric sales less favorable and offsetting factors that affect our business tend to have a greater impact in the second quarter then they would in any other quarter. So I will summarize the drivers that caused our earnings to decline this year versus last year.On the plus side all of our natural gas service territories experienced colder weather this quarter and usage per customer excluding the impact of whether was up, the decoupling mechanism we have in place don’t cover all jurisdictions are customer classes so some of this increased usage was reflected in our quarterly results. In addition, there was an overall increase in margins in the retail markets that Integrys Energy services continues to focus on. Offsetting these pluses were consolidated operating and maintenance expense increases, this – in public services maintenance expense was higher due to the timing of schedule plant outages, the cost for our outages are included in our revenue requirements but these costs are collected evenly over 12 months, while the actual expenses occur with the scheduled outages. Natural gas distribution expenses were up Peoples Gas because certain cost related to the accelerated main replacement program are not included in the writer. And finally there was decrease in wholesale margins for Integrys Energy services due to the sale of the whole sale business in prior periods. The key takeaway from today’s call is that we have narrowed our guidance for 2011 diluted earnings per share adjusted to a range of $3.30 and $3.50 and we are seeing some shifts among our reporting segments, we reduced our core earnings expectation for Integrys Energy services, although we still expect its core 2011 earnings to be more than twice what it contributed to consolidated earnings in 2010. And we have increased the earnings expectation for our natural gas utility segment. Joe will summarize the details of this in his formal remarks. Read the rest of this transcript for free on seekingalpha.com