On today's call, we will be referring to slides, which are available on the Investor Relations section of our website. Before Joe begins, let me remind you that some of the comments made during today's conference call may be considered forward looking statements. As such, they should be taken in the context of the risks and uncertainties discussed in the Safe Harbor disclosures contained in our Securities and Exchange Commission filings and found on Slide 2 of our presentation.Also please note that today's call will include a discussion of our results excluding certain items that we feel are not representative of the company's ongoing business operations. These items and their financial impact are described in our earnings release dated today. The earnings release can be found on our website at www.pepcoholdings.com/investors. Joe? Joseph M. Rigby Thanks, Donna and good morning, ladies and gentlemen. Thank you for joining us today. Before I address earnings, I'd like to comment on the 8-K we filed with the SEC late yesterday, announcing that Tony Kamerick has informed us that he will be retiring in January 2013. After 42 years of service to our company, I'm very happy for Tony and his wife Karen, and I'm confident that the succession plan we have in place will ensure an orderly transition. When a successor CFO is named, Tony will be promoted to Executive Vice President and Chief Regulatory Officer for PHI. He will continue to report to me and lead our regulatory process through the current cycle of rate cases. I expect the successor CFO will be named over the next month or 2. So let me simply say that Tony has been an outstanding CFO and has been instrumental in shaping our business strategy. Under his leadership PHI has become a stronger company, financially. Over the years, I have relied on Tony's wise counsel and his continued leadership of the regulatory process until his retirement will be invaluable. And with that, let me turn to our financial results.
2011 was a year of significant progress on our key initiatives. While there is still more work to be done, we are pleased that our investments to improve system reliability and customer service are producing tangible results. While our earnings were impacted by our increased spending on systems maintenance and tree trimming, this spending is having a positive effect on reliability and restoration performance. Throughout the year, our Power Delivery business invested nearly $900 million in transmission and distribution infrastructure, including projects focused on improving reliability and installing advanced technology. Investment such as these are important components of our strategy to provide enhanced value to our customers and investors. As seen on Slide 3, GAAP earnings from continuing operations for 2011 were $1.15 per share compared to $0.62 per share in 2010. Excluding special items in 2010, earnings would have been $1.24. Our 2011 earnings include $0.08 per share for mark-to-market losses resulting from economic hedging activities associated with the Retail Energy Supply business of Pepco Energy Services and lower earnings of $0.02 per share associated with the tax law changes in the District of Columbia. The effects of these items was excluded from the 2011 earnings guidance range. Excluding these items, our 2011 earnings from continuing operations would have been $1.25 per share compared to the 2011 guidance range of $1.15 to $1.25 per share. The increase in adjusted earnings per share from continuing operations for 2011 as compared to 2010 was primarily the result of higher transmission and distribution revenue due to higher rates driven from increased investment. Lower interest expense also contributed to the increase in adjusted earnings. Partially offsetting the earnings increases were higher Power Delivery operation and maintenance expense and the favorable income of income tax adjustments in the 2010 period. Later on the call, Tony will address financial results and our operating segment performance in more detail. But first I'll address some topics of interest.Read the rest of this transcript for free on seekingalpha.com