With that, I will turn it over to Debbie.Debra L. Reed Thanks, Rick, and thanks to all of you for joining us today. You may have noticed a new name in the list of introductions Rick just made, so let me introduce Trevor Mihalik, our new Controller and Chief Accounting Officer. He has extensive industry experience in the energy business and also a strong accounting background, and he is going to make a great addition to the already strong management team that we have here at Sempra. I'd also like to mention that Bruce Folkmann, who has been our Acting Controller since October of last year, will become the Vice President and Controller of our U.S. Gas & Power business starting next week. On today's call, we'll review our second quarter financial results and then we'll give you a regulatory and operational update on our businesses. Let's begin with our financial results. Earlier this morning, we recorded second quarter earnings of $62 million or $0.25 per share, excluding a $179 million non-cash charge related to our investment in the Rockies Express Pipeline, or REX. Adjusted earnings for the second quarter of 2012 were $241 million or $0.98 per share. In the second quarter of 2011, we recorded adjusted earnings of $226 million or $0.94 per share, which excluded the $277 million remeasurement gain we booked when we completed our acquisition of South American Utilities. As many of you are aware, Kinder Morgan, a 50% owner of REX, is in the process of selling its interest in the pipeline as a result of its merger with El Paso. The REX pipeline is contracted through late 2019. The current market conditions for the pipeline are weak due to low gas prices and low basis differential. The sale by Kinder Morgan, coupled with the weak market conditions, led us to determine it was appropriate to record an impairment at this time. Joe will provide more details on this a little later in the call.
After adjusting for the REX impairment, our businesses are performing well and consistent with the plans we shared with you at our Analyst Conference. Given our performance through the first 6 months of the year, we continue to expect to meet our earnings guidance for 2012, which is $4 to $4.30 per share. The full-year guidance excludes both the charge related to the REX and a tax benefit related to a change we've made in the holding period for the life insurance contracts we own. Joe will also discuss this change in more detail and in fact, let me just hand things over to him now to take you through details of the financial results, beginning with Slide 4.Joseph A. Householder Thanks, Debbie, and thank you, all, for joining us again. At San Diego Gas & Electric, earnings for the second quarter were $95 million, up from $71 million in the year-ago quarter. This increase was primarily due to higher earnings from Sunrise Powerlink, which was put into service in June of this year. In addition, the earnings comparison was impacted by the timing of wildfire insurance premium recovery. During 2011, insurance premiums expensed in the second quarter were not recovered in revenues until the fourth quarter when the CPUC issued a decision approving the recovery. Read the rest of this transcript for free on seekingalpha.com