SPIRE INC

Previous wording

Spire’s midstream operations consist of Spire Storage West LLC, Spire Storage Salt Plains LLC (jointly, “Spire Storage”), Spire STL Pipeline LLC (“Spire STL Pipeline”), Spire MoGas Pipeline. Spire STL Pipeline owns and operates a FERC-regulated 65-mile pipeline connecting the Rockies Express Pipeline in Scott County, Illinois, to delivery points in St. Louis County, Missouri, including Spire Missouri’s storage facility, and its operating revenue is derived primarily from Spire Missouri as its foundation shipper. Spire MoGas Pipeline (or simply “MoGas”), a 263-mile FERC-regulated natural gas pipeline and a connected 75-mile gas distribution system in Missouri, was acquired by Spire Midstream LLC, a subsidiary of Spire, on January 19, 2024. Spire Storage is engaged in the storage of natural gas in both the western and midcontinent regions of the United States. Spire Storage West, located in Wyoming, consists of two storage fields operating under one FERC market-based rate tariff, while Spire Storage Salt Plains, acquired on April 1, 2023 and located in Oklahoma, operates under intrastate jurisdiction with authorizations from FERC under Section 311 of the Natural Gas Policy Act to provide certain interstate storage, transportation, and hub services.

Current wording

Spire’s midstream operations consist of Spire Storage West LLC, Spire Storage Salt Plains LLC (jointly, “Spire Storage”), Spire STL Pipeline LLC (“Spire STL Pipeline”), and Spire MoGas Pipeline. Spire STL Pipeline owns and operates a FERC-regulated 65-mile pipeline connecting the Rockies Express Pipeline in Scott County, Illinois, to delivery points in St. Louis County, Missouri, including Spire Missouri’s storage facility, and its operating revenue is derived primarily from Spire Missouri as its foundation shipper. Spire MoGas Pipeline (or simply “MoGas”), a 263-mile FERC-regulated natural gas pipeline and a connected 75-mile gas distribution system in Missouri, was acquired by Spire Midstream LLC, a subsidiary of Spire, on January 19, 2024. Spire Storage is engaged in the storage of natural gas in both the western and midcontinent regions of the United States. Spire Storage West, located in Wyoming, consists of two storage fields operating under one FERC market-based rate tariff, while Spire Storage Salt Plains, acquired on April 1, 2023 and located in Oklahoma, operates under intrastate jurisdiction with authorizations from FERC under Section 311 of the Natural Gas Policy Act to provide certain interstate storage, transportation, and hub services.

Previous wording

The increase in interest expense reflects the increase in interest rates on both short-term and long-term debt. Weighted-average short-term interest rates were 5.8% in the current-year quarter versus 5.0% in the prior-year quarter.

Current wording

The increase in interest expense primarily reflects the increase in interest rates on both short-term and long-term debt. Weighted-average short-term interest rates were 5.6%in the current-year quarter versus 5.3% in the prior-year quarter.

Previous wording

The increase in income taxes reflects the increase in pre-tax book income and mix.

Current wording

The increase in income taxes reflects the significantly lower current-year book loss and mix.

Previous wording

For the quarter ended March 31, 2024, Gas Utility net income was $4.8 higher than the corresponding prior-year period, reflecting strong financial performance of the Southeast Utilities, which more than offset the $6.9 decrease at Spire Missouri. Net economic earnings in the current year were $4.1 higher than the prior year, which tracks the net income trend. These results are described in further detail below.

Current wording

For the quarter ended June 30, 2024, Gas Utility net income was $2.0 lower than the corresponding prior-year period. Net economic earnings in the current year was $1.3 higher than the prior year, reflecting the exclusion of the $3.3 (after-tax) charge related to the customer affordability initiative. The quarterly change in net economic earnings was driven by improved performance of the Southeast Utilities of $1.7, partially offset by a slight decrease at Spire Missouri.

Previous wording

The increase in Gas Utility operating revenues was attributable to the following factors:

Current wording

The decrease in Gas Utility operating revenues was attributable to the following factors:

Previous wording

The primary driver of the current year increase in revenue was the $38.6 incremental impact of the Spire Alabama customer charge reset, in combination with off-system sales growth at Spire Missouri, favorable RSE adjustments at Spire Alabama, and higher current year ISRS billings at Spire Missouri. These favorable impacts were partly offset by the impacts of weather in Spire Missouri’s territory. Lower weather-driven volumes in Spire Missouri reduced gas cost recoveries by $28.6 and customer usage by $8.6 in the current-year quarter.

Current wording

The primary driver of the current year decrease in revenue was the $25.7 impact of lower gas cost recoveries across all utilities, driven principally by lower usage. This reduction was only partly offset by higher current year ISRS billings at Spire Missouri, higher weather mitigation at Spire Missouri combined with the Spire Alabama customer charge reset, and favorable RSE adjustments at Spire Alabama.

Previous wording

Contribution margin increased $18.4 versus the prior-year quarter. Contribution margin benefited from the $10.3 increase attributable to the implementation of the Spire Alabama customer charge reset, the $6.4 favorable RSE adjustment at Spire Alabama, and $5.4 Spire Missouri ISRS growth, combined with the $3.4 increase at Spire EnergySouth. These positive impacts more than offset the $8.6 negative volume usage impact (net of weather mitigation) experienced by Spire Missouri in the current-year quarter.

Current wording

Contribution margin increased $11.6 versus the prior-year quarter. Contribution margin benefited from the $6.2 Spire Missouri ISRS growth, the $2.0 favorable RSE adjustment at Spire Alabama, and higher volumetric usage (including the Spire Alabama customer charge reset).

Previous wording

Taxes, other than income taxes, increased $0.3, primarily due to higher property and real estate taxes. Depreciation and amortization expenses for the quarter ended March 31, 2024 were $5.2 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense increased $2.8 to $38.3 primarily due to higher rates. The benefit of carrying cost credits decreased $1.5 quarter over quarter.

Current wording

Taxes, other than income taxes, decreased $2.8, primarily due to lower gross receipt taxes resulting from lower revenues. Depreciation and amortization expenses for the quarter ended June 30, 2024 were $5.0 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense decreased $0.7, as decreases at the Southeast Utilities more than offset the slight increase at Spire Missouri. The benefit of current year gas carrying cost credits at Spire Missouri, included in other income, decreased $3.2 versus the corresponding prior-year quarter.

Previous wording

Revenues in the current quarter decreased $14.6. Contribution margin increased $28.1 versus the prior-year quarter, reflecting the $35.9 (pre-tax) favorable mark-to-market activity. Excluding this impact, contribution margin declined $7.8, reflecting the lower current-year asset optimization opportunities outlined above. O&M expenses were relatively stable versus the prior year, with a $0.5 quarter-over-quarter increase.

Current wording

Revenues in the current quarter decreased $1.9. Contribution margin increased $1.9 versus the prior-year quarter, reflecting the $2.9 (pre-tax) unfavorable mark-to-market activity. Excluding this impact, contribution margin increased $4.8, reflecting the favorable business drivers outlined above. O&M expenses were in line with prior year levels.

Previous wording

Revenues in the current quarter increased $5.0 versus the prior-year quarter, and O&M expenses increased by $3.2 quarter-over-quarter, due primarily to timing of expenses and current-year quarter including the impacts of the Spire Storage Salt Plains and Spire MoGas acquisitions.

Current wording

Revenues in the current quarter increased $15.1 versus the prior-year quarter, and O&M expenses were flat quarter-over-quarter, due primarily to timing of expenses and current-year quarter offset by the added costs of Spire Storage Salt Plains and Spire MoGas.

Previous wording

The Company’s other activities generated a $10.7 loss in the three months ended March 31, 2024, in line with prior-year quarter results, as higher interest expense in the current year was offset by lower corporate costs.

Current wording

The Company’s other activities generated a $8.4 loss in the three months ended June 30, 2024, $1.0 larger than prior-year quarter results, as higher interest expense in the current year was not completely offset by lower corporate costs.

Previous wording

Revenues for the quarter ended March 31, 2024 were $24.5 lower than the comparable prior-year period. Lower weather-driven volumes reduced gas cost recoveries by $28.6 and customer usage by $8.6 in the current-year quarter. These negative impacts were only partly offset by an increase of $7.8 attributable to higher off-system sales and $5.4 incremental ISRS revenues in the current-year quarter.

Current wording

Revenues for the quarter ended June 30, 2024 were $5.0 lower than the comparable prior-year period. Lower weather-driven volumes reduced gas cost recoveries by $11.8, which also reduced gross receipts taxes by $2.6. These negative impacts were only partly offset by $6.2 incremental ISRS revenues, $1.7 related to increased customer usage (including weather mitigation), and $1.0 attributable to higher off-system sales in the current-year quarter.

Previous wording

Contribution margin for the three months ended March 31, 2024 decreased $0.9 from the same period in the prior year, as ISRS billings and slightly higher margins on off-system sales and miscellaneous revenues were more than offset by the $8.6 usage decline primarily attributable to the warmer weather.

Current wording

Contribution margin for the three months ended June 30, 2024 increased $8.6 from the same period in the prior year, primarily due to ISRS billings and weather-mitigated customer usage.

Previous wording

Degree days in Spire Missouri’s service areas during the three months ended March 31, 2024, were 15.2% warmer than normal, and 2.1% warmer than the same period last year. Spire Missouri’s total system volume sold and transported were 640.7 millioncentum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 657.8 million CCF for the same period in the prior year. Total off-system volume sold and transported were 21.6 million CCF for the current-year quarter, compared with 1.2 million CCF a year ago.

Current wording

Degree days in Spire Missouri’s service areas during the three months ended June 30, 2024 were 39.9% warmer than normal, and 23.5% warmer than the same period last year. Spire Missouri’s total system volume sold and transported were 209.2 millioncentum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 219.4 million CCF for the same period in the prior year. Total off-system volume sold and transported were 13.2 million CCF for the current-year quarter, compared with 10.3 million CCF a year ago.

Previous wording

O&M expenses for the current-year quarter increased $1.2 versus the prior-year quarter. The increase reflects higher employee and benefit costs in the current-year quarter. These unfavorable impacts were only partly offset by ongoing current-year efficiency initiatives that have lowered expense levels for non-payroll operations expense and reductions in outside service costs, combined with lower bad expense.

Current wording

O&M expenses for the current-year quarter increased $1.7 versus the prior-year quarter. The increase includes $3.5 in charges relating to our customer affordability initiative. Excluding these charges, run-rate O&M expenses decreased $1.8 versus the prior-year quarter. This decrease reflects lower employee and benefit costs in the current-year quarter, combined with lowered expense levels for non-payroll operations expense and reductions in outside service costs. These favorable impacts were only partly offset by higher bad debt expense.

Previous wording

Depreciation and amortization expenses increased $3.9 versus the prior-year quarter due to ongoing capital investments. Taxes, other than income taxes, decreased $1.4, primarily driven by lower pass-through gross receipts taxes.

Current wording

Depreciation and amortization expenses increased $4.0 versus the prior-year quarter due to ongoing capital investments. Taxes, other than income taxes, decreased $1.7, driven by lower pass-through gross receipts taxes that were partly offset by higher real estate and property taxes.

Previous wording

Other income declined by 0.2 versus the prior-year quarter, as favorable mark-to-market valuations on unqualified retirement trusts were more than offset by the decrease in inventory carrying cost credits of $1.5. Interest expense increased $3.1, primarily reflecting higher average short-term debt levels and higher short-term interest rates in the current year.

Current wording

Other income declined by $2.9 versus the prior-year quarter, driven by the decrease in gas carrying cost credits of $3.2. Interest expense increased $0.4, primarily reflecting higher average short-term interest rates in the current year.

Previous wording

Operating revenues for the three months ended March 31, 2024 increased $41.2 from the same period in the prior year. The increase in operating revenue was principally due to the $38.6 impact of the current year customer usage charge reset, combined with favorable RSE adjustments of $6.4. These favorable impacts were only partly offset by a $4.4 decrease in gas cost recovery.

Current wording

Operating revenues for the three months ended June 30, 2024 decreased $9.6 from the same period in the prior year. The decrease in operating revenue was principally due to a $13.9 decrease in gas cost recovery that was only partly offset by the current year customer usage charge reset of $2.7, combined with favorable RSE adjustments of $1.9.

Previous wording

Contribution margin was $15.9 higher versus the prior-year quarter, driven by the customer usage charge reset benefit of $10.3 and $6.4 favorable net rate adjustments under the RSE mechanism. This increase was slightly offset by a $0.9 decrease attributable to lower off-system sales.

Current wording

Contribution margin was $2.1 higher versus the prior-year quarter, driven primarily by $2.0 favorable net rate adjustments under the RSE mechanism.

Previous wording

As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended March 31, 2024, were 9.5% warmer than normal, but 25.0% colder than a year ago. Spire Alabama’s total system volume sold and transported were 322.7 million CCF for the three months ended March 31, 2024, compared with 295.6 million CCF for the same period in the prior year. Total off-system volume sold and transported were 7.4 million CCF for the current-year quarter, compared with 13.4 million CCF off-system volume sold and transported in last year’s second quarter.

Current wording

As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended June 30, 2024, were 6.3% colder than normal, but 4.3% warmer than a year ago. Spire Alabama’s total system volume sold and transported were 231.8 million CCF for the three months ended June 30, 2024, compared with 237.0 million CCF for the same period in the prior year. Total off-system volume sold and transported were 28.2 million CCF for the current-year quarter, compared with 29.1 million CCF off-system volume sold and transported in last year’s third quarter.

Previous wording

O&M expenses for the three months ended March 31, 2024 increased $0.9 versus the prior-year quarter as lower non-employee operating expenses and reductions of outside service costs were offset by higher benefit costs and higher bad debt expense.

Current wording

O&M expenses for the three months ended June 30, 2024 increased $0.3 versus the prior-year quarter as lower employee benefit costs and reductions of outside service costs were offset by $0.6 of expenses relating to the customer affordability initiative.

Previous wording

Depreciation and amortization expenses were up $1.2, the result of continued investment in infrastructure upgrades. Interest expense for the current-year quarter decreased $0.7 versus the prior-year quarter, primarily the result of lower short-term borrowings more than offsetting higher short-term interest rates.

Current wording

Depreciation and amortization expenses were up $0.9, the result of continued investment in infrastructure upgrades. Interest expense for the current-year quarter decreased $0.8 versus the prior-year quarter, primarily the result of lower short-term borrowings more than offsetting higher short-term interest rates.

Previous wording

For the quarter ended March 31, 2024, resulting net income increased $10.7 versus the prior-year quarter.

Current wording

For the quarter ended June 30, 2024, resulting net income increased $1.6 versus the prior-year quarter. Net economic earnings, which removes the expenses of the customer affordability initiative, increased $2.0 versus the prior-year quarter.

Previous wording

This section contains discussion and analysis of the results for the six months ended March 31, 2024 compared to the results for the six months ended March 31, 2023, in total and by registrant and segment.

Current wording

This section contains discussion and analysis of the results for the nine months ended June 30, 2024 compared to the results for the nine months ended June 30, 2023, in total and by registrant and segment.

Previous wording

Select variances for the six months ended March 31, 2024 compared to the six months ended March 31, 2023 are summarized in the following table and discussed below.

Current wording

Select variances for the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023 are summarized in the following table and discussed below.

Previous wording

The increase in interest expense reflects higher average interest rates and higher average balances on long-term debt versus the prior year. Further, weighted-average short-term interest rates were 5.8% in the current-year period versus 4.7% in the prior-year period.

Current wording

The increase in interest expense reflects higher average interest rates and higher average balances on short-term debt versus the prior year. Further, weighted-average short-term interest rates were 5.74% in the current-year period versus 4.83% in the prior-year period.

Previous wording

Other income increased $11.8. Of this increase, $8.2 was the result of a gain realized on an interest rate swap contract after management determined the anticipated issuance of certain debt was no longer probable of occurring, resulting in the discontinuation of hedge accounting. The remaining variance was primarily attributable to inventory carrying cost credits at Spire Missouri, combined with favorable mark-to-market valuations on unqualified retirement and investment trusts.

Current wording

Other income increased $7.9. Of this increase, $8.2 was the result of a gain realized on an interest rate swap contract after management determined the anticipated issuance of certain debt was no longer probable of occurring, resulting in the discontinuation of hedge accounting. This gain, combined with favorable mark-to-market valuations on unqualified retirement and investment trusts was only partly offset by lower gas carrying cost credits at Spire Missouri.

Previous wording

For the six months ended March 31, 2024, Gas Utility net income was $17.4 higher than the prior-year period, primarily reflecting stronger financial performance across the Southeast utilities, and to a lesser extent, growth at Spire Missouri. Net economic earnings in the current year was $17.0 higher than the prior year, which tracks the net income trend. These results are described in further detail below.

Current wording

For the nine months ended June 30, 2024, Gas Utility net economic earnings in the current year was $18.3 higher than the prior-year period with higher earnings across both Missouri and Alabama. Net income in the current year was $15.4 higher than the prior year, reflecting the current-year quarter’s $3.3 (after-tax) expense relating to the Company’s customer affordability initiative that is excluded from net economic earnings. These results are described in further detail below.

Previous wording

The $0.4 increase in Gas Utility operating revenues was attributable to the following factors:

Current wording

The $14.7 decrease in Gas Utility operating revenues was attributable to the following factors:

Previous wording

The current year is benefiting from a $22.9 increase from Spire Missouri reflecting the final quarterly impact of implementing the 2022 rate order, $21.8 incremental revenues resulting from the reset of the Spire Alabama per customer usage charge (net of weather adjustment), favorable Spire Alabama RSE adjustments totaling $10.4, and increases in off-system sales and ISRS of $6.9 and $5.6, respectively, at Spire Missouri. These benefits were mostly offset due to weather impacts. Warmer weather across our utility footprint in the current year negatively impacted both gas cost recoveries and customer usage, particularly for Spire Missouri. Spire Missouri realized $51.8 lower gas cost recoveries in the current year, as the current year lower volumes more than offset the higher PGA rates being charged to customers. Spire Missouri also experienced lower volumetric usage totaling $13.6 in the current-year quarter.

Current wording

Warmer weather across our utility footprint in the current year negatively impacted both gas cost recoveries and customer usage, particularly for Spire Missouri. Spire Missouri realized $63.6 lower gas cost recoveries in the current year, as the current-year lower volumes more than offset the higher PGA rates being charged to customers. Spire Missouri also experienced lower volumetric usage totaling $11.9 in the current year. These warmer weather impacts more than offset the $22.9 increase from Spire Missouri reflecting the final quarterly impact of implementing the 2022 rate order, $24.5 incremental revenues resulting from the reset of the Spire Alabama per customer usage charge (net of weather adjustment), favorable Spire Alabama RSE adjustments totaling $12.3, and increases in ISRS and off-system sales of $11.8 and $7.9, respectively, at Spire Missouri.

Previous wording

Contribution margin increased $41.2 versus the prior year. The $22.9 increase attributable to the implementation of the 2022 Missouri rate case order, $10.3 favorable RSE adjustment at Spire Alabama, $9.8 growth resulting from the reset of the Spire Alabama per customer usage charge (net of weather adjustment) and $5.6 increase in ISRS combined to more than offset the $13.6 negative volume usage impact (net of weather mitigation) experienced by Spire Missouri in the current year.

Current wording

Contribution margin increased $52.8 versus the prior year. The $22.9 increase attributable to the implementation of the 2022 Missouri rate case order, $12.3 favorable RSE adjustment at Spire Alabama, $11.8 increase in ISRS and $9.7 growth resulting from the reset of the Spire Alabama per customer usage charge (net of weather adjustment) combined to more than offset the $11.9 negative volume usage impact (net of weather mitigation) experienced by Spire Missouri in the current year.

Previous wording

O&M expenses for the six months ended March 31, 2024 were $0.9 lower than the prior year. The Gas Utility segment O&M decrease reflects lower operations expense, and reductions in outside service costs. These favorable benefits were only partly offset by higher employee-related costs.

Current wording

O&M expenses for the nine months ended June 30, 2024 were $1.8 higher than the prior year, driven by the $4.4 expenses in the third quarter of the current year relating to the Company’s customer affordability initiative. Excluding these charges, the Gas Utility segment O&M decreased $2.6, reflecting lower operations expense, lower employee-related costs and reductions in outside service costs, partially offset by increased bad debt expense.

Previous wording

Taxes, other than income taxes, increased $2.0, primarily due to higher property and real estate taxes. Depreciation and amortization expenses for the six months ended March 31, 2024 were $9.7 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense increased $9.7 to $77.3 reflecting higher average net debt levels and slightly higher short-term interest rates. Other income increased $2.3 in the current year, primarily the result of favorable mark-to-market valuations on unqualified retirement trusts.

Current wording

Taxes, other than income taxes, decreased $0.8, as lower gross receipts taxes totaling $3.1 offset increases in property and real estate taxes. Depreciation and amortization expenses for the nine months ended June 30, 2024 were $14.7 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense increased $9.0 to $112.2 reflecting higher average net debt levels and higher short-term interest rates. Other income decreased $1.1 in the current year, primarily the result of lower gas carrying credits at Spire Missouri that were only partly offset by favorable mark-to-market valuations on unqualified retirement trusts.

Previous wording

The $24.8 year-over-year decline in net economic earnings primarily reflects very favorable market conditions in the prior year that did not recur this year. Net income's inclusion of $25.3 (after-tax) favorable mark-to-market activity more than offset the decline in business conditions.

Current wording

The $21.3 year-over-year decline in net economic earnings primarily reflects very favorable market conditions in the prior year that did not recur this year. Net income’s inclusion of $23.1 (after-tax) favorable mark-to-market activity offset the decline in business conditions.

Previous wording

Revenues in the current year decreased $52.4 and contribution margin decreased $34.0 (after removing the $33.7 pre-tax favorable mark-to-market activity) versus the prior-year period, reflecting the lower current-year asset optimization opportunities outlined above. Operating expenses decreased by $1.4 year-over-year, due primarily lower employee-related costs.

Current wording

Revenues in the current year decreased $54.3 and contribution margin decreased $29.2 (after removing the $30.8 pre-tax favorable mark-to-market activity) versus the prior-year period, reflecting the lower current-year asset optimization opportunities outlined above. Operating expenses decreased by $1.3 year-over-year, due primarily lower employee-related costs.

Previous wording

Net income and net economic earnings for the Company’s Midstream segment for the six months ended March 31, 2024 versus the prior-year period decreased $3.3 and $1.8, respectively. The benefits of the Spire Storage Salt Plains and MoGas acquisitions were more than offset by the $4.0 reduction in net income and net economic earnings at Spire Storage West, which benefited from more favorable market conditions in the prior year when it was able to optimize storage operations and commitments. Net income was also impacted by $1.5 (after-tax) in acquisition transaction expenses incurred in the current year relating to the acquisition of MoGas.

Current wording

Net economic earnings and net income for the Company’s Midstream segment for the nine months ended June 30, 2024 versus the prior-year period increased $8.5 and $7.4, respectively. The increase was driven by higher storage earnings, reflecting additional capacity and contract renewals at higher rates at Spire Storage West and higher contracted rates at Salt Plains effective during the third quarter. NEE results also reflect the Spire Storage Salt Plains and MoGas acquisitions. Net income was impacted by $1.1 (after-tax) in acquisition transaction expenses incurred in the current year relating to the acquisition of MoGas.

Previous wording

Revenues in the current year increased $4.7 versus the prior-year period, due primarily to the acquisitions of Spire Storage Salt Plains and MoGas offsetting lower Spire Storage West revenues attributable primarily to the previously mentioned more favorable market conditions in the prior year. O&M expenses increased by $6.0 year-over-year, due primarily to operating expenses associated with the before-mentioned acquisitions, combined with transaction costs related to MoGas.

Current wording

Revenues in the current year increased $19.8 versus the prior-year period, due primarily to the acquisitions of Spire Storage Salt Plains and MoGas and increased Spire Storage West revenues attributable primarily to the previously mentioned new capacity and rates in the third quarter of the current year. O&M expenses increased by $5.9 year-over-year, due primarily to operating expenses associated with the before-mentioned acquisitions, combined with transaction costs related to MoGas.

Previous wording

The Company’s other activities generated a $13.4 loss in the six months ended March 31, 2024, $4.6 lower than the prior-year period. The improved results were driven by the current-year $8.2 gain realized on an interest rate swap contract after management determined the anticipated issuance of certain debt was no longer probable of occurring, resulting in the discontinuation of hedge accounting. This gain more than offset higher interest expense and slightly higher corporate costs in the current year.

Current wording

The Company’s other activities generated a $21.6 net economic loss in the nine months ended June 30, 2024, $3.8 lower than the prior-year period. The improved results were driven by the current-year $8.2 gain realized on an interest rate swap contract after management determined the anticipated issuance of certain debt was no longer probable of occurring considering changes in debt issuance strategy due to the interest rate environment, resulting in the discontinuation of hedge accounting. This gain more than offset higher interest expense and slightly lower corporate costs in the current year.

Previous wording

Revenues for the six months ended March 31, 2024 were $30.3 lower than the comparable prior-year period. A key driver was a decrease in gas recovery (PGA) totaling $51.8. Higher rates in the current year were more than offset by lower volumetric usage. This lower volume usage decreased revenues versus the prior year by $13.6. These negative impacts were only partly offset by an increase of $22.9 attributable to the impact of the 2022 rate order (new rates became effective the last week of December 2022) and higher off-system sales and ISRS of $6.9 and $5.6, respectively.

Current wording

Revenues for the nine months ended June 30, 2024 were $35.3 lower than the comparable prior-year period. A key driver was a decrease in gas recovery (PGA) totaling $63.6. Higher rates in the current year were more than offset by lower volumetric usage. This lower volume usage decreased revenues versus the prior year by $11.9. These negative impacts were only partly offset by an increase of $22.9 attributable to the impact of the 2022 rate order (new rates became effective the last week of December 2022) and higher ISRS and off-system sales of $11.8 and $7.9, respectively.

Previous wording

Contribution margin for the six months ended March 31, 2024 increased $17.0 from the same period in the prior year. The previously mentioned timing of the 2022 rate case implementation generated $22.9 incremental contribution combined with $5.6 higher ISRSA more than offset the $13.6 impact of lower volumes.

Current wording

Contribution margin for the nine months ended June 30, 2024 increased $25.6 from the same period in the prior year. The previously mentioned timing of the 2022 rate case implementation generated $22.9 incremental contribution combined with $11.8 higher ISRS more than offset the $11.9 impact of lower volumes.