Question-and-Answer Session
Operator
Thank you, sir. Ladies and gentlemen, at this time we will begin the question and answer session. (Operator instructions) One moment please for our first question. And our first question is from Ted Durban with Goldman Sachs. Please go ahead, sir.
Ted Durban – Goldman Sachs
Hey, guys. Congrats on a good quarter. Question on the O&M side up $13 million or $14 million. I’m trying to get a sense of how much of that is expected to be recurring? It seems like a lot less is on the pipeline and how much money will be more one time?
Fred Meisenheimer
O&M is one time in that we did a lot of maintenance type work on the pipeline in the first quarter. We had opportunities to do that. And so a lot of that spending we accelerated into the first quarter on the pipeline operations. And so we believe that will level back out more in line with our budget for the year.
Ted Durban – Goldman Sachs
So it’s related to the expansion or is just an ongoing maintenance that needed to catch up on?
Fred Meisenheimer
Ongoing maintenance that we needed to catch up on.
Ted Durban – Goldman Sachs
Okay. That’s fine. On the non-regulated growth CapEx coming down just from your – it looked like $25 million or $30 million. Is that mostly coming out of Fort Necessity or are there other projects that you took out of the budget?
Robert Best
That is a – it’s a combination of both, Ted, and looking for the highest and best use of our capital. So we’ve reduced what we’re going to be putting in Fort Necessity plus put some other projects potentially on hold.
Ted Durban – Goldman Sachs
Okay. Can I ask about then just about volume growth? It looks like the distribution companies and volumes were up 6%. How much of that was due to weather? And maybe can you give a little color on what you’re seeing on different segments like industrial demand? A lot of folks talk about industrial demand being off.
Kim Cocklin
Good morning, Ted. This is Kim.
Ted Durban – Goldman Sachs
Hi, Kim.
Kim Cocklin
Yes. A lot of that is related to weather. As we take – obviously experienced some weather patterns in our service territory early in the heating season, and obviously December and January. That’s simply what we’re seeing. Obviously, you’re seeing some contraction in the commercial, industrial sector right now. And that may continue as this economy continues its course.
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