Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of [Sarasha Khan] – Incremental Capital
[Sarasha Khan] – Incremental Capital
I was trying to get a better sense as to what would, had the volumes been this year if weather was kind of normal.
Mark Clark
That’s a good question, if you look a the residential side, the volume in the revenue side was offset by about $34 million, we said $0.08 was below our distribution revenues. About $0.07 of that was attributable to the residential. In Ohio you’re seeing some reduction of 12%, PA 8%, New Jersey 7%, [net] total 10%.
Most of that Ohio reduction was industrial which is around 16% and even most of that was in steel, metal, auto and tire. Hopefully that is a lot of detail and answered your question.
Operator
Your next question comes from the line of Paul Ridzon - Key Bank Capital Markets
Paul Ridzon - Key Bank Capital Markets
About your guidance, it seems like you’ve kind of found $0.23 in your portfolio optimization, what were the offsets that made you drive down the top end of guidance.
Mark Clark
I think as Anthony alluded to before the unseasonably warm weather in July particularly and then throughout the third quarter, the industrial sales I just alluded to being down 16%, the weather effecting the residential side, just the general economy.
Nothing specific other then we can’t make that up in the fourth quarter, the weather and the industrial sales so we just felt more comfortable reducing the guidance down at the top end.
Paul Ridzon - Key Bank Capital Markets
And then you mentioned $0.11 around deferred comp or that could come back or, I was just unclear what that discussion was.
Mark Clark
When we provided the original O&M guidance it did not include any incentive comp, salary reduction or 401-K bonus dollars in it. And what we said to our employees was if you would like to get your salary back, 401-K bonus match and any form of incentive comp, you’ll have to exceed our O&M guidance.
So through September we’ve expensed $63 million for incentives meaning that our employees earned that amount by reducing O&M expenses some $305 million for the first nine months of the year and that nets us down to the $242.
Now in the fourth quarter if we don’t stay on path for achieving our O&M reductions we will take back the incentive comp and salary and 401-K bonus match. So it is possible that they achieve it and continue to earn. It is also possible that they slow down and we will reverse some of these entries.
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