TE Teco Energy, Inc. (delisted)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 30, 2015

 

 

TECO ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Florida		1-8180		59-2052286
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
702 North Franklin Street, Tampa Florida				33602
(Address of principal executive offices)				(Zip code)

Registrant’s telephone number, including area code: (813) 228-1111

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Section 2 – Financial Information

Item 2.02:  Results of Operations and Financial Condition

See the Press Release dated July 30, 2015 furnished as Exhibit 99.1 and incorporated herein by reference, reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2015.

Section 9 – Financial Statements and Exhibit

Item 9.01:  Financial Statements and Exhibit

 

(d)

Exhibit

99.1		Press Release dated July 30, 2015 reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2015.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 30, 2015		TECO ENERGY, INC.
		(Registrant)
		s S. W. Callahan
		S. W. CALLAHAN
		Senior Vice President-Finance & Accounting and
		Chief Financial Officer

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EXHIBIT INDEX

 

Exhibit No.		Description of Exhibit
99.1		Press Release dated July 30, 2015 reporting on TECO Energy, Inc.’s financial results for the three and six months ended June 30, 2015.

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

TECO ENERGY REPORTS SECOND-QUARTER RESULTS FROM CONTINUING OPERATIONS

Company maintains 2015 earnings-per-share guidance range of $1.08 to $1.11

TAMPA, Fla. (July 30, 2015) — TECO Energy, Inc. (NYSE:TE) today reported second quarter results from continuing operations. Due to recent developments in negotiations regarding the sale of TECO Coal the company is deferring reporting results from discontinued operations at this time, and expects to report complete second-quarter GAAP results, including unaudited financial statements on or before Aug. 7, 2015.

Second-quarter non-GAAP results from continuing operations, which exclude $0.4 million of costs associated with the integration of New Mexico Gas Co. (NMGC), were $61.9 million, or $0.26 on a per-share basis, compared with $60.3 million, or $0.28 on a per share basis in 2014. GAAP results from continuing operations were $61.5 million, or $0.26 per share, compared to $57.6 million, or $0.27 per share in 2014.

Year-to-date non-GAAP results from continuing operations, which exclude $1.0 million of costs associated with the integration of NMGC, were $126.3 million, or $0.54 on a per-share basis, compared with $110.8 million, or $0.51 on a per-share basis in 2014. Year-to-date GAAP results from continuing operations were $125.3 million, or $0.53 per share, compared to $106.0 million, or $0.49 per share.

TECO Energy President and Chief Executive Officer John Ramil said, “Our Florida operations delivered strong financial performance this quarter and experienced customer growth of 1.8% and 2.2% at Tampa Electric and Peoples Gas, respectively - well above the national average. New Mexico Gas realized improving customer growth and the positive impact of synergies from the acquisition, and was able to deliver near break-even results in a quarter that typically has produced moderate seasonal losses. The strong performance this quarter, combined with our good first quarter results allowed us to deliver 6% year-over-year growth in earnings from continuing operations.”

Non-GAAP Results

Non-GAAP results from continuing operations in the second quarter and year-to-date periods of 2015 and 2014 exclude costs associated with the integration and acquisition of NMGC. Non-GAAP results from continuing operations in the 12-months ended 2015 period exclude deferred tax balance adjustments.

The table below compares the TECO Energy net income from continuing operations with the non-GAAP measures used in this release. Non-GAAP results exclude charges and gains contained in the Results Reconciliation table later in this release. See the Non-GAAP Presentation section and Results Reconciliation table later in this release for reconciliation to results from continuing operations and a discussion regarding this presentation of non-GAAP results and management’s use of this information.

 

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All amounts included in the non-GAAP and operating company discussions below are after tax, unless otherwise noted.

 

		Results Comparisons
		3 months ended June 30								6 months ended June 30								12 months ended June 30
(millions)		2015				2014				2015				2014				2015				2014
Net income from continuing operations		$	61.5			$	57.6			$	125.3			$	106.0			$	225.7			$	205.7
Exclude charges			0.4				2.7				1.0				4.8				19.5				9.2
Non-GAAP Results from continuing operations		$	61.9			$	60.3			$	126.3			$	110.8			$	245.2			$	214.9

Segment Reporting

The table below includes TECO Energy segment information on a GAAP basis, which includes all charges and gains for the periods shown.

 

Segment Information		3 months ended June 30								6 months ended June 30								12 months ended June 30
(millions)
		2015				2014				2015				2014				2015				2014
Net Income from continuing operations
Tampa Electric		$	67.7			$	62.2			$	115.9			$	107.4			$	233.1			$	215.9
Peoples Gas			7.6				7.5				22.2				22.1				35.8				35.1
NMGC (1)			(0.1	)			—				13.8				—				24.3				—
Other – net			(13.7	)			(12.1	)			(26.6	)			(23.5	)			(67.5	)			(45.3	)
Net income from continuing operations		$	61.5			$	57.6			$	125.3			$	106.0			$	225.7			$	205.7

 

(1)	The 12-months ended 2015 period reflect results after the Sept. 2, 2014 closing of the acquisition.

Tampa Electric

Tampa Electric’s net income for the second quarter of 2015 was $67.7 million, compared with $62.2 million for the same period in 2014. Results for the quarter reflected a 1.8% higher average number of customers and higher energy sales primarily due to hotter spring weather. Results reflected higher operations and maintenance and depreciation expenses. Second-quarter net income in 2015 included $3.6 million of Allowance for Funds Used During Construction (AFUDC) equity, which represents allowed equity cost capitalized to construction costs, compared with $2.1 million in the 2014 quarter.

Total degree days in Tampa Electric’s service area in the second quarter of 2015 were 15% above normal, and 22% above the 2014 period, driven by very warm weather in April, which is traditionally a shoulder month for energy sales. Total net energy for load, which is a calendar measurement of retail energy sales rather than a billing-cycle measurement, increased 6.6% in the second quarter of 2015 compared with the same period in 2014. In the 2015 period, pretax base revenues were almost $17 million higher than in 2014, driven by weather, customer growth and almost $2 million of higher pretax base revenue from the $7.5 million of higher base rates effective Nov. 1, 2014 as a result of the 2013 rate case settlement. (The quarterly energy sales shown on the statistical summary that accompanies this earnings release reflect the energy sales based on the timing of billing cycles, which can vary period to period.) Sales to residential customers

 

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increased primarily from weather and customer growth. Sales to commercial and non-phosphate industrial customers increased due to hotter weather and the strength of the Tampa area economy. Sales to lower-margin industrial-phosphate customers decreased as self-generation by those customers increased.

Operations and maintenance expense, excluding all Florida Public Service Commission (FPSC)-approved cost-recovery clauses, was $5.0 million higher than in the 2014 quarter, reflecting $2.2 million of higher cost to operate and maintain the generating system and $1.6 million of higher employee-related costs, including short-term incentive accruals for all employees. Depreciation and amortization expense increased $1.4 million in 2015, as a result of normal additions to facilities to reliably serve customers.

Year-to-date net income was $115.9 million, compared with $107.4 million in the 2014 period, driven by 1.7% higher average number of customers, higher energy sales from customer growth, more favorable weather and a stronger economy, partially offset by higher operations and maintenance expenses and depreciation expense. Year-to-date net income in 2015 included $7.4 million of AFUDC equity, compared with $4.4 million in the 2014 period.

Year-to-date total degree days in Tampa Electric’s service area were 12% above normal, and 18% above the prior year-to-date period. Pretax base revenue was almost $20 million higher than in 2014, including approximately $3 million of higher pretax base revenue as a result of the Nov.1, 2014 base rate increase. In the 2015 year-to-date period, total net energy for load was 4.2% higher than the same period in 2014. Higher energy sales were driven by the same factors as the quarterly sales, and winter weather that was colder than in 2014.

Operations and maintenance expenses, excluding all FPSC-approved cost-recovery clauses, increased $4.9 million in the 2015 year-to-date period reflecting the same factors as in the second quarter. Compared to the 2014 year-to-date period, depreciation and amortization expense increased $1.9 million, reflecting additions to facilities to serve customers. Interest expense increased $1.1 million due to higher long-term debt balances.

Peoples Gas

Peoples Gas reported net income of $7.6 million for the second quarter, essentially unchanged from the 2014 quarter. Average customer growth was 2.2% in the quarter, and therm sales to residential customers decreased as a result of much warmer than normal spring weather. Second-quarter results in 2015 reflected slightly lower non-fuel operations and maintenance expense driven by the timing of certain activities, partially offset by higher employee-related costs including short-term incentive accruals for all employees. Depreciation and amortization increased slightly due to normal additions to facilities to serve customers. Sales to power-generation customers and off-system sales increased due to coal-to-gas switching by customers and new gas-fired generation in the state.

Peoples Gas reported net income of $22.2 million for the year-to-date period, essentially unchanged from the same period in 2014. Results reflect a 2.1% higher average number of customers, and lower therm sales to residential customers due to warmer than normal spring weather. Commercial therm sales increased due to strong Florida economic conditions. Sales to power generation customers and off-system sales increased due to the same reasons as in the second quarter. Non-fuel operations and maintenance expense increased $0.5 million compared to the 2014 period, when operations and maintenance expense reflected a first quarter recovery of $1.6 million of costs incurred in connection with a 2010 outage incident.

 

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NMGC

NMGC reported a second quarter loss of $0.1 million, which was less than historical second quarter loss patterns, reflecting the benefit of 0.7% customer growth and lower operating and maintenance expenses from acquisition synergies.

NMGC reported year-to-date 2015 net income of $13.8 million. Results reflect customer growth of 0.6%, much milder than normal winter weather in the first quarter, and degree days 5.4% below normal and 0.8% below 2014. Results include $0.7 million of rate credits to customers under the acquisition approval agreement with the New Mexico Public Regulation Commission.

Other - net

The second quarter 2015 non-GAAP cost from continuing operations for Other – net of $13.3 million excluded $0.4 million of costs associated with the integration of NMGC, compared with the non-GAAP cost of $9.4 million in 2014, which excluded $2.7 million of NMGC acquisition-related costs. Results in 2015 reflect $1.1 million of interest expense at NMGI, and a $2.6 million tax expense related to long-term incentive compensation shares that vested below target levels. Results also reflect $1.0 million of interest expense previously allocated to TECO Coal, which was more than offset by lower interest expense as a result of refinancing debt maturities in May. The cost from continuing operations for Other – net in the second quarter of 2015 was $13.7 million, compared with a cost of $12.1 million in the same period in 2014.

The 2015 year-to-date non-GAAP cost from continuing operations for Other – net was $25.6 million, which excluded $1.0 million of NMGC integration-related costs, compared with $18.8 million in 2014, which excluded $4.7 million of NMGC acquisition-related costs. Cost drivers in the 2015 year-to-date period included $2.2 million of interest at NMGI, $1.0 million of interest previously allocated to TECO Coal that was not offset by lower interest expense, and the second quarter tax expense related to long-term incentive shares discussed above. The 2015 year-to-date Other – net cost from continuing operations was $26.6 million, compared with $23.5 million in the 2014 period.

Maintaining 2015 Guidance from Continuing Operations

TECO Energy expects to deliver consolidated earnings from continuing operations in a range between $1.08 and $1.11 in 2015, excluding any non-GAAP charges or gains. TECO Energy expects earnings in 2015 to be driven by the factors discussed in previous filings with the SEC.

Non-GAAP Presentation

Management believes it is helpful to present a non-GAAP measure of performance that reflects the ongoing operations of TECO Energy’s businesses and that allows investors to better understand and evaluate the business as it is expected to operate in future periods.

 

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Management and the board of directors use non-GAAP measures as a tool for measuring the company’s performance, for making decisions that are dependent upon the profitability of the company’s various operating units, and for determining levels of incentive compensation.

The non-GAAP measures of financial performance used by the company are not measures of performance under accounting principles generally accepted in the United States and should not be considered an alternative to GAAP measures as an indicator of the company’s financial performance or liquidity. TECO Energy’s non-GAAP presentation of results from continuing operations may not be comparable to similarly titled measures used by other companies.

The Results Reconciliation table below presents non-GAAP financial results after eliminating the effects of identified charges and gains. This provides investors additional information to assess the company’s results and future earnings potential.

 

Results Reconciliation (millions)		3 months ended June 30								6 months ended June 30								12 months ended June 30
		2015				2014				2015				2014				2015				2014
Net income from continuing operations		$	61.5			$	57.6			$	125.3			$	106.0			$	225.7			$	205.7
Add consolidated deferred tax balance adjustments (net)			—				—				—				—				6.7				—
Add costs associated with the acquisition and integration of NMGC			0.4				2.7				1.0				4.8				12.8				9.2
Non-GAAP results (1)		$	61.9			$	60.3			$	126.3			$	110.8			$	245.2			$	214.9

(1)	A non-GAAP financial measure is a numerical measure that includes or excludes amounts, or is subject to adjustments that have the effect of including or excluding amounts, from the most directly comparable GAAP measure.

Webcast

As previously announced, TECO Energy will host a webcast with the investment community to discuss its quarterly results and outlook for the remainder of 2015 at 9:00 a.m. Eastern time today. The webcast will be accessible through a link on TECO Energy’s website: www.tecoenergy.com. The webcast and accompanying slides will be available for replay for 30 days through the website, beginning approximately two hours after the conclusion of the live event.

TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utilities in Florida and New Mexico. Tampa Electric serves more than 700,000 customers in West Central Florida; Peoples Gas System serves more than 350,000 customers across Florida; and New Mexico Gas Co. serves more than 510,000 customers across New Mexico. Other TECO Energy subsidiaries include TECO Coal, which owns and operates coal-production facilities in Kentucky, Tennessee and Virginia.

 

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Note: This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Actual results may differ materially from those forecasted. The forecasted results are based on the company’s current expectations and assumptions, and the company does not undertake to update that information or any other information contained in this press release, except as may be required by law. Factors that could impact actual results include: regulatory actions by federal, state or local authorities; the ability to successfully implement the integration plans for NMGC and generate the financial results to make the acquisition accretive; unexpected capital needs or unanticipated reductions in cash flow that affect liquidity; the ability to access the capital and credit markets when required; general economic conditions affecting customer growth and energy sales at the utility companies; economic conditions affecting the Florida and New Mexico economies; weather variations and customer energy usage patterns affecting sales and operating costs at the utilities and the effect of weather conditions on energy consumption; the effect of extreme weather conditions or hurricanes; general operating conditions; input commodity prices affecting cost at all of the operating companies; natural gas demand at the utilities; and the ability of TECO Energy’s subsidiaries to operate equipment without undue accidents, breakdowns or failures; and the ability of TECO Energy to successfully close the sale of TECO Coal on the anticipated terms, or otherwise exit the coal business. Additional information is contained under “Risk Factors” in TECO Energy, Inc.‘s Annual Report on Form 10-K for the period ended Dec. 31, 2014.

 

Contact:

News Media: Sylvia Vega – (813) 228-4381

Investor Relations: Mark Kane – (813) 228-1772

Internet: http://www.tecoenergy.com

 

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TAMPA ELECTRIC COMPANY

ELECTRIC OPERATING STATISTICS (Unaudited)

 

		Operating Revenues*												Sales — Kilowatt-hours*
Three Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
Residential		$	267,416			$	243,437				9.9				2,330,622				2,089,150				11.6
Commercial			154,867				150,180				3.1				1,609,933				1,529,248				5.3
Industrial — Phosphate			13,829				16,533				(16.4	)			173,218				203,513				(14.9	)
Industrial — Other			27,926				26,636				4.8				319,483				297,404				7.4
Other sales of electricity			44,902				45,598				(1.5	)			456,012				459,098				(0.7	)
			508,940				482,384				5.5				4,889,268				4,578,413				6.8
Deferred and other revenues			9,274				15,213				(39.0	)			—				—				—
Provision for Revenue Stipulation			—				—				—				—				—				—
Sales for resale			987				1,166				(15.4	)			31,176				26,282				18.6
Other operating revenue			13,296				14,018				(5.2	)			—				—				—
SO2 Allowance Sales			—				1				(100.0	)			—				—				—
NOx Allowance Sales			—				—				—				—				—				—
		$	532,497			$	512,782				3.8				4,920,444				4,604,695				6.9
Average customers			717,925				705,312				1.8				—				—				—
Retail Net Energy For Load															5,401,160				5,068,794				6.6
Total Degree Days															1,404				1,149				22.2
		Operating Revenues*												Sales — Kilowatt-hours*
Six Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
Residential		$	480,816			$	456,979				5.2				4,170,027				3,912,055				6.6
Commercial			287,855				285,029				1.0				2,960,051				2,880,126				2.8
Industrial — Phosphate			27,250				33,263				(18.1	)			340,944				411,785				(17.2	)
Industrial — Other			52,687				50,950				3.4				598,899				565,315				5.9
Other sales of electricity			85,430				88,105				(3.0	)			856,077				880,899				(2.8	)
			934,038				914,326				2.2				8,925,998				8,650,180				3.2
Deferred and other revenues			16,742				13,243				26.4				—				—				—
Provision for Revenue Stipulation			—				—				—				—				—				—
Sales for resale			2,871				8,136				(64.7	)			84,684				132,706				(36.2	)
Other operating revenue			29,400				30,237				(2.8	)			—				—				—
SO2 Allowance Sales			—				1				(100.0	)			—				—				—
NOx Allowance Sales			—				—				—				—				—				—
		$	983,051			$	965,943				1.8				9,010,682				8,782,886				2.6
Average customers			715,977				703,816				1.7				—				—				—
Retail Net Energy For Load															9,644,864				9,254,002				4.2
Total Degree Days															2,034				1,719				18.3
		Operating Revenues*												Sales — Kilowatt-hours*
Twelve Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
Residential		$	1,031,407			$	977,986				5.5				8,913,822				8,594,476				3.7
Commercial			604,919				592,074				2.2				6,222,131				6,115,560				1.7
Industrial — Phosphate			53,898				68,460				(21.3	)			666,736				850,045				(21.6	)
Industrial — Other			106,317				102,500				3.7				1,196,794				1,146,375				4.4
Other sales of electricity			179,224				179,760				(0.3	)			1,802,074				1,831,676				(1.6	)
			1,975,765				1,920,780				2.9				18,801,557				18,538,132				1.4
Deferred and other revenues			(4,004	)			2,180				(283.7	)			—				—				—
Provision for Revenue Stipulation			—				—				—				—				—				—
Sales for resale			7,691				11,744				(34.5	)			211,150				225,652				(6.4	)
Other operating revenue			58,655				60,829				(3.6	)			—				—				—
SO2 Allowance Sales			—				—				—				—				—				—
NOx Allowance Sales			—				—				—				—				—				—
		$	2,038,107			$	1,995,533				2.1				19,012,707				18,763,784				1.3
Average customers			712,241				700,650				1.7				—				—				—
Retail Net Energy For Load															19,705,602				19,314,895				2.0
Total Degree Days															4,353				4,126				5.5

 

*	in thousands

 

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PEOPLES GAS SYSTEM

GAS OPERATING STATISTICS (Unaudited)

 

		Operating Revenues*												Therms*
Three Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
By Customer Segment:
Residential		$	28,081			$	30,667				(8.4	)			12,574				15,292				(17.8	)
Commercial			32,507				33,393				(2.7	)			109,936				110,931				(0.9	)
Industrial			3,199				3,283				(2.6	)			70,194				64,819				8.3
Off System Sales			14,376				9,379				53.3				46,365				18,522				150.3
Power generation			1,951				1,666				17.1				190,763				148,694				28.3
Other revenues			11,126				10,569				5.3				—				—				—
		$	91,240			$	88,957				2.6				429,832				358,258				20.0
By Sales Type:
System supply		$	51,606			$	50,017				3.2				65,710				40,651				61.6
Transportation			28,508				28,371				0.5				364,122				317,607				14.6
Other revenues			11,126				10,569				5.3				—				—				—
		$	91,240			$	88,957				2.6				429,832				358,258				20.0
Average customers			361,704				353,876				2.2				—				—				—
		Operating Revenues*												Therms*
Six Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
By Customer Segment:
Residential		$	77,339			$	80,411				(3.8	)			46,935				48,561				(3.3	)
Commercial			74,092				74,257				(0.2	)			248,108				241,883				2.6
Industrial			6,442				6,918				(6.9	)			146,317				136,803				7.0
Off System Sales			22,179				17,829				24.4				69,786				33,899				105.9
Power generation			3,887				3,568				8.9				375,372				304,345				23.3
Other revenues			27,251				26,555				2.6				—				—				—
		$	211,190			$	209,538				0.8				886,518				765,491				15.8
By Sales Type:
System supply		$	121,041			$	121,666				(0.5	)			131,994				98,097				34.6
Transportation			62,898				61,317				2.6				754,524				667,394				13.1
Other revenues			27,251				26,555				2.6				—				—				—
		$	211,190			$	209,538				0.8				886,518				765,491				15.8
Average customers			360,374				352,894				2.1				—				—				—
		Operating Revenues*												Therms*
Twelve Months Ended Jun. 30,		2015				2014				Percent Change				2015				2014				Percent Change
By Customer Segment:
Residential		$	141,045			$	136,658				3.2				79,149				77,107				2.6
Commercial			138,910				135,492				2.5				466,734				447,923				4.2
Industrial			12,626				13,715				(7.9	)			283,797				269,093				5.5
Off System Sales			43,708				35,791				22.1				119,914				79,840				50.2
Power generation			7,113				7,858				(9.5	)			714,539				663,354				7.7
Other revenues			49,167				45,554				7.9				—				—				—
		$	392,569			$	375,068				4.7				1,664,133				1,537,317				8.2
By Sales Type:
System supply		$	225,098			$	214,043				5.2				228,121				187,174				21.9
Transportation			118,303				115,471				2.5				1,436,012				1,350,143				6.4
Other revenues			49,168				45,554				7.9				—				—				—
		$	392,569			$	375,068				4.7				1,664,133				1,537,317				8.2
Average customers			357,642				350,264				2.1				—				—				—

 

*	in thousands

 

8

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NEW MEXICO GAS COMPANY

GAS OPERATING STATISTICS (Unaudited)

 

		Operating Revenues*												Therms*
Three Months Ended Jun. 30,		2015				2014 (1)				Percent Change				2015				2014 (1)				Percent Change
By Customer Segment:
Residential		$	38,235			$	44,911				(14.9	)			38,865				36,973				5.1
Commercial			10,319				14,474				(28.7	)			16,763				17,579				(4.6	)
Industrial			112				249				(55.0	)			246				364				(32.4	)
Off System Sales			—				—				—				—				—				—
On System Transportation			3,673				3,900				(5.8	)			73,376				75,696				(3.1	)
Off System Transportation			232				209				11.0				12,296				11,060				11.2
Other revenues			1,481				1,672				(11.4	)			—				—				—
		$	54,052			$	65,415				(17.4	)			141,546				141,672				(0.1	)
By Sales Type:
System supply		$	48,666			$	59,634				(18.4	)			55,874				54,916				1.7
Transportation			3,905				4,109				(5.0	)			85,672				86,756				(1.2	)
Other revenues			1,481				1,672				(11.4	)			—				—				—
		$	54,052			$	65,415				(17.4	)			141,546				141,672				(0.1	)
Average customers			515,761				512,304				0.7				—				—				—
Total Degree Days															472				468				0.9
		Operating Revenues*												Therms*
Six Months Ended Jun. 30,		2015				2014 (1)				Percent Change				2015				2014 (1)				Percent Change
By Customer Segment:
Residential		$	125,693				157,129				(20.0	)			160,105				159,560				0.3
Commercial			33,526				47,428				(29.3	)			57,820				61,568				(6.1	)
Industrial			330				669				(50.7	)			671				1,037				(35.3	)
Off System Sales			308				2,175				(85.9	)			1,200				4,251				(71.8	)
On System Transportation			9,764				10,178				(4.1	)			158,110				173,462				(8.9	)
Off System Transportation			437				425				3.0				22,603				22,097				2.3
Other revenues			2,968				3,177				(6.6	)			—				—				—
		$	173,026			$	221,181				(21.8	)			400,509				421,975				(5.1	)
By Sales Type:
System supply		$	159,857			$	207,401				(22.9	)			219,796				226,416				(2.9	)
Transportation			10,201				10,603				(3.8	)			180,713				195,559				(7.6	)
Other revenues			2,968				3,177				(6.6	)			—				—				—
		$	173,026			$	221,181				(21.8	)			400,509				421,975				(5.1	)
Average customers			516,273				513,096				0.6				—				—				—
Total Degree Days															2,393				2,411				(0.8	)
		Operating Revenues*												Therms*
Twelve Months Ended Jun. 30,		2015 (1)				2014 (1)				Percent Change				2015 (1)				2014 (1)				Percent Change
By Customer Segment:
Residential		$	249,614			$	281,674				(11.4	)			284,974				296,917				(4.0	)
Commercial			69,153				81,856				(15.5	)			105,164				112,773				(6.7	)
Industrial			1,527				1,742				(12.3	)			2,601				2,932				(11.3	)
Off System Sales			308				2,175				(85.8	)			1,200				4,251				(71.8	)
On System Transportation			18,888				19,738				(4.3	)			314,374				337,521				(6.9	)
Off System Transportation			907				840				8.0				47,462				44,409				6.9
Other revenues			6,288				6,662				(5.6	)			—				—				—
		$	346,685			$	394,687				(12.2	)			755,775				798,803				(5.4	)
By Sales Type:
System supply		$	320,602			$	367,447				(12.7	)			393,939				416,873				(5.5	)
Transportation			19,795				20,578				(3.8	)			361,836				381,930				(5.3	)
Other revenues			6,288				6,662				(5.6	)			—				—				—
		$	346,685			$	394,687				(12.2	)			755,775				798,803				(5.4	)
Average customers			513,197				510,501				0.5				—				—				—
Total Degree Days															4,016				4,349				(7.7	)

 

(1)	Information presented for 2014 is for comparative purposes only, as this was before the date of acquisition (Sep. 2, 2014).

*	in thousands

 

9