Financial Data and Key Metrics Changes - Net income for Q1 2026 was $4.8 million or $0.47 per share, down from $5.3 million or $0.51 per share in the same quarter last year [6] - Gas margins increased nominally, while lower interest expenses were noted due to the Fed lowering interest rates, but these were offset by higher costs in personnel, IT, property taxes, and depreciation [6][7] - Total capital expenditures for Q1 2026 were $5.6 million, flat compared to the same period last year [5] Business Line Data and Key Metrics Changes - New main miles installed in Q1 2026 were 0.6, down from 1.1 in Q1 2025, while new service connections remained stable at 196 compared to 197 last year [4] - Residential gas usage increased by 8%, while total gas volumes remained flat due to a decrease in usage from a large industrial customer [5] Market Data and Key Metrics Changes - The heating degree days increased by 11% compared to Q1 last year, contributing to the rise in residential usage [5] - The recent cold snap, referred to as Winter Storm Fern, resulted in a 53% increase in heating degree days compared to normal, with 680 heating degree days recorded [11] Company Strategy and Development Direction - The company is focused on enhancing safety and reliability for customers through continued investments, including a backlog of approximately 13,000 feet or 2.5 miles of new main to install [4] - The company is actively monitoring legislative changes in Virginia, which are not expected to limit natural gas usage or development, and is engaged with local senators and delegates [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy and the performance of the distribution system during extreme weather conditions, noting no customer losses during the cold snap [11] - The company anticipates a weaker second quarter due to weather-related construction delays but remains hopeful about making up for lost time in the spring and summer [16] Other Important Information - The company filed an expedited rate case seeking approximately $4.3 million in incremental annual revenue, with interim rates effective January 1, 2026 [14] - An estimated undercollection of $8 million to $10 million in gas costs related to Winter Storm Fern is expected to be addressed with the commission over the next 12-18 months [13] Q&A Session Summary Question: What is the impact of the recent cold snap on operations? - Management noted that the distribution system performed flawlessly during Winter Storm Fern, with no customer losses reported [11] Question: What are the expectations regarding the rate case? - The expedited rate case seeks $4.3 million in additional revenue, with interim rates effective January 1, 2026, and a decision expected by the end of the calendar year [14][15] Question: How does the company plan to address the construction delays? - Management indicated that they are monitoring the situation and hope to make up for lost construction time once the weather improves [16]