Mike [Last Name Unknown]'s questions to RGC Resources Inc (RGCO) leadership • Q2 2025
Question
An unknown analyst named Mike asked about the future trajectory of interest expense given current rates and upcoming refinancing, whether meaningful AFUDC would be recognized for the Southgate project, and if Q3 customer refunds from the rate case would be offset by the Weather Normalization Adjustment (WNA).
Answer
Tim Mulvaney, VP, Treasurer and CFO, explained that the interest expense outlook is uncertain and dependent on Federal Reserve actions, though some variable-rate debt could benefit from rate cuts. President and CEO Paul Nester clarified that due to using the cost method of accounting for its smaller stake in Southgate, the company is precluded from recognizing AFUDC. Lawrence Oliver, SVP, Regulatory and External Affairs, confirmed that the small customer refund obligation would be fully offset by the WNA charge in May and June.