So, today we're pleased to announce net income of $2.7 million or $0.18 per share for the second quarter of 2021.
For the first half of 2021, net income was $21.6 million or $1.44 per share.
This represents an increase of $0.21 per share over the same six-months period of 2020 and reflects higher Electric and Gas adjusted gross margins.
First, we reiterate our long-term guidance of 5% to 7% growth in earnings per share with 2021 earnings expected to be somewhat above the higher end of the range relative to 2020.
Second, the company recently announced a goal of achieving net zero emissions by 2050.
Combined, the pending rate applications for Unitil Energy Systems and Northern Utilities request a nearly $20 million increase in base distribution revenues.
As I noted earlier, on June 21, we announced our goal to reduce companywide direct greenhouse gas emissions by at least 50% by 2030 relative to 2019 levels and to achieve net zero emissions by 2050.
As Tom noted today, we announced second quarter earnings per share of $0.18.
This represents a year-over-year decrease of $0.4 million or $0.03 per share.
On a year-to-date basis, net income increased by $3.3 million or $0.21 per share compared to 2020.
As Tom mentioned, we expect full year 2021 earnings to be ahead of our 5% to 7% long-term earnings per share growth range relative to 2020 earnings of $2.15 per share.
For the six months ended June 30, 2021, Electric adjusted gross margin was $48 million, an increase of $2.5 million or 5.5% relative to 2020.
The increase in Electric adjusted gross margin reflects higher residential unit sales of 2.8% and higher commercial and industrial unit sales of 3.1%.
Customers increased 0.8% over the first half of 2020.
As noted on Slide 8, for the six months ended June 30, 2021, Gas adjusted gross margin was $72.8 million, an increase of $7.5 million or 11.5% compared to 2020.
The increase in Gas adjusted gross margin reflects higher rates of $5.1 million and the combined net effect of $2.4 million from the net favorable effect of customer growth, colder winter weather and warmer spring weather.
The first half of 2021 was 2.1% colder year-over-year, contributing to higher natural gas therm sales of 4.2%.
Higher sales also reflect 1,200 additional customers served compared to the same period in 2020.
As noted earlier, 2021 adjusted gross margin increased $10 million as a result of higher rates and higher unit sales.
Operating and maintenance expenses increased $2 million.
The increase in operating expenses also includes an increase of $0.4 million or roughly $0.02 per share related to a recent decision by the New Hampshire Public Utilities Commission's not to authorize the creation of a regulatory asset for incremental bad debt related to the COVID pandemic.
Depreciation and amortization increased by $2.7 million, reflecting higher levels of utility plant in service.
Taxes, other than income taxes, decreased by $0.2 million, primarily due to lower payroll taxes, partially offset by higher local property taxes on higher utility plant in service.
Interest expense increased by $0.9 million, reflecting interest on higher long-term debt balances, partially offset by lower rates on lower levels of short-term borrowings.
Other expense decreased by $0.5 million, largely due to lower retirement benefit and other costs.
Lastly, income taxes increased by $1.8 million as a result of higher pre-tax earnings.
The Unitil Energy rate case, which I've discussed on previous calls, is progressing as expected with temporary rates of $4.5 million becoming effective on June 1.
In that case, we proposed a $7.8 million rate base increase with a $3.2 million temporary rate increase.

Summary:
So, today we're pleased to announce net income of $2.7 million or $0.18 per share for the second quarter of 2021.
As Tom noted today, we announced second quarter earnings per share of $0.18.