Yesterday, we reported fiscal '22 first quarter net income of $249 million, a $1.86 per diluted share.
Consolidated operating income decreased to $276 million in the first quarter, primarily due to a $39 million decrease in revenues associated with the refund of excess deferred tax liabilities.
Excluding the impact of these excess deferred tax liability refunds, operating income increased $16 million over the prior-year quarter.
Rate increases in both of our operating segments, driven by increased safety reliability capital spending totaled $47 million.
Continued robust customer growth and our distribution segment increase operating income by $4 million.
In the 12 months ended December 31st, we added 55,000 new customers, which represents a 1.7% increase.
These increases are partially offset by a $20 million increase in consolidated O&M expense.
Consolidated capital spending increased to $684 million, a $227 million period-over-period increase reflecting an increased system of modernization spending in our distribution segment.
Spending to close out Phase 1 of APT's Line X and Line X2 projects and project timing.
We remain on track to spend $2.4 billion to $2.5 billion of capital expenditures this fiscal year with more than 80% of the spending focused on modernizing the distribution and transmission network, which also reduces methane emissions.
To date, we have implemented $73 million in annualized regulatory outcomes excluding refunds of excess deferred tax liabilities.
And currently, we have about $36 million in progress.
Slides 17 through 24 summarize these outcomes.
To date, we have completed over $1 billion of long-term financing.
Following the completion of the $600 million 30-year senior note issuance in October, we executed four sales rates under our ATM program for approximately 2.7 million shares for $260 million, and we settled forward agreements on 2.7 million shares or approximately $262 million.
As of December 31st, we were probably $295 million in net proceeds available under existing forward sale agreements.
As a result of this financing activity, direct recapitalization excluding the $2.2 billion of winter storm financing, was 59% as of December 31st.
Additionally, we finished the quarter with approximately $3.1 billion of liquidity.
In January, we completed the issuance of $200 million of long-term debt through [Inaudible] our existing 10-year 2.625% notes due September 2029.
The net proceeds were used to pay off or $200 million term loan that was scheduled to mature in April.
Following this offering, excluding the interim winter storm financing, a weighted average cost of debt decreased to 3.81% and our weighted average maturity increased 19.23 years, which further strengthens our financial profile.
Additional details for financing activities or equity forward arrangements, as well as our financial profile, can be found on Slides 7 through 10.
Yesterday, the Texas Railroad Commission unanimously issued a financing order authorizing the Texas Public Financing Authority to issue custom rate relief bonds to securitize costs associated with winter storm Uri over a period not to exceed 30 years.
Upon receipt of the securitization funds, we will repay the $2.2 billion of winter storm financing we issued last March.
Our first quarter performance was a solid start in the fiscal year, the execution of our operational, financial, regulatory plans is on track, which positions us well to achieve our fiscal '22 earnings per share guidance of $5.40 to $5.60.
Details around our guidance can be found in Slides 12 and 13.
It is through your dedication, your focus, and the effort that we safely provide natural gas sales to 3.2 million customers in 1,400 communities across our eight states.
The results, Chris summarized, reflect the commitment of all 4,700 Atmos Energy employees as we work together to continue modernizing our natural gas distribution, transmission, and storage systems on our journey to be the safest provider of natural gas services.
For example, at APT, we placed into service Phase 1 of a 2-phase pipeline integrity project that will replace 125 miles of Line X. As a reminder, Line X runs from Waha to Dallas and is key to providing reliable service to the local distribution companies behind the APT system.
Phase 1 replaced 63 miles of 36-inch pipeline.
Phase 2 includes an additional 62 miles of 36-inch pipeline and is anticipated to be completed late this calendar year.
Phase 1 replaces 21 miles of this line and Phase 2 will replace an additional 18 miles and is expected to be completed late this calendar year.
Phase 3, which will replace the remaining 52 miles is expected to be in service in 2023.
During the completion of Phase 1 for Line X and Phase 1 for Line S2 our teams used recompression practices to avoid venting or flaring over 70,000 metric tons of carbon dioxide equivalent.
APT's third salt-dome cavern project at Bethel is now approximately 80% complete and remains on track to be placed in service late this calendar year.
In addition to those system modernization projects, we continue to make progress in advancing our comprehensive environmental strategy that is focused on reducing Scope 1, 2, and 3 emissions and reducing our environmental impact from our operations in the following five key areas, operations, fleet, facility, gas supply, and customers.
We currently transport approximately eight Bcf a year and anticipate another four projects to come online within the next 12 to 18 months.
Furthermore, we are evaluating approximately 20 opportunities that could further expand our RNG transportation.
And finally, over the next five years, we will invest $13 billion to $14 billion in capital support, the replacement of 5,000 to 6,000 miles of our distribution transmission pipe, or about 6% to 8% of our total system.
We will also replace 100 to 150 steel service lines, which is expected to reduce our inventory by approximately 20%.
This level of replacement work is expected to reduce methane emissions from our system by 15% to 20% over the next five years.

Summary:
Yesterday, we reported fiscal '22 first quarter net income of $249 million, a $1.86 per diluted share.