A bit of variance there between the months. But I would remind you that last year in Q3, us and much of Pacific Northwest saw very warm hot weather, so definitely a variance driving the year-over-year results here. On the silver lining of that, I would tell you that, that provided some tailwinds on our PCCAM. There’s two pieces with that PCCAM. If you recall last year, for the full year, that was about $0.10 of drag to us. But in Q3, we definitely saw a detriment there. The absence of that detriment this year was helpful, and also importantly, and I’ll speak to the rate review in a bit more detail coming up here, but the adjustment to that PCCAM base, even through interim rates, was very significant for us. So, all of that resulted in, from a PCCAM perspective, $0.05 of improvement over the quarter in 2022.
But the other side of that weather is it also impacted driving lower sales volumes for us versus prior year, and notably, also lower demand for our transmission, think about demand across our lines, moving power to the West — South and West, North and West, less demand for that this quarter. So, between those two, that’s about a $0.06 drag to earnings, so offsetting some of that improvement from interim rates. Turning to Slide 10, on operating costs, you will see that we were relatively flat for the quarter versus the prior year. And you’ll note that going through the first six months of the year, we had seen a bit of an increase there, so that’s putting our year-to-date back in line with our expectations of how we expected the year to shape up.
Slide 11 really gives you a full look of how we performed for the quarter, adjusting out that non-GAAP piece I just mentioned, how weather in Q3 for us this year was unfavorable. So you’ll see we’ve added back on a net income basis, about $700,000 or $29.3 million of GAAP earnings, adjusted to $30 million on a non-GAAP basis. And remind you, that in prior year, that was favorable weather we were adjusting out, so that creates a $0.04 swing in results for the year. And you can see there, on a non-GAAP basis, again a $4.2 million increase or 16.3% for the quarter. Slide 12 provides a bit of detail on our cash flows, and I would note here, we’ve been committed to our investment-grade credit ratings and improving our FFO to debt, and you can see, certainly a significant improvement in cash flow from operations here with important changes to our PCCAM and also the base rates even captured from an interim rate basis, and you can see that improvement of less cash outflows, think of it that way, versus ’22 is very significant as we move back toward delivering growth and making sure our balance sheet is strong to where it should be.
So that leads me to Slide 13, and talking about the Montana rate review. Brian already mentioned how critical that was and also how constructive the work session was. We expect based off that draft order that the final rates will be effective November 1 and we’ve made a compliance filing to trigger that with the commission. Those final rates will be an adjustment from interim rates increasing, so I think interim rates are detailed previously, a little over $30 million. We’ll go to the final adjustment on a base rate basis of $81.5 million between electric and gas. And we are pleased with that outcome, while we acknowledge that we don’t receive a true-up back to the date of interim rates. We do keep the interim rates, so I think the $30 million that we’ve been collecting along, I think there is been a bit of confusion as to how that would work.
