October 28, 2009 in City

Avista earns $8.1 million for quarter

Figures represent 9 percent increase in Q3

Bert Caldwell The Spokesman-Review

Avista Corp. Wednesday reported improved third-quarter earnings despite sharply lower revenues.

The Spokane company earned $8.1 million, or 15 cents per share, based on operating revenues of $314.7 million. During the 2008 third quarter, the company earned $7.4 million, or 13 cents per share, based on revenues of $382.7 million.

Utility operations yielded income of $7.2 million, compared with $6.5 million in 2008, while Advantage IQ, Avista’s energy management and billing subsidiary, contributed $1.4 million, up from $1.3 million during the 2008 quarter.

Avista Chairman Scott Morris attributed the utility’s improved results to electricity rate increases implemented in Washington Jan. 1, and in Idaho Oct. 1, 2008, and Aug. 1, 2009.

Natural gas rates, on the other hand, have fallen 30 percent in Idaho, 28 percent in Washington and 12 percent in Oregon as the company passed lower wholesale gas costs through to customers.

Another proposed electricity rate increase in Washington is pending. Avista Senior Vice President Mark Thies told analysts Avista will file more rate increases next year.

For 2009, Avista also benefited from lowered interest costs, and income tax payments.

Chairman Scott Morris said the company expects earnings for all of 2009 to fall at the higher end of a range from $1.45 to $1.61 per share. In 2010, projected results fall somewhere between $1.55 and $1.75 per share, he said.

Morris also said Avista may speed up development, or increase in size, a proposed $125 million wind-power project near Reardan, depending on the cost of the windmills, and alternative sources of renewable energy.

High costs sidetracked the project last year.

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14 comments on this story so far. Add yours!

Scoutster on October 28 at 8:30 a.m.
It’s time to coop these greedy bastards. There is no reasonable justification for Avista to even exist as a profit making company. Every penny a customer uses for heat should go to heat or overhead, not to pay shareholders.
Some things it’s ok to make a profit on. Should heat be one of those? How about air and water?
The lower the commodity is on Maslow’s hierarchy of needs, the less justification there is for it to be a profit making commodity.
If that’s “socialism”, then so are our roads, police, fire, and other essential services.
misjustice on October 28 at 10:17 a.m.
Headline should read: AVISTA Stole 8.1 Million This Quarter.
Shane0312 on October 28 at 12:43 p.m.
I smell another rate hike coming.
philipgregory on October 28 at 1:24 p.m.
Spokesman Review! Are we supposed to be happy about this?
Not many of us have stock in Avista, you know. Nor, are we one of the bonus-bloated executives.
It’s time to take public resources (dams, power plants) away from greedy for-profit corporations and back into the hands of our mis-managed incompetent public employees - at least waste is better than greed.
Orange on October 28 at 2:17 p.m.
Avista, I spend about $300 a month to your empire. I also work and temporarily live in an apt in Grant County during the week, where my utility bill never exceeds $30 a month averaging about $19 a month. And you have the audacity to post gains like that? When are we going to see reductions in our utility costs? The time should be now. Show some good faith for once.
Dan_at_Avista on October 28 at 5:51 p.m.
I appreciate the comments everyone here has left today. Any time we announce our quarterly activity - this time it was a profit - I expect to see some comments on the articles written about us. I’m not going to address everything written above. Just this - when we earn a profit, that money does many things, such as going back into the system that delivers the energy that our customers rely on. Just today I was in Noxon, Montana to see one of the electric-generating units in the Noxon Rapids Dam get removed (its about the size of a small bus). We’re upgrading the dam to be more efficient and produce more megawatts at the lowest cost to customers - hydro power. I’ll have a blog post and video up about it hopefully by Friday. You can check it out at www.avistautilities.com/blog. You can always share your thoughts about any utility related subject in the comments section of our blog as well.
westside on October 28 at 6:30 p.m.
This is capitalism…. been going on for 150 years! Companies are made to make profits..the more the better for the share holders who own stock in Avista…and who cares if the rate payers can’t afford it..get some part time jobs…not good at all…
Solaria07 on October 28 at 6:39 p.m.
Avista seems to be a master at “smoke and mirrors.” One day, a rate increase under Option A (delivering the gas/electric to us poor working/retired folks); the next day “decreasing” prices under Option B because Avista’s cost to buy energy has gone down [does Avista reduce that price equal to what they saved when their purchasing costs went down?? Let them SHOW it!]. I notice “Dan” from Avista did not tell us how much of the “profit” went to stockholders or how much will go to bonuses for the bloated executives at Avista. Avista…our friendly neighborhood predator…has a monoploy on gas/electric in Spokane (and beyond). Why doesn’t the city put the gas/electric “contract” out to bid??? Can the city do that? How much does Avista WASTE IN ADVERTISING (ads are unnecessary, since no one has a choice). How much does Avista contribute to political campaigns? Why should they need to contribute anything? Both advertising costs and political contributions (assuming they do such) come not from Avista, but from the folks who PAY Avista!!
Outrageous!!
Lulubelle on October 28 at 7:03 p.m.
Seattle City Light is a publicly (read Socialist!!) owned utility. The Superintendent is paid $224,000/yr. (and does a hell of a job) Avista is a privately (read Capitalist) owned utility. Avista CEO is paid $2.2 mil. Seattle City Light uses its “profits” to keep rates low. Avista uses its profits to pay its shareholders. If the average utility customer had a choice….which would they choose? Too bad its a monopoly…..there is no choice.
zelda on October 28 at 7:40 p.m.
Ever notice that when a car hits a pole, it’s not just a utility pole — it’s an Avista pole? And when the power goes out, it’s not just utility workers trying to restore electricity, it’s Avista workers? Corporate branding in extremis. I’m beginning to think that the news media get kickbacks every time they say the word “Avista” in a newscast.
The patronizing, paternalistic communication is intrusive and inescapable. Yeah, maybe “Dan” is a swell guy, but more likely he’s a company tool. Avista wouldn’t let someone speak on the company’s behalf like this unless authorized and sanctioned in some way.
If “Dan” has something to say, Avista should put it on its Web site instead of afflicting us with a contrived “best practice” picked up at a PRSA seminar.
lewis8457 on October 28 at 8:01 p.m.
hold onto your hats folks Avista just got a hand out from the government via the stimulus plan.
Rifleman__Dodd on October 28 at 8:13 p.m.
AVI$TA
elcee1987 on October 28 at 10:34 p.m.
I agree with all of the comments. Spokesman, this article should have been against the 8.1 million dollar profit, not supporting it. Maybe if I bought stock instead of paying my electricity bill, this might be good news, but it’s getting cold out and I need to save up so they don’t shut my power off in January. Looks like Avista has another spokane business in its pocket.
Every time there’s an Avista-focused article in the paper (which is often), it’s always avista-positive. Makes no sense when our rates increase at the same pace their executive salaries do!
addyh on October 29 at 9:48 a.m.
Lindsey, I think Avista’s executives would probably beg to differ that we always cover the company positively…
The point, however, is that we report the news that comes out of Avista, whether that’s quarterly earnings, executive salaries, dam relicensing, foundation grants, whatever. We don’t set out to cover them positively OR negatively.
Addy Hatch, city editor