Spokane7
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August 5, 2010 in Business
Avista profit dips slightly in second quarter
Avista Corp. saw its profit decline slightly in the second quarter, the Spokane energy company said today. The results primarily are due to an increase in interest expense, other operating expenses and depreciation and amortization, Avista said.
Net income was $25.5 million, or 46 cents per share, May through June, compared to $25.8 million, or 47 cents per share, in the second quarter of 2009.
The company also confirmed its earnings outlook for the full year. “Our outlook has improved for the full year of 2010, particularly with respect to our utility earnings, president and CEO Scott Morris said in a prepared statement.
Cooler, wetter spring weather helped hydroelectric generation, Morris explained. But Avista still expects below-normal power generation this year due to low snowpack and precipitation last winter, he said.
“The improvement in the second quarter has partially offset a challenging first quarter due to one of the warmest January to March periods on record,” Morris said.
For the quarter, Avista’s operating revenues increased $46.2 million and its resource costs increased $42.5 million, which resulted in an increase of $3.7 million in gross margin, compared to the second quarter a year ago. Most of that — $2.5 million — was on natural gas sales due to colder weather that increased retail loads and lead to general rate increases in Washington on Jan. 1 and in Idaho on Aug. 1.
The gross margin on electric sales increased $1.2 million, due to rate increases in Washington and Idaho and a slight increase in retail loads.
In confirming its outlook for 2010, Avista said it expects earnings will fall somewhere between $1.55 and $1.65 per diluted share. That’s a rosier outlook than three months ago, primarily due to lower power supply costs, the company indicated.
The earnings outlook assumes a general rate increase to go into effect in Idaho on Oct. 1, as well as normal precipitation and temperatures the rest of the year.
Northwest wheat 
Scoutster on August 05 at 8:55 a.m.
Oh, God…
Profits are down! Let’s increase rates on the serfs!
liarsinnews on August 05 at 9:06 a.m.
Why is it the Washington Utility Commission stay in bed with WWP aka AVISTA? The Avista bandits rob the users every chance they get and I`ll wager the WUC has received a call for another increase in rates because of the latest news about profits..
cdaterry1 on August 05 at 9:08 a.m.
Profits down….anything to do with excess salaries?? Avista is just a utility company - it is not rocket science to run a utility company. The CEO of avista got a raise to $3,000,000/year and has a bank of minions making in excess of $400k/year. This is a large part of what is WRONG in America today. There are plenty of Highly qualified unemployed Americans who would and could gladly run the “non rocket science” company for $100-200k/year. Wall Street attitude = Organized Greed.
eagleproducer on August 05 at 9:42 a.m.
dick: The WUC is in bed with AVISTA because arch conservatives have infiltrated government at ever level in order to make it ineffective for anyone except big business.
misjustice on August 05 at 10:08 a.m.
@ Tucky; you nailed it! It’s called the “Revolving Door” theory… Unfortunately, many “conservatives” go into government to obstruct (and to “demonstrate” that gubmint doesn’t work), then they cycle out of gubmint jobs into the private sector where they work (using the connections made while in gubmint) to help large corporations circumvent the few laws remaining that attempt to restrict the ability of large corporations to rob us blind. Then, after reaping their millions/billions they self-fund campaigns and buy themselves a Governor’s or Congressional seats and the revolving door just keeps spinning. (see Carly Fiorina and Meg Whitman in CA)
I’m sure that Mr.Morris’s pay raise had nothing to do with the profit decline; it’s our faults for not using more utilities. We need to do our part to ensure Avista’s profits - use more power - failure to do so is down right UnAmerican!
mikeln on August 05 at 10:21 a.m.
A company that depends on foul weather to boost profit. Just another corperation that depends on peoples need to stay alive. There are certain things capitalists should never, never been allowed to make a profit on and I think a growing number of americans are starting to realize this. They call it socialism if we try to take that kind of profit away from them, I call it survival. We need to take back the things people need to survive, plain and simple, or remain slaves to these greedy crapholes. These type of people have done everything possible to keep the majority paying and paying. They use their money to influence our government of the people to work only for their interest, the hell with any type of fairness. There are plenty of things we don’t need the capitalists could make money on. We would have a choice on those things and would buy them only if these pigs paid us enough. We need to take america back from these A-holes.
Dan_at_Avista on August 05 at 10:40 a.m.
Dick, I can always count on you to comment on Avista stories. I do want to address your note. Back in March, Avista filed for a rate increase in Washington and Idaho. Idaho’s request was settled last week and if approved will be effective Oct.1. But Washington’s request is still pending as the WUTC has up to 11 months to make a ruling on it. So when that request is eventually resolved, you know it’s not related to the news announced today. Our March filing announcement: http://www.avistautilities.com/community/blog/archive/2010/03/23/0323101.aspx
cdaterry1, I don’t want to spark another debate about executive compensation, because I understand the strong feelings toward this issue on a local and national level. I’m not defending what anyone makes. But your note about a $3 million “raise” isn’t accurate. Our CEO’s total comp was valued at that amount last year, which doesn’t mean he took that much home. We wrote a lengthy explanation about total comp back in March that’s worth a look. http://www.avistautilities.com/community/blog/archive/2010/03/31/033110.aspx
mikeln on August 05 at 10:58 a.m.
My total comp. last year was about ten grand, didn’t get to take any of it “home” as it belonged to somebody else before I made it. While I don’t begrudge someone makeing a profit, some people have taken it to the point where america has become the home of the free slaves.
spokanada on August 05 at 11:12 a.m.
Dan, we can always count on you to lube us up before Avista bends us over.
Diana on August 05 at 11:21 a.m.
Dan attempting to defend what is indefensible. Why bother?
spokanecougar on August 05 at 12:27 p.m.
Lower profits huh? Well guess we can expect to hear Avista will be raising our rates within the next week or two.
As has been said a couple of times….wouldn’t it be easier to cut some of Avista’s outrageous salaries to save some money instead of raising rates on people who can barely afford what they are paying already? Dan, you love to defend Avista, so please defend why the CEO need to make $3 million a year…..does he need to remodel his mansion or something or does he need another yacht to add to the collection?
liarsinnews on August 05 at 1:28 p.m.
The appointees on the Washington Utility Commission were appointed by a democratic governor. I hesitated to bring in a political party but as you can see, some of the contributors to this story have and, here we go again, its the damn GOP. I personally can`t stand the GOP either but I at least recognize that the political pimps are in both parties. While I`m a independent conservative, I vote the person not the party. Once these legislators have been in office long enough and have decided to make it their career, they forget who put them in office, and of coarse at a federal level have made a fortune.
liarsinnews on August 05 at 1:36 p.m.
Dan at Avista: Please explain how some of the low life management employees at Avista blamed a employee who committed suicide but got crossed up when the gas trading on Wall Street where Avista really screwed up costing millions happened a fews days after the poor soul was dead. It finally was published in the SR after every newspaper in the country told the public about the pathetic transaction and how AVISTA GOT CAUGHT. Put that in your pipe, Dan, and smoke it.
BigE on August 05 at 4:00 p.m.
This makes me ill, this is not the place to defend your company, give it up, Spokane is held hostige by Avista, kind of like BP, if you work for them they are great, or if, hate em.
There is a total disconnect between Avista and the people who make them wealthy.
Dan_at_Avista on August 05 at 4:36 p.m.
BigE, I appreciate your comment – even a critical one. What could Avista do to earn back your trust? My reason for participating in discussion forums like this is to share information and offer the point of view from someone who works here and has the advantage of living and breathing the energy business every day. You can see it as defending the company and that’s fair, I obviously represent a viewpoint, just like you.
I’ve been working specifically online for Avista for over 14 months and other responsibilities years before that. You can check out our blog at www.avistautilities.com/blog or www.avistautilities.com/conversation. You’re free to leave comments there too – positive or negative.
Over the last month I’ve been out at public places gathering comments and questions from Avista customers in a project called Energy on the Street. The HBO blog even mentioned where we were filming days before hand. I talked with hundreds of people for this project and will be filming answers the customer questions tomorrow and next week. I expect we’ll have them up on our site by the end of the month. Here’s a post about the project. http://www.avistautilities.com/community/blog/archive/2010/07/13/071310.aspx
You can still participate: just e-mail me at conversation@avistautilities.com
Scoutster on August 05 at 4:55 p.m.
Dan…
Who gets to edit these “Energy on the Street” comments? Of course, you do, since it’s your toys.
But it does somewhat diminish from any serious comments being presented, eh Comrade Dan? I mean, why bother? MY comments won’t be offered when the film is shown at the annual meeting, I’m sure. (Not that the shareholders would give a sh*t what the serfs think.)
“Let them heat with charcoal!”
misjustice on August 05 at 6:55 p.m.
Dan, Dan, The Corporate Man…once again butting in on the SR blogs to promote propaganda…and interrupt the thread. What a downer!
Dan_at_Avista on August 05 at 7:29 p.m.
Scoutster, send me an e-mail at dan.kolbet@avistacorp.com and I will play for you every single video we recorded, no edits. I’ll buy you lunch and introduce you around.
Energy on the Street is about what our customers said and want to know more about. Nothing to hide here. The only questions we aren’t using are duplicates.
But I honestly want your comments. Lets move past the safety of griping about stuff online in a vacuum and participate where your opinions will make an impact. Send me an e-mail. Lets make it happen.
D Statler on August 05 at 7:31 p.m.
Hi Dan, Glad to see you still have a solid job with AVISTA. You will never get any of us to understand why we are paying $3 Mil plus to anyone at AVISTA. You are more deserving than Mr. Morris! LOL That 3 million could go along way to restoring the salmon runs we lost. I am guessing that if AVISTA looked into it.Each dam in their holdings could be retrofitted with ladders for less than 3 million each! Then as I said directly to Mr. Morris, we could walk accross the street on his lunch break and catch world record salmon together. That is one good way AVISTA could earn our trust back. Another way is stop taking the guaranteed 10.5% return and get back to a realistic 5%. 5% guaranteed return is still plenty. 5% will guarantee a vibrant and healthy AVISTA!
The executives at AVISTA don’t like it when we picket their corporate head quarters. Even when I stood there by myself. It brought the spin doctors out for a visit. I did enjoy our visit tho. LOL I suggest we all take turns showing the $3 milloin dollar man how the surfs live. Informational pickets along Mission Ave around 7 to 9 AM on weekdays are kinda fun. Lets not wait till the WUTC gives their ruling to let Mr. Morris know how the forced customers,IE (surfs) really feel. Hope to see everyone taking a turn while your kids are swimming in the new pool.
A note to everyone posting here: Wouldn’t you be doing the same thing as Dan right now if somebody was paying you SIX figures to set and respond to us. Please be civil to DAN! He is not the enemy,just another one of his messengers.
PlanB on August 05 at 10:51 p.m.
Where’s FDR when we need him??? Dammit, he died while guiding the US through the great depression and the most destructive war ever. Quitter!
FDR despised the private utilities that where screwing the public for power. He fully supported the Federal Government providing the power(i.e. Grand Coulee Dam) to be distributed by locally controlled PUD’s. WWP was a prime example of what FDR hated. Because they are blood sucking leaches that charge whatever they want for a basic human need - warmth.
The WUC historically bends over and takes it deep and long for whatever WWP (Avista) wants. I have no idea why we even fund that department.
I won’t say there is no CEO on the planet worth 3 mil, but the Avista CEO is surely not one of them.
And Dan at Avista, I applaud you for posting and I’m sure you are a nice person but I could never whore myself out like you do, at any price.
BigE on August 06 at 11:11 a.m.
Dan the man, no trust will ever be granted, remember who you work for, BigE pays attention. Avista = greed
tea42 on August 25 at 12:18 p.m.
Remember everyone, Avista has to request rate increases. With out the complicity of the utilities commision there would be no increase. The current commision was appointed by our current governor. Maybe we all need to be giving her a call with a piece of our mind.