August 4, 2011

Avista reports slightly lower earnings

 
Tags:Avista

Avista Corp. reported slightly lower net income of $23 million today for the second quarter, compared to $25.5 million for the second quarter of 2010.

“Our second quarter results were slightly below our expectations due to higher than anticipated operating costs. However, we continue to be on track to have a good year,” said Scott Morris, Avista’s chairman and chief executive officer. Weather conditions in 2011 have been cooler than average with precipitation, stream flows and resulting hydroelectric generation well above average.

But low prices in wholesale power markets limit Avista’s ability to profit from one of the best years of hydroelectric generation on record, Morris said. In addition, most of the benefit from improved hydroelectric generation is passed to customers through a credit called the “energy recovery mechanism.” Customers get the credit when purchased power and fuel prices are below the amount included in base rates.

Seven comments on this story so far. Add yours!

  • Squid on August 04 at 9:25 a.m.

    Poor Avista…. So sad that they are struggling.

    Are the higher operating costs due to purchases of new heavy equipment or bonuses?

    Even though the total amount due on our bills have multiplied by three in the last ten years, they are still struggling when the conditions for generating electricity are at the peak.

    Remember when the electric rates were jacked when there was years of drought? Remember when our gas rates were jacked when Katrina went through the Gulf, even though our gas comes from Alaska and Montana?

    Poor Avista. I hope they get well soon.

  • DickAdams on August 04 at 10:22 a.m.

    Alert!!! Rumor has it Avista is going to ask for another rate increase because of lower profits.

  • liberal_in_right_wing_land on August 04 at 10:54 a.m.

    Here come the rate increases.

  • D Statler on August 04 at 12:24 p.m.

    Why ask for another increase when there are already increase requests setting on the desks of the UTC and PUC offices. This is another one of AVISTA’s strategies to pursuade them into giving higher increases already on the table. AVISTA is already guaranteed a high rate of return. Excuse me Dan, I mean they are guaranteed a defined rate of return. LOL Please take the time to visit the UTC website and review the requests.There is probably numerous confidential correspondence between AVISTA and the UTC that the public cannot view.While on the UTC website.Please fill out a complaint form.Maybe someday the Attourneys General office will step in and clean up this mess. It might be awhile with AVISTA making huge corporate campaign contributions to these elected officials. :^(

  • D Statler on August 04 at 12:25 p.m.

    Here come the full page AVISTA feel good advertisements!

  • deacon46 on August 04 at 1:36 p.m.

    Where is Dan ? Defender of the Corporate Greed.

  • westerly on August 04 at 3:23 p.m.

    “Our second quarter results were slightly below our expectations due to higher than anticipated operating costs. However, we continue to be on track to have a good year,” ( with a nice increase in electrical rates) lol

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