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.