Reduced hydroelectric production hurts Avista earnings

Drought conditions affected Avista Corp.’s second-quarter earnings, with the Spokane-based utility reporting a dip in income.

Avista reported second-quarter profits of $25.1 million, or 40 cents per share, from continuing operations. The results, released Wednesday, compared to $31.3 million, or 52 cents per share, for continuing operations in the second quarter of 2014.

The yearly comparisons don’t include the sale of Avista’s Ecova subsidiary, which generated a one-time gain of $69.6 million for the company during the second quarter of 2014.

Record-high temperatures and low rainfall decreased hydroelectric generation during the second quarter, said Scott Morris, the company’s chairman and chief operating officer. That was offset by the early runoff, which produced high power generation from January through March. Power generation should be about 94 percent of normal for the year, however.

The company expects its per-share earnings for 2015 to be in the range of $1.86 to $2.06, Morris said.