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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Mild Weather, Low Streams Sap Wwp Earnings Fourth-Quarter Earnings Strengthen, But 1994 Profits Still Fall Below ‘93 Levels

Stronger fourth-quarter earnings were not enough to keep Washington Water Power Co. results for 1994 from slipping below 1993 levels.

Chairman Paul Redmond said warm temperatures and low streamflows sapped 1994 earnings.

The Spokane-based utility Thursday reported net income for the quarter ended Dec. 31 of $26.7 million, up from $23.6 million a year ago.

Income available per share of common stock - net minus preferred stock dividends - was 46 cents, compared with 41 cents.

Revenues increased to $190.6 million from $177.2 million in the 1993 period.

For the year, net income was $68.5 million, down from $74.4 million. Income per common share was $1.28, compared with $1.44.

Revenues increased to $670.8 million from $640.6 million, but expenses also climbed as the utility generated more electricity at coal- and woodfired plants to replace cheaper hydropower that was not available from its dams in the region.

Streamflows, Redmond noted, were only 65 percent of normal for the year, causing a 23 percent loss of hydrogeneration output.

Temperatures were 9 percent above normal for the year, he added.

Redmond said revenues from sales of electricity to other utilities suffered by comparison with 1993, when BPA purchased a significant block of power early in the year.

But WWP has negotiated new longterm contracts that will shore up spot sales in 1995, he said.

Also, WWP added 7,900 electricity customers in 1994 and acquired another 9,800 in North Idaho as of Jan. 1 that were formerly served by Pacific Power & Light Co.

WWP and its subsidiaries gained 16,000 natural gas customers for the year, Redmond said.

The sale of WWP-owned stock in Itron Inc. contributed significantly to earnings in both 1993 and 1994.

Income from non-utility operations like Itron and Pentzer Corp. contributed $13.6 million to income in 1994, almost 18 percent of the total.

In 1993, those operations contributed $13.3 million, or 16 percent of the total.

Pentzer is the holding company for WWP’s non-utility operations. Itron, in which the company has a significant minority interest, makes automated meter-reading equipment.