Wwp Posts Big Increase In Earnings Wholesale Electricity Sales Help Lift Third-Quarter Profit

Washington Water Power Co.’s wholesale electricity business brightened normally lackluster third-quarter earnings, the utility announced Tuesday.

Revenues increased almost 40 percent to $219.8 million, of which $63.5 million was generated in wholesale markets where WWP has emerged as a leading player.

For the three-month period that ended Sept. 30 last year, wholesale revenues were only $30 million.

Helped also by a $4.7 million gain on the sale of Itron Inc. stock held by a subsidiary, WWP income for common stock jumped to $16.6 million, or 30 cents per share, compared with $10.9 million, or 16 cents per share, a year ago.

WWP usually falls far short of earning its quarterly 31-cent dividend during the period, the slowest for the utility.

For the 12-month period ended Sept. 30, earnings improved 27 percent despite a $15.8 million write-off taken on a proposed merger with Sierra Pacific Resources that was abandoned in June.

Net income for common stock was $101.9 million, or $1.67 per share, compared with $81.2 million, or $1.32 per share.

Besides the sale of Itron stock by Pentzer, the holding company for WWP’s non-utility operations, earnings also were boosted by the first-quarter sale of the Spokane Industrial Park, which netted $12.1 million.

WWP Chairman Paul Redmond said Pentzer and the utility’s wholesale business should continue their contributions to the bottom line.

“Pentzer has played a substantial role in our ability to grow our company and earn an adequate return on the investment of our shareholders,” he said.

, DataTimes