Settlement Boosts Wwp’s Earnings

Settlement of a 12-year-old tax claim stemming from a terminated nuclear plant helped Washington Water Power Co. report improved second-quarter earnings Tuesday.

WWP said net income for the second quarter was nearly $48.5 million, or 83 cents per share, reflecting an after-tax increase of $41 million, on revenues of $236 million. That compares with income of about $9 million, or 12 cents a share, on revenues of $196 million during the same quarter in 1996.

The tax recovery was the result of a settlement with the Internal Revenue Service of an income tax claim originally made in 1985. The recovery included income taxes the company had paid, plus accrued interest on its investment in the Washington Public Power Supply System’s terminated No. 3 nuclear plant.

The earnings increase from the tax recovery was partially offset by a number of accounting adjustments stemming from a failed merger attempt in 1996, the company said.

“If you remove the tax recovery, accounting adjustments and last year’s merger costs from our results, year-to-year quarterly earnings were about equal,” Chairman and Chief Executive Officer Paul Redmond said.

, DataTimes