Avista Sees Earnings Boost

Avista Corp. disclosed Wednesday that fourth-quarter earnings will exceed projections.

Net income is expected to be more than 50 cents per share, compared with the 5 cents anticipated by analysts who follow the company.

Avista credited the improving earnings outlook to its energy trading subsidiary, Avista Energy, which has benefited from the volatility in West Coast energy markets.

Profits from trading will offset losses at Avista Utilities caused by continuing cold. Increased demand for electricity has forced the utility to buy additional power in wholesale markets where prices have been pushed to unprecedented levels.

Although Washington regulators in August let the utility set aside some of those expenses for possible recovery later, the extraordinary cold has pushed costs beyond those provided for in the original order.

Spokesman Steve Becker said Avista Utilities will ask the Washington Utilities and Transportation Commission to amend the order to permit additional set asides.

Avista released an earnings pre-announcement a week before its second-quarter results in October.

The struggling utility was again bailed out by Avista Energy, which earned $41.9 million in the period.

Overall, Avista earned $33.9 million, or 72 cents per share, in the second quarter.

A strong fourth quarter should put Avista, which anticipated a loss for 2000, into the black.