Rate increase, lower costs bump up profits for Avista

Avista Corp.’s profit jumped $8.5 million in the second quarter of 2005, thanks in part to rate increases implemented in Washington and Idaho.

The Spokane energy company’s net income for the second quarter was $18.6 million, or 38 cents per share, up from $10.1 million, or 21 cents per share, in the second quarter of 2004.

The majority of the increased earnings came from Avista’s utility division, which contributed $18.4 million to net income, or 38 cents per share, up from $9.1 million, or 19 cents per share, in the same time last year. The utility attributed its increased earnings to rate increases, lower costs and the sale of its South Lake Tahoe natural gas distribution properties.

However, the company projected that its utility division would record a loss in the third quarter due to reduced hydrogeneration and high fuel costs.

Avista’s utility billing subsidiary, Avista Advantage, contributed $900,000 to earnings. However, Avista’s energy marketing division, Avista Energy, recorded a net loss of $300,000.