Avista’s earnings rebound in 2008

Avista Corp. this morning announced 2008 net income of $73.6 million, or $1.36 a share, compared with income of $38.5 million, or 72 cents per share, in 2007. The company’s regulated utility, Avista Utilities, also had a strong year, posting net income of $70 million, compared with income of $43.8 million in 2007. The increase was “primarily the result” of rate hikes in Washington and Idaho in January and October last year, the company said in a news release. Still, the 2008 increase looks large because 2007 was a particular weak year for Avista, said Jessie Wuerst, an Avista spokeswoman. Wuerst said the company’s 2008 earnings are on par with 2006, when Avista earned $72.9 million. Avista’s utility business is highly scrutinized, she added. “The use of every ratepayer dollar is audited, reviewed and approved” by public utility commissions in the three states where Avista sells electricty and natural gas, she said. Scott Morris, Avista president and CEO, said in the release that despite the strong showing in 2008, “we are still earning less than the return authorized by state regulatory commissons due to the lag in recovery of costs related to capital investments and operating expenses.” Morris noted that Avista recognizes “the financial pressure that our customers are facing in these difficult economic times” and will do what it can to keep operating costs down.