Avista earns $25.5 million

COEUR d’ALENE — 2010 is shaping up to be a good year for Avista Corp.

The Spokane-based company reported net income of $25.5 million, or 46 cents per diluted share, for the second quarter of 2010.

That’s nearly identical to the $25.9 million, or 47 cents per diluted share, it reported for the second quarter of 2009.

For the six months that ended June 30, net income attributable to Avista Corp. was $54.4 million or 98 cents per diluted share,

compared to $56.9 million, or $1.04 per diluted share for the first six months of 2009.

“Our outlook has improved for the full year of 2010, particularly with respect to our utility earnings,” said Avista Chairman, President and Chief Executive Officer Scott L. Morris. “Cooler and wetter-than-normal weather this spring resulted in improved hydroelectric generation conditions; however, we still expect below normal generation for 2010 due to low snowpack and precipitation last winter.”

Morris said that given the improved hydroelectric generation, Avista expects lower power supply costs and an increased benefit under the Washington Energy Recovery Mechanism for 2010.

The improvement in the second quarter has partially offset a “challenging” first quarter due to one of the warmest January to March periods on record, he said.

“As such, we are confirming our 2010 earnings guidance with the expectation we will be in the lower half of our consolidated guidance range,” Morris said. “We continue to execute on our regulatory strategy to recover costs and capital investments in our utility business. In July, we reached a settlement in the Idaho general rate case we filed in March that we believe provides a fair and reasonable outcome for customers and shareholders.”

 If approved by the Idaho Public Utilities Commission, new rates would become effective this October.

Avista is confirming its 2010 guidance for consolidated earnings to be in the range of $1.55 to $1.75 per diluted share.

“This is a change from our report at the end of the first quarter of 2010 as the outlook for Avista Utilities has improved in the second quarter primarily due to lower power supply costs,” a press release said.

Avista Utilities provides electric service to 355,000 customers and natural gas to 315,000 customers. Its service territory covers 30,000 square miles in eastern Washington, North Idaho and parts of southern and eastern Oregon.