Avista announces third quarter income

SPOKANE — Avista Corp. reported net income of $12.3 million, or 22 cents per diluted share, for the third quarter of 2010.

That’s up from the $8.1 million, or 15 cents per diluted share, it earned for the same quarter last year.

“We had a strong third quarter, and we are on track to meet our consolidated guidance for 2010. Our annual earnings will be limited by a challenging first quarter due to one of the warmest January to March periods on record. However, this has been mostly offset by lower power supply costs and the continued management of our operating expenses,” said Avista Chairman, President and Chief Executive Officer Scott L. Morris in a press release.

The year is going well, too.

For the nine months ended Sept. 30, Avista Corp.’s net income attributable $66.7 million, or $1.20 per diluted share, compared to $65 million, or $1.18 per diluted share, for the nine months ended Sept. 30, 2009.

In September, Avista filed a natural gas general rate case in Oregon. Effective Oct. 1, new electric and natural gas rates went into effect in Idaho with the approval of our general rate case settlement by the Idaho Public Utilities Commission.

In August, it reached a settlement in the Washington general rate case. If approved by the Washington Utilities and Transportation Commission, new rates would become effective Dec. 1.

“We believe that both settlements provide a fair and reasonable outcome for customers and shareholders,” Morris said.

He said while Avista expects a return to normal weather conditions and it will see the impact of general rate increases, these are still challenging times for the Spokane-based company.

“Our earnings growth will be limited by weak economic conditions, continued delay in the recovery of our costs and increased operating and maintenance expenses,” Morris said.