Avista Corp. of Spokane, WA, its first-quarter earnings pershare could fall as much as 15 cents per share below securitiesanalysts’ current consensus first quarter estimate of 49 cents pershare. However, CEO T.M. Matthews said the company is stillcomfortable with analyst expectations of earnings for the year ofbetween $1.55-$1.65 per share

Matthews said Avista Energy, the company’s national energytrading and marketing affiliate, suffered reductions in the valueof future positions. Weak energy markets nationwide and lowervolatility within those markets resulted in the lack ofopportunities to arbitrage trading positions in the first quarter.Matthews noted Avista Energy results reflect mark-to-marketaccounting, which requires the company to value its entireportfolio based on current prices at month end. Because AvistaEnergy marks its portfolio to fair market value on a daily basis,earnings variability results.

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