Citing a strong contribution from its utility operations, Avista Corp. last Friday reported increased fourth quarter and full-year earnings for 2005 — $25.4 million, or 52 cents/diluted share, for the fourth quarter, compared to $22.6 million, or 46 cents/diluted share, for the same period in 2004, and $45.2 million, or 92 cents/diluted share, for the full year, compared with $35.2 million, or 72 cents/diluted share, in 2004.

Avista CEO Gary Ely characterized the utility operations in three states (Washington, Oregon and Idaho) as “strong.” The results were down on a quarter-over-quarter basis ($16.8 million net income in the fourth quarter last year, compared with $19.8 million for the same period in 2004), but up year-to-year with $52.5 million for the full year in 2005, compared to $32.5 million the full previous year). Increased operating costs, aside from higher fuel costs, cut into fourth quarter earnings, according to an Avista spokesperson.

“We are pleased with the strong performance of Avista Utilities and Avista Advantage [unregulated programs], and we are expecting continued improvement in our consolidated results for 2006 as compared to 2005,” Ely said. “Our utility operation continues to move closer to earning its allowed rates of return.”

General rate increases were in effect for all of 2005 in the states of Washington and Idaho, and during the fourth quarter last year, natural gas rate increases of 23.5%, 23.8% and 22.5% were implemented in all three states where it operates gas distribution utility businesses. Last Dec. 21, the Washington Utilities and Transportation Commission approved Avista’s combined electric and natural gas general rate settlement agreement with certain conditions, which were subsequently accepted by the settling parties, the company said.

“Avista Energy continued to produce positive results on the electric side of its business in 2005, including trading, marketing and managing the output and availability of combustion turbines and hydroelectric assets owned by others,” the Avista spokesperson said. “However, the results for 2005 decreased as compared to 2004, and for the fourth quarter of 2005, the electric side of the business had a slight loss primarily due to unfavorable price movements.”

Nevertheless, Ely stressed that Avista management is expecting the merchant segment to “have a profitable year in 2006.”

©Copyright 2006Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.