With its merger with Portland General Electric proceeding through state and federal approval processes, Northwest Natural announced Friday it has reduced previously announced fourth quarter earnings by $2.7 million, or 6 cents/share, due to a resolution of a 10-year-old lawsuit by one of its large commercial customers that went against the Portland, OR-based natural gas distribution utility.

Earnings for the quarter ended Dec. 31, 2001 are now set at $23.8 million, or 93 cents/share, compared with $20.4 million, or 80 cents/share for the same period in 2000. In a Feb. 7 announcement, Northwest Natural had reported net earnings of $25.4 million, or 99 cents/share for last year’s fourth quarter.

The company reported that Chase Gardens Inc., a now defunct rose-growing commercial business, had the Oregon Supreme Court reverse an earlier appeals court decision that favored the utility, and upheld Chase Gardens’ claim of breach of contract against the gas utility. The court reversal came later on Feb. 7, the day the utility made its fourth quarter earnings announcement.

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