Northeast Utilities (NU), New England’s largest utility system, expects to lose between $20 million and $30 million in the last six months of this year because of marketing losses. On Tuesday, the Berlin, CT-based utility company revised downward its 2002 earnings guidance. NU lost nearly $31 million in the first six months of the year and expects to earn between $1.10 and $1.30 per share for the entire year, well below guidance it issued in July of $1.40-$1.65, not including non-recurring items. Wall Street expected 2002 earnings to average $1.30 a share.

The revised estimate includes expected gains of 23 cents per share, resulting from the sale of NU’s 40% interest in the Seabrook nuclear power plant, and previously announced first-quarter 2002 write-offs of 8 cents a share. The write-offs are primarily associated with NU’s investment in NEON Communications Inc. Also on Tuesday, the NU board of trustees declared a regular common dividend of 13.75 cents a share, payable Dec. 31, 2002, to shareholders of record as of Dec. 1, 2002.

NU CEO Michael G. Morris attributed the lowered earnings range to “continuing losses at NU’s competitive energy businesses,” which include Select Energy Inc., its energy marketing subsidiary. Morris said the subsidiary “continues to be negatively affected by difficult market conditions caused by increased volatility in energy prices.” Select Energy also was “impacted by the failure to secure regulatory approval for higher prices on its supply contract with The Connecticut Light and Power Co., NU’s largest regulated subsidiary.”

To a lesser extent, Morris said, “earnings per share are being reduced by lower than projected share repurchases. NU has repurchased approximately 2 million shares in 2002 under a board authorization that expires June 30, 2003. The current earnings range primarily reflects the company’s uncertainty over the result of certain pending regulatory dockets.” NU serves more than 1.8 million electric customers in Connecticut, New Hampshire and Massachusetts, as well as 190,000 natural gas customers in Connecticut. It will release third-quarter 2002 results on Oct. 21, and plans to offer guidance for 2003 at that time.

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