Reduced

Avista Corp., rocked by early cold weather and increased loads that reduced profit within its utilities division, now expects to report better-than-expected earnings for the fourth quarter, driven by its non-regulated energy trading arm, Avista Energy. The Spokane, WA-based company’s consolidated fourth quarter diluted earnings will exceed $.50 per share, based on results form the first two months of the quarter. The earnings would be well above the consensus figure of $.09, with earnings ranging between $.05 and $.17, according to seven analysts surveyed by First Call/Thomson Financial. The improved performance by the energy arm offset predicted losses within Avista Utilities, which “continues to be affected by cold weather that has increased loads.” The increased loads have led to higher purchased power costs that are not currently being recovered from customers or included in power cost deferrals. Ironically, Avista’s second quarter earnings, reported in June, were driven down by Avista Energy because of what the company called errors in its wholesale trading decisions made a few months earlier (see NGI, June 26). However, company officials predicted then that the energy arm would recover and lead the way toward better economic health for the entire company by the end of this year. Despite its comeback, there has been fallout within the company, with CEO Tom Matthews resigning in early November. Also last month, a federal investigation was launched into the trading practices of the company. Federal investigators have begun looking into possible energy futures trading rule violations that may have occurred two years ago at a Houston subsidiary.

Avista Corp., rocked by early cold weather and increased loadsthat reduced profit within its utilities division, now expects toreport better-than-expected earnings for the fourth quarter, drivenby its non-regulated energy trading arm, Avista Energy.

As cooler-than-normal temperatures statewide reduced peak-powerdemand to winter levels, California last week was awash in proposedsolutions to its electricity price and supply problems, which arelikely to be much more severe next summer.

The Department of Transportation’s Office of Pipeline Safety(OPS) yesterday gave El Paso Natural Gas the go-ahead to restoreservice to its Line 1110 from Keystone Station through the PecosRiver Compressor Station in southeast New Mexico at restrictedlevels.

PG&E Gas Transmission-Northwest removed the A unit atStation 12 (Bend, OR) from service due to a bleed valve failure.Capacity through the station was reduced to 1,890 MMcf/d Wednesday,affecting downstream deliveries. However, repairs were completedthe same day and capacity will return to 1,910 MMcf/d today.

Florida Gas Transmission has reduced the Maximum AllowableOperating Pressure (MAOP) of its 22-inch mainline downstream ofStation 4. As a result, capacity through Station 4 will drop to 160MMcf/d effective today. The pressure cut is in response to a linebreak last month near Station 4 (see Daily GPI, d20000623j.html”>June23), a spokesman said. FGT still had an Overage Alert Day noticeissued last Wednesday (see Daily GPI, July13) in effect Monday until further notice.

The odds of Congress passing electric restructuring legislationduring this session were reduced to next to nothing as the HouseCommerce Committee — which has been beset by infighting —postponed the long-awaited mark-up that was scheduled for lastweek. The committee could give “no firm date” for when it would berescheduled.

The odds of Congress passing electricity restructuringlegislation in this session were reduced to next to nothing as theHouse Commerce Committee—which has been beset by infighting—postponed the long-awaited mark-up that was scheduled for today.

Due to nomination increases exceeding available capacity reducedby a lost engine at Station 315, Tennessee bumped flowingInterruptible services (IT-X, IT, AOT, PAT, Payback, EDS/ERS) andrestricted nominated services through Secondary (IT-X, IT, AOT,PAT, Payback, EDS/ERS, Secondary) for meters downstream of MLV 314on the 300 line effective 1700 for yesterday’s gas day.