Avista Corp. (AVA) Tops Q4 EPS by 5c

Avista Corp. (NYSE: AVA) reported Q4 EPS of $0.62, $0.05 better than the analyst estimate of $0.57.

GUIDANCE:

Avista Corp. sees FY2017 EPS of $1.80-$2.00.

"We had a great year in 2016. We saw increased earnings at Avista Utilities compared to 2015 due to increased electric and natural gas gross margin, which was partially offset by increased operating expenses, depreciation and interest expense. Our strong operational performance in 2016 resulted in continued reliable service for our customers and high customer satisfaction ratings. We also continued making capital investments in our utility infrastructure, which we view as critical for the safety and reliability of our system and to meet the needs of our customers into the future. In addition, we strengthened our commitment to our communities through further development of innovative technologies in our service area," said Scott Morris, chairman, president and chief executive officer of Avista Corp.

"As we look to 2017, our earnings will be challenged due to the rate order we received in December from the Commission in Washington, which denied our requests for increased electric and natural gas rates. We were surprised and very disappointed in this order, and as a response we have filed a petition for reconsideration and alternately for rehearing of our 2016 general rate cases. The Commission has indicated it expects to enter an order no later than March 16, 2017 resolving our petition.

"If we are not successful in obtaining rates that are fair to both customers and the company, we expect the current order will result in significant regulatory timing lag, which was reduced in recent years through regulatory orders that provided for the timely recovery of costs. We believe we should continue investing the necessary capital to maintain a safe and reliable system and focus on managing our operating expenses. The Commission did not disallow any of our capital projects, and we believe the costs associated with these projects will be recovered in future cases.

"Alaska Electric Light and Power Company (AEL&P) had another successful year and exceeded its earnings target for the year. An interim rate increase went into effect in November and a permanent rate increase, if approved, could take effect no later than February 2018.

"We are initiating our 2017 earnings guidance with a consolidated range of $1.80 to $2.00 per diluted share. The Washington rate order negatively impacted our 2017 earnings guidance in the range of $0.20 to $0.30 per diluted share. However, I believe we are still well-positioned to continue our long-term earnings growth of 4 percent to 5 percent," Morris said.

For earnings history and earnings-related data on Avista Corp. (AVA) click here.

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