Green Mountain Power Reports Second Quarter Earnings

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Green Mountain Power Reports Second Quarter Earnings

Tue, 08/06/2002 - 8:00pm -- tim

Green Mountain Power Corporation (NYSE: GMP) announced consolidated earnings of $0.32 per share of common stock, diluted, for the second quarter of 2002 compared with earnings of $0.47 per share, diluted, for the same period in 2001. Year to date earnings for 2002 are $0.89 per share, diluted, compared to earnings of $0.98 per share, diluted, for year to date 2001 results.
“We are pleased with second quarter results, which exceeded our forecast for the period despite a slowing economy,” said Christopher L. Dutton, President and Chief Executive Officer.
The Vermont Public Service Board's January 2001 rate order allowed the Company to defer revenues of approximately $8.5 million, generated by leveling winter/summer rates during 2001, and to recognize those revenues during 2001 through 2003 to help the Company realize its allowed rate of return. During the second quarter of 2002, the Company recognized approximately $2.1 million of these deferred revenues.
Retail operating revenues increased by $2.7 million, or 5.9 percent in the second quarter of 2002, from the prior year. Total retail sales of electricity in the second quarter of 2002 decreased by 0.4 percent from the prior year with a decline in sales to our industrial customers being substantially offset by increased sales to higher margin commercial and residential customers.
Power supply costs were $600,000 higher in the second quarter of 2002, compared with the same quarter of 2001, reflecting increased costs under our power supply agreement with Morgan Stanley, capacity cost increases at the Vermont Yankee nuclear plant, and a reimbursement of approximately $1 million received in 2001 for power supply costs incurred during previous periods. The increases in power supply costs in the second quarter of 2002 were partially offset by a reduction in costs arising from decreased sales of electricity to wholesale customers.