Lower power prices mean less profit for Allegheny Energy

Thu. October 29, 2009; Posted: 03:42 PM

Oct 29, 2009 (The Pittsburgh Tribune-Review - McClatchy-Tribune Information Services via COMTEX) -- AYE | Quote | Chart | News | PowerRating -- Electric utility Allegheny Energy Inc. this morning reported its third-quarter profit fell to about $77 million from the same quarter a year ago, the result of lower power prices and reduced power generation.

For the three months ended Sept. 30, the Greensburg-based energy company reported profit of $77.4 million, or 45 cents a share, down 13.2 percent from $89.2 million, or 52 cents a share in the year-earlier quarter.

Revenues for the quarter fell 6.6 percent, to $793.7 million, from $849.6 million, Allegheny Energy said.

The company reported that excluding $19.3 million of interest expense related to a debt offering, and pre-tax losses of $18.3 million, adjusted profit for the quarter actually rose 9.5 percent, to $100.1 million from $91.4 million in the quarter one year earlier.

"Adjusted earnings grew in the third quarter due to improved results in the regulated delivery and transmission business," Allegheny Energy CEO Paul J. Evanson said, in a statement. "However, the weak economy and low power prices reduced earnings in our generation business."

Power delivery profit skyrocketed nearly 633 percent in the quarter, to $31.5 million from $4.3 million during the third quarter of 2008. But generation profit, the business segment on which Allegheny Energy relies for most of its business, fell 46.3 percent, to $45.5 million from $84.7 million one year earlier.

Rick Stouffer can be reached via e-mail or at 412-320-7853.

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For full details on Allegheny Energy Inc (AYE) click here. Allegheny Energy Inc (AYE) has Short Term PowerRatings of 5. Details on Allegheny Energy Inc (AYE) Short Term PowerRatings is available at This Link.

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