Avista reports lower 3Q earnings, cites Hydro One merger costs
Acquisition costs related to Avista Corp.’s proposed purchase by Hydro One of Ontario led to lower third-quarter earnings, officials at the Spokane-based utility said Wednesday.
Avista reported net income of $4.5 million, or 7 cents per share, during the third quarter. The results compared to $12.2 million, or 19 cents per share, during the third quarter of 2016.
Hydro One and Avista anticipate finalizing the $5.3 billion sale during the second half of 2018. The all-cash purchase includes the assumption of Avista’s $1.9 billion debt.
Avista incurred a number of costs associated with the deal during the third quarter, said Scott Morris, Avista’s chairman and CEO. The utility has filed applications with state regulators who must approve the sale. Avista also sent out proxy statements in advance of a Nov. 21 shareholder vote on the deal.
Morris said the third-quarter decrease in earnings was partially offset by lower power costs, rate increases in Idaho and Oregon and customer growth.
Avista revised its 2017 earnings guidance to a range of $1.75 to $1.90 per share.