Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 21, 1990 TAG: 9007210067
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: Staff report
DATELINE: LENGTH: Medium
The utility reported second-quarter net earnings total of $13.7 million, less than half of the $28.1 million reported a year ago.
Apco said its customers' significantly higher demands for electricity, purchased from its parent American Electric Power Co., resulted in greater fixed charges, which in turn led in part to a 51.4 percent drop in income for the quarter.
As Apco's need for power increases, the company will continue to have a larger share of AEP generating capacity "although we may not use it all," said R.D. Carson, executive assistant to the president. The utility must be prepared for peak demand even if it does not occur, he said.
Another reason for the earnings decline of both Apco and American Electric Power was the impact of commercial operation of a new generating plant by a sister company in Rockport, Ind., according to W.S. White, AEP chairman. Unseasonably mild winter weather also was a factor, White said.
Apco's operating revenue for the quarter ending June 30 came to $339.7 million, up 8 percent from $314.5 million a year ago.
In the 12-month period ending June 30, Apco's net earnings totaled $116.7 million, down 18.1 percent from $142.5 million.
AEP's second-quarter income was $112.3 million, down 13.1 percent from $129.3 million. Its operating revenue in the period was $1.3 billion, up from $1.2 billion.
White said AEP's higher revenue reflects increased levels of less profitable sales to outside utilities.
In a separate report, Dominion Resources Inc., Richmond-based parent of Virginia Power, reported second quarter net income of $85.7 million, a sharp increase from $51.5 million a year ago. Revenue in the quarter dropped slightly, to $846.3 million this year compared with $850.8 million a year earlier.
The utility said the second quarter last year had the weakest earnings of any period in several years. Revenue and other income reached $846.3 million, down slightly from $850.8 million.
Lower operating expenses, completion of major nuclear maintenance under way last year and higher base rates effective May 1 helped raise Virginia Power earnings, the company said.
In the first half year, Dominion Resources earnings were $212.7 million on revenue of $1.7 billion, compared with net income of $144.6 million on revenues of $1.8 billion a year earlier.
by CNB