Central Vermont Public Service --CV-- Announces Sale of Vermont Yankee and Second Quarter Earnings.Business Editors RUTLAND Rutland, county, England Rutland, county (1991 pop. 32,400), 152 sq mi (394 sq km), central England. Rutland has a rolling terrain and is a rural upland area largely devoted to tillage and pasturage. , Vt.--(BUSINESS WIRE)--Aug. 8, 2002 Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. Nuclear Power Corporation completed the sale of its assets to Entergy Entergy Corporation NYSE: ETR is an integrated energy company engaged primarily in electric power productions and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the Nuclear Vermont Yankee on July July: see month. 31, 2002. "The sale will save CV customers at least $82 million over the remaining 10 years of the plant's operating license and will reduce their exposure to the financial risks of decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
For the second quarter of 2002, CV (NYSE NYSE See: New York Stock Exchange :CV) reported net income of $4.0 million, or $.31 per basic and $.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of common stock, compared to net income of $0.3 million, or a loss of $.01 per basic and diluted share of common stock, for the second quarter of 2001. For the six months ended June June: see month. 30, 2002 CV had net income of $8.8 million, or $.68 per basic and $.67 per diluted share of common stock, compared to net income of $4.2 million, or $.29 per basic and diluted share of common stock, for the first six months of 2001. Higher second quarter 2002 earnings compared to the same period in 2001 resulted from the following factors: -- higher retail sales revenue and other operating revenue of $2.0 million after-tax, or $.17 per share of common stock, primarily resulting from higher average retail rates due to the June 26, 2001 rate order, which allowed for a 3.95% increase in retail rates beginning July 1, 2001, offset by a .77% (8,896 mWh) decrease in retail mWh sales mostly due to milder winter weather in 2002; -- higher net power costs of $1.8 million after-tax, or $.15 per share of common stock, primarily related to a 2001 reversal of a December 2000 accrual for estimated costs for installed capacity deficiency charges in ISO-New England with no similar reversal in 2002 and higher output from more costly Independent Power Producers, offset by lower purchased installed capacity costs; -- lower operating and other costs of $0.6 million after-tax, or $.05 per share of common stock, primarily related to the following after-tax items: a $1.0 million, or $.09 per share of common stock, reversal of certain environmental reserves, lower storm restoration costs of $0.6 million, or $.05 per share of common stock, higher transmission costs of $0.7 million, or $.06 per share of common stock, and a $0.4 million, or $.04 per share of common stock, increase in bad debt reserves due to several announced bankruptcies; -- higher earnings at Catamount Energy Corporation of $0.4 million, or $.03 per share of common stock, primarily related to lower equity losses on its current equity investments, higher equity earnings on Appomattox, partially offset by higher project development costs; -- higher losses at Eversant Corporation of $0.2 million, or $.01 per share of common stock, primarily related to the Company's decision to discontinue Eversant's efforts to pursue non-regulated business opportunities, partially offset by the settlement of an IRS audit resulting in a reversal of an IRS interest expense accrual previously recorded in the fourth quarter of 2001; and -- the Company's June 26, 2001 rate order, which resulted in a net after-tax charge of $3.6 million, or $.31 per share of common stock, due to a one-time write-off of $5.3 million after-tax, or $.46 per share of common stock, of certain regulatory assets, partially offset by the elimination of charges for the under recovery of costs related to the Hydro-Quebec power contract, which resulted in a favorable $1.7 million after-tax impact, or $.15 per share of common stock, with no similar items in 2002. Higher first six months 2002 earnings compared to the same period last year resulted primarily from the following factors: -- higher retail sales revenue and other operating revenue of $2.0 million after-tax, or $.17 per share of common stock, primarily resulting from higher average retail rates due to the June 26, 2001 rate order, which allowed for a 3.95% increase in retail rates beginning July 1, 2001, offset by a .77% (8,896 mWh) decrease in retail mWh sales mostly due to milder winter weather in 2002; -- higher net power costs of $1.8 million after-tax, or $.15 per share of common stock, primarily related to a 2001 reversal of a December 2000 accrual for estimated costs for installed capacity deficiency charges in ISO-New England with no similar reversal in 2002 and higher output from more costly Independent Power Producers, offset by lower purchased installed capacity costs; -- lower operating and other costs of $0.6 million after-tax, or $.05 per share of common stock, primarily related to the following after-tax items: a $1.0 million, or $.09 per share of common stock, reversal of certain environmental reserves, lower storm restoration costs of $0.6 million, or $.05 per share of common stock, higher transmission costs of $0.7 million, or $.06 per share of common stock, and a $0.4 million, or $.04 per share of common stock, increase in bad debt reserves due to several announced bankruptcies; -- higher earnings at Catamount Energy Corporation of $0.4 million, or $.03 per share of common stock, primarily related to lower equity losses on its current equity investments, higher equity earnings on Appomattox, partially offset by higher project development costs; -- higher losses at Eversant Corporation of $0.2 million, or $.01 per share of common stock, primarily related to the Company's decision to discontinue Eversant's efforts to pursue non-regulated business opportunities, partially offset by the settlement of an IRS audit resulting in a reversal of an IRS interest expense accrual previously recorded in the fourth quarter of 2001; and -- the Company's June 26, 2001 rate order, which resulted in a net after-tax charge of $3.6 million, or $.31 per share of common stock, due to a one-time write-off of $5.3 million after-tax, or $.46 per share of common stock, of certain regulatory assets, partially offset by the elimination of charges for the under recovery of costs related to the Hydro-Quebec power contract, which resulted in a favorable $1.7 million after-tax impact, or $.15 per share of common stock, with no similar items in 2002. For the twelve months ended June 30, 2002, CV had net income of $6.9 million, or $.46 per basic and $.45 per diluted share of common stock, compared to net income of $14.0 million, or $1.07 per basic and $1.05 per diluted share of common stock, for the twelve months ended June 30, 2001. Lower earnings for the twelve months ended June 30, 2002 compared to the same period ended June 30, 2001 was mostly due to an asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge in the fourth quarter of 2001 related to four of Catamount catamount: see puma. Energy Corporation's investments, partially offset by nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". in the second quarter of 2001 related to the Company's June 26, 2001 rate order. A listing of items affecting the twelve months ended is outlined in the enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. table. In 2001, Catamount, CV's non-regulated subsidiary, repositioned its asset portfolio in order to focus its efforts on developing, owning and operating wind energy projects in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). . For the twelve months ended June 30, 2002, return on average common equity for the Vermont utility business was 9.9 percent, while consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: return on average common equity was 2.8 percent. Net cash flow provided by operating activities was $16.8 million for the first six months of 2002 versus $8.1 million for the comparable 2001 period. CV is Vermont's largest electric utility, serving over 143,000 customers statewide. Through its subsidiary, Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). Valley Electric Company, CV also serves over 10,000 customers in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). . Catamount Energy Corporation, CV's non-regulated subsidiary, invests primarily in wind energy projects in the United States and Western Europe. Statements contained in this report that are not historical fact are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. intended to qualify for the safe-harbors from the liability established by the Private Securities Reform Act of 1995. Statements made that are not historical facts are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and, accordingly, involve estimates, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward looking statements. Actual results will depend, among other things, upon the actions of regulators, the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. at the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability involving Central Vermont and Connecticut Valley, the performance of the Vermont Yankee nuclear power plant Vermont Yankee is a boiling water reactor (BWR) type nuclear power plant currently owned by Entergy Nuclear. It is located in the town of Vernon, Vermont and generates 640 megawatts (MWe) of electricity. The plant began commercial operations in 1972. , weather conditions, and the performance of the Company's non-regulated businesses. The Company cannot predict the outcome of any of these matters. The financial information for the related periods is shown below:
Central Vermont Public Service Corporation - Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended
June 30
2002 2001
Central Vermont Public Service
Corporation - Consolidated:
Retail MWH Sales 538,458 539,325
Operating Revenues $71,903 $73,882
Net Income $3,975 $326 (a,b)
Preferred Stock Dividend Requirements $403 $424
Earnings (losses) available
for common stock $3,572 $(98) (a,b)
Average shares of common
stock outstanding - basic 11,662,096 11,546,937
Average shares of common
stock outstanding - diluted 11,921,435 11,546,937
Earnings per share of
common stock - basic $.31 $(.01) (a,b)
Earnings per share of
common stock - diluted $.30 $(.01) (a,b)
Net cash (used) provided by
operating activities $1,893 $(1,998)
Catamount Energy Corporation:
Earnings per basic and diluted
share of common stock $.04 $.01
Eversant Corporation:
Earnings (losses) per basic and
diluted share of common stock $.02 $(.01)
(a) Includes a $3.6 million after-tax loss related to CV's June 2001
approved rate order which required, in part, a $5.3 million
after-tax, or $.46 per share, write off of regulatory assets, and
also ended the Hydro-Quebec power cost disallowances resulting in
a $1.7 million after-tax, or $.15 per share, reversal of accrual
for under recovery of power costs in the 2nd quarter of 2001
(b) Includes a $1.5 million after-tax, or $.13 per share, reversal of
a December 2000 accrual for estimated power costs for installed
capacity deficiency charges in ISO-New England.
Central Vermont Public Service Corporation - Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Six Months Ended
June 30
2002 2001
Central Vermont Public Service
Corporation - Consolidated:
Retail MWH Sales 1,151,967 1,160,863
Operating Revenues $148,378 $151,914
Net Income $8,760 $4,223 (a,b)
Preferred Stock Dividend Requirements $807 $848
Earnings available for common stock $7,953 $3,375 (a,b)
Average shares of common
stock outstanding - basic 11,642,217 11,538,961
Average shares of common
stock outstanding - diluted 11,894,594 11,538,961
Earnings per share of
common stock - basic $.68 $.29 (a,b)
Earnings per share of
common stock - diluted $.67 $.29 (a,b)
Net cash provided by
operating activities $16,808 $8,077
Catamount Energy Corporation:
Earnings per basic and
diluted share of common stock $.08 $.05
Eversant Corporation:
Losses per basic and diluted
share of common stock $(.03) $(.02)
(a) Includes a $3.6 million after-tax loss related to CV's June 2001
approved rate order which required, in part, a $5.3 million
after-tax, or $.46 per share, write off of regulatory assets, and
also ended the Hydro-Quebec power cost disallowances resulting in
a $1.7 million after-tax, or $.15 per share, reversal of accrual
for under recovery of power costs in the 2nd quarter of 2001.
(b) Includes a $1.5 million after-tax, or $.13 per share, reversal of
a December 2000 accrual for estimated power costs for installed
capacity deficiency charges in ISO-New England.
Central Vermont Public Service Corporation - Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Twelve Months Ended
June 30
2002 2001
Central Vermont Public Service
Corporation - Consolidated:
Retail MWH Sales 2,315,203 2,343,572
Operating Revenues $298,940 $312,024
Net Income before
extraordinary charge $7,415 (a) $14,033 (c,d,e)
Extraordinary charge 182 (b) --
Net Income $6,943 (a,b) $14,033 (c,d,e)
Preferred Stock Dividend
Requirements $1,655 $1,738
Earnings available for
common stock $5,288 (a,b) $12,295 (c,d,e)
Average shares of common
stock outstanding - basic 11,602,246 11,521,760
Average shares of common
stock outstanding - diluted 11,853,813 11,705,811
Earnings per share of
common stock - basic:
Before extraordinary charge $.48 (a) $1.07 (c,d,e)
Extraordinary charge $.02 (b) --
Earnings per share of
common stock $.46 (a,b) $1.05 (c,d,e)
Earnings per share of
common stock - diluted:
Before extraordinary charge $.47 (a) $1.07 (c,d,e)
Extraordinary charge $.02 (b) --
Earnings per share of
common stock $.45 (a,b) $1.07 (c,d,e)
Net cash provided by
operating activities $38,948 $34,626
Catamount Energy Corporation:
(Losses) earnings per basic
and diluted share of
common stock $(.72) (a) $.08
Eversant Corporation:
Losses per basic and diluted
share of common stock $(.19) $(.02)
(a) Includes $9.8 million after-tax, or $.85 per share, asset
impairment charges related to four of Catamounts investments as a
result of writing down two assets held for sale to estimated
sales value and issues concerning the future viability of two
other operating projects and equity losses from Fibrothetford.
(b) Includes an extraordinary charge of $0.2 million, or $.02 per
share, resulting from the application of Statement of
Accounting Standards No. 71, Accounting for the Effects of
Certain Types of Regulation, at Connecticut Valley.
(c) Includes a $3.6 million after-tax loss related to CV's June 2001
approved rate order which required, in part, a $5.3 million
after-tax, or $.46 per share, write off of regulatory assets, and
also ended the Hydro-Quebec power cost disallowances resulting in
a $1.7 million after-tax, or $.15 per share, reversal of accrual
for under recovery of power costs in the 2nd quarter of 2001.
(d) Includes nonrecurring gains of $3.2 million after-tax, or $.28
per share, from the Millstone Unit #3 settlement and $1.7 million
after-tax, or $.14 per share from reversal of Connecticut Valley
provision for rate refund.
(e) Includes reversal of accruals for Connecticut Valley power costs
previously booked in the 4th quarter of 1999, totaling $0.4
million after-tax, or $.04 per share.
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