Quiet 1st quarter earnings season for electric utilities

The electric utility 1st quarter reporting season is essentially over.  Historically, most electric utilities have the largest portion of their annual earnings (and the variability of annual earnings) in the summer months, which generally show up in 3rd quarter earnings, and have relatively quiet 1st and 2nd quarter earnings reports.

The reason?  Electric utilities' regulated and uregulated POWER related businesses are heavily reliant on the increased demand (and sometimes premium pricing) that comes with the hot summer months. 

Many utilities adjust their annual earnings guidance only after the summer months' weather patterns are known, or at the beginning of the calendar year after budget plans have been approved by their Boards of Directors.

2005's 1st quarter earnings reports did not vary from this pattern.  There were a few electric utilities that did provide updated earnigs guidance, but most utilities reaffirmed previously announced guidance for 2005 EPS prospects.

The following is a list of revisions, and representative re-affirmations, of guidance, with all earnings number provided given in $$ per share (earnings per share):

Downward Revisions:

FPL Group (FPL):  $2.45-$2.55, down from $2.50-$2.60

Avista (AVA): $0.95-$1.05, down from $1.20-$1.35

Alliant (LNT): $1.40-$1.65, down from $1.70-$1.95

IDA Corp (IDA):  No specific earnings guidance is generally provided, but the company inferred lowered earnings is likely in 2005 sue to poor hydro-electric conditions, partially offset by lower tax rate due to lower pre-tax income

Progress Energy (PGN):  Guidance was actually lowerd in early March of 2005

Upward Revisions:

OGE Energy (OGE):  $1.65-$1.75, up from $1.50-$1.60

Edison International (EIX):  No specific number given versus existing guidance of $2.14 for 2005, but upward earnings were implied, by perhaps as much as $0.25-$0.30 from their breakdown of business drivers.

Re-Affirmed Guidance (representative list, not comprehensive):

AES Corp (AES): $0.76

Ameren (AEE): $2.90-$3.10

Cinergy (CIN): $2.70-$2.85 -- before the merger announcement with DUK

CLECO (CNL): $1.35-$1.40

Constellation Energy (CEG): $3.35-$3.60

DPL Inc. (DPL): $0.95-$1.05 -- but that excludes earnings per share gains that might come in 2005 from additional debt reduction and share repurchases

Dominion Resources (D):  $5.00-$5.25

DTE Energy (DTE): $3.30-$3.60

Duke Energy (DUK): $1.60 -- but that is the management incentive compensation target more than an earning guidance for investors, and does not include any costs or benefits from its since announced merger with CIN

Entergy (ETR): $4.60-$4.85 -- but guided to the LOW end of the range

Exelon (EXC): $2.90-$3.10

Nisource (NI): $1.47-$1.53

Northeast Utilities (NU): $1.22-$1.30

NStar (NST): $3.60-$3.75

PPL Corp (PPL): $3.80-$4.20

Puget Energy (PSD): $1.30-$1.40

TECO Energy (TE): $0.95-$1.05

Westar Energy (WR): $1.50-$1.60

Xcel Energy (XEL): $1.18-$1.28