Income nosedives at Northeast Utilities
Berlin-based Northeast Utilities reported a drop in net income to $72.7 million in Q4 2007 from $346.9 million in the fourth quarter of 2006.
The company's fully diluted earnings per share fell to $0.47 from $2.24 during the same time period. NU, operator of New England's largest energy delivery system, reported a slight decrease in total operating expenses for Q4 2007 to $1.1 billion from $1.4 billion at the same time in 2006.
Connecticut Light & Power, a subsidiary of NU, also reported a drop in income for the fourth quarter to $17.1 million and $61.4 million for the full year 2007, from $33.4 million in the fourth quarter of 2006 and $147.6 million for the full year 2006.
The lower full year results in 2007 reflect the absence of a $74.0 million income tax expense reduction. The lower fourth quarter results in 2007 were in part due to a $7.7 million after-tax benefit CL&P received in 2006 related to the sale of NU's competitive generation assets. Lower fourth quarter 2007 results were also due to the absence of a procurement fee that expired at the end of 2006 and higher operating and interest expenses, partially offset by higher distribution rates and higher sales.
However, earnings were up for Yankee Gas, also a subsidiary of NU, which earned $12.1 million in the fourth quarter of 2007 and $22.6 million for the full year of 2007, compared with earnings of $5.5 million in the fourth quarter of 2006 and $11.9 million for the full year of 2006. Yankee Gas benefited from higher firm sales and distribution rates and the completion of the LNG facility.
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