Green MT Power (NYSE:GMP)
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From May 2019 to May 2024
Green Mountain Power Corporation (NYSE: GMP) today
announced 2005 consolidated earnings from continuing operations of
$2.09 per share of common stock, diluted, compared with 2004
consolidated earnings from continuing operations of $2.10 per share of
common stock, diluted. The Company reported additional earnings of
$0.03 and $0.10 per share from discontinued operations in 2005 and
2004, respectively.
Increases in operating revenues in 2005 were offset by increases
in power supply expenses, other operating expenses, maintenance
expenses, depreciation and amortization, and transmission expenses,
causing earnings from continuing operations to be essentially
unchanged compared with 2004.
Retail operating revenues for 2005 increased by $9.6 million
compared with the same period in 2004, reflecting the 2005 effects of
a 1.9 percent retail rate increase, warmer summer weather, an increase
in the number of Company customers, and increased sales of utility
services to other utilities and large industrial and commercial
customers. These increases were partially offset by recognition in
2004 of $3 million in revenue deferred under our 2003 Rate Plan. Under
the Company's 2003 Rate Plan, approved by the Public Service Board in
December 2003, rates remained unchanged in 2004 and the Company put
into effect retail rate increases of 1.9 percent (generating
approximately $4 million in added annual revenues) in January 2005 and
0.9 percent (generating approximately $2 million in added annual
revenues) in January 2006, upon the submission of supporting cost of
service schedules. The last of these rate increases was implemented
effective January 1, 2006. The 2003 Rate Plan also allowed the Company
to carry unused deferred revenue totaling approximately $3 million to
2004 and to recognize this revenue to help to achieve its allowed rate
of return during 2004.
Total retail megawatt hour sales of electricity increased by 1.9
percent in 2005, compared with the same period in 2004. Sales to
residential and small commercial and industrial customers increased by
3.0 percent and 2.7 percent, respectively, while sales to large
commercial and industrial customers increased by 0.3 percent in 2005.
Revenues from the sale of utility services to other utilities and
large industrial and commercial customers increased by approximately
$4.3 million in 2005, compared with the prior year. Wholesale revenues
in 2005 also increased by $5.6 million compared with 2004, reflecting
substantially higher wholesale energy prices in 2005. Other operating
expenses increased by $5.5 million in 2005, reflecting an increase of
$4.3 million in utility services expense. The Company's utility
services business is designed to recover some of its administrative
and staffing costs from other parties, ultimately reducing costs to
customers and improving financial results between rate cases.
Power supply expenses increased $6.0 million in 2005 compared with
2004 due to increased costs of market purchases to serve marginal
load, increased purchases of power under the contract with
Hydro-Quebec, an increase in the cost of power under the power supply
contract with Morgan Stanley, and increased costs of transmission line
losses and congestion charges allocated within the New England power
pool by ISO New England, the regional system operator. Congestion
charges represent the cost of delivering energy to customers and
reflect energy prices, customer demand, and the availability of
transmission and generation resources. The Company paid an average
market price of approximately $95 per megawatt hour for system
purchases during hours when customer demand exceeded supply during
2005, compared to $57 per megawatt hour in the same period last year,
inclusive of the effects of congestion and line losses. Increased
hydro production and deliveries under long-term power supply contracts
with Hydro-Quebec and Vermont Yankee had a significant dampening
effect on the increase in power supply expenses the Company
experienced in 2005. "The average cost of our power supply resources
is substantially below current market prices," said Mr. Dutton. "We
are pleased that our customers have continued to enjoy significant
benefits under our long-term power supply contracts. Unfortunately as
these arrangements expire, they must be replaced with higher priced
energy resources. We will feel that effect when our contract with
Morgan Stanley expires at the end of 2006." The Company expects to
file a retail rate case requesting a rate increase estimated at
between ten and fifteen percent in 2006, effective for January 1,
2007.
Maintenance expenses, depreciation and amortization, and
transmission expenses also increased during 2005 compared with 2004.
Maintenance expenses increased by $1.5 million, reflecting an increase
in transmission and distribution line maintenance and maintenance of
our gas turbines. Depreciation and amortization were $1.1 million
higher than in the previous year, reflecting increased plant
investments and a $539,000 increase in amortization of regulatory
assets. Transmission expenses increased by $797,000 during 2005,
compared with the prior year, as a result of an increase in charges
allocated for system support in New England by ISO New England,
increased retail sales of energy and an increase in investments by
Vermont Electric Power Company (VELCO), the entity that owns and
operates most of the transmission grid in Vermont. The Company owns
approximately 30 percent of VELCO.
Earnings on discontinued operations for 2005 and 2004 consisted
primarily of changes in operating reserves or tax valuation allowances
that are considered non-recurring.
In other developments, the Company's most recent customer service
survey indicated an overall satisfaction rate of 94 percent with
contacts with the Company. "There is nothing more fundamental to
achieving success than providing superior customer service," said Mary
Powell, Chief Operating Officer. "We made efforts to improve service
in a variety of ways this year, including increasing expenditures on
line maintenance to shorten outages for customers when severe storms
strike, increasing funding for our power partners program to help
low-income customers, and expanded deployment of new automated meter
reading equipment to reduce estimated readings. We look forward to
further improvements in the coming year."
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Annual Earnings Summary
Green Mountain Power Corporation At and for the
in thousands except per share amounts Years Ended December 31,
2005 2004 2003
Retail revenues $217,562 $207,922 $201,569
Wholesale revenues 28,298 22,652 78,901
Total operating revenues $245,860 $230,574 $280,470
Net income $11,180 $11,584 $10,404
Net income applicable to common stock 11,180 11,584 10,404
Net income-continuing operations 11,046 11,059 10,325
Net income-discontinued operations 134 525 79
Basic earnings per share-
continuing operations $2.12 $2.18 $2.08
Basic earnings per share-
discontinued operations 0.03 0.10 0.01
Basic earnings per common share $2.15 $2.28 $2.09
Diluted earnings per share-
continuing operations $2.09 $2.10 $2.01
Diluted earnings per share-
discontinued operations 0.03 0.10 0.01
Fully diluted earnings per
common share $2.12 $2.20 $2.02
Dividends declared per share $1.00 $0.88 $0.76
Weighted average shares of common
stock outstanding-Basic 5,195 5,083 4,980
Weighted average shares of common
stock outstanding-Diluted 5,285 5,254 5,140
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Certain statements in this press release may be forward-looking in
nature, or "forward-looking" statements as defined in the United
States Securities Litigation Reform Act of 1995. Actual results may
differ from those expressed or implied in forward-looking statements.
The forward-looking statement contained in this press release are
subject to a number of factors and uncertainties, including regulatory
and judicial decisions or legislation, changes in regional market and
transmission rules, energy supply and demand and pricing, contractual
commitments, availability, terms and use of capital, general economic
and business environment, changes in technology, nuclear and
environmental issues, industry restructuring and cost recovery
(including stranded costs, and weather), and other factors and
uncertainties disclosed from time to time in our filings with the
Securities and Exchange Commission. Any forward-looking statements in
this press release should be evaluated in light of these important
factors and uncertainties. The Company disclaims any obligation to
update any information in this press release.
For further information, please contact Dorothy Schnure, Manager
of Corporate Communications, at 802-655-8418 or Robert Griffin, Vice
President, Chief Financial Officer and Treasurer, at 802-655-8452.