Central Vermont Lowers 2008 Earnings Estimate
January 22 2009 - 9:17AM
Marketwired
Central Vermont Public Service (NYSE: CV) has lowered its earnings
estimate for 2008 from a range of $1.50 to $1.60 per share to a
range of $1.28 to $1.38 per share. The revised range reflects the
unanticipated, record-breaking service restoration efforts related
to the ice storm that hit the New England region in mid December.
The company is consulting with its regulators regarding its ability
to defer a portion of the extraordinary costs under its Alternative
Regulation plan. If those costs are deferred for future recovery,
2008 earnings could rise to a range of $1.45 to $1.55 per share.
The company cannot predict the outcome of this matter at this time.
"The December ice storm did unprecedented damage to significant
portions of our electrical system in rugged, rural sections of
Southern Vermont," said CV President and CEO Bob Young. "The
restoration effort will go down in history as the most expensive
we've seen, even exceeding the so-called Nor'icane of 2007. Our
rates include a five-year average of storm restoration costs, but
given the magnitude of the ice storm, that average will not fully
cover our current costs, hence the revised earnings estimate."
Young said bills for the ice storm restoration continue to come
in, but the company estimated costs at $5.3 million. By comparison,
costs related to the 2007 Nor'icane totaled $4.3 million.
CV plans to communicate its estimate for 2009 earnings in the
first quarter of 2009.
About CV
CV is Vermont's largest electric utility, serving more than
159,000 customers statewide. CV's non-regulated subsidiary,
Catamount Resources Corporation, sells and rents electric water
heaters through a subsidiary, SmartEnergy Water Heating
Services.
Forward-Looking Statements
Statements contained in this report that are not historical fact
are forward-looking statements within the meaning of the
safe-harbor provisions of the Private Securities Litigation Reform
Act of 1995. Statements made that are not historical facts are
forward-looking 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, performance of the Vermont Yankee
nuclear power plant, effects of and changes in weather and economic
conditions, volatility in wholesale electric markets and our
ability to maintain our current credit ratings. These and other
risk factors are detailed in CV's Securities and Exchange
Commission filings. CV cannot predict the outcome of any of these
matters; accordingly, there can be no assurance that such indicated
results will be realized. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as of
the date of this press release. CV does not undertake any
obligation to publicly release any revision to these
forward-looking statements to reflect events or circumstances after
the date of this press release.
Media Inquiries: Steve Costello Director of Public Affairs (802)
747-5427 e-mail: Email Contact (802) 742-3062 (pager) Contact:
Pamela Keefe Vice President Chief Financial Officer and Treasurer
(802) 747-5435 e-mail: Email Contact
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