Central Vermont Public Service Issues 2011 Earnings Guidance and Announces Date for Release of 2010 Earnings Results
February 02 2011 - 8:58AM
Marketwired
Central Vermont Public Service (NYSE: CV) issued 2011 earnings
guidance today, stating that for the year, the company anticipates
earnings in the range of $1.60 to $1.75 per diluted share of common
stock. The earnings range reflects an approved retail rate increase
of 7.46 percent effective Jan. 1, 2011 and an allowed rate of
return of 9.18 percent in 2011, down from 9.59 percent in 2010.
"Earnings in 2011 will be affected by a lower allowed return on
equity, which, according to our Alternative Regulation Plan, is a
function of the year-over-year change in Treasury yields," said
CVPS Chief Financial Officer Pamela Keefe. "However, the quarterly
power and transmission cost adjustment and annual earnings sharing
mechanism within our Alternative Regulation Plan should keep us
within this range. We will also see the full-year effect of the
1,498,745 shares we issued in 2010."
On December 29, 2010, the Vermont Public Service Board (PSB)
approved the Company's base rate filing under the current
Alternative Regulation Plan but did not rule on the Memorandum of
Understanding (MOU) between the Company and the Vermont Department
of Public Service. That MOU calls for an allowed ROE of 9.59
percent for 2011, and a rate increase of 7.67 percent instead of
the 7.46 percent increase that is now in effect. If the PSB
approves the MOU, we may update our earnings guidance to reflect
the changes in return and rates.
"We remain focused on solid customer care, service quality and
reliability, which we believe are critical to our performance for
shareholders as well as customers," President and CEO Bob Young
said. "By providing a good value to our customers, we believe we
will continue to provide and create value for our investors."
CVPS will release its 2010 year-end earnings results before the
market opens on Tuesday, March 15. Young and Keefe will host an
earnings conference call at 11 a.m. EDT on Wednesday, March 16. At
that time, they will discuss the company's financial results, as
well as progress made toward achieving its long-term strategy.
Interested parties may listen to the conference call live on the
Internet by selecting the "CVPS Year-End 2010 Earnings Call" link
on the investor relations section of the company's website at
www.cvps.com. The dial-in number is: (Toll Free) 877-407-9205 or
(International) 201-689-8054. An audio archive of the call will be
available at approximately 3:00 p.m. EDT at the same location or by
dialing (Toll Free) 877-660-6853 or (International) 201-612-7415
and entering Account #: 286 and Conference ID #: 365459
CVPS is Vermont's largest electric utility, serving
approximately 159,000 customers statewide. CVPS'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 press release that are not historical fact are
forward-looking statements intended to qualify for the safe-harbors
from the liability established by 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 upon,
among other things, 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.
Investor Relations Contact: Pamela Keefe (802) 747-5435
Media Contact: Steve Costello (802) 747-5427 (802) 742-3062
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