Central Vermont Public Service 1Q earnings grow 4 percent

RUTLAND, Vt. - Central Vermont Public Service Corp. said Friday that first-quarter earnings grew nearly 4 percent as the electric utility's resale revenue offset a slight decline in retail revenue.

First-quarter earnings rose to $5.9 million, or 56 cents per share, from $5.6 million, or 55 cents per share, in the prior year.

Operating revenue grew 5 percent to $91.2 million from $86.7 million in the first quarter of 2007.

Central Vermont's revenue was boosted by a 41 percent increase in resale revenue, which the company attributed to excess power available for resale and higher average prices.

Retail revenue, on the other hand, dipped to $75.4 million, from $75.5 million, as declining sales volumes offset a rate increase in February.

Central Vermont's other operating revenue also jumped 50 percent to $2.3 million on the sale of transmission rights.

Equity in earnings from affiliates increased $2.5 million due to the company's $53 million investment in Vermont Transco LLC in December 2007. Vermont Transco owns the state's high-voltage electric transmission system.

Operating expenses rose 5 percent to $84.8 million, including a $2.2 million increase in transmission expense.

"We continue to make progress on improving our financial metrics while providing among the lowest rates in the region," said Central Vermont President Bob Young.

Central Vermont shares dropped $1.08, or 4.6 percent, to $22.35 in afternoon trading, after hitting a 52-week low of $21.65 earlier in the session.

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