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El Paso Electric Q4 net income $1.2 million

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Staff writer ▼ | February 25, 2014
El Paso Electric announced fourth quarter and annual financial results. Retail non-fuel base revenues decreased $2.5 million, pre-tax, or 2.2% in the fourth quarter of 2013 compared to the same period in 2012.
El Paso Electric
El Paso ElectricEl Paso Electric announced fourth quarter and annual financial results. Retail non-fuel base revenues decreased $2.5 million, pre-tax, or 2.2% in the fourth quarter of 2013 compared to the same period in 2012.


This reflects milder weather in October 2013 at the end of the summer cooling season which impacted sales to residential, small commercial, and to a lesser extent public authority customers. Cooling degree days decreased 51% for the fourth quarter of 2013 compared to the same quarter last year, while heating degree days increased 26.8% for the fourth quarter of 2013 compared to the same quarter last year.

For the fourth quarter of 2013, El Paso Electric Company reported net income of $1.2 million, or $0.03 basic and diluted earnings per share, respectively. In the fourth quarter of 2012, EE reported net income of $4.8 million, or $0.12 basic and diluted earnings per share.

For the twelve months ended December 31, 2013, the company reported net income of $88.6 million, or $2.20 basic and diluted earnings per share. Net income for the twelve months ended December 31, 2012 was $90.8 million, or $2.27 and $2.26 basic and diluted earnings per share, respectively.

Cooling degree days decreased by 50% in October 2013 as compared to October 2012 and were 27% below the 10-year average. The month of October is part of company's summer cooling season in which we charge higher base rates to residential and small commercial customers. Fourth quarter 2013 sales to public authorities and small commercial and industrial customers were also negatively impacted by the federal government sequestration and shutdown in October.

KWh sales to public authorities in the fourth quarter of 2013 decreased approximately 3.6% compared to the same quarter in 2012. KWh sales to small commercial and industrial customers in the fourth quarter of 2013 decreased 0.8% compared to the same quarter in 2012 despite a 1.6% increase in the average number of customers served. KWh sales decreased 2.1% from sales to large commercial and industrial customers and non-fuel base revenues decreased 4.8%.

KWh sales to residential customers increased by 1.0% due to a 1.2% increase in the average number of residential customers served. Non-fuel base revenues and kWh sales are provided by customer class on page 10 of this release.

For the twelve months ended December 31, 2013, retail non-fuel base revenues decreased $3.8 million, pre-tax, or 0.7% compared to the same period in 2012. The decrease in retail non-fuel base revenues was primarily due to decreased revenues from company's commercial and industrial customers which reflect the impact of the reduction in non-fuel base rates for company's Texas customers which became effective May 1, 2012.

Non-fuel base revenues from sales to small commercial and industrial customers and large commercial and industrial customers decreased 1.8% and 4.3%, respectively. Retail non-fuel base revenues from sales to public authorities decreased 1.1%. While the kWh sales to public authorities increased by 0.3% in 2013 compared to 2012, revenues from this customer class reflect the impacts of recently installed solar photovoltaic generation at Fort Bliss and White Sands Missile Range.

Additionally, 2013 revenues were negatively impacted by the federal government sequestration and shutdown in October 2013. KWh sales to small commercial and industrial customers decreased 0.7%. The decrease in retail non-fuel base revenues was partially offset by an increase of 1.1% in non-fuel base revenues from sales to residential customers reflecting a 1.2% increase in kWh sales to company's residential customer class.

The increase in kWh sales to company's residential customers reflects a 1.3% increase in the average number of residential customers served. Weather significantly impacts company's residential, small commercial, and to a lesser extent, company's sales to public authorities. We experienced less favorable weather during company's summer cooling season. Cooling degree days decreased 6.3% when compared to the same period last year but were higher than the 10-year average by 2.4%.

Heating degree days increased 20.8% over last year and were 8% higher than the 10-year average.


 

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