profit for the 1st quarter. And I read some wher ethey want to increase rates to boot. Now about that $300.00 tax break I get. Gee with the natural gas and eletric I could go for near 2 months at peak periods. Anyone else see the point I am trying to make here?
Is this happening in your area?
Westar profit doubles on tax break:
CJOnline - Westar profit doubles on tax break
By Michael Hooper
The Capital-Journal
Published Friday, May 9, 2008 at 8:58 a.m. CDT
Westar Energy's profit in the first quarter doubled, partly because of a large federal income tax benefit, the company said this morning.
The company earned $60.9 million, or 63 cents per share, for the first quarter 2008, compared with earnings of $29.9 million, or 34 cents per share, for the first quarter 2007.
The increase in quarterly earnings was primarily the result of a $39.4 million, or 40 cents per share, net earnings benefit from the completion of a federal income tax audit covering multiple years.
Setting aside the net earnings benefit of the completed tax audit, first quarter 2008 earnings were $21.5 million, or 23 cents per share. Earnings per share also reflect an additional 10.3 million shares issued since the first quarter 2007 to fund the company's growth plan.
"Earnings in the first quarter 2008 were consistent with our expectations," said Bill Moore, Westar Energy president and chief executive officer. "We expected earnings in the quarter apart from the tax benefit to be down compared to last year, largely because of capital investments we have made to serve customers that are not yet reflected in our prices. Earnings per share were also affected by the additional equity we have issued to fund our growth plan. As planned, we intend to file a rate case later this month and request an increase in our prices to recognize these capital investments and equity additions."
The company reported first quarter 2008 revenues of $406.8 million, $36.5 million higher than first quarter 2007 revenues of $370.3 million. Retail sales increased $15.2 million, or 6 percent, due primarily to increased recovery in rates of fuel and purchased power costs and higher customer demand due to normal growth in the retail customer base and colder weather. Wholesale sales increased $18.4 million, or 22 percent, due principally to sales made pursuant to a long-term wholesale sale agreement entered into in April 2007.
Total operating expenses increased $52.7 million, due principally to higher fuel and purchased power expense and higher operating and maintenance expense. Fuel and purchased power expense increased $43 million, or 42 percent, due principally to planned maintenance outages at two of the company's lower cost base load generating units. As a result, a larger portion of the power required to serve customers was generated at the company's higher cost natural gas-fired facilities and purchased from others.
Stock in Westar Energy (NYSE: WR) was down 47 cents to $22.95 per share in early trading. In the past year, the stock has traded between $21.75 and $28.35 per share.
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Reader Comments
+ 4 Rating Posted by: heidis at May 09, 2008 at 10:52:52 AM
They got tax breaks (mind you I have not had one!) and made record profits, and now they want to up our rates.
Is this guy Wettig's brother?!
I'd rather give welfare to a crackhead than support corporate welfare!
Posted by: truthfinder at May 09, 2008 at 11:16:46 AM
I want my stimulus refund doubled and for Westar to pay for it!
+ 3 Rating Posted by: shesalady at May 09, 2008 at 11:27:13 AM
OK, let me get this straight: so now I can expect smaller electric bills?