Central Vermont reports second quarter earnings
RUTLAND - Central Vermont Public Service (NYSE: CV) has reported consolidated second quarter earnings of
$3.5 million, or 27 cents per basic and diluted share of common stock. This compares to second quarter
2003 earnings of $5.1 million, or 40 cents per basic and diluted share of common stock.
For the first six months of 2004, CV reported earnings of $13.9 million, or $1.10 per basic and $1.09 per diluted
share of common stock, a $3.8 million increase from a year ago. Earnings for the first six months of 2003 totaled
$10.1 million, or 80 cents per basic and 79 cents per diluted share of common stock.
On Jan. 1, 2004, subsidiary Connecticut Valley Electric Company ("CVEC") completed the sale of substantially
all of its plant assets and franchise. In the second quarter of 2003, when the sale became probable, CVEC's
operations were required to be presented in the financial statements as discontinued operations. Net income from
discontinued operations for the first six months of 2004 amounted to $12.3 million, reflecting a gain, net of tax, of
$12.3 million, or $1.02 per basic and $1.01 per diluted share of common stock. Second quarter 2004 net income
from discontinued operations amounted to 1 cent per basic and diluted share of common stock. This compares to
2003 net income from discontinued operations of 2 cents and 6 cents per basic and diluted share of common stock
for the second quarter and first six months.
For accounting purposes, components of the CVEC transaction are recorded in both continuing and discontinued
operations in the consolidated income statement. In addition to the gain on the asset sale, described above, CV
recorded a loss on power costs, net of tax, of $8.4 million relating to termination of the power contract between
CV and CVEC. When the two accounting transactions are combined to assess the total impact of the sale, the
result is a favorable net impact of $3.9 million, or 32 cents per basic and diluted share of common stock.
Quarterly Performance Summary
Utility Business - Continuing Operations
Operating revenues decreased $6 million, pre-tax, in the second quarter of 2004 compared to the same period
in 2003, primarily due to the following factors:
" The Jan. 1, 2004 termination of the power contract with CVEC decreased revenue by $2.4 million.
" Resale sales decreased $4.3 million primarily due to fewer mWh available for resale. The volume
decrease resulted from second quarter 2004 scheduled nuclear plant outages at Vermont Yankee and
Millstone Unit #3, and a 19-day unscheduled outage at Vermont Yankee beginning June 18, partially
offset by additional mWh available for resale due to the termination of the power contract with CVEC.
" Retail and firm sales increased $0.5 million due to increased sales volume, and other operating revenues
increased $0.2 million.
Purchased power expense decreased $3.1 million, pre-tax, in the second quarter of 2004 compared to the same
period in 2003 as a result of the following factors:
" Power purchases primarily under long-term contracts decreased $8.8 million, due to a scheduled outage at
Vermont Yankee in April 2004 and a 19-day unscheduled outage at Vermont Yankee beginning June 18
due to a transformer fire at the plant, and lower deliveries under the Hydro-Quebec contract.