Weak hydrology set back Idacorp’s earnings last year as costs increased and more call was put on thermal purchases, but the US energy group sees 2008 with potential better operating conditions as it starts with a good snow pack.
Last year, hydro generation was down by a third to 6,200GWh compared to 2006 but was within the revised estimate range given mid-year.
Net income dropped just over 23% to US$82.3M in the 12 months but the relative fall was greater in the last quarter – down 43% to US$10.3M.
Difficulties were seen early in 2007 as the year had started with a poor snow pack. During the year retail demand also increased due to the warm, dry weather. After the second quarter the company had noted that it was experiencing ‘vastly different’ water conditions compared to the same period in 2006.
The continued weak hydrology over the rest of the year ended the period with lower off system sales and higher purchase power and fuel expenses.
Looking ahead, Idacorp noted that mid-February hydrological survey findings from the Snake River basin show snow pack levels at 8% greater than average. The US Weather Service’s Northwest River Forecast Center expects higher – almost double – inflow to Brownlee reservoir over April-July compared to the same period last year, but Idacorp noted that this would still be less approximately 16% less than the 30-year average stream flow.