A mild winter in the USA has dented power company earnings for the first quarter. The financial results show a weakening compared with twelve months ago at utilities in the Northeast, South and Midwest.
In the Midwest, for example, the Cincinnati-based Cinergy Corp reported a 19 per cent drop in earnings compared to last year. Revenue fell from $3.73 billion to $2.20 billion. The company said that the weather resulted in a 10 per cent drop in heating-degree days. This was coupled with a sluggish economic recovery which cut demand from residential customers.
Utility holding company Energy Corp and power generator AES Corp both reported net losses for the quarter while natural gas distributor KeySpan Corp reported low profits. Nonetheless some analysts are expecting a revival in sales.