Dive Brief:
- Colder weather overall drove Wisconsin Energy earnings higher in 2014, but a mild winter in the latter half of the year was responsible for lower fourth quarter returns.
- The company reported net income of $121.4 million or 53 cents per share for the fourth quarter of 2014, compared with $144.3 million the year before.
- Net income for the full year 2014 totaled $588.3 million or $2.59 a share, compared with $577.4 million in 2013.
Dive Insight:
Costs related to the acquisition of Integrys Energy reduced earnings by 3 cents a share in the fourth quarter, but ultimately the acquisition will be a significant driver of returns, according to We Energies CEO Gale Klappa.
"We believe that the combination of our two companies will create the premier regulated utility system in the Midwest, with superior service and competitive pricing for years to come," he said. Excluding the impact of the acquisition, adjusted earnings for the fourth quarter of 2014 were 56 cents a share.
The company said major factors contributing to the year’s strong performance include colder winter temperatures that drove record demand for natural gas, effective overall cost controls, as well as lower medical and benefit costs.
Residential use of electricity in 2014 was down by 2.4%, the result of cool summer weather. Consumption of electricity by small commercial and industrial customers dropped by 0.4% also.
But electricity deliveries to large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, rose by 0.9% the company said.