Dive Brief:
- Wisconsin Energy Corp., parent company of utility We Energies, reported earnings of $133 million for Q2 2014, up from $119 million for the same period last year.
- Electric sales were up 3% to $1.04 billion for Q2, compared to $1.01 billion for the same period in 2013. The industrial sector, led by large manufacturing companies, accounted for much of the demand growth, with the customer class posting a 2.1% growth in sales.
- Looking ahead, the utility warned that Q3 earnings would be lower than the same period last year on lower-than-expected summer demand.
Dive Insight:
Belying the company's sales growth this quarter are a slump in residential sales, which are down 3.8% on the quarter, and the effects of a cool summer.
"We have had a very cool summer," said J. Patrick Keyes, the company's chief financial officer. "As many of you know we typically see our largest cooling demand during the warm summer days of July." But as the region has only seen cooler summers four times in the last five decades, air conditioners have seen less use, driving down demand.
Wisconsin Energy could see a small boost from a recent Federal Energy Regulatory Commission ruling that the utility's Michigan customers and the mining industry should pay a higher rate for power from the Presque Isle coal-fired power plant.
Wisconsin Energy also announced it would file its application with state regulators to acquire Integrys Energy Group — a proposed $9.1 billion deal that has already seen Wisconsin Energy fork out $5.1 million in expenses. The merger is expected to be complete by the end of 2015.