PGE's profits, sales fall short in first quarter

Portland General Electric Co.’s first quarter income fell nearly 15 percent as the weak economy and warmer weather led to lower energy consumption.

The Portland-based electric utility (NYSE: POR) on Tuesday reported first quarter earnings of $27 million, or 36 cents per share, compared to $31 million, or 47 cents per share, in the same period last year.

Revenue fell 7 percent to $449 million.

The company’s first quarter performance fell short of analysts estimates. Analysts polled by Thomson Reuters anticipated earnings of 40 cents per share on nearly $486 million in revenue.

While PGE increased its customer base by 2,100, residential energy deliveries fell 13 percent because of the third-warmest first quarter on record. Deliveries to commercial and industrial customers fell 5 percent, which PGE attributed to the weak economy.

The company’s power costs fell 6 percent in the first quarter, driven largely by an 11 percent drop in the average cost of natural gas-fired power. But that was offset by a 17 percent drop in energy from hydro-electric resources, which are expected to remain below normal throughout 2010.

PGE reaffirmed its 2010 earnings guidance of $1.30 to $1.45 per share.

The company’s shares were up by 1 cent in mid-morning trading to $20.41. Shares have traded between $16.88 and $21.39 in the past 52 weeks.