COLUMBUS, Ohio — American Electric Power's third-quarter profit rose 67 percent, the parent of Kentucky Power said Wednesday. The jump came thanks to a favorable court ruling in Texas and hot weather that boosted electricity demand.
The company reported net income of $928 million, or $1.93 a share, compared with $555 million, or $1.16 a share, in the same period a year ago. Revenue for the period rose to $4.3 billion from $4.1 billion.
Without the impact of the Texas Supreme Court decision, which allowed AEP to recover $425 million in costs, and other one-time items, AEP reported ongoing earnings of $566 million, or $1.17 a share, compared with $552 million, or $1.15 a share, during the third quarter of 2010.
That still topped most Wall Street expectations on earnings, though revenue fell short.
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AEP's stock rose 15 cents to close at $38.80 Wednesday.
"All in all, the third quarter in almost any way that we would measure it has been a success for us, and we feel very comfortable about that," said Michael Morris, chairman and CEO, addressing analysts on the conference call for his final time as CEO, after eight years. He is retiring from that position Nov. 11 but will remain chairman. AEP announced Tuesday that president Nicholas Akins would succeed Morris as CEO.
American Electric Power, based in Columbus, Ohio, serves 5.3 million customers in 11 states.