Shoreline's Utility-Stock.com

OGE increase 2005 earnings targets after 1Q earnings announcement

OGE is yet another utility that strives to balance its businesses between regulated and unregulated, between those businesses that are tied to unregulated commodity risks (and rewards) and those businesses that have greater revenue stability (but are more reliant on regulatory relationships).

OGE is representative of utilities that have benefited from the above balance in the most recent 1-2 years.  The company reported earnings on May4th, 2005, and

Avista (AVA) reduces earnings targets on unregulated results

AVA is representative of a tension investors are likely to continue to feel for the next several years: How do investors balance the risks and rewards of continued unregulated operations at utilities, versus the risks and rewards of regulated operations .. and the reliance on politicians for revenue increases balanced against the greater surety value of regulated revenues.

Avista Corp (AVA) reported 1Q EPS on April 27th, and showed that utilities continue to struggle to find the balance between producing results from their regulated and their unregulated businesses.