Dynegy, IdaCorp project higher third quarter

Energy marketing is expected to boost earnings at Dynegy Inc. and IdaCorp Inc., the companies reported Monday. DTE Energy Co. said it expects third quarter earnings to be between 75-85�/share, including merger-related costs with MCN Energy Group Inc., for the third quarter ending Sept. 30.

Dynegy was trading down 2.23%, DTE was off .38%, and IdaCorp was up .90% in the early afternoon.

Dynegy, Houston, said it expects to report third quarter 2000 recurring earnings of 55�/share, compared to the First Call consensus estimate of 50�/share. Reported earnings/share is expected to be 73�, including a one-time gain. The company said the quarterly report is expected to include a substantial one-time pretax gain associated with the disposition of its equity interest in Accord Energy Ltd., a UK gas marketing joint venture in which Dynegy has held a nonoperating interest.

Dynegy's expected recurring third quarter 2000 net income of about $175 million is expected to exceed by approximately 80% the Dynegy-Illinova pro forma third quarter 1999 net income of $96.5 million, the company said.

Noting the financial contribution by Dynegy Marketing and Trade is expected to nearly triple, despite record mild temperatures experienced in the Midwest and Northeast during the peak summer months , Dynegy also attributed its performance to successfully implementing its convergence strategy. It said European operations are expected to incur a quarterly loss, resulting from reduced liquidity in the commodity markets, the deferment of the New Electricity Trading Arrangements (NETA) in the UK, and startup costs associated with the company's European expansion.

IdaCorp. reported it expects third quarter earnings to be at least 50% greater than last year's 59�/share, primarily due to strong results from its energy marketing activities. IdaCorp. CEO Jan Packwood said the company's energy merchant group is expected drive third quarter earnings to a new record.

In a news release, DTE Energy said due to the fuel clause suspension included in Michigan's restructuring legislation, the company expects the distribution of yearly earnings will shift significantly. The fuel clause is a rate adjustment mechanism that allowed its utility Detroit Edison to recover through rates its fuel and fuel-related electric expenses. This regulatory mechanism was suspended June 5.

The company reported projected third quarter earnings will be hurt out-of-market purchase power contracts and cooler-than- normal weather in the Midwest. Due to restructuring legislation, DTE said, Detroit Edison's losses on purchased power contracts are no longer recouped by the fuel clause mechanism, and these losses are expected to put slight pressure on third quarter results. Offsetting some of the pressure from the out-of-market options are continued gains in DTE Energy's nonregulated earnings, the company said. DTE projected earnings of $3.40-3.45/share for the full year 2000.