Westar 1Q Profit Down, Cuts Capital Spending

Not including one-time tax benefits, the company said it would have earned 10 cents per share. Analysts surveyed by Thomson Reuters expected earnings of 21 cents a share. They typically exclude one-time items from their estimates.

Revenue rose 3.7 percent to $422 million from $406.8 million a year ago and above analysts' expectations of $420 million.

The company said retail sales rose 8 percent, as higher prices offset a decline in volume. But wholesale energy sales fell 17 percent on lower prices and slightly higher sales.

Operating expenses were up 5 percent on higher costs for depreciation on new wind and natural gas-powered plants and additional pension expenses.

Westar also said Friday that the Federal Energy Regulatory Commission told the company Thursday that it had tentatively concluded that Westar had violated federal regulations and received $14.3 million in unjustified profits between July 2006 and February 2008.

The company said it didn't agree with the commission's total and is evaluating the agency's findings.