Northwest Natural Gas Company, dba NW Natural (NYSE:NWN), reported net income for the second quarter of 2011 of $2.2 million or 8 cents per share. These results include an after-tax charge of $4.4 million (17 cents per share) related to the repeal of utility tax legislation in Oregon. Last year, the company reported net income of $6.9 million or 26 cents per share, including after tax income of $0.6 million or 2 cents per share related to repealed utility tax legislation.
For the six-months ended June 30, 2011, net income was $43.0 million or $1.61 per share, which compares to $50.5 million or $1.90 per share for the same period in 2010. Both periods include the effects of repealed utility tax legislation in Oregon. Included in the six month period of 2011 was a charge of $4.4 million after-tax or 17 cents per share, compared to income of $2.3 million after-tax or 9 cents per share in 2010, from the utility tax legislation. Results for 2010 also include the previously disclosed net refund of property taxes received in the first quarter of 2010 of $6.1 million or 14 cents per share.
Oregon utilities tax legislation enacted in quarter
On May 24, 2011, Governor Kitzhaber of Oregon signed Senate Bill 967 (SB 967) into law to repeal existing statutes from Senate Bill 408 (SB 408), which became law in 2005. SB 408 imposed on certain utilities in Oregon an annual regulatory adjustment for income taxes paid. SB 967 repealed the adjustment for income taxes retroactive to the beginning of 2010. As a result, NW Natural recorded a one-time charge of $7.4 million in the second quarter of 2011 ($4.4 million after tax or 17 cents per share) related to the repeal of SB 408 for 2010. For the three- and six-month results ended June 30, 2011, the company did not record any amount related to the SB 408 rule because of the uncertainty surrounding its repeal and the ability to collect amounts in future years based on the legislative events mentioned above.
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