United States

United States


The author comments on the truth of the information about Kenetech's net income stated in a Windpower Monthly article (Vol 11(1):34). He claims third quarter net income would indeed have been positive had the company's legal settlement with PG&E been omitted.xxxxMaurice E. Miller, Chief Financial Officer, KenetechCorporation, San Francisco, California

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Your article, Law Settlement Resulted in a Profit Report Reveals (Windpower Monthly, January 1995) was factually in error. The specific terms of Kenetech's settlement with Pacific Gas & Electric are confidential. The company has stated publicly, however, that net income for the third quarter would have been positive absent its settlement with PG&E. This fact could have been easily determined if you had carefully reviewed the company's published quarterly results (10-Q) or made the minimal effort of consulting any of the securities analysts who track Kenetech. The remaining statements you make regarding the contribution of the settlement to earnings, other than the quote from the 10-Q that "net income was substantially increased by the settlement," are equally in error. We would appreciate a correction of these errors and, in advance, thank you for more diligence in the future on Kenetech financial matters.

Editor's note: As our detailed report indicates, we have studied the 10-Q with care. Securities analysts referred to us by Kenetech did not respond to requests for interviews.

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