UPDATE 1-Avista Q1 earnings up; misses Wall Street view

April 30 (Reuters) - Electricity and natural gas distributor Avista Corp (AVA.N) reported higher first-quarter earnings but missed market expectations, as it was hurt by lower-than-normal hydroelectric generation, and higher fuel and purchased costs.

The company reported net income of $25.2 million, or 47 cents a share, for the first quarter, compared with $14.1 million, or 26 cents a share, last year.

The improvement in utility earnings was primarily due to the Washington general rate increase implemented at the beginning of the year, Avista said in a statement.

Operating revenue rose 8 percent to $496.3 million.

Analysts on average were expecting earnings of 51 cents a share, on revenue of $453.6 million, according to Reuters Estimates.

The Spokane, Washington-based company said it still expects 2008 consolidated earnings to be $1.35 to $1.55 a share.

Analysts expect the company to earn $1.47 a share.

Shares of the company, which are down 12 percent in the last one year, closed at $20.68 Tuesday on the New York Stock Exchange. (Reporting by Hezron Selvi in Bangalore; Editing by Jarshad Kakkrakandy)