Aug 11, 2011
TORONTO, Aug. 11, 2011 /CNW/ - Hydro One Inc. today released its 2011 second quarter results with net income for the quarter of $142 million and revenues of $1,268 million.
"Our Company has performed well in the face of major storms, extreme heat and forest fires this year," said Laura Formusa, President and CEO, Hydro One Inc. "Our employees worked efficiently and tirelessly to safely restore power as quickly as possible to more than 300,000 customers affected by storms in late April and early June, as well as forest fires in July. We continue to deliver the high standard of emergency response our customers depend upon in these challenging situations."
The following are some of our key achievements in the quarter:
Net income of $142 million in the second quarter and $354 million year-to-date was higher by $37 million, or 35%, and by $80 million, or 29%, respectively, compared to 2010 results. Higher net income reflected OEB rate decisions that allowed for the recovery of assets from prior years which are now in service and a higher rate of return for the electricity industry, based on the OEB's standard formula. New assets in service include new investments to address our aging critical infrastructure and the supply mix objectives for generation, including off-coal initiatives, and the initiation of investments in support of the Green Energy Act. The rate decisions support the maintenance and investment requirements of the distribution system, including those to enable the safe and reliable delivery of electricity to our customers throughout Ontario and those to support renewable distributed generation. A smarter grid for distribution will further facilitate investment in renewable sources of power generation which provide clean energy sources, reducing reliance on carbon-based fuels.
Capital expenditures of $640 million for the first six months were lower by $65 million, or 9%, compared to the previous year. Capital expenditures on our transmission system were lower by $43 million, or 11%, compared to last year. This reduction was attributable to lower expenditures to expand our transmission system resulting from last year's substantial completion of a number of multi-year inter-area network and local area supply projects. We continue to invest in a number of significant on-going inter-area network upgrade projects to facilitate new generation. Expenditures to sustain our existing transmission system were also lower than last year. Capital expenditures within our Distribution Business were lower by $22 million, or 7%, compared to last year, mainly due to the reduction in smart meter installations year-over-year. In 2011, we continued to invest in our smart meter network infrastructure, the development and integration of systems required for Time-of-Use billing and the initiation of our Smart Grid Project that will enhance our operations and support distributed generation.
Total revenues for the six-month period were $2,728 million, which were $244 million, or 10%, higher than the same period last year. Our transmission revenues were $688 million, $62 million higher than last year primarily due to the OEB-approved transmission tariff rate increases that were effective January 1, 2011 combined with increased revenues resulting from higher average monthly Ontario 60-minute peak demand experienced in the first quarter of the year. Our distribution revenues were $2,008 million, $183 million higher than the comparative period. This increase reflects the recovery of higher purchased power costs of $109 million and the impact of the OEB rate decisions that were effective on May 1, 2010 and on January 1, 2011.
Net cash from operating activities was $334 million in the second quarter of 2011. During the quarter, we paid dividends to the Province of Ontario and recorded a provision for payments in lieu of corporate income taxes payable to the Ontario Electricity Financial Corporation in the amounts of $42 million and $27 million, respectively.
CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS
Three months ended
Six months ended
|(Canadian dollars in millions)||2011||2010||
|Net cash from operations||334||257||77||30||574||544||30||6|
|Average Ontario 60-minute peak demand (MW)1||20,519||20,610||(91)||-||21,138||20,772||366||2|
|Distribution - units distributed to customers (TWh)1||6.5||6.4||0.1||2||14.8||14.4||0.4||3|
1 System-related statistics are preliminary
Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution and telecom businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of the largest transmission and distribution systems in North America. Hydro One Inc. is wholly owned by the Province of Ontario.
Hydro One's 2011 Second Quarter Consolidated Financial Statements and Management's Discussion and Analysis can be accessed through the following link:
For further information:
| Daffyd Roderick |
Director, Corporate Communications
| Ali R. Suleman |
Vice President and Treasurer
| Hydro One Investor Relations |