Aug 9, 2013
TORONTO, Aug. 9, 2013 /CNW/ - Hydro One Inc. today released its 2013 second quarter results with net income for the quarter of $168 million and revenues of $1,403 million.
"In the wake of the Toronto flood, which disrupted power flow to the western Greater Toronto Area, power was restored to 90% of customers within the first 12 hours," said Carmine Marcello, President and CEO, Hydro One Inc. "Our crews, in conjunction with the Province, the City of Toronto, and Toronto Hydro, worked around the clock to restore power and then stabilize the system."
The following are some of our key achievements:
Net income was $168 million for the second quarter and $425 million for the first six months of 2013, $1 million, or 1%, lower than our comparable 2012 net income in the quarter and $46 million, or 12%, higher in the first six months. We experienced higher distribution revenues mainly reflecting increased purchased power costs, primarily related to the Ontario Energy Board's regulated price plan rate-setting process and the Independent Electricity System Operator's spot market. Our net income was also positively impacted by lower operation, maintenance and administration expense primarily resulting from a reduction to our provision for payments in lieu of transmission station property taxes in the first quarter following the finalization of the assessment of certain prior years' property tax returns.
Capital expenditures of $621 million for the first six months of 2013 were lower by $46 million, or 7%, compared to 2012. We experienced lower expenditures on our transmission development projects, mainly related to our Bruce to Milton Transmission Reinforcement Project to connect refurbished nuclear and new wind generation sources in the Huron-Grey-Bruce area, which went into service in May 2012. We completed our Commerce Way Transformer Station, earlier this year, contributing to lower expenditures compared to 2012. Within our Distribution Business, increases in year-over-year expenditures were primarily attributable to capital replacements due to storm restoration work following several storms in the first half of the year, our wood pole replacement program to improve overall system reliability and the completion of the Customer Information System phase of our entity-wide information system replacement and improvement project, which was successfully placed into service in May, 2013.
Total revenues for the first six months of $2,975 million were $148 million, or 5%, higher than the same period last year. Our distribution revenues were $2,204 million, $139 million higher than last year, primarily reflecting the recovery of higher purchased power costs. Higher energy consumption resulting from the colder weather in the first quarter also contributed to the increase. Transmission revenues of $741 million were $10 million higher than last year primarily reflecting export service revenues and other ancillary services associated with the December 20, 2012 transmission rate decision. The revenue requirement approved for 2013 resulted in no change to rates for the transmission portion of the customer bill compared to previous 2012 OEB-approved rate levels.
Net cash from operating activities was $333 million in the second quarter of 2013. During the quarter, we paid dividends to the Province of Ontario of $30 million and recorded a provision for payments in lieu of corporate income taxes due to the Ontario Electricity Financial Corporation in the amount of $11 million.
CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS
|Three months ended June 30||Six months ended June 30|
(Canadian dollars in millions,
except as otherwise noted)
|Net cash from operating activities||333||217||116||53||475||454||21||5|
Average Ontario 60-minute peak
Distribution - units distributed to
our customers (TWh)1
|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 Inc.'s 2013 Second Quarter Consolidated Financial Statements and Management's Discussion and Analysis can be accessed through the following link:
SOURCE Hydro One Inc.
For further information:
Director, Corporate Communications
Ali R. Suleman
Vice President and Treasurer
Hydro One Investor Relations