Nov 14, 2013
TORONTO, Nov. 14, 2013 /CNW/ - Hydro One Inc. today released its 2013 third quarter results with net income for the quarter of $218 million and revenues of $1,542 million.
"We continue to make investments to provide our employees with the tools to help our customers by making prudent investments, improving customer service and being more efficient," said Carmine Marcello, President and CEO, Hydro One Inc. "Our recent recognition by SAP for our customer information system implementation shows our continued strategy to provide an advanced, scalable, enterprise-wide platform to move our business forward for the benefit of our customers."
The following are some of our key achievements:
Net income was $218 million for the third quarter and $643 million for the first nine months of 2013, $17 million, or 8%, higher than our comparable 2012 net income in the quarter and $63 million, or 11%, higher in the first nine 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. We also experienced increased transmission revenues reflecting a higher peak demand in both periods of the year due to intermittent periods of hot weather in the summer. Our net income was also positively impacted by a lower provision for payments in lieu of corporate income taxes and lower financing charges. Power restoration expenditures following major storms in April and July of this year contributed to increased operation, maintenance and administration expenditures in both periods. In the year-to-date period, increases in operation, maintenance and administration expenditures were partially offset by a reduction to our provision for payments in lieu of transmission station property taxes following the finalization of the assessment of certain prior years' property tax returns.
Capital investments of $979 million for the first nine months of 2013 were lower by $62 million, or 6%, 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 also completed our Commerce Way Transformer Station, earlier this year, contributing to lower expenditures compared to 2012. Within our Distribution Business, we experienced increased expenditures primarily related to storm restoration work, which were mostly offset by a reduction to our expenditures to expand and reinforce our distribution system as we completed a number of major projects last year.
Total revenues for the first nine months of $4,517 million were $224 million, or 5%, higher than the same period last year. Our distribution revenues were $3,308 million, $196 million higher than last year, primarily reflecting the recovery of higher pass-through purchased power costs. Higher energy consumption resulting mainly from the colder winter in the first quarter also contributed to the increase. Transmission revenues of $1,163 million were $29 million higher than last year, primarily reflecting export service revenues and other ancillary services associated with the Ontario Energy Board's December 20, 2012 transmission rate decision and higher peak demands on the transmission system compared to last year. The transmission revenue requirement approved for 2013 resulted in no change to rates for the transmission portion of the customer bill compared to previous levels.
Net cash from operating activities was $490 million in the third quarter of 2013. During the quarter, we paid dividends to the Province of Ontario of $29 million and recorded a provision for payments in lieu of corporate income taxes due to the Ontario Electricity Financial Corporation in the amount of $23 million.
CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS
|Three months ended September 30||Nine months ended September 30|
(Canadian dollars in millions,
except as otherwise noted)
|Net cash from operating activities||490||396||94||24||976||871||105||12|
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 Third 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