TORONTO, May 9, 2013 /CNW/ - Hydro One Inc. today released its 2013
first quarter results with net income for the quarter of $257 million
and revenues of $1,572 million.
"We are proud to have entered into an agreement to acquire Norfolk Power
Inc. Hydro One will continue to approach the acquisition of local
distribution companies on a commercial, willing buyer/willing seller
basis," said Carmine Marcello, President and CEO, Hydro One Inc. "Hydro
One demonstrated that it has the ability and focus to deliver value to
the ratepayers of Ontario by leveraging its local knowledge and
experience and by being willing to build strong and lasting
The following are some of our key achievements in the quarter:
We participated in a competitive process to acquire Norfolk Power Inc.
(Norfolk Power) and were selected by Norfolk County as the successful
bidder. We have been a safe and reliable electricity supplier to
approximately 14,000 Norfolk County customers for decades and are
excited about the opportunity to extend our service to the entire
County with the addition of Norfolk Power's 18,000 distribution
customers. Norfolk County identified our commitment to the community,
its employees and local economic development as major reasons for our
Our crews and Ontario Grid Control Centre worked quickly and safely to
restore power to over 48,000 customers during a January storm in which
high winds and heavy snowfall downed trees and power lines, causing
power outages throughout Eastern Ontario. In mid-April, our crews
worked tirelessly again to restore power to over 150,000 customers
after freezing rain and high winds caused widespread damage to our
distribution system. This was one of the worst storms experienced over
We announced a new partnership with Ryerson University, University of
Ontario Institute of Technology, the University of Waterloo and Western
University to increase enrolment and career opportunities for female
students pursuing Science, Technology, Engineering and Mathematics.
Currently just over ten per cent of all electrical engineers in the
province of Ontario are women. By leveraging the expertise and
leadership of each of the partner Universities and of our company, the
goal is to increase the number of female engineering students and
graduates over the next four years.
On March 23, during Earth Hour, our customers contributed to the overall
reduction of 448 MW in Ontario, demonstrating a commitment to reducing
electricity consumption through provincial and local programs on an
Net income of $257 million was higher for the first quarter by $47
million, or 22%, than our comparable 2012 results. Higher revenues
reflect higher distribution revenues resulting from increased purchased
power costs, primarily due to higher demand for electricity, and higher
energy consumption, due to a colder winter experienced this year.
Higher monthly peak demands resulted in higher transmission revenues.
Our net income was also positively impacted by lower operation,
maintenance and administration expense primarily as a result of a
reduction to our provision for transmission station property taxes
following the finalization of the assessment of certain years' returns.
These impacts were slightly offset by higher depreciation expense
resulting from our placement of new assets in service, consistent with
our increased capital work program and increased financing charges
reflecting lower interest capitalized on construction in progress.
Capital expenditures in the first quarter of $270 million were lower
than the same period last year by $47 million. 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. This
reduction was partially offset by increased sustainment expenditures to
refurbish and replace end-of-life equipment within our transmission
system. Overall, capital expenditures within our Distribution Business
were lower than last year, including those related to our Advanced
Distribution Solution Project, as we successfully completed the
deployment of the Distribution Management System within the pilot area
Total first quarter revenues of $1,572 million were $104 million, or 7%,
higher than the same period last year. Our transmission revenues were
$373 million, $12 million higher than last year primarily due to a
higher average monthly Ontario 60-minute peak demand experienced during
the period. Our distribution revenues were $1,184 million in the
quarter, $93 million higher than those of the comparative period. This
increase primarily reflects recovery of higher purchased power costs
and higher energy consumption resulting from the colder weather in the
first three months of this year.
Net cash from operating activities was $142 million in the first quarter
of 2013. During the quarter, we paid dividends to the Province of
Ontario of $129 million and recorded a provision for payments in lieu
of corporate income taxes to the Ontario Electricity Financial
Corporation in the amount of $35 million.
CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS
Three months ended March 31
(Canadian dollars in millions,
except as otherwise noted)
Net cash from operating activities
Average Ontario 60-minute peak demand (MW)1
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 First Quarter Consolidated Financial Statements
and Management's Discussion and Analysis can be accessed through the
SOURCE: Hydro One Inc.
For further information:
Director, Corporate Communications
Ali R. Suleman
Vice President and Treasurer
Hydro One Investor Relations