First six months of 2009: Hydro-Québec reports net income of $1,842 million



    MONTREAL, Aug. 14 /CNW Telbec/ - For the first six months of 2009, income
from continuing operations totaled $1,842 million, compared to $2,049 million
for the same period of 2008. The difference is mainly due to the recognition,
in June 2008, of a $129-million regulatory asset for revenue variances related
to weather conditions in 2006 and 2007, as well as to the business environment
in 2009.
    It may be recalled that a non-recurring gain of $121 million related to
the price adjustment provided for in the contract for the sale of the
company's interest in Transelec, in Chile, had been recognized in 2008 under
discontinued operations. Net income for the first six months therefore
amounted to $1,842 million, compared to $2,171 million in 2008. For the second
quarter of 2009, net income totaled $435 million, compared to $721 million in
2008.
    "Given the recessionary business environment and taking into account
certain non-recurring items from 2008, Hydro-Québec continues to maintain good
results," said Lise Croteau, Vice President, Accounting and Control at
Hydro-Québec.

    Segmented results for the first six months

    Hydro-Québec Distribution recorded net income of $304 million, compared
to $455 million in 2008. This decrease is mainly due to the recognition, in
June 2008, of a $129-million regulatory asset for revenue variances related to
weather conditions in 2006 and 2007, and an increase in bad debt.
    Hydro-Québec TransEnergie's net income amounted to $232 million, which is
comparable to the $247 million recorded in 2008.
    Hydro-Québec Production posted net income of $1,306 million, which is
comparable to the previous year's amount of $1,343 million. Revenue from net
electricity exports decreased due to colder temperatures in Québec during the
first quarter of 2009 and to a drop in energy market prices. An additional
loss was recorded on special contracts with large industrial customers in
Québec, due to a decline in aluminum prices. These factors were offset by the
positive effect of hedging aluminum prices as well as to decreases in
transmission system reservation expenses, amortization expense and capital
tax.
    The volume of activity at Hydro-Québec Equipement and Société d'énergie
de la Baie James totaled $1,044 million, compared to $916 million in 2008.
Major projects under way include Eastmain-1-A/Sarcelle/Rupert, the 1,250-MW
interconnection with Ontario and the start of work on the Romaine project.

    Investment

    During the first half of 2009, Hydro-Québec's investments totaled $1,730
million, compared to $1,567 million for the same period in 2008. Most of this
amount was devoted to growth and development projects and to the continued
implementation of the Energy Efficiency Plan.

    Financing

    In June 2009, Hydro-Québec issued variable-rate notes and raised $1
billion, bringing the total amount of borrowings since the beginning of the
year to $2 billion, all completed on the Canadian market.




For further information:

For further information: Flavie Côté, Press Officer, Hydro-Québec -
Media Relations, (514) 289-2220, Cote.Flavie@hydro.qc.ca; Press room:
http://www.hydroquebec.com/media


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