NB Power posts profit

B2
by adam huras
Times & Transcript Staff

FREDERICTON - NB Power has posted a profit for the second straight quarter, recording $86 million in net earnings in the first six months of the current financial year.

The utility reported $4 million in net earnings during the same period last year.

Slashed administration costs and stronger-than-expected hydro generation played a significant part for the second quarter in a row in the utility recording a $82 million year-over-year improvement.

The details are contained in the second of the utility's quarterly public reports that was released yesterday.

The report cites a $17 million year-over-year decrease in operating and maintenance expenses.

"NB Power employees continued to focus on reducing costs and improving efficiencies," stated Gaëtan Thomas, president and CEO, in a statement.

"Our cost-reduction initiatives are starting to make a substantial difference."

In-province revenue was $19 million higher than the same period a year ago "mainly due to colder weather, increased residential load, and a rate increase implemented in June 2010."

Fuel and purchased power and transmission expense decreased $80 million compared to the same period due to a 61 per cent increase in hydro generation and lower overall generation costs.

The numbers offset a loss in out-of-province revenue of $7 million due to export market prices being lower than a year ago.

The report also includes word that NB Power has received five submissions to keep the Dalhousie Generating Station in operation.

The utility had issued a request for interest to determine if there were parties willing to operate a business within the generating station or who might be interested in purchasing the facility.

"They are currently under evaluation," according to the report.

View the report