Press Release
November 24, 2008
BC Hydro announces second quarter net income of $122 million
VANCOUVER – BC Hydro today announced its second quarter financial results [PDF, 343 Kb] for fiscal 2009, reporting a consolidated net income of $122 million for the quarter ended September 30, which was $35 million lower than the previous year.
"While the demand for electricity from the industrial sector decreased from the previous year, the residential sector showed strong growth as we added nearly 33,000 new customers," said Bob Elton, BC Hydro President and CEO. "We also remain committed to our long term capital improvement plan of expanding generation and distribution capacity, upgrading aging assets, and improving system reliability."
Key financial highlights include:
- Domestic revenues were $623 million – $44 million lower than the previous year, as a result of decreased revenue from the industrial sector due to the closure of two pulp mills and the shutdown of newsprint, chemical pulp and cardboard lines at a third mill in the pulp and paper sector. This was partially offset by strong demand in the residential sector as 32,668 new customers were added over the prior year.
- BC Hydro experienced a 19 per cent decrease in hydro generation over the same period in the prior year due to lower water inflows and system constraints resulting from unexpected equipment failures at two major units that persisted through the second quarter, causing BC Hydro to purchase higher-priced market energy to meet domestic requirements.
- Operating costs were $45 million higher than the previous year, primarily as a result of demand side management and smart metering infrastructure project expenditures as part of an increased focus on energy conservation; higher maintenance costs to address equipment failures at the G.M. Shrum Generating Station and Mica Dam, which occurred in April, and higher levels of work in vegetation maintenance to improve system resiliency.
Capital expenditures of $353 million were $89 million higher than the previous year, primarily due to work on the fifth Revelstoke turbine unit, the Aberfeldie Redevelopment and reinforcement work on the Vancouver Island transmission connection to meet growing customer demand.
Contact:
Dag Sharman
Media Relations
Phone: (604) 623 4022
