BC Hydro announces fiscal results for 2010
VANCOUVER – BC Hydro today announced its financial results for fiscal 2010, including a consolidated net income of $447 million for the year ended March 31, 2010, which is $82 million higher than the prior year's net income.
"Overall, our financial results for fiscal 2010 were in line with expectations," said Charles Reid, BC Hydro Executive Vice-President and Chief Financial Officer. "In spite of difficult economic conditions during the year, the impact on results of weaker domestic demand and low commodity prices was mitigated by BC Hydro not being required to purchase as much energy from the market to meet domestic load needs as was the case in the prior year.
"I am also pleased that we exceeded our target for energy savings from our Power Smart programs," Reid added. "We continued to make progress this year on our capital plan for upgrading aging assets to improve system resiliency and meet growing customer demand and we have significantly expanded our capacity with the acquisition in March 2010 of one-third ownership in the Waneta Dam and generating facility located near Trail, B.C."
Other highlights of the Annual Report include:
- Overall revenue for fiscal 2010 was $3.8 billion, a decrease of 10 per cent from the previous year mainly resulting from lower trade revenues due to lower average commodity prices and lower electricity sales volumes, partially offset by higher trade gas sales volumes.
- Total energy costs of $1.79 billion were $608 million lower than in the prior year. BC Hydro experienced a five per cent decrease in hydro generation over the prior year due to water inflows during the year that were 87 per cent of average, but the impact on results was offset by reduced load demand. As a result, BC Hydro was not required to purchase as much electricity from the market to meet domestic energy requirements as was the case in the prior year, which was also a low water inflow year.
- Energy saved through Power Smart programs surpassed expectations and continued to deliver cost-effective energy over the last fiscal year, producing cumulative energy savings of 1,778 gigawatt hours, an increase of 795 gigawatt hours over fiscal 2009. This increased saving is equivalent to powering 79,500 homes for a year.
- Capital expenditures of $2.4 billion in the year were $1 billion higher than the previous year, primarily due to the acquisition of one-third ownership of Teck Metals Ltd's Waneta Dam and generating facility near Trail, B.C. for $841 million, which will allow BC Hydro access to 250 megawatts of capacity and 1,000 gigawatt hours of energy per year. Additional capital expenditures in the current year related to BC Hydro's continuing programs to meet load growth and maintain its aging infrastructure through expenditures on replacement and expansion of generation facilities and on distribution system improvements and expansion.
- Energy trading income was affected in fiscal 2010 by the weakening of the U.S. dollar and lower electricity prices and price spreads across all markets as compared to the prior year. As a result of the economic recession, lower demand for electricity and natural gas combined with abundant natural gas supplies kept market energy prices low.
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