FREDERICTON (CNB) – NB Power posted earnings in the first quarter of 2011-12 as it begins providing quarterly financial and operating highlights to the public for the first time.
"Our government gave NB Power the mandate to run as a business, and I am very encouraged by what we have seen in such a short time," said Energy Minister Craig Leonard. "It is clear NB Power is an extremely valuable asset to New Brunswickers, and we can see the positive results when the utility is allowed to focus on its business. I am encouraged and impressed by the work that has been done by the employees and management to date as we pursue low and stable rates in the long term for New Brunswickers."
NB Power's recorded net earnings for the first quarter of 2011-12 are $58 million, compared to an $8-million net loss for the same period in 2010-11.
The $66-million year-over-year increase in earnings is a result of a number of factors that positively impacted revenues and expenses during the quarter. These factors included significantly reduced administration costs and stronger-than-expected hydro generation. Full details are in the report, which is online.
"The minister of Energy mandated earlier this year that NB Power must provide updated financial statements to the public on a quarterly basis," said Ed Barrett, chairman of NB Power's board of directors. "This will increase transparency and promote greater public understanding of how NB Power is performing over the course of the year. We are in the middle of a three-year rate freeze, and the goal is to extend low and stable energy rates out for the foreseeable future. In order to achieve that goal, we need to continue to pursue cost savings.”
"NB Power has been working diligently to reduce administration costs and improve efficiencies while maintaining our high level of customer service," said Gaëtan Thomas, president and chief executive officer, NB Power. "Our cost-reduction initiatives are starting to make a substantial difference, and our continuous focus on finding efficiencies will ensure rate stability moving forward."
On a pre-tax basis, NB Power earned $79 million compared to a loss of $12 million – a $91-million improvement from the same quarter last year.
The information provided in the report includes year-over-year financial variances for the first quarter (April to June). The information has not been audited, and it contains financial estimates that are subject to change. The audited financial statements for the year ended March 31, 2011, are on the NB Power website.
LINK:
● NB Power: www.nbpower.com
14-09-11