Fortis utilities lead company’s 2012 earnings

Ashley Fitzpatrick
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Newfoundland Power rate application still before Public Utilities Board

Stan Marshall. - Telegram file photo

The Public Utilities Board is continuing its examination of Newfoundland Power’s general rate application — a proposed rate hike for customers in this province.

At the same time, the utility’s parent company, Fortis Inc., has released a detailed report on its financial result for 2012 to investors.

Fortis pulled in $315 million for its shareholders in the last year, or $1.66 per common share, it states.

That is compared to $311 million, $1.71 per share, in 2011.

Newfoundland Power’s earnings were $5 million more in 2012 when compared to 2011, it notes, “largely due to lower effective income taxes.”

“Our Canadian regulated utilities, led by strong growth at FortisAlberta, achieved approximately 11 per cent growth in earnings year over year,” stated Stan Marshall, president and chief executive officer for Fortis Inc.

As well, “Fortis Properties delivered earnings of $22 million compared to $23 million for 2011,” the financial report states.

 

Spending on hydro, US utility acquisition

On the other side of earnings, Fortis companies spent more than $1 billion on capital projects during the last year.

The largest project currently underway is the Waneta Expansion hydroelectric generating facility — a new, 335 megawatt power plant — on the Pend d’Oreille River in British Columbia. Fortis has a 51 per cent interest in the project.

“Approximately $436 million in total has been spent on the Waneta Expansion since construction began in late 2010, with a further $227 million expected to be spent in 2013,” the company update states. The plant is expected to come online in 2015.

Meanwhile, with the approval of the New York State Public Service Commission of Fortis’ acquisition of CH Energy Group, under a settlement agreement, the Canadian-based company expects the deal to be closed in the second quarter of 2013.

“Serving our customers well is our utmost priority. We are also focused on closing the CH Energy Group acquisition,” Marshall stated.

 

telegram@thetelegram.com

Organizations: Newfoundland Power, Public Utilities Board, CH Energy Group New York State Public Service Commission of Fortis

Geographic location: US, British Columbia

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Recent comments

  • Chad
    February 07, 2013 - 21:12

    John Smith, As compaired to other provinces we might be the lowest when it comes to electricity rates, but we are also the lowest paid when it comes to the same jobs performed in other provinces. Thats why the airport works are on stick is it not? Newfoundland power can cut cost in many ways, and if some of the people know what went on there would blow your mind. There can be millions saved in that operation every year. Will it....... no because thats business right.....

  • Jay
    February 07, 2013 - 17:13

    Maybe City Council should force them to fix up some of their derelict real estate they have in the downtown area

  • Newfoundlander
    February 07, 2013 - 13:31

    Keep in mind folks that this a rate hike purely to increase profit for share holders. This rate hike will go in effect in march. In July/August we will see another rate hike that reflects the actual cost increase of providing electricity to people. we'll see a 6-7% increase in March as a money grab, and we'll see another 6-7% in August to compensate for NL Hydro speculating on the price of oil. Last year the speculated the price of oil to be 119 dollars a barrel and so we saw a 6% increase in our rates in July/August of last year. Keep in mind, oil never traded over 100. There is a lot of excess money around that's going to peoples pockets instead of maintaining infrastructure. And THAT is why we should be concerned.

  • Jane Doe who cares
    February 07, 2013 - 11:45

    Has anyone wondered where your power comes from. NOT NL power. They outsource this from the only provider there. So now....they buy the power at an extremely low rate guaranteed over a long term and and pass this off to us fellow newfoundlanders at a rate that is comparable from other provinces. Such a small money maker.....right....WRONG.....they make money doing this and make good of it. This new power line being constructed going to Nova scotia is connected with their source. High cost of doing their business is passed of to us......they make money guaranteed and it lines the pockets of big executives and side kicks. Nevermind the little bottom poeple that work there. Do they get the great incentives as the several number of executives have? NO nor will they. That's what FORTIS is all about....making a pretty face in the picture, never mind how they get there.....those tricks are saved for emergencies only like when the power goes out and those little employees are called upon.....please help us, we need help to save our face.....Someone should be here in NL with windpower and take this luxury from Fortis so they can really be seen for who they are. Good luck for anyone that takes on this challenge as it is being done elsewhere in other provinces.

  • Jane Doe who cares
    February 07, 2013 - 11:42

    Has anyone wondered where your power comes from. NOT NL power. They outsource this from the only provider there. So now....they buy the power at an extremely low rate guaranteed over a long term and and pass this off to us fellow newfoundlanders at a rate that is comparable from other provinces. Such a small money maker.....right....WRONG.....they make money doing this and make good of it. This new power line being constructed going to Nova scotia is connected with their source. High cost of doing their business is passed of to us......they make money guaranteed and it lines the pockets of big executives and side kicks. Nevermind the little bottom poeple that work there. Do they get the great incentives as the several number of executives have? NO nor will they. That's what FORTIS is all about....making a pretty face in the picture, never mind how they get there.....those tricks are saved for emergencies only like when the power goes out and those little employees are called upon.....please help us, we need help to save our face.....Someone should be here in NL with windpower and take this luxury from Fortis so they can really be seen for who they are. Good luck for anyone that takes on this challenge as it is being done elsewhere in other provinces.

  • Cold Future
    February 07, 2013 - 08:35

    Fortis was built on the back of Newfoundland Power (that is on the backs of the Newfoundland Ratepayers). It would not hurt them to give some back to the people that made them by toning down the present grab on the rates.

  • John Smith
    February 07, 2013 - 08:33

    Actually, Andy...we have some of the lowest electricity prices in Canada, very near the absolute bottom when it comes to pricing....as well, it is important to note that NL Power is one of the lowest sources of income in the Fortis portfolio. Congratulations to all the good people who work for Fortis...a company all in NL should be very, very proud of.

    • Edmund
      February 07, 2013 - 09:13

      Obviously these are the words of a highly paid employee or a selfish shareholder. He must have forgotten about the recent power outages and the threat of ongoing anticipated rotating power outages. Much want smore but often gets less. I ask you, why do we always have to compare our rates with other provinces? Why can't we start setting some standards and have others follow us. Same old NL mentality, got to do like they do on the mainland. It's time to stop that. Comparatively speaking, how does Stan Marshall's annual compensation compare with other like (similar in size) utility companies? Over the moon I expect.

    • John Smith
      February 07, 2013 - 11:48

      Well Edmund there are many, many reasons why we should be paying much more here for power than elsewhere. We live on an isolated island, (or at least 480,000 of the 500,000 of us do), we have very few people spread over an area the size of California, with some of the harshest weather on the planet, we burn oil to create about 25% of our electricity, the infrastructure that must be maintained to get power to tiny, isolated communities has enormous cost, those are but a few reasons. Our power bills have gone up by 70% since 1998, not because of gouging by NL Power, but because it cost more for NL Power to buy electricity from Nalcor. That is why muskrat falls is so important, we will be connected to the national grid, and we will have the most stable power prices in NA.

  • Chantal
    February 07, 2013 - 08:15

    How weird would this be: a public utility that serves the needs of the public rather than a handful of shareholders and executives... Oh wait, that's socialism. Sorry.

  • Andy
    February 07, 2013 - 08:03

    The price hike is insane. They're making record profits on a highly controlled and protected industry. They want to raise prices in order to line top executives pockets. They'll use the money to invest in things NOT in Newfoundland. The very idea that our Government/people have set up this profitable money making machine for them to say they want more is insane. It's a healthy, highly protected, highly profitable position/business they're in. Electricity in Newfoundland, despite being almost completely renewable and heavily government protected, is also very high compared to other places in the world and yet they want to increase it. Insane, Newfoundlanders should be outraged at Fortis continuing to take advantage of our people and land.

  • derrick
    February 07, 2013 - 07:58

    I wonder what percentage of senior mgr. is charged to NL compared to a competitive market place own by Fortis.