Crown corporation Nalcor Energy booked roughly $2 billion in capital spending in 2014, or about $1 billion more than the year prior, according to the annual report and financial statements released late Tuesday afternoon.
Nalcor has six business arms: Newfoundland and Labrador Hydro, Churchill Falls, Oil and Gas, the Lower Churchill development, the Bull Arm Fabrication Site and Energy Marketing.
The largest part of the corporation’s overall spending increase can be attributed to more year over year, an added $800 million, spent on the Muskrat Falls project, with the expected progression of work on the 824-megawatt hydroelectric facility and more than 1,500-kilometres of associated transmission lines.
The rest of the added expenditures include more spent under Newfoundland and Labrador Hydro. Specifically, in 2014, $209 million was spent on Hydro assets. That total is up $121.9 million from capital spending on the utility’s regulated assets in 2013.
Under Nalcor Oil and Gas, an extra $52.8 million was spent in 2014 when compared to 2013. Nalcor Oil and Gas is responsible for the province’s equity stake in offshore oil projects, including the Hebron project.
Collectively, all of Nalcor Energy has recorded about $10.6 billion in total assets at year end, up from $9.5 billion at the end of 2013.
The report’s “management discussion and analysis” makes note of Hydro’s response to the blackouts of January 2014, $14.3 million in sales from seismic data sales for offshore oil (against $13 million spent on new data) and a $5.9-million drop year over year in profits from Churchill Falls power, to name a few.
It also notes the approval from the utilities regulator, the Board of Commissioners of Public Utilities, for future spending to build a 230-kilovolt transmission line from Bay d’Espoir to the western Avalon Peninsula.
“The line will reinforce the stability of the transmission network when the new transmission line between the island and Labrador comes in service. The estimated cost is $291.7 million and the line is proposed to be in service for 2018,” the report states.
The annual report, with attached financial statements, has been released ahead of Nalcor Energy’s annual general meeting, set for 1-4 p.m. this Thursday at the Holiday Inn in St. John’s. Any questions relating to the meeting can be emailed to firstname.lastname@example.org.
The Nalcor board of directors currently includes chairman Ken Marshall, president and CEO Ed Martin, Gerald Shortall, Tom Clift, Leo Abbass and Erin Breen.