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SOURCE Hydro One Inc.
TORONTO, Feb. 14, 2014 /CNW/ - Hydro One Inc. today released its 2013 year-end results with net income for the year of $803 million and revenues of $6,074 million.
"Hydro One's financial performance and emergency response continued to deliver value to Ontario energy consumers throughout 2013," said Carm Marcello, President and CEO, Hydro One Inc. "In addition to our continued contributions through net income, we made dividend payments of $218 million to our Shareholder, the Province of Ontario, as well as maintained our strong credit quality."
The following are some of our noteworthy items:
Our 2013 net income increased by $58 million, or 8%, to $803 million, compared to 2012. We experienced higher distribution revenues in 2013 mainly reflecting increased purchased power costs, primarily related to the OEB's RPP rate-setting process and the IESO's spot market. We also experienced increased transmission revenues in 2013 reflecting a higher peak demand due to intermittent periods of hot weather in the summer of 2013, as well as extreme cold winter weather. Our 2013 net income was also positively impacted by a lower provision for PILs and by a reduction to our provision for payments in lieu of transmission station property taxes, following the finalization of the assessment of certain prior years' property tax returns. This reduction was partially offset by power restoration expenditures following several major storms in 2013.
Our 2013 capital investments of $1,394 million were lower by $60 million, compared to 2012. Within our Transmission Business, the 2013 capital investments decreased mainly due to the completion of three major capital projects in 2012 and early 2013, including the Bruce to Milton Transmission Reinforcement Project in the Huron-Grey-Bruce area. We continued to invest in inter-area network projects, and in load customer connections and local area supply projects. Within our Distribution Business, the 2013 capital investments increased slightly, primarily due to increased investments related to sustainment work program, including storm restoration work following the major storms in 2013, and increased work within our wood pole replacement program and station refurbishment projects.
Total revenues of $6,074 million, were higher by $346 million, or 6%, compared to 2012. Our 2013 transmission revenues of $1,529 million, were $47 million higher than in 2012, primarily due to higher demand and higher energy consumption, resulting from a warmer summer and a colder winter in 2013, compared to 2012. Our 2013 distribution revenues of $4,484 million, were $300 million higher than in 2012, primarily due to the recovery of higher purchased power costs and higher energy consumption.
Net cash from operating activities was $1,404 million in 2013. During the year, we paid $218 million in dividends to our shareholder, the Province of Ontario, and $138 million in payments in lieu of corporate income taxes to the Ontario Electricity Financial Corporation.
CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS
|Year ended December 31|
|(Canadian dollars in millions, except as otherwise noted)||2013||2012||$ Change||% Change|
|Net cash from operating activities||1,404||1,294||110||9|
|Average annual Ontario 60-minute peak demand (MW)1||21,493||21,132||361||2|
|Distribution - units distributed to our customers (TWh)1||29.8||29.2||0.6||2|
|1 System-related statistics are preliminary.|
Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution and telecom businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of the largest transmission and distribution systems in North America. Hydro One Inc. is wholly owned by the Province of Ontario.
Hydro One Inc.'s 2013 Annual Consolidated Financial Statements and Management's Discussion and Analysis can be accessed through the following link: www.hydroone.com/financials
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