NB Power Sees $15 Million Loss in First Quarter
[mks_highlight color=”#eeee22″]FREDERICTON[/mks_highlight]
NB Power ended its first quarter with a net loss of $15 million. The company blamed the loss on an outage at Point Lepreau Nuclear Generating Station and lower hydro flows this quarter during the critical spring run-off period.
Despite the loss, the provincial electricity utility still paid down $16 million in debt.
Financial highlights for the quarter included:
- An overall revenue increase by $12 million primarily as a result of an in-province two per cent rate increase from October 2014 and an increase in the volume of out of province sales.
- Investment earnings were down $16 million due to declining investment market performance.
- OM&A costs are up $27 million primarily as a result of an unplanned outage and cyclical running maintenance requirements at Point Lepreau Generating Station.
NB Power says it is taking steps to address the quarter’s loss. “Once the first-quarter results became apparent, we immediately initiated a comprehensive review of all remaining planned spending for this year to ensure we pursue the financial goals we have set for 2015-16,” said Darren Murphy, vice-president of corporate services and chief financial officer
Electricity consumers in New Brunswick will see rate increases of two per cent this year and for the next six years as NB Power attempts to pay down a billion dollars’ worth of debt by 2021.