BC Hydro reports huge surge in profits
By Derrick Penner
Vancouver Sun
01-Dec-2005
BC Hydro recorded net income of $189 million in its second quarter, compared with $11 million for the same period a year ago, a huge profit jump driven by increased customer demand and electricity trading activity, the company said Wednesday.
Alister Cowan, BC Hydro's chief financial officer, said higher customer loads and trading, coupled with lower financing and amortization costs, were offset by lower revenue while the Crown corporation awaits approval by the B.C. Utilities Commission of a 7.23-per-cent rate increase.
BC Hydro added 24,808 new residential customers and saw an increase in commercial and industrial sales to post $1.26 billion in domestic revenue for the company's six months ending Sept. 30, and saw $765 million in net electricity trading revenue, $468 million more than a year ago.
Company spokesman David Conway said BC Hydro's board of directors is expected to decide by next week whether the controversial Site C Dam will be included as a preferred energy option in its integrated electricity plan.
The Crown corporation conducted a series of public consultations throughout the province earlier this year on the integrated electricity plan, which outlines how BC Hydro plans to meet the province's electricity needs over the next 20 years.
Posted by Arthur Caldicott on 01 Dec 2005