Advertisement
Favourable
-- The 1.8% increase in electricity sales-- Increased amortization to revenue of regulatory liabilities and deferrals, as approved by the regulator
Unfavourable
-- Revenue for 2011 included amounts related to support structure arrangements, which were in place with Bell Aliant during 2011, associated with the joint-use poles and related infrastructure held for sale to Bell Aliant. The joint-use poles and related infrastructure were sold in October 2011. Factors Contributing to Quarterly Earnings Variance
Favourable
-- An increase in the allowed ROE from 8.38% to 8.80%, effective January 1, 2012, which was accrued in 2012, as approved by the regulator, as a decrease in operating expenses for deferred recovery from customers-- Electricity sales growth-- Lower effective income taxes-- Lower operating expenses, due to lower conservation costs associated with customer rebate programs and decreased maintenance costs
Unfavourable
-- Higher purchased power costs, as a result of lower generation associated with the Company's hydroelectric generating facilities in 2012 due to lower water inflows-- Higher depreciation, due to continued investment in energy infrastructure Factors Contributing to Annual Earnings Variance
Favourable
-- Lower effective income taxes, primarily due to lower Part VI.1 taxes, including the favourable impact of reversals of statute-barred Part VI.1 taxes, and a lower statutory income tax rate. For further information on Part VI.1 tax, refer to the "Update on Significant Items" section of this earnings release.-- A higher allowed ROE, as discussed above for the quarter-- Electricity sales growth
Unfavourable
-- The impact of the support structure arrangements with Bell Aliant during 2011, as discussed above-- The same factors discussed above for the quarter
OTHER CANADIAN ELECTRIC UTILITIES (1)
----------------------------------------------------------------------------Financial Highlights (Unaudited) Quarter AnnualPeriods Ended December 31 2012 2011 Variance 2012 2011 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Electricity Sales (GWh) 578 568 10 2,381 2,366 15Revenue ($ millions) 89 83 6 353 339 14Earnings ($ millions) 6 2 4 24 20 4--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Includes Maritime Electric and FortisOntario. FortisOntario mainly includes Canadian Niagara Power, Cornwall Electric and Algoma Power. Factors Contributing to Quarterly Electricity Sales Variance
Favourable
-- Growth in the number of residential and commercial customers on Prince Edward Island ("PEI")-- Higher average consumption by residential customers on PEI, due to colder temperatures, and an increase in the number of such customers using electricity for home heating-- Higher average consumption by commercial customers in the agricultural processing sector on PEI Factors Contributing to Annual Electricity Sales Variance
