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Factor Contributing to Electricity Sales Variance
Unfavourable
-- Lower average consumption, due to warmer temperatures
Factors Contributing to Revenue Variance
Favourable
-- An increase in customer electricity rates, effective January 1, 2013, mainly due to ongoing investment in energy infrastructure and forecasted certain higher expenses recoverable from customers as reflected in the 2012/2013 revenue requirements decision received in August 2012
Unfavourable
-- The 2.0% decrease in electricity sales-- Differences in the amortization to revenue of flow through adjustments owing to customers quarter over quarter
Factors Contributing to Earnings Variance
Favourable
-- Rate base growth, due to continued investment in energy infrastructure-- Lower operating expenses due to the timing of expenditures-- Lower-than-expected finance charges and depreciation in the first quarter of 2013-- Higher capitalized AFUDC, as approved by the regulator
Unfavourable
-- Higher effective income taxes, due to lower deductions for income tax purposes
NEWFOUNDLAND POWER
----------------------------------------------------------------------------Financial Highlights (Unaudited) Quarter Ended March 31 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Electricity Sales (GWh) 1,942 1,914 28Revenue ($ millions) 197 192 5Earnings ($ millions) 7 7 ---------------------------------------------------------------------------------------------------------------------------------------------------------
Factors Contributing to Electricity Sales Variance
Favourable
-- Growth in the number of customers-- Higher average consumption, reflecting the higher concentration of electric-versus-oil heating in new home construction combined with economic growth
Factors Contributing to Revenue Variance
Favourable
-- The 1.5% increase in electricity sales-- Increased amortization to revenue of regulatory liabilities and deferrals, as approved by the regulator
Factors Contributing to Earnings Variance
Favourable
-- Electricity sales growth
Unfavourable
-- Increased operating expenses, mainly due to costs incurred in the first quarter of 2013 associated with restoration efforts following the loss of energy supply from Newfoundland Hydro in January 2013, increased costs associated with customer energy conservation programs, and the impact of regulator-approved cost recovery deferrals in 2012, which reduced operating expenses in the first quarter of last year-- Higher depreciation, due to continued investment in energy infrastructure
OTHER CANADIAN ELECTRIC UTILITIES (1)
----------------------------------------------------------------------------Financial Highlights (Unaudited) Quarter Ended March 31 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Electricity Sales (GWh) 671 645 26Revenue ($ millions) 96 91 5Earnings ($ millions) 6 7 (1)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Includes Maritime Electric and FortisOntario. FortisOntario mainly includes Canadian Niagara Power, Cornwall Electric and Algoma Power.
