Business
FortisAlberta announces 2006 second quarter earnings
FortisAlberta announces 2006 second quarter earnings.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, July 19 /CNW/ - (TSX:FTS) - FortisAlberta Inc. today released\nits 2006 second quarter results announcing increased earnings, lower operating\ncosts and increased capital investment. Earnings for the second quarter were\n$11.3 million, an increase of $1.6 million over the same quarter last year.\nThe higher earnings in the second quarter of 2006 were impacted by\ndecreased operating and income tax expenses, partially offset by decreased\nrevenues due to a rate decrease combined with increased interest and\ndepreciation costs. \"We continue to make significant progress in improving\nearnings by focusing on operating efficiencies and productivity initiatives to\nkeep operating costs low and ultimately reduce costs for our customers,\" says\nPhilip Hughes, President and CEO, FortisAlberta Inc.\nTotal revenue for the quarter was $58.6 million compared to $70.1 million\nfor the same period in 2005. In 2005, revenue was $10.8 million higher due to\nthe resolution of tax-related matters relating to a prior period. 2006 second\nquarter revenue was impacted by a 1.9 per cent reduction in customer rates as\npart of FortisAlberta's 2006/2007 negotiated settlement, which resulted in a\nrevenue decrease of $2.1 million. This decrease was partially offset by higher\nenergy deliveries and load growth in residential and industrial customer\nclasses as a result of a strong provincial economy.\nTo support the growing demand for electricity in Alberta and to respond\nto customers' needs, the Company has increased capital investment to its\ndistribution network to $180 million in 2006, net of customer contributions,\nfrom $131 million in 2005, net of customer contributions.\n\"FortisAlberta has increased capital expenditures in the second quarter\nto $48.1 million, net of customer contributions, compared to $28.7 million,\nnet of customer contributions, in the same quarter last year,\" adds Hughes.\n\"Meeting customer growth requirements is a major challenge for the Company as\nwe continue to improve the reliability and efficiency of the electrical\nsystem.\" FortisAlberta's investment in the system includes improvements such\nas the commissioning of the 25,000 volt distribution lines from the new\nBassano substation increasing Alberta's electric system capacity by an\nadditional 25 megawatts. This capital project will meet incre...