Business
FortisAlberta reports strong operational performance in third quarter
FortisAlberta reports strong operational performance in third quarter.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nTSX:FTS\n\nCALGARY, Oct. 26 /CNW/ - FortisAlberta today released its 2006 third\nquarter results announcing increased earnings, lower operating costs and\nincreased capital investment. Earnings for the third quarter were\n$12.3 million, an increase of $3.0 million over the same quarter last year.\n\"To the end of September, FortisAlberta has achieved performance\nimprovements in key business areas such as safety, operating expenses and\nreliability while completing an unprecedented capital program,\" said Philip\nHughes, President and CEO, FortisAlberta. \"These improvements, combined with a\nlower effective tax rate, have contributed to earnings that are substantially\nabove those of the comparable quarter in 2005.\"\nIn the third quarter of 2006, total revenue was $64.6 million compared to\n$66.8 million, a decrease of $2.2 million compared to the same period in 2005.\nIn 2005, revenue was $6.5 million higher due to the finalization of load\nsettlement amounts and billing adjustments. This was partially offset by an\nincrease in revenue during 2006 from increased energy consumption and customer\ncounts as a result of a strong provincial economy.\nDespite operating in an environment of robust economic growth, which in\nturn fuels costs increases, FortisAlberta was able to lower operating costs\nfor the nine months ended September 30, 2006 compared to the same period in\n2005.\nDuring the third quarter, the Company continued to undertake capital\nprojects across Central and Southern Alberta, investing approximately\n$59.1 million compared to $34.9 million in the third quarter last year.\nCapital expenditures for 2006 are currently forecasted at approximately $230\nmillion, as compared to an original budget of $184 million, primarily due to\nhigher than forecast growth in the residential and oil and gas sectors. \"This\nlevel of activity is expected to continue for the next few years,\" added\nHughes.\nFor a full copy of FortisAlberta's financial statements and management\ndiscussion & analysis, please visit www.fortisalberta.com and click on the\nInvestor Centre.\nTo keep pace with the unprecedented growth in Alberta, FortisAlberta is\nworking to upgrade facilities to meet customer demands. \"We are making\nstrategic investments across our service territory to strengthen our\ndistribution system to help build sever...