NB Power posts thin profit and makes small debt payment

NB Power profits and debt repayment were down significantly in 2015-16 due, in part, to an unusually warm winter and taking the Point Lepreau nuclear station offline to carry out mechanical repairs, the Crown utility reports.

The utility's financial report for the fiscal year ending March 31, 2016, reports it posted net earnings of $12 million and a debt payment of $2 million on revenues of $471 million.

In the previous fiscal year, NB Power recorded $100 million in earnings and put $103 million on its $4.9 billion debt.

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"The decrease in net earnings of $88 million was largely attributable to increases in expenses related to unplanned outages and improvement initiatives at the Point Lepreau Generating Station, warmer weather, and lower nuclear investment fund earnings," states the management discussion and analysis of the annual financial report.

With record high temperatures recorded in January and February, NB Power said its in-province sales decreased by $60 million. That loss of income was partially offset through $30 million raised through rate increases that were approved in October 2014 and 2015.

NB Power said it also invested $240 million in infrastructure improvements, tree-trimming and smart technology.

"Over the past year, we continued to meet the challenge of delivering positive financials while investing in improved performance," said Ed Barrett, the chairman of NB Power's board of directors, in a news release.

There was a 15 per cent decrease in the number of outages compared to the previous year, and the average length of outages decreased 25 per cent, states the utility.

The amount of renewable energy on the New Brunswick grid was a record high 42 per cent.

"This higher than expected number results from a record warm winter requiring less use of fossil fuel plants and additional out-of-province hydro purchased to offset a maintenance outage at Point Lepreau," states NB Power.

NB Power has been mandated to have 40 per cent of the energy on the New Brunswick grid come from renewable resources by 2020.