First quarter 2010: Hydro-Québec posts net income of $1,442 million

MONTREAL, May 14 /CNW Telbec/ - Hydro-Québec posted net income of $1,442 million for the first three months of 2010, an increase of $65 million over the first quarter of 2009 that is essentially due to a $125-million increase in net electricity exports by Hydro-Québec Production.

Segmented results

Hydro-Québec Production posted net income of $827 million for the first quarter, compared to $839 million for the same period of 2009. Net electricity exports, including the positive impact of the company's hedging operations for wholesale market activities, increased by $125 million because of higher volumes due mainly to the exceptionally mild temperatures recorded in Québec in 2010. This increase was offset by a $80-million decrease in revenue from electricity sales to Hydro-Québec Distribution as a result of the temperature effect, and by a $47-million increase in transmission system reservation costs paid to Hydro-Québec TransÉnergie.

Hydro-Québec TransÉnergie's net income amounted to $138 million, an increase of $10 million over 2009.

Hydro-Québec Distribution posted net income of $477 million for the first quarter, an increase of $60 million over 2009. Revenue from electricity sales decreased by $194 million because of the exceptionally mild temperatures recorded in the winter of 2010. This decrease was more than offset by a $142-million reduction in electricity purchases and by the recognition of a $105-million regulatory asset for revenue variances related to climate conditions.

The volume of activity of Hydro-Québec Équipement and Société d'énergie de la Baie James (SEBJ) totaled $514 million in the first quarter of 2010, compared to $395 million in 2009. Among the major projects under way are Eastmain-1-A/Sarcelle/Rupert and construction of the Romaine-2 hydroelectric development.

Investment

As at March 31, 2010, investments totaled $827 million, compared to $685 million in 2009. As expected, a large portion of this amount was devoted to major growth and development projects and to the continued implementation of the Energy Efficiency Plan.

Financing

In March 2010, the reopening of the bond issue maturing in February 2050 raised $0.5 billion on the Canadian market at a rate of 4.75%.

For further information: Ariane Connor, Media Relations, [phone], [email protected]; Press room: http://www.hydroquebec.com/media