Toronto, ON — Mar. 28, 2003 — Year-end results for the Ontario utility Hydro One Inc. on Dec. 31, 2002, show revenue increased 17% over the previous year. The increase in revenue was primarily due to the growth in Hydro One’s service territory and high electricity consumption resulting from the unusually hot weather conditions experienced last spring and summer.
Acquisitions of local distribution companies in 2001 and a requirement to serve customers previously billed by Ontario Power Generation resulted in the growth of Hydro One’s service territory.
The extreme weather conditions in 2002 resulted in unusually high costs
for corrective maintenance on the company’s transmission system and the larger distribution system.
Hydro One incurred other one-time costs including those for a recent staff reduction program and for the 2002 portion of the amalgamation of regional operating centres. The one-time events in 2002 contributed to the increase of 1% in total operating, maintenance and administration costs.
“We restructured the organization and streamlined management to ensure a greater emphasis on day-to-day operations and finding efficiencies,” said Tom Parkinson, President, Hydro One Inc.
“The changes we’ve made to become more efficient allowed us to partially overcome the cost pressures we faced this year due to weather and our lower distribution rates. We’re focussed on delivering Ontario’s electricity safely and reliably.”
Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution and telecom businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of the largest transmission and distribution systems in North America. Hydro One Inc. is wholly-owned by the Ontario government.