Newfoundland Power's Profits Down

ST. JOHN'S, Nfld. -- Higher operating costs produced slightly lower profits at Newfoundland Power Inc., the privately owned electricity distributor reported Monday.

The company, owned by Fortis Inc. of St. John's, said it made $9.8 million or 95 cents a share for the three months ended March 31, down about $500,000 or five per cent from the $10.3 million or $1 a share earned in the same 2002 period. Revenues rose to $124.6 million from $115.4 million, but costs also went higher, said Philip Hughes, the utility's president and chief executive.

"Operating expenditures rose in the first quarter as a result of severe weather, higher pension expense and increased regulatory costs associated with the company's 2003 general rate application," Hughes said.

The utility has asked Newfoundland's energy regulator for an increase of just under one per cent, effective Aug. 1. A decision is expected in the next few months.

Newfoundland Power is wholly owned by Fortis, a utility holding company with assets of more than $2 billion and operations in Newfoundland, Prince Edward Island, Ontario and central America.