TORONTO - Ontario Power Generation Inc. says its operational performance improved in 2008 but its net income faded to $88 million, down from $528 million in 2007, because of the capital markets meltdown.
The provincial Crown-owned utility said Friday that its electricity operations generated $1.03 billion in profit last year, up from $594 million in 2007, thanks to higher rates and prices and increased nuclear and hydroelectric output.
"However, these favourable increases were more than offset by the negative impact that the capital markets had on the market value of the investment funds that have been established for nuclear fixed asset removal and nuclear waste management," stated OPG president Jim Hankinson.
The bottom line was eroded by a $670-million pre-tax loss in the nuclear waste management segment, as the slump in global financial markets cut the value of assets in the decommissioning fund set aside to deal with future atomic liabilities.
OPG generated 107.8 trillion watt-hours last year, up 2 1/2 per cent from 2007.
Generation declined from fossil-fuelled stations, but hydroelectric production benefited from higher water flows and "excellent station performance," the utility stated, while increased nuclear generation "was mainly a result of improved reliability at the Pickering A and Darlington nuclear generating stations."
