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Energy

Energy

Results

ENERGY RESULTS
Year ended December 31 (millions of dollars)
2008  2007  2006 
Western Power 426  308  297 
Eastern Power 338  255  187 
Bruce Power 201  167  235 
Natural Gas Storage 135  136  93 
General, administrative, support costs and other (168) (158) (144)
Operating income 932  708  668 
Financial charges (23) (22) (23)
Interest income and other 10 
Income taxes (274) (237) (221)
Comparable Earnings(1) 641  459  429 
Writedown of Broadwater costs (27) –  – 
Gain on sale of land –  14  – 
Fair value adjustments of natural gas storage
inventory and forward contracts
–  – 
Income tax adjustments –  34  23 
Net Earnings 614  514  452 
(1) Refer to the "Non-GAAP Measures" section of this MD&A for further discussion of comparable earnings.
Energy Net Earnings

Energy's net earnings in 2008 of $614 million increased $100 million compared to $514 million in 2007. Comparable earnings of $641 million in 2008 increased $182 million compared to 2007 and excluded a $27 million writedown of costs previously capitalized for Broadwater. The increases in comparable and net earnings were due to higher operating income in Western Power, Eastern Power and Bruce Power. Comparable earnings of $459 million for 2007 excluded net unrealized gains of $7 million resulting from changes in fair value of proprietary natural gas storage inventory and natural gas forward purchase and sale contracts, a $14 million gain on sale of land and $34 million of favourable income tax adjustments.

Energy's net earnings in 2007 were $514 million compared to $452 million in 2006. Comparable earnings were $459 million in 2007, an increase of $30 million from 2006. The increase was due to higher operating income in Eastern Power, Natural Gas Storage and Western Power, partially offset by a reduced contribution from Bruce Power. Comparable earnings excluded net unrealized gains of $7 million resulting from natural gas storage fair value changes, a $14 million gain on sale of land, $34 million of favourable income tax adjustments in 2007 as well as a $23 million favourable impact in 2006 from future income taxes as a result of reductions in Canadian federal and provincial corporate income tax rates.