Hydro-Québec's Continuing Operations Yield Satisfying Results

MONTREAL, Nov. 26, 2012 /CNW Telbec/ - Hydro-Québec's continuing operations 
yielded satisfying results for the three- and nine-month periods ended 
September 30, 2012, considering the economic context and market conditions. 
Consolidated results for the third quarter 
Hydro-Québec posted a result from continuing operations of $376million for 
the third quarter of 2012, compared to $404million in 2011. The difference 
is due to a $61-million reduction in the net result from special contracts 
with certain large industrial customers in Québec on account of aluminum 
prices and the exchange rate, as well as to electricity purchases of 
$45million from Rio Tinto Alcan. These factors were partly offset by a 
$51-million increase in revenue from net electricity exports by Hydro-Québec 
Production. 
Consolidated results for the first three quarters 
For the first nine months of 2012, the result from continuing operations was 
$2,121million, compared to $2,271million for the same period last year. 
The difference is partly attributable to a decrease in revenue from 
electricity sales in Québec owing to lower demand, mainly in the industrial 
sector, which had an impact of $89million. It is also due to a $99-million 
decrease in the net result from special contracts with certain large 
industrial customers in Québec on account of aluminum prices and the exchange 
rate, as well as to electricity purchases of $119million from Rio Tinto 
Alcan. These factors were partly offset by a $34-million increase in revenue 
from Hydro-Québec Production's net electricity exports and by a $47-million 
reduction in financial expenses. Cash flows from operating activities totaled 
$3,230million as at September30, 2012. 
In September 2012, following the decision to abandon the project to refurbish 
Gentilly-2 nuclear generating station, Hydro-Québec posted a negative result 
from discontinued operations that essentially stems from the accounting 
treatment of the facility's definitive shutdown at the end of 2012. More 
specifically, the abandonment of the refurbishment project and the imminent 
shutdown of Gentilly-2 led to a write-off of $978million in property, plant 
and equipment under construction and to the recognition of an asset impairment 
charge of $827million, for a total of $1,805million. The result from 
discontinued operations also includes a negative operating result of 
$51million. It should be noted that this accounting treatment has no impact 
on the cash flows from operating activities. 
When the discontinued operations are factored in, the net result for the first 
nine months of the year amounted to $265million in 2012, compared to 
$2,237million in 2011. 
Segmented results for the first three quarters 
Hydro-Québec Production posted a result from continuing operations of 
$1,208million, compared to $1,492million in 2011. This decrease is due to 
a reduction in revenue from electricity sales to Hydro-Québec Distribution on 
account of the mild temperatures in 2012 and of lower demand in Québec. In 
addition, the net result from special contracts with certain large industrial 
customers in Québec, assumed by Hydro-Québec Production, was lower than in 
2011 because of aluminum prices and the exchange rate. The division also 
purchased electricity from Rio Tinto Alcan. On the other hand, revenue from 
net electricity exports increased with respect to last year. 
Hydro-Québec TransÉnergie's result from continuing operations was 
$478million, a $54-million increase over 2011. 
Hydro-Québec Distribution recorded a result from continuing operations of 
$346million, an increase of $80million over last year. Revenue from 
electricity sales decreased, mainly on account of the mild temperatures in 
2012 and lower demand, mostly in the industrial sector. This decrease was 
offset by a positive change in the amounts that Hydro-Québec will be able to 
recover from customers, primarily for revenue variances related to climate 
conditions, as well as by a decrease in electricity purchases from 
Hydro-Québec Production and a reduction in financial expenses. 
In the Construction segment, work handled by Hydro-Québec Équipement et 
services partagés totaled $1,429million, compared to $1,245million in 
2011. Among other projects carried out for Hydro-Québec Production, the 
division continued construction of the Romaine complex. Work done for 
Hydro-Québec TransÉnergie included the ongoing project to connect Romaine-2 
generating station, integrating output from wind farms as well as various 
projects stemming from continued investment in asset sustainment, among other 
things. As for the Société d'énergie de la Baie James, its volume of 
activity amounted to $122million, compared to $244million last year. In 
January 2012, the Eastmain-1-A/Sarcelle/Rupert project reached a major 
milestone with the commissioning of the last generating unit at Eastmain-1-A 
powerhouse. 
Investments 
Hydro-Québec invested $2,627million in the first nine months of 2012. As 
expected, a large portion of this amount was devoted to the company's growth 
and development projects as well as to maintenance and improvement activities. 
Financing 
During the third quarter of 2012, Hydro-Québec issued $500million of 
debentures on the Canadian market, bearing interest at 5.00% and maturing in 
February 2050. This financing is in addition to the US$1,000million raised 
in the first half of the year. The funds will be used to support part of the 
investment program and to refinance maturing debt. 
Ariane Connor, Media Relations Tel.: 514 289-5982 
E-mail:connor.ariane@hydro.qc.ca Press 
room:http://www.hydroquebec.com/media 
SOURCE: HYDRO-QUEBEC 
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CO: HYDRO-QUEBEC
ST: Quebec
NI: UTI ERN FIN  
-0- Nov/26/2012 19:22 GMT