Content
Earnings
|
(millions of Canadian dollars) Year ended December 31, |
2007 |
2006 |
|---|---|---|
Earnings before the impact of tax changes |
2.3 |
0.6 |
Revalue future taxes due to tax rate changes |
0.1 |
- |
Future taxes due to Tax Fairness Plan |
0.2 |
- |
Earnings |
2.6 |
0.6 |
Earnings for the year ended December 31, 2007 were positively impacted by the future tax rate reduction in the fourth quarter of 2007 as well as the Tax Fairness Plan, which effectively changed the future tax rate from 0% to 29.5% starting in 2011. Future tax recoveries in the Green Power segment arose from differences between the accounting value and the fair value of the property, plant and equipment on the acquisition of the Wind Power projects.
Excluding the impact of tax changes, earnings were reflective of strong wind resource in the first and fourth quarter, offset by operational issues in the fourth quarter at NRGreen's Kerrobert facility. The Kerrobert facility experienced a mechanical seal failure on its gas turbine, which resulted in shut down of production for 47 days. The facility was re-started in November and NRGreen is pursuing the recovery of repair costs and lost revenue through warranty claims and/or from its insurers.