NB Power – the gift that keeps on giving

NB Power – the gift that keeps on giving. 

The following is from the provincial government’s 18-K filing with the U.S. SEC.  It is the section on budget to actual revenues.   Note the reason for the $158.9 million under projection for investment income.

REVENUE

 

Budget 2010 to Actual 2010 Comparison

 

         

2010 Budget to Actual

($ millions)

Item

Budget

Actual

Change

% Change

Provincial Sources

 

 

 

 

  Taxes

 3,162.0

 3,243.9

 81.9

 2.6

  Licenses and Permits

 123.3

 129.0

 5.7

 4.6

  Royalties

 73.1

 39.6

 (33.5)

 (45.8)

  Investment Income

 265.5

 106.6

 (158.9)

 (59.8)

  Other Provincial Revenue

 352.0

 353.8

 1.8

 0.5

  Sinking Fund Earnings

 234.1

 216.4

 (17.7)

 (7.6)

Federal Sources

 

 

 

 

  Fiscal Equalization

 1,689.0

 1,689.4

 0.4

 0.0

  Unconditional Grants

 806.6

 803.4

 (3.2)

 (0.4)

  Conditional Grants

 391.7

 407.8

 16.1

 4.1

 

Taxes

Taxes are up $81.9 million over budget, primarily due to:

  • Personal Income Tax is up $71.5 million due to an underpayment for the 2008 taxation year that also contributed to higher revenue for 2009 and 2010;

  • Corporate Income Tax is up $28.7 million primarily due to an underpayment for the 2008 taxation year and a change to the province’s payment schedule from the federal government;

  • Metallic Minerals Tax is up $13.5 million due to an increase in world zinc prices and audit of prior years;

  • The Tobacco Tax increased by $12.6 million mainly due to higher volumes and a previous year tax settlement;

  • Large Corporation Capital Tax is up $9.2 million due to revenue received for prior-year adjustments;

  • Provincial Real Property Tax is up $7.9 million due to growth in assessment base;

  • Harmonized Sales Tax is down $66.5 million mainly due to lower in-year payments due to the weakened national economy.

Royalties

Revenue for royalties is down $33.5 million from budget.  Royalties from mines are down $28.2 million due to low commodity prices for potash and natural gas. Forest royalties are down $5.3 million due to low harvest levels.

 

Investment Income

Investment Income is down $158.9 million from budget mainly due to NBEFC.  NBEFC’s net loss was $151.2 million larger than budgeted primarily due to a write-down of the Dalhousie Generating Station as a result of NB Power’s decision to shut down and decommission the generating station.

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