Newfoundland and Labrador Hydro (Hydro) is a Crown Corporation, owned by the Province of Newfoundland and Labrador. With a dedicated workforce of 1190 full-time equivalents, including Churchill Falls (Labrador) Corporation (CF(L)Co.), Hydro generates, transmits and distributes electrical power and energy to utility, industrial and residential customers throughout the Province.

Founded in 1954 as the Newfoundland Power Commission, with a mandate to promote rural electrification, Hydro was established as a Crown Corporation in 1975 and is currently governed by the Hydro Corporation Act and the Electrical Power Control Act. Hydro has a mandate to deliver reliable, least cost energy to the residents and industry in Newfoundland and Labrador.

Hydro is the parent company of the Hydro Group of Companies (Hydro Group) comprised of Newfoundland and Labrador Hydro, Churchill Falls (Labrador) Corporation Limited, Lower Churchill Development Corporation Limited (LCDC), Gull Island Power Company Limited (GIPCo.), and Twin Falls Power Corporation Limited (Twin Falls).

The Hydro Group's installed generating capacity is the fourth largest of all utility companies in Canada. Our power generating assets include 10 operating hydroelectric plants, one oil-fired plant, four gas turbines, 28 diesel plants and the Churchill Falls Hydroelectric Generating Station, the largest underground powerhouse in the world with a rated capacity of 5,428 megawatts (MW) of power. Hydro also maintains over 4,700 km of transmission lines and over 3,600 km of lower voltage distribution lines.

Every year, Hydro generates over 80 per cent of the electrical energy consumed by Newfoundlanders and Labradorians. We are an integral part of the Province's electrical system. Hydro also distributes power directly to 35,000 customers in rural Newfoundland and Labrador, which represents about 15 per cent of the Province's electrical consumers. The challenge of providing power to rural, and often remote, communities that experience challenging weather conditions cannot be overstated. It is a balancing act of cost and reliability to meet the expectations of our customers. We continue to strive for operating efficiencies while providing quality service to our customers and making the right strategic investments to maximize performance.

Hydro engaged in a number of important initiatives and achieved significant milestones in 2003. From a year of record sales, another multi-faceted rate hearing, to the commissioning of the Granite Canal Hydroelectric Generating Station, the past year has certainly reflected the complexity of our operating environment. Despite the challenges, we are proud of our record of service and we will strive for continual improvement in all areas of our operation as we meet the energy needs of Newfoundland and Labrador.

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