Hydro Provides Update on Spending Reductions

Newfoundland and Labrador Hydro’s (Hydro) President and CEO Jennifer Williams, today provided an update on Hydro’s efforts to cut costs and find efficiencies.

Through a combination of reducing executive and full-time positions, eliminating redundancies, and implementing other cost cutting measures, Hydro has reduced its operating costs by approximately $19 million.

Cumulative cost cutting efforts include:

  • Reduction of executive positions by 50%: In the past year, Hydro’s executive structure has been significantly reduced. With the Muskrat Falls Generating Facility now commissioned and operational, the position of Vice-President, Power Generation, has been eliminated, effective immediately. In June of 2021, there were 18 executive positions budgeted. Executive reductions have occurred since last year and with the executive restructuring now complete, this brings the number of executive roles to nine.
  • Adjustments to compensation: In addition to the removal of “Executive Vice President” and “Senior Vice President” level positions, executive compensation has been adjusted, including elimination of executive vehicle allowances and performance bonuses for all senior level employees.
  • Cost Reduction measures: Hydro has eliminated redundancies, reduced travel costs, and other miscellaneous spending.
  • Absorbed inflationary pressures: Inflationary pressures have significantly impacted Hydro’s costs of goods and services for items such as vehicle fuel, insurance, and other operational expenses. Hydro has absorbed these costs.

“We’re now seeing the true transformation of the electricity grid, as we near final completion of the integration of the Lower Churchill Project assets. We still have challenges ahead of us, but many more exciting opportunities. The energy landscape is shifting dramatically. We must now turn our attention to preparing to meet the Federal net-zero electricity standard by 2035; supporting provincial efforts to switch from oil usage in our homes and businesses; preparing for increased use of electric vehicles; and supporting an industry looking for innovative ways to capture the wind-hydrogen opportunities available in our Province. Hydro is an enabler for business and industry in our Province, and we take that role seriously. We will work closely with Government and the Public Utilities Board to ensure we are well positioned and are able to step up to meet those needs responsibly”.

Jennifer Williams, President and CEO, Hydro