The company has just reported that its earnings of C$8M (US$7.5M) in Q2 were comparable to the same period in 2006, the additional revenue from electricity sales being offset by lower allowed return-on-equity plus higher depreciation expenses.
Operating costs were flat but the company, which is owned by the Fortis group, commented that there is upward pressure on the expenses.
Last year Newfoundland Power signalled that it planned to refurbish the Rattling Brook power plant at a cost of C$18.8M (US$17.7M) as the facility requires extensive upgrading.
The capital spend at rattling Brook is the firm's biggest ever on a single project, but the refurbishment should enable it to provide an oil displacement equivalent of approximately 10,500 barrels per year, it said.
Elsewhere in the Fortis group other hydro assets are both held and under development. In May, Fortis announced that another subsidiary, Becol, has been given the green light to build the 18MW Vaca project in Belize.
