2007 annual report - report on performance - reliability - customer - Customer Growth

Customer Growth

For the past five years customer growth in B.C. has increased year over year, with over 30,000 new customers added in fiscal 2007. In the North, the major driver is the oil and gas industry, while the South Interior is experiencing rapid growth in resort-style subdivisions and tourism. Vancouver Island is seeing major residential growth driven by retirement and resort communities and vacation homes. The Lower Mainland is facing a major construction boom, driven by major infrastructure projects like the 2010 Olympics, the Canada Line transit project, and major highway improvements along with a surge in residential housing.

Demand Growth (with and without demand-side management)

Growth Rate (%)

	F2004	F2005	F2006	F2007
With DSM	2.6	1.6	2.7	1.3
Without DSM	3.1	2.9	3.7	2.0

The growth rate is calculated as the year-over-year change in domestic load. “Growth rate with Demand Side Management” refers to incremental Power Smart impacts beyond implemented Power Smart programs.

The decline in the growth rates in 2007 relative to 2006 is due to slower growing sales in the industrial sector. As well, sales in the residential sector in 2007 did not grow as quickly in 2006.

Customer Additions by Sector

Number

	F2005	F2006	F2007
Residential	22,259	27,096	28,741
Commercial and Light Industrial	2,246	2,451	3,306

Residential additions are the number of households; commercial and light industrial are tallied by number of accounts. The customer count excludes inactive accounts, multi-meter groups except the master, accounts with all meters removed and unmetered service when the revenue category is the same as the metered service.

Net additions account growth became stronger mainly due to the completion of apartments and townhouses in the beginning of this fiscal year. Stronger economic growth translated to into new business and new account growth in the commercial and light industrial sector.