EC12(1) Total Spending with Significant Indirect Economic Impacts

Dollars (in thousands)

	F2002	F2003	F2004	F2005	F2006	F2007
Providing public drinking water	872	400	274	6	87	176
Strategic Research & Development (R&D)	3,700	3,400	3,287	1,474	997	1,215
Total	4,572	3,800	3,561	1,480	1,084	1,391

Spending shown is for operation, maintenance and overhead costs (net of revenues) and does not include depreciation on capital expenses or external funding leveraged as a result of initial investment by BC Hydro.

BC Hydro provides domestic drinking water to generating stations, substations, town sites, recreation sites, visitor centres, and to four communities in the Arrow Lakes water system. Amounts shown include costs (net of revenues), and capital spending.

The purpose of Research & Development at BC Hydro is to develop technologies that will earn maximum ratepayer value and return on future operations. We do this by partnering with internal business units and external partners such as learning institutions, other utilities, other energy and technology companies, and industry research organizations such as the Electric Power Research Institute and the Canadian Electricity Association. Objectives and performance measures are developed for each project to ensure that business needs are met and project accountability is clear. Amounts shown for fiscals 2005 and 2006 have been corrected to account for program refunds.