Dollars (in thousands)

	F2003	F2004	F2005	F2006	F2007	F2008
Providing public drinking water	400	274	6.2	87	176	137
Strategic Research & Development (R&D)	3,400	3,287	3,000*	3,000*	2,628*	3,478
Total	3,800	3,561	1,480	87	176	3,615

* Actual results have been restated for F2005 through F2007 based on findings as a result of BC Hydro F2008 Regulatory Process.

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.