Dollars (in millions)

	F2002	F2003	F2004	F2005	F2006	F2007	F2008
Plan	$317	$355	($49)	$406	$411	$395	$365
Actual	$403	$418	$111	$402	$266	$407

Net income is defined as total revenue less total expenses after regulatory account transfers, and represents the net impact of key economic and business factors that affect BC Hydro's performance. Regulatory account transfers reflect the financial impact of the factors beyond BC Hydro's control (such as water volatility, market prices, etc.).

For fiscal 2007, BC Hydro's results benefited from higher customer rates, increased consumption, higher energy trading income, lower energy costs and lower amortization expense. Water inflows were 10 per cent lower than the prior year (and 12 per cent lower than average) resulting in lower hydro generation than in the prior year, however required energy purchases were made at a lower unit cost per megawatt hour resulting in a reduction in the total cost of energy compared to the prior year.

BC Hydro's allowed rate of return for fiscal 2007 was 13.10 per cent, as approved by the BCUC in its rate decision of November 20, 2006 which translate to net income of $395 million. The allowed return on equity has been calculated to equal, on a pre-income tax basis, that of the most comparable investor-owned utility.