Dollars (in millions)

	F2005	F2006	F2007	F2008	F2009
Plan	$406	$411	$395	$365	$358
Actual	$402	$266	$407	$369

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 2008, BC Hydro's results benefitted from higher customer rates, increased consumption, lower energy costs and lower amortization expense. Water inflows were 29 per cent higher than the prior year (and 14 per cent higher than average) resulting in greater hydro generation than in the prior year, reducing the volume of energy purchases acquired to meet domestic requirements, which lowered the overall cost of energy.

BC Hydro's allowed rate of return for fiscal 2008 was 12.05 per cent, as approved by the British Columbia Utilities Commission (BCUC) in its rate decision of November 20, 2006 which translate to net income of $369 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.