EC1(3) Trade Volume and Average Sales Price

	F2002	F2003	F2004	F2005	F2006	F2007
Electricity Trade Volume (GWh)	20,666	31,182	28,373	29,706	29,906	33,372
Average Sale Price (Dollars/MWh)	187	57	61	63	79	64

BC Hydro's electricity system is interconnected with systems in Alberta and the western United States. Interconnection facilitates sales and purchases of electricity outside British Columbia. Trade activities help BC Hydro balance its system by being able to import energy to meet domestic demand when there is a supply shortage in the system due to such factors as low water inflows and increasing domestic demand. Exports are made only after ensuring that domestic demand can be met.

Trade revenues for the year ended March 31, 2007 were $1,406 million, a decrease of $178 million from prior year trade revenues of $1,546 million. A large portion of the decrease was due to a 19 per cent reduction in the average sales price to $64/MWh in fiscal 2007 from $79/MWh in fiscal 2006. The decrease in electricity market prices was largely caused by low natural gas prices which were driven by a high level of North American gas storage that accumulated due to mild weather in the early months of 2006, and in the summer of 2006 as result of minimal hurricane activity. The lower gas prices impacted Western electricity prices, where Powerex conducts the majority of its trading. Partially offsetting the decrease in the average sales price was an increase in electricity sales volumes. Sales volumes increased by 12 per cent to 33,372 GWh in the year ended March 31, 2007 from 29,906 GWh in the prior year. The increase in the sales volumes over prior year is largely attributable to increased Northwestern to Southwestern price spreads in the spring and early summer.