Dollars (in millions)

	F2000	F2001	F2002	F2003	F2004	F2005 1	F2006 1	F2007 1
Operations & Administration Expenditures	344	N/A	N/A	302	358	471	538	404
Maintenance Expenditures	97	N/A	N/A	271	263	246	267	312
Total Operating Costs	441	755	550	573	621	717	805	716

Operations and administration expenses for fiscal 2007 were lower than the previous year primarily due to a decrease in demand-side management program expenditures, a provision made in the prior year for First Nations settlement costs of $88 million, lower employee related costs including a lower non-current service pension expense, and lower environmental remedition costs. This was offset by an increase in provisions for California litigation matters.

Maintenance expenditures were higher than the previous year primarily due to storm restoration costs incurred during several major storms which took place during the winter months and additional corrective maintenance and rewedging costs incurred for the generation assets.

Note 1: These years reflect the impact of Accounting Guidelines 19, Disclosures by entities subject to Rate Regulations, regarding the recognition and measurement of assets and liabilities subject to rate regulation.