EC3(5) Cost of Heritage Electricity to Distribution
Dollars per Megawatt Hour
| Performance Measure | 03/04 | 04/05 | 05/06 |
| Cost of Heritage Electricity to Distribution (targets) | N/A | 25.60 | 23.76 |
| Cost of Heritage Electricity to Distribution (actuals) | 26.27 | 28.11 | |
| Adjusted Cost of Heritage Electricity to Distribution | N/A | 24.79 | |
| Definition | Subsequent to publishing the February 2004 BC Hydro Service Plan, the measures related to Generation Line of Business net income and cost per megawatt hour have been modified to reflect the Heritage Contract. As well, the methodology for allocating finance charges to the Lines of Business (including Generation) has changed since the publishing of the 2004 Annual Report where $25.93 per MWh for 2003/2004 was quoted. Generation currently uses two related measures: Unit Cost of Heritage Electricity to Distribution expressed in dollars per MWh; and, the Adjusted Cost of Heritage Electricity to Distribution. The actual cost of Heritage Electricity to Distribution is computed by dividing total Generation net costs (all costs less Skagit and miscellaneous revenues plus return on equity) by the volume of electricity supplied to Distribution. The second measure removes cost of energy variances related to changes in load from plan and costs eligible for transfer to regulatory deferral accounts. | ||
| Variance Explanation | Actual costs are over plan due to increased deliveries to Distribution that resulted in increased electricity purchases at higher unit costs than plan offset by below plan, depreciation, finance charges, and taxes. The adjusted cost of heritage electricity variances are a result of below plan depreciation, finance charges, and taxes. | ||
| Benchmark Comparison | No benchmark data available. | ||
Last Modified: Jun 29, 2005
