Percentage

	F2004	F2005	F2006	F2007	F2008
Target	20	20	20	20	20
Actual	20	20	23	21

Asset Health Risk Index is defined as the percentage of Distribution wire assets rated in fair or poor health through an annual assessment of its asset health. Assets in good health are expected to perform its intended function for the next 10 years. Assets in fair health are those that will have an adverse impact on BC Hydro's operations within the next 10 years unless an appropriate management program is in place. Assets in poor health are those that require immediate attention and for which an active program is in place to mitigate the risk.

The Asset Health Risk Index improved in fiscal 2007 and was close to meeting target due to improved health in the overhead and underground distribution system offsetting declining health in vegetation brought about by the mountain pine beetle problem and trees weakened by wind and snow storms in the fall 2006 and winter 2007. Improved health in the overhead and underground distribution system is the result of applying a more rigorous assessment methodology as well as prioritized funding to address declining health in specific asset types in order to ensure system sustainability over the long term.