Dollars (Millions)

	1998/1999	1999/2000	2000/2001	2001/2002	2002/2003	2003/2004
Net Long Term Debt	7,491	7,005	6,214	6,889	6,849	6,853

(net of sinking funds and cash and cash equivalents)

Consists of long-term debt, including the current portion, net of sinking funds and cash and cash equivalents. Long-term debt has decreased by $152 million in the last five years. During the year, BC Hydro redeemed bonds totaling CDN $450 million. These redemptions were largely financed through the issuance of five Canadian bonds and one U.S. bond totaling CDN $790 million. The increase in long-term debt for 2003/2004 was partly offset by reduced revolving borrowings and the impact of the stronger Canadian dollar, which reduced the Canadian equivalent of U.S. dollar denominated debt by approximately $270 million. BC Hydro maintains a portion of its core debt portfolio in U.S. dollars to match U.S. interest payments to U.S. dollar revenue received from export sales and to take advantage of the generally lower U.S. interest rates.