Percentage

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

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.

Performance result compares unfavourably against target due to declining health in vegetation and underground system offsetting improvement in overhead wires and related equipment. In particular, the mountain pine beetle infestation which was not an issue in prior years became an emerging problem in F2006 and its impacts have been factored into the vegetation health assessment, contributing about two per cent to the overall index. As well, a more rigorous assessment of the underground system has indicated a higher proportion of assets requiring near-term attention than previously estimated. Going forward, funding will be prioritized as appropriate to address the underground asset health to ensure system sustainability over the long term.