Percentage

	F2002	F2003	F2004	F2005	F2006
Actual return on equity	15.24	15.47	3.74	14.24	9.26
Allowed return on equity*	15.24	15.47	14.33	13.91	13.51

Equity is the sum of retained earnings, deferred revenue, contributions arising from the Columbia River Treaty and contributions in aid of construction, all at the end of the year.

*BC Hydro's 2006 Rate of Return was approved by the Commission in its last rate decision of October 29, 2004. The allowed return on equity has been calculated to equal, on a pre-income tax basis, that of the most comparable investor-owned utility.