EC3(3) Sustaining Capital Ratio
Percentage
F2003 | F2004 | F2005 | F2006 | |
| Target | 1 – 2 | 1 – 2 | 1 – 2 | 1 – 2 |
| Actual | 1 | 1.2 | 1.1 | 1.1 |
Definition
Sustaining Capital Ratio is the sustaining capital expenditures as a percentage of replacement value of capital assets. It is a predictive measure of service performance. Its purpose is to indicate BC Hydro’s future ability to maintain high system reliability by ensuring business-sustaining investment to maintain the health of its assets.
Variance Explanation
The Sustaining Capital Ratio is in the lower end of the target range. While capital spending was greater than in F2005, replacement cost has also increased.
Benchmark Comparison
No benchmark data available.
