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VANCOUVER – BC Hydro today announced its first quarter financial results  [PDF, 295 Kb] for fiscal 2008, reporting a consolidated net income of $5 million for the quarter ended June 30, 2007, an increase of $5 million over the breakeven results of the previous year.

"Overall, our results for the first quarter of fiscal 2008 are in line with the same quarter last year," said Alister Cowan, BC Hydro Executive Vice-President and Chief Financial Officer. "Our capital expenditures increased significantly as we continue to focus on expanding our system to meet increased demand and upgrade assets nearing the end of their life. BC Hydro's net income for fiscal 2008 is forecast to be approximately $365 million."

Key financial highlights of the first quarter include:

• Domestic revenues of $666 million were $51 million higher than last year, primarily due to strong demand in the residential and commercial sectors. This was the result of 31,388 new customers (8 large industrial) during the first quarter and average temperatures that were 14 per cent cooler than in fiscal 2007.
• Water inflows were 19 per cent higher than the last year, which increased hydro generation and in turn reduced energy purchases compared to fiscal 2007. BC Hydro customers benefit from this by a reduction in the amount still to be paid by customers for higher energy purchases in prior years due to low water inflows.
• Amortization expense was lower in the quarter ended June 30, 2007, due to a one-time adjustment in the prior year to net book values based on the results of a Depreciation Study undertaken in the first quarter of fiscal 2007.
• Capital expenditures increased by $76 million to $223 million due to work performed on BC Hydro heritage generating assets, including capacity improvements, stator replacements, turbine overhauls, seismic upgrades, and transmission expenditures for replacement and reinforcement work on the Vancouver Island transmission connection to meet growing customer demand.
• Energy saved through Power Smart programs surpassed expectations and continued to deliver cost-effective energy over the last fiscal year, producing cumulative energy savings of 2,547 GWh.

Other non-financial highlights for the first quarter include:

• At the end of May, BC Hydro filed a Winter Storm Report to the B.C. Utilities Commission (BCUC), which included a detailed analysis of the major storms, the total cost of restoration, and a strategy to improve system resiliency and customer communications for the next storm season.
• In June, BC Hydro released the draft terms and conditions for its Standing Offer Program, which offers a set price and a standard contract to projects that produce up to 10 megawatts of electricity, using proven clean, renewable or cogen technology.
• Also in June, an Environmental Assessment Certificate was issued for a fifth generating unit at the Revelstoke Dam and Generating Station. In July, the BCUC approved a Certificate of Public Convenience and Necessity for Revelstoke Unit 5. Construction of the project is scheduled to begin in late 2007, with a targeted in-service date of 2010.

Contact:

Gillian Robinson Riddell

Media Relations

Phone: 604 623-4022

gillian.robinson@bchydro.com