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VANCOUVER – BC Hydro today announced its Fiscal 2007 financial results, including a consolidated net income of $407 million for the year ended March 31, 2007. BC Hydro's net income increased by $141 million over the previous year mainly due to changes in customer rates, increased consumption, higher energy trading income, and lower amortization expense.

"We met our financial and conservation targets this year, but we also experienced a few challenges with the series of major storms that occurred throughout British Columbia," said Bob Elton, BC Hydro President and CEO. "Looking to the year ahead, we plan to further foster a 'culture of conservation' with our customers and within communities, and we also plan to invest in critical components of our business to meet future challenges."

Net income includes the British Columbia Utilities Commission's approved customer rate increase of 3.64 per cent, a portion of which is to commence recovery of the balances in the energy deferral accounts.

Other highlights of the annual report include:

• Overall, total domestic revenues were $2,791 million, or $64 million higher than the previous year. There was strong demand in the residential and commercial sectors, including the addition of 28,741 new residential customers. This was partially offset by decreased revenue from the industrial sector due to the successful implementation of stepped rates, which encouraged industrial customers to reduce their energy consumption in order to receive a lower rate.
• Income from energy trading increased significantly in Fiscal 2007. BC Hydro purchased $1.1 billion of energy and was able to take advantage of high prices in the western North America region for sales of $1.4 billion.
• Operations costs for Fiscal 2007 were $107 million lower than the previous year. The decrease from the previous year was primarily due to a decrease in demand-side management program expenditures, and the provision for First Nations settlement costs made in Fiscal 2006.
• Maintenance costs for Fiscal 2007 were $45 million higher than the previous year. The increase was primarily due to the $37 million of storm restoration costs incurred during several major storms which took place during the winter months, and additional corrective maintenance costs incurred for the generation assets. BC Hydro recently received approval from the BCUC to establish a regulatory asset of $32.9 million for storm costs.
• Amortization expense was lower in Fiscal 2007 mainly due to a write-down of certain assets at the Burrard Thermal Generating Station.
• Capital expenditures increased by $197 million to $807 million in Fiscal 2007, due to work performed on BC Hydro heritage generating assets, including station refurbishments, stator replacements, turbine overhauls, seismic upgrades, and transmission expenditures for the construction of four new substations to meet customer load growth and increase our transmission capacity.
• 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 2,518 GWh.
• In February 2007, the provincial government released its BC Energy Plan. The Plan provides the energy policy direction for B.C. and guidance for BC Hydro's planning and operations. BC Hydro will play a leadership role in implementing many of the initiatives in the Plan. BC Hydro's planning for future growth is now well underway and will ensure that the natural competitive advantage that reliable electricity has provided to British Columbians is preserved for future generations.

For more information, view the full content of the 2007 Annual Report.

Contact:

Gillian Robinson Riddell

Media Relations

Phone: 604 623-4022

gillian.robinson@bchydro.com