News Release

VANCOUVER – BC Hydro today announced its financial results for Fiscal 2009, including a consolidated net income of $366 million for the year ended March 31, 2009, which is comparable to the prior year's net income.

"Overall, our financial results for Fiscal 2009 are in line with expectations and I am very pleased that the energy saved through our Power Smart programs exceeded expectations," said Bob Elton, BC Hydro President and CEO. "We have also made good progress in our capital plan to upgrade aging assets to meet growing customer demand and improve system resiliency. Unfortunately, the economic downturn has affected many industries, especially forestry, which resulted in decreased demand for electricity from the industrial sector."

Other highlights of the Annual Report include:

• Domestic revenues were $2,814 million – $130 million lower than the previous year, primarily as a result of decreased revenue from the industrial sector mainly due to closures in the current year of pulp and paper operations in the forestry sector.
• Total energy costs of $2,393 million were $336 million higher than in the prior year. BC Hydro experienced a 14 per cent decrease in hydro generation over the prior year due to lower water inflows and system constraints, causing BC Hydro to purchase higher-priced market energy to meet domestic requirements.
• Energy saved through Power Smart programs surpassed expectation and continued to deliver cost-effective energy over the last fiscal year, producing cumulative energy savings of 983 GWh, an increase of 657 GWh over Fiscal 2008. This increased saving is equivalent to powering 65,700 homes for a year.
• Capital expenditures of $1,400 million in the year were $324 million higher than the previous year, primarily due to reinforcement work on the Vancouver Island transmission reinforcement project and generation replacements and expansion projects such as the Revelstoke Unit 5 installation to meet growing customer demand, and system improvements to the distribution network.
• Energy trading income increased in Fiscal 2009 mainly as a result of favourable electricity price spreads between the Northwest and Southwest and between the Northwest and Alberta during peak periods in the current year, and growth in natural gas trading activity over the previous year.
• Operating costs were $27 million lower in Fiscal 2009, primarily as a result of higher costs in the previous fiscal year for First Nations settlement provisions. These lower operating costs were partially offset by higher expenditures in the current year on demand side management and smart metering and infrastructure projects, higher maintenance costs to address equipment failures at the G.M. Shrum Generating Station, expenditures on Phase 2 of the Site C project, and higher levels of work in vegetation maintenance to improve system resiliency.

Contact:

Susan Danard
Media Relations
Phone: 604 623 4220