February 23, 2012
AltaLink Reports 2011 Results
CALGARY, ALBERTA--(Marketwire - February 23, 2012 )
Today, AltaLink, L.P. announced net income of $85.8 million for the year ended December 31, 2011, compared with $67.2 million for the year ended December 31, 2010. Net income for the fourth quarter of 2011 was $30.7 million, compared with $16.4 million for the same period in 2010. Revenue for the fourth quarter was $122.5 million, compared with $96.2 million in 2010. The increases are primarily due to the increase in our investments to reinforce and expand the transmission system as well as the impacts of recent regulatory decisions.
"Record levels of demand for electricity mirrored Alberta's strong economic growth in 2011," says Scott Thon, President & CEO. "To meet this demand we invested close to $700 million in the transmission grid to ensure Albertans have reliable power when they need it, access to new renewable electricity and the lowest priced electricity sources from which to choose."
As a partnership, AltaLink, L.P. reports its net income before income taxes; therefore its results are not directly comparable with net income reported by corporations that recognize income taxes in their financial statements.
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest independent transmission provider. The company is actively working with stakeholders to build new transmission projects in response to the province's growth thus ensuring the transmission system will meet Albertans' energy needs today and in the future. These projects will provide Albertans with access to clean, renewable electric energy and the lowest?priced electricity available in the province.
Western Alberta Transmission Line
AltaLink's Western Alberta Transmission Line (WATL), identified as critical transmission infrastructure, proposes to connect the generation?rich area west of Edmonton to Langdon, east of Calgary. In the last 20 years, Alberta has welcomed more than one million new residents and our demand for electricity has doubled, yet the backbone of the transmission system remains largely the same. In October 2011, the AUC suspended a planned public hearing at the request of the Alberta Minister of Energy on the WATL project and AltaLink ceased all but critical path work on the project. In January of 2012, an independent panel of experts, appointed by the Government of Alberta, the Critical Transmission Review Committee, reviewed plans for WATL and another proposed line. On February 13, 2012 the Committee released its report which recommended proceeding with the development of WATL. On February 23, 2012, the Government of Alberta announced that it had accepted the conclusions of the Committee, for reinforcement of the North?South transmission system, including the development of the WATL Project.
Heartland Region Transmission Development
The Heartland Region Transmission Development, identified as critical transmission infrastructure, includes significant system upgrades to meet the expected increase in electricity demand due to residential, commercial and industrial growth in the Heartland Region northeast of Edmonton. On November 1, 2011, the AUC approved the facility applications pertaining to the Heartland Region Transmission Development. Construction activities on the Heartland project are underway and are expected to be complete in 2013.
CWIP in rate base and impact on credit metrics
In Decision 2011?453, the Alberta Utilities Commission approved credit metric relief measures in our transmission tariffs for 2011 and 2012. These measures included "CWIP in rate base," which is the accelerated recovery of construction financing costs in the year in which such costs are incurred. Previously, such costs had been capitalized and recovered over the average lives of the related assets.
This news release does not constitute an offer to sell or the solicitation of an offer to buy AltaLink's securities in any jurisdiction, including but not limited to, the United States. AltaLink's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward looking information that represents management of AltaLink's Internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of AltaLink. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties, which may cause AltaLink's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include, among other things, those described in AltaLink's filings with the Canadian securities authorities. Accordingly, holders of AltaLink securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. AltaLink disclaims any responsibility to update these forward looking statements.
To review the 2011 Q4 Financial Statements, click here.
To review the 2011 Q4 Management's Discussion and Analysis, click here.
For more information please contact:
AltaLink Management Ltd. - Investor Relations
Vice President, Treasurer
AltaLink Management Ltd. - Media Relations