February 29, 2016
AltaLink’s strong year for projects delivers greater reliability and a greener future for Alberta communities
CALGARY, ALBERTA (Marketwired – February 29, 2016) – The December commissioning of the Western Alberta Transmission Line (WATL) capped a strong year for AltaLink in ensuring a reliable electricity network and helping prepare Alberta for a renewable energy future.
The first time WATL was energized to its current full capacity of 1,000 MW during testing, it carried wind-generated energy up from the Crosings substation east of Calgary to the Sunnybrook substation west of Edmonton.
“With WATL, the South Foothills Transmission Project and the Foothills Area Transmission Development all energized in 2015, we have completed the much-needed links to reinforce the grid, readying our grid to carry wind energy in southern Alberta to all areas of our province,” said Scott Thon, AltaLink president and CEO. “We are proud to have delivered each of these projects on or under budget.”
In 2015, AltaLink also moved forward with a plan to reduce costs to its customers by more than half a billion dollars in these difficult economic times. In June, the company submitted a proposal to the Alberta Utilities Commission (AUC) to amend its previously filed 2015-2016 General Tariff Application (GTA). If approved, the amendment will save Albertans more than $560 million between 2015 and 2017.
“We are actively seeking opportunities to reduce costs for customers,” said Thon. “In our proposal, Alberta residents and business owners will pay hundreds of millions of dollars less for our transmission service during this three-year period, including savings of more than $100 million for residential customers alone.”
AltaLink announces 2015 year-end financial results
Today, AltaLink, L.P. announced comprehensive income for 2015 was $209.8 million compared to $215.7 million for 2014. Comprehensive income was $65.7 million for the quarter ended December 31, 2015 compared with $66.3 million for the same period in 2014. Despite AltaLink’s capital investment in 2015, the Generic Cost of Capital decision in Q1 2015 reduced annual net income by $40 million in a market noted for the lowest return on equity (ROE) in Canada. Revenue for 2015 was $829.1 million compared to $728.5 million in 2014. Revenue for the quarter was $241.4 million compared to $219.0 million in 2014. Revenue growth is primarily due to the increase in our investments to expand and reinforce the Alberta transmission system.
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.
AltaLink's full financial results and management's discussion and analysis can be found on AltaLink's website at www.altalink.ca or on SEDAR at www.sedar.com.
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest electricity transmission provider. We are committed to meeting the province’s demand for electricity, providing innovative solutions, and partnering with our stakeholders and communities in doing so. A wholly-owned subsidiary of Berkshire Hathaway Energy, AltaLink is part of a global group of companies delivering electricity and utility services to customers worldwide.
Significant 2015 highlights
- We achieved our best safety results with only one employee incident and a 44% reduction in contractor incident frequency rates and earned the Canadian Electricity Association’s Safety Excellence Award for the second year in a row;
- We earned comprehensive income of $209.8 million (2014 - $215.7 million) which includes the impact of the AUC’s GCOC Decision;
- We completed capital additions of $3.0 billion (2014 - $1.1 billion) to expand the capacity of the power grid, ensure a reliable electricity network and help prepare Alberta for a renewable energy future;
- We energized the Foothills Area Transmission Development, South Foothills Transmission and Ipiatik Projects ahead of schedule and on or under budget.
- Our customer satisfaction results for new connecting customers and existing customers connected to the grid improved from 2014, including a 100% customer satisfaction rating from connecting customers in Q3 and Q4;
- We filed for a reduction of $561.0 million in our 2015-2017 tariff in the 2015-2016 GTA to reduce electricity costs to customers;
- We recorded an industry leading employee engagement score of 83%; and
- We asked the AUC for approval to issue subordinated debt in lieu of medium term notes to enable us to take further action in reducing electricity costs to customers.
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", "intends", "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.
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