"We improved in all areas of keeping the lights on for Albertans. During 2012, we reduced both the number and duration of outages for customers while Alberta's demand for electricity continued to grow," said Dennis Frehlich, AltaLink's Interim President and Chief Executive Officer.
Alberta set new peak electricity demand records for both the summer and winter periods in 2012. Through cost-effective construction of new system and customer projects, AltaLink is continuing to enable Alberta's economic growth. After building and energizing more than 20 projects during 2012, AltaLink's current construction program includes the Western Alberta Transmission Line, the Heartland Transmission Project, and projects included in the Southern Alberta Transmission Reinforcement.
"The construction and operation of new transmission projects is essential to providing reliable transmission service and enabling lowest cost energy to consumers," said Frehlich.
In 2012, Alberta's electricity prices averaged $64.32/MWh, a 16% reduction from 2011.
AltaLink announces 2012 financial results
Today, AltaLink, L.P. announced comprehensive income for 2012 was $107 million compared to $85.3 million for 2011. Comprehensive income was $31.3 million for the quarter ended December 31, 2012, compared with $30.3 million for the same period in 2011. Revenue for 2012 was $406.6 million compared to $365.6 million in 2011. Revenue for the quarter was $119.8 million compared to $122.5 million in 2011.
AltaLink invested $974.7 million in capital projects to expand and maintain the transmission grid in 2012. AltaLink financed these projects with long-term debt issued at record low interest rates, combined with reinvestment of earnings and equity financing by our owners.
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 transmission provider. The company is actively working with stakeholders to build more than 40 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 supply available in the province.
Significant Q4 Events
Western Alberta Transmission Line project approved
On December 7, 2012, the Alberta Utilities Commission approved AltaLink's Facility Application for the Western Alberta Transmission Line, a 500 kV Direct Current transmission line connecting the Genesee area west of Edmonton to the Langdon area east of Calgary. The $1.4 billion project will ensure Albertans have access to reliable, low-priced electricity while improving the overall efficiency of Alberta's transmission system. AltaLink forecasts the project to be in service in April, 2015.
Regional projects are energized
Five customer related projects were energized during the fourth quarter of 2012, including the Thompson substation, the Kirby substation, the Athabasca Telecom projects, the Westwood substation, and the Leduc transmission line and substation. Together, these projects improve the reliability of the transmission system and support economic growth throughout central Alberta.
Yellowhead Area Transmission Reinforcement projects energized
On October 31, 2012, the Yellowhead Area Transmission Reinforcement projects were completed and energized. Built to support the growing demand for electricity in the northwest region, the projects included a new substation, eight kilometres of new line, upgrades to four existing substations, upgrading more than 100 kilometres of existing transmission lines, and a new telecom tower.
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.
Vice President, Treasurer
AltaLink Management Ltd.
Phone: 403 267-3446
Director, External Engagement
AltaLink Management Ltd.
Phone: 403 267-2176