May 8, 2017
First-of-its-kind negotiated settlement on rates highlights AltaLink’s first quarter of 2017
CALGARY, ALBERTA (Marketwired – May 8, 2017) – During the first three months of 2017, AltaLink and its customers reached a first-of-its-kind settlement, which if approved by the Alberta Utilities Commission (AUC) will save Albertans up to $150 million in 2017 and 2018.
“We have made a commitment to our customers to find new ways to reduce costs without impacting the reliability of the system,” said Scott Thon, AltaLink President & Chief Executive Officer. “With this recent negotiated settlement and our previously approved rate relief proposal, we will save our customers – the ratepayers of Alberta – up to $750 million between 2015 and 2018 and provide opportunities for future savings.”
Introduced in its last rate application, AltaLink’s rate relief proposal reduced its tariff by $600 million over the 2015-2018 time period. With up to $150 million in cost reductions as part of the negotiated settlement combined with AltaLink’s rate relief proposal, customers will benefit from up to $750 million in total savings over four years.
AltaLink announces 2017 first quarter financial results
Today, AltaLink, L.P. announced net income for the quarter ended March 31, 2017, was $83.1 million, compared to $67.7 million during the first three months of 2016. Compared to the same period in 2016, our comprehensive income for the three months ended March 31, 2017 increased by $15.4 million, primarily due to an increased return from our investment in electricity transmission infrastructure. Operating revenue for the first quarter of 2017 was $237.6 million compared to $218.4 million during the same period in 2016. Compared to the same period in 2016, our revenue from operations increased by $19.2 million for the three months ended March 31, 2017. The change is primarily due to the amounts we invested in capital assets.
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. AltaLink is partnering with its customers to provide innovative solutions to meet the province’s demand for reliable and affordable energy. A wholly-owned subsidiary of Berkshire Hathaway Energy, AltaLink is part of a global group of companies delivering energy services to customers worldwide.
Significant Q1 2017 highlights
During the three months ended March 31, 2017:
- We earned net and comprehensive income of $83.1 million (three months ended March 31, 2016 - $67.7 million). Our net income increased mainly due to our increased regulatory capital investment;
- On January 26, 2017, Standard & Poor’s confirmed an “A” rating on our Medium-Term Notes;
- We reached a negotiated settlement agreement with customer groups on our 2017-2018 tariff application to provide up to $150 million of additional rate relief for customers, and filed a related application for AUC approval on February 8, 2017;
- Reliability of service provided to customers in the first quarter continued to be better than our average past performance outside of one single event that happened on a radial line in a remote area that makes up 40% of year-to-date outage hours;
- Employee safety performance remains strong in the first quarter with no lost time or medical aid incidents;
- Customer satisfaction of Direct Customers was 78%;
- We energized the Red Deer Project 755L transmission line; and
- We invested $134.4 million (three months ended March 31, 2016 - $149.1 million) in capital assets to ensure continued reliability of the electricity network and help enable Alberta’s renewable energy future.
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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For more information please contact:
Vice President, Treasurer
AltaLink Management Ltd.
Vice President, Communications
AltaLink Management Ltd.