August 7, 2015
More than half a billion dollars in proposed customer savings and enabling more clean wind energy for Albertans highlight AltaLink's Q2 activities
CALGARY, ALBERTA (Marketwired - August 7, 2015) - On June 1, AltaLink submitted a proposal to the Alberta Utilities Commission (AUC) to save Albertans more than $550 million between 2015 and 2017.
"We know that Albertans expect reliable and affordable transmission service to power their homes, farms, businesses and industry," said Scott Thon, AltaLink's president and chief executive officer. "With this proposal, we're able to deliver savings and reliable service to all of our customers."
AltaLink is proposing to change the existing regulated capitalization and tax treatment of its business to significantly reduce costs to Albertans without impacting the reliability of the transmission system. This submission amends AltaLink's previously filed 2015-2016 General Tariff Application (GTA), which outlines AltaLink's proposed costs over the two-year period. The submission also commits to further savings for customers in 2017.
New transmission lines to support renewable energy energized below approved costs
AltaLink's second quarter included the completion of two important links in bringing more clean wind energy to Albertans. Two components of the Foothills Area Transmission Development (FATD), North Foothills Transmission Project (NFTP) and Langdon to Janet, were energized this spring and will connect with the South Foothills Transmission Project (SFTP), expected to be energized later this year, to provide increased grid capacity for wind generators in Southern Alberta.
"These projects are key to meeting Albertans' expectations for renewable energy," said Scott Thon, AltaLink's president and chief executive officer. "This was a strong quarter for project cost reduction with various projects energized ahead of schedule and below approved budgets. I'm very proud of AltaLink employees and their commitment to finding cost efficiencies in these key projects."
The North Foothills Transmission Project demonstrates AltaLink's efforts to improve land use by featuring the longest stretch of triple circuit structures in its network. This 13 kilometre section consolidates two 240 kilovolt (kV) circuits and a 138 kV circuit on the same structure to optimize the available land by reducing the width of the right of way. By eliminating the need for a separate right of way for the 138 kV line, AltaLink used approximately 64 fewer acres of land for this project.
AltaLink announces second quarter financial results
Today, AltaLink, L.P. announced net income of $58.3 million for the quarter, compared with $49.0 million for the same period in 2014. Revenue for the quarter was $210.0 million compared to $168.5 million in 2014. The growth is primarily due to the increase in our investments to expand and reinforce the reliability of the 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 Q2 highlights
- AltaLink has developed a proposal to save $555 million for customers by reducing the rates to be paid by them over the 2015-2017 period;
- AltaLink delivered significant project cost savings on three large projects (Langdon to Janet, Northwest Upgrader and North Foothills Transmission Development) that were energized ahead of schedule and below the approved budgets;
- AltaLink invested $288.0 million in capital projects to expand the capacity of the power grid, reinforce the system's reliability, and interconnect new customers; and,
- AltaLink continued to have a very favourable safety record, with no employee injury incidents during the second quarter.
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.
Director, External Engagement
AltaLink Management Ltd.