May 8, 2023
AltaLink files application to keep rates flat for a sixth consecutive year
CALGARY, ALBERTA (Globe Newswire – May 8, 2023) – AltaLink continues to focus on ensuring the affordability and reliability of its transmission service to its millions of Alberta customers. On April 28, AltaLink submitted an application to the Alberta Utilities Commission proposing to extend through 2024 its commitment to keep its transmission rates below 2018 levels. If approved, this would be the sixth consecutive year without an increase from 2018 costs.
“The cost of electricity has risen sharply in Alberta during the past two years and residents and businesses are feeling the pressure of that increase,” said Gary Hart, AltaLink President and Chief Executive Officer. “While the price of energy has more than doubled during that time, our team remained dedicated to keeping the cost of our transmission system below 2018 rates without impacting reliability.”
AltaLink files a General Tariff Application with the Alberta Utilities Commission (AUC) every two years to review the costs it requires to operate the transmission system that supplies millions of Albertans with their electricity. Through a public process, the AUC tests AltaLink’s forecast to ensure Albertans receive value from the company’s transmission system.
“No other regulated utility in Alberta has matched our commitment to customers to keep costs flat for five years,” said Mr. Hart. “Albertans expect us to work hard to deliver value for their money. We’re proud that we’ve been able to extend our commitment to keep rates flat for an additional year beyond our initial five-year promise.”
AltaLink’s latest application is for the 2024 and 2025 calendar years. During the second year of the application, AltaLink has requested a less than one per cent increase over its 2024 requirement to deliver energy safely and reliably through its transmission system.
AltaLink announces 2023 first quarter financial results
Today, AltaLink, L.P. announced comprehensive income of $72.8 million for the three months ended March 31, 2023, compared to $75.3 million for the same period in 2022. The decrease is primarily due to higher interest expense as a result of higher interest rates on short-term debt, and the equity return on a lower rate base.
Revenue from operations for the three months ended March 31, 2023, was $236.7 million compared to $237.5 million during the same period in 2022. Our revenue from operations decreased by 0.3% or $0.8 million for the three-month period primarily due to the recovery of lower salvage expenses and the returns on a lower rate base.
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 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 highlights during the first quarter of 2023
AltaLink’s safe delivery of affordable and reliable electricity for its customers highlights its first quarter of 2023 results:
- On April 28, 2023, we extended our commitment to our customers for a sixth consecutive year by filing our general tariff application which will maintain our 2024 tariff below the 2018 level of $904 million. We also applied for less than a one per cent increase to our 2025 tariff. In the first quarter of 2023, we continued to fulfill our commitment to customers by controlling our costs despite inflation to deliver affordable transmission services to customers.
- We had zero employee injuries, representing a total recordable injury frequency rate of zero, matching our performance for the same quarter in 2022.
- In February 2023, we ratified a two-year agreement with the United Utility Workers' Association of Canada (UUWA) for 2022 and 2023.
- We achieved a customer satisfaction average score of 9.16 out of 10 compared to 9.43 for the same quarter in 2022; however, we remain in line with the top quartile of Electricity Canada member utilities.
- Our reliability of service was impacted by a couple of unique outages caused by third parties and wildlife. Therefore, our customer outage duration of four minutes was higher compared to two minutes for the same quarter in 2022, and more in line with our average performance over the past five years.
- We earned net and comprehensive income of $72.8 million compared to $75.3 million for the same quarter in 2022. Our income decreased mainly due to higher interest expense as a result of higher interest rates on short-term debt, and the equity return on a lower rate base.
- We invested $61.1 million in capital assets compared to $57.0 million for the same quarter in 2022 primarily to ensure continued electric system reliability.
- On April 5, 2023, S&P reaffirmed its issuer credit rating and senior secured rating on AltaLink at “A” with a stable outlook. An “A” rating allows us to keep debt financing costs low for our 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.
FOR FURTHER INFORMATION
Vice President, Treasurer
AltaLink Management Ltd.