November 5, 2018
AltaLink files application to keep transmission rates flat for 2019-2021
CALGARY, ALBERTA (Globe Newswire – November 5, 2018) – AltaLink has kept its commitment to customers to keep its rates flat by filing its 2019-2021 General Tariff Application (GTA) with the Alberta Utilities Commission (AUC) on August 23, 2018. The application requests to keep AltaLink’s rates at or below its 2018 rates for the next three years. AltaLink is on target to deliver on its commitment to customers with the rate levelization strategies included in its application to the AUC.
“We’ve made a commitment to our customers that we would maintain or reduce our 2019 to 2023 rates from the level we negotiated with customers in 2017,” said Scott Thon, AltaLink’s President and Chief Executive Officer. “As our economy continues to recover, we know Albertans need affordable and predictable prices for the energy that powers their lives. With this application, we are setting the standard in Alberta and delivering on our promise to file an application that, subject to AUC approval, will maintain affordable costs during the first three years of our five-year commitment.”
All Alberta transmission utilities are required to file a GTA with the AUC. The application outlines the regulated revenue requirement to operate the business on behalf of Albertans. The public process for the review and approval of the application will take place in late 2018 and 2019.
“Following our first-ever negotiated settlement between a transmission company and its customers in 2017, we are proud to have delivered another important milestone for our customers,” said Thon. “The transmission system is critical to Alberta’s economy. We need to ensure that we carefully control costs and maintain affordable energy for every home, farm and business in our province.”
AltaLink announces 2018 third quarter financial results
AltaLink continues to invest in transmission facilities to ensure the reliability of the electricity grid. During the third quarter of 2018, AltaLink invested $72.6 million in its transmission system.
Today, AltaLink, L.P. announced comprehensive income of $81.1 million for the quarter ended September 30, 2018, compared to $85.8 million for the same period in 2017. Revenue from operations for the third quarter of 2018 was $234.9 million compared to $238.4 million in 2017, a decrease of $3.5 million. The change for both comprehensive income and revenue is primarily a result of recording certain revenues in the third quarter of 2017 related to obtaining AUC approval of the 2017-2018 GTA on August 31, 2017.
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 third quarter 2018 highlights
During the three months ended September 30, 2018:
- On August 23, 2018, we filed our three-year 2019-2021 General Tariff Application with the Alberta Utilities Commission, delivering on our commitment to keep rates flat for customers for the next five years;
- On August 2, 2018, the AUC issued a decision on the 2018 Generic Cost of Capital proceeding. The AUC set the generic rate of return on common equity at common equity 8.5% and AltaLink’s common equity ratio at 37% for 2018, 2019, and 2020;
- We earned net and comprehensive income of $81.1 million (three months ended September 30, 2017 - $85.8 million). Our net income decreased mainly as a result of recording certain revenues in the third quarter of 2017 related to obtaining AUC approval of the 2017-2018 GTA on August 31, 2017;
- In the third quarter of 2018, customer satisfaction was 97 per cent, which is an improvement compared to 95% in the same period of 2017;
- Reliability of service provided to customers in the third quarter of 2018 compared favourably to the same period in 2017 with efficient emergency restoration practices addressing summer storm events and an overall reduced frequency of outages. As a result, AltaLink’s year-to-date 2018 customer outage time was 23 minutes compared to 29 minutes for the same period in 2017;
- Our year-to-date employee safety performance as measured by the total recordable injury frequency rate was 0.36, representing two injuries, compared to 0.17, representing one injury, for the same period in 2017;
- We invested $72.6 million (three months ended September 30, 2017 - $156.9 million) in capital assets to ensure continued reliability of the electricity network; and
- On July 10, 2018, DBRS reaffirmed its senior secured ratings on AltaLink at “A” with a stable trend. An “A” rating allows AltaLink to continue to provide low-cost debt financing 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 more information please contact:
Vice President, Treasurer
AltaLink Management Ltd.
Vice President, Communications
AltaLink Management Ltd.