November 6, 2017
Approval of first-of-its-kind negotiated settlement highlights AltaLink’s third quarter results
CALGARY, ALBERTA (Globe Newswire – November 6, 2017) – AltaLink’s drive to save Albertans’ money has delivered hundreds of millions of dollars in cost savings between 2015 and 2018. During the third quarter of 2017, the Alberta Utilities Commission (AUC) approved a negotiated settlement for AltaLink’s general tariff application, which increases the total savings to more than $650 million over the four-year period.
The settlement AltaLink negotiated with customers was approved on August 30. The first-of-its-kind agreement between an Alberta transmission company and consumer groups representing Alberta’s industrial, commercial and residential customers will save Albertans more than $50 million during 2017 and 2018.
"AltaLink is committed to finding opportunities to reduce the overall cost of energy and keep more money in the hands of our customers,” said Scott Thon, President and Chief Executive Officer of AltaLink. “I am proud of how our team has improved the way we work with our customers and managed our business to reduce costs and deliver the electricity the province needs.”
"Every Albertan with an electricity bill will benefit from our commitment to reduce our costs and create value on our transmission system,” said Thon.
In the negotiated settlement, AltaLink and its customers agreed to a reduction of $15.5 million in operating costs and $5 million in other cost savings during 2017 and 2018. As part of the agreement, AltaLink will also refund an additional $31.4 million of previously-funded depreciation costs as the company’s newly constructed transmission towers are expected to have longer lives.
October storm response highlights AltaLink commitment to reliability
On October 2, an early autumn snowstorm damaged transmission structures and disrupted service to thousands of customers in southeast Alberta. Restoration efforts were hampered by dangerous weather and road conditions.
"This was one of the worst storm events we’ve seen on our system in the last decade,” said Thon. “Our team, along with our partners, worked long hours to rebuild structures and restore power to customers as quickly as possible. We want to thank the people of southeast Alberta for their patience and understanding as we got the lights back on.”
AltaLink announces 2017 third quarter results
AltaLink continues to invest in transmission facilities to ensure the reliability of the electricity grid and to help enable Alberta’s transition to a greener energy future. During the third quarter of 2017, AltaLink invested $156.9 million into its transmission system.
Today, AltaLink, L.P. announced net and comprehensive income of $85.8 million for the quarter ended September 30, 2017 , compared to $78.7 million during the same time period in 2016. The increase is primarily due to the increased investment in our electricity transmission infrastructure.
Revenue from operations for the third quarter of 2017 was $238.4 million compared to $235.3 million during the same period in 2016. Compared to the same period in 2016, revenue from operations increased by $3.1 million for the three months ended September 30, 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 Q3 2017 highlights
During the three months ended September 30, 2017:
- On August 30, 2017, AltaLink received a decision from the Alberta Utilities Commission approving a negotiated settlement agreement with our customers for our 2017-2018 General Tariff Application. Along with more than $50 million in customer savings in 2017 and 2018, the customer and AltaLink negotiated settlement agreement also allows us to equally share with our customers certain additional cost savings we may achieve in 2017 and 2018;
- We earned net and comprehensive income of $85.8 million (three months ended September 30, 2016 - $78.7 million). Our net income increased year over year due mainly to our increased regulatory capital investment;
- Reliability of service provided to customers in the third quarter of 2017 was generally consistent with the same period in 2016 despite more adverse weather-related events;
- Our employee and contractor safety results for the first nine months of 2017 are consistent with the same period in 2016. Employee safety performance remained strong in the third quarter with no lost time accidents or medical aid incidents;
- Customer satisfaction of direct customers was 95%, which is an improvement over the same period in 2016;
- We invested $156.9 million (three months ended September 30, 2016 - $147.9 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.