November 7, 2022
AltaLink continues to deliver on its commitment to keep its rates flat for five years
Looking to an energized future, AltaLink remains focused on affordable and reliable service for its customers
CALGARY, ALBERTA (Globe Newswire – November 7, 2022) – AltaLink continues to achieve best-ever customer satisfaction with a year-to-date average score of 9.62 out of 10. This includes achieving a score of 9.35 based on the value for money that it delivers to its customers, an ongoing focus for AltaLink.
Since 2015, AltaLink has reduced customer costs by $1.4 billion through a number of tariff levelization initiatives and customer refunds, while at the same time delivering on a commitment it made in 2018 to keep its rates flat for five years through 2023.
“I am proud of the work our team has done in delivering outstanding service for our customers while managing costs and keeping our rates flat,” said Gary Hart, AltaLink President and Chief Executive Officer. “As Albertans are feeling the pressure of high energy prices, we continue to seek opportunities to reduce costs now and as we look to Alberta’s electricity future.”
AltaLink’s commitment was on display at its annual Let’s Connect customer event, where it hosted 100 of its customers and industry partners to discuss the theme of energizing the future and achieving a net-zero grid while remaining focused on delivering reliable, low-cost power to Albertans.
The federal government has a goal to reach net-zero emissions across Canada by 2050, but there is an earlier target for the electricity grid to achieve net-zero by 2035 and the transmission system will be critical in enabling the transition.
“In the pursuit of net-zero emissions by 2035 and the increasing electrification of our society, electricity will play a larger role in our lives than ever before,” said Mr. Hart. “Industry collaboration is critical to ensure that we can look to the future while delivering reliable and affordable electricity that Albertans expect and deserve.”
AltaLink announces 2022 third quarter results
AltaLink continues to invest in transmission facilities to ensure the reliability of the electricity grid. During the third quarter of 2022, AltaLink invested $34.8 million in its transmission system.
Today, AltaLink, L.P. announced net and comprehensive income of $74.5 million for the three months ended September 30, 2022, compared to $78.2 million for the same period in 2021. Our net and comprehensive income decreased by $3.7 million compared to the same period in 2021 mainly due to higher interest expense as a result of higher interest rates on short-term debt compared to lower tariff recovery.
Revenue from operations for the three months ended September 30, 2022, was $234.8 million compared to $236.6 million during the same period in 2021. Our revenue from operations decreased by $1.8 million, compared to the same period in 2021, primarily due to recovery of lower salvage expenses.
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 third quarter of 2022
- Our average customer satisfaction score of 9.65 improved compared to 9.54 for the same quarter in 2021.
- Our reliability of service as measured by customer outage duration was two minutes, which is consistent with the same quarter in 2021.
- Our total recordable injury frequency rate was 1.35, representing two injuries from one vehicle accident compared to zero injuries for the same quarter in 2021. Our employee safety performance as measured by total recordable injury frequency rate for the 12 months ended September 30, 2022 was 0.48, representing three injuries compared to zero injuries for the previous 12 months.
- On June 30, 2022, AltaLink filed its cost sharing application with the AUC, requesting approval to provide a one-time payment of $0.8 million to customers as a result of savings achieved from 2019 through 2021. On August 2, 2022, the AUC issued Decision 27498-D01-2022 with respect to AltaLink's cost sharing application, approving the application as filed.
- On July 21, 2022, DBRS reaffirmed its ratings on AltaLink including the Issuer credit rating, Medium-Term Note rating (which includes the 2020-1 Senior Secured Notes) at “A” and the rating of its Commercial Paper at R-1 (low). All trends are Stable. An “A” rating allows us to keep debt financing costs low for our customers.
- We earned net and comprehensive income of $74.5 million compared to $78.2 million for the same quarter in 2021. Our net and comprehensive income decreased mainly due to higher interest expense as a result of higher interest rates on short-term debt compared to lower tariff recovery.
- On July 26, 2022, AltaLink submitted its second compliance filing application for AltaLink's 2022 revenue requirement at $870.8 million, with total 2022 revenue requirement, including PLP and KLP, of $878.9 million and AltaLink's 2023 revenue requirement at $875.0 million, with total 2023 revenue requirement, including PLP and KLP, of $883.0 million. On August 17, 2022, the AUC approved the revised revenue requirements as filed, allowing AltaLink to fully deliver on its flat-for-five commitment to our customers to keep our rates at or below the 2018 level of $904 million during the five-year period from 2019 to 2023.
- We invested $34.8 million in capital assets compared to $58.5 million for the same quarter in 2021 to connect renewable as well as natural gas generation and to ensure the continued reliability of the electricity network.
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.
Manager, Corporate Communications
AltaLink Management Ltd.