CALGARY, ALBERTA--(Marketwired - Aug. 5, 2016) -
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During the second quarter of 2016, AltaLink continued to deliver the safe, reliable and cost-effective energy its customers demand in Alberta. With an innovative approach to reducing costs across the business, AltaLink is passing valuable savings on to its customers.
In May, the Alberta Utilities Commission (AUC) approved AltaLink's proposal to reduce its tariff to customers. The decision means that Albertans will save close to $600 million between now and 2019.
"Our unique proposal to the AUC was endorsed by Alberta's largest energy consumers and delivers cost savings to every Albertan on their power bills," said Scott Thon, AltaLink's President and CEO. "By not settling for the status quo, we have captured significant savings for our residential, farm, business and industrial customers."
AltaLink has also made significant steps to reduce the capital costs of needed new transmission facilities. The company's value engineering program has developed innovative technical solutions that meet Alberta's demand for energy while avoiding more than $200 million in project costs since 2013.
Recently energized transmission lines and substations also provide significant benefits to every Albertan and ensure the grid is ready for the transition to new renewable energy generation.
"Today, the transmission system is ready to deliver the reliable energy our customers need and is positioned to allow our province to move confidently into a future with more renewable energy generation," said Scott Thon. "In southern Alberta, already existing and planned transmission projects provide the capacity to connect new wind farms to the grid and millions of Albertans."
AltaLink announces 2016 second quarter financial results
Today, AltaLink, L.P. announced comprehensive income for the second quarter of 2016 was $80.5 million. During the same three month period in 2015, AltaLink earned $58.3 million of comprehensive income. Revenue for the second quarter of 2016 was $249.9 million compared to $210.0 million during the same period in 2015. Compared to the same periods in 2015, our comprehensive income for the three and six months ended June 30, 2016 increased mainly due to the negative impact of the AUC's GCOC decision related to 2014 and 2013 ($27.2 million) recorded in the first quarter of 2015, combined with an increased return from our investment in electricity transmission infrastructure and adjustments in the second quarter of 2016, in relation to regulatory decisions issued by the AUC.
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 2016 highlights
During the three months ended June 30, 2016:
- We had excellent safety results, exceeding our safety targets for the quarter;
- Reliability of service provided to customers in the second quarter continued to be significantly better than our past performance;
- AltaLink employees raised $41,850.50 for the relief effort to support victims of the Fort McMurray wildfire. AltaLink and Berkshire Hathaway Energy Canada each matched the donation, making a total contribution to relief efforts of $125,551.50;
- The AUC approved the majority of our proposed immediate rate-relief measures for customers in the amount of $597 million for 2015 to 2018;
- We invested $216.8 million (three months ended June 30, 2015 - $288.0 million) in capital assets to ensure continued reliability of the electricity network and help prepare Alberta for a renewable energy future;
- Customer satisfaction was 91.5% based on survey results received;
- The AUC directed AltaLink to ensure there is no less than six months separation between the filing of its tariff and capital deferral account applications and that the 2014 and 2015 capital deferral account applications are to be filed separately. We believe this will further delay regulatory decisions; and
- The AUC issued a decision on our capital deferral account application for 2012, 2013 and the Heartland project only for 2014 including a portion owned by another utility, approving $1.86 billion of capital additions, as prudently incurred.
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.