AltaLink, L.P.

AltaLink, L.P.

February 27, 2009 17:00 ET

AltaLink Invests in Essential Transmission Infrastructure

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2009) -


In 2008, AltaLink continued to deliver much-needed electric transmission projects to keep the lights on for Albertans. Following the unprecedented period of expansion in our province, our focus is on reinforcing our system and building essential transmission infrastructure.

"The need for investment in a more modern and smarter transmission grid in Alberta remains clear," said Scott Thon, AltaLink's President and Chief Executive Officer. "Whether to enable diverse, new renewable electricity sources or improving the efficiency and reliability of the existing system, transmission is a key to unlocking the benefits of the electric system for Albertans."

"These investments not only ensure a safe, reliable and cost-effective electricity system, but also bring valuable jobs and new opportunities for our province."

Highlights of AltaLink's operations in 2008 included:

- Safely and efficiently carrying out a capital construction program with investments of $174.4 million in facilities for our customers;

- Successfully refinancing $100.0 million of long-term debt which matured in 2008;

- Completing the Keephills-Ellerslie-Genesee (KEG) transmission line on April 6, 2008, the first 500 kV line to be energized in Alberta in more than 20 years;

- Enabling up to 2,700 megawatts of future Alberta renewable wind power resource by completing the hearing process with the Alberta Utilities Commission for our 240 kV Southwest Development project together with moving forward on the first phase of the proposed Southern Alberta transmission reinforcement project; and

- Being named "Best Place to Work" in the Energy/Oil and Gas division by Calgary Inc Magazine.

Today, AltaLink, L.P. also announced its financial results for the 2008 fiscal year.

AltaLink recorded net income for the year ended December 31, 2008 of $40.7 million compared to $37.6 million for the year ended December 31, 2007. Revenue for the year ended December 31, 2008 was $233.4 million, compared to $213.4 million for the year ended December 31, 2007.

The year over year increase in tariff revenue results primarily from growth in our regulated rate base for transmission assets, recovery of higher operating costs due to system growth, recovery of depreciation charges on new capital additions, and higher allowed returns on capital invested as the allowed rate of return on equity increased from 8.51% in 2007 to 8.75% in 2008.

Net income for the year ended December 31, 2008 is $3.1 million higher than 2007 primarily due to higher transmission tariff revenue derived from our continuing investment in regulatory transmission assets, which is partially offset by higher operating expenses, depreciation and interest expense attributable to the growth in rate base assets.

The net income reported above is pre-tax, and is not directly comparable with net income reported by companies that recognize tax expense in their financial statements.

AltaLink's full financial results and management's discussion and analysis can be found on AltaLink's website at or on SEDAR at

AltaLink, Canada's only fully independent transmission provider, is responsible for the maintenance and operation of more than 11,600 kilometres of transmission lines and approximately 260 substations in Alberta. As Alberta's largest supplier of safe and reliable transmission, AltaLink is moving forward to provide a transmission system that will continue to meet the growing needs of Albertans. AltaLink has been a proud supporter of Alberta 4-H since 2003, and as a Legacy Builder it is the title sponsor of all regional, district and provincial communications and public speaking programs.

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", "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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