AltaLink, L.P.

AltaLink, L.P.

May 26, 2006 18:41 ET

AltaLink, L.P. Reports Net Income of CDN $11.0 Million for the First Quarter 2006

CALGARY, ALBERTA--(CCNMatthews - May 26, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES

AltaLink, L.P., Alberta's largest electricity transmission provider, today reported its financial results for the first quarter ended March 31, 2006. The company recorded net income of $11.0 million before tax on total revenue of $50.2 million for the quarter, compared to net income of $11.9 million before tax and total revenue of $53.8 million for the same period in 2005.

In the first quarter of 2006, AltaLink continued to deliver on its mandate as a fully-regulated utility, providing Alberta with a stable, reliable and cost-effective transmission system. And as the demand for electricity in the province continues to grow, critical projects that support that growth are ongoing.

"The 500 kV Development between the Edmonton and Calgary regions is the cornerstone of the expansion required to reinforce Alberta's transmission system," said Scott Thon, AltaLink President and Chief Executive Officer. "After consulting with more than 2,500 landowners, including more than 2,000 face-to-face meetings, and hosting nine open houses along the project corridor, the project continues on schedule. We are planning to submit our permit and licence application to construct the line in the third quarter of 2006."

"This line will provide valuable benefits to all Albertans, including improved system reliability and increased efficiency that will reduce costly transmission line losses, equivalent to the electricity required to power a city the size of Red Deer."

AltaLink is in the final stages of identifying the best overall route for the 500 kV transmission line. Through study and consultation, AltaLink has determined that a route built primarily adjacent to existing lines in the corridor will have the least overall impact based on social, land use, environmental and cost criteria. As per the project schedule, the company has initiated the spring environmental testing to complete the required environmental impact assessment for the project and is continuing to evaluate route options around the Genesee Plant, the Gleniffer Lake area and north of Crossfield.

AltaLink revenues primarily consist of tariff revenues as established by the Alberta Energy and Utilities Board (EUB). During March 2005, AltaLink received EUB Decision 2005-019, and as a result, the 2005 first quarter revenue includes revenue adjustments required by the decision. Monthly tariff revenue for 2006 has been established at $15.9 million compared to average monthly tariff revenue of $14.8 million for 2005.

The decrease in net income is primarily a result of the increased 2006 revenues and expenses being offset by adjustments required to reflect the impact of Decision 2005-019 on AltaLink's results for the first quarter of 2005.

As a Limited Partnership, AltaLink, L.P. does not pay income taxes, but instead the tax consequences of its operations are borne by its partners on a pro rata basis based on their interest in the Partnership. Similarly, the individual partners are responsible for federal large corporation tax applicable to their respective interest in AltaLink. Accordingly, 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 www.altalink.ca or on SEDAR at www.sedar.com.

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.

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.


Contact Information

  • Investor Relations
    AltaLink Management Ltd.
    Dimitrios (Jim) Leonidas
    Executive Vice President and Chief Financial Officer
    (403) 267-3413
    Email: jim.leonidas@altalink.ca
    or
    Media Relations
    AltaLink Management Ltd.
    Scott Schreiner
    Manager, Communications
    (403) 267-2176
    Email: scott.schreiner@altalink.ca