AltaLink, L.P.

AltaLink, L.P.

August 26, 2005 07:00 ET

AltaLink, L.P. Reports Net Income of CDN $7.9 Million for the Second Quarter

CALGARY, ALBERTA--(CCNMatthews - Aug. 26, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES

AltaLink, L.P., Alberta's largest electricity transmission provider, today reported its financial results for the second quarter ended June 30, 2005. The company recorded net income of $7.9 million before tax on total revenue of $52.8 million for the quarter, compared to net income of $8.9 million before tax and total revenue of $41.7 million for the three months ended July 31, 2004.

Net income for the three months ended June 30, 2005 was $1.0 million lower than for the three months ended July 31, 2004. Reduced income was primarily due to higher operating expenses and depreciation and accretion expenses, resulting from increased labour charges, higher depreciation rates and increases in property, plant and equipment.

The $11.1 million increase in revenue for the three months ended June 30, 2005 and $22.7 million for the six months ended June 30, 2005, resulted primarily from the Alberta Energy and Utilities Board Decision 2005-019 adjustments, the higher interim tariff and an increase in tariff recognized as a result of the storm damage on the Empress system. The increased tariff resulting from the Empress system had an exact offset to insurance expense resulting in no net income impact.

The GTA adjustments include the effects of the stub year ended December 31, 2004 and the six months ended June 30, 2005, being reflected in the quarter ended June 30, 2005.

In 2004, AltaLink changed its fiscal year-end in response to a direction provided by the EUB in Decision 2003-061 to maintain its regulatory records on a calendar year-end basis. With the change, AltaLink has aligned its fiscal year with its regulatory year. Therefore, comparatives for the calendar year 2005 will be compared to the closest fiscal quarter of the prior year.

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.

AltaLink Management Ltd. is the general partner of AltaLink, L.P., a limited partnership organized under the laws of Alberta.

Contact Information

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