AltaLink, L.P.

AltaLink, L.P.

March 24, 2006 07:00 ET

AltaLink, L.P. Responds to Alberta's Need for Transmission

CALGARY, ALBERTA--(CCNMatthews - March 24, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES

AltaLink, L.P., today announced the financial results for the 2005 fiscal year - a year in which AltaLink invested $128 million in transmission and facilities to keep up with the demands of Alberta's strong economy and the maintenance of its existing assets to ensure the continued reliability of its Alberta grid.

AltaLink, Alberta's largest electricity transmission provider, recorded net income for the 12 months ended December 31, 2005 of $37.3 million compared to $21.0 million for the eight months ended December 31, 2004. Revenues for the 12 months ended December 31, 2005 were $197.3 million, compared to $114.5 million for the eight months ended December 31, 2004.

"AltaLink is here to deliver a safe, reliable and cost effective transmission system that helps meet the electricity needs of Albertans, today and tomorrow," said Scott Thon, AltaLink's President and Chief Executive Officer. "Our 2005 financial results are directly related to our investment in transmission to support a strong economy with an increasing demand for power."

The results for the 12-month period ended December 31, 2005 are not directly comparable with those of the previous period, which only covered the eight-month period to December 31, 2004. The increase in revenues in 2005 compared to 2004 is partially due to the differing time periods, the amount of which cannot be readily calculated. The remainder of the increase is the result of higher tariff rates approved by the EUB, as well as tariff adjustments relating to 2004 and an increased revenue recovery for storm damage in the Empress and Crowsnest Pass regions of Alberta.

The increase in net income in 2005 compared to 2004 is partially due to the differing time periods, again which cannot be readily calculated. The remainder of the increase was due to higher revenues, which were partially offset by increased operating expenses and depreciation.

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.

The adjustments from GTA decision 2005-019 include the effects of the stub year ended December 31, 2004 and the 12 months ended December 31, 2005, being reflected in the 12 months ended December 31, 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

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