AltaLink, L.P.

AltaLink, L.P.

November 01, 2006 16:30 ET

Investment in New Transmission Facilitates Alberta's Growth

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES

AltaLink, Alberta's transmission leader, continues to respond to Alberta's growing demand for electricity. Investing more than $176 million into Alberta's transmission system in the first nine months of 2006, AltaLink is fulfilling its critical role as an enabler of Alberta's economy.

In the first nine months of 2006, AltaLink invested $176.2 million into capital projects compared to $89.7 million over the same period in 2005. The $86.5 million increase compared to last year reflects the growth of Albertan homes and businesses and their corresponding need for electricity.

"AltaLink's increase in capital investment responds directly to Alberta's growing demand for a secure and reliable supply of electricity," said Scott Thon, AltaLink President and CEO. "As Alberta continues to grow and more people and businesses relocate to our province, we need to have the necessary transmission infrastructure in place. AltaLink's investment is part of our commitment to the security and success of all Albertans."

"This growth of Alberta's transmission system has been made possible through productive cooperation among AltaLink, the Alberta Electric System Operator and the Alberta Energy and Utilities Board (EUB) on the planning and permitting of small generation and load projects," said Mr. Thon. "However, we need to find better ways to ensure that timely reviews of large system improvements, such as the 500 kV transmission development between Edmonton and Calgary, balance the genuine concerns of those directly impacted by new facilities and the broad public interest of meeting the electrical needs of all Albertans."

AltaLink, L.P. today reported its financial results for the third quarter ended September 30, 2006.

The company recorded net income of $6.0 million before tax for the quarter, compared to net income of $7.5 million before tax for the same period in 2005. Net income for the nine months ended September 30, 2006 was $24.6 million compared to $27.2 million for the nine months ended September 30, 2005. The period-to-period decrease in net income was primarily due to adjustments made in 2005 to reflect the results of EUB decisions 2005-019 and 2005-082.

For the third quarter of 2006, total revenue increased to $48.0 million compared to $43.1 million for the same period in 2005. AltaLink revenues primarily consist of tariff revenues as established by the EUB. Monthly tariff revenue for 2006 has been established at $15.9 million compared to average monthly tariff revenue of $14.8 million for 2005. During the first three quarters of 2005, AltaLink received EUB Decision 2005-019 and Decision 2005-082, and as a result the 2005 first and third quarter revenues include adjustments required by the decisions.

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