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CALGARY, Alta., Aug. 06, 2019 (GLOBE NEWSWIRE) – A negotiated settlement between AltaLink and groups representing industrial and residential customers in Alberta will save customers over $ 80 million over the period 2019- 2021.
Through this agreement, AltaLink will reduce operating expenses by $ 22.5 million and net sustaining capital expenditures by $ 58 million over the three-year period.
AltaLink and customer groups negotiated the agreement for AltaLink’s 2019-2021 General Tariff Request (GTA), which the company submits every two to three years to cover its regulated operating and capital costs. . The agreement was filed with the Alberta Utilities Commission (AUC) on July 10, 2019 and must be approved by the AUC in a public process.
“Reaching a negotiated settlement with our customers is an important step in fulfilling our commitment to maintain our rates at or below 2018 levels until the end of 2023,” said Scott Thon, President and CEO from AltaLink. “It will be a challenge for us to reach the goal of saving more than $ 80 million for customers, but we are committed to achieving it.”
“This is the first three years of our five-year commitment not to increase our costs while providing our customers with affordable and reliable transmission service. “
As negotiated by AltaLink and its customers, the agreement does not include AltaLink’s proposed change to the recovery funding method and excludes certain capital programs. These elements will be tested in a future regulatory process with the AUC.
“Regulatory approval of our new recovery methodology is the final step in achieving our goal of no price increases for customers for five years,” Thon said. “With our proposal, customers would retain approximately $ 267 million between 2019 and 2023, instead of paying up front for future recovery activities.”
AltaLink continues to work closely with its customers to reduce costs. AltaLink is the only transportation company in Alberta to have reached a negotiated settlement with its customers. This deal is the second of two settlement deals negotiated back-to-back with customers, the first being its 2017-2018 GTA.
AltaLink Reports Second Quarter 2019 Results
AltaLink continues to invest in transmission facilities to ensure the reliability of the electricity grid. During the second quarter of 2019, AltaLink invested $ 65.1 million in its transmission network.
Today, AltaLink, LP reported comprehensive income of $ 12.2 million for the quarter ended June 30, 2019, compared to $ 81.7 million for the same period in 2018. The decrease is mainly due to the reassessment of future income tax recovery of $ 58.0 million. and the decrease in future income tax recovery of $ 8.7 million for the first half of 2019. Revenue for the quarter ended June 30, 2019 was $ 224.0 million compared to $ 238. $ 7 million for the same period in 2018, a decrease of $ 14.7 million. . The variation is mainly attributable to the decrease in the recovery of future income taxes, depreciation and recovery costs.
As a partnership, AltaLink, LP reports net income before income taxes; therefore, its results are not directly comparable to the net income reported by companies that record income taxes in their financial statements.
Based in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta’s largest electricity transmission provider. AltaLink partners with its customers to provide innovative solutions to meet the province’s demand for reliable and affordable energy. A wholly owned subsidiary of Berkshire Hathaway Energy, AltaLink is part of a global group of companies providing energy services to customers around the world.
Highlights of the second quarter of 2019
During the quarter ended June 30, 2019:
- AltaLink has entered into a partial negotiated settlement agreement with customer groups on our 2019 to 2021 rate application. Under the agreement, AltaLink will reduce operating expenses by $ 22.5 million and maintenance capital expenditures $ 58 million compared to the April 2019 GTA for 2019 to 2021 to keep customer rates low. The agreement does not include AltaLink’s proposed change to the recovery funding method and excludes certain capital programs, which will be part of a hearing in the GTA scheduled for September 2019. On July 10, 2019, AltaLink a filed the agreement with the AUC for approval;
- On June 1, 2019, AltaLink and the Piikani First Nation established a new limited partnership called PiikaniLink, LP. kV transmission line and associated substation equipment on Piikani reserve lands;
- Customer satisfaction was 100%, which is an improvement from 98% in the same period in 2018;
- The reliability of service provided to customers has improved compared to the same period in 2018. AltaLink customer down times since the start of 2019 and 2018 were 12 and 16 minutes, respectively;
- On July 12, 2019, the Canadian Electricity Association (CEA) notified AltaLink that the company’s application for the Sustainability Electricity CompanyMT the new designation had been approved. In 2014, AltaLink was the first transportation company in Canada to receive the designation and now becomes the first ACE member to be re-designated as part of this process;
- The safety performance of our employees, measured by the total recordable injury frequency rate, was zero, which represents zero injuries (three months ended June 30, 2018 – zero injuries);
- We achieved net and comprehensive income of $ 12.2 million (three months ended June 30, 2018 – $ 81.7 million). Our net income decreased year over year, primarily due to a reassessment of the future income tax recovery following the Government of Alberta’s cut in the corporate income tax rate in brackets. 1% from 12% for the first half of 2019 to 8% in 2022. The reduction in future tax recovery from AltaLink will benefit customers when AltaLink is deemed to start paying taxes in cash and is offset by a corresponding decrease in AltaLink’s business owner income tax expense. AltaLink’s adjusted quarterly net income normalized for the tax rate reduction for the three months ended June 30, 2019 and June 30, 2018 is $ 70.3 million and $ 73.2 million, respectively;
- On July 11, 2019, DBRS assigned an issuer rating of “A” to AltaLink and reaffirmed an “A” rating on our medium term notes as well as an “R1 (low)” rating on our commercial paper. An “A” rating allows us to continue to provide low cost debt financing to our clients;
- We have invested $ 65.1 million (three months ended June 30, 2018 – $ 96.9 million) in capital assets to ensure the continued reliability of the power grid; and
- On June 27, 2019, AltaLink launched its 2016-2018 deferral account process and on July 7, 2019, AltaLink filed its request with the AUC after a confidentiality ruling. The request includes approximately $ 947 million in capital additions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of AltaLink in any jurisdiction, including, but not limited to the United States. AltaLink securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or any state securities law and may not be offered or sold in the United States except in connection with certain transactions. exempt from the registration requirements of the US Securities Act and applicable state securities laws.
With the exception of historical and present factual information contained herein, matters set forth in this press release, including words such as “expects”, “intention”, “plans”, “plans” “,” Anticipates “and similar expressions, are forward visual information that represents the direction of AltaLink’s internal projections, expectations or beliefs regarding, among other things, future operating results and various components thereof or the AltaLink’s economic performance. The projections, estimates and beliefs contained in these forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause AltaLink’s actual performance and financial results for future periods to differ materially from any performance projections or future results expressed or implied by these forward-looking statements. staring statements. These risks and uncertainties include, among others, those described in documents filed by AltaLink with Canadian securities regulators. Accordingly, holders of AltaLink securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those anticipated. AltaLink assumes no responsibility for updating these forward-looking statements.
For more information please contact:
AltaLink Management Ltd.
E-mail: [email protected]
AltaLink Management Ltd.
E-mail: [email protected]