2001 Triple Bottom Line Report - BC Hydro

P E R F O R M A N C E M E A S U R E S
E C O N O M I C I N D I C A T O R S
29. SHAREHOLDER VALUE- ADDED ( SVA)
FISCAL YEAR MILLIONS OF DOLLARS
2000/2001 Actual 103
2000/2001 Target (55)
1999/2000 Actual 129
SVA is net income before finance charges and the transfer to the Rate Stabilization Account, minus Capital Charge (invested capital
multiplied by cost of capital) and measures how well BC Hydro performed beyond the return expected for a company with a similar
level of risk. It is calculated as: Net Operating Profit less Capital Charge. Net Operating Profit is net income before finance charges and
the transfer to the Rate Stabilization Account. Capital Charge is Invested Capital x Cost of Capital. In fiscal 2001, the SVA result of
$103 million was well above target. SVA before the Customer Profit Sharing was $412 million, $467 million higher than target and
$283 million higher than the prior year. The substantial increase in SVA from Target and Prior Year is primarily attributed to the increase
in electricity trade margins. Optimizing the use of storage and generation facilities to maximize profitable import and export of energy
allowed BC Hydro to take advantage of significant opportunities created by a strong electricity trade market and high electricity trade
sales prices. High prices were mainly due to several factors relating to the Californian market and its restructuring problems.
30. PROPORTION OF REVENUE FROM CUSTOMER GROUPS
YEAR PER CENT 1997 1998 1999 2000 2001
Residential 35.70 32.85 28.10 25.69 11.31
Light Industrial & Commercial 33.35 32.42 27.54 24.40 10.98
Large Industrial 19.41 16.60 16.04 13.85 6.64
Other & Miscellaneous 4.78 4.78 4.04 3.62 1.89
Electricity Trade 6.76 13.35 24.29 32.44 69.18
Total 100.00 100.00 100.00 100.00 100.00
31. REVENUE ALLOCATION
YEAR PER CENT 1997 1998 1999 2000 2001
Energy costs 20.94 23.45 34.77 38.33 65.43
OMA 18.10 16.09 14.56 13.65 9.57
Taxes 6.97 6.93 5.69 4.94 2.21
Depreciation 13.48 13.39 11.40 10.78 4.82
Finance Charges 25.76 22.91 20.21 16.64 7.09
Payment to the Province 11.50 14.33 10.71 9.86 4.72
Restructuring Costs 0.78 0.00 0.00 0.00 0.00
Customer Profit Sharing 0.00 1.25 0.00 0.00 3.93
ETO costs 0.00 0.00 0.39 0.00 0.00
RSA 0.00 0.00 0.00 3.71 1.31
Retained Earnings 2.47 1.64 2.27 2.10 0.94
100.00 100.00 100.00 100.00 100.00
T R I P L E B O T T O M L I N E A P P E N D I C E S | 8 8