Financial Information Act Return - BC Hydro

Notes to Consolidated Financial Statements
For the Years Ended March 31, 2003 and 2002
The following interest rate contracts were in place at March 31, 2003 and 2002, with a carrying value of
nil at both dates. Average variable rates are based on the effective rates at the balance sheet date and vary
over time.
(dollar amounts in millions) 2003 2002
Receive fixed, pay floating rate swaps
Notional amount 1 $1,641 $1,267
Weighted average receive rate 4.74% 5.59%
Weighted average pay rate 2.74% 2.13%
Weighted terms 6 years 4 years
Receive floating, pay fixed rate swaps
Notional amount 1 $ 783 $1,210
Weighted average receive rate 1.86% 2.04%
Weighted average pay rate 3.70% 3.70%
Weighted term 1 year 1 year
Receive floating, pay fixed rate swaps (future dated swap starting June 21, 2004)
Notional amount 1 $ 200 $ n/a
Average receive rate n/a n/a
Average pay rate 5.51% n/a
Remaining term 9 years n/a
Receive floating, pay floating rate swaps
Notional amount 1 $ 221 $ n/a
Average receive rate 1.45% n/a
Average pay rate 1.27% n/a
Remaining term 4 years n/a
1 Notional amount for a derivative instrument is defined as the contractual amount on which payments are calculated.
The following foreign currency contracts with a net carrying value of $(2) million (2002– $16 million)
were in place at March 31, 2003 and 2002. Such contracts are used to hedge foreign dollar principal and
interest payments.
(dollar amounts in millions) 2003 2002
Cross Currency Swaps 1
BC Hydro receives foreign currency:
United States dollar – notional amount 2
US $243 US $243
United States dollar – weighted average exchange rate 1.42 1.42
Remaining term 3 years 4 years
Japanese yen – notional amount 2
¥ 10,000 ¥ 10,000
Japanese yen – weighted average exchange rate 0.0135 0.0135
Remaining term 1 year 2 years
1 Under these arrangements, BC Hydro receives or pays the foreign currency in exchange for Canadian currency.
2 Notional amount for a derivative instrument is defined as the contractual amount on which payments are calculated.