Financial Information Act Return - BC Hydro

Notes to Consolidated Financial Statements
For the Years Ended March 31, 2003 and 2002
(in millions) Consolidation
Adjustments/
GenerationTransmission Distribution Powerex Other 1 Eliminations Total
2 Revenue - External $ 67 $ 8 $ 2,367 $ 1,950 $ 33 $ (18) $ 4,407
Revenue - Internal 1,272 780 - 119 533 (2,704) -
Depreciation and amortization 111 127 113 3 63 - 417
Finance charges 205 127 125 6 - (6) 457
Restructuring costs - 2 - - 35 - 37
Net income (loss) 160 288 150 155 (245) (90) 2 418
Total assets 5,018 3,084 3,301 531 559 (569) 11,924
Capital expenditures &
Demand-side management programs 187 167 276 3 92 - 725
Revenues by Geographic Location:
Year Ended March 31 2003 2002
British Columbia 2,475 2,450
Rest of Canada 289
192
United States 1,643 3,669
4,407 6,311
Notes:
1. Other includes Engineering Services, Field Services and Shared Services organizations, other subsidiaries including
Westech and Powertech and corporate costs.
2. These adjustments relate to the difference between BC Hydro's management reporting, used for risk management and
performance measurement purposes, and Generally Accepted Accounting Principles (GAAP). For management reporting
purposes, energy purchases bought for future resale are inventoried in a trade account and expensed when the energy
is sold. The balance in the trade account is also marked to market at the end of each month and a gain or loss recorded.
For GAAP reporting purposes, energy purchases bought for future resale are expensed in the period of purchase.
Note 14: Accenture Outsourcing
During the year, BC Hydro entered into agreements for the outsourcing of various administration and
support functions. Under the agreements, BC Hydro, through a wholly-owned subsidiary company,
entered into a partnership with Accenture Inc. to form Accenture Business Services of British Columbia
Limited Partnership (“ABS”). On April 1, 2003, ABS acquired BC Hydro’s personnel and assumed
responsibilities related to the following services: customer services, Westech, network computing services,
building and office services, human resources administration, payroll, purchasing, disbursements and
financial services (collectively, the “Outsourced Services”). BC Hydro also entered into agreements for
ABS to provide the Outsourced Services to BC Hydro for a ten-year period commencing April 1, 2003,
and subject to a five-year renewal option that BC Hydro may exercise prior to the end of the ten year
initial term. In addition to providing the Outsourced Services to BC Hydro, ABS will provide services to
third-party customers who formerly received services from the groups acquired from BC Hydro, and
expects to add additional third-party customers.
ABS was formed under a partnership agreement between Accenture Business Services General Partner Inc.
(“ABSGP”) which acts as a general partner, and BC Hydro Services Asset Corp (“BCHSAC”), a whollyowned
subsidiary of BC Hydro, which holds a limited partnership interest in the partnership. ABSGP
will control and manage the partnership while BCHSAC will provide certain assets required by ABS to
provide the Outsourced Services. BC Hydro will account for BCHSAC’s limited partnership interest