BC Hydro Annual Report 2001

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R E S U L T S
BC Hydro continues to have amongst the lowest tariff rates in North America and also has strong reliability ratings compared to other
utilities. BC Hydro continued to deliver on its strategic plans and exceeded its financial targets in fiscal 2001. Net income before the
customer profit sharing and the transfer to the Rate Stabilization Account totaled $859 million, an increase of $314 million, or 58 per cent,
from the previous year.
Revenues more than doubled from the prior year, increasing by $4,409 million to $7,889 million. Higher electricity trade revenues
accounted for 98 per cent of the total increase in revenues. Total expenses also grew, reaching $6,471 million for a $4,115 million increase,
$3,828 million of which is traceable to higher energy costs needed to support domestic and electricity trade demand. Finance charges
totaling $559 million declined by approximately 4 per cent from the previous year.
ANNUALIZED RATE INCREASES
VS. CONSUMER PRICE INDEX
INDEXED TO MARCH 31, 1991
100
91 92 93 94 95 96 97 98 99 00 01
B.C. CPI
BC Hydro Rate Increases
BC Hydro has not had a rate increase
since April 1993. Given inflation over
the last ten years, real electricity rates
for BC Hydro’s domestic customers have
declined by approximately 12 per cent.
D O M E S T I C R E V E N U E S
RESIDENTIAL
Residential revenues of $892 million were $2 million lower than in the previous year, primarily as a result
of a decrease in the average consumption per customer. This decrease was almost offset by an increase
in revenues due to the addition of over 13 400 residential customers since March 31, 2000.
LIGHT INDUSTRIAL AND COMMERCIAL
Light industrial and commercial revenues of $866 million were $17 million higher than for the same
period last year. Most of the increase resulted from customer growth, mainly in the service sectors.
A total of 2153 new customers were added over the last twelve months.
LARGE INDUSTRIAL
Large industrial revenues of $524 million were $42 million higher than for the same period in the
previous year. The increase was primarily due to the return to production of two major customers that
had temporarily shut down for several months in the prior year. An increase in sales to pulp and paper
and copper mining customers, as a result of increased demand due to improving commodity prices
earlier in the year, also contributed to the increase in revenues.
OTHER ENERGY SALES
Other energy sales include the sale of energy to other utilities within B.C. and sales of firm energy to
those outside the province under long-term contracts which are reflected in BC Hydro’s domestic load
requirements. Other energy sales increased 25 per cent from the prior year to $90 million due to
increased demand. BC Hydro’s low tariff rates, compared to market prices for energy, made it more
economic for our domestic wholesale customers to purchase energy from BC Hydro instead of
purchasing it in the open market.
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