NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW
CALGARY, Alberta, Aug. 04, 2017 (GLOBE NEWSWIRE) -- An application to own transmission facilities by two separate financial partnerships between AltaLink and each of the Kainai and Piikani First Nations in southern Alberta will deliver benefits to AltaLink’s customers and to the members of each First Nation.
During the second quarter of 2017, AltaLink filed an application with the Alberta Utilities Commission (AUC) that will allow the Kainai and Piikani First Nations to acquire a financial position in the Southwest 240 kV transmission line, which crosses their lands.
“During the development of this project, we reached important partnership agreements with each of the Kainai and Piikani First Nations to allow this line to cross their land,” said Scott Thon, AltaLink President & Chief Executive Officer. “As a result, we were able to shorten the overall length of the line and save millions of dollars for Alberta customers when compared to alternate routes while creating decades of financial benefits for each First Nation.”
Energized in 2010, the Southwest 240 kV transmission project was the first reinforcement of the transmission system designed to support Alberta’s growing wind generation capacity. The First Nation applications need to be approved by the AUC. If approved, they will provide long-term stable, regulated revenue to the First Nations. AltaLink will continue to operate and maintain the transmission facilities.
AltaLink announces 2017 second quarter results
AltaLink continues to invest in transmission facilities to ensure the reliability of the electricity grid and to help enable Alberta’s transition to a greener energy future. During the second quarter of 2017, AltaLink invested $101.1 million into its transmission system.
Today, AltaLink, L.P. announced net and comprehensive income of $80.8 million for the quarter ended June 30, 2017, consistent with $80.5 million during the same time period in 2016. The slight increase was primarily due to an increased equity return from our investment in electricity transmission infrastructure, partially offset by the impact of one-time regulatory adjustments booked in the second quarter of 2016.
Revenue from operations for the second quarter of 2017 was $230.0 million compared to $239.9 million during the same period in 2016. Compared to the same period in 2016, revenue from operations decreased by $9.9 million for the three months ended June 30, 2017. The change is primarily due to the adjustments recognized in revenue during the second quarter of 2016 offset by the amounts we invested in capital assets in prior years in relation to regulatory decisions issued by the AUC.
As a partnership, AltaLink, L.P. reports its net income before income taxes; therefore its results are not directly comparable with net income reported by corporations that recognize income taxes in their financial statements.
AltaLink's full financial results and management's discussion and analysis can be found on AltaLink's website at www.altalink.ca or on SEDAR at www.sedar.com.
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest electricity transmission provider. AltaLink is partnering 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 delivering energy services to customers worldwide.
Significant Q2 2017 highlights
During the three months ended June 30, 2017:
- We earned net and comprehensive income of $80.8 million (three months ended June 30, 2016 - $80.5 million). Our net income was consistent year over year due to our increased regulatory capital investment being partially offset by one-time regulatory adjustments recognized in the second quarter 2016;
- Reliability of service provided to customers in the first half of 2017 was below our performance in the first half of 2016. A series of freezing fog and ice storm events early in January 2017 caused several momentary outages that contributed to outage frequency being slightly behind our 2016 performance; and several spring wind storms damaged some radial transmission lines impacting outage duration;
- Our employee and contractor safety results continue to be strong and are consistent with the same period in 2016;
- Customer satisfaction of Direct Customers was 93%, which is a slight improvement over the same period in 2016;
- We energized the Red Deer Project 423L transmission line, to reinforce reliability in the area;
- We reached a new collective bargaining agreement with the International Brotherhood of Electrical Workers (IBEW) which is effective from January 1, 2017 to December 31, 2018;
- We invested $101.1 million (three months ended June 30, 2016 - $216.8 million) in capital assets to ensure continued reliability of the electricity network and help enable Alberta’s renewable energy future; and
- Our flexible Western Alberta Transmission Line (WATL) high voltage direct current technology is able to quickly reverse the direction of power flow to cost-effectively bring energy to where it is needed in the Province. In May 2017, 41% of the energy transmitted on WATL was primarily wind-generated energy moving in a south to north direction, the most ever in Alberta on a monthly basis.
This news release does not constitute an offer to sell or the solicitation of an offer to buy AltaLink’s securities in any jurisdiction, including but not limited to, the United States. AltaLink’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "intends", "projects", "plans", "anticipates" and similar expressions, are forward looking information that represents management of AltaLink's Internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of AltaLink. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties, which may cause AltaLink's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include, among other things, those described in AltaLink's filings with the Canadian securities authorities. Accordingly, holders of AltaLink securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. AltaLink disclaims any responsibility to update these forward looking statements.