CALGARY, Alberta--(BUSINESS WIRE)--A financing agreement with the Canada Infrastructure Bank (CIB) to reduce transmission costs for customers was approved by the Alberta Utilities Commission (AUC) on October 18, 2024. AltaLink secured financing for the Central East Transfer-Out Project (CETO) which will save Albertans approximately $60 million over the 30-year financing of the project.
“This first-of-its-kind financing agreement is a positive result for our customers, saving Albertans millions of dollars, while strengthening the transmission system in east central Alberta and increasing access to new, clean generation,” said Gary Hart, President and Chief Operating Officer. “We’re excited to be part of the CIB’s first investment in transmission under its Clean Power priority sector, and pleased that the AUC recognizes the benefit to Alberta ratepayers.”
The CETO project is a 130-kilometre, 240 kV transmission line that connects the Gaetz substation on the northeast corner of Red Deer, Alberta, to the Tincherbray substation east of Stettler, Alberta. The transmission line is scheduled to be energized in 2026. AltaLink and ATCO Electric will each own and operate a portion of the project.
AltaLink will continue to work with the CIB on further financing arrangements that deliver cost savings for its customers related to two additional future projects.
AltaLink announces 2024 third quarter financial results
Today, AltaLink, L.P. announced net and comprehensive income of $83.7 million compared to $74.6 million for the same quarter in 2023. Our income increased mainly due to increased revenue from the regulatory generic cost of capital decision, and a higher recovery of interest as a result of higher approved short-term interest rates.
For the three months ended September 30, 2024, our revenue from operations increased by $23.3 million compared to the same period in 2023. The change is primarily due to higher debt and equity returns on rate base and higher recovery of other allowable costs of transmission services, including the recovery of costs related to our 2023 wildfire restoration work.
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.sedarplus.ca.
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 highlights during the third quarter of 2024
AltaLink’s third quarter of 2024 results highlight ongoing focus on safety, reliability and customer satisfaction:
- We achieved a customer satisfaction average score of 9.78 out of 10 compared to 9.57 for the same quarter in 2023.
- We had zero employee injuries compared to one injury for the same quarter in 2023. Our total recordable injury frequency rate was zero compared to 0.60 for the same quarter in 2023.
- Our customer average outage duration improved to two minutes compared to four minutes for the same quarter in 2023. AltaLink experienced fewer equipment malfunctions and reduced impacts from weather-related outages as compared to 2023.
- On July 31, 2024, the AUC approved, on a placeholder basis, the full recovery of $18.5 million of expenditures through the self-insurance reserve over the 2024 and 2025 period. The AUC did not approve capitalization of the expenditures to rate base. The AUC also approved $6.2 million of salvage expenditures, on a placeholder basis, through the net salvage reserve account.
- We extended our commitment to customers and Albertans by keeping our annual revenue requirement below the 2018 level of $904.0 million for another year in 2024; a total of six years from 2019 to 2024. Our 2024 transmission tariff of $907.9 million includes the revenue requirement of $902.5 million and a recovery of $8.3 million for 2023 wildfire damage restoration costs along with other adjustments as directed by the AUC.
- We earned net and comprehensive income of $83.7 million compared to $74.6 million for the same quarter in 2023. Our income increased mainly due to increased revenue from the regulatory generic cost of capital decision, and a higher recovery of interest as a result of higher approved short-term interest rates.
- On July 9, 2024, DBRS reaffirmed its ratings on AltaLink including the Issuer Rating, Medium-Term Note (Secured), Senior Secured Note rating at “A”, as well as rating on its Commercial Paper rating at R-1 (low), with stable trends. “A” rating allows us to keep debt financing costs low for our customers.
- On October 18, 2024, the AUC approved AltaLink's project financing from the Canada Infrastructure Bank for the Central East Transfer-Out project. This project financing will save Alberta ratepayers approximately $60 million over the 30-year financing of the project.
- In the third quarter of 2024, we conducted an employee pulse survey, covering engagement and diversity, equity, and inclusion. The survey results showed improved employee engagement and an 83% employee participation rate.
- We invested $86.2 million in capital assets compared to $75.7 million for the same quarter in 2023 to ensure continued electric transmission system safety and reliability, and to connect generation.
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.
