belongs to British Columbia. We run as a business without subsidies
from government. And, like other commercial businesses, we provide dividends
to our owner; in our case, the Province of British Columbia.
Eighty five per cent of the profit we make goes directly back to our
province by way of a dividend and is used to provide a variety of services
to the people of BC. The balance of our profit is retained by BC Hydro
and is used to ensure the reliability of electric supply to the entire
BC Hydro's roots go back to 1883 when we first turned BC's lights on.
However, at BC Hydro we believe that we have a special responsibility
that goes beyond business. We are committed to providing the energy
needed to fuel the economic growth of our province and we are also living
up to our special responsibility as an economic, social and environmental
Contributing to the community through our donations program is one way
we do that. Our donations support not-for-profit groups that provide
services, programs and opportunities that contribute to the vitality
and well being of BC communities.
We bring power to people in all corners of this province. Even customers
in remote and rural areas of BC can be serviced by BC Hydro.
BC Hydro continues to produce strong financial performance on behalf
of our stakeholders. Last year our net income was up $69 million from
the previous year and our return on equity increased to 18.69% from
16 percent. In addition, finance charges decreased, primarily as a result
of an active debt management program to take advantage of lower short-term
interest rates during the year. Finance charges decreased by $40 million
and corporate net debt was reduced by $201 million from the previous
As a result
of its strong financial performance, which was largely due to high inflows
into reservoirs allowing for increased sales of surplus energy, BC Hydro
granted an across the board customer profit sharing. This one-time credit
totaled $32 million and amounted to a two percent credit for residential
and small industrial customers, and a one percent credit for large commercial
and industrial customers.
Operations, maintenance and administration cost per kilowatt-hour were
also reduced by 11% over the previous year.
The Power is Yours
Did you know the average residential customer used 10,171 kilowatts
of electricity last year? That translates into an annual electrical
bill of $620.43.
Last year BC Hydro paid $823 million in tax and dividend payments. BC
Hydro's payments included $280 million to the province for water rentals;
$366 million to the province in dividends; $143 million shared between
the province, municipalities and regional districts for school taxes
and grant-in-lieu of general taxes on Hydro facilities and $34 million
in Corporation Capital taxes.