Export dip cause of 'rainy day'

The Crown corporation had to dip into its rainy-day fund to show a bottom-line profit, its 2003 annual report recently showed. According to the report, for the fiscal year ending March 31, 2003, Hydro recorded net income of $418 million, which was $15 million higher than fiscal 2002.

However, in order to meets its return on equity targets -- set by the B.C. government -- Hydro had to withdraw $66 million from its Rate Stabilization Account.

The withdrawal leaves just $21 million in the rainy-day account which is supposed to offset low income years and protect ratepayers from rate increases.

Total revenue was $4.4 billion. "The decrease was primarily due to lower electricity-trade revenues as a result of a decline in market prices to more traditional levels since June, 2001," Hydro said.

The annual report showed that electricity exports last year totalled $1.9 billion, compared with $3.7 billion in the previous year.

However, Hydro says it's expecting a better financial performance for the current fiscal year because its hydro-electric system has "recovered significantly" from low water-reservoir levels.