ENMAX is one of Alberta's leading energy companies and our provincial presence contributes in a significant way to the vibrancy of the economy. We believe that sustainable development progress depends on reliable, affordably priced energy which successively reduces its environmental impact and the way we're going about delivering this to Albertans is helping pave the way for lasting prosperity.
Revenue and Expenditures
Record Setting Revenues Surpass $2 Billion in 2007
In 2007, ENMAX generated record-setting total revenues of $2.1 billion, reflecting electricity sales of 15,958 megawatt hours (MWh) and natural gas sales volumes of 26,944 terajoules (TJ). Total revenues increased by 26.1% over 2006, and can be attributed to growth in ENMAX's residential, commercial and industrial customers.
The growth in our 2007 revenues has fortified ENMAX's financial foundation, providing higher levels of free cash flow, strengthening our balance sheet, and enabling our company to maintain low debt to equity ratios of approximately 23%. All of these financial factors play an important role in supporting ENMAX's ability to finance future development.
ENMAX's capital expenditures in 2007 totaled $285.8 million, a reduction of $183.8 million from 2006 levels. The decrease primarily relates to the 2006 acquisition of the 55% interest we acquired in the Battle River PPA.
Our key capital expenditures in 2007 included:
- $100.1 million invested in the transmission and distribution network in Calgary and surrounding area;
- $69.5 million for costs to complete construction of the Taber wind farm; and
- $59.1 million for an additional 10% interest in the Battle River PPA.
In 2008, ENMAX Power plans to invest more than $100 million in continued system expansion of our transmission and distribution networks and ENMAX will invest a further $300 million in additional generation capacity and other strategic initiatives.