During the first six months of this year, customers continued to sign natural gas contracts with ENMAX, and to benefit from lower administration charges when gas and electricity bills are bundled together.

Stable electricity prices and reduced charges resulted in lower bills for ENMAX regulated customers in the first six months of 2005 when compared to the same period in 2004.

“Typical electricity bills for our regulated customers have been lower this year,” said Gary Holden, ENMAX president and chief executive officer.  “We’re also seeing many people taking advantage of the additional savings they can make by bundling together natural gas with their electricity purchases. People are exercising their right to choose, and our natural gas volumes have more than doubled compared with the first six months of last year.”

Net earnings for the first six months of 2005 were $57.2 million, compared to $61.7 million for the first six months of 2004.  Significant factors were smaller retail electricity gross margins, the result of regulatory decisions and lower income tax charges.

Electricity sales in the first six months of the year were stable at 4,510 gigawatt hours compared to 4,493 gigawatt hours sold over the same period in 2004. Natural gas sales for the first half of the year were 5,255 terajoules, more than double the volumes sold in the same period of 2004.

Total revenue for the first two quarters of 2005 was $582.8 million compared to $574.5 million for the same period in 2004. The revenue increase was mainly due to growth in natural gas volumes.

ENMAX’s net capital expenditure was $43.3 million in the first six months of 2005, primarily for expansion of the distribution system. In the six months to June 30, 2005, ENMAX purchased 100% of the outstanding shares of Valeo Power Corporation, a privately held electricity retailer and services company with primary assets of commercial and industrial electricity contracts. In addition, ENMAX increased its green power portfolio through the acquisition of an 11 megawatt run-of-river hydro electricity generation facility located north of Vancouver when it acquired 99% of the Furry Creek Power Ltd. The total purchase price of these transactions, net of cash acquired and debt assumed, was $9.4 million.   

In addition, ENMAX and Vancouver-based Eaton Power Corporation have announced the formation of Hydromax, a business venture to develop run-of-river hydro projects in British Columbia over the next five years.

On July 4, ENMAX announced plans to build and operate an 80MW wind power generating facility in the M.D. of Taber in southern Alberta. The move represents a significant step forward in one of the company’s key growth strategies - to increase clean power generating capacity. Construction of the Taber Wind Power generation facility is expected to begin in the fourth quarter of 2005 and be completed by the end of 2006 at a total capital cost of approximately $140 million.

A key element of the ENMAX wind power facility will be a 20-year supply agreement with The City of Calgary. The City has agreed to purchase 100% of the electricity and renewable energy certificates from the Taber Wind Power facility.

ENMAX paid a second quarterly installment of $12.5 million on its 2005 dividend. The corporation announced the 2005 dividend of $50 million in the first quarter. 

In the normal course of its operations, Alberta Finance reviews income tax filings made by ENMAX under the payment in lieu of taxes (PILOT) regulation to the Electric Utilities Act.  In June 2005, ENMAX received a notice of assessment for the 2001 taxation year, which relates primarily to the value of certain ENMAX assets established for PILOT purposes and the allocation of certain costs and benefits between taxable and non-taxable operations.  ENMAX disagrees with the Alberta Finance assessment and is currently negotiating with the Government to arrive at a resolution.

ENMAX Corporation is celebrating its 100th year of providing Albertans with safe and reliable electricity. A wholly owned subsidiary of The City of Calgary, ENMAX provides electricity, natural gas, renewable energy and value-added services to more than 435,000 residential, commercial and industrial customers in Alberta through its subsidiary companies. In addition, ENMAX owns 50% of Canada’s largest wind farm and has the first and largest green power marketing program of its kind in Canada. For more information, visit our website at enmax.com.