Revenues continued to grow at ENMAX as the company adds customers in Alberta.  Total revenue was up approximately 28 per cent to $379.4 million in the first quarter of 2006 compared with $293.6 million for the same period in 2005 as the company sold more gas and electricity to more customers.  The recent announcement to acquire the Battle River Power Purchase Arrangement (PPA) has given ENMAX an excellent asset to supply power to its growing list of customers.

President and CEO Gary Holden said the addition of new supply sources combined with successful marketing strategies like EasyMax bodes well for the future of ENMAX.  “I think 2006 will be a pivotal year for ENMAX as we bring the benefits of our stable, competitive pricing strategy to more customers in the province,” he said.

Net earnings for the first quarter 2006 were $25.6 million compared with $31.5 million for the same period last year. The lower earnings were the result of several factors including reduced margins for large commercial and industrial customers whose five-year electricity agreements expired at the end of 2005.  “We set out to ensure that we retained our existing customers, and attracted new customers.  I’m pleased to say our sales team was successful on both fronts,” said Holden.  Earnings were also impacted by inflationary pressure on operating costs, increased costs to manage growth of the Calgary infrastructure, and warmer than expected weather in the first quarter of 2006.

ENMAX sales volumes for both electricity and gas grew in the first quarter relative to 2005.  The company sold 2,380 gigawatt hours of electricity in the first three months of 2006 compared to 2,316 in the same period of 2005.  Gas sales went up to 5,877 terajoules in the quarter compared to 3,524 in the first quarter of 2005.  Revenue from gas sales doubled in the first quarter of 2006 relative to the same period in 2005.

Capital spending in the first quarter of 2006 was $22.3 million, mostly for the expansion and upgrading of the Calgary distribution and transmission networks.

ENMAX paid $12.5 million in the first quarter of 2006 toward the $50 million total dividend the Company declared for the year in February. 

ENMAX Corporation and its predecessors have provided Albertans with safe and reliable electricity for over 100 years. ENMAX provides electricity, natural gas, renewable energy and value-added services to more than 457,500 residential, commercial and industrial customers in Alberta through its subsidiary companies. In addition to owning 50 per cent of the McBride Lake Wind Farm – one of Canada’s largest wind power facilities – the company has the first and largest green power marketing program of its kind in Canada. In 2006, ENMAX Energy Corporation received the Consumer Champion Award for its ground-breaking EasyMax program. For more information, visit our website at enmax.com.

View our First Quarter Financial Report.