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Commercial Crown Corporation Income

  • British Columbia Hydro and Power Authority – BC Hydro’s net income projections for the Budget 2008 fiscal plan reflect increases in financing and operating costs resulting from additional borrowings needed to meet capital asset improvement programs and operating and maintenance requirements. These requirements are driven by the ageing infrastructure and the need for increased expenditures to address reliability issues, capacity constraints caused by demand load growth, and escalating construction costs.
  • Energy costs are also expected to increase due largely to a greater proportion of energy requirements being met by energy purchases from new sources of supply which cost more than energy from Heritage resources, and to an increase in the water rental rates paid on hydro generation.
  • While BC Hydro has incorporated rate increases into its projections, these rate increases are subject to review by the BC Utilities Commission through the revenue requirements application process. BC Hydro will be filing its Revenue Requirement Application for F2009 and F2010 in February 2008. Actual rate increases may vary and will be determined by the review process. Future rate assumptions for BC Hydro are disclosed in Appendix Table A10.
  • British Columbia Liquor Distribution Branch (LDB) – LDB’s projections for the Budget 2008 fiscal plan reflects an increasing sales trend for spirits, imported wine and draught beer, and lower beverage container handling costs resulting from the devolution of the recycling program to the industry.
  • British Columbia Lottery Corporation – BCLC’s projections for the Budget 2008 fiscal plan show continued strength in revenue from casinos and community gaming centres, partially offset by slower growth in lottery revenue, resulting in a projected increase in provincial income from $1,026 million in 2007/08 to $1,201 million in 2010/11.
  • A significant portion of provincial income from gaming is redistributed to charities and local governments. In Budget 2008, total distributions of gaming income are projected to increase from $253 million in 2007/08 to $281 million in 2010/11.
  • British Columbia Railway Company – In its Budget 2008 outlook, BCRC anticipates the sales of residual properties will be completed by the end of 2009. BCRC will continue to operate the Port Subdivision (Robert’s Bank) as well as invest in the DeltaPort Berth 3 expansion project in support of government’s ports and gateway strategies.
  • Insurance Corporation of British Columbia– ICBC’s premium revenue outlook for the Budget 2008 fiscal plan includes the full year impact of the 3.3 per cent rate increase on Basic insurance and a 3.8 per cent rate decrease on Optional insurance that came in effect on May 1, 2007, as well as strong vehicle growth. Projected claims costs reflect moderating claims trends and a slight increase in the discount rate used in calculating current value of outstanding claims. These improvements are partially offset by lower expected investment returns and higher projected operating costs, primarily resulting from road safety, climate action and other business initiatives.
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