BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTE
A reconciliation of amounts reported in the Financial Information Act Return and the audited
consolidated financial statements has not been prepared. BC Hydro prepares its Financial
Statements on an accrual basis while the amounts reported in the Financial Information Act
Return are based on cash payments in the year. This will result in timing differences between
amounts recorded as expenses in the Financial Statements and amounts paid in the year.