BRITISH COLUMBIA HYDRO AND POWER AUTHORITY
financial-information-act-return-march-31-2016
financial-information-act-return-march-31-2016
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
FOR THE YEARS ENDED MARCH 31, 2016 <strong>AND</strong> 2015<br />
NOTE 14: OTHER NON-CURRENT ASSETS<br />
British Columbia Hydro and Power Authority<br />
(in millions) 2016 2015<br />
Non-current receivables $ 171 $ 156<br />
Sinking funds 167 155<br />
Other 79 -<br />
$ 417 $ 311<br />
Non-Current Receivables<br />
Included in the non-current receivables balance is a $152 million (2015 - $156 million) receivable for<br />
contributions in aid of the construction of the Northwest Transmission Line (NTL). The contributions will<br />
be received in annual payments of approximately $11 million, adjusted for inflation. The fair value of the<br />
receivable was initially measured using an estimated inflation rate and a 4.6 per cent discount rate. The<br />
current portion of the NTL receivable is $11 million (2015 - $10 million) and has been recorded within<br />
accounts receivable and accrued revenue.<br />
Included in the non-current receivables balance is an $8 million receivable from certain mining customers.<br />
In February 2016, the Province of British Columbia issued a direction to the BCUC to establish the Mining<br />
Customer Payment Plan, which allows the operators of applicable B.C. mines to defer payment of a portion<br />
of electricity purchases for a period of up to five years. The direction also allows BC Hydro to establish a<br />
regulatory account in which BC Hydro would transfer the impact of any defaults on these deferred<br />
payments to allow recovery in future rates.<br />
Sinking Funds<br />
Investments held in sinking funds are held by the Trustee (the Minister of Finance for the Province) for the<br />
redemption of long-term debt. The sinking fund balances at the statement of financial position date are<br />
accounted for as held to maturity, and include the following investments:<br />
(in millions) 2016<br />
2015<br />
Weighted<br />
Weighted<br />
Carrying Average Carrying Average<br />
Value Effective Rate 1 Value Effective Rate 1<br />
Province of BC bonds $ 107 2.9 % $ 100 3.0 %<br />
Other provincial government and crown corporation bonds 60 3.1 % 55 3.1 %<br />
$ 167<br />
$ 155<br />
1 Rate calculated on market yield to maturity.<br />
Effective December 2005, all sinking fund payment requirements on all new and outstanding debt were<br />
removed.
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