BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
British Columbia Hydro and Power Authority
The following foreign currency contracts were in place at March 31, 2016 in a net asset position of $18
million (2015 – asset of $76 million). Such contracts are primarily used to hedge foreign currency longterm
debt principal and U.S. commercial paper borrowings.
(in millions) 2016 2015
Cross- Currency Swaps
Euro dollar to Canadian dollar - notional amount 1 € 264 € -
Euro dollar to Canadian dollar - weighted average contract rate 1.48 -
Weighted remaining term 10 years -
Foreign Currency Forwards
United States dollar to Canadian dollar - notional amount 1 US$ 1,450 US$ 1,542
United States dollar to Canadian dollar - weighted average contract rate 1.28 1.22
Weighted remaining term 6 years 6 years
1 Notional amount for a derivative instrument is defined as the contractual amount on which payments are calculated.
For more information about the Company’s exposure to interest rate, foreign currency and liquidity risk,
see Note 19.
NOTE 17: CAPITAL MANAGEMENT
Orders in Council from the Province establish the basis for determining the Company’s equity for
regulatory purposes, as well as the annual Payment to the Province (see below). Capital requirements are
consequently managed through the retention of equity subsequent to the Payment to the Province and a
limit on the Payment to the Province if it would cause the debt to equity ratio to exceed 80:20.
The Company monitors its capital structure on the basis of its debt to equity ratio. For this purpose, the
applicable Order in Council defines debt as revolving borrowings and interest-bearing borrowings less
investments held in sinking funds and cash and cash equivalents. Equity comprises retained earnings,
accumulated other comprehensive income and contributed surplus.
During the period, there were no changes in the approach to capital management.