Content
Capital Expenditures
Capital expenditures in 2007, representing the Fund's 50% interest, were $17.9 million (2006 – $10.5 million) including $9.1 million (2006 – $7.6 million) in maintenance capital expenditures and $8.8 million (2006 – $2.9 million) in enhancement capital. Maintenance expenditures were lower than the expected $11.3 million due to the timing of compression overhauls and the deferral of Alliance Canada's Grand Prairie office expansion. Enhancement expenditures were $2.4 million greater than expected due primarily to the BCX project as well as several asset optimization projects, specifically the Alameda Cooler project, which will increase efficiency on the Alliance System and provide for cost savings in the future. Expenditures in 2007 were focused on compressor overhauls, asset optimization projects, and pipeline and information system maintenance programs aimed to improve system efficiency, as well as the BCX project.
In 2008, Alliance Canada expects to spend approximately $13.5 million, representing the Fund's 50% interest, primarily on the BCX project. Alliance Canada will continue to perform compressor overhauls in 2008 to continue to improve system efficiency. Starting January 1, 2008, all major maintenance expenditures including compressor overhauls will be expensed.