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Capital Expenditures
Capital expenditures for the year ended December 31, 2008, were $27.4 million (2007 – $21.1 million) including $4.4 million (2007 – $4.4 million) in maintenance capital and $23.0 million (2007 – $16.7 million) in enhancement capital. Expenditures were lower when compared to the expected expenditures for 2008 of $36.0 million. The $8.6 million variance from the forecasted spending was primarily a result of savings from milder temperatures and snowfall during winter construction than was budgeted. Expenditures in 2008 were focused on the expansion of the Westspur System as well as sustaining capital infrastructure, the completion of new customer connections, pipeline integrity and tank and line repairs.
The Saskatchewan System anticipates capital expenditures of approximately $46.4 million in 2009. Of this amount, approximately $6.6 million is allocated to maintenance capital expenditures, to continue the annual repair and inspection programs. The remaining $39.8 million is expected to be spent on the four projects comprising Phase II of the Saskatchewan System Capacity Expansion.