annual report 2 - welcome to bel online

Belize Electricity Limited ~ Annual Report 2009 ~ Standing Strong

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CONTENTS

Corporate Profile

Financial Highlights

Report to Shareholders

Management Discussion and Analysis

Operations

Audited Financials

Financial and Operating Statistics

Corporate Directory

Board of Directors

Executive Management

1

2

3

6

14

21

45

46

46

46


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Corporate ProfileBelize Electricity Limited (BEL) is the primary distributor of electricity in Belize, Central America. Serving approximately 76,000 customers, the utility met a peak demand of 76 megawatts (MW) in 2009 from multiple sources of energy, including power purchases from Belize Electric Company Limited (BECOL), Comisión Federal de Electricidad (CFE) (the Mexican state-owned power company), Belize Cogeneration Energy Limited (Belcogen), Hydro Maya Limited (HML), Belize Aquaculture Limited (BAL) and from its own diesel-fired and gas-turbine generation. All major load centers are connected to the country’s national electricity grid, which is interconnected with the Mexican national electricity grid, allowing the Company to optimize its power supply options. BEL has an installed generating capacity of 34 MW and owns 1,806 miles of transmission and distribution lines. Fortis Inc. and the Belize Social Security Board hold a 70.2 per cent and 26.9 per cent interest in BEL, respectively.

Annual ComparisonIn Belize thousands of dollars 2009 2008

Operating Revenues 186,566 140,577Earnings (loss) applicable to Shareholders 8,895 (10,838)

Total Assets 472,267 435,257Shareholders’ Equity 280,827 263,012

Return on Net Fixed Assets 4.9% -1.1%


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Financial Highlights

• In2009,energysalesgrewby2.6percentto417.4gigawatthours(GWh). • Costofpowerfortheyearincreasedby12.9percentto$130.2million.

• Profitwas$8.9million,ascomparedtoalossof$10.8millionin2008.

• BELinvested$43.3millioninexpandingandimprovingitsproperty,plantandequipment.


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Report to ShareholdersIt is with deep disappointment that we report that the regulatory challenges that began in 2008 remain unresolved.BelizeElectricityLimited(BEL)continuestoawaittheoutcomeofitsappealofthePublicUtilitiesCommission’s (PUC)2008FinalTariffDecision, inwhich thePUC imposeda$36.2millionchargeagainsttheCompany,reversingregulatorydecisionsthathadbeenapprovedasfarbackas2002.The2008TariffDecisioncausedBELtobeinbreachofitsloancovenants,preventingtheCompanyfromborrowingandalso preventing the Company from paying dividends.

Even aswe continue to pursue an acceptable resolution to the 2008TariffDecision,we recognize thatultimatelytheGovernmentofBelizeneedstoimplementworkableandstableregulations,managedbyacompetent commission. Investors and lenders simply will not finance a company where regulatory approvals cannot be relied on and sovereign agreements are not respected. Indeed, this protracted situation has alreadyimpactedtheinvestmentclimateinthecountryanditwilltakeaseriouseffortbythegovernment,the regulator and BEL to restore investor confidence, even after the current situation is resolved.

On June 17, 2009, the Court of Appeal upheld the Supreme Court’s decision, which found that the government actedlegallyinrepealingthe2007TariffByelaws.Therepealofthe2007TariffByelawsopenedthewayforthePUCto reverseprior rulings,effectively forcingtheCompanytoabsorb$38millionofexcesscostofpowerasaresultofrecordhighoilpricesin2008.OnFebruary6,2009,thePUCissuedanorder,amendingthe2008TariffDecision,toreduceelectricityratesby15percent,despitethependingcourthearing.TheCompanychallengedthisorderandobtainedaninjunctionpreventingthePUCfromimplementingthatorderuntil the legal challengeof the2008TariffDecision is resolved. In January 2010,despite the legalchallengetothe2008TariffDecision,thePUCinitiatedcourtproceedingsagainsttheCompany,claimingthatitfailedtofilesubmissionsforaFullTariffReviewProceeding.BELhasrespondedtothechargeandthiscourt case also remains pending.

With lower oil prices and cheap hydroelectric power, coupled with the fact that dividends cannot be paid out,cashflowsimprovedin2009.Itshouldbenotedhoweverthatifthe2008TariffDecisionisupheld,BELwouldbeforcedtorefundover$37milliontocustomersthatwouldimmediatelythrusttheCompanyintoaninsolventposition.Earningsin2009reboundedto$8.9millionascomparedtoaprofitof$29millionin2007thatwasfollowedbyalossof$10.8millionin2008.The$8.9millionprofitin2009equatestoareturnon equity of 3.6 per cent.

Even though the regulatory uncertainty continues to weigh heavily on the Company, BEL got on with the business of supplying Belize with power andmade notable improvements in its operations. Upgradesto distribution and transmission systems countrywide were given priority to strengthen the system and minimize interruptions. Newpower lineswere constructed in San Pedro,Dangriga, Belmopan and SanIgnaciotomeettheneedsofgrowingcommunitiesintheseareas. UndertheBananaBeltElectrification


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Project,which isfinancedby theEuropeanUnionand theGovernmentofBelize,SantaCruzVillageandMonkeyRiverVillagewereconnectedtothenationalgrid.Tohelpreducethenumberofpoweroutageswhen upgrading the system, our linemen were trained to carry out maintenance on energized power lines.

Duringtheyear,customerswerewelcomedtonewandimprovedcustomerservicelobbiesastheCompanyinvested in office renovations. Meanwhile, a significant number of customers signed up for the Company’s E-Services. These initiatives, alongwith efforts to improve field service and eliminate customer fees forconstructingpowerlineextensionsupto300feet,areallpartoftheCompany’scontinuouseffortstoremaina first class service provider.

Distribution losswas a record low since 2001 at 7.3 per cent, reflecting the investments the Companycontinues to make to improve efficiency and manage costs in a very difficult and inflationary time.


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Management Discussion and AnalysisYear Ended December 31, 2009

Earnings

TheTariffDecisionofJune2008continuestonegativelyaffecttheCompany’searnings.Thereduction intheValueAddedofDeliverycomponentofthetariffhasresultedinsignificantlyreducedearningsfortheCompany, well below levels necessary to finance its operations.

Earnings for2009were$8.9million,ascomparedtoa lossof$10.8million in2008.The loss in2008wasconsequentontheJune2008FinalDecisionofthePUC,wherea$36.2millionchargefor“excessrevenues”or disallowance of previously allowed costs was booked (see Regulation section below). Earnings per share were$0.13,ascomparedtoalosspershareof$0.16in2008.

The June2008TariffDecisionkept theaverage tariff toconsumersat$0.441perkilowatthour (kWh)bysignificantlyincreasingtheCostofPower(COP)componentofthetariff,significantlydecreasingtheValueAddedofDeliverycomponentandorderinga rebateof$36.2milliontocustomerstoreversepreviouslyallowed charges.

ThereductionintheValueAddedofDeliveryreducedgrossrevenues,netofcostofpowertotheCompany,negatively impacting earnings. Operating expenses increased mainly due to a reduction in the level of overhead expenses capitalized as directed by the PUC and costs associated with legal challenges anddefenseagainsttheactionsofthePUC.Increaseddepreciationandfinancechargesandadecreaseinotherrevenuesalsonegativelyaffectedearnings.

Withthelowearningslevel,asatDecember31,2009,theCompanydidnotmeetonemajorfinancialratioas required in loan covenants with two of its main lenders.

Giventhelowearningslevel,theuncertainregulatoryenvironmentandtheoff-sidenatureofkeyfinancialratioloancovenantsduringtheyear,theBoardofDirectorscontinuedthesuspensionofdividendsfor2009.

Revenues and Sales

Energyrevenuesfortheyeargrewby32.7percentto$186.6millionfrom$140.6millionfor2008.Energysalesgrewby2.6percentto417.4gigawatthours(GWh)from407GWhsoldin2008.Energyrevenuesin2008 include thePUC’s June2008$36.2million charge. Excluding the impactof the 2008 charge, 2009energyrevenuesgrewinlinewithsalesgrowthandtheJune2008increaseintheCostofPowercomponentofthetariff,netofthedecreaseintheValueAddedofDeliverycomponentofthetariff.


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Thesalesincreasewasdrivenbya4.7percentgrowthinresidentialsales.Comparedto2008,commercialsales were flat and industrial sales declined by 2.8 per cent. Sales were negatively impacted by the economic recession. Energy consumption on a per customer basis only increased 0.8 per cent over 2008. Customer accountsgrewby1.8percentin2009to75,543.

In 2009, the Company changed the accounting treatment for all funds received from customers for new installationstorecordthemascapitalcontributionsasdirectedbythePUC.Thisreducedotherrevenuesby40.7 per cent as compared to 2008.

Expenses

Costofpowerfortheyearincreasedby$14.9millionor12.9percentto$130.2millionfrom$115.3millionin2008,inlinewithenergysalesgrowthandtheincreaseintheCostofPowercomponentofthetariffasa resultof the June2008FinalDecision.As requiredbyelectricity regulations, costofpowerexpense isregulatedbythePUCtostabilizerates.FortheperiodJuly1,2007toJune30,2008,thereferencecostofpowerwas$0.253perkWh.FortheperiodJuly1,2008toDecember31,2009thereferencecostofpowerwas$0.312perkWh.VariancesbetweenactualandthereferencecostofpoweraredeferredtotheCostofPowerRateStabilizationAccountandacostofpowertrackingaccount(CPRSA)establishedbythePUCaspart of an automatic cost of power adjustment mechanism not yet fully implemented.

For theyear2009, actual costofpowerwas$22.8millionbelow the referencecostofpowerasa resultof loweroilpricesandhigherthanexpectedhydroproduction.Thisdifferencealongwith$2.9millionininterestwasdeferredtotheCPRSAaccountsresultinginanincreaseinthebalanceintheCPRSAaccountsas compared to 2008.

PowerpurchasedfromComisiόnFederaldeElectricidad(CFE),theMexicanstateownedpowercompany,accountedfor46percentoftotalenergysupply,downfrom54percentin2008,whilepowerpurchasedfrom the Mollejon and Chalillo hydroelectric facilities owned by Belize Electric Company Limited (BECOL),

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Hydro Maya BECOL Mexico Belcogen Belize Aquaculture

Diesel

Cost

-$/k

Wh

Fuel

Fi

xed

Cost

Average Cost of Power from Various Sources 2009


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accountedfor38percentoftotalenergysupplyascomparedto41percentin2008.PowerpurchasedfromHydroMayaLimited’shydroelectricfacilityintheToledoDistrictwas7.8GWhor2percentoftotalenergysupplyascomparedto13GWhfor2008.BelizeAquacultureLimited(BAL)cameonlineinApril2009andsupplied48.8GWhor10percentoftotalenergysupply.BelizeCogenerationEnergyLimited(Belcogen)begantestinginDecember2009andsupplied1.3GWhtoBEL.BELsuppliedtheremaining4percentofits energy requirements from its diesel-fired generation facilities . For the year, the cost of power purchased fromCFEdecreasedby30.3percentto$0.19perkWh,whilecostofpowerpurchasedfromBECOLremainedrelativelystableat$0.177perkWh.

Operating expenses increased 21.4 per cent as compared to 2008, mainly as a result of a significant reduction inoverheadexpensescapitalizedtocapitalprojectsinaccordancewiththePUC’sdecisionandasaresultoflegal costs related to challenges and defences against adverse regulatory decisions. A general increase in the cost of goods and services, including labour costs, also increased operating expenses.

Depreciationexpenseincreasedby7.3percentasaresultofnewassetsplacedintoserviceovertherecentpast. Finance charges increased by 41.3 per cent, mainly due to interest costs related to regulatory accounts arisingfromthe2008TariffDecision.

Capital Expenditure

In 2009, BEL invested $43.3 million in expanding and improving its property, plant and equipment.Connections tonew IndependentPowerProducers (IPP), theconnectionofnew loadsandtheneed forcontinuous system improvements drove capital expenditures.

Approximately12milesofpowerlineswereconstructedinSanPedro,Belmopan,SanIgnacioandDangrigaunder the Company’s system expansion and reliability improvement programs. Other major projects include thecompletionofsubstationstoconnectwithBelcogen,BALandtheVacahydroelectricfacilityownedbyBECOL. Construction of a substation also commenced in Belmopan and Corozal aimed at meeting load growth and new vehicles were procured to improve field services.

AsthePowerVProjectwounddown,$9.9millionwasspentonexpansionandupgradeoftransmissionanddistribution systems as well as to improve business processes and procure specialized equipment. A total of $57.5millionhasbeenspentoverthelifeofthePowerVProject. Financing

Nonewloanswerereceivedduringtheyear.TheCompanyfinanceditscapitalexpenditurefromoperatingcashflowsgeneratedfromalowercostofpowerandthedecisionnottodeclaredividends.During2008,theCompany was barred from seeking new long-term debt as a result of the various loan covenants that were not being met. At the end of 2009, the Company was still not in compliance with two major loan covenants. This,alongwiththeunstableregulatoryenvironment,preventedtheCompanyfromaccessinglong-term


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financingin2009.Thefinancingplanforanewpowerproject,whichwasdrawnupin2008,isstillonholdandthe10percent$25millionSeries4debenturesissuedinSeptember2007remainsuspended.

Thetablebelowsummarizesthe lender facilitiesasatDecember31,2009,wherekeyfinancial ratio loancovenantswerenotbeingmet.Discussionsareon-goingwiththeselenders.

Financial Institution Financial Covenant Facility Balance at December 31, 2009

Caribbean Development Bank (CDB) Loan No. 14/OR – BZ

[Applicable to issuing new debt and Event of Default]

Return on Net Fixed Assets of 7% minimum

$9.9 millionLoan

World Bank Loan No. 3776A/S BEL

[Applicable to issuing new debt and Event of Default]

Return on Net Fixed Assets of 7% minimum

$2.5 millionLoan

Regulation

BELisregulatedundertheamended1992ElectricityAct,theamendedPublicUtilitiesCommission’sActof1999andtheElectricity(Tariffs,FeesandCharges)Byelawsof2005(TariffByelaws).InDecember2007,newTariffByelawswerepromulgatedthatclarifiedandsimplifiedseveralcontentious issuescontained intheByelawsof2005.InMarch2008,justfourdayspriortotheCompanyfilingitsAnnualTariffApplication,thegovernmentrepealedthe2007TariffByelaws,withouttheknowledgeofandwithoutanyconsultationswiththeCompany.TheCompanylegallychallengedtherepealofthe2007TariffByelaws.Thechallengewasnotupheld by the courts.

TheCompany’slicensetogenerate,transmit,distributeandsupplyelectricityinBelizeexpiresin2015.Underthe terms of the license, the Company has the right of first refusal on any subsequent license grant.

Under theTariff Byelaws, the average electricity tariff is separated into threemain components; a fixedcomponent to cover overhead expenses and provide the Company with a reasonable return on investment (ValueAddedofDelivery),avariablecomponentthatreflectsthecostofelectricity(CostofPower)andadeferred cost of power recovery or rebate component.

PursuanttotheTariffByelaws,theCompanyestablishedaCostofPowerRateStabilizationAccount(CPRSA)effectiveJanuary1,2000,designedtonormalizechangesinthepriceofelectricityduetofluctuatingfuelcosts.TheCPRSAstabilizeselectricityratesforconsumers,whileprovidingtheCompanywithamechanism


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thatpermitstherecoveryofitscostsofelectricityovertime.AspartofitsJune2008TariffDecision,thePUCadopted(notyetfullyimplemented)aCostofPowertrackingaccountaspartofanautomaticcostofpoweradjustmentmechanismtoallowfor fasterrecovery(rebate)ofexcesscostofpower.TheJune2008FinalTariffDecisionalsosetupa$36.2millionnegativecorrection(charge)totariffstoberebatedtocustomers.AlltheseaccountsareamalgamatedunderageneralRateStabilizationAccount(RSA)calledCostReceivablefrom(Payableto)customers.AtDecember31,2009,thebalance intheRSAaccountswas($37.6)millionpayabletocustomerssubjecttotheoutcomeoflegalchallengestotheJune2008PUCFinalTariffDecision.

2007 Tariff Review

OnApril2,2007, theCompanyfiled itsAnnualTariffReviewApplication for theAnnualTariffPeriodJuly1,2007toJune30,2008;proposingthattheaveragetariffbekeptthesameandshiftingaroundthetariffcomponentstoaccountforaforecastedsmallincreaseinthecostofpower.ThePUCissueditsFinalDecisiononJune26,2007;keepingtheaveragetariffthesameat$0.441perkWh.Thecostofpowercomponentofthetariffwasdecreasedto$0.252perkWh;whiletheValueAddedofDeliverycomponentwasincreasedto $0.168per kWh and the Rate StabilizationAccount recovery componentwas reduced to $0.019perkWh.TheAnnualCorrectionwaskeptat$0.002perkWh.TheCompanyobjectedtotheFinalTariffDecisionand instituted legalchallengesbasedon inconsistencies,misapplicationsand legalityofthetariffsettingmethodology.

SubsequenttothePUC’s2007FinalTariffDecision,inDecember2007,newTariffByelawswerepromulgatedthat simplifiedandclarified the tariff settingmethodologyand incorporated themethodology into law.ThenewTariffByelawssettledbeginningbalancesforthetariffperiodandestablishedthefollowingtariffcomponents for the tariffperiod July 1, 2007 to June30, 2008:Cost of Powerof $0.253per kWh,ValueAddedofDeliveryof$0.168perkWhandRateStabilizationAccountrecoveryof$0.020perkWh;keepingtheaveragetariffat$0.441perkWh.ThenewTariffByelawsalsocommencedanewFullTariffPeriodwiththenextFullTariffReviewProceedingtocommenceinearly2011.

2008 Tariff Review

OnMarch13,2008,BELfiledanapplicationtothePUCforaThresholdEventReviewProceedingasrequiredinthebyelaws.TheThresholdEventReviewisareviewmechanismestablishedtoprovidefortherecoveryofexcess cost of power outside of the normal review proceedings when there is a rapid escalation in the cost of power. At the time a significant increase in excess cost of power was being caused by a rapid increase inthepriceofoil.Theapplicationwasforanincreaseintheaveragetariffto$0.506,duetoanincreaseinthereferenceCostofPowerto$0.318.ThePUCissued itsFinalDecisiononMarch28,2008,denyingtheapplication,eventhoughacknowledgingtheescalatingCostofPowerRateStabilizationAccountandcitingthat BEL could manage its cash flows and financial obligations by reducing capital and operating expenses.

OnApril2,2008,theCompanyfileditsAnnualTariffApplicationfortheAnnualTariffPeriodJuly1,2008toJune30,2009,proposingthattheaveragetariffincreaseto$0.50perkWhsold.TheCompanyalsofiledunderbyelawsenactedinDecember2007,whereintheCostofPowerRateStabilizationAccountwouldbefully


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recoveredbytheendofthenewfour-yearFullTariffPeriodendingin2011.AtaboutthesametimethattheCompanyfileditsapplication,theGovernmentofBelizerepealedthe2007TariffByelaws;changingbacktheendoftheFullTariffPeriodto2009.

OnMay2,2008,thePUCissueditsInitialDecisiononthetariffapplicationdenyingarateincreasebyincreasingtheCostofPowercomponentoftherateandsignificantlydecreasingtheValueAddedofDeliveryandRateStabilizationAccountrecoverycomponents.TheValueAddedofDeliverywasdecreasedbyareductionintheregulatedassetbaseoftheCompanyandanapplicationofan8.5percentreturnonregulatedassets;aratebelowtheminimumallowedintheRateSettingMethodology.ThePUCarbitrarilyreducedtheCostofPowerRateStabilizationAccountbalancebyaprioryears’chargefor“excess”depreciationandreturnsandbydisallowingpreviouslyapprovedhurricanecost recoveriesand“excess”costofpower for JanuaryandFebruary2008.ThePUC’s InitialDecision, recalculationsanddisallowancesweredoneusinganewlyamendedRateSettingMethodology;implementedthesamedayoftheInitialDecision.

OnMay 12, 2008, BEL filed its objection to the InitialDecision,mainly basedon the PUC’s 8.5 per centreturnonregulatedassetsandthePUC’sactionsindishonouringpreviousagreements,reversingpreviousdecisionsandchangingregulatoryrulesinthemiddleofatariffhearing.OnJune11,2008,theIndependentExpert(Dr.JonathanA.Lesser,Ph.D.),appointedtoreviewtheInitialDecisioninresponsetotheCompany’sobjection,issuedhisfinalreportonhisreviewofthePUC’sInitialDecisionandtheCompany’sobjections.TheexpertagreedwithmostoftheCompany’sobjectionsandrecommendedahigheraveragetariffthanthatproposedbythePUCinitsInitialDecision.

On June 26, 2008, the PUC issued its Final Decisionmaintaining the average tariff at $0.441 per kWh,mainlybyincreasingtheCostofPowerRateStabilizationAccountrecoverycomponentandimplementingasignificantnegativechargecomponent forprioryears’“excess”depreciation, returnand intereston theHurricaneCostRateStabilizationAccount and theMollejonTransmissionLine. Thedecision todisallowinterestontheMollejonTransmissionLinewasnotincludedintheInitialDecisionandwasnotreviewedbythe Independent Expert.

The PUC’s Final Decision included the following:

a. A10percentallowedRateofReturnforcalendaryears2008and2009onaregulatedassetbasethatexcludestheMollejonTransmissionLine,constructionworkinprogressand50percentofassetsplacedintoserviceintherespectiveyear.The10percentisbelowthetarget12percentcontainedintheRateSettingMethodology.

b. A totalof$36,199,894 inprioryears’chargescomprisedof: (i)excessdepreciation foryears2005to2007($9,628,000),(ii)excessreturnonregulatedassetsforyears2005to2007($14,686,000),(iii)disallowanceof interestontheHurricaneCostRateStabilizationAccount foryears2002to2006($1,552,664)and(iv)disallowanceofinterestpaidontheMollejonTransmissionLineovertheperiod2001to2004($10,333,000).


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TheCompanyislegallychallengingthePUC’s2008FinalDecisionandtheRateSettingMethodologyitwasbasedon.Anyfinalcourtrulingsmayrequireadjustmentstotherelatedregulatoryaccounts.Theappealofthe2008FinalDecisionistobeheardinearly2010.

Subsequently,onFebruary6,2009,thePUCattemptedtoamendthe2008FinalDecision.Theamendeddecisionreducedtheaveragetariffto$0.375perkWhfortheperiodJanuary1,2009toJune30,2009;a15percentreductionintheaveragetariff.ItincludedareductionintheCostofPowercomponentofthetariffandasmaller increase intheValueAddedofDeliverycomponentofthetariff.AsperthePUC,theValueAddedofDeliveryincreasewasachievedbyincreasingtheRateofReturnonregulatedassetsfrom10percent to 12 per cent, reducing the regulated asset values on which the return is calculated and transferring the reduction tooperatingexpensesandbyotherminoradjustments tootherValueAddedofDeliverycomponents.

TheCompanyisalsolegallychallengingthisamendeddecisioninlightofthelegalchallengestothe2008FinalTariffDecision.OnFebruary25,2009,thecourtapprovedaninjunctionagainstthePUC’samendmenttotheFinalDecisionuntilthelegalchallengeoftheFinalDecisionisheard.

Thetablebelowsummarizesthecomponentsoftheaveragetariffduringthisperiod.

Tariff Components

Previous BEL Proposed

ARP 2008Initial

Decision

Expert Recommendation

ARP 2008Final

Decision(in effect)

FEB 2009Amended Decision

Jan 1 to Jun 30 (on hold)

Reference COP $0.253 $0.287 $0.307 $0.298 $0.312 $0.223

VAD $0.168 $0.168 $0.130 $0.154 $0.135 $0.158

CPRSA Recovery $0.020 $0.045 $0.004 $0.025 $0.080 $0.080

Correction - - - - -$0.086 -$0.086

Mean Electricity Rate (MER) $0.441 $0.500 $0.441 $0.477 $0.441 $0.375


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2009 Tariff Review

On January 12, 2009 and February 2, 2009, the PUC informed the Company that a Full Tariff ReviewProceeding(FTRP)hadcommencedthatwouldestablishregulatedparametersandaveragetariffsforthefour-year tariffperiod July 2009 to June2013 and requesteddetailed technical andfinancial actual andforecast information (including a business plan) from the Company. The informationwas submitted onFebruary9,2009.BELinformedthePUCthatafinalcompleteapprovedbusinessplanisnotavailable,astheRateSettingMechanismandregulatorydecision(s),onwhichthebusinessplanisheavilydependent,havenot been properly established and finalized. Instead, a summary high level business plan was submitted.

The PUC in its correspondences also pointed out that it intended to further amend the Rate SettingMethodologyduringtheFullTariffReviewProceeding.Sincethesubmittaloftheinformationnotedabove,therehasbeenverylimitedcommunicationfromthePUContheFTRP.

OnApril2,2009, theCompanyfiled itsAnnualTariffReviewProceedingApplicationfor theAnnualTariffPeriodJuly2009toJune2010,requestinga6percentreductioninratesaswellasareversalofthe$36.2millioncharge.TheapplicationincludedadecreaseintheCostofPowercomponentofthetariff,anincreaseintheValueAddedofDelivery,adecreaseintherecoveryoftheCostofPowerRateStabilizationAccountcomponent,aproposedrefundtocustomersforcostofpowercominginbelowthereferenceCostofPowerandaproposedrecoveryfromcustomersforthereversalofthe$36.2millioncharge.Thenewproposedaverage tariffwas $0.415per kWh.ThePUChaspubliclynoted that it couldnot accept theCompany’sapplicationbecauseanAnnualTariffReviewProceedingisnotineffect.Thetablebelowsummarizestheproposedtariffcomponents.

Outlook

Electricity demand in 2010 is forecasted to grow at 1 to 2 per cent as the economy begins to pull out of recession.Declining commodityprices for agricultural exports, decrease in tourism revenues, as a resultof the global financial crisis and a decrease in oil revenues are expected to negatively impact the Belizean economy.

Tariff Components ARP 2008 Final Decision(in effect)

ARP 2009 BEL Proposed(not accepted)

Reference Cost of Power (COP) $0.312 $0.224

Value Added of Delivery (VAD) $0.135 $0.165

CPRSA Recovery $0.080 $0.030

COP Tracking Rebate - -$0.086

Correction -$0.086 $0.082

Mean Electricity Rate (MER) $0.441 $0.415


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OPERATIONS

Key Events & Initiatives

• BelizeElectricityLimited(BEL)receivedaCustomerSatisfactionRatingof82percentin2009. • TheCompanyactivelyresumedreliabilityinitiativestoimproveservice,followingaholdoncapital

expenditure in 2008 as a result of the adverse regulatory decision.

• In April 2009, Belize Aquaculture Limited’s (BAL) heavy fuel oil-fired generation facility wascommissioned into service and began supplying power to BEL.

• InDecember2009,BelizeCogenerationEnergyLimited(Belcogen)commissioneditscogenerationfacility and began supplying power to BEL on a test basis.

• Comisiόn Federal de Electricidad (CFE) cancelled its Firm Power Purchase Agreement with BELclaiming, Force Majeure.

• BELisawaitingtheoutcomeofthelegalchallengetothePublicUtilitiesCommission’sFinalTariffDecisionforthe2008AnnualTariffReviewProceeding.

• Distributionlosswasarecordlowsince2001,at7.3percent.


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The Company concentrated on replacing deteriorated crossarms, poles and insulators on power lines.Equipment were also installed on several rural feeders to isolate weather related and other power line faults and minimize the area impacted.

Significant investments were made to upgrade and construct distribution systems to improve service reliability, voltage quality and minimize system losses. New power lines were constructed in Belmopan City, SanIgnacioTownandDangrigaTown.InLadyville,thedistributionsystemsupplyingpowertothePhilipS.WGoldsonInternationalAirportandsurroundingareaswasupgradedfroma6.6kVtoa22kVdistributionline.SimilarprojectsarecurrentlyunderwayinCorozalTownandSanPedroTown.

Complementing these system upgrades was the training of linemen to conduct thermoscanning surveys to quickly identify and address trouble spots on the power system. Linemen were also trained to work on energizedpowerlinesusinghotlinetechniques.In2009,approximately25powerinterruptionswereavoidedas a result of employing these skills.

In support of meeting power demand growth, the Company completed construction of substations to connect with various Independent Power Producers and commenced construction of substations inBelmopanCityandCorozalTown.

Energy Supply

New generation sources came on line in 2009, strengthening Belize’s energy security. Local generating capacity is now at 117 MW compared to a customer peak demand of 76 MW.

BelizeAquacultureLimited’s(BAL)heavyfueloil-firedgeneratingplant,locatedintheStannCreekDistrict,was interconnected in April 2009 and is providing backup power to improve system reliability and reduce transmission losses.ThePowerPurchaseAgreement (PPA)withBAL is for15years,underwhichBELcanpurchaseupto15MWoffirmcapacityandenergy.

BelizeCogenerationEnergyLimited’s(Belcogen)cogenerationfacility,locatedintheOrangeWalkDistrict,wascommissionedintoserviceinDecember2009.BelcogenwilleventuallyprovideBELwithupto16MWofcapacityandenergy,with13.5MWbeingfirmcapacity.

Constructionofthe19-MWVacahydroelectricfacilityisscheduledforcompletioninthefirstquarterof2010.Vacafeaturesarun-of-the-riverplant,approximatelythreemilesdownstreamoftheMollejonhydroelectricfacilityontheMacalRiver.Uponcompletion,Vacawilladdapproximately80GWhofhydroelectricproductionto Belize’s energy supply.

In2009,energypurchasesfromComisiόnFederaldeElectricidad(CFE)decreasedby13percentcomparedto the previous year. In April 2009, the Mexican utility suspended the supply of firm power to Belize and


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inOctober2009, itcancelledtheFirmPowerPurchaseAgreementwithBEL,claimingForceMajeure.CFEadvisedthatthecancellationofthePPA,whichwastoexpireinDecember2010,hadbecomenecessaryasa result of limited generation capacity. CFE continues to supply BEL with power as available.

Since there is sufficient in-country generation to meet Belize’s energy demand, BEL is only purchasing power from Mexico when it is more economical than in-country generation.

46%

38%

10%

4% 2% 0%

Energy Prodution by Source

Mexico

BECOL

Belize Aquaculture

Diesel

Hydro Maya

Belcogen

2009 Generation Sources

System Expansion

BEL’ssystemexpansionprogramcontinues tobenefitcommunitiesacross thecountry. InSanPedro, theCompany constructed 11 miles of power lines, including a one-mile submarine cable, to serve major tourism and real estate developments. Several new resorts in the area have already connected to the national grid.

InsouthernBelize,BELproceededwiththe$4.5millionBananaBeltElectrificationProjecttoconnectsevenruralcommunitiesintheBananaBelttothenationalgrid.TheEuropeanUnionisfunding75percentofthisprojectandtheGovernmentofBelize, theremaining25percent. Underthisproject,71milesofpowerlinesarebeingbuilttodeliverfirsttimeservicetoalmost5,000residents.Atyear’sendSantaCruzVillageandMonkeyRiverVillagehadbeenconnectedtothenationalgridandtheremainingcommunitieswillbeconnected by the second quarter in 2010.

Human Resources

AttheendofDecember2009,BELhad283permanentemployeeswitha turnover rateof0.27percentcomparedto2.6percentin2008.ThisreflectstheinvestmentBELcontinuestomakeinemployeestoensurethe Company remains an employer of choice in Belize.


[18]

Developing employees to achieve their fullest potential remained a priority in 2009. Training initiativesfocused on honing administrative, management and technical skills, as well as exposing employees to newtrendsanddevelopments invariousfields, includingPowerSystemPlanning,CustomerServiceandCommunications.

UnderanApprenticeshipTrainingProgram,30linemenareworkingtobecomecertifiedjourneymen.Uponcompleting this four-year program, the linemen will be thoroughly familiar with work standards to ensure their safety, as well as the safety of the general public.

BELandtheBelizeEnergyWorkersUnionsignedaMemorandumofUnderstanding(MOU)onOctober14,2009,tosettleissuesrelatingmainlytotheclosureoftheMagazineRoadGeneratingPlantanddifferencesin interpretation of the inflation adjustments to salaries given in 2008.

Safety and Health

BEL remained a model company in Belize for implementing high safety standards aimed at protecting its employees and the general public. In 2009, the Company improved in all its safety performance indices comparedto2008.Theaccidentfrequencyratewasreducedby41percentandmotorvehiclefrequencyrate by 34 per cent.

InNovember2009,theCompanyunderwentasafetyauditandreceivedafavourablescoreof75percent,confirmingthecontinuousprogressitismakingincultivatingastrongsafetyculture.Theauditnotedtheestablishment of a Joint Workplace Safety and Health Committee, implementation of a Workplace Inspection Policyandgreateremphasisoncontractors’safety.

Duringtheyear,employeeswereprovidedtrainingtominimizeaccidentsandtopicsincludedfireextinguisheruse andcare,preventionof slips, trips and falls, defensivedrivingaswell as FirstAid/CPR. Employees intechnicaldepartmentsalsoreviewedtheCompany’sStandardProtectionCode,whichoutlinessafeworkprocedures in the field.

In July 2009, the Company hosted its 9th Annual Safety and Health Week, under the theme “Safety and Health: A Commitment for Life – Make it Home Safe Every Day!” The focusofactivitiesduringthisweekwas togetemployees to assess their work approach to ensure they are in line with the Company’s safety and health objectives.

BEL continues to pay keen attention to public safety and continued to raise awareness of the dangers of electricity when used improperly through advertisements, school presentations and public fairs.


[19]

Environment

BEL continues to strengthen its Environmental Management System (EMS), ensuring that it meets or exceeds all legal requirements and that its employees and contractors thoroughly understand their roles in achieving environmental objectives.

In 2009, two audits of the Company’s EMS confirmed that BEL continues to demonstrate sound environmental practices. Following the audits, all procedures for high and medium risk departments were reviewed and necessary revisions were made to comply with audit recommendations.

Other key focus areas in 2009, were training in spill prevention and response and the introduction of an online material safety data sheet, which provides employees easy access to a database of chemicals used bytheCompanyandrelatedemergencyguidelinesincaseofaccidentalexposure.Thetransportationoffuel over open waters to Caye Caulker for generation purposes was made safer by using a barge specifically designed to carry petroleum products and equipped with safety features to minimize the risk of spills.

BEL is a sponsor of the Belize Audubon Society, which promotes the sustainable use and preservation of Belize’s natural resources through environmental education and protected areas management. In 2009, the organization hosted environmental awareness training for employees and promoted preservation of the environmentthroughreducinggarbagegenerationandrecycling. Since2005,BELhascontributedover26,000poundsofusedpapertotheBelizeRecyclingProgram.

Community Involvement

BEL actively seeks opportunities to support community development in education, health, arts, sports, culture and the environment. The Company’s major community involvement initiatives include itsscholarship program, under which two Belizean students are currently pursuing Bachelor’s Degrees inElectricalEngineeringatMemorialUniversityofNewfoundlandinCanada.

In 2009, the Company provided financial support for school improvement initiatives at several local educational institutions, including the Institute forTechnical andVocational, Education andTraining, St.John’sJuniorCollegeandAllSaintsPrimarySchoolinBelizeCity.

BEL was a major sponsor of the 4th Annual Belize Band Fest, which provides an opportunity for young people to display their musical talents.

TheCompanysponsoredtheAnnualCrossCountryCyclingClassic,oneofthecountry’s longestrunninghistoric sporting events as well as the Belize Carnival Association, which organized Belize’s Annual Carnival RoadMarch.


[20]

Funds were donated to the Lifeline Foundation, which provides disadvantaged children with food, medicine, clothingandothernecessitiesandtotheBelizeCouncilfortheVisuallyImpaired,whichusedtheCompany’sfinancial assistance to host a feeding program for the underprivileged.

TheCompanysupportedtheRotaryClub’s“Gift of Life” initiative, under which the organization helps children sufferingfromlifethreateningconditions,tomeettheirmedicalneeds.

During theyear,employees raised funds topurchaseChristmashampers fordeserving familiesandalsoto distribute breakfast on Christmas morning to the homeless and residents of the Sister Cecelia Home fortheelderly,DorothyMenziesChildcareCenterandRaymondParksShelter.TheCompanyalsomadeacontribution to the employee initiative which has been a tradition for the past 11 years.


[21]

INDEPENDENT AUDITORS’ REPORT 22

FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008: Balance Sheets 23 StatementofIncomeandRetainedEarnings 24 StatementofCashFlows 25 Notes to Financial Statements 26


[24]

Statement of Income and Retained EarningsYearsendedDecember31,2009and2008

(In Belize thousands of dollars)

See accompanying notes to financial statements.

ELECTRICITY REVENUES

COST OF POWER

OTHERREVENUEOPERATINGEXPENSESDEPRECIATIONANDAMORTIZATIONFINANCECHARGESGAINONFOREIGNEXCHANGE

NET EARNINGS (LOSS) BEFORE TAXES

CORPORATETAX

EARNINGS (LOSS) APPLICABLE TO SHAREHOLDERS

EARNINGS (LOSS) PER SHARE

RETAINED EARNINGS, BEGINNING OF YEAR

Net earnings (loss) Dividends

RETAINED EARNINGS, END OF YEAR

Notes

1d & 16

59 & 101e & 9

1k & 13

1i & 14

2009

$ 186,566

56,346

4,772

309

11,564

8,895

0.13

93,911

8,895 -

$ 102,806

2008

$ 140,577

25,274

8,046

241

$ 108,546

93,911

(130,220) (115,303)

(2,669) (2,872)

(25,547) (14,575)

(9,741)

(21,049) (13,584)

(6,894)

(7,966)

(10,838)

(0.16)

(10,838) (3,797)

$

$

$

$

$

$


[25]

Statement of Cash FlowsYearsendedDecember31,2009and2008


See accompanying notes to financial statements.

CASH FROM OPERATIONS:NET EARNINGS (LOSS) ITEMSNOTAFFECTINGCASH:DEPRECIATIONANDAMORTIZATION(NET)EXCHANGEGAINONLONG-TERMDEBTCHANGEINNON-CASHWORKINGCAPITAL

CASH USED IN INVESTING:ACQUISITIONOFPLANTANDEQUIPMENT

CASH (USED IN) FROM FINANCING:PROCEEDSFROMNEWLOANSPAYMENTOFDEBTCAPITALCONTRIBUTIONPROCEEDSFROMSALEOFDEBENTURESDIVIDENDSPAIDDEBENTURESREDEEMED

NET INCREASE IN CASH AND SHORT-TERM INVESTMENTSCASHANDSHORT-TERMINVESTMENTS,BEGINNINGOFYEARCASH AND SHORT-TERM INVESTMENTS, END OF YEAR

ITEMSPAIDBYCASH: InterestTaxes

2009

8,895

14,575

40,951 64,112

102

8,921 - -

16,183

9,091 25,274

2008

13,584

40,550 43,055

11,459

2,747

614

2,017 7,074

9,091

(309)

(43,325) (43,325)

(13,529)

(98) (4,604)

(10,838)

(241)

(41,652) (41,652)

(9,339) (451)

(3,797) (5)

(9,993) (2,929)

$

$

$$

$

$$

$

(10,599)(2,653)


[26]

1. STATUS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Status-BelizeElectricityLimited(the“Company”) isapubliccompanyincorporatedinBelizeonOctober5,1992tocarryonthebusinessofgeneratingandsupplyingelectricitytothepublic.TheCompany’s major shareholders are Fortis Inc. of Canada and the Belize Social Security Board.

Significant accounting policies / regulations - Accounting policies conform to Canadian generally acceptedaccountingprinciples(CanadianGAAP)andtoaccountingrequirementsestablishedfromtimetotimebythePublicUtilitiesCommissionofBelize(PUC).Inordertocomplywithregulatoryrequirements,theCompanyfollowsaccountingpracticesprescribedbythePUC.Accordingly,thetimingofrecognitionofcertainrevenuesandexpensesmaydifferfromthatotherwiseexpectedunder Canadian generally accepted accounting principles applicable to non-regulated operations.

a. Accounting Standards and Interpretation - In February 2008, the Canadian Accounting Standards Board (“AcSB”) confirmed that the use of International Financial ReportingStandards(IFRS)willberequiredin2011forpubliclyaccountableenterprisesinCanada.InApril2008,theAcSBissuedanOmnibusExposureDraft,proposingthatpubliclyaccountableenterprisesberequiredtoapplyIFRS,infullandwithoutmodification,onJanuary1,2011.TheadoptiondateofJanuary1,2011willrequiretherestatement,forcomparativepurposes,ofamounts reportedby theCompany for itsyearendedDecember31,2010andof theopeningbalancesheetasatJanuary1,2010.TheAcSBproposesthataccountingstandard,Accounting Changes, paragraph 1506.30, which would require an entity to discloseinformationrelatingtoanewprimarysourceofGAAPthathasbeenissuedbutisnotyeteffectiveandthattheentityhasnotapplied,notbeappliedwithrespecttothisExposureDraft.TheCompanyiscontinuingtoassessthefinancialreportingimpactsoftheadoptionofIFRSand,atthistime,theimpactonfuturefinancialpositionandresultsofoperationsisnot reasonablydeterminableorestimable.TheCompanydoesanticipatea significantincreaseindisclosureresultingfromtheadoptionofIFRSandiscontinuingtoassessthelevel of disclosure required.

b. Regulation -TheElectricityAct,Chapter221andStatutory InstrumentNo.145of2005,Electricity (Tariffs, Charges and Quality of Service) Byelaws 2005 of the Laws of Belizeregulates and makes provision for electricity services in Belize and provides specific powers totheCommissiontoenforcespecificregulationsinrespecttotariffs,charges,andqualityofservicestandards.TheStatutoryInstrumentgovernsthetariffs,rates,chargesandfeesforthe transmission and supply of electricity and for existing and new services to be charged

Notes to Financial StatementsYearsendedDecember31,2009and2008



[27]

1. STATUS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

by the Company to consumers in Belize and the mechanisms, formulas, and procedures whereby such tariffs, rates, charges and fees are calculated and determined. The PUCisauthorizedunder thePublicUtilitiesCommissionAct to serveas the regulator for theelectricitysectorinBelize.TheprimarydutyofthePUCistoensurethattheservicesrenderedby the Company are satisfactory and that the charges imposed in respect of those services arefairandreasonable.ThePUChasthepowertooverseetheratesthatmaybechargedin respect of utility services and the standards that must be maintained in relation to such services. Inaddition,thePUCisresponsiblefortheawardoflicensesandformonitoringand enforcing compliance with license conditions.

BasicelectricityratesoftheCompanyarenormallycomprisedofthreecomponents.ThefirstcomponentisValueAddedofDelivery(‘‘VAD’’),thesecondiscostoffuelandpurchasepower (“COP”), including the variable cost of generation, which is a flow through incustomer rates and the third is the deferred cost of power recovery/rebate component. TheVADcomponentofthetariffallowstheCompanytorecover itsoperatingexpenses,transmission and distribution expenses, taxes and depreciation and assumes a rate of return onregulatedassetbase,intherangeof10percentto15percent.TheCompanyundergoesannual rate proceedings and full rate proceedings, every four years, to determine the level of theVADandCOPcomponentsofelectricity ratesandanyRateStabilizationAccount(“RSA”) component. The VAD component of the tariff is normally only reviewed everyfouryearswhile theCOPcomponentandRSAcomponentare reviewedateachannualrate proceeding and at Threshold Event Review Proceedings. Threshold Event ReviewProceedingscanoccurwhendeferralsofcostofpower intotheRSAexceedathresholdlevel.

c. Cost Receivable from (Payable to) Customers–TheElectricity(Tariffs,FeesandCharges)Byelaws include a rate stabilization mechanism, which permits the Company to recover fromcustomerscharges thataredeferred toaCostofPowerRateStabilizationAccount(CPRSA)andaHurricaneCostRateStabilizationAccount(HCRSA).Therateofrecovery isrecalculatedonJuly1ofeachyearbasedonthebalanceintheCPRSAandHCRSAasofthepreceding year-end but may be adjusted as a result of a threshold event. In the absence of this mechanism, these costs would not be deferred but would be recorded in the income statement in the period in which theywere incurred. On January 1, 2007, the HCRSAaccountwasreducedtonilasapprovedbythePUC.TheCostReceivablefrom(Payableto)CustomersalsoincludesanycorrectionstotariffsestablishedbythePUC(Seenote16).




[28]

1. STATUS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) On July 1 of each year, the rate charged to customers is recalculated to reflect changes in

theaccountfromyeartoyear. Thisregulatoryaccountisclassifiedunderotherassetsorliabilities.

A+\-$3,000,000thresholdlevelfortheCPRSAwasestablishedwitheffectfromJuly1,2005

whichcouldresultinadditionaltariffadjustmentsduringacalendaryearshouldthebalanceintheCPRSAexceed(orislowerthan)thethresholdlevel(SeeNote16).

d. Sale of electricity - Sale of electricity is recognized on a twelve-month basis of meter readings taken during the financial year. Revenue in respect of unread consumption ofelectricity atDecember 31 is included in incomeof the subsequent financial year on aconsistent basis.

Non-regulated operations under Canadian generally accepted accounting principles generallyrecognizerevenueonanaccrualbasis. Revenuefor2009 includes$9.8million(2008-$10.2million)billedtocustomersin2009forelectricityprovidedforinDecemberof2008.Anestimated$10.4million(2008-$9.8million)inelectricitysaleswasprovidedinDecemberof2009,butbilledandrecordedasrevenuein2010.

e. Foreign currency translation and exchange gains and losses - Foreign currency transactions are converted at the rate prevailing on the transaction date. Foreign currency balances at year-end are converted at the rates of exchange at that date with realized and unrealized exchange gains and losses included in net income (See Note 9).

f. Property, plant and equipment and depreciation-Property,plantandequipmentarecarried at cost and with the exception of land and assets under construction, are depreciated under the straight line basis over their estimated useful lives which, for the major classes of assets,areasfollows:

Buildings 20 - 40 years Plant,machineryandequipment 5-40years Maintenance and repairs are expensed as incurred. Expenditures, which significantly

increasevalueorextendusefulasset life,arecapitalized. TheCompanyhasadoptedthecomposite depreciation policy consistent with North American industry practice whereby




[29]


the cost of plant and equipment retired, less salvage value, is charged to accumulated depreciation.

On construction projects, interest at varying rates is capitalized and included as a cost in the appropriate property accounts (See Note 9).

Capital expenditures include overhead costs attributable to capital assets constructed during the year.

g. Inventories - Inventories are valued at the lower of average cost and net realizable value. Full provision is made against materials specifically identified as damaged or obsolete.

h. Provision for doubtful debts - Full provision is made in respect of disconnected consumer accounts after application of consumer security deposits and a 3% general provision is made against active accounts net of deposits.

i. Earnings per share - Earnings per share is calculated by dividing net income applicable to ordinary shares by the weighted average number of ordinary shares outstanding during the year.

j. Installation fees - Installation fees were previously credited to income in respect of installations carried out by the Company. Commencing in 2009, in accordance with the 2008decisionofthePUC,theseamountsarenowrecordedascapitalcontributions.(Seenote 1q).

k. Corporate tax / business tax–Thecompanyrecordscorporatetaxaspaidintheyear.Deferredincometaxdoesnotarisefromtherecordingofcorporatetax(SeeNote13).

l. Capital contributions – Customer contributions towards costs of constructing assets are recorded as capital contributions and amortized over the useful life of the related asset (See Note1qand15).

m. Intangible assets – Intangible assets include transmission rights, which represent the cost of transmission lines and substation extensions constructed across the Mexican border and




[30]


usedbytheCompanyinpurchasingenergyfromMexico.Thetransmissionrightshaveafinite life and are accounted for using the cost model. In the application of the cost model, transmission rights are amortized over the 15-year life of the power purchase contract,which commenced in 1998.

Software costs are also included in Intangible Assets as of January 1, 2009 with prior year amounts reclassified for comparative purposes. Software costs have a finite life and are accounted for using the cost model. In the application of the cost model, software costs are amortized over the useful life of the software, five to 10 years.

Intangibles are tested for impairment annually and more frequently when there are changes in events and or circumstances that may cause an immediate impairment. Impairment test includes comparing the current carrying value to the fair value of the intangible at the point ofevaluation.ReversalsofimpairmentsarenotpermittedunderCanadianGAAP.

n. Pension costs - A defined contribution plan is in effect for management and non-managementstaff.Pensioncostsaredeterminedbasedondefinedcontributions to theplanthatarefundedbytheCompany.TheschemeisadministeredbyaseparateBoardofTrusteesandthefundsareheldseparatelyfromthoseoftheCompany.Pensionexpensefortheschemeamountedto$990,893in2009($671,376in2008).

o. Consumer deposits-TheCompanycollectsadepositfromcustomersfortheprovisionofelectrical services which is held as security against energy consumed.

p. Use of accounting estimates –The preparation of financial statements in conformitywith Canadian generally accepted accounting principles requires management to make estimatesandassumptionsthataffectthereportedamountsofassetsand liabilitiesanddisclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

q. Change in accounting policy – Installation fees is recognized as capital contribution in2009. This treatmentwasmadeprospectivelyasaprescribetreatmentper regulatorydecisionmadebythePUCindeterminingregulatedassetvalue.Thischangewasappliedprospectively using regulatory guidelines instead of Canadian GAAP which requires aretroactive treatment.




[31]

2. ACCOUNTS RECEIVABLE

3. PREPAYMENTS AND DEFERRED EXPENSES

4. INVENTORIES



ConsumersGovernmentofBelize(GOB)Other

Less:provisionfordoubtfulaccounts

2009

$ 15,666 2,210

1,768 19,644

$ 17,063

2008

14,4301,948

1,148 17,526

15,292 (2,234) (2,581)

InsuranceOther deferred charges

2009

435 1,257 1,692

2008

374 1,125

1,499

BulkstoresFuel and oil

Less:provisionfordamagedandobsoletespares

2009

4,999 1,464

6,463

6,445

2008

8,453 2,756

11,209

11,187 (22) (18)

$

$

$

$

$

$

$

$

$

$


[32]

5. PROPERTY, PLANT AND EqUIPMENT

Depreciation expense shown in the statement of income for 2009 is reduced by $2,429,646($3,694,636–2008)representingamortizationofcapitalcontribution,otherdepreciationexpenserecoveries and amortization of intangible assets. Amortization of software costs (intangible assets) totaled$1,166,429for2009.

6. BANk OVERDRAFT

TheCompanyhasa$1,000,000unsecuredanda$5,100,000securedoverdraftfacilitywiththeBelizeBank Limited and Scotiabank (Belize) Limited, respectively. Scotiabank (Belize) Limited credit facility issecuredbyanequitablemortgageovertheCompany’sheadquartersandMagazineRoadrealestate.Theoverdraftsbearannualinterestof14%and15%respectivelyandarepayableondemand.



CostJanuary 1, 2009 Additions TransfersDisposals

December31,2009

Accumulated Depreciation January 1, 2009 Additions Disposals

December31,2009

Net Book Value December 31, 2009

December31,2008

Land and buildings

$17,678

4 -

17,682

5,185450 -

5,635

$ 12,047

$12,493

Plant, machinery and equipment

$413,982

40,805

450,537

76,762 16,555

90,259

360,278

$337,220

(4,250)

(3,058)

Assets under construction

$44,11843,255

46,379

- - -

-

46,379

$44,118

(40,809)(185)

Total

$475,77843,255

-

514,598

81,947 17,005

95,894

$ 418,704

$393,831

(4,435)

(3,058)

$$


[33]

7. ACCOUNTS PAYABLE AND ACCRUALS

8. RELATED PARTY TRANSACTIONS



TradepayablesGovernmentofBelizeBananaBeltProject(RestrictedCash)Accrued interestOther

2009

$ 26,610 - -

566 7,530

$ 34,706

2008

14,412 1,552 2,006 1,577

5,317 24,864

DuefromRelatedParties:

Belize Electric Company Limited (BECOL)

DuetoRelatedParties:

BelizeElectricCompanyLimited(BECOL)–PowerPurchases

Fortis Inc.

During the year ended December 31, 2009 the following transactions

wererecordedwithrelatedparties:

EnergyPurchases

Miscellaneousreimbursableexpenses:

Intercompany invoicing to BEL

BEL invoicing to intercompany

2009

$ 89 $ 89

$ 9,408 $ 237 $ 9,645

2008

- -

3,266 443 3,709

BECOL

$ 31,208

-$ 365

Fortis Inc.

-

950 8

$$

$$

$

$

$

$

$

$$


[34]

9. LONG - TERM DEBT

(1) Government of Belize:

a. Loan No 3776A/S BEL:Unsecured loan of US$11,400,000 from the InternationalBank for Reconstruction and Development (IBRD) for onlending to theCompany,approvedaspartof thePower IIProject.Repaymentisby23equalsemi-annualinstallmentsofUS$480,000,whichcommencedFebruary15,2000andafinalinstallmentofUS$460,000onAugust15,2011.Interestis 0.5% per annum above the Bank’s “Cost of QualifiedBorrowings”asdefinedintheloanagreement.Theeffectiverate of interest as ofDecember 31, 2009 is 6.14% (2008 –7.44%) per annum.

b. Loan No. 7.0971/2:Unsecured loan of EURO 3,700,000 from EuropeanInvestment Bank for on lending to the Company, approved aspartof thePower IIProject.Repayment isby15annualinstallments, which commenced May 31, 2000. The loanbearsinterestat5%perannum.

c. Loan No 14/OR-BZ :Unsecured loan of US$12,706,210 from the CaribbeanDevelopment Bank for on lending to the Company,approvedaspartofthePower IIProject. Repayment isby60 quarterly installments of US$193,935 and CDN$39,318,whichcommencedFebruary5,2000. Atendof2008, theentireloanbalancewasconvertedtoUSdollars.Repaymentof US$127,984 and US$86,812 are done quarterly sinceDecember 2008.The loan bears interest at 5.32% (2008 –6.10%) per annum.



2009 2008

$ 2,505 $ 4,730

3,903 4,504

9,920 12,948


[35]

9. LONG - TERM DEBT (CONTINUED) (2) RBTT Merchant Bank Limited:

LoanfacilitygrantedonOctober1,2002forUS$14,031,358to finance the Gas Turbine Generator Project. The loan iscomprised of two tranches – Tranche A for US$9,003,087repayable in 14 semi-annual installments commencing October2003at 5.75% interestper annumandTrancheBforUS$5,028,271 repayable in18 semi-annual installmentscommencingOctober2003at8.15%perannum.The loanis secured by a debenture over the assets comprising the project.

(3) Toronto-Dominion Bank:

Loan of US$5,435,671 guaranteed by the Export-ImportBank of the United States for the purchase of electricitydistribution, substation and transmission equipment. The loan was repayable in 10 semi-annual installmentscommencing October 20, 2004. Interest was payable at 5.75%perannum.Theloanwasrepaidinfullin2009.

(4) The Bank of Nova Scotia (Canada):

Loan of US$10,152,591 guaranteed by the Export-ImportBank of the United States for the upgrade/refurbishmentof the existing electrical grid in Belize. Loan was fully drawn down in 2008. Repayment is by 14 equal semi-annualinstallmentscommencingFebruary25,2008.Theloanbearsinterestattheprevailingsix-monthLIBORplus0.50%marginper annum.



2009 2008 $ 4,135 $ 7,836

- 1,094

15,938 19,026


[36]

9. LONG - TERM DEBT (CONTINUED)

(5) Scotiabank & Trust (Cayman) Limited:

Unsecured,non-revolvingtermloanofUS$3,000,000forthefinancing of other cost related to the upgrade/refurbishment oftheexistingelectricalgridinBelize.Repaymentisbyonebullet payment of principal atmaturity on December 15,2010(subjecttorefinancing).Theloanbearsinterestattheprevailing six-month LIBOR plus 5.0% margin per annumand is payable semi-annually.

Less:Currentinstallments

Theloansarerepayableasfollows: 2010 $15,880 2011 7,966 2012 6,262 2013 5,710 2014 5,712 Subsequently 871 $42,401



2009 2008

$ 6,000 $ 6,000

42,401 56,138 (15,880) (11,983)$ 26,521 $44,155

LoanNo.7.0971/2isdenominatedinEuro.Fortheyear2009,net$309,262inforeignexchangegains($241,175foreignexchangegains-2008)hasbeenrecordedbasedonperiodicrevaluationsoftheloanincludingagainbookedontheconversionoftheCDBLoantoUSdollarsasnotedabove.

InterestcapitalizedduringtheyearendedDecember31,2009relatingtocapitalexpansionprojectsamountedto$2,620,012($2,555,640-2008).


[37]



10. DEBENTURES

Series I:12,401unsecureddebenturesof$76eachand160,465unsecureddebenturesof$100each(12,401of$76and160,465of$100-2008)tomatureDecember31,2012withinterestpayablequarterlyat12%per annum.

Series II:193,718 unsecured debentures of $100 each (193,914 - 2008) tomatureMarch31,2021with interestpayablequarterlyat9.5%perannum.

Series III:249,090 unsecured debentures of $100 each (249,852 - 2008) tomature July 31, 2022 with interest payable quarterly at 10% per annum.

Series IV:82,026unsecureddebenturesof$100each(82,046-2008)tomatureSeptember 30, 2027 with interest payable quarterly at 10% per annum.

2009 2008

$ 2,587 $ 3,289 7,245 7,821 2,529 (1,660) (2,620) (2,556)$ 9,741_ $ 6,894

$ 16,989 $ 16,989

19,372 19,391

24,909 24,985

8,203 8,205

$ 69,473 $ 69,570

9. LONG - TERM DEBT (CONTINUED)

Finance charges

Interest - long-term debtInterest - otherInterestonCPRSAandotherinterestcharges(recoveries)Interest capitalized

2009 2008


[38]

10. DEBENTURES (CONTINUED)

TheSeriesIdebenturescanbecalledbytheCompanyatanytimeafterJune30,2003untilmaturity,by giving holders not more than 60 days or not less than 30 days written notice and are repayable at the option of the holders at any time on or after June 30, 2002 by giving 12 months written notice totheCompany.RedemptionbyagreementbetweentheCompanyandthedebentureholderatany time is also allowed.

TheSeriesIIdebenturescanbecalledbytheCompanyatanytimeafterApril30,2008untilmaturityby giving holders not more than 60 days or not less than 30 days written notice and are repayable at the option of the holders at any time on or after April 30, 2008 after giving 12 months written notice totheCompany.RedemptionbyagreementbetweentheCompanyandthedebentureholderatany time is also allowed.

TheSeries III debentures canbecalledby theCompanyat any timeafterAugust31, 2009untilmaturity by giving holders not more than 60 days or not less than 30 days written notice and are repayable at the option of the holders at any time on or after August 31, 2009 after giving 12 monthswrittennoticetotheCompany.RedemptionbyagreementbetweentheCompanyandthedebenture holder at any time is also allowed.

TheSeriesIVdebenturescanbecalledbytheCompanyatanytimeafterSeptember30,2014untilmaturity by giving holders not more than 60 days or not less than 30 days written notice and are repayable at the option of the holders at any time on or after September 30, 2014 after giving 12 monthswrittennoticetotheCompany.RedemptionbyagreementbetweentheCompanyandthedebenture holder at any time is also allowed.

TheIndenturestothedebenturescontaincovenants,whichmustbecompliedwithbytheCompany.In the event of a default as defined in the Indentures, the Company through the Fiscal Agent or via aTrusteeappointedbythedebentureholdersmayberequiredtopurchasethedebenturesattheirface value.

The issue of Series IV debentureswas suspended in June 2008 as a result of the Company notmeeting at the time an interest coverage ratio level required for the issuanceof newdebt.Thedebenture interest reinvestment plan, which allowed debenture holders to reinvest their interest on their debentures in additional debentures was also suspended during the second quarter of 2008. TheissueofSeriesIVdebenturesremainssuspendedasaresultofbeingoffsideareturnonassetratio covenant contained in other loan agreements (See Note 16).




[39]



11. SHARE CAPITAL

Ordinaryshares:Authorized100,000,000sharesof$2.00each

Issuedandfullypaid69,023,009sharesof$2.00each

Convertibleredeemablepreferenceshares:Authorized12,000,000sharesof$2.00each

12. SPECIAL SHARE

Specialrightsredeemablepreferenceshare: Authorized,issuedandfullypaid1shareof$1.00. RightsattachedtotheSpecialShare:

Income - the Special Share is not entitled to participate in any income distributed by the Company.

Voting - the holder of the Special Share is entitled to receive notice of, and to attend and speak at, any general meeting or any meeting of any class of shareholders of the Company, but the Special Share does not carry a right to vote or any other rights at any such meeting.

Redemption -Theholderof theSpecialSharemay require theCompany to redeemtheSpecialShare at par at any time by serving written notice upon the Company and delivering the relevant share certificate to the Company. Any redemption is subject to the provisions of the statutes and the Articles of the Company.

Capital -TheSpecialShareconfersontheholderthereoftheright,onawinding-uporotherreturnofcapital but not on a redemption, to repayment in priority to any payment to the holders of Ordinary SharesandatleastinparitywiththeholdersofthePreferenceSharesandtheholdersofanyotherpreference shares of the Company from time to time, of the amount paid up on the Special Share.

2009 2008 $ 200,000 $ 200,000 $ 138,046 $ 138,046

$ 24,000 $ 24,000


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12. SPECIAL SHARE (CONTINUED)

Purchaseandtransfer-TheCompanyshallnotpurchase,butmayredeemtheSpecialShare.TheSpecialSharemaybetransferredonlytoaMinisteroftheGovernmentofBelizeoranypersonactingonthewrittenauthorityoftheGovernmentofBelize.

RighttoappointChairman-Article4(B)ofTheArticlesofAssociationoftheCompanystatesthat“whendeterminingtherightsattachingtoanyshares,thesharesheldbytheGovernmentofBelizeshallbedeemedtoincludesharesheldbytheSocialSecurityBoardoranyotherPublicStatutoryCorporation.”Theholderof thespecial share isentitledtoappoint twodirectors to theBoardofDirectorsoftheCompany,oneofwhomistoserveasthechairmanatanytimeduringwhichtheholderofthespecialshareistheholderofOrdinarysharesamountingto25%ormoreoftheissuedshare capital of the Company.

13. CORPORATE TAX

TheCompanypaystaxundertheIncomeandBusinessTaxActofBelize.Incometaxischargedattherateof25%butiscappedat1.75%ofgrossrevenuesasofMarch1,2005.

14. EARNINGS (LOSS) PER SHARE

Net earnings/(loss) applicable to shareholders Shares outstanding (Weighted Average) Earnings/(loss) per share



2009 2008 $ 8,895 69,023,009 69,023,009

$ 0.13

(10,838)$

$ (0.16)


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15. CAPITAL CONTRIBUTIONS

Capital contributions are customer contributions towards capital installation costs including GovernmentofBelizecontributionstowardsruralelectrificationprograms.

Capital contributions brought forwardAdditionsCapital contributions carried forward

Amortization brought forwardAdditionsAmortization carried forwardCapital contributions – net

16. COMMITMENTS AND CONTINGENCIES

Compliance with covenantsTheindenturetothedebenturesandotherloanagreementscontainnumerouscovenantsthatmustbecompliedwithbytheCompany.AsatDecember31,2009,theCompanywasincompliancewiththesecovenantsexceptfor IBRDandCaribbeanDevelopmentBank return on net fixed assets financial loan covenant.

Asaresultofthe2008AnnualReviewProceedingFinalDecisionissuedbythePUC,theCompanybooked a $36.2millionprovision against revenues in 2008. Additionally, the financial statementimpactoftheFinalDecisioncontinuestocausetheCompanynottomeetthefinancialratiodebtcovenantnotedabove.TheCompanyhasinformedtheselendersofthissituationandrequestedawaiverwhereapplicable.Untilsuchtimethatthisrequestisapprovedorthecovenantbroughtonside, the Company is no longer in a position to enter into new indebtedness.

The insurancecoverageoftheCompany’stransmissionanddistributionassetswasdiscontinuedin 1994 due to a limitation in the availability and a significant increase in the cost of this insurance. In1995,theCompanyapprovedaself-insuranceplanfortransmissionanddistributionassets foratotalof$5,000,000andearmarked$500,000ofretainedearningsperannumtobesetasideforthisplan.As atDecember31, 2004, $5,000,000of retainedearningshasbeenappropriated.TheCompanyalsohasestablishedastand-bysecurednon-revolving lineofcreditof$5,000,000thatforms part of this self-insurance plan.

2009 2008 $ 27,140 $ 27,004 9,654 136 36,794 27,140

6,826 6,240 734 586 7,560 6,826$ 29,234 $ 20,314


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16. COMMITMENTS AND CONTINGENCIES (CONTINUED)

Legal issues -TheCompany is subject tovarious legalproceedingsandclaims thatarise in theordinary course of business operations. Management believes that the amount of liability, if any, fromtheseactionswouldnothaveamaterialeffectontheCompany’sfinancialpositionorresultsof operations.

Rate Stabilization Account/Cost Receivable from (Payable to) Customers – In accordance with byelawsgoverningthedeterminationofelectricitytariffs,chargesandqualityofservicestandards,the Company is allowed to defer excess costs of fuel, power purchases, and diesel operating and maintenance expenses, plus interest on the account balances, to be recovered from or rebated to customers over four years.

AnaccountknownastheCPRSAwasestablishedtoregulatethemannerinwhichtheseexcesscostsofpowerandchangesintheCPRSAarepassedontocustomers.TheCostofPowercomponentin$/kWhwas$0.253toJune30,2008and$0.312toDecember31,2009.NetexcessCostofPowerand interest andother corrections orderedby the PUC in its 2008 tariff decision for theperiodJanuary1,2009toDecember31,2009amountedto($25,749,536),(2008–($32,037,486)),whileanet$2,880,708,(2008–($1,689,127))wasrecoveredforthesameperiod.

ThePUCregulates the recoveryof thebalance in theCPRSAandrelatedaccounts.ThePUCwilladdress subsequent balances in future annual rate submissions or threshold events, and recovery will be dependent on future operational circumstances that cannot be determined at this time.

Tariff Setting Mechanism (Annual & Full Tariff Period Corrections)–TheCompany’stariffsareapprovedbythePUCbasedoncertainforecastsandassumptionswithrespecttocostofservice,salesandqualityofservice.Atthecompletionofannualandfulltariffperiodreviews,theCompany’srates are adjusted based on the latest forecasts and assumptions. These rate adjustments alsoincorporatecorrectionsfordifferencesbetweentheactualresultsandthelastsetofassumptions/forecasts laidout intherelevantrateorderdelivered.ThesecorrectionsarereferredtoasAnnualandFullTariffPeriodCorrections.DecisionsbythePUCarehandeddownbywayofanorderthatfollows an approved rate setting methodology and until such order is delivered, the Company is not deemedtohaveacquiredanyassetorliabilitywithrespecttopossibleAnnualandFullTariffPeriodcorrectionsthatthePUCmayormaynotimplement.




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16. COMMITMENTS AND CONTINGENCIES (CONTINUED)

The 2008 tariff decision included a $36.2millionnegative correction to tariffs.This amountwasbooked inaRegulatoryAccountPayable thatwasamalgamatedwithother regulatoryaccountsandrebatedovertheJuly2008toJune2009tariffperiodasprescribedbythePUC.Inthe2008tariffdecision,thePUCalsoadoptedanautomaticadjustmentmechanism(AAM)wherebyadjustmentsto the cost of power component of the tariff could be ordered on amonthly basis dependingon a comparison of the actual cost of power deferrals versus forecast cost of power deferrals as determinedbythePUC.ThismechanismisyettobefullyimplementedbythePUC.

TheCompanyispresentlychallengingthe2008tariffdecisionandtheRateSettingMethodologyitwasbasedon.Decisionsarisingfromthe2008tariffreviewprocessincludingthenegativecorrectiontotariffsmaythereforebesubjecttochangewhentheCourtrulingsarefinalized.

SummaryofContractualObligations:(In Belize millions of dollars)

Long-termdebt(LTD)Operating leases (rent) Purchaseobligations-energy(BECOL)Purchaseobligations-energy(Belcogen)Purchaseobligations-energy(HydroMaya)Purchaseobligations–energy(BAL)InterestobligationsonLTDandCapitalleases

Totalobligations

111.9 15.9 96.0 0.3 0.1 0.2236.9 45.9191.0137.5 26.6110.9 20.8 1.7 19.1 463.6 20.6 443.078.5 8.1 70.4 1,049.5 118.9930.6

2011 to Total 2010 2014


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17. FINANCIAL INSTRUMENTS

Fair value:Thecarryingamountsofcash,receivables,trade,otherpayablesandshort-termdebtat the balance sheet date represent best estimates of fair values because of the relative short-term maturities of these assets and liabilities. Long-term obligations were contracted at market terms. Due to theunavailabilityof a long-termmarket in the country current fair valuesof long termobligations are not determinable.

18. FINANCIAL RISk MANAGEMENT

TheCompanyhasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

Credit risk: The Company has a large and diversified customer base, which minimizes theconcentrationofthisrisk.TheCompany’screditriskisconcentratedasfollows:

GovernmentofBelize 14% Residentialcustomers 50% Commercial customers 30% Industrial customers 6%

Management mitigates this type of risk by regularly enforcing a customer deposit policy based on the level of risk exposure.

Interest Rate Risk: The Company is exposed to interest rate risk associated with short-termborrowingsandfloating-ratedebt.TheCompanymitigatestheserisksbycontinuouslymonitoringthe interest rates and ensuring that the optimum interest rates are received at all times.

Liquidity Risk:TheCompany’sfinancialpositioncouldbeadverselyaffectedifitfailstoarrangesufficientfinancingtofunditscapitalexpendituresandrepaymentofmaturingdebt.TheCompanyis subject to numerous factors including result of operations, change in rate setting regulations and conditions in bank and credit markets and general economic conditions.

TomitigateLiquidityrisk,theCompanyislegallychallengingadverseregulatorydecisionsandhasnot acquired any new debt.


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Financial and Operating Statistics

FINANCIAL STATISTICS(Belize thousands of dollars except as noted)

EnergyRevenuesNetProfit(Loss)Net Fixed AssetsCapital ExpendituresTotalAssetsLongTermDebtDebenturesShareholders’ Equity (excluding Contributed Capital)

Performance IndicatorsRateofReturnonNetFixedAssetsRateofReturnonShareholders’EquityEarnings(Loss)pershare($)

OPERATING STATISTICS

Sales (MWh)Industrial & CommercialResidentialStreet LightingTotal

Customer Accounts (numbers)Industrial, Commercial & Street LightingResidentialTotal

Net Generation (MWh)NetDieselGenerationPurchasedPower-BECOLPurchasedPower-HydroMayaPurchasedPower-BALPurchasedPower-BelcogenPurchasePower-CFETotal

OtherLossesPeakDemand(MW)InstalledCapacity(DieselPlant)(MW)Employees (number)

Years Ended December 31

2009

186,5668,895

418,70443,325

472,26726,52169,473251,593

4.9%3.6%0.13

158,452234,596

24,326417,374

72474,81975,543

18,760179,949

7,76048,781

1,330216,233472,813

11.7%76.233.7283

2008

140,577(10,838)393,83141,652435,25744,15569,570

242,698

-1.1%-4.3%(0.16)

158,992224,030

23,963406,985

72573,49274,217

10,704191,589

12,898 - -

248,396463,587

12.2%74.337.0261

2007

159,60729,864

372,83447,119

429,73844,24566,829257,333

10.3%11.9%

0.43

143,118214,925

23,716381,759

69971,99272,691

36,078166,727

10,676 - -

225,227438,708

13.0%70.036.2260

2006

149,57726,084

340,73732,046408,95349,59360,317242,654

10.5%13.1%

0.48

132,553203,361

23,679359,593

67870,27970,957

30,136177,733

- - -

209,814417,683

13.9%66.636.9243

2005

120,54018,883

322,16325,203

373,67375,27656,016154,721

9.6%13.0%0.59

123,701202,419

23,606349,726

59468,04168,635

81,55368,275

- - -

253,995403,823

13.4%63.543.5244

2004

105,51215,822310,53625,512

346,47289,57653,062

136,096

8.3%12.3%0.53

116,075189,498

24,404329,977

53765,54466,081

78,85063,215

- - -

235,796377,861

12.7%61.143.6248

2003

101,42014,079

296,60953,964

338,120107,465

49,346120,546

8.8%12.3%0.50

109,075175,817

22,661307,553

53262,54463,076

97,88961,154

- - -

188,714347,757

11.5%57.449.3242

2002

96,01713,045252,65829,095297,518

88,39438,394

108,040

9.1%12.5%

0.47

98,509159,229

21,208278,946

45359,36259,815

46,49188,243

- - -

180,510315,244

11.5%53.727.0237

2001

90,79912,061

238,07039,029276,954

88,40636,615

100,490

9.5%12.5%

0.44

117,828119,144

19,743256,715

48456,59957,083

43,36791,374

- - -

158,634293,375

12.5%49.327.0244

2000

81,45110,728

208,82229,754

244,42856,46317,10093,055

9.4%11.9%

0.39

110,193102,832

16,327229,352

51952,63253,151

41,17193,615

- - -

126,807261,593

12.3%44.526.3296

1 Adjusted to reflect reclassification of certain Commercial Customers to Residential. Certain comparative figures may have been reclassified to confirm with the current year’s presentation.

1


[46]

CORPORATE DIRECTORY/ INVESTOR INFORMATION

BOARD OF DIRECTORSRodwell Williams ChairmanH. Stanley Marshall Deputy ChairmanFrank CrothersRichard HewDennis JonesAnthony MichaelDylan ReneauKarl SmithLynn Young

EXECUTIVE MANAGEMENTLynn Young President and Chief Executive OfficerRene Blanco Vice President, Finance and Administration and Chief Financial OfficerCurtis Eck Vice President, Customer Care and OperationsJoseph Sukhnandan Vice President, Engineering and Energy SupplyJuliet Estell Manager, Executive Services & Company Secretary

CORPORATE ADDRESSBelize Electricity Limited2 ½ Miles Northern HighwayP.O. Box 327Belize City, BelizeCentral America

FISCAL AGENTPlatinum Trust Corporation Limited28 Regent StreetBelize City, BelizeCentral America

SHAREHOLDER SERVICESFor general information, shareholder publications and other requests, please contact:Manager, Executive Services & Company SecretaryBelize Electricity Limited2 ½ Miles Northern HighwayP.O. Box 327Belize City, BelizeCentral AmericaTel: 501-227-0954 (ext. 1104)E-mail: [email protected]

DIRECT DEPOSITShareholders may obtain automatic electronic deposit of dividends to their designated Belizean financial institution by contacting the Securities Officer at the Corporate Headquarters.


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Notes____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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