ENWIN UTILITIES LTD. BOARD OF DIRECTORS MEETING

Transcription

EWU Board of Directors Meeting - Agenda
WINDSOR CANADA UTILITIES BOARD OF DIRECTORS MEETING
PUBLIC SESSION
Friday, May 29, 2015 at 9:00 a.m.
Boardroom, 787 Ouellette Avenue, Windsor, Ontario
EWU Directors
WCU Directors
V. Neufeld, Chair
D. Dilkens, Vice-Chair
D. Dilkens, Chair
M. Komsa, Vice-Chair
A. Taqtaq
G. Fenn
G. Fenn
F. Francis
M. Komsa
J. Gignac
J. Elliott
J. Gignac
1.
Call to Order & Declarations of Conflicts of Interest
2.
Summary of Business
3.
Meeting Minutes
3.1 EWU Board Meeting Minutes of April 21, 2015
3.2 WCU Board Meeting Minutes of April 21, 2015
4.
Executive Reports
4.1 President & CEO
4.1.1
President & CEO Update – May 2015
4.1.2
Ministry of Energy CDM Letter
4.2 Vice President Finance & CFO
EWU
4.2.1
2015 Q1 Financial Statements
4.2.2
Dividend Payable
4.2.3
Financial Reporting for Quarter Ending Q1, 2015
4.2.4
Sinking Fund Update Report
4.2.5
Regulatory Affairs Report
4.2.6
Rates Report
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EWU Board of Directors Meeting - Agenda
WUC
4.2.7
WCU
4.2.8
4.2.9
Dividend Payable
4.2.10
Financial Reporting for Quarter Ending Q1, 2015
4.3 Vice President Asset Management
4.3.1
Asset Management Report Hydro
4.3.2
Asset Management Hydro Update: Comparison of OH to UG Services
4.3.3
Asset Management Hydro Update: Rationale of Projects Completed by
EWU Crews vs. Contractor
4.3.4
Asset Management Report Water
4.3.5
Comparison of Electricity Rates Summary
4.3.6
2014 Year in Review - Customer Service Department
4.4 Vice President Operations
4.4.1
Q1 Water Quality Report
4.4.2
Project EnSight Report
4.4.3
Safe Drinking Water Act Board Training Report
5.
In Camera Session (Materials enclosed under separate cover)
6.
Other Business
7.
Administrative Business
7.1 2015 Meeting Schedule
8.
Conclude Meeting
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EWU Board of Directors Meeting - Summary of Business
RECOMMENDATIONS FOR
WINDSOR CANADA UTILITIES LTD. BOARD OF DIRECTORS MEETING
PUBLIC SESSION
FRIDAY, MAY 29, 2015
1.
EWU/WCU
Call to Order and Declarations of Conflicts of Interest
2.
EWU
That the EWU Board of Director Meeting Minutes of April 21, 2015 be
approved.
3.
WCU
That the WCU Board of Directors Meeting Minutes of April 21, 2015
be approved.
4.
EWU/WCU
That the President & CEO Update – May 2015 be received.
5.
EWU/WCU
That the Ministry of Energy CDM Letter be received.
6.
EWU
That the EnWin Utilities Ltd. 2015 Q1 Financial Statements be
approved as recommended by the EWU Audit & Finance Committee.
7.
EWU
That a $750,000 dividend be declared to Windsor Canada Utilities
Ltd. based on the 2015 Q1 financial results, as recommended by the
EWU Audit & Finance Committee.
8.
EWU
That the EWU Financial Reporting for Quarter ending Q1 2015 be
approved, as recommended by the EWU Audit & Finance Committee.
9.
EWU
That the Sinking Fund Update Report be received.
10.
EWU
That the Regulatory Affairs Report be received.
11.
EWU
That the Rates Report be received;
And that Management file a Full Annual IR Rate Application with the
OEB for the setting of 2016 distribution rates.
12.
EWU
That the WUC 2015 Q1 Financial Statements be received, as
recommended by the EWU Audit & Finance Committee.
13.
WCU
That the WCU 2015 Q1 Financial Statements be approved, as
recommended by the WCU Audit & Finance Committee.
14.
WCU
That a $1,000,000 dividend be declared to the City of Windsor, based
on the 2015 Q1 financial results, as recommended by the WCU Audit
& Finance Committee.
15.
WCU
That the WCU Financial Reporting for Quarter ending Q1 2015 be
approved as recommended by the EWU Audit & Finance Committee.
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EWU Board of Directors Meeting - Summary of Business
16.
EWU
That the Asset Management Report Hydro be received.
17.
EWU
That the Asset Management Hydro Update: Comparison of OH to UG
Services Report be received.
18.
EWU
That the Asset Management Hydro Update: Rationale of Projects
Completed by EWU Crews vs. Contractor be received.
19.
EWU
That the Asset Management Report Water be received.
20.
EWU
That the Comparison of Electricity Rates Summary be received.
21.
EWU
That the 2014 Year in Review – Customer Service Departments
Report be received.
22.
EWU
That the Q1 Water Quality Report be received.
23. EWU/WCU
That the Project EnSight Report be received.
24.
That the Safe Drinking Water Act Board Training Report be received;
And that EWU Management schedule a MOE/WCWC Training
Course for the members of the WUC and EWU Boards and EnWin
Management.
EWU
25. EWU/WCU
That the 2015 Meeting Schedule be received.
26.
EWU
That the Board move in camera.
27.
EWU
That the in camera session be concluded.
28.
WCU
That the Board move in camera.
29.
WCU
That the in camera session be concluded.
30. EWU/WCU
That the meeting be terminated.
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EWU Board of Directors Meeting - Meeting Minutes
EnWin UTILITIES LTD.
BOARD OF DIRECTORS MEETING
PUBLIC MEETING MINUTES
TUESDAY, APRIL 21, 2015
A public meeting of the EnWin Utilities Ltd. Board of Directors was held on Tuesday,
April 21, 2015 in the Boardroom at 787 Ouellette Ave., Windsor, Ontario.
ATTENDANCE
Directors:
Drew Dilkens (chair), Garnet Fenn, Jo-Anne Gignac, Marty
Komsa, Vic Neufeld, Abe Taqtaq
Management:
President & CEO Maxwell Zalev, VP Asset Management John
Wladarski, CFO & VP Finance Victoria Zuber, VP Operations
John Stuart, Director Regulatory Affairs & Corporate Secretary
Andrew Sasso, Director Human Resources Gregg Merner,
Director Organizational Development Mike McKinnon, Assistant to
the President D. Ens, Executive Assistant C. Menard and
Executive Assistant & Recording Secretary D. Loeffen
Others:
See Schedule A (attached) for a list of the attendees from the
public.
CALL TO ORDER & DECLARATION OF CONFLICTS OF INTEREST
The Chair noting quorum called the meeting to order at 8:59 a.m.
No conflicts of interest were declared
MEETING MINUTES
Moved by V. Neufeld and seconded by A. Taqtaq
That the EnWin Utilities Public Board Meeting Minutes of November 18, 2014 be
approved.
-CARRIED
That the EnWin Utilities Public Board Meeting Minutes of March 24, 2015 be
approved.
-CARRIED
PRESIDENT & CEO REPORT
There was a lengthy discussion about the Premier’s Advisory Council on Government
Assets report that was recently published regarding the recommendations made for
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EnWin Utilities Board of Directors Public Meeting
Tuesday, April 21, 2015 – Page 2
Hydro One. M. Zalev advised that the report recommends that the Ontario
Government sell 60% of its shares in Hydro One Networks and that Hydro One
Brampton be sold or merge with Enersource, Horizon and Powerstream, forming
about a 900,000 customer LDC. M. Zalev further advised that the report recommends
that shareholders of LDCs with less than 30,000 customers be given a tax holiday if
they sell their shares to a non-municipal third party. There are about 35 LDCs that fall
in to this category. M. Zalev noted that EnWin’s direction from the City has been that
this LDC is not for sale and will continue to search for any opportunities to enhance
Shareholder value. Management responded satisfactorily to all questions from the
Board.
There was discussion about the announced increase in Time of Use rates. M. Zalev
agreed to provide a comparison on what a typical customer would pay within the
region and Canada wide.
There was discussion about the Low Income Assistance Program. M. Zalev advised
that the OEB are still developing the program, which will roll out on January 1, 2016.
There was a lengthy discussion about rate design change by the OEB that will impact
residential customers. Further discussions about rates will take place at an education
session for board members next week.
There was discussion about the communication strategy plan currently in place.
There was consensus that a communication marketing plan is required to address
changes to rates, emphasizing that EnWin has been holding the line on rates amid
provincial increases. Web site re-design customer self-service were also discussed.
There was discussion about the Single Utility Initiative and the Board requested that
Management provide quarterly updates at the Audit & Finance Committee meetings
going forward.
There was discussion about labour negotiations at neighbouring LDCs.
Moved by A. Taqtaq and seconded by M. Komsa
That the President & CEO Report be received.
-CARRIED
PRESIDENT & CEO UPDATE REPORT
Moved by A. Taqtaq and seconded by M. Komsa
That the President & CEO Update Report be received.
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-CARRIED
EWU AUDITED FINANCIAL STATEMENTS FOR DECEMBER 31, 2014
Moved by M. Komsa and seconded by J. Gignac
That the EnWin Utilities Ltd. 2014 Audited Financial Statements be approved, as
recommended by the Audit & Finance Committee.
-CARRIED
EWU 2014 FINANCIAL YEAR IN REVIEW
Moved by G. Fenn and seconded by V. Neufeld
That the EnWin Utilities Ltd. 2014 Financial Year in Review Report be received, as
recommended by the Audit & Finance Committee.
-CARRIED
EWU FINANCIAL REPORTING FOR QUARTER ENDING Q4, 2014
Moved by G. Fenn and seconded by A. Taqtaq
That the EWU Financial Compliance Reporting for Quarter ending Q4 2014 be
approved.
-CARRIED
REGULATORY AFFAIRS REPORT
Moved by M. Komsa and seconded by G. Fenn
-CARRIED
RATES REPORT
There was discussion about input required from the City on rate strategy prior to the
next set of meetings in May.
Moved by V. Neufeld and seconded by G. Fenn
That the Rates Report be received.
-CARRIED
WUC AUDITED FINANCIAL STATEMENTS FOR DECEMBER 31, 2014
There was discussion about the inclusion of EWU dividends in the City of Windsor
budget and the status of the sinking fund.
Moved by V. Neufeld and seconded by G. Fenn
That the Windsor Utilities Commission 2014 Audited Financial Statements be
received, as recommended by the Audit & Finance Committee.
-CARRIED
WUC 2014 FINANCIAL YEAR IN REVIEW
Moved by J. Gignac and seconded by G. Fenn
That the Windsor Utilities Commission 2014 Financial Year in Review Report be
received, as recommended by the Audit & Finance Committee.
-CARRIED
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ASSET MANAGEMENT REPORT: HYDRO
Moved by J. Gignac and seconded by G. Fenn
That the Asset Management Report: Hydro be received.
-CARRIED
ASSET MANAGEMENT REPORT: WATER
Moved by G. Fenn and seconded by A. Taqtaq
That the Asset Management Report: Water be received.
-CARRIED
PMO 2014 YEAR END REPORT
Moved by G. Fenn and seconded by V. Neufeld
That the PMO 2014 Year End Report be received.
-CARRIED
CDM ACTIVITIES REPORT
Moved by J. Gignac and seconded by A. Taqtaq
That the CDM Activities Report be received.
-CARRIED
CONSERVATION FIRST FRAMEWORK (2015-2020); CONSERVATION AND
DEMAND MANAGEMENT (CDM) PLAN REPORT
Moved by M. Komsa and seconded by V. Neufeld
That EnWin Utilities Ltd. (“EnWin”) file a Conservation & Demand Management Plan
(“CDM Plan”) with the Independent Electricity System Operator (“IESO”) in fulfillment
of EnWin’s Ontario Energy Board (“OEB”) licence requirement, such that the CDM
Plan shall comply with the Energy Conservation Agreement between EnWin and IESO
and that CDM Plan shall be based on terms and conditions substantially the same as
those set out in this “Conservation First Framework (2015-2020): Conservation and
Demand Management (CDM) Plan Report.
-CARRIED
CORPORATE COMMUNICATIONS & PUBLIC RELATIONS REPORT
That the Corporate Communications & Public Relations Report be received.
-CARRIED
OPERATIONS REPORT: HYDRO
There was discussion about the recent incident that occurred involving an employee.
A full investigation was completed and steps have been taken to ensure this type of
incident does not occur again.
Moved by A. Taqtaq and seconded by J. Gignac
That the Operations Report: Hydro be received.
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-CARRIED
OPERATIONS REPORT: WATER
There was a discussion about bromate and the potential risks when levels are too
high. J. Stuart advised a report will be provided to City Council in response to the
associated Council Question and that Management will attend at Council to provide
further clarification on this issue.
Moved by J. Gignac and seconded by V. Neufeld
That the Operations Report: Water be received.
-CARRIED
2014 ANNUAL WATER COMPLIANCE SUMMARY REPORT
Moved by J. Gignac and seconded by A. Taqtaq
That the 2014 Annual Water Compliance Summary Report be received.
-CARRIED
2015 MEETING SCHEDULE
Moved by A. Taqtaq and seconded by J. Gignac
That the 2015 Meeting Schedule be received;
And that the draft June-December 2015 meeting dates for this board and its’
committee(s) be approved.
-CARRIED
IN CAMERA SESSION
Moved by V. Neufeld and seconded by J. Gignac
That the Board move to In Camera session.
-CARRIED
The In Camera session commenced at 10:00 a.m.
The In Camera session concluded at 10:16 a.m.
TERMINATION
Moved by A. Taqtaq and seconded by G. Fenn
The meeting terminated at 10:16 a.m.
__________________________
Recording Secretary
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-CARRIED
WINDSOR CANADA UTILITIES LTD.
BOARD OF DIRECTORS MEETING
PUBLIC MEETING MINUTES
TUESDAY, APRIL 21, 2015
A public meeting of the Windsor Canada Utilities Ltd. Board of Directors was held on
Tuesday, April 21, 2015 in the Boardroom at 787 Ouellette Ave., Windsor, Ontario.
ATTENDANCE
Directors:
Drew Dilkens (chair), Marty Komsa, John Elliott, Garnet Fenn, JoAnne Gignac and Fred Francis
Management:
President & CEO Maxwell Zalev, VP Asset Management John
Wladarski, CFO & VP Finance Victoria Zuber, VP Operations
John Stuart, Director Regulatory Affairs & Corporate Secretary
Andrew Sasso, Director Human Resources Gregg Merner,
Director Organizational Development Mike McKinnon, Assistant to
the President D. Ens, Executive Assistant C. Menard and
Executive Assistant & Recording Secretary D. Loeffen
Others:
See Schedule A (attached) for a list of the attendees from the
public.
CALL TO ORDER & DECLARATION OF CONFLICTS OF INTEREST
The Chair noting quorum called the meeting to order at 8:59 a.m.
No conflicts of interest were declared.
MEETING MINUTES
Moved by F. Francis and seconded by G. Fenn
That the Windsor Canada Utilities Ltd. Public Board Meeting Minutes of November 20,
2014 be approved.
-CARRIED
That the Windsor Canada Utilities Ltd. Public Board Meeting Minutes of March 24,
2015 be approved.
-CARRIED
PRESIDENT & CEO REPORT
There was a lengthy discussion about the Premier’s Advisory Council on Government
Assets report that was recently published regarding the recommendations made for
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Windsor Canada Utilities Ltd. Board of Directors Public Meeting
Hydro One Networks. Hydro One will sell about 15% of their shares and may split off
the distribution from the transmission side of the business as well. Hydro One
Brampton will either be sold or merged in with Enersource, Horizon and Powerstream,
forming about a 900,000 customer LDC. The Advisory Council also recommends that
LDCs with less than 30,000 customers be given a tax holiday if they sell their utility to
a non-municipal third party. There are about 35 LDCs that fall in to this category.
Once the Federal Budget is passed, it will be clear as to what the rules are and how
they impact LDCs. EnWin’s direction from the City has been that this LDC is not for
sale and will continue to search for any opportunities to enhance the Shareholder
value. Management responded satisfactorily to all questions from the Board.
There was discussion about the increase in Time of Use peak rates starting in the
summer of 2015 and whether statistics were available that compared the portions
controlled by the LDC versus those controlled by Ontario and across Canada. The
Board requested that Management provide a comparison on what a typical customer
would pay within the region and Canada wide.
There was discussion about the Low Income Assistance Program. M. Zalev advised
that the OEB are still developing the program, which will roll out on January 1, 2016.
There was a lengthy discussion about rate design change by the OEB that will impact
residential customers. Further discussions about rates will take place at an education
session for board members to be scheduled next week.
There was discussion about the communication strategy plan currently in place.
There was general consensus among the Board and Management that a solid
communication marketing plan is required in order to properly communicate changes
to rates, emphasizing that EnWin has been holding the line on rates for the past 9
years. The EnWin Utilities and Windsor Utilities Commission web sites will also be redesigned to encourage more of an environment of self service to the customer.
Consistent and effective communication will be key going forward.
There was discussion about the Single Utility Initiative and the Board requested that
Management provide quarterly updates at the Audit & Finance Committee meetings
going forward.
There was discussion about labour negotiations that have taken place for
neighbouring LDCs.
Moved by G. Fenn and seconded by M. Komsa
That the President & CEO Report be received.
-CARRIED
PRESIDENT & CEO UPDATE REPORT
Moved by G. Fenn and seconded by M. Komsa
That the President & CEO Update Report be received.
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-CARRIED
Windsor Canada Utilities Ltd. Board of Directors Public Meeting
WCU AUDITED FINANCIAL STATEMENTS FOR DECEMBER 31, 2014
Moved by M. Komsa and seconded by J. Gignac
That the Windsor Canada Utilities Ltd. 2014 Audited Financial Statements be
approved, as recommended by the WCU Audit & Finance Committee.
-CARRIED
WCU 2014 FINANCIAL YEAR IN REVIEW
Moved by G. Fenn and seconded by J. Gignac
That the Windsor Canada Utilities Ltd. 2014 Financial Year Review Report be
received, as recommended by the WCU Audit & Finance Committee.
-CARRIED
WCU FINANCIAL REPORTING FOR QUARTER ENDING Q4, 2014
Moved by G. Fenn and seconded by J. Gignac
That the WCU Financial Compliance Reporting for Quarter ending Q4 2014 be
approved.
-CARRIED
CORPORATE COMMUNICATIONS & PUBLIC RELATIONS REPORT
Moved by J. Gignac and seconded by F. Francis
That the Corporate Communications & Public Relations Report be received.
-CARRIED
2015 MEETING SCHEDULE
Moved by F. Francis and seconded by J. Gignac
That the 2015 Meeting Schedule be received;
And that the draft June-December 2015 meeting dates for this board and its’
committee(s) be approved.
-CARRIED
TERMINATION
The meeting terminated at 10:16 a.m.
__________________________
Recording Secretary
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-CARRIED
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AGENDA SUBMISSION
To:
EWU Audit & Finance Committee and Board of Directors
April 30, 2015
From: Victoria Zuber
Re:
Sinking Fund Update Report
As established by the policy for the management and investment of the sinking fund
established with respect to debentures due November 2042 (“policy”), management is to
provide annual investment reports to the Committee.
This report provides a review of EWU’s current investment held at RBC Dominion Securities
Inc. as of December 31, 2014.
Investment Highlights:





Initial investment of $2.50M in September of 2014;
Investment is compliant with asset allocation guidelines as established by the
policy;
Semi-annual investments of $600k will be made in 2015 (April/October);
Investment value as of December 31, 2014 was $2.51M;
Cumulative return since inception 0.4%.
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April 30, 2015
Asset Allocation as at December 31, 2014
Geography
Fixed Income-Canada
Fixed Income-US & Global
Total Fixed Income
Market Value
2,034,603
252
2,034,855
%
81.08%
0.01%
81.09%
Cash and Cash Equivalent
Total Cash and Cash Equivalents
270,043
270,043
10.76%
10.76%
Equity-Canada
Equity-US
Equity-Global
Total Equity
93,322
54,305
56,918
204,545
3.72%
2.16%
2.27%
8.15%
2,509,443
100.00%
Total Portfolio
2% EQ-Global
2% EQ-US
4% EQ-CAD
11% Cash
0.01% FIUS,Global
81% FI-CAD
Market Value History as at December 31, 2014
September
October
November
December
Beginning
Ending
Cumulative
Market Value Market Value % Return
2,500,000
2,495,754
(0.2%)
2,495,754
2,498,671
(0.1%)
2,498,671
2,506,482
0.3%
2,506,482
2,509,534
0.4%
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April 30, 2015
The Committee also requested that the return achieved from the second firm be periodically
reviewed. It should be noted that the asset mix and investment options as recommended
by the second firm, were not compliant with the policy.
3 Month Return Comparison
EWU's Portfolio
Canadian
Income Fund
0.4%
1.75%
US Dividend
Fund
8.84%
Canadian
Dividend Fund
0.00%
3.17%
2.00%
4.00%
RECOMMENDATION:
That the Sinking Fund Update Report be received.
Vice President & CFO
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6.00%
8.00%
10.00%
AGENDA SUBMISSION
To:
May 6, 2015
From: Andrew J. Sasso
Re:
1)
Regulatory Affairs Report
Ontario Electricity Support Program
The Ontario Electricity Support Program (“OESP”) continues to be developed. The
most recent information is that the Provincial Government will establish a new
provincial agency or hire a third party contractor to assess the qualifications of OESP
applicants throughout Ontario. Distributors and local agencies would point customers
to a new web portal operated by the provincial body. Customers would input such
things as income, size of household, type of household heating, and use of medical
devices. The inputs would be evaluated by the provincial body and validated through
other bodies such as the Canada Revenue Agency.
The provincial body would then communicate the level of OESP support available to
that customer, to the customer and the distributor. The leading idea of how to
communicate the results to the distributor is by modifying a private technology
currently used to conduct distributor-retailer communications. There are significant
concerns about how this would practically work and what it would cost just to make
these interface changes.
The Government is proposing a regulatory amendment to prescribe information that
must be provided on the bill of an OESP recipient and possible others. This would
include a special line for the OESP credit, information on the recipient’s eligibility
period, a notice of when to renew one’s eligibility, and notice to all residential
customers regarding how to apply for the OESP.
2)
Debt Retirement Charge
The Government has also recently provided guidance on the removal of the Ontario
Hydro Debt Retirement Charge (“DRC”). As with the OESP, these changes would
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create significant complications in the billing process and result in significant billing
system reprogramming, testing, and monitoring to ensure both compliance and
accuracy.
In the case of the DRC for residential customers, the bill would be required to show
that the amount is “$0”, rather than removing the line altogether. For bulk-metered
apartments and condominiums, the draft regulation proposes a partial exemption from
the DRC and therefore there is a separate specialized calculation and bill presentation
process for those customers.
For all customer receiving a full or partial exemption from the DRC, the Government is
proposing that their bills display the DRC that would have been payable but for the
exemption. In the case of partial exemptions, the bill would go on to “show the math”
for how the partial exemption was calculated.
3)
Fixed Portion of the Bill
Analysis continues into how the OEB will shift the distribution charges from being
primarily volumetric for a typical household to entirely fixed. There are numerous ways
to arrive at a new rate design, all of which arrive at the same place in four years, but
the path to get there differs fairly significantly. EnWin will be advocating for a
methodology that creates as smooth and stable a transition as possible.
4)
Hydro One Transmission Line and Station for Leamington
EnWin is continuing to participate in this proceeding and has retained Aird & Berlis LLP
to assist on an as-needed basis. The next step will likely be a hearing of some sort at
the OEB in Toronto to carefully scrutinize the methodology for calculating the
apportionment of project costs for this and future Hydro One transmission projects.
Hydro One is self-represented. The small county distributors have retained Gowlings
LLP. Torys LLP is representing Brookfield’s wind farm interests. Numerous other
parties have gotten involved with their lawyers in order to argue the broader precedentsetting principles that are in play for the first time.
Depending on the outcome of this proceeding, the impact to EnWin could be several
million dollars in the immediate term. In the long term, it could be a much larger sum
as Hydro One refurbishes, replaces, and potentially expands its infrastructure in
Windsor-Essex.
5)
OPA Integrated Resource Regional Planning
On April 29, 2015, the Independent Electricity System Operator (“IESO”) published the
Windsor-Essex Integrated Resource Regional Plans (“IRRP” or “Regional Plan”). The
Regional Plan is consistent with the versions EnWin was involved in co-drafting.
There are no significant issues. The IESO will present the Regional Plan to interested
members of the region through a web-based presentation. That presentation will be
archived for those unable to participate on the date (TBA). In contrast with regions
requiring new generation stations or new large transmission corridors constructed, this
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region’s plan is relatively innocuous. The main issue is the new transmission line and
station to serve Leamington and south-east Essex County. The Regional Plan is
relevant in the proceeding discussed above, but the document itself and the
consultation are not at issue and participation in the consultation will not draw local
stakeholders into the adjudicative proceeding.
6)
Industry Restructuring
On April 16, 2015, the Premier’s Advisory Council on Government Assets (a.k.a.
Ed Clark Panel) issued its final report. On April 23, 2015, the Government endorsed
the recommendations of the Council through the 2015 Provincial Budget. The
proposal is to sell up to 60% of the shares of Hydro One. The Government announced
that about half of the funds will be used to pay down the Ontario Hydro debt and the
other half will be used to fund transit infrastructure projects.
The Government also endorsed in principle the proposal to consolidate Hydro One
Brampton with other LDCs located in 905, specifically PowerStream, Enersource, and
Horizon. The combined utility would serve about 1 million customers. According to
customer count, it would become the one of the largest electricity distributors in
Ontario, surpassing Toronto Hydro and being second only to Hydro One Networks.
Hydro Ottawa has continued their aggressive advocacy for the transfer of about
50,000 Hydro One customers located in the City of Ottawa to Hydro Ottawa. The
City’s most recent position is that if Hydro One will not transfer the customers, then it
should only charge those customers the same rates as Hydro Ottawa charges. There
is no regulatory or legal basis for such a proposal, but it is good politics in what has
been a very public battle. Hon. Bob Chiarelli (Ottawa MPP, former Ottawa mayor,
former Hydro Ottawa Chair, and Energy Minister) has offered to set a price through
arbitration. Ottawa has rejected this proposal based on the significant premiums that
underpin current market prices.
RECOMMENDATION
Director, Regulatory Affairs &
Corporate Secretary
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AGENDA SUBMISSION
To:
EWU Audit & Finance Committee & Board of Directors
WUC Audit & Finance Committee & Board of Commissioners
May 5, 2015
Re:
WUC 2015 Q1 Financial Statements
Enclosed are the WUC Q1 financial statements for the period ended March 31, 2015.
Included in the financial package are highlights of the significant cost drivers along with
financial variance analysis of operational results.
RECOMMENDATION:
EWU Audit & Finance Committee
That the WUC 2015 Q1 Financial Statements be received;
And that the WUC 2015 Q1 Financial Statements be recommended to the EWU Board of
Directors for receipt.
EWU Board of Directors
That the WUC 2015 Q1 Financial Statements be received, as recommended by EWU Audit
& Finance Committee.
85
WUC Audit & Finance Committee and Board of Commissioners
2
May 5, 2015
RECOMMENDATION (continued):
WUC Audit & Finance Committee
That the WUC 2015 Q1 Financial Statements be received;
And that the WUC 2015 Q1 Financial Statements be recommended to the Board of
Commissioners for approval.
WUC Board of Commissioners
That the WUC 2015 Q1 Financial Statements approved, as recommended by WUC Audit &
Finance.
Vice President Finance and CFO
Encls
86
WINDSOR UTILITIES COMMISSION
BALANCE SHEET
AS AT MARCH 31, 2015
(in thousands of Canadian dollars)
March
2015
March
2014
December
2014
ASSETS
Current Assets
Cash and Bank
Investments
Accounts Receivable
Accounts Receivable - Unbilled Revenue
Inventories
Prepaid Expenses
Total Current Assets
$
Property, Plant and Equipment
Property, Plant and Equipment
Accumulated Depreciation
Total Property, Plant and Equipment
$
255,127
(26,935)
228,192
Other Assets
Investments, Sinking Fund
Work in Progress
Total Other Assets
TOTAL ASSETS
3,823
25,873
4,417
4,208
816
377
39,514
4,490
25,296
4,540
4,045
956
373
39,700
$
235,830
(20,865)
214,965
2,538
32
2,570
1,552
25,757
4,963
4,302
791
224
37,589
254,562
(25,342)
229,220
20
20
2,510
11
2,521
$
270,276
$
254,685
$
269,330
$
5,148
4,398
9,546
$
4,603
1,153
5,756
$
9,710
1,186
10,896
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Liabilities
Due to Related Parties
Total Current Liabilities
Long-Term Liabilities
Long-Term Debt
Due to EWU
Customer Deposits
Employee Future Benefits
Deferred Revenue
Total Long-Term Liabilities
51,310
5,342
41
6,526
1,891
65,110
51,298
6,164
77
6,168
1,397
65,104
51,307
5,342
34
6,546
1,901
65,130
61,854
133,766
195,620
61,854
121,970
183,824
61,854
131,449
193,303
SHAREHOLDER'S EQUITY
Equity
Contributed Capital
Retained Earnings
Total Equity
TOTAL LIABILITIES AND EQUITY
$
Page 1 of 5
87
270,276
$
254,685
$
269,330
INCOME STATEMENT
FOR THE PERIOD ENDED MARCH 31, 2015
Year to Date - March 31 2015
Actuals
Budget
Variance
REVENUE
Fixed Revenues
Consumption Revenues
Suburban Wholesale
Watermain Levy
TOTAL REVENUE
$
MISCELLANEOUS REVENUES
District Energy (Net)
Change of Occupancy
Late Payment and Collection Charges
Sale of Scrap
Other Operating Revenues
TOTAL MISCELLANEOUS REVENUES
4,313
3,072
489
3,322
11,196
$
4,305
3,443
503
3,487
11,738
$
8
(371)
(14)
(165)
(542)
Annual
Budget
Previous Year to Date - March 31 2014
Actuals
Variance
$
4,257
3,035
429
3,250
10,971
56
37
60
72
225
$
17,221
14,838
2,705
14,427
49,191
Latest Current
Estimate
$
17,278
14,467
2,691
14,285
48,721
322
24
17
1
107
471
279
26
16
4
95
420
43
(2)
1
(3)
12
51
322
14
54
6
128
524
10
(37)
(5)
(21)
(53)
1,171
104
64
14
383
1,736
1,214
102
65
11
395
1,787
OPERATING EXPENSES
Cost of Water Production
Transmission and Distribution Maintenance
Community Relations
Customer Billing and Collection
Administration and General
Vehicle Operations and Maintenance
Property and Tools Maintenance
Salaries & Benefits
Regulatory
TOTAL OPERATING EXPENSES
1,333
1,380
36
163
536
68
454
2,196
498
6,664
1,284
1,113
45
132
662
60
449
2,321
6
501
6,573
(49)
(267)
9
(31)
126
(8)
(5)
125
6
3
(91)
1,314
1,376
27
122
466
66
444
2,167
4
477
6,463
(19)
(4)
(9)
(41)
(70)
(2)
(10)
(29)
4
(21)
(201)
5,292
4,351
186
530
2,630
218
1,807
8,873
9
2,005
25,901
5,341
4,618
177
561
2,614
226
1,812
8,847
3
2,002
26,202
OPERATING INCOME
5,003
5,585
(582)
5,032
(29)
25,026
24,307
OTHER EXPENSES
Depreciation
Interest Expense
Loss (Gain) on Sale of Property, Plant & Equipment
TOTAL OTHER EXPENSES
2,177
454
55
2,686
2,280
469
2,749
103
15
(55)
63
1,956
479
20
2,455
(221)
25
(35)
(231)
9,119
1,878
10,997
9,016
1,863
55
10,934
NET INCOME (LOSS)
$
2,317
$
2,836
$
(519)
Page 2 of 5
88
$
2,577
$
(260)
$
14,029
$
13,373
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE PERIOD ENDED MARCH 31, 2015
OPERATING ACTIVITIES
Net Income
Add (Deduct) Items not Affecting Cash
Depreciation
Loss (Gain) On Sale of Equipment
Change in Employee Future Benefits
Change in Cost of Issuing Debentures
Change in Work in Progress
Change in Non-Cash Working Capital Components
TOTAL CASH PROVIDED (USED) FROM OPERATIONS
March
2015
$
2,317
March
2014
$
1,624
91
(20)
3
(21)
(4,104)
(110)
FINANCING ACTIVITIES
Amount Owing to EnWin Utilities Ltd.
Receipts from (Payments to) EnWin Utilities Ltd.
TOTAL CASH PROVIDED (USED) FROM FINANCING
3,212
3,212
INVESTING ACTIVITIES
Acquisition of Capital Assets
Acquisition of Investments, Sinking Fund
Interest Earned on Investments
TOTAL CASH PROVIDED (USED) FROM INVESTING
(687)
(29)
(115)
(831)
2,577
December
2014
$
12,057
1,422
38
(56)
3
(1)
(6,481)
(2,498)
5,989
212
322
12
7
(1,278)
17,321
(569)
(569)
(822)
(536)
(1,358)
(742)
(742)
(19,739)
(2,500)
(471)
(22,710)
Net Increase (Decrease) in Cash for the Period
2,271
(3,809)
(6,747)
Cash, Beginning of Period
1,552
8,299
8,299
Cash, End of Period
$
Page 3 of 5
89
3,823
$
4,490
$
1,552
Windsor Utilities Commission
Financial Highlights
WUC- Q1 2015
(in 000's)
REVENUES
Total Revenues
Actual Q1
$
Non Revenue Water %
Miscellaneous Revenues
11,196
$
471
$
1,380
Customer Billing and Collection
Administration and General
$
water consumption has fallen by 6% with an extended winter. Commercial
water usage is 9% below budget with reductions being exhibited in MUSH
and electrical generation sectors. Fixed meter revenues are consistent to
budget.
-2% Water volumes are below forecasted levels as water usage from residential
and commercial customers are lower than planned averages.
45
132
662
% Variance
(49)
(268)
60
454
2,195
0
498
6,664 $
449
2,320
6
501
6,573 $
and ozonia diffusers for the plant that were originally planned for in 2014.
This variance is offset by favourable chemical usage.
-24% Unfavourable variance relates to distribution mains and services. The
severity of the winter weather caused frost levels to be the worst in history.
This caused for more challenging repairs. Watermain breaks were
consistent to budget while service breaks were 17 over budget.
19% Variance is a result of timing.
-23% Unfavourable variance resulting from increased volumes of postage.
19% Favourable variance from reduced consulting, training and professional
(9)
14%
(5)
126
6
3
(91)
-1%
5%
100%
1%
-1%
Positive (Negative)
Variance
Reasons for Variance
-4% Unfavourable variance as a result of expenses relating to increased utilities
9
(30)
126
68
Budget Q1
-4% March results on a cumulative basis have NRW unfavourable compared to
budget.
12% Favourability resulting from reduced repairs and maintenance than planned
for District Energy.
51
Positive (Negative)
Variance
1,113
36
Actual Q1
Net Operating Profit
Depreciation
$
-5% Water volumes pumped is 10,352 which is 2% below forecast. Residential
(189)
1,284
163
536
Vehicle Operations and Maintenance
$
420
Budget Q1
1,334
Community Relations
% Variance
(542)
18%
Actual Q1
Transmission and Distribution Maintenance
11,738 $
10,541
22%
EXPENSES
Cost of Water Production
Property and Tool Maintenance
Salaries and Benefits
Regulatory
Total Operating Expenses
$
10,352
Water Volumes Pumped (in ML)
Positive (Negative)
Variance
Budget Q1
% Variance
services related expenses when compared to budget. These are a result of
timing.
Unfavourable variance related to the reduced internal allocation of trucking
and is expected to be a timing difference.
Amounts consistent with budget.
Variance due to favourable headcount.
Variance is a result of timing.
Amounts consistent with budget.
5,003 $
2,177
5,585 $
2,280
(582)
103
-10%
5% Favourable variance is a result of the timing of capital expenditures being
2,177
55
2,317 $
2,280
2,836 $
103
(55)
(519)
5% Overall consistent with budget.
100% Disposal of assets not included in budget.
-18%
completed and placed into service.
Interest Expense
Loss (Gain) on Sale of PP&E
Net Income
$
90
Windsor Utilities Commission
Key Operational Metrics Summary
March 31, 2015
Cost Driver
Water Pumpage YTD
Watermain Breaks
Service Line Breaks
Non Revenue Water %
Capital Expenditures
Source Water Quality
Operational Areas Impacted
- water filtration expenses
- water pumping expenses
- chemical expenditures
- distribution main expenses
- service line expenses
- service line expenses
- water consumption revenues
- meter maintenance expenses
- distribution main and service
repair expenses
- operations and maintenance
- depreciation expense
- chemical expenditures
- water filtration expenses
Legend
Negative variance to budget
Positive variance to budget
Neutral impact to budget
Page 5 of 5
91
2015 YTD
Actual
2015 YTD
Budget
2014 YTD
Actual
10,352 ML
10,541 ML
11,152 ML
76
77
88
46
29
26
22%
18%
24%
$ 0.687 M
$ 7.074 M
$ 0.742 M
3.9 NTU (Avg 26.4 NTU (Avg
Per Month)
Per Month)
R
G
Y
4.2 NTU (Avg
Per Month)
92
93
94
95
96
97
98
99
100
101
AGENDA SUBMISSION
To:
WCU Audit & Finance Committee and Board of Directors
May 6, 2015
Re:
Dividend Payable
The 2015 Budget package included $5,000,000 in dividends to be declared in 2015.
Dividends will be declared quarterly subject to financial performance.
Based on the results for the first quarter in 2015, Management recommends a dividend be
declared payable to City of Windsor in the amount of $1,000,000.
The dividend policy states that the target dividend to the shareholder is between 25% and
55% of MIFRS net income. This recommendation is 33.99% of the target value.
RECOMMENDATION:
WCU Audit & Finance Committee
That the dividend payable report be received;
And that this Committee recommend to the Board that a $1,000,000 dividend be
declared to the City of Windsor, based on the 2015 Q1 financial results.
WCU Board of Directors
That a $1,000,000 dividend be declared to the City of Windsor, based on the 2015 Q1
financial results, as recommended by WCU Audit & Finance Committee.
Vice President and CFO
Encls
102
Windsor Canada Utilities Ltd.
2010 Actual Dividend
2009 - Q4
2010 - Q1
2010 - Q2
2010 - Q3
2010 - Q4
Total Dividend - 2010
2010 - Q4
2011 - Q1
2011 - Q2
2011 - Q3
2011 - Q4
2012 - Q1
2012 - Q2
2012 - Q3
2012 - Q4
2012 - Q4 Special
2013 - Q1
2013 - Q2
2013 - Q3
2013 - Q4
Dividends
Declared
in 000's
$
1,000
1,000
1,000
3,000
$
1,000
1,000
1,000
1,000
1,000
5,000
$
1,000
1,000
1,000
1,000
1,000
5,000
$
1,000
1,000
1,000
1,000
4,000
$
1,000
1,000
1,000
1,000
1,000
1,000
6,000
$
1,000
1,000
1,000
1,000
1,000
5,000
2013 - Q4 Special
2014 - Q1
2014 - Q2
2014 - Q3
2014 - Q4
2014 - Q4 Special
2014 - Q1
2015 - Q2 (budget)
2015 - Q3 (budget)
2015 - Q4 (budget)
2015 - Q4 Special (budget)
*Dividends are shown in the year paid and against the Quarter declared.
103
Windsor Canada Utilities Ltd.
Schedule of Available Dividends
Net
Income
Assumed
Dividends *
Dividends
Declared **
% of Net Income
Dividends
2010
12,227
6,100
4,000
32.71%
2011
10,888
5,400
4,000
36.74%
2012
15,886
7,900
5,000
31.47%
2013
14,943
7,500
5,000
33.46%
2014
12,586
6,300
5,000
39.73%
2015
2,942
1,500
1,000
33.99%
*Assumed dividends are at 50%. The dividend policy states that the target dividend to
the shareholder be between 25% and 55% of net income.
** Dividends declared are shown in the year to which they apply, not necessarily the year
in which it is recorded on the financial statements.
104
105
106
AGENDA SUBMISSION
To:
April 29, 2015
From: John Wladarski
Re:
Asset Management Report – Hydro Distribution
Status of Q1 - 2015 Capital Projects
The distribution hydro capital projects approved for 2015 have a budget total of $15,936,000
based on the soft spending revised budget and will be carried out by EWU forces and
qualified contracting firms. It is expected that we will overspend by approximately
$500,000.00 this fiscal year due to extra construction being required to support feeder
programs to eliminate radial feeds.
Generally described, project types and status (to March 31, 2015) are illustrated as follows:
System Sustainment
Overhead
• Distribution Conversion – 4 kV to 28 kV; the conversion of end of life lower
distribution voltage and elimination of the 4 kV sub-stations
 1 planned, 0 complete, Windsor Airport - HV130
• Pole Inspections - RFP written, reviewing alternatives for field data capture, ESRI
Inspector is long-term solution, reviewing other temporary solutions.
• 28 kV pole replacements
 Scattered and Single pole replacements – Internal Project as poles are
identified
 Cluster pole replacement projects planned
 26 planned, 5 completed, 2 in progress by EnWin Crews. 1 scheduled
with Valard Construction for June 2015
• Overhead transformer replacements – 10 planned for June 2015
Underground
• Submersible/Minipad transformer replacements -18 sites scheduled for June 2015
• Padmount transformer replacements – 6 sites scheduled for August 2015
• Automated Switching Unit replacements – 5 sites
• Switching Unit refurbishments – 4 sites
107
2
April 29, 2015
Stations
• Ford Annex – SCADA rectification required
• Replacement of NSD70 with NSD570 TT Equipment - discussions with Hydro One
have been initiated for their end of the work
• Walker TS Disconnect Switch Replacement – RFP ready for release, will also tender
Walker Feeder Tie Replacement work (originally planned for 2016) to be done in
conjunction with the 115kV disconnect work if possible; tendering as an EPC
contract.
• PLC/Relay EOL Equipment Replacement – Chrysler selected for equipment
replacement, parts are ordered and work planned to be completed during Chrysler
shutdown by EnWin and contractor forces.
System Automation
• 2015 SCADAmate Evolution – 10 planned, 2 complete, 2 in-progress, 2
commissioned
System Enhancement
Overhead
• 28 kV conductor upgrades – 1 in-progress (15M11 - Valard), 1 in-progress (15M10 –
EnWin). 15M10 - Valard (Cabana) scheduled for May 2015
• City Road Work – on hold, although Walker Road Phase 2 is tentatively scheduled to
start in the Fall of 2015
• Riverside Vista - Solidarity Towers to Dieppe rescheduled to September 2015;
Dieppe to Lauzon scheduled for 2016
• Overloaded transformer replacement – as required. No sites identified at this time
Underground
• Parkway Project – 97% complete. A 750mcm cable was constructed from Grand
Marais to Labelle once traffic is diverted off Huron Church Road and a berm is
constructed. Final connections are all that is required.
• A discussion related to the street lighting requirements within the PIC boundaries is
on-going
• 15M8 & 25M11 Cabling began March 30, 2015
• WFCU Backup Feeder Civil Work (Lepera) has been delayed pending the granting of
an easement on McHugh St.
Stations
• GM MTS Conversion to Distribution TS – Engineering work in-progress, construction
scheduled for the Fall of 2015
System Automation
• Feeder Tie – (2) Cousineau Road/Schelegel Village scheduled for June 2015 and
56M1-56M7 scheduled for August 2015
108
3
April 29, 2015
The following graphs depict the 2015 capital category spend status and balances as of
April 1, 2015.
Status of 2014 Preventive Maintenance Projects
Overhead
• Loadbreak Switch and Recloser Test Operation – Devices not previously
operated during the normal course of business in Q1 & Q2 will be test operated
in Q3 and Q4. Testing has been integrated into enhanced Control Room
• Area Tree Trimming – Area C1 is 95% complete; Area C2 is 35% complete
• Infra-red Scanning of Overhead Facilities – scanning scheduled to commence in
in Q2 and Q3
Underground
• Preventive maintenance programs typically undertaken in Q1 by Underground
resources are generally behind schedule due to continued demand for
Underground resources on significant RHHGP underground cable backbone and
sectionalizing unit installations along the Huron Church corridor
• Stray Voltage Detection – completed in February
• Switching Unit Dry Ice Cleaning – complete
• Underground Handhole Inspection – complete
• OEB Underground Equipment Inspections – commencement of inspection cycle
deferred to May to allow for completion of re-scheduled Parkway work
• Vault Maintenance – scheduled for November to leverage combined SAM/UG
crews to accomplish thermography and vault maintenance in a single visit
109
4
April 29, 2015
Stations
• Substation and MTS Site Inspections – completed monthly YTD.
• MTS Effluent Testing – completed Q1 testing and acceptable results received
• Walker T.S. – completed on schedule
• Ford Powerhouse Maintenance – scheduled for June 27
• Chrysler MTS Maintenance – in progress and scheduled for completion May 8
during shutdown
• Ford Annex Maintenance – scheduled for July 6
• GM MTS Maintenance – scheduled for August 10
• Infra-red Scanning of MTS Facilities – scheduled for summer
• Ground Rod Replacements – locates have been booked and awaiting results for
May scheduling of work
• Pole Inspection – 20% complete year to date
• All MTS roof replacements have been completed
System Automation
• Battery Maintenance – completed winter maintenance routine as per schedule.
• Recloser UPS Replacements – complete
System Performance
The system peak demand for Quarter 1, 2015 was 342.9 megawatts, down 5.6% from
this period in 2014. The all-time monthly peak for March occurred in 2002 at 468.1
megawatts. Factors such as weather and production cycles at major customers can
contribute to the difference of monthly peak from one year to the next.
110
5
April 29, 2015
Distribution System
During the First Quarter of 2015, ENWIN staff responded to and managed 142 power
interruptions, affecting 19,450 customers, which resulted in a total of 8,693 customer
outage hours.
The largest cause of outages were Foreign Interferences - trees,
animals & vehicles (4669 customer hours - 54%), Defective Equipment (2594 customer
hours – 30%), Scheduled Outages (1226 customer hours – 14%), Unknown/other (141
customer hours – 2%), and Human Element (63 customer hours – 1%).
The number of customer outages and customer hours are down 16% and 51.2%
respectively compared to the 3 year average, while the number of customers affected is
down 56.8% for the same time period.
111
112
AGENDA SUBMISSION
To:
May 7, 2015
Re:
Asset Management Hydro Update – Comparison of
Overhead to Underground Services
Comparison of Overhead to Underground Services
Many reasons have been given for burying power lines. These include reduced
maintenance, smaller rights of way, less susceptibility to weather damage, fewer traffic
accidents involving poles, improved aesthetics, and increased property values. The primary
reason against burying power lines has been the high cost. Underground lines cost more to
install than overhead lines. The design is more complex, the materials are more expensive,
and installation takes longer for underground lines. Moreover, installation can damage root
systems of nearby trees. Maintenance costs are higher for underground lines, and
specialized training is required. The cost of modification, expansion, or replacement is also
higher. Problems are harder to locate and repairs can take longer. Underground lines are
not impervious to damage; they are vulnerable to dig-ins and can sustain water damage.
Reliability
Underground systems are more reliable than overhead systems during normal weather
conditions. Based on historical data, utilities usually experience double interruptions per
mile of overhead lines compared to underground lines. However, a typical underground
outage takes approximately 60 percent more time to repair compared to an overhead
outage and may involve digging up a front yard, sidewalk, or street.
Underground electrical distribution systems are also naturally resistant to problems during
severe weather and therefore, provide more reliable service. However, flooding, objects
falling on surface-mounted equipment, and over-voltages caused by lightning can all cause
the loss of power during a storm. In addition, long term system outages such as those
associated with major storms, may allow moisture to seep in and this moisture can cause
113
EWU A&F Committee & Board of Directors
2
May 7, 2015
the cable to fail once the system is re-energized. Thus, while underground distribution lines
will reduce the number of outages experienced during normal weather and limit the damage
to the electrical distribution system from severe weather-related events, they are not
invulnerable.
Life Expectancy
A well-maintained overhead system has a life expectancy of more than 50 years, primarily
because individual components are easy to replace. The life expectancy of underground
cable installed today is thought to be greater than 30 years. However, other components of
the system such as surface-mounted equipment, may have less than 30 years of useful life.
Capital Costs
The cost to build underground distribution lines is typically four to six times the cost of
underground distribution lines. The costs of serving newly developed green field areas with
underground are substantially less than the cost of converting existing overhead areas to
underground. In addition, since such areas are planned, it is easier to predict future
electrical needs and minimize concerns with growth and changes. While costs vary with
environmental conditions, load density, system complexity, engineering design, and
materials used, the range is much smaller than for conversion projects.
Operation and Maintenance Costs
These costs include maintenance and repair, preventive maintenance, and service
restoration. Both types of systems require equipment inspection. In addition, overhead
systems require tree trimming, wildlife protection, and line patrolling, while underground
systems require cable locating. Tree trimming is one of the most costly activities for an
overhead system. Data from utilities show that the O&M costs per mile for an overhead
system and a direct-buried underground system are comparable. However, the annual
average O&M cost per mile of an urban underground system that requires installation in
duct bank is more than four times that of an overhead system.
Operational Impacts
An overhead distribution system is more flexible than an underground system. For example,
tapping an overhead line to serve additional load is a relatively easy and low-cost task. It
involves making an electrical connection to the line, running additional wire to the desired
transformer location, and installing a new transformer. Tapping an underground cable is
much more complicated, time consuming, and costly. The cable must be cut and spliced
somewhere along the loop, followed by the installation of complex rubber insulated elbow
connectors to tie into the transformer. The new cable must be buried as well.
Reconfiguration is a continual and fairly simple process with overhead distribution. As load
grows, portions of circuits are frequently “switched over” to adjacent circuits to help balance
the loads, therefore delaying the need for additional lines and substations. With
underground distribution, open points and terminations in the system are fixed, and it is
usually extremely difficult to alter the original arrangement. Similarly, since most “taps” or
114
115
116
117
AGENDA SUBMISSION
To:
April 29, 2015
Re:
Asset Management Report
WATER DISTRIBUTION AND PRODUCTION ASSETS
System Sustainment
Ozone System Optimization
The ozone optimization project is on schedule and within budget. The ozone unit and
power supply has been delivered and is awaiting final installation. Electrical work is
approximately 50% complete and is scheduled to be finished by May 11, 2015. The
mechanical contract has begun and is scheduled for completion by May 22, 2015. The
SCADA integration team has completed the control strategy and design. Over the next
several weeks the new program will be uploaded into the SCADA system in time to
complete the site acceptance testing. The engineering consultant continues to work
closely with the installation team to ensure that the project timing and budget are
adhered to. We are still fully expected to meet the May 2015 start-up.
Wastewater Sewer Connection
The pilot of transferring the A.H. Weeks wastewater effluent to the Lou Romano
Treatment plant is now complete. WUC has been granted approval to permanently
discharge its wastewater to the city sanitary sewers which translates into several
operational efficiencies and annual cost savings of $160,000, as well as reduced risk to
the organization. WUC will work with the City of Windsor to finalize the agreement in
2015. Additionally, the City of Windsor will be rehabilitating the sewer on Strabane to
ensure its continued reliability for the A.H. Weeks treatment plant and the neighbouring
community.
118
April 29, 2015
2
2015 Capital Projects
Emergency Generator Rebuild
WUC currently has four natural gas emergency generators utilized to operate the
Wyandotte campus in the event of a power loss. The Wyandotte Campus includes the
old treatment plant, A.H. Weeks filtration plant, A.J. Brian high/low lift pumping station
and George Avenue high lift pump station. In 2014 we evaluated each generator and
developed a four year rebuild plan. Generator #4 was successfully rebuilt in 2014 to the
original equipment manufacturers specification to ensure its reliability during
emergencies.
In February 2015, Generator #2 was also successfully rebuilt on schedule and within
budget. WUC will continue to invest in the rebuild of the two remaining generators in
budget years 2016 and 2017 to ensure reliable back up power and the continued
participation in the provincial DR3 (Demand Response) program.
Mirrlees Diesel Pump Replacement
This project will replace the two emergency Mirlees diesel high lift pumps at the A.J.
Brian facility (1920’s vintage) with an automated emergency diesel high lift pumping
system. This system is required in the event that there is a city/area power grid outage
combined with a failure of the on-site generator sets. This emergency pump system will
ensure that the water distribution system is supplied with water from the reservoir and is
the lifeline to ensure the provision of safe and reliable drinking water within the City of
Windsor and surrounding municipalities.
Currently we are sourcing suppliers and specifying equipment for this replacement. The
project is currently on track and within budget.
Replacement of SCADA Server Infrastructure
This project will replace the SCADA (System Control And Data Acquisition) servers
which are the backbone of the main controls system at the Water treatment and
pumping stations. These servers provide WUC with the ability to ensure compliance
with the Ministry of the Environment and Climate Change (MOECC) regulations and
provide safe and reliable drinking water to our customers. This system has also been
the foundation of all efficiency improvement projects which has resulted in WUC having
one of the lowest operating costs for a treatment and distribution system in Canada.
Currently the server hardware has been procured and is expected to be delivered in
May of 2015 with installation to commence shortly thereafter. The SCADA servers
should be fully integrated in the 3rd quarter of 2015. The project is on schedule and
within budget.
As of the end of Q1 2015, 979 meters have been replaced and/or newly installed. The
bulk of this work has been, and will continue to be, performed by a vendor under
contract for a two-year term ending in early 2017.
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April 29, 2015
3
Other Distribution asset replacements completed and/or in progress thus far in 2015 include
7 hydrants, 5 valves, and 14 services. Many of the service replacements resulted from the
extreme winter conditions experienced once again in our area this year.
Watermain Renewal Project Activity
In Progress
Pierre : Shepherd - Tecumseh
Victoria : Ellis to Jackson
restoration
Mainline
Committed (PO issued schedules being developed)
Church: Wyandotte – Caroline
Newbury: Dougall – Bruce
Edward: Wyandotte – Edgar
Caroline: Dougall – Jannette
Elm: Giles – Tecumseh
Erie: Wellington – Crawford
Fairview : St Rose to Edgar
McDougall : Logan to CPR
Q2 Start
Q2 Start
Q3 start
Q2 start
Q2 start
Q2 start
Q2 start
Q2 start
Planned (Tender/Approval phase)
Pillette: Seminole – Tecumseh
Wyandotte St. West : Ouellette to Caron
Riverside Vista PH2: Lauzon – Solidarity Towers
Apr 18
Apr 11
2016
The following tables illustrate the water main replacement project categories only and the
status as of March 31, 2015:
WUC Priority
Projects
3
0
1
0
0
4
Road Operations
Program
11
3
0
0
0
14
Sewer/Road
Program
5
5
0
0
4
14
Approved
Capital Budget
$
2,585,000
$
8,660,500
$
3,062,500
Value of Work
Committed
$
900,000
$
800,000
$
1,750,000
$
$
Variance
(as of Mar 31/15)
$
1,685,000
$
7,860,500
$
1,312,500
$
$10,858,000
Design Stage
Tendered
Under Construction
Construction Completed
Deferred to 2016
Total
WUC Priority Projects
Road Operations Program - City
Sewer/Road Program - City
Major Road Program - City
Total
14,308,000
120
3,450,000
Major Road
Program
0
0
0
0
0
0
April 29, 2015
4
Pressure Stations
Parkway Stations:
•
•
•
Northway – Awaiting electrical service installation. Commissioning of the station l
planned for Q2/Q3.
Howard – Hydro planning to install hydro supply infrastructure installation for end
of Q2, or early Q3. Station to be commissioned early Q3.
Cousineau – electrical service to be installed to station panel in Q2 and the
station commissioning planned for early Q3.
Windsor Stations:
•
•
•
•
•
Youngstown – civil contractor to install communication ducts and electrical
service. Station to be commissioned in Q2.
College & Brock – electrical contractor to hang panel and install electrical service.
Station to be commissioned in Q2.
Turner/Parkdale - electrical contractor to hang panel and install service. Station
to be commissioned Q2.
Jefferson – Issue with radio signal strength. Planned to have this resolved in Q2.
McHugh – Final radio connection to be tested by Q2 and station to be
commissioned at that time.
Pressure Station Improvements
•
9 Stations identified for pressure control improvement. Replacement of sensors
with higher resolution model. Improved radio sampling programming algorithm to
be completed in late Q3 or early Q4.
New Reservoir Project
Completed Tasks:
•
•
•
•
EA Study
Site survey
Site Geotechnical Report
Design Workshop with AECOM
Outstanding Tasks:
•
•
•
•
•
Site procurement/ lease
Prelim Design Phase 1 – Report Re: Reservoir and Piping layout
Prelim Design Phase 2 - Report for DB for new reservoir
RFP for Owner Rep
RFP for DB of New Reservoir
121
Q2 Completion
Q2 Completion
Q2 Completion
Q3 Completion
Q3 Completion
122
AGENDA SUBMISSION
To:
May 5, 2015
Re:
Comparison of Electricity Rates Summary
At the April meeting of the EWU Board, it was requested of Management to provide a
summary of residential monthly electricity costs based on 1,000 kWh’s consumption. The
following chart illustrates the monthly cost using EWU’s usual comparators within southwestern Ontario, and other rates from across Canada.
You will note that the chart contains both 2014 and 2015 totals. In particular, all totals (as
marked by an asterisk) indicated for jurisdictions outside of Ontario, are as of May 2015.
While it is recognized that it would be ideal to have May 2015 totals for all jurisdictions, in
this case the May 2015 totals for the Ontario LDCs would, in all likelihood, be higher than
shown and hence, a demonstration of a greater delta between Ontario and the rest of
Canada.
Lastly, the principle reason for using 2014 totals for the Ontario LDCs is due to incomplete or
future 2015 Cost of Service proceedings.
123
124
AGENDA SUBMISSION
To:
April 20, 2015
From:
Re:
John Wladarski
2014 Year in Review – Customer Service Departments
Implementation of Northstar CIS
The Customer Service Centre and Meter Reading Department implemented new processes
and procedures in relation to the installation of a new NorthStar Customer Information
System (CIS) on Feb. 18, 2014. As a result of changes in system functionality, extensive
training, documentation, and sandbox exercises were completed by all Customer Service
front-line and management staff in advance of the transition to NorthStar.
On-going resource reviews, recruitments, and realignments have been required in an effort
to successfully maintain all service levels which are mandated by the regulator. The
Customer Service Departments have been dedicated to identification and remediation of
system issues during this period of system stabilization and have done so while maintaining
and exceeding all regulated requirements.
Counter Payment Policy
As of February, 2014, Customer Service amended its front counter policy, in accordance
with regulatory requirements, to restrict payments at the counter to those in jeopardy of
disconnection of service. This was undertaken in an attempt to mitigate constantly
increasing costs associated to debit and credit card payments and in recognition of a
significant increase in the volume of walk-in traffic at the Ouellette office. Security
considerations regarding the acceptance of cash and the volume of bank deposits also
factored into this decision.
Prior notification was provided to customers who illustrated a pattern of paying in person at
the Ouellette office and promotion and education of alternative methods of payment was
instituted in advance of the change in policy.
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2
April 20, 2015
The change has resulted in a decrease of approximately 10,000 customer visits in 2014
when compared to customer visits in 2013. In addition, fees paid to the vendor of the credit
and debit card protocols have decreased by approximately $35,000 when compared to
previous year levels.
All of this was achieved with little to no negative feedback from customers, primarily due to
the efforts which took place in advance of the change.
Implementation of new Disconnection Warning Process
In July of 2014, the delivery of customer disconnection warnings was transitioned from a
manual field delivery methodology to an automated system driven notification with delivery
facilitated through Canada Post. This was largely due to a 75% reduction in Meter Reading
field staff which was experienced within a six week period.
The alternative method of delivery has proven to be very effective in that all impacted
customers are notified in a timely fashion and the delivery of the notice is not hampered by
the lack of availability of field staff to perform this function. In fact, the number of
disconnection warning notifications has increased by 30%, thereby reaching a greater
number of customers in a more timely fashion when their outstanding arrears are at a more
manageable level.
As a result of this change in procedure, Customer Service engaged the use of auto dialer
functionality beginning in November of 2014. Automated calls are made to customers in
jeopardy of disconnection 48 hours in advance of their potential disconnection date.
These measures have resulted in a more efficient and effective collections process with a
rate of customer payment in advance of disconnection topping out at 98% and only 2% of
eligible customers actually having their services disconnected.
Introduction of ENWINconnect (eBilling)
On April 17, 2014, the first customer registration for ENWINconnect took place.
ENWINconnect is an on-line 'My Account' type service which provides customers with the
ability to view their Time-of-Use Patterns; inquire as to their account balance; view their bills
on-line; and set up customer driven preferences which create alerts to the customer when
usage or financial thresholds have been violated.
As of September 30, 2014,
ENWINconnect also became the sole option for customers who choose to receive their bills
electronically, as EnWin ended its contract for the Canada Post 'epost' offering.
There are currently 7,064 customers enrolled in ENWINconnect and 3,332 customers
enrolled in EnWin's eBilling program. It is a primary focus of the Customer Service Centre to
promote and incent adoption into these programs throughout the calendar year in 2015.
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3
April 20, 2015
Regulatory
Low Income Assistance Program (LEAP) - In 2014, 162 households were provided financial
assistance through the LEAP Program for a total of $49,665 (Average of $306 per
household).
Rates - input, development, testing and CSR training were carried out for all EnWin
distribution rates effective May 1st and November 1st, plus all water and waste water rates for
January 1, 2015
Water Rate Assistance Program (WRAP) - In 2014, 205 households were provided financial
assistance for the payment of water arrears amounting to $21,825. The Sewer Assistance
program provided financial relief for 153 households in the amount of $37,500.
2014 Customer Service Centre Metrics
General Service Queue
General Queue (calls presented)
General Queue (calls answered)
Lost Call Percentage
Calls answered within 30 seconds
2014
2013
135,391
133,185
1.63%
86.76%
117,925
114,763
2.68%
84.45%
Variance
%
15%
16%
-1%
2%
For the general call centre queue, 2014 call distribution has become more level throughout
the day, mid-day between 10:00 a.m. and 2:00 p.m. still presents higher call volumes.
8 a.m. to 9 a.m.
9 a.m. to 10 a.m.
10 a.m. to 11 p.m.
11 a.m. to 12 p.m.
12 p.m. to 1 p.m.
1 p.m. to 2 p.m.
2 p.m. to 3 p.m.
3 p.m. to 4 p.m.
4 p.m. to 5 p.m.
TOTAL
Monday
Tuesday
Wednesday
Thursday
Friday
TOTAL
2014
# of calls
10,936
15,020
16,001
16,887
16,759
16,071
15,541
15,892
12,240
135,347
2013
# of calls
9,389
13,511
14,379
14,928
14,521
14,322
13,439
13,257
10,149
117,895
Variance
%
16.48%
11.17%
11.28%
13.12%
15.41%
12.21%
15.64%
19.88%
20.60%
14.80%
2014
# of calls
30,556
27,228
24,851
26,822
25,924
2013
# of calls
25,933
24,791
22,646
22,164
22,381
Variance
%
17.83%
9.83%
9.74%
21.02%
15.83%
135,381
117,915
14.81%
127
4
Water Service Queue
Water Queue (calls presented)
Water Queue (calls answered)
Lost Call Percentage
Calls answered within 30 seconds
April 20, 2015
2014
2013
18,245
17,240
5.50%
79.17%
16,185
14,683
9.30%
71.22%
Variance
%
12.73%
17.41%
-3.80%
7.95%
As a result of the calls, e-mails, and faxes which are presented to the water service queue
representatives, 4,404 service requests were issued for follow-up by EWU water personnel.
The top three categories of water service requests are as follows:
Water Showing
Curb box
Follow-Ups
Water Quality
2014
2013
16.80%
31.68%
17.44%
8.11%
10.77%
15.96%
9.11%
6.13%
Variance
%
6.03%
15.72%
8.33%
1.98%
Water queue calls tend to peak between 9 a.m. and noon, with Mondays through
Wednesdays exhibiting higher call distribution, while decreasing slightly through Thursdays
and Fridays.
E-Mail Inquiries
In addition to the main queue calls, Customer Service Representatives were presented with
5,738 e-mail inquiries.
In 2014, there were 2,400 move in/move out request emails, representing 41.8% of total
email requests.
Counter Visits
There were in excess of 16,000 visits by customers to the ENWIN Customer Service
counter(s) at Ouellette Ave., which represents a decrease of over 10,000 counter visits from
2013. Factors contributing to this include the deferrence of credit disconnections due to
extreme weather in January and February 2014 and the blackout period for the NorthStar
installation which precluded the completion of field work of this type during the conversion
period. Typically, visits at the counter are driven by the potential of a credit disconnection of
service.
In addition, payments at the counter are now limited to those in immediate threat of
disconnection or those who experienced service disconnection. This policy came into effect
February 10, 2014 and therefore reduced counter visits for the remainder of the year.
On average, there were 1,300 visits to the Ouellette Ave. lobby per month. Customers
making payments toward their accounts continue to represent the overwhelming majority
(89%) of these visits.
128
Payments:
Current Bill
White Notice
Orange Card
After Cut (Red Card)
AMP Good Faith
Total
5
April 20, 2015
2014
1,536
10.60%
2,154
14.87%
10,200
70.40%
353
2.44%
246
1.70%
2013
7,274
29.38%
5,562
22.47%
10,549
42.61%
508
2.05%
862
3.48%
Variance
-5,738
-78.88%
-3,408
-61.27%
-349
-3.31%
-155
-30.51%
-616
-71.46%
14,489
24,755
-10,266
100%
100%
-41.47%
Credit Notices
A total of 122,923 automated credit notices were sent to EnWin customers in 2014.
NOTE: This total does not include the 3-day warning notices (orange cards) which were
hand-delivered to customer premises by CFR's from January through June 2014.
Effective July 1, 2014, EnWin ceased to deliver disconnect warning notices (orange cards)
using EWU staff and transitioned to delivery of orange disconnection warning letters through
traditional Canada Post delivery methods.
For purposes of regulatory compliance, a 48 hour warning call is now made to customers in
advance of disconnection and those calls are facilitated through use of an in-house
automated outbound dialer.
2014
2013
Variance
Variance
%
Past due debt notices to small commercial
customers
10,787
6,077
4,710
43.66%
Friendly reminder notices to customers with
good credit ratings **
3,871
31,973
(28,102)
-725.96%
108,265
64,573
43,692
40.36%
4,667
3,983
684
14.66%
20,984
16.45%
Past due residential notices (over $100
in arrears one week after due)
Reminder notices for final bills
Total
127,590 106,606
* The use of friendly reminder notices was discontinued with the implementation of Northstar
in February 2014.
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6
April 20, 2015
Bankruptcies
In 2014, the Call Centre processed 63 bankruptcies. The breakdown of those bankruptcies
is as follows:
58
2014
Total
$'s
27,790
Average
$
479.14
5
-
-
0
-
-
63
27,790
Totals
Residential
Small
Commercial
Large
Commercial
Total
Totals
117
*
2013
Total Average
$'s
$
35,070
300
Variance
Total
Average
$'s
$
(7,280)
179
9
764
85
(764)
(85)
8
20,484
3,414
(20,484)
(3,414)
134
56,319
(28,529)
* 2013 - 2 of the 8 Large Commercial had $0.00 claimed and received a refund from deposit
2014 Cashiering Metrics
Statistical tracking of payments by source maintained by the Customer Service Centre
indicates that approximately 1,050,226 payments were made on EnWin bills in 2014.
The sources (and proportion) of payments are as follows:
Source of Payment
Daily bank electronic file payments (1)
Automatic Payment Plan(2)
Mail (3)
Cash (4)
Drop box
(5)
Electronic
(6)
Paymentus
Total
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(7)
2014
66%
2013
62%
Variance
27%
27%
0%
3%
6%
-3%
2%
3%
-1%
1%
1%
0%
1%
1%
0%
0.33%
100%
0.34%
100%
-0.01%
0%
4%
Internet payments; telephone payments; ATM payments; teller payments
Customers provide bank account – automated withdrawal from account
All payments kept and processed in house
Payments received at Ouellette Ave. office at front counter
Customers who deposit payments in lobby drop box during regular hours/night drop
EFTs and tel-pay/money mart
On-line credit card option with convenience fee model
130
131
132
133
134
135
136
AGENDA SUBMISSION
To:
EWU Audit &Finance Committee and Board of Directors
WCU Audit & Finance Committee and Board of Directors
May 4, 2015
From:
Re:
John Stuart & Victoria Zuber
Project EnSight
Over the course of the past five years, EnWin dramatically changed its behind-the-scenes
methods by which it carries out back-office work. Considerable resourcing effort, in terms of
capital expenditures and employee engagement, culminated in adopting SAP as our
enterprise resource planning (ERP) tool, Northstar as the basis for our customer information
system (CIS) and ESRI upon which our graphical information system (GIS) has been built.
While these platforms have done much to bring together disparate parts of the organization,
we are now at a stage in our systems evolution where we can address areas of concern that
were put in abeyance until the core systems were well established.
The EnSight project was launched in January of this year. EnSight captures four related
streams of activity in support of significantly improved electric and water network
representation and visibility, as well as outage response solutions necessary to support the
lean workforce of the future. This is an 18 month project that leverages the support of
vendor consultants to augment our own internal subject matter experts in order to deliver a
variety of immediate and long term benefits. The details that follow serve to better develop
these four amalgamated project streams which include an outage management system
(OMS), evolution of the GIS system, elimination of the Motorola system, as well as
integration of our work flow processes within and amongst the three core business systems
(SAP, Northstar and GIS).
Upon our initial review of these projects, it became readily apparent that there were
efficiencies to be gained by combining and managing these four streams into one project.
Project EnSight utilizes our past experiences in managing technical projects, utilizing our
PMO to track deliverables, costs and resource requirements to ensure that these projects
are delivered on-time and on-budget. While we are now managing these four streams as
one complete project, when first developed the budgets that supported these initiatives were
137
EWU Audit & Finance Committee and Board
WCU Audit & Finance Committee and Board
WUC Board
2
May 4, 2015
contained within differing departmental budgets as presented in our 2015 budget
documents. In keeping with our goal of transparency, we have parsed out the monies
attributed in the different budgets and will report on a consolidated budget on a go-forward
basis. The budget highlights and timelines for this initiative are attached hereto in tabular
form.
Outage Management System (OMS)
A new state of the art platform based on the industry standard ESRI Responder product will
be implemented in the 4th quarter of this year. This solution replaces the no longer supported
Maximo outage system that was internally developed in 2003 and will implement real time
links to the Smart Meter network established in 2010. The improved visibility and
management of network outages will allow intelligent triaging of events and rapid dispatch of
field staff to the specific network element requiring repair. The new tools and associated
business process improvements allows operations to maintain our high service levels with a
leaner workforce as well as better communicate outage information to our customers,
emergency services and other Stakeholders.
While not part of this initial project, it is our intent to leverage the OMS to assist with our
water operations division, specifically as it pertains to watermain breaks and any potential
adverse water quality incidents.
GIS Evolution
The implementation of the base GIS (Graphical Information System) for Hydro and Water in
2014 has enabled a variety of business improvement applications including the OMS stream
above. In 2015, applications on this platform will be developed that allow field staff to
accomplish work with map-based mobile tablets for improved accuracy, paper elimination,
process simplification and overall efficiency. These include field asset inspection, real time
valve isolation tracing for water main repair, field “red line” updates of as built configurations
and GPS locates as well as data bridges between GIS and industry standard 2D AutoCAD
construction drawings. The GIS cornerstone platform for Operations will continue to evolve
beyond the current planning horizon to extend efficiency and data accuracy solutions for
System Planning through Engineering, Construction and Maintenance in support of our high
standards of service with lower back office overhead.
Motorola Replacement
Implementation of Responder as well as maturing of the SAP and CIS systems has created
the opportunity to eliminate EnWin’s dependency on this shared customer trouble
management system with the City. Moving this solution onto our cornerstone platforms will
reduce costs by ~$200,000 annually associated with a 3 year contract renewal due at the
end of 2015. Trouble calls such as flickering lights, water showing, wires down and
streetlight issues will now be logged and reported in the appropriate system. This phase will
be completed by year-end in order to avoid the contract renewal in 2016.
138
WUC Board
3
May 4, 2015
Systems Integration across Key Enterprise Platforms
As previously noted, the cornerstone systems are now in place for the foreseeable future:
SAP for financial management, NorthStar for customer information and billing and GIS for
both asset infrastructure management and connectivity. In many scenarios, data is often
entered into multiple systems, which is not only counter-productive, but can create data
integrity gaps associated with normal human error. Integration of shared master data
elements across these systems will eliminate data entry duplication and errors while
facilitating new operational efficiency applications on each platform.
Recommendation:
That the Project EnSight report dated May 4, 2015 be received.
_________________________________
Vice President, Operations
________________________________
Vice President of Finance and Chief Financial Officer
139
WUC Board
4
May 4, 2015
EnSight Draft Budget and 2015-2020 Operating Plan Impacts
Draft Budget by Spend Type ($000)
Internal External Labour Services Software Hardware
Total
Outage Management
Motorola Elimination
GIS Evolution
System Integration
$1,515
$680
$1,153
$1,870
$432
$228
$275
$575
$669
$453
$621
$1,295
$268
$0
$90
$0
$125
$0
$166
$0
$20
$0
$0
$0
$5,217
$1,510
$3,038
$358
$291
$20
Contingency (12%)
Project Total
Misc
$626
$5,843
Draft Budget by Year ($000)
Outage Management
Motorola Elimination
GIS Evolution
System Integration
Contingency (12%)
Project Total
Total
2015
2016
$1,515
$680
$1,153
$1,870
$1,390
$258
$890
$150
$125
$423
$263
$1,720
$5,217
$2,687
$2,530
$626
$321
$305
$5,843
$3,008
$2,835
Draft Operating Plan Impact ($000)
2015
2015
Revised
2016
2016
Revised
2017
Hydro Capital
$19,421 $17,493 $14,917 $12,862 $34,488
Customer Contributed Capital ($3,485) ($3,485) ($1,019) ($1,019) ($18,240)
Property & Equipment Capital
$951
$951
$919
$919
$973
Information Technology Capital
$2,241
$1,161
$1,966
$1,186
$2,066
EnSight
$3,008
$2,835
$19,128
140
$19,128
$16,783
$16,783
$19,287
WUC Board
5
May 4, 2015
EnSight Project Interdependencies
Motorola
Sensus
RNI 3.1
SCADA
Hydro Calls
Water Calls
MeterSense
SAP
Internal
Outage Map
Responder
OMS
External Outage Map
CIS
Northstar
GIS
Storm
Procedures
Change Mgmt
Procedures
Training
Documentation
GIS Evolution
141
OMS
GIS Evolution
Motorola Replacement
System Integration
WUC Board
6
EnSight Project Timeline
142
May 4, 2015
AGENDA SUBMISSION
To:
WUC Governance Committee and Board of Commissioners
EWU Governance Committee and Board of Directors
May 4, 2015
From: John Stuart and Andrew J. Sasso
Re:
Safe Drinking Water Act Board Training Report
Walkerton Tragedy
In 2000, the contaminated water tragedy in the Town of Walkerton adversely affected 5,000
people, made 2,500 people seriously ill, and ultimately killed 5 people.
The Walkerton Commission, led by Justice Dennis O’Connor, Associate Chief Justice of
Ontario, identified a number of deficiencies not only in Walkerton but also in the oversight of
Ontario water systems in general. One identified need was better oversight by water system
owners and water system operators.
Safe Drinking Water Act – Standard of Care
In 2002, the Province of Ontario promulgated the Safe Drinking Water Act. That year and in
the decade that followed, the Government issued numerous regulations to prevent future
severe illnesses and fatalities. Within the framework was an explicit statutory recognition of
the standard of care expected of board members and officers of corporations that own or
operate water systems.
143
WUC Governance Committee and Board
EWU Governance Committee and Board
2
May 4, 2015
Training Course
Recognizing the seriousness of the issue, the Ministry of the Environment (“MoE”) and the
Walkerton Clean Water Centre (“WCWC”) developed a course to put those with oversight
responsibilities in a better position. While board members typically have a general
knowledge of the duty of care, this half-day course provides attendees with the tools to
discharge that duty in the context of overseeing a water system in Ontario.
In particular, the course addresses:
∑ Understanding your oversight responsibilities
∑ Legal responsibilities and due diligence
∑ Multi-barrier approach to drinking water safety
∑ Risk management and risk assessment
∑ Changes to providing safe water
∑ Pathogenic organisms: the greatest tangible risk
∑ Case studies of waterborne disease outbreaks
∑ Achieving a culture of prevention and eliminating complacency
∑ Additional resources and specialized training will also be discussed
Implications of the Course
The creation of the MoE/WCWC board training course was a positive development from a
water system user protection perspective. However, it also effectively created a de facto
requirement that board members take the course. Think of it this way: If there was a tragedy
in a water system and a board member had not taken the course that the Government and
its expert agency created to prevent tragedies, the board member could have a difficult time
demonstrating that they discharged their duty of care to oversee the water system
Ownership of Water Systems in Ontario
In many of Ontario’s municipalities, water system ownership and/or operation lies with the
municipality. In some cases, this is typically because the water utility function was originally
set-up as a municipal department. In other cases, when the electricity portion of the local
public utility commission was split from the water portion, the municipality chose to absorb
the water portion into a municipal department.
The preponderance of municipal ownership and operation of water systems has at times
created some confusion about the respective roles of the City of Windsor, WUC, and EnWin.
At one point, the City of Windsor even arranged training for councillors and staff because
that seemed to be the best practice in Ontario. There has also been confusion and
144
3
May 4, 2015
uncertainty at WUC and EnWin on this point and from time-to-time, the City has been
approached as though it were the water system owner.
Water System Ownership and Operations in Windsor
In Windsor, the water system owner is the Windsor Utilities Commission and the water
system operator is EnWin Utilities Ltd. WUC’s ownership of the water system is rooted in
and dates back to its founding legislation, the City of Windsor Act, 1935. EnWin’s role as
water system operator is based on the terms of the Water System Operating Agreement
(“WSOA”), which came into effect in November 2012.
Fortunately, this issue was clarified and resolved definitively during the process of preparing
and entering into the single utility refinancing and WSOA. Not surprisingly, the banks,
debentureholders (e.g. major Canadian lending institutions), and law firms insisted on
absolute certainty regarding this point before committing to the $103 million deal. The
Commissioners, Directors, and Officers of WUC, WCU, and EWU all had to sign-off on the
veracity of water system ownership and operations. It was a very practical motivator to
invest the time, effort, and expense into reaching the conclusive answer.
Following extensive research and analysis by Andrew Roman, a senior lawyer at Miller
Thomson LLP with a strong background in corporate, municipal, and regulatory law, formed
the opinion that WUC is the owner of the water system in Windsor and that it has the
authority to contract out the operation of the water system to EnWin Utilities.
The legal opinion of Miller Thomson LLP acknowledges and agrees that the City of Windsor
has the authority set out in the City of Windsor Act, 1935 and the City of Windsor Act, 1936
to exercise control over WUC by appointing its board of commissioners. The firm also
confirmed that the City has the authority through the Municipal Act to transfer ownership of
the water system to the City and disband WUC. Thus, the City of Windsor could own the
water system, but does not and will not own the water system until it exercises that option.
Duty of Care over Water System in Windsor
Accordingly, the statutory duties of care in relation to water systems that are set out in the
Act apply to WUC and EnWin, but do not apply to the City of Windsor. This has the side
benefit of providing the City of Windsor with a liability shield. It also liberates members of
City Council and City Administration from having to discharge the statutory duty. This is not
a comment on whether City has other duties of care (such as in making appointments to the
boards of the local utilities), but it does mean the City does not need to take the
MOE/WCWC board training course.
Rather, the WUC Board, EWU Board, and EnWin Management must discharge the
statutory duty of care set out in the Act. To facilitate that performance, it is recommended to
145
4
May 4, 2015
take the MOE/WCWC board training course, regardless of whether it is for the first time or
as a refresher.
RECOMMENDATION:
That the Safe Drinking Water Act Board Training Report be received;
And that EWU Management schedule a MOE/WCWC Training Course for the members of
the WUC and EWU Boards and EnWin Management.
_____________________________
Vice President, Operations
Director, Regulatory Affairs &
Corporate Secretary
146
EWU Board of Directors Meeting - Administrative Business
ENWIN GROUP OF COMPANIES
SCHEDULE OF MEETINGS - 2015
S
5
12
19
26
JANUARY 2015
T
W
TH F
S
1
2
3
6
7
8
9 10
13
14 15 16 17
20
21 22 23 24
27
28 29 30 31
2
9
16
23
30
MARCH 2015
T
W
TH F
S
3
4
5
6
7
10
11 12 13 14
17
18 19 20 21
24
25 26 27 28
31
M
4
11
18
25
S
M
1
8
15
22
29
S
M
3
10
17
24
31
S
T
4
11
18
25
M
5
12
19
26
S
M
6
13
20
27
S
M
1
8
15
22
29
5
12
19
26
T
6
13
20
27
MAY 2015
W
TH
6
13
20
27
7
14
21
28
F
S
1
8
15
22
29
S
M
1
8
15
22
S
M
5
12
19
26
S
2
9
16
23
30
JULY 2015
W
TH F
S
1
2
3
4
7
8
9 10 11
14
15 16 17 18
21
22 23 24 25
28
29 30 31
SEPTEMBER 2015
T
W
TH F
S
1
2
3
4
5
7
8
9 10 11 12
14
15
16 17 18 19
21
22
23 24 25 26
28
29
30
NOVEMBER 2015
T
W
TH F
S
2
3
4
5
6
7
9
10
11 12 13 14
16
17
18 19 20 21
23
24
25 26 27 28
30
FEBRUARY 2015
T
W
TH F
2
3
4
5
9
10
11 12
16
17
18 19
23
24
25 26
T
6
13
20
27
M
S
T
2
9
16
23
30
S
3
10
17
24
31
M
4
11
18
25
S
M
6
13
20
27
JUNE 2015
W
TH F
S
2
3
4
5
6
9
10 11 12 13
16
17 18 19 20
23
24 25 26 27
30
AUGUST 2015
T
W
TH F
M
7
14
21
28
APRIL 2015
W
TH F
S
1
2
3
4
7
8
9 10 11
14
15 16 17 18
21
22 23 24 25
28
29 30
1
8
15
22
29
7
14
21
28
S
6
13
20
27
4
11
18
25
5
12
19
26
6
13
20
27
S
1
8
15
22
29
7
14
21
28
OCTOBER 2015
T
W
TH F
S
1
2
3
5
6
7
8
9 10
12
13
14 15 16 17
19
20
21 22 23 24
26
27
28 29 30 31
DECEMBER 2015
T
W
TH F
1
2
3
7
8
9 10
14
15
16 17
21
22
23 #
28
29
30 #
S
4
11
18
25
Statutory Declared Holiday
School Holidays
SPECIAL PURPOSE MEETINGS (MARCH)
WCU & EWU Boards of Directors - Joint Meeting & Orientation Session @ 9:00am
EWE Boards of Directors - Meeting & Orientation Session @ 10:30am
MONDAY MEETINGS
EWE Board of Directors @ 9:00am
TUESDAY MEETINGS
WCU & EWU Audit & Finance Committees - Joint Meeting @ 9:00am
WCU & EWU Board of Directors - Joint Meeting @ 9:00am
EWU Board of Directors @ 9:00am
THURSDAY MEETINGS
EWU Governance & Human Resources Committee @ 10:30am
WCU Board of Directors @ 10:30am
ALL MEETINGS HELD AT 787 OUELLETTE IN THE SECOND FLOOR BOARDROOM
147
5
12
19
26
S
5
12
19
26
JANUARY 2015
T
W
TH F
S
1
2
3
6
7
8
9 10
13
14
15
16 17
20
21
22
23 24
27
28
29
30 31
2
9
16
23
30
MARCH 2015
T
W
TH F
S
3
4
5
6
7
10
11
12
13 14
17
18
19
20 21
24
25
26
27 28
31
M
4
11
18
25
S
M
1
8
15
22
29
S
M
3
10
17
24
31
S
T
4
11
18
25
M
5
12
19
26
S
M
6
13
20
27
S
M
1
8
15
22
29
5
12
19
26
T
6
13
20
27
MAY 2015
W
TH
6
13
20
27
7
14
21
28
F
S
1
8
15
22
29
S
M
1
8
15
22
S
M
5
12
19
26
S
2
9
16
23
30
JULY 2015
W
TH F
S
1
2
3
4
7
8
9
10 11
14
15
16
17 18
21
22
23
24 25
28
29
30
31
SEPTEMBER 2015
T
W
TH F
S
1
2
3
4
5
7
8
9
10
11 12
14
15
16
17
18 19
21
22
23
24
25 26
28
29
30
NOVEMBER 2015
T
W
TH F
S
2
3
4
5
6
7
9
10
11
12
13 14
16
17
18
19
20 21
23
24
25
26
27 28
30
FEBRUARY 2015
T
W
TH F
2
3
4
5
9
10
11 12
16
17
18 19
23
24
25 26
T
6
13
20
27
M
1
8
15
22
29
7
14
21
28
S
T
S
3
10
17
24
31
M
4
11
18
25
S
5
12
19
26
M
6
13
20
27
JUNE 2015
W
TH F
S
2
3
4
5
6
9
10 11 12 13
16
17 18 19 20
23
24 25 26 27
30
4
11
18
25
5
12
19
26
6
13
20
27
S
1
8
15
22
29
7
14
21
28
OCTOBER 2015
T
W
TH F
S
1
2
3
6
7
8
9 10
13
14 15 16 17
20
21 22 23 24
27
28 29 30 31
DECEMBER 2015
T
W
TH F
1
2
3
7
8
9 10
14
15
16 17
21
22
23 #
28
29
30 #
Statutory Declared Holiday - Windsor City Hall Closed
School Holidays ~ March 16-20, 2015
SPECIAL PURPOSE MEETING (MARCH)
WUC Board of Commissioners Meeting & Orientation Session @ 9:00am
TUESDAY MEETINGS
WUC Governance Committee @ 10:30am
THURSDAY MEETINGS
WUC Audit & Finance Committee @ 9:00am
WUC Board of Commissioners @ 9:00am
ALL MEETINGS HELD AT 787 OUELLETTE IN THE SECOND FLOOR BOARDROOM
148
7
14
21
28
APRIL 2015
W
TH F
S
1
2
3
4
7
8
9 10 11
14
15 16 17 18
21
22 23 24 25
28
29 30
AUGUST 2015
T
W
TH F
M
2
9
16
23
30
S
6
13
20
27
S
4
11
18
25
5
12
19
26
CITY OF WINDSOR
S
5
12
19
26
JANUARY 2015
T
W
TH F
S
1
2
3
6
7
8
9 10
13
14
15
16 17
20
21
22
23 24
27
28
29
30 31
2
9
16
23
30
MARCH 2015
T
W
TH F
S
3
4
5
6
7
10
11
12
13 14
17
18
19
20 21
24
25
26
27 28
31
M
4
11
18
25
S
M
1
8
15
22
29
S
M
3
10
17
24
31
S
T
4
11
18
25
M
5
12
19
26
S
M
6
13
20
27
S
M
1
8
15
22
29
5
12
19
26
T
6
13
20
27
MAY 2015
W
TH
6
13
20
27
7
14
21
28
F
S
1
8
15
22
29
S
M
1
8
15
22
S
M
5
12
19
26
S
2
9
16
23
30
JULY 2015
W
TH F
S
1
2
3
4
7
8
9
10 11
14
15
16
17 18
21
22
23
24 25
28
29
30
31
SEPTEMBER 2015
T
W
TH F
S
1
2
3
4
5
7
8
9
10
11 12
14
15
16
17
18 19
21
22
23
24
25 26
28
29
30
NOVEMBER 2015
T
W
TH F
S
2
3
4
5
6
7
9
10
11
12
13 14
16
17
18
19
20 21
23
24
25
26
27 28
30
FEBRUARY 2015
T
W
TH F
2
3
4
5
9 10
11 12
16 17
18 19
23 24
25 26
T
6
13
20
27
M
1
8
15
22
29
7
14
21
28
S
T
S
3
10
17
24
31
M
4
11
18
25
S
M
6
13
20
27
7
14
21
28
APRIL 2015
W
TH F
S
1
2
3
4
7
8
9 10 11
14
15 16 17 18
21
22 23 24 25
28
29 30
JUNE 2015
W
TH F
S
2
3
4
5
6
9
10 11 12 13
16
17 18 19 20
23
24 25 26 27
30
AUGUST 2015
T
W
TH F
M
2
9
16
23
30
S
6
13
20
27
4
11
18
25
5
12
19
26
6
13
20
27
OCTOBER 2015
T
W
TH F
1
5
6
7
8
12 13
14 15
19 20
21 22
26 27
28 29
DECEMBER 2015
T
W
TH F
1
2
3
7
8
9 10
14 15
16 17
21 22
23 24
28 29
30 31
S
1
8
15
22
29
7
14
21
28
S
2
9
16
23
30
3
10
17
24
31
S
4
11
18
25
5
12
19
26
Statutory Declared Holiday - Windsor City Hall Closed
School Holidays ~ March 16-20, 2015
Regular City Council Meeting (6:00 p.m. Council Chambers, Windsor City Hall)
AMO Conference ~ August 16-19, 2015, Niagara Falls ON
FCM Conference ~ June 5-8, 2015, Edmonton AB
Detroit Windsor Fireworks ~ June 22, 2015
STANDING COMMITTEES
Executive Committee 6:00 p.m.
Planning & Economic Development Standing Committee (5 members of Council + 3 citizens) 4:30 p.m.
Social Development, Health & Culture Standing Committee (5 members of Council) 9:00 a.m.
Environment, Transportation & Public Safety Standing Committee (5 members of Council) 4:30 p.m.
CR265/2014
November 17, 2014
149

ENWIN UTILITIES LTD. BOARD OF DIRECTORS MEETING

Transcription

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