2011 sustainability report

COMMITTED TO POWERING COMMUNITY WELL-BEING

2011 SuStainability RepoRt

Guelph Hydro Inc.* is a holding company, 100 per cent owned by

Guelph Municipal Holdings Inc. which is, in turn, 100 per cent owned

by the City of Guelph.

The organization consists of two subsidiary operating companies:

• GuelphHydroElectricSystemsInc.,aregulatedelectricitydistributioncompanythatdeliverselectricitysafelyandreliablytomorethan50,000homesandbusinessesintheCityofGuelphandtheVillageofRockwood,Ontario.GuelphHydroElectricSystemsInc.providesessentialinfrastructureforthecommunitiesservedtogrowandprosperandpromotesenergyconservationtocustomers.

• EnvidaCommunityEnergyInc.(formerlyEcotricityGuelphInc.),anon-regulatedrenewableandalternativeenergycompanythatgenerateselectricityfromlandfillgasattheCityofGuelph’sEastviewLandfillsiteandoperatesa100-kilowattsolarfacilityontheGuelphHydroheadoffice.Envidaistheprimaryimplementerandkeydeveloperofhigh-efficiency,low-carbon,energyprojectsthatwillassisttheCityofGuelphinachievingtargetssetoutintheGuelphCommunityEnergyInitiativeandfacilitatingeconomicdevelopmentinthecommunity.

STraTeGIC IMperaTIveSGuelph Hydro’s key strategic imperatives are aligned with the

objectives of both our Shareholder, Guelph Municipal Holdings Inc.,

and the City of Guelph, and uphold the public trust invested in

the company as the owner and operator of a local electricity

distribution company. These imperatives provide direction for

our day-to-day activities and are as follows:

1. Deliverbalancedfinancialandsocietalreturnsbyinvestinginqualityenergyproductionanddistributioninfrastructure.

2. BealeaderintheprovisionandimplementationofanenergyconservationandsustainableenergyculturetoourcustomersandemployeesthatisconsistentwiththeenergyinitiativesofourShareholderandProvince.

3. Bealeaderinefficient,safe,reliableandeconomicdistributionofenergy.

4.Beagreatplacetoworkandcommunicatethisfactinordertoattractandretainemployeestomeetfuturebusinesschallenges.

5. EnsureweenhanceourpositionasanassettoourShareholderandthecommunitiesweservebyengagingallstakeholdersinourkeyinitiativesandobjectives.

Corporate profile

*Throughoutthisdocument,theuseofthenameGuelph

Hydroreferstotheholdingcompany,GuelphHydro

Inc.,whichincorporatestwosubsidiarycompanies:a

regulatedutility,GuelphHydroElectricSystemsInc.,and

anon-regulatedcompany,EnvidaCommunityEnergy

Inc.(formerlyEcotricityGuelphInc.).ThenameGuelph

HydroElectricSystemsInc.iswrittenoutinfullwhen

referringspecificallytotheregulatedutility.

CITY OF GUELPH

GUELPH MUNICIPAL HOLDINGS INC.

GUELPH HYDRO INC.Non-Regulated

Holding Company

GUELPH HYDRO ELECTRIC SYSTEMS INC.Regulated Company

ENVIDA COMMUNITY ENERGY INC.Non-Regulated Company

A MessAge to our stAkeholders 2

2011 AchieveMents 3

AwArds 5

2011 FAst FActs 7

vision, Mission And vAlues 8

our ApproAch to sustAinAbility 9

guelph coMMunity energy initiAtive 10

developing coMMunity energy projects 11solar energy

district energy

environMentAl stewArdship 14our strategic Approach

environmental compliance Audit

2011 environmental Milestones

helping customers save energy, save Money

protecting the environment — Air, water, wildlife

preventing pollution

green transportation

econoMic success 20our strategic Approach

reliability of the distribution network

investing in capital projects to Accommodate growth

investing in a smarter grid

A smarter grid for a sustainable energy Future

guelph hydro’s smart grid

sociAl responsibility 27our strategic Approach

stakeholder engagement

valuing customers

easy online Access to electricity consumption data

valuing employees

ensuring safety, health and wellness

giving back to the community

corporAte governAnce 33board Members

senior Management team

About this report 37

globAl reporting initiAtive 39

Table of ConTenTs

GUELPH HYDRO INC.Non-Regulated

Holding Company

“Guelph Hydro is promoting energy conservation and developing efficient, low-carbon sources of energy to help cut greenhouse gas emissions and reduce Guelph’s carbon footprint for a healthier community.” Barry Chuddy

Chief exeCutive OffiCer

Guelph hydrO inC.

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glancing down the list of achievements on the opposite page, it is easy to see

that 2011 was an extraordinarily successful year for guelph hydro inc.

in addition to providing customers with safe, reliable and cost-effective

electricity distribution services, the company constructed its first transformer

station to support growth in the community; completed approximately

$28 million worth of projects to upgrade, maintain and expand the distribution

network; laid the foundation for a smarter grid; migrated the majority

of our customers to time-of-use billing; entered the field of renewable

generation; published an award-winning, inaugural sustainability report; filed

a comprehensive rate rebasing application with the ontario energy board;

converted to international Financial reporting standards (iFrs); achieved

net income targets that were ahead of expectation and filed more than

20 applications with the ontario power Authority for new sustainable energy

projects to enable us to fulfill our commitments to the city of guelph.

these accomplishments were the result of the dedication of the company’s

113 employees who work hard every day to provide superior customer service,

drive operational excellence and help create a sustainable energy future for the

communities we serve.

clearly, our employees’ efforts are making a difference for, in 2011, guelph hydro

was proud to be named Large Company of the Year by the ontario energy

Association (oeA). this award acknowledged guelph hydro’s performance

excellence and demonstrated leadership in the field of sustainability, firmly

establishing the company as a leader in the ontario utility sector.

Steady Growth and a Stable dividend

in 2011, the city of guelph transferred its direct ownership of guelph hydro inc.

shares to the newly incorporated guelph Municipal holdings inc. which is

100 per cent owned by the city. this restructuring is part of a broader plan the

city is implementing to change the way it governs certain corporate assets.

guelph hydro has always prided itself on providing its shareholder with steady

growth and a stable dividend and customers with safe, reliable, cost-effective

services. the year 2011 was no exception.

thanks to disciplined financial management and careful planning, guelph hydro

paid a dividend to its shareholder of $1.5 million in 2011. this was despite investing

$16.7 million in building the company’s first transformer substation to provide critical

capacity for growth in the south end of the city of guelph as well as $9.0 million to

install 48,000 smart meters and associated back office systems. the total amount

of shareholder dividends paid out over the last five years is $8.5 million, making

guelph hydro inc. an extremely valuable asset to the community.

guelph hydro’s financial strength is reflected in the company’s standard & poor’s

“A” credit rating which is among the strongest in the industry.

A MESSAGE TO OUR STAKEHOLDERS

barry Chuddychief executive officer

Jasmine uriskboard chair

2

2011 aChievementS

Operational Excellence

• Achievedover750,000hourswithoutalost-timeinjury

• Completedthecompany’sfirstmunicipaltransformerstationdirectlyconnectedtotheprovincialtransmissiongrid

• Invested$1.6milliontoreplaceageddistributionsystemassets

• Spent$26.5millionincapitalprojectstoupgradeorexpandtheelectricitydistributionnetwork

• Connected2Feed-in-Tariff(FIT)and59microFITinstallationstothecompany’sdistributionsystem

• Achievedrecord-settingcustomersatisfactionratingsonabi-annualCustomerSatisfactionSurvey,surpassingtheprovincialaverageforutilitycompaniesby7%

• MigratedcustomerstoTime-of-Usebilling

• Connected551newresidentialandcommercialcustomers

• Achievedasystemreliabilityindexof99.97%

• OneofthefirstutilitiesinOntariotoconductanElectricVehicleMarketResearchStudy

Financial Excellence

• Earnedanetincomeof$1.9million

• Paidadividendof$1.5milliontotheCityofGuelph

• ReportedfinancialperformanceforthefirsttimeusingInternationalFinancialReportingStandards(IFRS)

• FiledacomprehensiveraterebasingapplicationwiththeOntarioEnergyBoard

Environmental Excellence

• Commissionedthecompany’sfirst100kilowattrooftopsolarinstallationontheroofofGuelphHydro’sheadoffice.Byyear-end,90.86megawatthoursofsolarenergyhadbeenfedintotheOntariogrid

• Promotedenergyconservationprogramsthatachievedenergysavingsofmorethan22millionkilowatthoursofelectricity,enoughenergytopowermorethan2,500homesforoneyear

• Removedandrecycled687old,inefficientrefrigerators

• Paidoutmorethan$1.5millioninenergyefficiencyrebatestobusinesses

• Filedmorethan20applicationswiththeOntarioPowerAuthorityfornewsustainableenergyprojectstoallowustofulfillourcommitmentstotheCityofGuelph

Social Responsibility

• Together,employeesandthecompanydonated$48,985totheUnitedWay

• Employeesprovided$7,000worthofChristmasgiftsfor35childrenandtheirfamiliesthroughTheChildren’sFoundationofGuelphandWellington

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a SuStainable enerGy viSion for Guelph

According to experts, a reliable, affordable, sustainable energy supply is, and

will continue to be, a key ingredient in the long-term competitiveness, economic

growth and prosperity of cities.

As a result, city planning is changing. it used to be that city planners focused on

ensuring that new developments would be served by sewers, water, roads and

transportation. A supply of electricity was taken as a given.

today, forward-thinking, growing communities like guelph, are ensuring that

energy infrastructure—electricity and thermal energy—is planned alongside

other amenities.

with this thought in mind, guelph hydro’s non-regulated subsidiary company,

envida community energy inc. (formerly ecotricity guelph inc.) and the

city of guelph are pioneering a collaborative approach to municipal energy

infrastructure planning and management designed to move the community

towards a sustainable energy future with a reduced carbon footprint.

a Smarter Grid to benefit CommunitieS

Meanwhile, the regulated electricity distribution company, guelph hydro electric

systems inc., successfully deployed approximately 48,000 smart meters, the

basic foundation of a smart grid and migrated residential and small commercial

customers in guelph to time-of-use rates for electricity. these customers can

now conveniently view charts of their hourly, daily, weekly or monthly electricity

consumption online. this high level of detail will enable consumers to make wiser

choices about how and when they use energy in order to reduce consumption

and save money. customers in rockwood will be shifted over to time-of-use

rates in mid-2012.

local sources of power generation are also components of a smart grid.

ontario’s green energy and economy Act requires that local electricity

distribution companies provide connection services for customers who install

renewable energy projects under the ontario power Authority’s Feed-in-

tariff (Fit) or microFit programs. in 2011, guelph hydro electric systems inc.

engineering and technical staff connected 61 customer-owned rooftop solar

installations, including one on the roof the guelph hydro’s facility. together these

systems generate 470 kilowatts of clean, renewable power for the ontario grid.

looking forward, guelph hydro electric systems inc. will continue to invest in

capital to upgrade the network to accommodate more and more sources of

renewable energy in the community.

ChampioninG enerGy ConServation

As a condition of license, by the end of 2014, all electricity distributors in

ontario are required by the ontario energy board to achieve reductions in

electricity consumption and peak provincial electricity demand through the

delivery of conservation and demand management programs. (see page 6.)

guelph hydro electric systems inc. is diligently promoting ontario power

Authority saveonenergyoM programs and working to encourage all customers

to reduce electricity consumption and peak demand.

A MESSAGE TO OUR STAKEHOLDERS cOnTinUED

the Guelph Community energy Initiative has a target of 1,000 solar roofs. the 61 rooftop solar installations connected by Guelph Hydro electric Systems Inc. in 2011 generate 470 kilowatts of electricity. envida Community energy submitted 18 applications for an additional 11.7 megawatts of solar energy to the ontario power Authority.

photo courtesy of canadian solar inc.

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AwArds

• LargeCompanyoftheYear–OntarioEnergyAssociation• Twoawardsforthecompany’sfirstSustainabilityReport

- CanadianPublicRelationsSocietyPinnacleAward- CorporateRegisterCorporateResponsibilityReportingAward–

RunnerUpintheSmallandMediumEnterpriseCategory• ThirdZeroQuest®Gold(Outcomes)Award–InfrastructureHealthandSafetyAssociation• ElectricalSafetyAuthorityPowerlineSafetyAward• LEED®(LeadershipinEnergyandEnvironmentalDesign)certificationfromthe

CanadaGreenBuildingCouncil

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reductions in electricity – 2014 targets

2014 target Achieved to Date****

province 6,000 gigawatt hours 1,389 gigawatt hours

Guelph Hydro electric Systems Inc. 79.53 gigawatt hours*** 31.5 gigawatt hours***

reductions in peak demand – 2014 targets

2014 target Achieved to Date****

province 1,330 megawatts 78.9 megawatts

Guelph Hydro electric Systems Inc. 16.7 megawatts** 5.58 megawatts*

* equivalent to removing the demand load of the university of guelph ** 2014 net annual peak demand savings *** net cumulative energy savings **** estimated unverified results

lookinG ahead

the passing of ontario’s landmark green energy and economy Act in 2009 ushered in a new era for ontario’s utility industry. challenges for our company and the industry in terms of regulatory complexity, political uncertainty, smart grid development, renewable energy, a looming shortage of skilled workers and an eroding tolerance by customers for rising electricity costs were not even on the radar a few years ago.

recognizing the need for significant investment in the sector and consumer concerns regarding bill increases, our regulator, the ontario energy board, with input from stakeholders, is now designing a renewed regulatory framework for electricity that will govern how we do business in the future. included is a review of the need for and value of distribution utility consolidation in ontario. together, these efforts could result in some dramatic changes in the industry.

Meanwhile, shifting social norms are impacting the ways in which we are interacting with our customers. customer preferences are shifting from traditional counter or telephone service to online or mobile services offered 24-hours-a-day, seven-days-a-week. utilities in north America are also seeing an increasing demand from consumers for faster, more detailed information, particularly during outages, using web-based or social media platforms.

As a recognized industry leader with a reputation for innovation, guelph hydro has an important role to play participating in candid, ongoing discussions with regulators and government officials to help shape the utility industry of tomorrow.

we believe that in order to survive, utilities need to be open to change, innovative in their thinking, nimble and continuously focused on adding value—for customers, for the shareholder and the communities we serve.

recognizing this, we are engaging our employees and developing strategic plans that will position us well to take on whatever challenges lie ahead.

Jasmine urisk barry Chuddychair chief executive officerguelph hydro inc. board of directors guelph hydro inc.

A MESSAGE TO OUR STAKEHOLDERS cOnTinUED

6

2011 faSt faCtS

Service territorypopulation – Guelph and Rockwood 136,466

total Service Area 93 square kilometres

total assets $193.5 million overhead wires (primary overhead conductor)

430 kilometres

Underground cable (primary underground cable)

654 kilometres

Municipal transformer stations1 owned by Guelph Hydro3 owned by Hydro one

Municipal substations 2

transformers 5,711

poles 11,045

total Customers 50,867

electricity Consumption 2011 1,677 gigawatt hours Residential

Number of customer accounts 46,519

total electricity consumption 365 gigawatt hours

Average monthly consumption 655 kilowatt hours

Commercial (includes scattered loads and sentinel lighting)

Number of customer accounts 4,344

total electricity consumption 1,040 gigawatt hours

Large industrial users >5000 kW

Number of customer accounts 4

total electricity consumption 261 gigawatt hours

System peak load

2011 peak demand – summer/winter297 megawatts / 253 megawatts

reliability of the Guelph hydro electricity distribution networkReliability performance 99.97%

Average amount of time customers were without power in the event of a power outage

50 minutes

Response to emergency calls – per cent of time crews were on-site within 60 minutes

96.1%

per cent of new connection requests completed within five days

99.9 %

Guelph hydro inc. financial highlights(in millions of dollars) 2010 2011

Service Revenues $146.5 $153.2

Net operating Revenue $29.1 $28.1

Net Income (Loss) $4.8 $1.9

total Assets $181.4 $193.5

Capital expenditures $18.2 $26.5

Dividends paid $1.5 $1.5

effective january 1, 2011, guelph hydro began preparing its financial statements in accordance with international Financial reporting standards (iFrs). in prior years, financial statements were prepared using canadian generally Accepted Accounting principles (canadian gAAp). the opening balance sheet has been restated at january 1, 2010, the iFrs transition date, by applying iFrs retrospectively so that 2011 results can be compared against 2010 results on a consistent iFrs basis.

guelph hydro inc. 2011 Financial statements are available at: www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca. printed copies may be requested by sending a note to: [email protected].

7

our visionto lead ontario in powering community well-being and environmental

stewardship with sustainable energy solutions.

our Missionto invest in energy-related initiatives for the benefit of the communities

in which we operate, that fit the energy-related objectives of the province

and our shareholder, and enable guelph hydro inc. and its family of

companies to grow into industry leaders.

our core vAluesSafety, reliability and effiCienCy

we believe we earn employee and customer respect by operating

safely, reliably and efficiently.

CarinG

we care about our people. we foster and respect their talents and

value the contribution they make to the company’s ongoing success.

relationShipS

we are proud of the solid, long-term relationships we are forging with

our employees, customers, the communities in which we operate, and the

energy industry, built on a platform of integrity, partnership and respect.

innovation and leaderShip

we believe innovative thinking, leadership skills and adaptability drive

our business success.

environmental StewardShip

we are committed to environmental stewardship, contributing to

building sustainable communities and helping to create a culture of

energy conservation in ontario.

viSion, miSSion and valueS

8

At Guelph Hydro, our vision is to lead Ontario in powering community well-being and environmental stewardship with sustainable energy solutions.

Our regulated electricity distribution company, Guelph Hydro

Electric Systems Inc., is accountable for providing a safe, reliable

and cost-effective supply of electricity to the Guelph and

Rockwood communities.

Guelph Hydro Inc. and its affiliate companies are working together to

help move the communities we serve towards a sustainable energy

future and a cleaner environment.

Our Sustainability Policy sets forth Guelph Hydro’s commitment to

make decisions and operate our businesses in a sustainable manner—

in a way that will deliver balanced economic, social and environmental

returns that will ensure the success and future viability of our

company for the benefit and well-being of all our stakeholders.

Guelph Hydro has made sustainability an integral part of planning

and decision making and has adopted best practices for managing

operational and environmental risks.

EnvirOnmEntAl stEwArdsHip is evaluated by our success

in championing energy conservation, investing in sustainable forms

of energy, managing waste and the environmental impacts of

our operations.

sOciAl rEspOnsibility is evaluated by how we ensure the

safety and wellness of people—our employees, our contractors,

our customers and the general public—and how we give back to

our communities. Our performance is also evaluated on the ethical

business practices and effective systems of corporate governance

that are in place.

We are committed to providing a safe and respectful workplace

where employees are highly valued, treated fairly, provided with

challenging and meaningful work and benefit from opportunities for

knowledge growth and career development.

EcOnOmic succEss is evaluated by the value we create for

our stakeholders while facilitating the economic growth of the


pErfOrmAncE mEAsurEd AGAinst GlObAl rEpOrtinG initiAtivE™

We measure our performance using the Global Reporting Initiative™

(GRI), an internationally recognized standardized framework and

indicators for disclosing an organization’s environmental, social and

economic performance.

Additional information regarding the Global Reporting Initiative™

can be found on page 37. A detailed Global Reporting Initiative™

Content Index is included on pages 39 - 48.

OUR APPROACH TO SUSTAINABILITY

“At Guelph Hydro, we are taking action—through our energy conservation programs and our sustainable energy projects—to help create a sustainable energy future for the communities we serve.” Barry Chuddy


Guelph hydrO inC.

We welcome your feedback on

this report and our sustainability

efforts. Comments may be

addressed to:

[email protected].

9

“The Community Energy Plan is not just about energy, it is about building resilience. When the goals are achieved, Guelph will be positioned among the top energy performers in the world, making it one of the most competitive and attractive communities in which to invest.”Karen Farbridge,

Mayor oF guelph

the city of guelph is one of canada’s fastest growing communities

with a population that is expected to reach 175,000 residents by

2031. in keeping with ontario’s places to grow Act, growth will be

within current boundaries with a focus on increased urban density.

with a desire to ensure the long-term competitiveness and

environmental performance of the city, in 2007, guelph

distinguished itself by being one of the first communities in

canada to publish a community energy plan. the goals of the

guelph community energy initiative (as it is called today) to be

achieved by 2031 are ambitious:

• Use 50 per cent less energy per capita (electricity, gas, water and transportation)

• produce 60 per cent less greenhouse gas emissions per capita (5 tonnes versus 12 tonnes)

• encourage and facilitate community-based renewable and alternative energy systems.

when these goals are achieved, guelph will be positioned among

the top energy performers in the world, making it one of the most

competitive and attractive communities in which to invest.

partnerinG to aChieve Community enerGy initiative GoalS

As the owner and operator of the local electricity distribution

company serving guelph, guelph hydro’s primary obligation to the

community is to provide a safe, reliable, affordable supply of energy.

next in importance, is the company’s commitment to work with

the city of guelph to help reduce energy consumption and

greenhouse gases to achieve the environmental goals of the

community energy initiative. these objectives dovetail nicely

with the energy conservation targets set for guelph hydro by the

ontario energy board. (see page 6.)

in 2011, the company worked diligently to make progress by

concentrating on four areas of focus:

• Implementing solar power

• Developing district energy projects

• Developing a smart grid

• Championing energy conservation

EnErgy DEnsity MappingAhead of the curve on community energy planning, Guelph Hydro participated in a Canadian Urban Institute project in 2010 to produce an energy density map for Guelph. Using actual electricity and natural gas data from utilities, the map shows where energy use is concentrated in the community.

Guelph Hydro has used this map to assist with planning energy infrastructure, particularly in areas that are expected to increase in density.

Guelph Community enerGy initiative

“Today, forward-thinking, growing communities like Guelph, are ensuring that energy infrastructure—electricity and thermal energy—is planned alongside other amenities.” Barry Chuddy


Guelph hydrO inC.

10

in 2010, the City of Guelph named Guelph hydro inc. as its primary developer and implementer of energy-related projects in support of the Guelph Community energy initiative. Since that time, Guelph hydro and its subsidiary company, envida Community energy inc., have been working to develop sustainable energy projects within city-owned assets. this includes leasing roofs of municipal buildings for solar installations and developing district energy and other clean power projects. these projects are the foundation for a cleaner, highly efficient energy infrastructure, underpinning the overarching energy plan of the City.

solAr energy Guelph hydro SouthGate Solar proJeCt

in 2010/2011, guelph hydro installed 60 arrays of photovoltaic

solar panels on the roof of its facility at 395 southgate drive in

guelph. the facility was commissioned and started generating

100 kilowatts of clean, renewable electricity for the ontario

grid in june 2011.

guelph hydro’s 20-year Feed-in tariff (Fit) contract with the

ontario power Authority (opA) under ontario’s green energy

and economy Act pays the company 71.3 cents per kilowatt hour

for the electricity generated. the system is expected to generate

approximately 115,000 kilowatt hours of electricity in a year which

will result in an annual income of about $82,000.

by year end, with only seven months of operation, the system had

already fed more than 90,000 kilowatt hours of electricity into

the ontario grid.

Solar enerGy in the Community

under the community energy initiative, guelph has set a goal of

1,000 solar roofs in the community. in support of this goal, envida

community energy has been actively pursuing opportunities to

establish rooftop and ground-mounted solar facilities throughout

the community. in total, the company submitted applications to

the ontario power Authority for 11.7 megawatts of solar power

which includes a partnership and community co-op application for

the largest brownfield ground mount solar installation in ontario.

these applications are currently awaiting approval.

Meanwhile, guelph hydro electric systems inc. has provided

connections for 61 customer-owned solar installations.

developinG Community enerGy proJeCtS

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“An ‘eco-business zone’ with a district energy system at its heart, encourages economic development by providing an infrastructure that is attractive to investors and businesses looking to locate in the community.”Karen Farbridge

Mayor oF guelph

district energya CatalySt for eConomiC development

Although common in other parts of the world for over a century,

north American communities are only now beginning to view

the clean, economical, reliable energy that can be provided by a

district heating grid as a method of attracting development.

envida community energy is working with the city of guelph on

two major district energy projects with others under consideration:

• Greenfield Site - Hanlon Creek Business park - 675-acre, mixed use business park - expected to attract 10,000 new jobs by 2031 - District energy system

» electricity - 11.4 megawatts cogeneration » Hot and chilled fluids for heating and cooling » Steam and chilled fluids for process » Fuel: Natural gas

• Brownfield Site - High-Density Infill Site in Downtown Core - New condominium and residential neighbourhood - New commercial developments - Increased electrical capacity in downtown core - District energy system

» Heating and cooling for condominium, residential neighbourhood and two City-owned facilities

what iS diStriCt enerGy?

A district energy system delivers thermal energy (hot water/steam

or chilled fluid) from a central plant via underground pipes to heat

and cool buildings.

Benefits of District energy

• Reducedfuelcosts• Relieffromvolatileelectricity

andgaspricesandlowerbuildingoperatingcosts

• Avoidanceofcapitalcosts• Improvedlifecyclecosts• Reducedspacerequirements• Reducedgreenhouse

gasemissions• Dependable,high-quality

thermalenergy• Higherreliabilitythan

conventionalheatingandcoolingsystemsIllustration courtesy of the International District Energy Association

12

Hamilton Community energy, located adjacent to a high school in downtown Hamilton, supplies heating and cooling for buildings in the city core. envida Community energy is developing plans to site similar highly efficient community energy plants in Guelph to help reduce the community’s carbon footprint.

unobtruSive, hiGhly effiCient Community enerGy faCilitieS Supply eleCtriCity and thermal enerGy

when electricity is generated at large, centralized power stations,

about 60 per cent of the primary energy in fuel is wasted as heat that

is generally exhausted to the atmosphere. by generating electricity

in unobtrusive, community energy plants in urban centres, heat that

would otherwise be wasted can be harnessed and distributed to

buildings as hot water or steam through underground district heating

pipes. in the summer, using absorption chillers, chilled fluids can be

fed through the underground pipes for district cooling.

When the Hanlon Creek

Business Park was in the

concept stage, City Planners

allowed for dedicated

corridors that could include

district energy piping.

Meanwhile, Guelph Hydro

ensured the electricity system

could easily accept energy

generated by local renewable

energy facilities such as

rooftop solar and could also

accommodate parking lots

equipped with electric vehicle

charging stations.

photo courtesy of hamilton community energy.

illustration courtesy of the city of guelph.

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environmental StewardShip

our strAtegic ApproAchdevelopinG SuStainable enerGy SolutionS, ChampioninG enerGy ConServation and proteCtinG the environment

At guelph hydro, our goal is to minimize our environmental footprint and

safeguard the environment now and for future generations. we believe

that responsible environmental management is essential to our success

and we seek to continually improve our performance.

our vision is to lead ontario in powering community well-being and

environmental stewardship with sustainable energy solutions. this includes

supporting the goals of the city of guelph’s community energy initiative

by promoting energy conservation and developing combined heat

and power, district energy, solar and bioenergy projects to reduce the

community’s carbon footprint.

on a day-to-day basis, our environmental strategy is focused on meeting

or exceeding compliance requirements with all laws, regulations and

company policies. we have made environmental management an integral

part of planning and decision-making, and adopted best practices for

managing operational and environmental risks.

environMentAl coMpliAnce Auditguelph hydro conducted its first formal environmental compliance Audit

in 2011 and is pleased to report that only two minor non-compliance issues

were revealed and quickly rectified. the audit reviewed a wide variety of

operational processes that have environmental impacts including:

• General environmental management

• Air emissions

• Noise emissions

• Water management

• Non-hazardous materials waste management

• Hazardous and toxic materials waste management

• Storage tanks, spill control and countermeasure plans

• emergency response and preparedness

“Guelph Hydro’s focus on environmental excellence is evidenced by the list of significant environmental milestones achieved during 2011.”Barry Chuddy


Guelph hydrO inC.

14

2011 energy Conservation achievements

687 old, inefficient refrigerators were picked up and recycled in an environmentally friendly manner, for free, as part of the saveoNenergyoM FRIDGe AND FReeZeR pICKUp program.

719 customers received up to $650 for installing an eNeRGY StAR® qualified central heating or cooling system under the saveoNenergyoM HeAtING AND CooLING INCeNtIVe.

226 local businesses received up to $1,000 in free energy-efficient lighting upgrades under the saveoNenergyoM SMALL BUSINeSS LIGHtING program.

saveoNenergyoM DeMAND ReSpoNSe compensate industrial and commercial businesses for reducing their energy demand at specific times. In 2011, five commercial / industrial customers enrolled in the DeMAND ReSpoNSe program. During periods of high demand, these companies will be able to take action to reduce the load on the system by 410 kilowatts.

49 local businesses received $1.3 million in saveoNenergyoM RetRoFIt pRoGRAM rebates for retrofitting their operations with energy-efficient lighting, heating and air conditioning equipment, controls and motors to improve the energy efficiency of their facilities and their bottom line.

2011 Milestones

Published an Environmental Policy Statement.

First formal Environmental Compliance Audit conducted.

100-kilowatt rooftop solar facility commissioned and operational.

Green transportation initiatives – Addition of a plug-in electric service vehicle to the company fleet that already includes a hybrid car and hybrid bucket truck.

Environmental Impact Assessments conducted and Certificates of Approval obtained for a new transformer station.

LEED® certification of the Guelph Hydro building.

Preferential parking spots created for hybrid or all-electric vehicles.

environmental mileStoneS

Guelph Hydro Electric Systems Inc. continues to champion energy

conservation and demand management by promoting Ontario Power Authority

saveONenergyOM programs to residential and business customers. These programs

help customers conserve energy, save money and improve the environment by

reducing greenhouse gas emissions.

In 2011, energy conservation programs diverted almost 4,500 tonnes of CO

2 emissions

from the atmosphere.

Energy conservation programs achieved savings of more than 22 million kilowatt hours of electricity in 2011.

15

helping custoMers sAve energy, sAve MoneySleeman brewerieS reCeived $126,000 in enerGy effiCienCy rebateS

sleeman breweries limited took advantage of the ontario power

Authority’s retroFit progrAM to replace an oversized, back-up

air compressor with two smaller 75-horsepower compressors. A new

3,000-gallon tank, flow control valve and cycling refrigerant dryer were

also installed. total capital costs came to $249,000 after a $10,500

rebate from guelph hydro. Annual savings as a result of the upgraded

compressed air system are estimated at $42,000 with estimated energy

savings of 420,000 kilowatt hours per year.

For its second retrofit project, sleeman breweries replaced close to 1,000

old lighting fixtures in its facility with energy-efficient bulbs. the company

received a $115,978 rebate for completing this lighting upgrade, bringing

the cost to replace the lighting down to $173,967. with annual savings

estimated at more than $139,000 in electricity costs, this lighting retrofit

project has a very attractive 18-month payback.

univerSity of Guelph mClauGhlin library iS SavinG more than $180,000 annually on eleCtriCity

with a facility that encompasses more than 23,225 square metres

(250,000 square feet) including more than six floors of study space and

book collections, the Mclaughlin library is one of the biggest electricity

consumers on the university of guelph campus. with financing provided

by the ontario power Authority’s electricity retrofit incentive program

(erip), the university replaced its lighting with energy-efficient lighting. the

university estimates its peak electricity demand will fall by 246 kilowatts and

achieve a consumption savings of over 2.1 million kilowatt hours annually,

which will save about $187,000. the reduced electricity consumption will

also mean a carbon-dioxide reduction of about 628 tons annually.

Guelph motorCyCle Shop reduCed eleCtriCity CoStS and improved bottom line

Motorcycle customizer rnr custom cycle ltd. used a $1,000 power

savings blitz grant from the ontario power Authority and guelph hydro

to upgrade its workshop lighting and cut its electricity bill by more than

10 per cent a month.

16

protecting the environMent — Air, wAter, wildliFeguelph hydro is committed to reducing air emissions, conserving

water and managing waste responsibly.

air

by promoting energy conservation in our community and in our own

operations, guelph hydro is contributing to reducing greenhouse

gases. in addition, the use of a hybrid car, hybrid bucket truck

and all-electric service van in the company fleet are reducing air

emissions from exhaust.

water

in an effort to keep our water use to a minimum, our leed®-certified

building features high-efficiency plumbing fixtures including

low-flow faucets and toilets. in addition, drought tolerant and native

plant species eliminate the need for landscape irrigation. As a

result, water use in our building is 20 per cent lower than leed®

baseline measurements.

wildlife

out in the field, animal guards have been installed to prevent wildlife

from climbing on hazardous equipment. if an animal’s nest or burrow

will be disturbed by the activities of the company, the humane

society is called in to relocate any potentially impacted animals.

Guelph Hydro’s LeeD®-certified facility features a ground-source geothermal heating and cooling system, high-efficiency plumbing and lighting, and drought-resistant landscaping.

17

preventing pollution At guelph hydro, pollution prevention is defined as the use of

processes, operational practices, materials, products, substances or

energy that avoid or minimize the creation of pollutants and waste

and reduce the overall risk to the environment or human health.

the company has a variety of programs in place that eliminate

or minimize pollutants:

• environmentally friendly transformer oil used in Rockwood Municipal Substation #2

• environmentally friendly hydraulic oil used in trucks and tools

• Use of water-based paints

• Renewable energy usage – geothermal heating/cooling and solar energy

reCyClinG

recycling efforts in our operations include metal, paper, wood,

bottles, cans, oil, batteries, toner cartridges, computer equipment

and plastics.

4,895 lighting fixtures recycled

As part of our energy conservation efforts, 226 small business

customers had old, inefficient lighting fixtures replaced with up to

$1,000 worth of high-efficiency lighting under the saveonenergyoM

sMAll business lighting progrAM. the lighting that normally

might have gone to landfill was removed and recycled in an

environmentally friendly manner.

Lamps 4,895

pCB ballasts 401

Glass 1,677 kilograms

Metal 18 kilograms

phosphor 26 kilograms

Mercury 0.18 kilograms

18

Green TransporTaTion

Guelph Hydro’s fleet currently includes one hybrid passenger vehicle,

a hybrid bucket truck and an all-electric service vehicle. Use of the

hybrid bucket truck alone saved 1,387 litres of diesel fuel in 2011,

resulting in a reduction in greenhouse gases of 3,705 kilograms. In

addition, all new fleet vehicles are required to use environmentally

friendly hydraulic oil, motor oil and fuel.

In 2011, Guelph Hydro completed a telephone market research survey

of 200 residents and 25 fleet managers regarding electric vehicles in

the Guelph community. The purpose was to measure the community’s

interest in electric vehicles and obtain information that will be useful in

planning for demands electric vehicles may put on the local electricity

grid. Results of the survey indicate that Guelph is an ideal community

in which to conduct a pilot program on electric vehicles.

“Guelph Hydro’s hybrid bucket truck is a great example of an asset that helps us protect the environment and provides an economic benefit while our line crews carry out their day-to-day activities on the streets.”Kazi Marouf

Chief operating offiCer

guelph hydro

eleCtriC SySteMS inC.

19

our strAtegic ApproAchCreatinG value and foSterinG eConomiC Growth

At guelph hydro, our economic performance is a careful balancing

act of creating value for our stakeholders while facilitating the

economic growth of the communities we serve.

guelph hydro inc. is committed to maintaining the corporation’s solid

financial standing and providing our shareholder, guelph Municipal

holdings inc., with an appropriate return on investment while growing

the balance sheet. we deliver superior economic results through

disciplined financial administration, careful management of risks,

and strategic growth of our non-regulated businesses.

Maintaining a strong balance sheet and credit profile gives us the

ability to support significant capital investment programs that

enable us to ensure reliability, expand the network to support

community growth and invest in sustainable energy solutions

to benefit the community.

we believe being a strong, financially viable company enables us to

deliver on our social and environmental commitments. conversely,

we believe focusing efforts on sustainability helps us increase our

financial strength.

guelph hydro inc. 2011 Financial statements are available at:

www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca.

printed copies of the guelph hydro inc. 2011 Financial statements may

be requested by sending a note to: [email protected].

eConomiC SuCCeSS

20

reliAbility oF the distribution networksafety, reliability and the ability to meet an increasing demand for

electricity in our growing community are critical issues for our regulated

utility, guelph hydro electric systems inc.

the robustness of the electrical distribution system is a direct result of

well-planned capital replacement and expansion programs, diligent

preventative maintenance and investments in smart grid and other

advanced “self-healing” technologies that can detect problems on our

network and fix them automatically.

the resilience of our distribution network was tested in the summer of 2011

first by an increase in wildlife interference, then by fierce lightning and wind

storms and finally by extreme heat. power system demand hit an all-time

record high of 297 megawatts during the worst of the july heat wave as

residents and businesses cranked up air conditioners to keep cool. Although

the guelph hydro distribution network performed extremely well during

these demanding periods, the duration and frequency of power outages

increased due to the adverse conditions.

Many outages that are affected by circuit trips can be rectified using

remotely operated switches. if this is not possible, guelph hydro

emergency crews are deployed rapidly to make repairs and restore

power to customers as swiftly as possible. during 2011, emergency crews

responded to 462 after-hours calls to restore service.

investing in reliabilitySpent $1.6 million to replace aged distribution system assets

Inspected over 3,400 poles for strength and health, treating them for termites as required and replacing them as needed

trimmed trees encroaching on overhead lines in one-third of our service area

Conducted on-going maintenance of switches, transformers and underground equipment

performed infra-red scans that enable the early detection of degrading equipment, prevent power outages caused by equipment failure and prolong service life

“At Guelph Hydro, our job is to deliver electricity safely and reliably. Each year we invest millions of dollars in projects designed to prevent outages and shorten restoration times.” Kazi Marouf

Chief operating offiCer

guelph hydro

eleCtriC SySteMS inC.

21

investing in cApitAl projects to AccoMModAte growthguelph is one of ontario’s fastest growing communities with a population

expected to grow from the current 120,000 to 175,000 residents by

2031. during this period, the area is also expected to attract significant

commercial and industrial investments, particularly in business parks

located in the south end of the city.

new 115-kilovolt tranSformer Station

in anticipation of an increase in electricity demand from commercial

enterprises that will locate in the new hanlon creek business park and new

residential developments, in 2011, guelph hydro completed construction

of the new 115-kilovolt Arlen Municipal transformer station and added

and upgraded associated feeder circuits. this new transformer station

will provide sufficient capacity for 20 years of growth and will serve as

contingency backup for the community’s other transformer stations. it

was built to contain the latest in technology, can incorporate embedded

generators easily and will operate using smart grid applications.

2011 Capital projects highlightsContinued construction of new distribution facilities in the New Hanlon Creek Business park

Commencement of work on the relocation of distribution system facilities to accommodate the Hanlon expressway and Laird Road interchange

Upgraded overhead distribution circuits on Alice Street, edinburgh Road and Balmoral Drive to improve reliability

provided new service to approximately 15 new residential subdivision and townhouse complexes totaling more than 900 units

22

investing in A sMArter gridwhenever you power up your computer or flip on a light switch, you

have plugged into ontario’s electricity grid. the ontario grid is a network

of transmission and distribution lines, substations and transformers,

overhead and underground lines that deliver electricity from power plants

across the province (or outside of ontario in times of peak demand) to

your home or business.

ontario’s provincial power grid is moving towards a digital future—often

described as the smart grid—that supplants the traditional one-way flow

of electricity with a two-way flow of both electricity and information that

will enhance communication with consumers and improve the reliability,

efficiency, security and environmental impact of the electricity system.

guelph hydro electric systems inc. is investing in smart grid technologies,

including 48,000 smart meters that have been installed as part of its

commitment to building a stronger, smarter, cleaner and more efficient

electricity distribution network in the communities we serve. (see illustration

on next page.)

our goals in implementing a smarter grid are to:

• Continue to provide a high level of service reliability

• enhance the capability of the network to incorporate cleaner, local sources of power

• provide customers with detailed information so they can better manage their energy use and costs.

23

A Smarter Grid for a Sustainable Energy FutureGuelph Hydro is developing a smarter grid to increase reliability, reduce restoration times, optimize efficiency, provide more customer interaction, accommodate local power generation from renewable sources, mitigate CO2 emissions, and handle the anticipated influx of electric vehicles.

SYSTEM CONTROL CENTRE Guelph Hydro monitors the network from a centralized control centre, pinpointing problems, responding quickly to outages, and deploying emergency repair crews.

REMOTELY OPERABLE SWITCHES Remotely operable switches provide System Control Operators with the ability to restore power remotely.

INTELLIGENT MONITORING DEVICES Intelligent monitoring devices installed on lines provide System Control Operators with immediate notification of power disturbances so problems can be isolated and power rerouted.

ACCESS POINTS Convey data gathered from 48,000 smart meters to a computer system at Guelph Hydro.

LOCAL GENERATION / SOLAR PANELS Clean, renewable sources of power feed electricity into the grid. Payment for the electricity generated is received under contract from the Ontario Power Authority.

DEMAND RESPONSE To reduce consumption during peak times, residential air conditioners can be cycled automatically and industrial customers can be signaled to turn equipment down or off.

SMART METERS ZigBee® chip-enabled smart meters track hourly electricity usage in homes and small businesses.

IN-HOME DISPLAY UNIT Using data collected by the smart meter, these units will display real-time energy consumption and estimated costs for use by consumers.

HOUSEHOLD ENERGY CONSUMPTION DATA By viewing hourly, weekly or monthly smart meter data online, consumers can make more informed decisions about how to manage energy usage.

HOME AREA NETWORK Inside the smart home a home area network will connect smart appliances, programmable thermostats, outlets and other electric devices to an energy management system.

SMART APPLIANCES Smart appliances will monitor electricity prices and adjust their run schedules to take advantage of lower electricity price periods.

ELECTRIC VEHICLES Electric vehicle charging stations will communicate with the grid to automatically charge during the lowest price periods when possible.

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2

4

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3

GUELPH HYDRO SMART GRID

SMART HOME

COMMUNITY ENERGY SYSTEM

GUELPH HYDRO100% ELECTRIC SERVICE VAN

SMART HOME

GUELPH HYDRO SYSTEM CONTROL CENTRE

WASHERDRYER

ZIGBEE CHIP-ENABLED SMART METER

REFRIGERATOR

STOVE

ELECTRIC CAR

CHARGINGSTATION

SOLAR PANELS

A highly efficient energy system generates electricity and delivers thermal energy (hot water/steam or chilled fluid) from a central community energy plant via underground pipes to heat and cool buildings.

Benefits of District Energy

· Reduced fuel costs· Relief from volatile electricity and gas prices · Lower building operating costs· Avoidance of capital costs

· Reduced space requirements· Reduced greenhouse gas emissions· Dependable, high-quality thermal energy· Higher reliability than conventional heating and cooling systems

Smart meters are only the first step towards a smart home. On the horizon are smart appliances that will think for themselves and electric vehicle charging systems that will respond to price signals.

Guelph Hydro’s Smart Grid consists of:

• 48,000 smart meters• Approximately 100 remotely operable switches• Approximately 30 intelligent monitoring devices

To request a poster or electronic version of this illustration, please email: [email protected]

For more information, visit: www.guelphhydroinc.com

26

BUSINESS PARK

ACCESS POINT

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5

55

56

7

11

1112

3

2

2

1

2

PROGRAMMABLETHERMOSTAT

TRANSMISSIONLINES

DEMANDRESPONSECUSTOMER

ELECTRICITY FROMPOWER GENERATING

STATIONS

INTELLIGENT MONITORING

DEVICE

REMOTELYOPERABLESWITCHES

RESIDENTIAL NEIGHBOURHOOD

3

3

4

9

10

HOME ENERGYMANAGEMENT SYSTEM

THERMALFARM

SOURCE

COMMUNITY

ENERGY PLANT

5

8

guelph hydro’s sMArt gridSelf-healinG SwitCheS reSult in enhanCed reliability

For many years, guelph hydro has been quietly upgrading its distribution

network to incorporate intelligent monitoring devices and automated

switches that have the ability to detect a fault, isolate it and reroute

power to restore service automatically. As a result, some parts of the

guelph electricity network are already “smart” and can be said to be

“self-healing”—one of the hallmarks of a smart grid.

inteGratinG renewable enerGy

As ontario’s electricity system becomes greener, it is also becoming more

diverse, with smaller-scale generation being built within communities.

through the ontario power Authority’s microFit program, homeowners,

community groups, faith communities and businesses are installing solar

panels and other forms of renewable generation. by the end of 2011,

guelph hydro had provided the connection for 61 customer-owned solar

facilities to feed electricity into the ontario grid.

Smart meterS provide hourly data

smart meters, the backbone of a smart grid, provide the communications

gateway that connects the grid with the consumer. thanks to smart

meters, guelph hydro residential and small business customers can now

access their hourly, daily and monthly energy consumption data online.

by analyzing usage, customers can make choices about how and when

they use energy to save money and improve the environment.

26

SoCial reSponSibility

our strAtegic ApproAchenSurinG Safety, valuinG employeeS and CuStomerS and GivinG baCk to the Community

At guelph hydro inc., we are committed to managing our operations in

a way that protects the safety of our employees, our contractors, our

customers and the general public, while providing exceptional customer

service and contributing to building a sustainable community.

this commitment is underpinned by a strict adherence to all regulatory

requirements, policies, procedures and standards. we live our commitment

in our offices, in our service vehicles and on work sites in our service

territory. we demonstrate it in the decisions and actions taken by our

employees in carrying out their work every day.

stAkeholder engAgeMentthe ability of guelph hydro to succeed and provide maximum value to our

stakeholders is tied directly to the strength of the relationships we forge

with our employees, our customers, our shareholder, the communities in

which we operate and the energy industry.

we provide a critically important service to residents and businesses

in guelph and rockwood that requires that our relationships be

built on a platform of integrity, partnership and respect. we must be

accountable, transparent and trustworthy. And never before has customer

communication been so important.

Around us, the energy industry is changing dramatically. time-of-use

rates for electricity, renewable energy technologies, rapidly increasing

electricity prices, a smart grid, online communications and social media

are transforming the industry at a fast pace. we are committed to working

closely with all our stakeholders to help make sense of the complex

changes facing us all as the electricity industry evolves.

to this end, in 2011, guelph hydro formally surveyed a variety of

stakeholders—customers, employees and our shareholder—to gain insight

into company performance and input to better identify areas in need

of improvement.

recognizing the importance of government, industry and community

stakeholders, company representatives meet regularly with municipal and

provincial government officials and serve on a variety of committees and

working groups within the community and the industry.

27

vAluing custoMersthe company’s 13th annual customer satisfaction survey revealed that

customer satisfaction continues to rise with a record 93 per cent of

customers surveyed reporting satisfaction with the services provided by

guelph hydro electric systems inc. of note, this result was seven per cent

higher than the ontario average.

At guelph hydro, we understand that customer satisfaction ratings are

a result of the actions that each of our 113 employees takes every day to

serve our customers. we are proud of the dedication and professionalism

of our highly skilled engineering and operations staff who design,

construct, maintain and repair our electrical network. behind the scenes,

our back-office staff does an admirable job handling all the administrative

tasks associated with processing more than 300,000 bills a year and,

in 2011, migrating the majority of our residential and small commercial

customers to time-of-use rates.

in keeping with our focus on customer service, we believe it is important

for us to maintain an in-house call centre staffed with customer service

representatives who are well trained and have an in-depth understanding

of our business and the needs of our customers. our customer service

team created a positive experience for the customers who made more

than 51,000 calls to our offices during 2011, including nearly 12,000

customers who required move-in or move-out service.

our community outreach team and other members of our staff interacted

with customers in retail stores, community centres, seniors’ centres,

chamber of commerce meetings, public information sessions and

workshops. information was provided on time-of-use rates for electricity,

energy conservation programs and rebates and solar power.

in 2012, guelph hydro will be launching a modern, fully accessible website

that will provide customers and other stakeholders with enhanced

functionality and detailed information about the company and its services.

Customer Satisfaction levelsIndicators Guelph Hydro National ontario

Very or somewhat satisfied 93% 90% 86%

provides consistent, reliable energy

93% 90% 89%

Quickly handles outages and restores power

92% 88% 87%

A trusted and trustworthy company

87% 83% 79%

Keeps promises to customers and the community

85% 80% 77%

Courtesy of staff 89% 82% 78%

source: siMul corporation. 13th Annual electric utility customer satisfaction survey

“92 per cent of the 51,000 calls made to our local call centre in 2011 were answered within 30 seconds.”Ian MIles

ChIef fInanCIal OffICer

Guelph hydrO InC.

28

Easy OnlinE accEss tO ElEctricity cOnsumptiOn Datain 2011, the majority of Guelph Hydro customers

were migrated to time-of-use billing.

With the ability to view their daily, weekly or

monthly, off-peak, mid-peak and on-peak electricity

consumption online (in kilowatt hours or cost), Guelph

Hydro customers have the detailed information

necessary to best manage their energy use.

Visit www.guelphhydro.com for more information

about time-of-use rates for electricity.

View daily, weekly or monthly Time-of-Use data as bar charts or pie charts.

Charts showing usage (kilowatt hours) or cost (dollars) are available for various time periods.

29

“in 2011, the electricity and renewable energy industry is experiencing a major investment boom… these conditions create the most severe skills shortages and labour market challenges that the industry may have ever faced. between 2011 and 2016, electricity industry employers (in Canada) will need to recruit over 45,000 new workers—over 40 per cent of the current workforce.”power in Motion

2011 lAbour MArket

inForMAtion study –

electricity sector council

www.brightfutures.ca

vAluing eMployeesAt guelph hydro, we respect and care about each and every one of the

113 people who work for our three companies

in an effort to define and measure our corporate culture, guelph hydro

conducted an employee organizational culture survey in 2011 that was

completed by 87 per cent of our employees. results indicated that over

the past three years, progress towards building better and stronger

employee relations and a constructive culture have been substantive.

by providing employees with challenging and meaningful work,

fostering talents and providing opportunities for knowledge growth and

advancement, we have created a high-performance team environment

renowned in the industry for excellence and innovation. being honoured

with the 2011 Large Company of the Year award by the ontario energy

Association is a testament to our success in creating a performance-

oriented culture on which to build our future.

our reputation as an employer of choice will become a critical success

factor as the labour market gets tighter and the competition for talent in

the energy industry becomes stiffer.

ensuring sAFety, heAlth And wellnessSafety

At guelph hydro, the safety of our employees, our contractors and

the general public is our top priority. working with electricity can be

hazardous so implementation of an effective safety management system,

extensive training and stringent adherence by our employees to all safety

rules and regulations are essential.

we are very proud that in 2011, employees received a third ZeroQuest®

gold (outcomes) award from the infrastructure health & safety

Association (ihsA).

through our participation in the infrastructure health and safety

Association/workplace safety and insurance board (wsib) sponsored

safety groups program, the company received the maximum allowable

rebate (six per cent) on wsib premiums for our contributions to reducing

lost time injuries within our wsib rate group.

our safety efforts are not limited to our own employees. in september,

guelph hydro and three neighbouring utilities received the powerline

safety Award from the electrical safety Authority (esA). this award

recognized our collaborative work to bring the message of electrical safety

to contractors, first responders and elementary school children in the


30

health and wellneSS

skylights, windows that can be opened for fresh air, a quiet area with

water feature and the use of low emission furnishings, paints, coatings

and adhesives in the company’s leed®-certified building all contribute

to a pleasant and healthy working environment for employees.

guelph hydro’s commitment to the health and well-being of our

employees is further demonstrated by the fact that the company offers

employees annual flu vaccinations, reimbursement for fitness memberships

up to $200 and an on-site fitness centre with twice-a-week fitness classes

lead by a yMcA/ywcA coach.

to help prevent muscular skeletal injuries that account for 42 per cent of

all workplace safety insurance board claims in ontario, guelph hydro has

an ergonomics change team made up of employees. in 2011, the team

worked on 10 projects that involved performing assessments of employees’

workstations, making recommendations and correcting or purchasing the

items necessary to correct any identified problems.

2011 Safety Training Underground and Overhead Proficiency

Confined Space Entry and Evacuation Procedures

Bucket Evacuation

Pole Top Rescue and Fall Arrest

Underground Reel Trailer Orientation

Elastimold Padswitch Orientation

Defensive Driving On-Road Evaluations

Safety Health Environment and Quality Leadership

Ontario Occupational Health and Safety Act and Regulations Review

31

giving bAck to the coMMunityCorporate donationS

guelph hydro is committed to enhancing the quality of life in the

communities we serve by supporting programs that align with the

company’s core values and business goals.

in 2011, guelph hydro proudly supported community organizations and

events including the st. joseph’s health care Foundation, the rotary

club, habitat for humanity, the children’s Foundation of guelph and

wellington and the guelph and wellington united way.

employee GivinG

guelph hydro takes great pride in the time and effort our employees

contribute to help make our communities better places to live, work

and play.

in 2011, employees hosted fund-raising events including bake sales,

raffles and a summer Fun-day. they also participated in live-Free

day and the annual united way campaign. As a result, the employee

group raised over $34,000 for a number of worthy causes including:

guelph & wellington united way, canadian cancer society and

Food and Friends.

employees also generously provided $7,000 worth of christmas gifts

for 35 children and their families through the children’s Foundation

of guelph and wellington annual Adopt-a-Family campaign.

SCholarShipS

the guelph hydro electric systems inc. rick lane/corrie bridgman

Memorial Academic grant provides two $1,000 bursaries annually for

full-time students in year two of the powerline technician program

at conestoga college, one of canada’s premier polytechnic institutes

with campuses in guelph, kitchener and waterloo. to be eligible

for the bursaries, students must achieve a minimum average of

70 per cent in year one of the powerline technician program and

demonstrate financial need.

The 113 employees of Guelph Hydro generously donated $27,153 via payroll deductions to the United Way to help those less fortunate in our society. Guelph Hydro contributed $21,832 to match employee donations in the prior year for a total donation in 2011 of $48,985.

A first-annual Summer Fun Day organized by employees raised $3,230 for the Canadian Cancer Society.

32

CORPORATE GOVERNANCE

Guelph hydro inc., its board and its management are committed to the highest standards of corporate governance and business ethics. the board, through its Governance Committee, continually evaluates and enhances the Corporation’s governance and business practices through a process of self-evaluation and continuous improvement.

the corporation fully complies with the applicable requirements

concerning corporate governance. while we are not a publicly traded

company, we target compliance with the corporate governance guidelines

of canadian securities regulators.

each year, our corporate governance practices are reviewed to ensure

alignment with our corporate governance guidelines. A report on the

board’s activities in compliance with our corporate governance guidelines is

posted on our websites at: www.guelphhydroinc.com, www.guelphhydro.com

and www.envida.ca.

33

Jasmine Urisk

boArd MeMbers

Jane Armstrong Jan Carr

Brian Cowan Rob Fennell Judy Fountain

Bob Huggard Margaret Kelch Bill Koornstra

Barbara Leslie Rick thompson

34

Guelph hydro inc.Board Member title

Jane ArmstrongGovernance Committee (Chair)Human Resources and Compensation CommitteeNominating Committee

Jan Carr Finance and Audit Committee

Brian CowanBoard Vice-ChairFinance and Audit CommitteeGovernance Committee

Judy Fountain Finance and Audit Committee (Chair)

William Koornstra Finance and Audit Committee (Vice-Chair)

Rick thompsonHuman Resources and Compensation Committee (Chair)Governance Committee

Jasmine UriskBoard ChairNominating Committee (Chair)

Guelph hydro electric Systems inc.

Jane ArmstrongGovernance Committee (Chair)Human Resources and Compensation CommitteeNominating Committee

Brian CowanBoard Vice-ChairFinance and Audit CommitteeGovernance Committee

Rob Fennell Human Resources and Compensation Committee


Bob HuggardFinance and Audit CommitteeNominating Committee

Margaret Kelch Human Resources and Compensation Committee

Barbara Leslie Governance Committee (Vice-Chair)


Jasmine Urisk Board Chair, Nominating Committee (Chair)

envida Community energy inc. (formerly ecotricity Guelph inc.)

Brian CowanBoard Vice-ChairFinance and Audit Committee (Vice Chair)Governance Committee



Jasmine Urisk Board Chair, Nominating Committee (Chair)

note: biographies of board members are available at: www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca.

boArd MeMbers(as at december 31, 2011)

35

senior MAnAgeMent teAM

note: biographies of senior Management team members are available at: www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca.

* corporate officer of guelph hydro inc., guelph hydro electric systems inc. and envida community energy inc.

** corporate officer of guelph hydro inc. and guelph hydro electric systems inc.

*** corporate officer of envida community energy inc.

barry Chuddy*chief executive officerguelph hydro inc.

matt weningerdirector, Metering and conservationguelph hydro electric systems inc.

erik venemandirector, operationsguelph hydro electric systems inc.

arlen molyneauxdirector of engineeringguelph hydro electric systems inc.

Sandy mannersdirector, corporate communicationsguelph hydro inc.

dan amyotdirector, information systemsguelph hydro electric systems inc.

nicole mailloux**vice-president, human resourcesguelph hydro electric systems inc.

ron Collins***vice-president, business development and partnerships, guelph hydro inc.

Seymour trachimovsky*corporate secretaryguelph hydro inc.

kazi maroufchief operating officerguelph hydro inc.

ian miles*chief Financial officerguelph hydro inc.

36

sustainability reporting is the practice of measuring, disclosing and being

accountable to internal and external stakeholders for organizational

performance while working towards the goal of sustainable development.

guelph hydro’s goals in publishing this report are to provide our

stakeholders with information about:

• Actions taken in 2011 to ensure a safe, reliable supply of electricity, promote energy conservation and integrate sustainable business practices into our company operations

• plans to develop sustainable energy solutions in support of the City of Guelph’s Community energy Initiative and ontario’s Green energy and economy Act, and the potential impact these plans may have on the economic growth of the community

• Company performance on key environmental, social and economic elements using the Global Reporting Initiative™ (GRI), an internationally recognized standardized framework and indicators for sustainability reporting

Global reportinG initiative (Gri)

the global reporting initiative (gri) produces the

world’s most comprehensive sustainability reporting

Framework to enable greater organizational

transparency and encourage sustainability reporting

by all organizations. the framework, including the

reporting guidelines, sets out the principles and

indicators organizations can use to measure and

report their economic, environmental and social

performance. gri’s approach has three objectives:

comparability of data, transparency of information

and accountability to stakeholders. gri is committed

to continuously improving and increasing the use

of the guidelines, which are freely available to the

public at: www.globalreporting.org.

guelph hydro inc. has used the global reporting

initiative (gri) g3.1 sustainability reporting

guidelines and the gri electric utilities sector

supplement to benchmark its performance in the

area of sustainability. gri has confirmed this report

meets the requirements of gri g3.1 Application

level c.

about thiS report

37

report SCope

the range of sustainability topics reported are those that may reasonably be

considered important for reflecting guelph hydro’s economic, environmental

and social impacts or influencing the decisions of stakeholders.

reportinG prinCipleS applied to enSure report Quality

reportinG prinCipleS for defininG report Content

in order to ensure a balanced and reasonable presentation of guelph

hydro’s performance, a determination was made regarding what content the

report should cover taking into consideration the organization’s purpose and

experience, and the reasonable expectations and interests of stakeholders.

the following four principles were applied in determining content:

• MaTERIaLITY – topics and indicators that reflect Guelph Hydro’s significant economic, environmental and social impacts or would substantively influence the assessments and decisions of stakeholders.

• STakEhOLDER INCLUSIvENESS – Identification of stakeholders and an explanation of how Guelph Hydro has responded to their reasonable expectations and interests.

• SUSTaINaBILITY CONTExT – presentation of information about the organization’s performance in a wider sustainability context.

• COMPLETENESS – Coverage of material topics and indicators is sufficient enough to reflect significant economic, environmental and social impacts and enable stakeholders to assess the organization’s performance.

report boundarieS

the reporting boundaries for this report encompass the operations of:

• Guelph Hydro Inc., a non-regulated holding company

• Guelph Hydro electric Systems Inc., the regulated electricity distribution utility serving the City of Guelph and the Village of Rockwood

• envida Community energy Inc., a non-regulated alternative and renewable energy company formerly named ecotricity Guelph Inc.

All companies are headquartered in guelph, ontario, canada.

• Balance• Comparability

• Accuracy• Timeliness

• Reliability• Clarity

38

the Global reporting initiative (Gri) is an international initiative with the goal to develop and distribute guidelines for voluntary reporting on sustainable development. the guidelines are designed for organizations of any size that wish to report on their economic, environmental and social performance from a sustainable development perspective.

the gri content index provides an overview of all the disclosures in the

gri report. the index functions as a communication tool by detailing what

has been reported or why certain data has not been reported. At the same

time, the index is a navigation mechanism for report users—directing them

to the gri data of interest.

Global reportinG initiative Content indeX

More information on the GRI and

application levels is available at

www.globalreporting.org.

We welcome your feedback

on our Sustainability Report.

Comments may be addressed to:

[email protected].

The Global Reporting Initiative G3.1 Content Index for Application Level C

along with the Electric Utilities Sector Supplement Content Index are

included at the end of this document and are posted on our websites at:

www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca.

39

G3 Content indeX - Gri appliCation LEvEL C

STANDARD DISCLOSURES PART I: Profile Disclosures1. Strategy and Analysis

Profile Disclosure

Description Reported Cross-Reference/Direct Answer

1.1 Statement from the most senior decision-maker of the organization. Fully Sustainability Report - A Message to Our Stakeholders – p. 2

2. Organizational Profile2.1 Name of the organization. Fully Guelph Hydro Inc.

2.2 Primary brands, products, and/or services. Fully Sustainability Report - Corporate Profile – Inside cover

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Fully Sustainability Report - Corporate Profile – Inside cover

2.4 Location of organization’s headquarters. Fully Sustainability Report - Corporate Profile – Inside cover

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.


2.6 Nature of ownership and legal form. Fully Sustainability Report - Corporate Profile – Inside cover

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).


2.8 Scale of the reporting organization. Fully Sustainability Report - Corporate Profile – Inside cover and Fast Facts – p. 7Number of employees = 113 (See LA1)Number of operations = 1Net revenues = $153.2 millionTotal debt = $66.0 millionTotal equity = $78.3 millionQuantity of products or services delivered = 1,676,960,266 kilowatt hours of electricity delivered to customers

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

Fully Sustainability Report - Corporate Profile – Inside cover and Message to Our Stakeholders – p. 2

2.10 Awards received in the reporting period. Fully Sustainability Report - Awards – p. 5

EU1 Installed capacity, broken down by primary energy source and by regulatory regime.

Fully Emergency back-up generator - natural gas = 500 kWEastview Generating Station - landfill gas = 2,775 MWeRegulatory regime - Independent Electricity System OperatorRooftop solar facility - solar energy - 0.1 MWRegulatory regime - Not regulated

EU2 Net energy output broken down by primary energy source and by regulatory regime.

Fully Emergency back-up generator = 2,651 kWhEastview Generating Station = 11,880.8 megawatt hoursRooftop solar facility - Solar energy - 90.86 megawatt hours

EU3 Number of residential, industrial, institutional and commercial customer accounts.

Fully Sustainability Report - Fast Facts – p. 7

EU4 Length of above and underground transmission and distribution lines by regulatory regime.

Fully Overhead and underground distribution lines = Sustainability Report - Fast Facts1,036 km of 13.8 kV line plus 48 km of 8.32 kV line = 1,084 km distribution lines

EU5 Allocation of CO2e emissions allowances or equivalent, broken down by

carbon trading framework.Not Not available – Not Tracked

40

3. Report Parameters3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fully Calendar year / fiscal year 2011

3.2 Date of most recent previous report (if any). Fully 2010

3.3 Reporting cycle (annual, biennial, etc.). Fully Annual

3.4 Contact point for questions regarding the report or its contents. Fully Sandy Manners, Director of Corporate Communications, Guelph Hydro Inc.Tel: 519.837.4703 Email: [email protected]

3.5 Process for defining report content. Fully Sustainability Report - About This Report – p. 37

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Fully Sustainability Report - About This Report – p. 37

3.7 State any specific limitations on the scope or boundary of the report. Fully Sustainability Report - About This Report – p. 37

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Fully Sustainability Report - About This Report – p. 37

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

Fully Sustainability Report - Fast Facts – p. 7

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Fully No significant changes

3.12 Table identifying the location of the Standard Disclosures in the report. Fully Sustainability Report - Table of Contents – p. 1Sustainability Report - G3 Content Index – p. 39

4. Governance, Commitments, and Engagement4.1 Governance structure of the organization, including committees under the

highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

Fully Sustainability Report - Corporate Governance – p. 33Corporate Governance section of websites: www.guelphhydroinc.com, www.guelphhydro.com and www.envida.ca

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

Fully Same as 4.1

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

Fully Same as 4.1

4.4 Mechanisms for Shareholders and employees to provide recommendations or direction to the highest governance body.

Fully Same as 4.1

4.14 List of stakeholder groups engaged by the organization. Fully Sustainability Report - Stakeholder Engagement – p. 27Guelph Hydro stakeholders are defined as but not limited to: Boards of Directors, Shareholder - Guelph Municipal Holdings Inc., City of Guelph Mayor and City Council, members of City of Guelph Mayor’s Task Force on Energy, employees, union – International Brotherhood of Electrical Workers, retirees, customers, the community, partner organizations, suppliers, government bodies / agencies, industry associations, investment community, media, and potential future employees.

4.15 Basis for identification and selection of stakeholders with whom to engage. Fully Within the company’s service territory, all customers are considered stakeholders. All stakeholders that are directly affected by or directly affect Guelph Hydro Inc. are engaged through various means. Formal surveys were conducted with the Shareholder, residential customers and employes in 2011.

41

STANDARD DISCLOSURES PART III: Performance IndicatorsEconomic

Performance Indicator

Description Reported Cross-Reference/Direct Answer

ECONOmIC PERfORmANCE

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

Partially 2011 financial Statements - Companion document to Sustainability Report. Electronic copy posted on websites: www.guelphhydroinc.com, www.guelphhydro.com and www.envida.caDonations and community investments not reported separately in financial Statements

EC2 financial implications and other risks and opportunities for the organization’s activities due to climate change.

fully Opportunities are reflected in the activities of Guelph Hydro’s non-regulated business activities associated with the company’s support of the City of Guelph Community Energy Initiative detailed throughout the 2011 Sustainability Report.Risks due to physical changes associated with climate change (e.g., impacts of modified weather patterns) are considered to be minimal. In the unlikely circumstance that the company is materially affected (i.e. by a major ice storm, wind storm, tornado, etc.), costs associated with the damage caused may be recovered through rates upon approval by the Ontario Energy Board.

EC3 Coverage of the organization’s defined benefit plan obligations. fully Guelph Hydro provides a pension plan for its employees through the Ontario municipal Employees Retirement System (OmERS). OmERS is a multi-employer pension plan which operates as the Ontario municipal Employee Retirement fund (the “fund”) and provides pensions for employees of Ontario municipalities, local boards, public utilities, and school boards. The fund is a contributory defined benefit pension plan, which is financed by equal contributions from participating employers and employees, and by the investment earnings of the fund. Guelph Hydro uses defined contribution plan accounting as it is only liable for contributions to the Plan.

EC4 Significant financial assistance received from government. Not Not material

mARkET PRESENCE

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

fully Not relevant. Guelph Hydro’s entry level wages are above provincial minimum wages

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

fully No formal policy regarding buying from locally-based suppliers

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

fully No formal policy or common practice of granting hiring preference to local residents

INDIRECT ECONOmIC ImPACTS

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

fully Sustainability Report - Economic Success – p. 21-26In 2011, Guelph Hydro invested $16 million to build the Arlen Transformer Station to provide critical capacity for growth in the south end of the City of Guelph. A detailed needs assessment was performed as part of the planning for this major infrastructure investment. The needs assessment closely correlated with the City of Guelph’s master Plan for growth. This new transformer station is expected to benefit the local economy through the supply of electricity to the growing industrial parks in the south end.

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Not

AvAILABILITy AND RELIABILITy

EU6 management approach to ensure short and long-term electricity availability and reliability.

Not

EU10 Planned capacity against projected electricity demand over the long term, broken down by energy source and regulatory regime.

Not

DEmAND-SIDE mANAGEmENT

EU7 Demand-side management programs including residential, commercial, institutional and industrial programs.

fully Ontario Power Authority saveONenergyOm DEmAND RESPONSE programs offered to commercial, institutional and industrial customers, peaksaver® Residential Demand Response program offered to residential customers.

42

SyStem efficiency

eU11 Average generation efficiency of thermal plants by energy source and regulatory regime.

not

eU12 transmission and distribution losses as a percentage of total energy. not

ReSeARch And development

eU8 Research and development activity and expenditure aimed at providing reliable electricity and promoting sustainable development.

not

plAnt decommiSSioning

eU9 provisions for decommissioning of nuclear power sites. fully not applicable. no nuclear power sites.

Environmental

mAteRiAlS

en1 materials used by weight or volume. not not tracked

en2 percentage of materials used that are recycled input materials. not not tracked

eneRgy

en3 direct energy consumption by primary energy source. fully total direct energy consumption = 14,907,361.9 megajoulesnatural gas-10,116 cubic metres = 10,668,485.3 megajoulesdiesel - 75,352.8 litres = 2,761,303.4 megajoulesgasoline - 42,467.8 litres = 1,477,573.2 megajoules

en4 indirect energy consumption by primary source. fully 2,033,364 kilowatt-hours of electricity consumed supplied by the ontario independent electricity System operator. Supply mix details are posted at: www.ieso.ca/imoweb/media/md_supply.asp

en5 energy saved due to conservation and efficiency improvements. fully Sustainability Report - A message to our Stakeholders – p. 6 and environmental Stewardship – p. 15

en6 initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements.

fully Sustainability Report - A message to our Stakeholders – p. 6 and environmental Stewardship – p. 15Website: http://www2.guelphhydro.com/en/residential/conserveenergy.asp

en7 initiatives to reduce indirect energy consumption and reductions. fully Sustainability Report - A message to our Stakeholders – p. 6 and environmental Stewardship – p. 15

WAteR

en8 total water withdrawal by source. fully All of guelph hydro’s water comes from municipal sources.total water consumption in 2011 = 1,563 cubic metres

en9 Water sources significantly affected by withdrawal of water. fully not applicable

en10 percentage and total volume of water recycled and reused. fully no water recycled or reused. however, guelph hydro’s facility is leed® certified and water use is 20 per cent lower than leed® baseline measurements

BiodiveRSity

en11 location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

not

en12 description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

fully guelph hydro’s potential impacts on biodiversity in its service territory are minor. examples include: harm to wildlife that comes into contact with electrified infrastructure, emissions from fleet and facilities, construction of new infrastructure, in-service pcB/Sf6 (sulfur hexafluoride) and other chemicals used in processes.

eU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas.

not not tracked

en13 habitats protected or restored. fully none

en14 Strategies, current actions, and future plans for managing impacts on biodiversity.

fully Sustainability Report - environmental Stewardship – p. 17

en15 number of iUcn Red list species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

fully not applicable

43

Emissions, EffluEnts and wastE

En16 total direct and indirect greenhouse gas emissions by weight. not not tracked

En17 other relevant indirect greenhouse gas emissions by weight. not not tracked

En18 initiatives to reduce greenhouse gas emissions and reductions achieved. fully sustainability Report - Environmental stewardship – p. 15

En19 Emissions of ozone-depleting substances by weight. not not tracked

En20 nox, sox, and other significant air emissions by type and weight. not not tracked

En21 total water discharge by quality and destination. not not tracked

En22 total weight of waste by type and disposal method. not not tracked

En23 total number and volume of significant spills. fully none in 2011

En24 weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention annex i, ii, iii, and Viii, and percentage of transported waste shipped internationally.

not not tracked

En25 identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

not all water is discharged into municipal sewage system

PRoduCts and sERViCEs

En26 initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

not not tracked

En27 Percentage of products sold and their packaging materials that are reclaimed by category.

fully not applicable

ComPlianCE

En28 monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

fully none in 2011

tRansPoRt

En29 significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

not not tracked

oVERall

En30 total environmental protection expenditures and investments by type. not not tracked

Social: Labour Practices and Decent Work

EmPloymEnt

Eu14 Programs and processes to ensure the availability of a skilled workforce. fully the company often hires apprentices into industry specific trades, such a linepersons, meterpersons, system control operators, to ensure sustainabilty of continued resources

Eu15 Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region.

not

Eu16 Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors.

fully two policies in effect: faC-1, Employee, Contractor and Visitor access, Hsl-23, Contractor management

la1 total workforce by employment type, employment contract, and region, broken down by gender.

Partially Guelph Hydro Electric systems inc. management = 34Guelph Hydro inc. management = 7Guelph Hydro Electric systems inc. unionized = 72 total = 113 - all located in Guelph, ontario, CanadaGender statistics not reported.

la2 total number and rate of new employee hires and employee turnover by age group, gender, and region.

not

44

EU17 Days worked by contractor and subcontractor employees involved in construction, operation and maintenance activities.

Not

EU18 Percentage of contractor and subcontractor employees that have undergone relevant health and safety training.

Fully 100%

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Fully Extended health care, dental, life Insurance, long-term disability, employee assistance program, OMERS pension plan, computer purchase plan, educational assistance, wellness program.

LA15 Return to work and retention rates after parental leave, by gender. Fully 100%

LABOUR/MANAgEMENt RELAtIONS

LA4 Percentage of employees covered by collective bargaining agreements. Fully 64%

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Fully guelph Hydro does not specify minimum notice periods. However, the company complies with all legal obligations

OccUPAtIONAL HEALtH AND SAFEty

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Fully 100% of the workforce is represented in formal joint management-worker health and safety committees

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

Fully guelph Hydro tracks all incidents, including first aid level, and also tracks the potential for injury and/or loss. there was 1 lost time injury reported in 2011. Average days absent due to non-work-related accidents or illness in 2011 was 1 day.

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Not

LA9 Health and safety topics covered in formal agreements with trade unions. Fully guelph Hydro’s collective agreement with its trade union, the International Brotherhood of Electrical Workers (IBEW), is comprehensive and covers all relevant health and safety topics. All health and safety policies and procedures are reviewed by the Joint Health and Safety committee.

tRAININg AND EDUcAtION

LA10 Average hours of training per year per employee by gender, and by employee category.

Partially Average hours of trainingSenior management = 37 hoursManagement Supervisory / Professionals = 53 hourstrades / technicians / technologists = 63 hoursUnion clerical / Administration = 12 hoursgender statistics not tracked.

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Fully Educational funding program in place

LA12 Percentage of employees receiving regular performance and career development reviews, by gender.

Fully 100% of non-unionized employees receive annual formal performance and career development reviews 100% of unioned employees receive formal reviews when progressing through job rate steps

DIvERSIty AND EqUAL OPPORtUNIty

LA13 composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Not

EqUAL REMUNERAtION FOR WOMEN AND MEN

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Fully guelph Hydro complies with the Pay Equity Act

45

Social: Human Rights

Investment and procurement practIces

Hr1 percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

Fully not applicable

Hr2 percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

Fully not material

Hr3 total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Fully 100% of employees trained on Bill 168total hours of training = 400 hours

non-dIscrImInatIon

Hr4 total number of incidents of discrimination and corrective actions taken. Fully none

Freedom oF assocIatIon and collectIve BargaInIng

Hr5 operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

Fully none

cHIld laBour

Hr6 operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour.

Fully none

preventIon oF Forced and compulsory laBour

Hr7 operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour.

Fully none

securIty practIces

Hr8 percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

Fully not applicableno security personnel

IndIgenous rIgHts

Hr9 total number of incidents of violations involving rights of indigenous people and actions taken.

Fully none

assessment

Hr10 percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

Fully Zero

remedIatIon

Hr11 number of grievances related to human rights filed, addressed and resolved through formal.

Fully Zero

Social: Society

local communItIes

eu19 stakeholder participation in the decision making process related to energy planning and infrastructure development.

not

eu20 approach to managing the impacts of displacement. Fully not applicable

46

SO1 (EUSS) Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Fully Not applicable

SO1 (G3.1) Percentage of operations with implemented local community engagement, impact assessments, and development programs.


EU22 Number of people physically or economically displaced and compensation, broken down by type of project.


SO9 Operations with significant potential or actual negative impacts on local communities.

Fully None

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Fully None

COrrUPtiON

SO2 Percentage and total number of business units analyzed for risks related to corruption.

Fully 100% - three companies

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.

Fully 100% of employees are trained in policies and procedures that relate to anti-corruption including the Code of Ethics and Purchasing Policy

SO4 Actions taken in response to incidents of corruption. Fully No issues

PUbliC POliCy

SO5 Public policy positions and participation in public policy development and lobbying.

Fully the company does not participate in formal lobbying

SO6 total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Fully None

ANti-COmPEtitivE bEhAviOUr

SO7 total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes.

Fully None

COmPliANCE

SO8 monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Fully None

DiSAStEr/EmErGENCy PlANNiNG AND rESPONSE

EU21 Contingency planning measures, disaster/emergency management plan and training programs, and recovery/restoration plans.

Fully Emergency Operations Plan, business Continuity Planning manual, training of key personnel, participation in emergency planning exercises

Social: Product Responsibility

CUStOmEr hEAlth AND SAFEty

Pr1 life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Fully Projects undergo an Environmental Assessment process.Guelph hydro constantly tests and audits the safety and reliability of its assets which deliver electricity (poles, wires, transformer, meters, etc.) to customers.

Pr2 total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Fully None

EU25 Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases.

Fully None

47

Product and service labeling

Pr3 type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

not

Pr4 total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

Fully none

Pr5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Fully the ontario energy board requires that guelph Hydro report on a variety of customer service measures. annual reports are posted on the ontario energy board website at www.ontarioenergyboard.ca.guelph Hydro conducts periodic customer satisfaction surveys administered by a third party consulting firm. this is a company initiative and not one that is mandated by the ontario energy board or the ontario government. the most recent survey was conducted in June 2011. the methodology is to randomly select customers to complete a telephone interview of standard questions.

Marketing coMMunications

Pr6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Fully the company adheres to all laws, standards and voluntary codes in its marketing and public relations activities. the director of corporate communications is accredited in Public relations and is required to adhere to the code of ethics of the canadian Public relations society - www.cprs.ca/aboutus/code_ethic.aspx.

Pr7 total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Fully none

custoMer Privacy

Pr8 total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Fully none

coMPliance

Pr9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Fully none

access

eu23 Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services.

Fully the company is committed to providing accessible, quality service to all customers. guelph Hydro participates government programs to assist low income customers and works closely with social service agencies to ensure that low income customers have access to required support services.

eu26 Percentage of population unserved in licensed distribution or service areas. Fully Zero

eu27 number of residential disconnections for non-payment, broken down by duration of disconnection and by regulatory regime.

Fully < 48 hours = 81 customers48 hours to 1 week = 29 customers1 week to 1 month - 21 customers1 month to 1 year = 37 customers> 1 year = none

eu28 Power outage frequency. Fully saiFi - system average interruption Frequency index = 2.453 (includes “loss of supply” figures.)sustainability report - Fast Facts – p. 7

eu29 average power outage duration. Fully saidi - system average interruption duration index = 2.025 (includes “loss of supply” figures.)caidi - customer average interruption duration index = 0.826 (includes “loss of supply” figures.)reliability performance or index of reliability = (# of hours in the year - saidi) / (# of hours in the year) = 0.999769 = 99.9769%average amount of time customers were without power = caidi * 60 = 49.56 minutessustainability report - Fast Facts – p. 7

eu30 average plant availability factor by energy source and by regulatory regime. not

Provision oF inForMation

eu24 Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services.

Fully guelph Hydro is committed to providing accessible, quality service to all customers the company’s accessibility practices are outlined on the company website at: www.guelphhydro.com

48

Design by: eSolutionsGroup, Waterloo

Global Reporting Initiative™ is a trademark of the Global Reporting Initiative.

ZigBee® trademark is owned by ZigBee Alliance, Inc.

peaksaver® is a registered trademark of Toronto Hydro Corporation. Used under license.

ZeroQuest® is a registered trademark of the Electrical and Utilities Safety Association of Ontario.

saveONenergyOM FRIDGE AND FREEZER PICKUP saveONenergyOM HEATING AND COOLING INCENTIVE saveONenergyOM RETROFIT PROGRAM saveONenergyOM SMALL BUSINESS LIGHTING saveONenergyOM DEMAND RESPONSE Subject to the terms and conditions found at www.saveonenergy.ca. Subject to change without notice.

OM Official marks of the Ontario Power Authority. Used under licence.

Guelph Hydro Inc. 2011 Financial Statements are available on our websites at: www.guelphhydroinc.com www.guelphhydro.com www.envida.ca

Printed copies may be requested by sending an email to: [email protected]

GUELPh hYDRO INC.395 Southgate DriveGuelph, ontario N1G 4Y1tel: 519.822.3017email: [email protected]:www.guelphhydroinc.comwww.guelphhydro.comwww.envida.ca

2011 sustainability report

Documents

city of guelph

strategic approachreliability

nonregulated companya

environment air

fast facts

subsidiary operating

daytoday activities

public trust