delivering shared local value 2014 annual report › downloads › epc_2014_annualreport.pdf ·...

Delivering Shared Local Value2014 Annual Report

essexpower.ca

We are in the business of creating value - for our Customers, Employees, Stakeholders And Communities.

What does Creating Shared Value mean to Essex Power?

At Essex Power our goal is to generate profit while addressing these issues. Creating Shared Value is about weaving social need into the fabric of business and creating new ways of doing things. It is not about intention, but measureable impact in solving identified problems. At Essex Power, we are not only embracing new technologies to overcome future challenges but we are creating local solutions to these problems. In return it is generating local jobs, timely solutions to our customers and efficient service.

It is rewarding to be able deliver this message on our 2014 corporate results as we continue to demonstrate to our stakeholders the value of a “local and accountable” energy provider to the communities and customers we serve. Essex Power’s delivery of solutions to its customer expands far beyond the “poles and wire” infrastructure service. We have a long history of embracing and successfully executing new technologies. We have proficiently implemented smart meters, automated switching equipment, smart outage detection sensors and an overlay of smart grid intelligence to help identify outages, facilitate faster restoration times and communicate more effectively with our customers. Essex Powerlines, Essex Power’s regulated Local Distribution Company, is currently focused on opportunities to expand our service beyond the 30,000 customers we currently serve in Amherstburg, LaSalle, Leamington and Tecumseh. Over the past 10 years, Essex Powerlines has made close to $35 million in capital improvements to modernize our infrastructure, improve reliability and quality of service to our customers. Essex Powerlines is focusing on utilizing 21st century technology to maximize efficiency of the day to day operation of the grid for both load and embedded generation customers.Tomorrow’s distribution grid no longer operates like a “one-way street” but rather a complex and very busy ”two-way highway” where small and larger loads along

CEO & Board Chair Message

with embedded distributed generation of all types are connected side by side to the grid.

Regional distribution grid planning has become a very integrated process as we need to balance local load growth with offsetting new local generation as well as the potential for new storage technology. With larger penetrations of intermittent renewable generation, storage and demand response programs will become essential elements to help balance the load and generation regional demands. In fact, customers both large and small, may share a dual role as both a load and a generator at different times within a given day and that will vary throughout the calendar year. Essex Power is not just preparing its local distribution grid infrastructure for these 21st century technologies, it is actually developing the technologies to manage and integrate them. Through our unregulated business units, Essex Energy and Utilismart, we successfully deployed “BIG DATA” meter data solutions to support the growth of Smart Meters to a hundred plus client base of utilities across North America. We are now launching Smart Grid Intelligence. Through very sophisticated technologies called HealthMap and SmartMap, we are able to make this very complex task of managing a network of distributed generation, load and storage into a network level visual tools that make day to day grid management manageable and effective.

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Essex Power’s ability to remain focused on local value and service excellence while still eager to explore and realize the opportunities with new technologies have created a strong portfolio of both revenue growth and strong returns to our shareholders. Essex Power was proud to successfully issue a $1.544 million dividend in 2014 and the accumulative four year dividend stream was $5.945 million creating significant local value and opportunity for reinvestment in the communities we serve.

Equally important to Essex Power, is the priority that our customers receive value for service and at the most affordable rates possible. In fact, our customers have seen our portion of the overall bill as a percentage of their overall bill cost goes down. Essex Power remains committed to ensuring we help our customers manage these increased costs through pro-active Conservation and Demand management programs.

In closing our remarks on our successful 2014 year, we realize that our future success relies on Essex Power embracing the evolving landscape of the distribution sector within Ontario and capturing the ever growing opportunities in new technology that is changing the global face of how electricity may be delivered in the future. Southwestern Ontario is the “gateway” to Canada and we are proud to serve the people and industry that make it such a dynamic and innovative environment.

Raymond J. Tracey P.EngC.E.O. & President , Essex Power Corporation

Gary McNamaraChair , Essex Power Corporation

MISSION

Essex Power Corporation is a dynamic energy company that provides safe, reliable and economical energy supply and services to our customers. Our commitment to innovation, performance management and leading by example has built the

foundation at Essex Power and our affiliates to establish a diverse set of energy products and services that are valued by our customers. At Essex Power, “Your Power is Our Priority.”

Our Corporate Philosophy

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VISION

Essex Power Corporation’s vision is to be an Energy Provider that utilizes “best in class” people, processes, and technology to lead the market place in sustainable energy solutions. Our customers will receive the greatest value by integrating an

economic and environmental balance to the products and services we will deliver to them. As an Energy Provider we will be a community leader in ensuring that environmental stewardship is a vital component of our services to increase customer

awareness of proper energy utilization and management.

Total Electricity Customers 28,640Total Electricity Consumed 479,301,338 kWh

Number of Residential Customer Accounts 26,471Total electricity consumption 242,521,434 kWh

Number of Commercial and Industrial Accounts 2,169Total electricity consumption 236,779,904 kWh

Common Dividends for year 2014 2013 2012 2011

Amherstburg 220,317.00 213,900.00 199,640.00 199,640.00

LaSalle 513,712.00 498,750.00 465,500.00 465,500.00

Leamington 402,472.00 390,750.00 364,700.00 364,700.00

Tecumseh 408,498.00 396,600.00 370,160.00 370,160.00

Total Common Dividends 1,545,000.00 1,500,000.00 1,400,000.00 1,400,000.00

Special Dividends (GS) for year 2014 2013 2012 2011

Amherstburg 17,804.00 17,804.00

LaSalle 17,729.00 15,870.00 14,542.00

Tecumseh 26,176.00 26,176.00 26,176.00 26,176.00

Total Special Dividends 61,709.00 59,850.00 40,718.00 26,176.00

2014 Dividend to its Shareholders and the Accumulative Dividend from 2011-2014

2014 Fast Facts

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Total Assets $60,904,217

Overhead lines 192 kmUnderground cable 269 kmTransformers 3046Poles 6214Fleet Vehicles 24

Summer Peak Demand 122,201 kWWinter Peak Demand 85,153 kW

Essex Energy Highlights

In 2014, Essex Energy developed and constructed over 1,300kW worth of solar PV generation facilities throughout the province.

As of the end of 2014 the cumulative total of clean, emission-free energy that has been produced by renewable generators developed by Essex Energy surpassed 7.1 GWh including over 130 sites!

Essex Energy has signed collaborative agreements in the Muskoka Region in an effort to reach carbon neutrality by integrating solar technology at three major quarries in that region. The sites will integrate 1.8 MW of solar PV generation and will be constructed in 2015/2016.

Essex Energy continued its renewable energy research and development collaboration with the University of Windsor with a project in 2014 that resulted in an ASME publication entitled “Assisted Turbulence Convection Heat Transfer For Cooling Photovoltaic Cells”. The publication is a great accomplishment and is a testament to the power of collaboration between academia and industry.

Essex Energy Employees, Steve Ray and Andy Smyrnis, snow shoeing to solar site location.

Utilismart Highlights Utilismart was successful in achieving Information Security Management System Registration (ISMS) ISO 27001 Certification, which solidifies their commitment to Information Security and Privacy of Customer Data.

Utilismart also launched a unique and evolutionary utility Distribution Management System Product named SmartMAP. SmartMAP has been well received in the market and provides tremendous value to Utilities that have deployed Advanced Metering Infrastructure (AMI).

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To deliver on our commitment to Creating Shared Value, we need to assess all aspects of our business from environmental to social to economic performance. To ensure we are staying true to our commitment, we have chosen to use an international standard, known as the Global Reporting Initiative (GRI), to report on our sustainable business practices.

This is Essex Power’s third filing with the GRI framework and we are proud to say that we have improved in a number of areas since our adoption of the framework. We recognize that sustainability reporting is a continual process, and we are happy with our improvement thus far but are not fully satisfied! In 2015, we will continue to build on our current successes and improve upon our weaknesses.

Report Scope & Boundaries

Our regulated electricity distribution company, Essex Powerlines, is accountable for providing a safe, reliable and cost effective supply of electricity to the municipalities of all our stakeholders and communities. The scope of this report and GRI submission includes all of the Essex Power Group of Companies.

To measure our success and progress in sustainability, we have defined key areas that we see of great importance to achieving success. Essex Power has made sustainability a core foundation for all decision making and has initiated best practices for managing operational and environmental risk. This report will analyze and measure Essex Power’s performance within the three pillars of sustainability.

• Environmental stewardship is evaluated by our success in energy conservation, renewable energy investment, waste management, and environmental risk mitigation of our operations.

• Social responsibility is evaluated by how we ensure the safety and wellness of people including our employees, our contractors, and our communities 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 Performance is evaluated by the value we create for our stakeholders while facilitating the economic growth of the communities we serve.

OUTPUT

OUTPUT

OUTPUT

ReportApplication Level

Report on:1.12.1 - 2.103.1 - 3.8, 3.10 - 3.124.1 - 4.4, 4.14 - 4.15

Not Required

Report on a minimum of10 Performance Indicators,including at least one fromeach of: Economic, Socialand Environmental.

Repo

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ally A

ssure

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Repo

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d

Repo

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Report on a minimum of20 Performance Indicators,at least one from each of:Economic, Environmental,Human rights, Labour,Society, ProductResponsibility

Report on each core G3 andSector Supplement* Indicatorwith due regard to theMateriality Principle byeither: a) reporting on theIndicator or b) explainingthe reason for its omission.

*Sector supplement in �nal version

Management ApproachDisclosures for eachIndicator Category

Management ApproachDisclosures for eachIndicator Category

Report on all criteria listedfor Level C plus:1.23.9, 3.134.5 - 4.13, 4.16 - 4.17

Same as requirement forLevel B

Stan

dard

Dis

clos

ures

G3 Pro�leDisclosures

G3 ManagementApproach

Disclosures

G3 PerformanceIndicators &

Sector SupplementPerformace

Indicators

The Global Reporting Initiative G3.1 Content Index for Application Level C along with the Electric Utilities Supplement Content index are available on our website at: www.essexpower.ca

We welcome your feedback on our Sustainability Report. Comments can be directed to: [email protected]

Assessing Our Balance Sheet Beyond Dollars and Cents

Lasalle$36,321.26 total incentives

25.18 kw saved493,452.486 kWh saved

powering 136 homes for a year

Leamington$63,515.90 total incentives



Tecumseh$258,879.52 total incentives



Amherstburg$26,718.00 total incentives



Improving Local Businesses, Sharing Energy Savings

Essex Power offered energy retrofit programs to local businesses that injected over $1,683,000 into the economy, representing investments made by local residents, businesses and industry in conservation. In addition, these programs have helped returned $311,977 to our program participants.

Conservation & Demand Management A wide range of initiatives to reduce electricity consumption and peak electricity demand has been introduced by Essex Power as part of a four-year program mandated by the Ontario Energy Board and launched in 2011. Over 5000 residential customers took part in various energy saving programs offered by Essex Power in 2014.These programs include:

• free pickup of inefficient refrigerators or freezers• incentives on eligible replacement central heating system• ENERGY STAR® qualified central cooling systems and hotwater heaters• Discount coupons for the purchase of LED lights and other energy-efficient products

Since the beginning of the Home Assistance Program more than 600 qualifying low-income homeowners and social housing providers received financial assistance to install energy saving devices such as programmable thermostats, weather stripping and insulation.

Education and training play a key role in Essex Power’s conservation and demand management programs. In June 2014, Essex Power worked with other industry members to hold the first of what will become the annual saveONenergy Show & Symposium. Attended by more than 80 vendors and 300 people, the show provided information to institutional, commercial, municipal, industrial and agricultural customers on the suite of saveONenergy incentive programs offered by Ontario Power Authority through each Local Distribution Company (LDC).

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Safety is Our First Priority. The safety of our employees, contractors, customers and the public is paramount. We will not undertake any activity without proper safety procedures, equipment and training being in place. We meet or exceed all health, safety, and environmental regulatory requirements. All departments, including senior management and union representatives, actively participate in our Joint Health & Safety Committee to ensure we are making sound work place safety decisions. Our solid track record on lost time due to injury solidifies our reputation for being an industry leader in safeguarding our employees, customers and communities

In 2014 the Essex Power Wellness Committee attended “The Gord Smith Healthy Workplace Awards” ceremony, sponsored by the Go For Health and the Windsor Essex County Health Unit. We are very pleased and proud to announce that Essex Power Corp received the “PLATINUM” award, given to companies who demonstrate a commitment to improve the health and wellness of all employees. We are proud of our Wellness Committee members for taking the lead in organizing wellness initiatives, and to all employees for their participation and to our senior leaders that support these activities..

Youth in Community Fund 2014 was an exciting time for Essex Power as we launched our inaugural year of the Essex Power Corporation Youth in Community Fund. $40,000 was divided evenly amongst the four municipalities in an effort to invest in our young people. The events and programs have elements of education, fitness, art/cultural, or social responsibility. Essex Power is proud to see the program bring so many smiles and great opportunities for our young people. At Essex Power we truly believe that our youth are the key to our future. Investing in young people, is an investment in our future.

“The Essex Power Energy Zone has been a great addition to our community. It has provided Amherstburg and community groups a wonderful space to facilitate their recreational programming. The Essex Power Energy Zone has empowered our youth to become involved in positive activities that encourage them to “shine their light” in our communities!”

Rick Daly, Manager of Business Development and Programs Town of Amherstburg

“Thank you for all of your work and effort on this very important program. There are so many times I wish everyone could see all the smiles on those children and families’ faces that participate in the Essex Power supported activities. This program is unique in its kind as it provides flexibilities while also enough structure to ensure the money is going to places that are creating value in our communities.”

Terry Fink, Director, Department of Culture and Recreation, Town of LaSalle

“On behalf of the coaches, parents and players of Tecumseh Minor Baseball Association, we are grateful to the Essex Power Youth in Community Fund. The generous financial support of our organization helps support many young people of our community by, providing the opportunity to play ball by helping to offset the cost of registration”

Rod Munro, Vice President, Tecumseh Minor Baseball Association.

“We are so appreciative of the Youth in Community Fund as it gives us the tools to empower young leaders in our communities to connect with other young people and participate in programs that matter to them the most. We were pleased to host a Drug Awareness Fall Festival at the National Sports Day in Canada Event and have the opportunity to feature two guest speakers: Canadian Bobsled Olympian Suzanne Gavin Hlady and former NHL Jack Valiquette # 8 Toronto Maple Leafs hockey player who encouraged the youth to say No to drugs and take part in sports instead. This Youth in Community Fund has allowed our Mayor’s Youth Advisory Committee to share a strong & positive message with our community youth!”

Brenda Fischer Supervisor of Marketing, Events & Customer Service Leamington Kinsmen Recreation Complex Staff Liaison to the Mayor’s Youth Advisory Committee

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Community Involvement

The SalvationArmy ChristmasKettle Campaign

St. Andrew’sLaSalle

Food Bank

TecumsehGoodfellows

Leamington& DistrictMinisterialFood Bank

AmherstburgFood &

FellowshipMission

Leamington DistrictMemorial HospitalPhysician RecruitmentFoundation

Community Eventsand Campaigns2014

Leamington DistrictMemorial HospitalErie Shores Hospice

GolfTournament

My Safe Work

Hotel Dieu GraceHealthcare’s Triple P

Positive Parenting Program

19th AnnualCharity Golf Classic

in support of Maryvale“Help the Children”

BloodDrive

General AmherstPost-SecondaryTechnologyBursary

2014

WINEFESTIVAL

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2014 CORPORATE OWNERSHIP STRUCTURE

Board of Directors

Executive TeamRaymond J. Tracey

Joe BarileStephen Ray

John Avdoulos

*1 Member Board with Powers Divested to Holdco Board of Directors

Gary McNamara, ChairWilliam WarkWayne HurstFrank C.RicciMark CarrickTom Burton

John PatersonJoe Graziano

Board of DirectorsWayne Hurst, Chair

Mark CarrickRobert Pula

(Independent Member)

(LDC regulated)

General ManagerJoe Barile

Board of Directors*Frank C. Ricci, Chair

(unregulated)

General ManagerSteve Ray

ThirdParties

CONTRACTS FOR SERVICES

Board of DirectorsJoe Graziano, Chair

Tom BurtonJohn Paterson

(unregulated)

General ManagerSteve Ray

Board of DirectorsMarie Capagna, Chair

Raymond J. TraceyGary McNamara

Joe GrazianoPresident

John Avdoulos

(Holdco) President & C.E.O. Raymond J. Tracey

MasterService

Agreement forresources for

street lights andother third party

projects.

SHAREHOLDERS

Board of DirectorsCommitted to strong corporate governance and accountability, the Board of Directors brings a depth of experience to governing Essex Power Corporation in the best interests of customers and the community.

Essex Power Corporation is a dynamic energy company that provides safe, reliable and economical energy supply and services to our customers. Our commitment to innovation, performance management and leading by example has built the foundation for Essex Power and our affiliates to establish a diverse set of energy products and services that are valued by our customers.

Essex Powerlines Corporation, a regulated company, provides reliable and safe power to over 28,000 residents and businesses in Amherstburg, LaSalle, Leamington and Tecumseh. Essex Powerlines provides safe, reliable and economical electrical distribution and service to 28,000 customers within four municipalities of Essex County, and has system voltages of 4.16 kV, 8 kV and 27.6 kV. At Essex Powerlines, our corporate vision is to provide the communities of Amherstburg, LaSalle, Leamington, and Tecumseh with safe, reliable, and economical energy supply and service. The foundation to empower our vision is based on a dynamic and progressive workforce that will be industry leaders in providing ‘best of class’ business solutions in the delivery of service to our customers.

Since 2000 EPS has been a key streetlight service provider for our communities. Being ISO 9001:2008 certified our Quality Management System ensures proper business operation utilizing best practices. Essex Power Services was registered with IESO as a MSP (Metering Service Provider) in 2012 and currently maintains a total of 23 wholesale metering installations.

Essex Energy Corporation is a dynamic group of more than 20 engineers, business professionals, certified energy managers and LEED accredited individuals ready to provide your organization with a suite of energy management services. Among a wide array of other energy sector related activities, Essex Energy is directly responsible for the reduction of more than 252,000,000 lifecycle kWh through our conservation initiatives and has built some of Canada’s largest solar photovoltaic rooftop systems Essex Energy is uniquely positioned to assist you in realizing your own triple bottom line.

Since 2002, Utilismart has been the industry leader in providing settlement services to utilities throughout Ontario. Our services are built on industry expertise and an in-depth understanding of both the settlement processes in the marketplace and the needs of the customer. Our hosted solutions offer customers an economical, efficient settlement service that has built-in reporting and analysis tools. Our knowledge in this area allows for seamless integration into CIS, Financial, and other customer systems requiring settlement data.

As a Canadian company based in Ontario, WattsWorth offers a variety of energy management services to participants in the Ontario market. Our clients include large industrial/commercial companies, electric utilities, electricity generators and municipalities. WattsWorth has over 1-billon kWh consumed annually. In addition to technical expertise and a highly specialized and robust infrastructure, WattsWorth makes a commitment to listen to our clients’ requirements and tailor solutions that respect their objectives. WattsWorth has a business manner that reflects high standards of professionalism, attention to detail, and a logical approach to problem solving.

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Essex Power 2014 Financial Statements are available on our website:www.essexpower.ca

Printed copies of this report may be requested by send-ing an email to: [email protected]

Essex Power Corporation2199 Backacre Drive Suite 2 Oldcastle, Ontario N0R 1L0

Phone: 519-946-2002 Fax 1-866-291-5317 Email: [email protected] www.essexpower.ca

2014 Essex Power’s 2014 Annual Report and Financial Statements are printed on recycled paper.

delivering shared local value 2014 annual report › downloads › epc_2014_annualreport.pdf ·...

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