‘ NO ONE LEFT BEHIND’ IN TOUGH ECONOMIC TIMES ///18
DISTRIBUTOR THE
WINTER 2020-21
POWERING LOCAL COMMUNITIES & ECONOMIES
Agreement #: 43526108
Ontario’s Hydro Utilities Play Vital Economic Role
EDA Events: A Look Ahead to 2021
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Minister Rickford thanks distributors for pandemic response ///10
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ON THE COVER
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After 12,000 labour hours for electrical construction and design, Ottawa’s Elgin Street has been reimagined for the 21st century, in just one example of how local electrical utilities play a key role in shaping their local communities and economies.
CONTENTS UP FRONT 4 Message from the Chair 6 The Year That was at EDA 8 Sector Scan 10 Minister Thanks LDCs
POWERING LOCAL ECONOMIES 12 Local Utility Plays Crucial Role in Making Rapid Transit a Reality 14 Collaborating with Businesses and Communities 16 Powering the Nation’s Capital from A to Z 18 Standing in Solidarity with Customers 20 Who was that Masked Superhero?
SPECIAL FEATURE 22 Burlington Hydro Marks 75 Years
INDUSTRY INSIGHTS 25 EDA Advocacy in Action 26 Ask the Expert: Grant Thornton 28 Ask the Expert: Ameresco Canada 30 EDA Event Series www.eda-on.ca
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Winter 2020-21
The Electricity Distributors Association (EDA) publishes The Distributor for its members and stakeholders. All rights to editorial content are reserved by the EDA. No article can be reproduced in whole or in part without the permission of the EDA.
MESSAGE FROM THE CHAIR
PUBLISHED WINTER 2020-21 FOR: Electricity Distributors Association (EDA) 3700 Steeles Avenue West, Suite 1100 Vaughan, ON L4L 8K8 www.eda-on.ca
EDA STAFF CEO’S OFFICE Teresa Sarkesian, President and CEO Natasha Galati, Executive & Administrative Assistant
POLICY, GOVERNMENT AND CORPORATE AFFAIRS Ted Wigdor, VP, Policy, Government and Corporate Affairs Derek Nardone, Manager, Corporate and Government Affairs Kathi Farmer, Senior Regulatory Affairs Advisor Abdul Muktadir, Senior Policy Advisor Brendan McClughan, Policy and Government Affairs Specialist
COMMUNICATIONS AND MEMBER ENGAGEMENT Andrew Temes, VP, Marketing, Communications and Member Relations Marica Macura, Director, Member Relations and Events Sari Maritzer, Communications Specialist Dianna Merlocco, Events Specialist Lesia Kostecki, Marketing and Member Relations Specialist Christine Mack, Events Specialist
FINANCE AND ADMINISTRATION Tamara Orlova, Chief Financial Officer Arlene Klemmer, Accounting Clerk Matthews Joseph, Senior IT Analyst Lina Parisi, Receptionist Chrissan Pascal, Office Services Assistant
FOR ADVERTISING INQUIRIES Neil Ewen, neil@titus.one
FOR EDITORIAL INQUIRIES: Sari Maritzer, smaritzer@eda-on.ca
DOVETAIL COMMUNICATIONS PUBLISHER www.dvtail.com Please return undeliverable copies to: Electricity Distributors Association (EDA) 3700 Steeles Avenue West, Suite 1100, Vaughan, ON L4L 8K8 PUBLICATIONS MAIL AGREEMENT NO. 43526108
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EDA members do much more than simply move electrons through an increasingly complex grid. What they deliver to customers is the lifeblood of the communities we serve. Electrical supply has become so dependable that it’s easy to lose sight of its impact. Electricity brings vibrancy to our communities, is the foundation of commerce and production that fuel our economy, and has been the cornerstone of innovation over the last century. In this issue of The Distributor we focus on ways in which Ontario’s distribution utilities power local communities and economies – and the depth and breath of these efforts are truly impressive. EDA member utilities are instrumental in enabling a decarbonized economy through electrification. These efforts will allow for a more efficient and sustainable transportation system, the establishment of new enterprises and industries, and will ultimately help to launch smart and interconnected communities. In the course of these efforts, local distribution companies also provide significant economic benefits directly to the communities we serve. Estimates compiled in support of the EDA’s Power of Local Hydro campaign indicate that our utility members directly employ 11,000 people; make annual capital investments of $2.3 billion; contribute hundreds of millions of dollars through dividends; and provide significant financial and in-kind contributions to local philanthropic initiatives. It’s no wonder why LDCs and our full supply chain were designated essential services in the first wave of COVID-19. While the pandemic was of course unexpected, you’ll find overviews in this issue of The Distributor of how our sector responded – to support those who were most vulnerable and to help minimize the impacts of the pandemic on the communities we serve. Our sector has a lot to be proud of, and I have no doubt we will continue to help power local economies and meet collective challenges, together.
Sincerely,
Ysni Semsedini
President & CEO, Newmarket-Tay Power Chair, Electricity Distributors Association
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Every community needs an ally The not-for-profit health and social service agencies that support our communities are doing their best to help those in need. We provide funding to a wide range of community support organizations to help foster good health, diversity and sustainability wherever we can. Learn more about our commitment at alectrautilities.com/AlectraCARES
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AlectraNews
AlectraNews
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500+
Council and Committee Participants
35+
Policy Submissions (Q1-Q3)
Over 2,400 Live & Virtual Event Attendees
“ I think that being able to collectively go to government, go to our regulators, go to our stakeholders with one voice is very, very powerful and it should not be understated. If you’re an electric distribution utility in Ontario membership in the EDA as far as I’m concerned is a must.” – Max Cananzi, President, Alectra Utilities
THE YEAR THAT WAS
EDA RELEASES 2020 YEAR IN REVIEW VIDEO & DIGITAL GUIDE
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020 isn’t quite over yet, but Ontario’s local distribution companies have navigated a challenging year and the EDA has been focused on supporting our members. Together and collectively, we believe we have very effectively served the needs of our sector’s customers. We’re pleased to have released a Year in Review Video and more detailed Digital Guide, highlighting a number of key achievements over the course of 2020, and featuring reflections from our President & CEO, Board Chair, and select LDC Members.
While our sector’s pandemic response was the biggest single driver of our advocacy and other activities during 2020, we continued to deliver on many existing policy priorities and member services. A recent independent assessment, by one of the world’s largest accounting firms, has quantified EDA member value as a 9:1 return on dues.
You can both watch the video and view the digital guide at www.eda-on.ca/About-US/Year-in-Review or via this QR code.
OVER 900 Attendees on Complimentary Member Webinars
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135,000+ Digital Media Impressions
400+
Print & Digital Publication Touchpoints with Members
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Moving forward together.
At Hydro One, we’re pleased to offer support and assistance to those in need during these challenging times through our Pandemic Relief Program. Together we’ll continue to move forward, as we look to a brighter tomorrow. Discover how at www.HydroOne.com/PandemicRelief The Hydro One & Design trademark is owned by Hydro One Inc.
SECTOR SCAN
WHAT’S HAPPENING AROUND THE DISTRIBUTION SECTOR Former EDA Chair Cananzi Announces Retirement
Cananzi (left) is seen at February's EDA Awards Gala along with Alectra colleagues, Caroline Karvonen and Dan Pastoric.
Max Cananzi, President, Alectra Utilities, announced his pending retirement earlier in the fall. The former EDA chair and long-time director has had a noteworthy career in the energy and utilities sector. Max was a key participant in building one of Ontario’s most successful energy retailers and in facilitating the merger of three of the province’s largest utilities. The EDA board, membership, and staff wish him an enjoyable retirement and success in his future endeavors.
Glen McAllister Joins EDA Board of Directors
Glen McAllister, Chief Financial Officer, InnPower, has been appointed to the EDA board of directors as Georgian Bay District representative. McAllister replaces long-time Director Ruth Tyrrell who retired this year from Orangeville Hydro. The rest of the slate of 2021-2023 district directors will be confirmed by the membership at the EDA’s 2021 AGM in February.
EDA Members Win at ESA’s Ontario Electrical Safety Awards
Peter Gregg Heads to Nova Scotia Power
Following a rigorous Canadian search that attracted a long list of high-calibre internal and external energy executives, Peter Gregg was selected as the next President and CEO of Nova Scotia Power Inc. The utility noted in a statement that the long-time Ontario electricity industry executive brings deep experience in the energy sector with a focus on energy efficiency, renewables and innovation.
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The Electrical Safety Authority (ESA) held its first virtual annual meeting and Ontario Electrical Safety Awards. Awards were presented in the categories of Worker Safety, Consumer and Home Safety, and Powerline Safety, along with a newly created Licensed Electrical Contractor Recognition Award and a Chief Public Safety Officer Special Recognition Award. Among the 2020 award recipients were: Worker Safety, PUC Services Inc., for its dedication to keeping workers and the community safe during the COVID-19 pandemic; and Consumer and Home Safety, Hydro One Networks Inc., for its innovative approach to educating consumers on an important safety issue through the “2019 Power Challenge”. THE DISTRIBUTOR
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SECTOR SCAN
INDUSTRY QUICK Energy+ donated $20,000 to the Brant
United Way and the Waterloo United Way COVID-19 community response fund. The company matched donations made by employees and board members.
North Bay Hydro funded the planting of 37 large tree species in three locations across its city.
Hydro One donated $25,000 to the
Markham Stouffville Hospital for ventilators, and in partnership with GlobalMedic delivered 575 critical aid kits to the Wiikwemkoong Unceded Territory.
HIGHLIGHTS Hydro Ottawa
informed its customers on how the utility continually works with city planners and developers in anticipation of increased electricity demands and loads.
Alectra’s employees and
customers stepped up for their communities and, with two separate campaigns, raised
over $140,000
for Feed Ontario and its member food banks, which will provide 420,000 meals to the people most in need.
Oshawa Power launched the Compassion Fund to assist
Residential Customers who are having difficulty paying their bills.
Elexicon Energy donated $5,000
to four food banks to help support the community agencies amid the ongoing COVID-19 crisis.
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Many utilities also made it easier for their customers to access a host of useful data. Oshawa Power, for example, launched its new interface, MyOshawaPower, while ENWIN released a new free mobile app to help keep its customers connected.
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MINISTER THANKS LDCs
FOR ADAPTABILITY AND CUSTOMER FOCUS When Ontario initially declared a state of emergency, our government was quick to extend the winter disconnection ban. Thank you to the many LDCs who took a step further by voluntarily extending their disconnection suspensions and offering critical consumer protection policies. I know many utilities continue to work directly with customers to provide flexible payment terms, suspend late payment fees and waive interest charges in recognition of the economic challenges associated with the pandemic. Our government and the people of Ontario appreciate this thoughtful and responsive action.
“ Families and small businesses need stability and reliability when it comes to their monthly electricity bill.”
“ Our government and the people of Ontario appreciate this thoughtful and responsive action.”
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ince the onset of the COVID-19 pandemic, Ontario has faced significant economic challenges – the likes of which have not been seen for generations. Over the past eight months, businesses and families across our province have been living with a great deal of uncertainty. Our government understands that families and small businesses need stability and reliability when it comes to their monthly electricity bill. That is why at the beginning of the COVID-19 crisis our government jumped into action to support Ontario’s electricity customers with rate relief that reflected Ontarians’ transition to spending more time at home or facing financial hardship.
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Through it all, Ontario’s LDCs have weathered the COVID-19 storm alongside us. I want to express my gratitude to the Electricity Distributors Association (EDA) and LDCs across the province who have adapted and delivered our government’s emergency support programs to Ontario’s electricity customers. Our government is proud to work alongside LDCs, customers’ first point of contact, to deliver targeted support to Ontario’s ratepayers. In the midst of COVID-19, our government was proud to offer customers the flexibility to select an electricity rate plan that works for their lifestyle. We recognize the effort on behalf of LDCs to deliver this critical choice to customers and our government thanks LDCs for their work to deliver this program for the benefit of Ontario’s customers. We appreciate every LDC’s adaptability and willingness to work with our government to implement these critical policies and emergency measures to protect Ontarians. These are challenging times for all of us and the work of the EDA and LDCs has been essential in the fight against COVID-19. Ontario and our government will continue to rely on electricity distribution networks to power our economic recovery and get our province back on track. Thank you for your dedication to Ontario’s electricity customers. Hon. Greg Rickford Minister of Energy, Northern Development and Mines Minister of Indigenous Affairs THE DISTRIBUTOR
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WELCOME TO THE FUTURE
WITH S&C’S TRIPSAVER® II CUTOUT-MOUNTED RECLOSER Truck rolls really add up. They take valuable time, energy, and money. With 80% of overhead faults occurring on lateral lines, fuses are no longer your best lateral protection strategy. S&C’s TripSaver II Cutout-Mounted Recloser combines the best of both fuse-saving and fuse-blowing methods to improve reliability on laterals. It limits the need for truck rolls – and fewer truck rolls means a better bottom line. Keep planning for the grid of tomorrow by maximizing your investments today.
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© S&C Electric Company 2016. All rights reserved.
COVER
The ION light rail transit system, seen here at Kitchener’s Central Station, is the public transit backbone of the Kitchener/Waterloo corridor.
KITCHENER-WILMOT HYDRO
LOCAL UTILITY PLAYS CRUCIAL ROLE IN MAKING RAPID TRANSIT A REALITY Submitted by Kitchener-Wilmot Hydro Inc.
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he Region of Waterloo is the fourth largest municipality in Ontario and the tenth largest in Canada. Its three cities and four townships are home to more than 575,000 people. Some 200,000 new residents are expected to move into the region over the next 20 years. To accommodate this growth, while limiting urban sprawl and protecting and preserving the farmland and natural beauty of the surrounding areas, in 2011 the Region of Waterloo approved a light rail transit (LRT) system to be built in two stages running from Waterloo to Cambridge. The LRT would allow the Region of Waterloo to focus development on its urban cores, and build up instead of out.
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Construction of Stage 1 of the light rail system began in 2015 and runs 19 kilometres from Conestoga Mall in north Waterloo to Fairview Park Mall in south Kitchener. The project includes 13 substations (seven in Kitchener), each requiring redundant electrical supplies for reliability purposes. All overhead electrical wire crossings of the LRT tracks were replaced with underground crossings along the entire route for safety reasons. The role of the local electric utility is critical to the successful execution of a municipal LRT system. “There are a lot of moving parts to a project this big,” says Greig Cameron, Kitchener-Wilmot Hydro Inc.’s Vice President of Engineering & IST. “There was a lot of collaboration with the Region of Waterloo and their contractors.” THE DISTRIBUTOR
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Kitchener is the largest and most dense urban centre in Waterloo Region and its population comprises 92 per cent of Kitchener-Wilmot Hydro’s customer base. Waterloo Region’s LRT, named ION, runs directly through Kitchener’s downtown core. Roughly 50 per cent of Kitchener-Wilmot Hydro’s distribution system in Kitchener’s downtown core had to be relocated to accommodate ION, including a major underground distribution system along Charles Street West and Duke Street West. “It was important to minimize disruption to downtown businesses,” says Cameron. To maintain service to those businesses, the utility built a temporary overhead system to bypass the underground secondary grid network. Kitchener-Wilmot Hydro’s Engineering and Operations teams worked closely with the Region and its design, build, operate and maintain contractor for the LRT. There was daily coordination to allow all workers to work simultaneously in different areas while maintaining the safety of all involved. The collaborative approach was essential. “There were some pretty tight deadlines, and everyone was working to achieve a common goal, which helped keep things moving,” says Israel Briand, Operations Engineer at Kitchener-Wilmot Hydro and one of the employees closest to the project.
project team. “These kinds of projects span multiple years so the accounting process is different from typical municipal infrastructure projects,” says Greig. “Introducing interim billing can help keep costs manageable and somewhat predictable for everyone.” The relocation work spanned over five years and the LRT project took three years to build. By the time trains entered the testing phase in 2018, Kitchener-Wilmot Hydro had relocated more than 100 kilometres of underground cable, 35 kilometres of overhead wires, 381 poles, seven underground network transformer vaults and six network transformers. ION has been in operation since June, 2019 and is the backbone of public transit in the Kitchener/Waterloo corridor. “We’re incredibly proud that our team came together to complete the largest service relocation project in our history with no safety incidents and with minimal rate impact to our customers,” says Cameron. “The pace of the project and the number of moving parts was a challenge, but no one took any shortcuts, everyone kept their focus, and we are proud to have contributed to the successful implementation of a transformative project to electrify transportation and spur economic development in Waterloo Region.”
Building infrastructure for the future
Rebuilding the downtown infrastructure to accommodate ION gave Kitchener-Wilmot Hydro the opportunity to meet the needs of future growth along the corridor. “We installed duct structures to allow us to expand underground service as needed to accommodate future growth,” says Cameron. That decision has paid off. Several high-rise developments are being built in Kitchener’s downtown core, and Kitchener-Wilmot Hydro is easily expanding service to accommodate that growth.
Learning from experience
As with any large project, there were lessons learned along the way. Establishing a robust project management and change control process at the beginning of the project can help keep things moving smoothly. Accurate budget projections are essential, too. To ensure as little disruption as possible during track construction, Kitchener-Wilmot Hydro’s electrical plant relocation work started before ION’s design was complete, which meant design changes along the way had to be accommodated. “It’s important to start with a substantially complete system design so you can budget properly,” says Cameron. “A small change in the alignment of the LRT tracks can cost a lot if you need to make electricity infrastructure adjustments.”
Minimizing the rate impact
Kitchener-Wilmot Hydro negotiated a cost-sharing arrangement with the Region of Waterloo and carefully managed the project costs to minimize the rate impact to customers; and it included its finance department as part of the cross-functional internal
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Kitchener-Wilmot Hydro moved parts of its overhead distribution system underground to accommodate ION.
About Kitchener-Wilmot Hydro Kitchener-Wilmot Hydro is responsible for providing a safe, reliable supply of electricity for more than 96,000 homes and businesses across a 425 square kilometre service territory in Kitchener and Wilmot Township. KitchenerWilmot Hydro is one of the most efficient utilities in Ontario and is focused on providing a safe and reliable supply of electricity to its customers. @KWHydro
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HYDRO ONE
COLLABORATING WITH BUSINESSES AND COMMUNITIES FOR STRONG AND SUSTAINABLE GROWTH Submitted by Hydro One
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“The provincial system planner’s forecasts show an ith the economy transformed by the COVID-19 unprecedented rate of growth in Essex County, where pandemic, businesses and communities are relying electricity demand is expected to triple from 2018 to 2026. We on a safe and stable electricity system now more need to build an electricity network now to be ready for the than ever. They are also looking for new opportunities to grow future needs of residents, industries and businesses,” says and collaborate on projects that support strong and Levitan. “A safe, strong and reliable transmission network is sustainable growth. fundamental in supporting fast-growing industries such as Hydro One has been working behind the scenes to keep a the greenhouse sector, which are heavily dependent on safe and reliable electricity system, while moving forward on electricity.” new projects that increase the amount of available power to The new Chatham to Lakeshore Transmission Line will communities. The aim of these projects is to empower local unlock economic potential and growth and support regional sourcing of goods and services, connect new business to the economic recovery at a time when it is needed most. grid and support economic recovery at a time when it is needed most. “While Hydro One continues to play a critical role in energizing life in the province by providing power to hospitals, grocery stores and other The aim is to empower local sourcing of essential services, we are also enabling growth and economic recovery,” says Daniel Levitan, Vice goods and services, connect new business President, Stakeholder Relations, Hydro One. “By directly serving 1.4 million customers and to the grid, and support economic recovery. transmitting 98 per cent of the electricity in Ontario, we are making sure that the power is there for growing businesses and communities when and where it is needed.” Waasigan Transmission Line Hydro One is working on two large transmission projects to In the north, there is untapped mining and forestry potential support two growing industries in Ontario – the greenhouse and not enough electricity infrastructure. and mining sectors. The Chatham to Lakeshore Transmission Building the Waasigan Transmission Line will increase the Line and the Waasigan Transmission Line will create jobs, amount of electricity that can flow through the system and support growing industries and help Ontario’s economy grow. create up to 350 jobs in the process. This $600 million investment will bolster power between Thunder Bay, Atikokan and Dryden. Chatham to Lakeshore Transmission Line Hydro One is in the development phase and wants to ensure Southwestern Ontario is one of the hubs of North American that the local communities can benefit from this greenhouse vegetable production. The greenhouse industry is infrastructure project. Through this project, the company is contributing approximately $1.5 billion and 10,000 jobs to the training local Indigenous community members on how to Ontario economy. In recent years, the forecast of electricity interpret and get involved in the environmental assessment demand for this sector has increased significantly. Hydro One process, and to assist with field studies. worked collaboratively with the Independent Electricity By building local procurement opportunities and System Operator (IESO) and local community leaders to partnerships into the project, the construction of the understand exactly where and when the power is needed. Waasigan Transmission Line will provide reliable power and Hydro One advocated for a new transmission line in support regional economic activity. southwestern Ontario from Chatham to Lakeshore to provide “Hydro One has been powering homes and businesses in 400 additional megawatts of power – equivalent to powering a northwestern Ontario for more than 70 years. Our crews live city the size of Windsor – and is now working to complete this and work in the community, and work tirelessly to build and major investment. This will allow for more than 40 mediummaintain the electricity grid,” says Levitan. “The new Waasigan sized greenhouses to start-up and grow.
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Hydro One is working on two large transmission projects which will support growing industries and help Ontario’s economy to thrive.
Transmission line will be a critical link in the expansion of the transmission network in the northwest and help open up new growth opportunities for the thriving mining sector.” Hydro One is implementing local training and skills development and using local resources. With a company-wide framework for guiding Indigenous partnerships, procurement and employment opportunities, Hydro One doesn’t just focus on building electricity projects, it prioritizes building sustainable communities. The region will continue to see benefits long after this project is built.
A sustainable way forward
Ensuring a reliable grid for the future is Hydro One’s greatest responsibility and the province’s greatest opportunity. With both the Chatham to Lakeshore and Waasigan Transmission Line projects, Hydro One is taking steps to be part of the solution to enable growth, job creation and greater affordability for all Ontarians. “In our initial response to the pandemic, we were focused www.eda-on.ca
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on keeping the lights on. Now, we have to shift to looking at the role we play in keeping the system affordable while helping restart the economy,” says Levitan. During this historic moment, corporations will be evaluated for their commitment and contributions to helping customers and communities, standing up for employee equity and inclusion, and responsibly adapting to a changing world. By enabling economic recovery through both the Chatham to Lakeshore and Waasigan Transmission Line projects, Hydro One continues to support local procurement, act in an environmentally responsible manner, prepare for the impacts of climate change and strive for a more diverse workforce. About Hydro One Hydro One is Ontario’s largest electricity transmission and distribution service provider. We distribute electricity across Ontario to nearly 1.4 million predominantly rural customers, or approximately 26% of the total number of customers in Ontario. In November 2015, we became a publicly traded company on the Toronto Stock Exchange (H). @HydroOne
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HYDRO OTTAWA
POWERING THE NATION’S CAPITAL FROM A TO Z By Morgan Barnes and Myra Beaman
Hydro Ottawa was a key partner in the renewal of Elgin Street – a popular commercial and entertainment thoroughfare in central Ottawa.
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rom energizing Amazon’s newest distribution centre to partnering with the region’s first zero-carbon district energy community, known as Zibi, you could say that Hydro Ottawa is powering economic growth for a city of one-million residents (quite literally) from A to Z. Hydro Ottawa’s focus is to build a sustainable and smart energy future for the nation’s capital through a number of interesting partnerships and initiatives; believing it’s the utility’s responsibility to adapt its business, products and strategy to meet the evolving expectations and energy needs of its community and customers. This adaptable approach is the result of a close relationship with city planners and developers, and of aligning planning with the City of Ottawa’s own vision for development, growth and environmental sustainability. With the city’s goal of reducing greenhouse gas emissions by 100 per cent by 2050, Hydro Ottawa’s affiliate, Envari, has been tapped for numerous energy projects including the conversion of 50,000 streetlights to LED, and most recently, the installation of 24 public electric vehicle charging stations. “Municipalities look to their local hydro utilities for innovative solutions, so we’ve got to be the change-makers they are searching for,” says Bryce Conrad, President and CEO of Hydro Ottawa. “As the local utility, we have the expertise to help elevate the economic prosperity of our city, not only with the reliable power we provide, but with the kinds of projects we invest in, infrastructure we build and partnerships we enter into.”
Starting backwards from Z
One such forward-thinking partnership is the Zibi Community Utility, an innovative district thermal energy plant and system
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The Zibi zero-carbon district energy community is taking shape adjacent to the ring dam and other Hydro Ottawa infrastructure along the Ottawa River.
co-owned by Hydro Ottawa and Zibi (a partnership between Dream Unlimited and THEIA Partners). It will provide net-zero carbon heating and cooling for all Zibi tenants, residents and visitors at its 34-acre downtown riverfront community. This technology will make Zibi the region’s first zerocarbon-emission community, and the first in North America to use post-industrial waste recovery (from a local Kruger paper plant) in a master-planned neighbourhood. The strategic location of a thermal energy plant in the downtown core can also support further developments in the city. Across the Ottawa River, Hydro Ottawa’s other primary affiliate, Portage Power, is refurbishing two of the hydroelectric generating stations that it acquired from THE DISTRIBUTOR
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The expertise of Hydro Ottawa affiliate Envari is being drawn on to help the City of Ottawa meet ambitious emission reduction goals.
safety, reliability and efficiency to provide customers with the best possible service at the best possible rates. “Maintaining quality service means consistently investing in already established assets and neighbourhoods to improve the way that power is distributed,” says Conrad. “After all, how well a city is powered is a foundational platform for how the city can expand and evolve. For every new project, Hydro Ottawa places an equal measure of care on maintaining high-quality service to our existing customers.” The City’s renewal of historic and popular Elgin Street is such an example. To bring Elgin Street out of the 19th century, the underground infrastructure needed a serious upgrade. With 28 kilometres of new underground primary and secondary cable, and pandemic protocols in place to protect crews, Hydro Ottawa set to work in the spring of 2020 to connect customers to the new underground system and remove 35 towering hydro poles. After 12,000 labour hours for electrical construction and design, Elgin Street has been successfully reimagined for the 21st century.
A is for Amazon
Hydro-Québec in 2016. Recognizing that environmental growth supports economic growth, the restorations will extend the life expectancy of the facilities while meeting obligations under a new 40-year power purchase agreement with the Independent Electricity System Operator to bring additional clean, renewable power into Ontario. The refurbishments include new turbines and generator upgrades, extensive upstream and downstream civil works, and other electrical and mechanical improvements. As the first electric utility in Canada to earn ISO 55001:2014 certification in recognition of its best practices in asset management from the International Organization for Standardization (ISO), Hydro Ottawa is showing that amidst shiny new opportunities, its goals are always grounded in www.eda-on.ca
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Over the next twenty years, electricity needs in the south end of the city are expected to more than double due to planned residential and commercial development. To supply the power to grow, Hydro Ottawa and Hydro One began building new electricity facilities to strengthen the system that serves the area, including the largest substation that Hydro Ottawa has ever built (providing more than 90 megawatts of planning capacity). This made the location an appropriate choice for Amazon’s newest 2.8 million square foot fulfillment centre. Until the new substation is energized in 2022, Hydro Ottawa has extended its underground system to the large Amazon facility for the construction phase. When complete, Amazon’s newest facility will employ more than 1,000 people. Thanks to Hydro Ottawa’s regional forecasting and long-term planning, large corporate investors can feel confident Ottawa’s electricity system is reliable and wellmanaged. It’s just another way this local utility assists in economic success and works for the betterment of the community and citizens. Hydro Ottawa really is showing it can do it all – from A to Z. The authors work in Media and Public Affairs at Hydro Ottawa. About Hydro Ottawa Hydro Ottawa Holding Inc. (Hydro Ottawa) is a private company 100 per cent owned by the City of Ottawa and whose core businesses are electricity distribution, renewable energy generation, and energy and utility services. Hydro Ottawa owns and operates three primary subsidiary companies, including Hydro Ottawa Limited, which delivers electricity to more than 340,000 customers in the City of Ottawa and the Village of Casselman; as well as Portage Power and energy-solutions provider Envari. @hydroottawa
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ONTARIO’S DISTRIBUTORS STAND IN SOLIDARITY WITH THEIR CUSTOMERS Oshawa Power overviews efforts to minimize economic pain for customers during the first phase of COVID-19 By Janet Taylor, Lori Dafoe and Angie Longworth
credit: @brandaohh on Unsplash.
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rior to COVID-19, the relationship between energy and economy was under close examination. Previously thought to have a direct, positive correlation, energy use and GDP had started to decouple. Some projections about this phenomenon were well laid-out in McKinsey’s 2019 work, “The Decoupling of GDP and Energy Growth,” which describes how shifts in economic focus, energy efficiency, electrification and renewables will further change the correlation of power to economic outcomes. While much needs to be studied about the evolution of these previously thought to be in-lock-step economic indicators, the onset of the COVID-19 pandemic demonstrated just how intrinsically connected energy still is with economic well-being. In this article, we examine the tangible and immediate actions that Ontario electricity distributors took to mitigate negative economic outcomes for our customers during the first wave of COVID-19.
Residential and industrial relief
One of the first policies out of the gate was the extension of the provincial disconnection ban by three months, to July 31. This was done in recognition of projected household income losses attributed to a locked-down economy. Regardless of the serious operational challenges disconnection bans yield for utilities, Local Distribution Companies (LDCs) across Ontario steppedup to promote the ban and implement even more flexible
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payment options. An example is Oshawa Power’s July 7 proactive payment extension program, through which we seek to work with customers on an individual basis to prevent disconnections. Looking to the industrial sector, on July 2, the Ministry of Energy, Northern Development and Mines advised the IESO to put the Industrial Conservation Initiative (ICI) on hiatus. This avoided incentivizing major employers to curtail operations during what should have been a ramp-up of the previously locked-down economy. While this allowed large users to operate freely, it also resulted in a near total halt in future projects aimed at helping large users shed load through non-curtailment measures, such as on-site storage or generation. Without certainty on what comes next for the ICI, large users may not be able to adequately prepare for future demand response – aka cost-control – opportunities.
No one left behind
Throughout the summer, utilities also ramped-up efforts to connect customers with emergency funding. Despite our customer service team’s best efforts, Oshawa Power found that a large portion of customers did not qualify for programs such as the COVID-19 Emergency Assistance Program. As a result, on August 17 our team launched the Compassion Fund (www.opuc. on.ca/compassion-fund/), which seeks to help customers who are falling through the cracks. Our “no-one left-behind” attitude is emblematic of the industry during this crisis. THE DISTRIBUTOR
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Another area of policy that was rapidly implemented as a result of COVID-19 centres on customer rate-plan choice. Prior to the pandemic, the Ontario Energy Board (OEB) had been studying pricing mechanisms, including assessment of the impact of customer choice on load flattening/cost savings. These studies – run through real-world pilots executed by Oshawa Power, Customer First, London Hydro and Alectra – identified a myriad of pricing options that garnered varying pricing benefits for customers. Throughout July and August, the OEB fasttracked a consultation on a relatively simple choice for residential consumers regarding flat-rate versus time-of-use pricing. As a result, beginning this November, residential customers were able to choose which plan better fits their ‘new normal’ – be it commuting to an essential service job, or working from home to protect the front lines.
About Oshawa Power Oshawa Power is a regulated utility that provides safe, reliable and efficient electricity distribution services to over 60,000 customers in the community of Oshawa. Oshawa Power continues to expand its infrastructure efficiently to proudly meet Oshawa’s growth and demand and to meet the needs of our customers. @oshawapower
Going beyond policy relief
The list of pivots the utility industry made doesn’t end at the policy level. Oshawa Power proudly provided new service types and connections to help social services and healthcare facilities meet their new operational requirements, as did other LDCs across the province. In short, actions taken by Ontario’s energy sector were intrinsic to ensuring the best possible socio-economic outcomes during the first wave. As an industry, we stand in solidarity with our customers as we navigate these challenging times together.
www.eda-on.ca
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The authors are Lori Dafoe, Executive Assistant; Janet Taylor, Manager, Sustainability and Business Advocacy; and Angie Longworth, Manager, Customer Service.
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COVER
WHO WAS THAT MASKED SUPERHERO? Submitted by ENWIN Utilities
Peirce Marshall describes the 2020 Community Support Plan, formalized by ENWIN’s Community Support Committee in late 2019, as a substantial volunteer and events-driven initiative, promoting community education related to diversity and inclusion through public-facing events with organizations like the Multicultural Council of Windsor and Essex County, Build a Dream, and the Ontario Society of Professional Engineers.
And then COVID struck
ENWIN Superhero Volunteer Mona Khalil attends the Build a Dream International Day of the Girl virtual event.
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or many years, the Windsor non-profit community has relied upon, and benefitted from, the work of ENWIN’s employee-driven Community Support Committee, which has delivered a heavily events-based fundraising and volunteer program, with help from dozens of employee volunteers, known as the ENWIN Superheroes. Together, they have supported hundreds of local events, and raised many thousands of dollars for local non-profit and charitable organizations. ENWIN’s Manager of Corporate Communications, Barbara Peirce Marshall, who is responsible for the philanthropic program, says the company is proud of the caring and generous spirit exhibited by its employees. “From health to safety, to education, our Superheroes have demonstrated over and over again, what they are made of,” she says. “We have never proposed an event or a fundraiser for which they didn’t step up. It is an honour to work with them.”
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“By March, we were ready to roll it out,” she says. “And then COVID struck with a fury that decimated the world of events-based community support, and threatened the very existence of some of the non-profit organizations that rely on companies like ENWIN.” It was a stressful and difficult moment, with all partners scrambling to ensure the health and safety needs of their employees, as they figured out how to continue to meet community obligations. Many non-profits were struggling to find alternative ways to fulfil their sponsorship promises, and still pay their employees. One by one, the events of the season were cancelled. But that didn’t end the discussion – or the desire of ENWIN employees to help their community. John-Paul Bonadonna, who coordinates the activities of the Community Support Committee, went to work scheduling virtual meetings with committee members and community partners. “After some initial discussion, we all recognized that public events must give way to a very different style and format,” he explains. “Instead of sending volunteers out into the THE DISTRIBUTOR
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community, we decided to put them to work in a virtual format, supporting the same events and organizations from afar.” It took a while to revamp the plan, but the upshot was a strong roster of virtual programs, sponsored by ENWIN, attended remotely by ENWIN volunteers, and delivered in tandem with the partnership organizations across Windsor. “We are delighted to be able to carry these programs forward,” acknowledges Pierce Marshall. “It is more important than ever that we continue to support those who support our community.”
Finding a way to pivot quickly
Nour Hachem-Fawaz, Founder and President of Build a Dream, for which ENWIN is the 2020 Inclusive Diversity Champion, agrees. “Build a Dream is funded 100 per cent through partners who believe in promoting diversity and inclusion to strengthen the workforce,” A selfie of ENWIN Customer she adds. “We are grateful to Field Representative Angelo Tiseo, riding in isolation in the Great companies like Cycle Challenge benefitting SickKids Foundation. ENWIN that found a way to pivot quickly with us this year, to continue to support our work under a different model.” The new Build a Dream sponsorship includes an online career fair, a digital conference, a podcast series, online spotlights featuring ENWIN employees, and the virtual version of Build a Dream’s International Day of the Girl. Throughout all virtual events, ENWIN volunteers will act as diverse inclusivity champions, supporting and educating young women about careers in STEM. “Diversity and inclusion are important to our current and future wellbeing,” Nour notes. “It is vital to our community and to our organization, that we continue our outreach with as little interruption as possible.” The same can be said of the work undertaken by the Multicultural Council of Windsor and Essex County. As executive director of the organization, Kathleen Thomas has pledged to promote and encourage a harmonious society in Windsor and Essex County, and to work towards the social equality of all cultures. “This is work that cannot be put on hold,” she explains. “We are proud to work side-by-side with ENWIN to continue our mission through education, community engagement and the promotion of diversity and equality, as we deal with the current complexities.” www.eda-on.ca
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There where people were struggling
And as other support opportunities turned virtual, ENWIN’s Superheroes took up other challenges – at a grass roots level – to row, walk, run, climb and cycle; this time digitally, virtually or in isolation. Within the first few months of a world crisis, they independently raised nearly $13,000 to help organizations such as Childcan, VON Meals on Wheels, United Way, Emergency Food Action Coalition, the Canadian Mental Health Association and Feeding Windsor. Anywhere there were people struggling, the Superheroes were there – virtually – to partner, encourage, challenge and support. “As always, our community partnerships give us a moment to reflect on what really matters,” adds ENWIN President and CEO Helga Reidel. “It is with particular poignancy that we remember, this year, that we all need to take care of one another.” ENWIN employees have demonstrated that they understand what that means, and are determined to find a way to help – no matter what the challenge! In recognition of both the employees’ status as front-line workers, and their ongoing commitment to supporting the community, ENWIN has provided all its Superheroes with ENWIN masks, to welcome them back to the office after so many COVID-related virtual office experiences. “Our Superheroes may not always wear capes,” jokes Bonadonna, “But this year, they do wear masks!”.
Apprentice Powerline Splicer Eric Symes keeps himself and others safe by wearing an ENWIN Superhero branded mask.
About ENWIN Utilities ENWIN Utilities Ltd. is the licensed electricity distribution company serving customers in the City of Windsor, and is responsible for the local distribution of electricity, and the service and maintenance of the local electricity distribution infrastructure. ENWIN also maintains a contract of service with Windsor Utilities Commission (WUC) to operate and maintain the WUC owned water system that serves customers in Windsor, Tecumseh and LaSalle. @ENWINUtilities
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BURLINGTON HYDRO ANNIVERSARY FEATURE
In 1966 Burlington Hydro had 17,924 customers. In this photo, employees gather in the back lot alongside the vehicle fleet. (Image: Burlington Hydro archive)
BURLINGTON HYDRO MARKS
75 YEARS OF SERVICE TO ITS COMMUNITY Submitted by Burlington Hydro
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n July 6, 1945, the Burlington Public Utilities Commission (PUC), Burlington Hydro’s predecessor, was created and its first meeting was held in the town’s council chambers. At that time Burlington had a population of 4,380 and World War II was coming to an end. The town was recognized as a hub of market gardening, basket and canning factories, and had a cluster of small businesses in its downtown core. As the community continued to expand and redefine itself, so did Burlington Hydro. From post-war power shortages to the boom years of the 50s and 60s, through the 90s and to a time today when disruptive technologies are now altering the
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face of the electricity industry, we have continued to adapt and evolve with the times. Today, the city has a population of almost 200,000, with a vibrant mixed business and commercial sector, and a growing residential community.
Service a growing community
“Our 75th is a milestone that marks many decades of service to a growing and vibrant community,” says John Maheu, Burlington Hydro Board Chair. “We’re proud of that history and our ongoing commitment to provide safe and reliable electricity to the businesses, institutions and residents of our great city.” THE DISTRIBUTOR
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BURLINGTON HYDRO ANNIVERSARY FEATURE Of course, Burlington was electrified before 1945. The radial railway was the first to bring electricity to the area in 1897. Powered by steam generation, the electric railway would eventually extend from Hamilton through to Oakville. Downtown businesses and residential homes were starting to be electrified as well, with power only available to customers from dusk to dawn in the early 1900s. Prior to the creation of the Burlington PUC, the Town had resisted taking ownership of its utility, opting responsibility instead to private power companies to run the system. When the Dominion Power and Transmission Company was acquired in 1930 by the Hydro Electric Power Commission of Ontario (Hydro One’s predecessor), the provincial body took over system operations. It wasn’t until 1945 that the Town of Burlington opted to purchase the assets from the provincial body.
Post-war shortages and prosperity
After the war, Ontario was experiencing power shortages which in the fall of 1948 came to a head when electric utilities were given quotas aimed at reducing demand. In order to meet Burlington PUC’s quota, power was interrupted to all customers from 12:30 to 1:00 p.m. and from 6:30 to 9:30 p.m. each day for six months. Prosperous years were to follow however, and as the community grew, so did Burlington Hydro. By the mid-fifties, linemen were receiving a top rate of $1.97 an hour, while meter readers were being paid $1.50, considered generous wages at the time. As would be expected, great technological advances have been made over the decades. In a 2001 speech, retired General Manager Don Kelly remarked: “In 1965, our response to power interruptions was limited to a schematic (not geographic) map of our distribution system coupled with a single telephone in our operations area. Communications with our field crews were limited to a single radio frequency from a single transmitting source that could not reach all parts of our service area.” Under the 1998 Energy Competition Act, Burlington Hydro Inc. was incorporated and wholly transferred to the ownership of the City of Burlington on January 1, 2000, as a for-profit company. There are many more anecdotal facts from Burlington Hydro’s history featured on our commemorative website portal. A historical timeline features over 35 significant milestones, while a two-minute video celebrates 75 years of service to our community. We’re celebrating, albeit virtually, as we look back on our long and storied history. Although celebrations such as a public open house and attendance at local festivals and events have had to be scaled back because of the coronavirus pandemic, we’ll be marking the milestone through social media posts, virtual town halls and meetings, and feature stories in our local media. Burlington Hydro has 68,000 residential, institutional and commercial customers. With a total licensed service area of 188 square kilometres , Burlington Hydro delivers electricity into the community through a network of 1,600 kilometres of medium-voltage distribution lines and 32 substations. Burlington Hydro is a progressive company committed to continuous improvement, system renewal and performance excellence. The company is wholly owned by the City of Burlington. www.eda-on.ca
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“ At the heart of 75 successful years are our employees both past and present. They are the very core of our company – who we are and who we aspire to be as we look forward to many more years of providing power to our customers and the community.” – Gerry Smallegange, President and Chief Executive Officer
Burlington has continued to grow and expand in the 2000s. Laying underground cable in a new subdivision circa 2009. (Image: Burlington Hydro archive)
Learn more at: www.burlingtonhydro.com. We’re also celebrating on Twitter, be sure to follow us @BurlingtonHydro
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The Power of Resiliency
Event Date
January 13-14, 2021 NEW Virtual Format Engaging live and on-demand sessions
25 Sessions
Delivered by subject matter experts
Regular Attendee Pricing Members - $365 Non-members - $475
Exhibitor Hall
Dynamic, interactive exhibitor hall with fully customizable vendor booths
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EARLYBIRD DEADLINE
eda-on.ca/events/EDIST2021
Early Bird Attendee Pricing Until December 4 Members - $315 Non-members - $415
ADVOCACY IN ACTION
WORKING GROUP AIMS TO BOOST CEAP UPTAKE After working with the Ministry of Energy, Northern Development and Mines to help develop and implement both the CEAP and CEAP-SB – COVID Emergency Assistance Programs for residential and small business customers, respectively – the EDA and its LDC members have been participating on a working group to help increase the number of successful applicants after lower than expected initial demand. MPP Stan Cho
MPP Andrea Khanjin
MPP Christina Mitas
MPP David Piccini.
CEAP provides a one time, on-bill credit to eligible residential electricity and natural gas customers to help them catch up on their energy bills and resume regular payments. The program is being delivered by electricity distributors, gas distributors, and unit sub-meter providers (USMPs), in accordance with rules laid out by the Ontario Energy Board. Utilities and USMPs began accepting applications for CEAP in July.
OEB RELEASES FINALIZED CUSTOMER CHOICE CODE AMENDMENTS The EDA has continued in recent months to contribute to the development of implementation details around the transition to customer choice on time-of-use billing – which became effective November 1 – seeking sufficient flexibility for utilities to meet the program’s objectives, and emphasizing the importance of customer communication and education. In early September the OEB released the finalized amendments to the Standard Supply Service Code (SSSC), after numerous submissions and substantial participation in the working group on the part of the EDA. Several changes were made to the first iterations of the code amendments based on EDA feedback. These include removing a requirement for LDCs to include on-bill messaging when a pricing plan change occurs, changes to the original suggestion regarding new accounts, and confirmation that LDCs can track costs incurred in developing and implementing customer choice in a variance account. www.eda-on.ca
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EDA MEETS WITH PC MPPS ON LDC COVID RESPONSE Throughout August and September, the EDA met with several government MPPs, including Stan Cho, Andrea Khanjin, Christina Mitas, and David Piccini. The EDA used these meetings to help build the LDC sector brand, promote the “Power of Local Hydro”, and discuss the work that the EDA has done with the government during the COVID-19 pandemic. More specific topics of discussion included the upcoming expansion of customer choice on billing, CEAP and CEAP-SB, as well as the EDA’s recommendation to include electrification in the government’s economic recovery plan. These meetings were also an opportunity to ready MPPs for any questions they may receive on the Time-of-Use Customer Choice program, and on what the changes will mean for their constituents. The EDA received good feedback from these meetings. MPPs were encouraged and excited to help promote CEAP and CEAP-SB, and were ready to do their part on customer choice.
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COMMERCIAL SUCCESS
ASK THE EXPERT: GRANT THORNTON LLP
HOW A CONSTRUCTION AUDIT CAN MINIMIZE COSTS AND RISKS
A
s local distribution companies (LDCs) and their municipal shareholders develop assets and expand their services – often through non-regulated affiliates – they may find themselves engaging in an increasing number of construction projects. As they embark down this path, construction audits can be a critical means of avoiding costly bumps in the road. Because construction projects involve a lot of moving parts, many factors and risks can end up costing time and money. Anything from vendor invoice errors to weather delays, unexpected change orders to damaged equipment, can quickly cause costs to spiral out of control. A construction audit is a systematic review of a project to
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confirm that contractors and subcontractors are performing in line with their quoted scope, timelines and objectives. As such, it can greatly minimize the risks of a project being derailed.
Construction audits and project success
There are essentially four ways a construction audit can help ensure your project runs smoothly.
It keeps costs in check: Construction costs can be quite volatile throughout a project’s lifecycle. A construction audit can help you hold participants accountable and ensure they manage and invoice their costs efficiently and correctly. THE DISTRIBUTOR
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It holds the project manager accountable: In most construction projects, a project manager is responsible for making sure all participants focus on their prescribed scope of work while, at the same time, keeping the overall project running according to plan. A construction audit provides independent clarity on the project manager’s effectiveness and determines whether he or she is abiding by necessary safety measures and industry best practices. It makes sure billings don’t outpace progress: A construction auditor typically visits the job site and, through conversations with onsite staff, reviews the progress to date. The auditor will also collaborate with onsite staff to make sure project timelines and milestones are met and, if there are issues, the auditor will communicate team concerns, challenges and conflicts to the relevant project leadership teams. This helps directly tie invoices to the completion of project milestones or contractual payment terms. It keeps the workplace safe. Construction auditors can
also review procedures dealing with hazardous materials, equipment and work site logistics to determine if all workers have access to a safe environment.
Construction audits and risk mitigation
Hold-back terms and conditions: The final sign-off on
a contractor’s or sub-contractor’s work is a key way to protect yourself from financial risk on a project. Because it’s difficult to recover balances that have already been paid, it’s wise to actively advocate for a complete contract review or audit before the final payment or hold-back payment is released.
For more insights on construction audits and the value they could add in the context of one of your projects, please contact: Ingrid Holbik Senior Manager, Assurance Services Power & Utilities Team Grant Thornton LLP T +1 416 369 7134 E Ingrid.Holbik@ca.gt.com
Angie Brown Director, Advisory Services Power & Utilities Team Grant Thornton LLP T +1 709 778 8841 | E Angie.Brown@ca.gt.com
There are countless ways that a construction audit can help you mitigate risk, but three are particularly important.
Bidding: External parties can sometimes try to influence the bidding process by submitting bids that are meant to be unsuccessful. They may also collude with other contractors or create false bids for the purpose of inflating pricing. Construction auditors can help confirm that you have a well-defined project procurement and bid evaluation process from the outset. Contract execution: Contractors and subcontractors may try to pull together a business case for change orders and out-of-scope billings. Because construction auditors maintain a close eye on a project’s execution – and can review status updates with a sense of professional skepticism – they can assess the validity of change order requests and underlying supporting documents prior to approving any payments.
www.eda-on.ca
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K-LINE INSULATORS LIMITED www.k-line.net "PROUDLY INTRODUCES" Totally Insulated Framing System (TIF)
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COMMERCIAL SUCCESS
ASK THE EXPERT: AMERESCO CANADA INC.
LDCS AND CARBON CUTS:
THREE FINANCING STRATEGIES TO MOBILIZE YOUR COMMUNITIES By Scott Vokey
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e need electrification, innovation, behaviour changes, and massive efficiency gains to achieve the emission reductions required to meet our Paris Agreement commitments, according to the International Energy Agency’s 2020 World Energy Outlook. In other words, we must move beyond our current anemic response to a war-effort level of total mobilization. While COVID-19 has hampered our response, I know Ontarians can mitigate and adapt to climate change if we all pull together. While LDCs have a crucial role in supporting fuelswitching and electrification initiatives, they will not be able to ensure Ontario achieves net-zero emissions on their own. LDCs must unite with their municipal shareholders, customers, energy service providers, community groups, and the finance community. Utilities (and municipalities) will also have to think differently as the financing tools traditionally used for climate mitigation are not enough to achieve deep and widespread emission reductions. Repayment mechanisms that can address these specific challenges must be utilized if we are going to deploy the capital required. Inspired LDCs can utilize three key finance strategies1 to help mobilize their communities for deep and widespread emission reductions.
On-bill repayment
Using an on-bill repayment (OBR) program, the utility pays a third-party partner, such as Ameresco, for the energy improvement and recoups this payment from their customer as an add-on to the utility bill. It is distinct from on-bill finance (OBF) in that the utility does not have to pay for program management (underwriting, capital utilization) or marketing as this is handled by the partner. This is a highly secure repayment mechanism and loans remain with the property upon sale, which provides financing flexibility to customers. However, LDCs may need OEB approval before moving forward with OBR or OBF – if each project requires its own contract – and there is administrative complexity. A pilot being developed by Oshawa Power and the Region of Durham may provide more answers.
PACE and/or C-PACE
Enabled under Regulation 586/06 of the Municipal Act, Property-Assessed Clean Energy (PACE) is designed to help property owners overcome the barrier of high up-front costs. PACE allows building owners to finance qualifying improvements through a voluntary tax assessment. They pay for the improvements over time and the repayment obligation transfers automatically upon sale. Benefits include low up-front investment, long-term financing, immediate positive cash flow, low interest rates, and ability to pass payments through to tenants. Commercial Pace (C-PACE) operates in the same manner and has the additional benefits of offering non-recourse and non-accelerating financing that is often off-balance sheet. The primary challenge with these models is that they require a willing and able municipal partner to administer – and the few municipal programs on offer in Ontario have floundered. However, LDCs can partner with third parties like Ameresco to offer municipalities administrative, marketing, and implementation support.
LDCs have a crucial role in supporting fuel-switching and electrification initiatives. UESC featuring EPC and EaaS financing
70+ American utilities participate in the Utility Energy Service Contract (UESC) program in which contracted third-parties design, implement, and finance a wide range of energy and facility-renewal initiatives for federal clients. UESCs provide a streamlined contracting approach for a broad spectrum of energy services.
1 Both the On the Money: Financing Tools for Local Climate Action (ICLEI 2018) and Efficiency Financing Tools for the Canadian Context (Toronto Atmospheric Fund 2017) reports are highly recommended for more detail on the first two tools discussed here.
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COMMERCIAL SUCCESS
Credit: Scott Graham on Unsplash
The utility’s partner assesses the opportunities, designs and implements the desired energy measures, and may provide financing for the project. The customer may use any combination of appropriations and financing to pay for the project. Unfunded liabilities and aging infrastructure are a source of concern for many facility owners, but these fiscal strains can be turned into sources of cash through either an Energy Performance Contact (EPC) or the Energy-as-a-Service (EaaS) model. As a firm that has sourced and raised over $3.5 billion of financing for projects, we at Ameresco appreciate how project financing can benefit customers and utilities. Customers benefit from reduced upfront costs, risk transfer to a third party, increased resiliency, reduced GHG emissions, and shifting a capital cost into an operating cost. This enables them to complete necessary infrastructure upgrades when budgets are too tight or non-existent. Utilities benefit from increased system reliability through improved customer load profiles, increased participation in incentive programs, and brand growth. We believe that LDCs can partner with organizations such as Ameresco to build a cleaner, more prosperous province with a stronger economy and a better electricity system. We have risen to great challenges before and as Winston Churchill once said: “We shall not fail or falter. We shall not weaken or tire. Give us the tools and we will finish the job.” www.eda-on.ca
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Interested in learning more about any of these innovative energy finance mechanisms? Our advisors at Ameresco helped enable PACE in Ontario and have experience with a range of energy finance instruments. Scott Vokey Director – Asset Solutions Strategy & Outreach, Ameresco Canada Inc. T (905) 955-8095 E svokey@ameresco.com
MARKETPLACE
www.pui.ca
Meter Services Peterborough, a Division of Peterborough Utilities Inc. is a provider of revenue meter related services in Ontario. We are IESO registered as MSP #1002 and provide meter installation services; Meter Data Management (MDMA) functions; Web posting of data and bill reconciliation (MDS Web); Settlement Services (WSS Web); Conservation and Demand Management and Power Quality Monitoring Solutions to Wholsale Market Participants, Local Distribution Companies, Energy Services Companies and Generators. Please contact us at 705-748-9301 ext. 1279 for more infromation on our suite of service offerings
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EDA EVENT SERIES
EDA Event Series Continues its Evolution Lots ahead in 2021
EDIST (Electricity, Distribution, Information Systems & Technology Conference) will take place January 13-14, 2021. The responses to this year’s call for papers promises high-value insights on unique and innovative solutions that have delivered value for customers and shareholders, on the theme of Power of Resilience. The immersive virtual experience will include customized booths enabling participant-exhibitor interaction by various channels, an Academic Lounge to profile thought leadership in the sector, and other features that will enable easy and meaningful engagement with your peers.
CUEE (Canadian Utility Engineering and Equipment Trade Show Marketplace) is set for June 8-9, 2021. We plan to offer this signature event in an in-person format across more than 150,000 square feet of indoor and outdoor exhibit space at Mississauga’s International Centre. Health and safety procedures will be implemented to ensure full compliance with all public health guidelines in place at the time.
Participant Feedback EDA M&A Forum – Oct. 22
94% Satisfaction Rate
83% Would Recommend to Others
‘Very Good Event & Worthwhile’ ‘Good Session… Two Thumbs Up’ Attended By: Utility Execs & Board Members, Government & Agency Reps, EDA Commercial Members
Webinars and forums draw strong attendance
Since 1987
NEW, REWIND, SURPLUS PURCHASING, REMANUFACTURING
REDESIGN, REWIND, SURPLUS PURCHASING
REMANUFACTURING & LAB TESTS
More than 900 attendees have taken part so far in a series of interactive and complimentary EDA member webinars, focused mainly on pandemic-related issues and impacts for local hydro utilities. The latest, in early September, looked at opportunities to partner with large customers on distributed energy projects, and was presented by Ameresco Canada. An additional webinar on sustainability will be presented by Hydro One in December. Our program of specialized member forums also resumed, with virtual delivery of a Mergers and Acquisitions Forum in October, presented by Grant Thornton and Aird & Berlis. And the 8th annual Women Connected event rolled out in November on an engaging virtual platform, delayed but in no way diminished by the pandemic. Our thanks again to all presenters and panel members, and specifically to Associate Minister of Children and Women’s Issues, Jill Dunlop, for her keynote. Finally, the annual call for nominations for the EDA’s annual Industry Excellence Awards is open, with a deadline of January 18, 2021. Planning is underway for both the EDA’s AGM, which will take place February 25, 2021, as well as for EDA’s Awards Gala, which will take place concurrent with the ENERCOM conference, August 22-25, 2021 at Toronto’s Fairmont Royal York.
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We transform your needs in solutions!
For further updates, and event and registration details for all of the above, please visit: www.eda-on.ca/EVENTS. THE DISTRIBUTOR
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In an Insurance Hard Market, Your Reciprocal Shines! The property/casualty insurance marketplace is extraordinarily challenging at this time. Domestic and global markets are dealing with the most complex conditions in decades. At a time like this and more than ever, you need solid business partners to rely upon. The MEARIE Group is proud to be the exclusive Reciprocal insurer to Ontario’s energy sector and provider of solutions and stability during good and bad times. • Protection – Spanning your entire business operations • Performance – Pricing stability through 34 years of service to LDCs • Adaptation – Ongoing delivery of robust products & additional services • Financial Strength – Well capitalized with significant reserves • Industry-focus – Strategic partner for the energy sector in Ontario
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