PEOPLE SERVING PEOPLE 2018 ANNUAL REPORT
WHO ARE WE Waterloo North Hydro Inc. is a municipally-owned electricity distribution company incorporated under the Business Corporation Act (Ontario) on May 1, 2000. WNH is a wholly-owned subsidiary of Waterloo North Hydro Holding Corporation, which is owned by the City of Waterloo, the Township of Wellesley, and the Township of Woolwich.
CITY OF WATERLOO
TOWNSHIP OF WELLESLEY
TOWNSHIP OF WOOLWICH
WATERLOO NORTH HYDRO HOLDING CORPORATION
WATERLOO NORTH HYDRO INC.
PURPOSE
MISSION
VISION
Delivering electricity efficiently to our customers.
To be of service to our customers by delivering electricity to homes and businesses in our communities – safely, reliably, 24/7
Be the flexible, sustainable distribution platform for connecting consumers and producers of electricity, and be the trusted energy advisor of choice for our customers.
QUICK FACTS
TABLE OF CONTENTS
57,436 Customers
683 KM
2
Service territory
1,076 KM Of overhead line
CORE VALUES Respect Commitment To Excellence Service Teamwork and Collaboration Responsible and Accountable Safety and Environmental Stewardship
4
Message to Shareholders
5
Customer Service
6
Our Customers Have Their Say
7
Reliability
8
Energy Efficiency
10
System Improvements
11
Safety
12
Bringing Electrical Safety to the Next Generation
13
Community Support
14
Helping Tomorrow’s Powerline Maintainers
15
Life at Waterloo North Hydro
16
Customer Communication
17
Corporate Sustainability
18
Partnerships
19
Future Growth
20
Value to Shareholders
21
Financial Reports
22
Financial Highlights – ($000’s)
23
Corporate Structure
PEOPLE SERVING PEOPLE Message to Shareholders As the LDC industry continues to change, key themes emerged at industry conferences; customer service offerings, customer engagement, DERS and grid modernization. Early in 2018, we continued to tweak the new CIS (Customer Information System) installed in 2017. Using the CIS flexibility, WNH implemented the Fair Hydro Plan message on customer bills in January, well ahead of the mandated date. Two months later, we released a new bill design that was easier for customers to read, only the third utility in the province to do this. By the end of April, WNH developed a customer self-serve portal, allowing customers to register on-line as new customers or schedule moves. The interactive module reduces errors, saves the customer time, and allows the customer to provide this information at their convenience, 24/7. Some customers are installing their own generation, known as distributed energy resources or DERs. We responded to provide customers with net metering, where WNH will net the generation at a customer location against the load consumption at the location on one bill. The new CIS will manage these transactions within the software, a process that most LDCs perform manually.
when there are power interruptions. In 2018, WNH continued installing distribution system automation to allow System Control Operators to remotely operate switches to isolate faults on the system and quickly restore power to the remaining customers. WNH saved over 2 million customer minutes of interruption with these tools, or a 20% reduction over what customers would have experienced with only manual methods. WNH also saw a transition as two long time members of the Executive team retired. Herb Haller retired as Vice-President of Engineering and Stations, and Dave Wilkinson as Vice-President of Operations. We thank both these gentlemen for their expertise and dedication to WNH. We ended the year with great results in a customer satisfaction survey conducted by a national firm. WNH earned a 96% overall customer satisfaction score. In the end, we come back to where we started in 1905, people serving people to provide power for a growing community. We want to thank the Board of Directors for their support for a progressive company, and thank the employees for their hard work and dedication to serve the customers of Waterloo North Hydro.
DERs will come in various technologies such as solar generation, gas generators, and battery storage to name the common DERs. WNH will use grid and software modernization to be the technical manager of the distribution grid and the financial manager of the energy transactions. Our modernized grid platform must quickly react to changing conditions as DERs come on and off our system, as well as rapidly restore service
4
Michael Pley Chair of the Board of Directors
Rene W. Gatien President & C.E.O.
CUSTOMER SERVICE Providing customers with a positive experience is at the heart of everything Waterloo North Hydro does. WNH staff are committed to creating value with each customer interaction.
customers. It contains everything a customer needs to manage their account, stay safe and keep their home as energy efficient as possible in one sleek, easy-toread document. Waterloo North Hydro’s customer support team is always available to provide a positive experience to customers during every interaction
699,474 Bills Issued
The industry is changing and customer demands are changing with time. Technological advancements, increased use of social media and expectations of 24-hour access to information have changed the way WNH interacts with its customers. In 2018, WNH continued adapting to a changing customer landscape with the introduction of several new tools. In late summer 2018, just as the annual influx of students into area universities began, WNH published a New Customer Welcome Package. The package is provided to all customers moving into the service territory and is available through the corporate website to existing
99.97% Billing Accuracy
In addition to the Welcome Package, WNH also improved the moving experience for all customers. We revamped the online forms for all types of move requests. The integrated forms are now easier to complete and have quicker processing times for both customers and staff. Additionally, each move request form includes an automated email to the customer outlining the expected processing time, the details of the request and contact information should the customer require any additional assistance or follow-up. Providing tools to allow customers to access and manage their accounts online at any time from any place they can connect to the internet, continued to be a
focus in 2018. The number of customers registered for My Account increased by more than 6,000, and the number of eBilling customers grew to more than 17,000, or 30% of all WNH customers. Enrollments for both Pre-Authorized Payments and Equal Billing Payments also increased in 2018. We once again surpassed the Ontario Energy Board’s Service Quality Indicators for 2018.
SERVICE QUALITY INDICATORS 100% 80% 60% 40% 20% 0%
Conn. of New Service
U/G Cable Locates
Telephone Access
OEB Target
Written Responses
Appointments Emergency Met Responses
2018 Actual
5
OUR CUSTOMERS HAVE THEIR SAY Every two years, Waterloo North Hydro completes a survey of its customers to gauge their satisfaction with our current customer service efforts and to help us better understand the shifting priorities of area residents and businesses. The results of the survey not only show how WNH is meeting the needs of its customers, but also helps the organization better understand the people we serve. The 2018 survey looked at customer satisfaction, reliability, communication with customers, billing and account concerns, and other aspects of the services WNH provides. WNH ranked well above both the provincial and national rankings in all categories, with a 96% overall customer satisfaction score. This is an increase over the 2016 survey result of 92% and well above the provincial average of 91%. The results of the survey and the opinions gathered from customers across our service territory will help shape the organization’s path moving forward as it continues to meet the evolving needs of the modern-day customer.
6
2018 CUSTOMER SATISFACTION SURVEY RESULTS
94%
SAY WE HANDLE OUTAGES AND RESTORE POWER QUICKLY
96%
87%
National Average 91%
CREDIBILITY AND TRUST RANKING National Average 82%
CUSTOMER SATISFACTION RATING
90%
SAY WE’RE AN EASY COMPANY TO DO BUSINESS WITH
87%
CUSTOMER SATISFACTION WITH THEIR MOST RECENT EXPERIENCE National Average 82%
RELIABILITY
12,140
Keeping the lights on for our business and residential customers is the main priority for Waterloo North Hydro and a focus in everything we do. Our commitment to innovation and making important system improvements have helped us maintain the high level of quality service our customers have come to expect. The Control Room is staffed 24 hours a day, seven days a week, 365 days a year, helping to limit the length and severity of power interruptions.
AVERAGE OUTAGE DURATION FOR WNH CUSTOMERS 2018
1.12 Hours
2017
0.54 Hours
2016
0.96 Hours
2015
0.6 Hours
2014
0.56 Hours
0
0.4
0.8 Hours
1.2
WNH reported 7,161,955 Customer Minutes of Interruption (CMI) in 2018. This is an increase over the CMI reported in 2017. Two major events, including an ice storm in April and a significant wind storm in May that caused trees to fall throughout our territory, accounted for more than 50% of the total CMI in 2018. In both cases, the expertise and dedication of our crews and control room staff helped to restore power from these major outages quickly and safely. In addition to serving our customers, we were proud to offer assistance to the New York Power Authority in March as the state restored power following a series of storms that caused broken poles, downed wires and tree damage that left many thousands of New York residents without power. WNH sent four crews of Powerline Maintainers to assist in restoring power following this catastrophic event.
Locate requests
84
73
Forestry appointments made
microFIT connections
561
6
New services connected
FIT connections
Two crews of Powerline Maintainers headed to New York state to help restore power after a major storm in March 2018
7
ENERGY EFFICENCY Waterloo North Hydro understands the important role that energy efficiency plays in meeting the needs of the modern customer. WNH offers a varied slate of programs designed to help all customers understand how they are using electricity, and provides advice on where and how to make improvements so they can better manage their energy costs.
Business Customers were offered dynamic savings through several Save on Energy Programs, including the Small Business Lighting Program, the Business Refrigeration Incentive Program, High Performance New Construction, Process and Systems Upgrade, the Audit Funding Program, and the Retrofit Program. WNH also provided customers with a number of valuable free services including basic walk throughs, detailed facility assessments, project or system monitoring and application and program support. Throughout the year, WNH collaborated with neighbouring utilities to encourage business customers to enhance their energy efficiency knowledge through a number of training and information sessions.
In 2018, WNH introduced the Poolsaver Program to residential customers and continued to promote savings opportunities through Save on Energy’s Deal Days Instant Discount Program, Heating and Cooling Incentive, and New Home Construction programs, as well as through various retail events throughout the year. Customers were also encouraged to receive free energy efficiency upgrades to their home, where applicable, through the Home Assistance Program.
The cost of power has doubled over the last decade while WNH distribution rates have tracked closely to CPI $100
Cost of Power Rates $
$90
Subsidy of Fair Hydro Plan
$80 $70 $60
TOU Rates $
$50
Cost of Power rates adjusted by CPI (Ontario) $
$40
WNH Distribution Rates $
$30 WNH Distribution Rate if Adjusted by CPI (Ontario) $
$20 $10 $0
2006 8
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2018 ENERGY EFFICIENCY PROGRAM HIGHLIGHTS
BUSINESS
RESIDENTIAL
Number of homes that could be powered in one year from energy savings
2,364
9
SYSTEM IMPROVEMENTS Upgrading and enhancing our distribution system to minimize the frequency and severity of power interruptions is an ongoing effort for Waterloo North Hydro. Our continued investment in distribution automation, through the use of SCADA* controlled Electronic Vacuum Reclosers (EVRs) and Electronic Vacuum Switches (EVSs) has led to a significant reduction in Customer Minutes of Interruption over the past two years. In 2018, the use of EVRs and EVSs saved 2,006,050 CMI, which is the equivalent of 35 minutes of interruption per customer. In total, WNH has 87 SCADA controllable field devices. WNH is continuing its efforts to introduce automation to the system with the implementation of a Fault Location, Isolation, and Service Restoration (FLISR) system in 2018, which will lead to a further decrease in customer interruption minutes in 2019. System improvements will continue through the coming years with EVRs being placed on all feeders to provide customers a self-healing network in the event of a power interruption. * Supervisory Control and Data Acquisition
THE USE OF EVRs SAVED WNH CUSTOMERS 2,006,050 CMI IN 2018 2 ,006,050
2018
d
1,225,090 minutes saved
2017 1,619,153 minutes saved
2016 404,514 minutes saved
2015 0
2,000,000
4,000,000
6,000,000
Outage Minutes With EVRs
8,000,000
10,000,000
12,000,000
Outage Minutes Without EVRs
Total Minutes Saved Since 2015 = 5,254,807 10
minutes save
SAFETY Nothing is more important than the safety of Waterloo North Hydro’s employees, and the public we serve. We believe all injuries are preventable and zero injuries is how we do business. This is clear in the fact that WNH experienced zero lost-time injuries in 2018, for the fifth consecutive year. Safety training is ever-changing and WNH ensures its employees are kept up-to-date on changing policies and hazards through monthly Health, Safety and Environment meetings, document reviews and
communication material placed throughout the service centre. WNH completed more than 3,300 training hours in 2018, which is more than 26 hours per employee. The organization’s commitment to safety stretches beyond employees to include the public. WNH, along with neighbour utilities, held a safety breakfast for contractors, assisted with electrical safety training for First Responders and conducted presentations at various community events, including farm safety days, and municipal open houses.
Safety is always the top priority for staff working in the field, this includes wearing the proper protective equipment when working in a transformer station or on an outdoor job site.
0
Hours lost to injury
26
Hours of training offered per employee
75%
Of customers satisfied with the amount of safety information provided
A Protection and Control Technologist makes repairs at one of Waterloo North Hydro’s transformer stations.
11
ELECTRICAL SAFETY POSTER CONTEST WNH enhanced its relationship with the next generation of customers by introducing a School Electrical Safety Poster Contest. The contest Waterloo North Hydro’s “’Lectric Larry” brings unmatched enthusiasm and excitement to the electrical safety presentations he does for students and community groups across the organization’s service territory.
BRINGING ELECTRICAL SAFETY TO THE NEXT GENERATION Electrical safety affects everyone. Waterloo North Hydro understands this and shares the importance of safety with future generations through its renowned School Electrical Safety Program, featuring a fun, interactive presentation from “’Lectric Larry.” WNH gives presentations to all varieties of schools in its service territory, including public, private, catholic and Mennonite schools. In 2018, the program reached 3,548 students, or 85% of the students in WNH’s service territory. The program was also expanded to include presentations for a local Fire Hall, the Optimist Club of Waterloo and the Waterloo Rural Women Farm Show.
was designed to build off the relationship created through ‘Lectric Larry’s presentations and increase the level of education and promotion of key safety programs and messaging. The contest was open to students in Grade 1through 8 in all schools across the WNH service territory, and asked students to design a poster showing the importance of Call Before You Dig. A number of excellent submissions were received from schools in both the Public and Catholic School Boards. The winning selections were
18,903
Students participated in the School Electrical Safety Program since 2012 12
145
Presentations in 2018
used to spread important safety messages to all customers and their families through bill inserts, social media posts and website content.
$15,159
COMMUNITY SUPPORT
Raised for United Way Region Communities
$2,212
Raised for the Food Bank of Waterloo Region
Waterloo North Hydro takes pride in supporting community groups, charities and educational opportunities across its service territory. In 2018, WNH employees raised more than $15,000 for the United Way Waterloo Region Communities through a month-long fundraising campaign that included a chili cook-off, silent auction, turkey raffle, bake sale, and pancake breakfast. As part of the fall eBilling campaign WNH donated $2 to the Food Bank for every customer that registered for eBilling. As a result of the promotion, WNH donated the equivalent of 6,636 meals to the Food Bank of Waterloo Region. In addition to charitable campaigns, WNH also plays an active role in the business communities it serves. WNH is a participating member of the Waterloo Region Electrical Association, Salute to Business in the Township of Woolwich and the Greater Kitchener-Waterloo Chamber of Commerce. There are three large post-secondary institutions in WNH’s service territory and throughout the years, the organization has developed a strong relationship with each of them including ongoing support for the Wilfrid Laurier University business program, scholarships for students at the University of Waterloo and scholarships and program guidance for Conestoga College’s Powerline Technician program. WNH is proud to support and sponsor many programs and initiatives at each school.
Rene Gatien, Waterloo North Hydro’s President and CEO presents a cheque for $2,212 to the Food Bank of Waterloo Region. The donation was a result of WNH’s fall eBilling campaign.
WNH is also proud to support the following organizations and programs across Waterloo Region •• •• •• •• •• •• ••
The City of Waterloo Open House Bell Let’s Talk Day THEMUSEUM’s Kids Inspiring Change program The Mighty Machine Show University of Waterloo’s Engineering Program Conestoga College’s Powerline Maintainer Program University of Waterloo WEConnect Summer Program
“Initiatives such as Waterloo North Hydro’s ebilling campaign is just one example of how we – as a community – work together to help those unable to put food on the table. The reality is, hunger can impact anyone at any time and we thank Waterloo North Hydro and their customers for helping to ensure no one goes hungry.” Wendi Campbell, CEO, The Food Bank of Waterloo Region
A bake sale(top), pancake breakfast(middle), and silent auction were among the many fundraising activities staff participated in during the 2018 United Way Campaign.
13
HELPING TOMORROW’S POWERLINE MAINTAINERS Waterloo North Hydro and Conestoga College have built a close relationship over a number of years. WNH’s continued support helps the next generation of powerline maintainers stay up-to-date on the latest training methods and receive real-world experience. Beginning in 2010, WNH has made an annual donation of equipment to Conestoga College, including trucks and trailers that are scheduled to be replaced by newer models.
4
Trucks donated in 2018
8
Years of annual scholarship program
2
Scholarships offered in 2018
9
Graduates employed by WNH 14
This equipment and surplus materials are provided to the college to help fund the program and for use by students training to be powerline technicians. In addition to vehicle and material donations, WNH shares its industry knowledge and the experience of its staff with the students. The utility has provided instructors to the program for several years, former employees are program coordinators and current employees act as program advisors.
WNH also helps to ensure the continued success of the program through two yearly scholarships given to deserving students in each class. Graduates from the Conestoga program are working for utilities across the province, including WNH. Currently, nine Conestoga Powerline Technician graduates are employed by WNH as powerline maintainers or apprentice powerline maintainers. Waterloo North Hydro donated four trucks to Conestoga College’s Powerline Technician Program in 2018. Nine current employees of WNH are graduates of the program.
LIFE AT WATERLOO NORTH HYDRO Staff participated in a Wear Your Jersey To Work day in support of the Humboldt Broncos. The organization holds a number of staff barbecues, breakfasts and other events throughout the year. Staff listened intently and learned from the many vendors in attendance at Waterloo North Hydro’s annual Wellness Fair.
Waterloo North Hydro attracts the best and brightest employees to meet its goal of excellent service. The organization continues to invest in its employees and offers training and resources focused on physical and mental health to ensure all staff can achieve at the highest of levels. The organization’s wellness program combines physical and mental health training for all employees. Weekly fitness classes, private wellness consultations, financial wellness seminars and healthy eating classes are just some of the offerings. Employees can also receive bursaries for physical fitness programs outside of the workplace.
4,665,966
Total steps taken in the Pedometer Challenge
The Wellness Program goes beyond employee wellness to a focus on the local environment. WNH holds an annual Eco-Challenge that includes litter-free lunch campaigns, a carpool challenge, a free bike tune-up, and a neighbourhood garbage clean up. The Eco-Challenge is designed to allow all employees to complete activities that contributes to reducing their environmental impact. WNH’s long-standing wellness program has made it a leader amongst local businesses in employee engagement and well-being. As a result, WNH has been named one of Waterloo Region’s Top Employers for each of the past three years.
1,261 km
Sustainably travelled through Eco-Challenge
272
Employee-led fitness classes in 2018
15
CUSTOMER COMMUNICATION
6,507
Twitter followers
Customers want to receive important information from their utility whenever and wherever they are. Waterloo North Hydro has responded to these changing demands with a robust and evolving customer communication strategy.
(up 200 this year)
563 Tweets
WNH’s interactive outage map provides real-time updates on planned and unplanned power outages for customers 24/7. The organization also keeps customers informed through its Twitter and Facebook pages. Messages regarding power outages, electrical safety, energy efficiency, account management, payment times and community information are shared with followers through daily social media posts.
1,495
Facebook followers
The corporate website is an important information resource for customers and improvements made in 2018 allow for the site to better serve the needs of customers. Updated customer forms allow for a better experience for customers submitting move or service requests, and a new Customer Welcome Package, available online at any time, provides new and existing customers with everything they need to manage their account. As customer expectations continue to change, WNH is committed to adapting our communication efforts to meet these requirements.
Jan
16
Feb
Mar
Apr
2,867
Website page views during May 4 outage. Customers going online to find information on outages made this the busiest day of the year for web traffic
May
Jun
Jul
CORPORATE WEBSITE VIEWS IN 2018
Aug
Sep
Oct
Nov
ov
CORPORATE SUSTAINABILITY Waterloo North Hydro is an industry leader in sustainability and environmental stewardship. Our employees take a key role in promoting environmental awareness both at the office and in the community and our energy efficiency team has taken an active role in promoting energy efficiency amongst our business and residential customers.
the building’s construction in 2011. Additionally, waste reduction efforts by WNH employees led to more than 20,000 kg of waste being recycled rather than sent to landfills in 2018. This is a diversion rate of more than 90 per cent and shows a marked improvement over diversion rates in previous years.
The WNH Administration Office and Service Centre is a shining example of our commitment to the environment. The building is LEED Silver certified and commitments to repurposing storm water and decreasing our electricity usage have led to decreases in consumption levels since
The organization’s continued efforts to save energy and reduce operational costs help lower our environmental footprint and allow WNH to maintain savings that are passed on to the customers we serve.
ELECTRICITY CONSUMED (kWh) 1,000,000
3.1% 1,092,637
750,000
1,058,465
1.7% 1,076,804
WATER CONSUMPTION (litres) 12.5% 942,159
20.4% 867,925
1,000,000 750,000
500,000
500,000
Dec 250,000
250,000
0
2014
2015
2016
2017
2018
0
904,313
2015
9.6%
817,418
2016
20.1%
722,741
2017
11.0%
802,071
2018
17
Waterloo North Hydro is a proud member of a number of industry collaboratives and partnerships. WNH’s active participation in these groups allows for the sharing of ideas and technologies that keep WNH on the cutting-edge of industry best practices and help to improve the utility’s service to its customers.
PARTNERSHIPS
GRAND RIVER ENERGY
GRIDSMARTCITY
Grand River Energy (GRE) is a joint venture of Energy + Inc, Kitchener Power Corp and Waterloo North Hydro Holding Corporation. The venture’s mission is to provide and promote advanced energy technology and services that support the economic well-being of our customers and communities we serve. GRE provides full solutions for advanced technologies, including Solar Net Metering, Virtual Net Metering, Energy Storage, Sub Metering, Electric Vehicle Charging and Combined Heat and Power projects.
WNH is one of more than 30 organizations, including 14 electricity distributors, which make up the GridSmartCity Cooperative. The Cooperative aims to create efficiencies for utilities through collaboration, without amalgamation, allowing utilities to maintain independence in the towns and cities they serve. The group brings together electricity distributors, smart grid innovators, commercial business, academics, local government and other key partners to enhance the efficiency and sustainability of the local electricity infrastructure.
In addition to the above groups, WNH is a proud member of the following organizations:
18
Greater Kitchener Waterloo Chamber of Commerce
UTILITIES STANDARDS FORUM Utilities Standards Forum (USF) is a forum of electricity distribution members established for collaboration and mutual support. WNH was a founding member of the USF in 2004 in response to changing regulations around engineering standards. USF has progressed to include IT and Regulatory forums and has grown from 12 LDCs to 51 of the 63 LDCs in the province, including Alectra, Toronto Hydro, and Hydro Ottawa
Waterloo Regional Electrical Association
Association of Utility Safety Professionals
SMART ENERGY CONSUMER COLLABORATIVE In 2018, Waterloo North Hydro became one of more than 90 members of the Smart Energy Consumer Collaborative (SECC). The SECC is a non-profit organization that seeks to learn the wants and needs of energy consumers in North America, encourage the collaborative sharing of best practices in consumer engagement among industry stakeholders, and educate the public about the benefits of the smart grid.
Electricity Distributors Association
Sustainable Waterloo Region
FUTURE GROWTH Waterloo North Hydro’s connections to all aspects of its service territory continue to strengthen. Ensuring its infrastructure is able to adequately prepare for future growth while continuing to serve existing customers is an important part of the organization’s overall corporate vision. In 2018, WNH invested more than $16.5 million in new and upgraded infrastructure to ensure an adequate and reliable supply of power is available to meet customer needs and enable economic growth in the region. Capital investments are used to replace aging poles, overhead lines and underground distribution systems in residential subdivisions, transformers and substation equipment.
CUSTOMER GROWTH
CAPITAL INVESTMENTS ($000’S)
60,000 $30,000
55,000
5% Increase 54,698
55,433
57,007
57,436
56,196
$20,000
$21,127
$24,275
$27,705 $17,422
$16,555
2017
2018
$10,000
50,000
2014
2015
2016
2017
2018
0
2014
2015
2016
19
VALUE TO SHAREHOLDERS Waterloo North Hydro continues to achieve strong financial performance by balancing system reliability and service while minimizing controllable costs, including costs associated with operating, maintenance and administration. For the year ending December 31, 2018, net income from operations amounted to $7,551,000 for a return on equity of 8.02%.
RETURN ON EQUITY 10.0% 7.5%
8.0%
9.5%
8.04%
8.02%
2017
2018
5.0% 2.5% 0
20
8.6%
2014
2015
2016
FINANCIAL REPORTS ELECTRICITY SALES - GWh Flat electricity sales over the past five years 1,500 1,400
1,480
1,489
1,490
2014
2015
2016
1,511 1,454
1,300 1,200
2017
2018
Waterloo North Hydro delivered approximately 1,511 gigawatt-hours (GWh) of energy to 57,436 customers in 2018. WNH’s customer base has seen steady growth in recent years, with a growth rate of 5.0% over the past five years. While the customer base has continued to grow, the success of conservation programs and the prevalence of energy efficiency products for the home, has led to a slow decrease in customer consumption. Population growth within WNH’s service territory is expected to continue to grow steadily, allowing for sustainable revenue generation. Energy Consumption increased 3.9% from 1,454 GWh in 2017 to 1,511 GWh in 2018. Peak demand increased 7.5% from 270.3 MW in 2017 to 290.7 MW in 2018. This increase was caused by an unusually cold winter and a hot summer. 21
FINANCIAL HIGHLIGHTS - ($000’S) ELECTRICITY SALES
DISTRIBUTION REVENUES
$200,000
$40,000
$150,000
$155,509
$170,390
$187,524
$171,774
$168,153
$30,000
NET INCOME FROM OPERATIONS $10,000
$33,762
$33,387
$35,769
$35,915
$37,565
$100,000
$20,000
$5,000
$50,000
$10,000
$2,500
0
0
2014
2015
2016
2017
2018
2014
2015
CAPITAL ASSETS
LONG TERM DEBT
$300,000
$100,000
$225,000 $150,000 $186,263
$201,663
$220,094 $227,726
$235,222
$75,000 0
22
2014
2015
2016
2017
2018
$75,000
$91,213
2016
2017
2018
0
$96,326 $100,070
$104,390 $106,273
2014
2015
$7,379
2016
$90,512 $75,000
$25,000
$25,000 0
2015
$7,030
$100,000
$50,000
2014
$7,134
2017
$7,551
2018
SHAREHOLDER EQUITY
$50,000
0
$8,350
$7,500
2016
2017
2018
$83,059
$84,969
2014
2015
2016
$95,542
2017
$99,234
2018
CORPORATE STRUCTURE The Board of Directors of Waterloo North Hydro Inc. are appointed by the WNH Holding Corporation and are responsible for the overall direction of the company. Day-to-day leadership and management of the corporation are delegated to the Chief Executive Officer and the Leadership Team
Bank Canadian Imperial Bank of Commerce 1 King St E., Kitchener
Counsel
Leadership Team (l-r) Herbert Haller, Outgoing VP Engineering & Stations; Dorothy Moryc, Incoming VP Engineering & Stations; Marianne Blasman, VP Information Technology; Rene W. Gatien, President & CEO; David R. Wilkinson, Outgoing VP Operations; Albert P. Singh, VP Finance and CFO; John Stephens, Incoming VP Operations
Miller Thomson LLP 295 Hagey Blvd, #300, Waterloo
Auditor KPMG 115 King St S., Waterloo
Board of Directors (l-r) Tim Martin; Michael Pley (Chair); Joe Nowak (Township of Wellesley Mayor); Sandy Shantz (Township of Woolwich Mayor); Dave Jaworsky (City of Waterloo Mayor); Arnold Drung; Jeff Henry; Micheal Kelly (Vice-Chair); Carol Leaman 23
526 Country Squire Road, Waterloo, ON N2J 4G8
Connect with us: www.wnhydro.com | facebook/wnhydro | twitter: @wnhydro | 519-886-5090