Hydro One Limited · TSX:H
Hydro One — Ontario Energy Network (December 2004)
17 slides from Hydro One's conference presentation, Dec 6, 2004
Slide 1: Ontario Energy Network
Ontario Energy Network December 6, 2004 Tom Parkinson President & CEO Hydro One
Slide 2: Hydro One 2002
Hydro One 2002 • Crisis • Bloated • Lack of staff pride • Complex corporate structure • Confused & unrealistic strategy • Abandoned IPO • Abandoned strategic sale • Mistrust and suspicion – all stakeholders 2
Slide 3: Mission
Mission To be the best transmission and distribution company in North America in terms of: • Safety, • Reliability, • Great Employees, • Customer Service, and • Shareholder Value 4
Slide 4: Delivering Results: Safety
Delivering Results Safety • Target: eliminate lost time accidents by 2006 – 2004 performance 70% better than 2001 – Serious incidents 90% better • 2003 CEA Report – Hydro One has lowest serious incident rates in the industry 4
Slide 5: Delivering Results: Customer satisfaction
Delivering Results Customer satisfaction: • Large customer from 42% in 2002 to 68% mid 2004, and on target for 70% Year End • Mid-size: from 58% to 74% • Residential: continue to track in the 80% range Why was Florida so special? 5
Slide 6: Florida Hurricane Restoration
Florida Hurricane Restoration 6
Slide 7: 7
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Slide 8: Performing Well
Performing Well • Financial – 2001-2003 achieved significant cost savings – 2003 paid over $450 million toward Stranded Debt – Maintaining Strong Credit Ratings 8
Slide 9: Ontario Grid Control Centre
Ontario Grid Control Centre On Time and On Budget 9
Slide 10: Parkway TS Start of Construction - Spring 2004
Parkway TS Start of Construction - Spring 2004 10
Slide 11: Parkway TS: On Time and On Budget
Parkway TS November 2004 On Time and On Budget 11
Slide 12: T&D enables new supply
T&D enables new supply • Supporting government’s efforts to enhance supply solutions in Ontario • T&D facilitates generation – we do not compete • Working to address barriers to Distributed Generation • Reinforcements & upgrades necessary to enable new supply 12
Slide 13: T&D is essential infrastructure
T&D is essential infrastructure • Long-term, capital intensive • Proactive replacement & refurbishment guided by; – 10 Year Plan a living document – On-going consultation with our customers & key stakeholders • Core capital and potential Tx development expenditures over the next 3-years in order of
Slide 14: Planning challenge
Planning challenge • Transmission is essential, long-term, capital intensive: – the “invisible hand of the market” ?? – some central planning is essential – OPA • Planning must anticipate future needs • Rights of way & environmental & regulatory approvals can take years • Need streamlined, efficient
Slide 15: Bill 100 & Hydro One
Bill 100 & Hydro One • OPA – Conservation: implementing solutions – Generation Contracts - connections – Integrated Planning – network development • Renamed IESO – I will be leaving the Board • Industry Evolution: keep it simple 15
Slide 16: Going Forward – Key Themes
Going Forward – Key Themes • Generation & Conservation are Priority 1 • Transmission infrastructure is Priority 2 • We need more people “doing” and less people “watching” • Money is scarce – maximize spend on physical infrastructure, not on process 16
Slide 17: Hydro One 2007
Hydro One 2007 • Best T&D company in North America • Best safety record in Canada • Top quartile transmission reliability • Customer satisfaction – 90% Generation – 90% Major load customers – 90% Mid-size customers – 80% Residential customers • Employee satisfaction 100% • Shareholder returns – Top