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Scorecard - Alectra Utilities Corporation 10/21/2020

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Scorecard - Alectra Utilities Corporation 10/21/2020 Scorecard - Alectra Utilities Corporation 10/21/2020 Target Performance Outcomes Performance Categories Measures 2015 2016 2017 2018 2019 Trend Industry Distributor Customer Focus New Residential/Small Business Services Connected 99.47% 99.59% 97.02% 94.57% 92.59% 90.00% Service Quality on Time Services are provided in a Scheduled Appointments Met On Time 95.97% 99.47% 99.31% 99.31% 98.75% 90.00% manner that responds to Telephone Calls Answered On Time 80.73% 80.61% 79.52% 77.67% 75.78% 65.00% identified customer preferences. First Contact Resolution 82.76% 80.86% 81.73% 86.18% 85.1% Customer Satisfaction Billing Accuracy 99.54% 99.56% 99.64% 99.59% 99.58% 98.00% Customer Satisfaction Survey Results 91.13% 90.76% 88.05% 90.89% 93% Operational Effectiveness Level of Public Awareness 78.60% 78.59% 81.27% 81.27% 82.00% 1 Safety Level of Compliance with Ontario Regulation 22/04 C C C C C C Continuous improvement in Serious Electrical Number of General Public Incidents 8 6 9 13 20 6 productivity and cost Incident Index Rate per 10, 100, 1000 km of line 0.388 0.289 0.429 0.621 0.950 0.283 performance is achieved; and Average Number of Hours that Power to a Customer is distributors deliver on system 1.00 0.83 0.80 1.04 1.07 0.91 System Reliability Interrupted 2 reliability and quality objectives. Average Number of Times that Power to a Customer is 1.23 1.09 1.11 1.33 1.26 1.26 Interrupted 2 Asset Management Distribution System Plan Implementation Progress 108.28% 96.16% 95.82% 89.01% 114% Efficiency Assessment 3 3 3 3 3 Cost Control Total Cost per Customer 3 $672 $676 $676 $681 $716 Total Cost per Km of Line 3 $32,753 $33,041 $33,523 $33,860 $15,212 Conservation & Demand Public Policy Responsiveness Net Cumulative Energy Savings 4 21.00% 47.00% 81.00% 95.00% 100.00% 1,703.58 GWh Management Distributors deliver on obligations mandated by Renewable Generation Connection Impact Assessments government (e.g., in legislation Connection of Renewable Completed On Time 98.34% 91.89% 100.00% 100.00% 100.00% and in regulatory requirements Generation imposed further to Ministerial New Micro-embedded Generation Facilities Connected On Time 94.70% 97.11% 98.40% 96.87% 78.26% 90.00% directives to the Board). Financial Performance Liquidity: Current Ratio (Current Assets/Current Liabilities) 1.02 0.93 1.22 0.95 0.82 Financial Ratios Leverage: Total Debt (includes short-term and long-term debt) Financial viability is maintained; 1.31 1.37 1.26 1.17 1.16 and savings from operational to Equity Ratio effectiveness are sustainable. Profitability: Regulatory Deemed (included in rates) 9.09% 9.06% 8.91% 8.95% 8.95% Return on Equity Achieved 7.79% 7.91% 8.49% 7.69% 7.21% 1. Compliance with Ontario Regulation 22/04 assessed: Compliant (C); Needs Improvement (NI); or Non-Compliant (NC). Legend: 5-year trend 2. The trend's arrow direction is based on the comparison of the current 5-year rolling average to the distributor-specific target on the right. An upward arrow indicates decreasing up down flat reliability while downward indicates improving reliability. Current year 3. A benchmarking analysis determines the total cost figures from the distributor's reported information. target met target not met 4. The CDM measure is based on the now discontinued 2015-2020 Conservation First Framework. 2019 results include savings reported to the IESO up until the end of February 2020. 2019 Scorecard Management Discussion and Analysis (“2019 Scorecard MD&A”) The link below provides a document titled “Scorecard - Performance Measure Descriptions” that has the technical definition, plain language description and how the measure may be compared for each of the Scorecard’s measures in the 2019 Scorecard MD&A: http://www.ontarioenergyboard.ca/OEB/_Documents/scorecard/Scorecard_Performance_Measure_Descriptions.pdf Scorecard MD&A – General Overview In April 2016, Enersource Hydro Mississauga Inc. (“Enersource”), Horizon Utilities Corporation (“Horizon Utilities”), and PowerStream Inc. (“PowerStream”) filed an application (the “MAADs Application”;EB-2016-0025) pursuant to the Handbook to Electricity Distributor and Transmitter Consolidations (the “MAADs Handbook”) seeking approval to amalgamate to form Alectra Inc., and for Alectra Inc. to purchase and amalgamate with Hydro One Brampton Networks Inc. (“Hydro One Brampton”) under section 86 of the Ontario Energy Board Act, 1998. Alectra Inc. is the parent of Alectra Utilities Corporation (“Alectra Utilities”). On December 8, 2016, the Ontario Energy Board (“OEB”) issued its Decision and Order in respect of the MAADs Application. In the MAADs Decision, the OEB granted the requested approvals. It also approved a rebasing deferral period of 10 years. On January 31, 2017, Alectra Utilities was incorporated under the Business Corporations Act (Ontario) by amalgamation of the legacy utilities: PowerStream; Enersource; and Horizon Utilities. On February 28, 2017, the Corporation acquired 100% of the shares of Hydro One Brampton. A subsequent application was filed pursuant to the MAADs Handbook on March 7, 2017 (EB-2018-0014) seeking to amalgamate Guelph Hydro Electric Systems Inc. (“Guelph Hydro”) with Alectra Utilities Corporation. The OEB granted the requested approval and a rebasing deferral period of 10 years in a Decision and Order issued on October 18, 2018. The amalgamation was completed on December 31, 2018. For the 2017 reporting year, Alectra Utilities filed its first set of RRR data and Scorecard Management Discussion and Analysis (“Scorecard MD&A”) as a merged entity. The 2019 Scorecard is Alectra’s first to include Guelph Hydro. The utility scorecard measures a utility’s performance over time and presents the five most recent years of available data for each performance measure. In 2019 Alectra Utilities’ performance exceeds each of the applicable industry-specific targets for each area of the Customer Focus component of the Scorecard. Alectra Utilities’ scores on the annual Customer Satisfaction Survey have steadily increased each year since its merger in 2017, signaling that Alectra is successfully implementing measures that meet the evolving needs of its customers. 2019 Scorecard MD&A Page 1 of 10 Alectra Utilities has experienced declining results in the Serious Electrical Incidents and System Reliability performance measures. Since 2014, legacy utilities and now Alectra Utilities have experienced a trend of worsening system reliability driven by a growing number of underground cable failures and the increasing impacts of adverse weather conditions. Alectra Utilities has developed investment plans to mitigate this negative reliability trend through underground system rehabilitation and renewal, as well as renewal of overhead systems prone to failure and outages due to adverse weather conditions. Alectra Utilities serves over 1 million customers across a 1,900 sq. km service territory spanning 17 communities including Alliston, Aurora, Barrie, Beeton, Brampton, Bradford, Guelph, Hamilton, Markham, Mississauga, Penetanguishene, Richmond Hill, Rockwood, St. Catharine’s, Thornton, Tottenham and Vaughan. Service Quality New Residential/Small Business Services Connected on Time The OEB’s Distribution System Code (“DSC”) requires electricity distributors to complete a connection for new service under 750 volts within five days after all applicable service conditions are satisfied. This service quality standard must be met at least 90% of the time on an annual basis. In 2019, Alectra Utilities connected 92.59% of 8,044 eligible low-voltage residential and small business customers to its system within the five-day timeline. Scheduled Appointments Met on Time The OEB’s DSC requires that electricity distributors offer to schedule an appointment within a window of time that is no greater than four hours. The electricity distributor must arrive for the appointment within the scheduled timeframe 90% of the time. Of 10,523 appointments scheduled in 2019 requiring the presence of the customer, Alectra Utilities met 98.75% of these appointments with its customers within this timeframe. The work requested by customers in this category includes connect or reconnect services, meter reads, and other necessary work as requested by customers. As shown on the Scorecard, Alectra Utilities exceeded the target in 2019 and the upward arrow indicates improvement of the five-year average performance, attributable to strong customer-focused business processes and improvements with scheduling practices. Telephone Calls Answered on Time 2019 Scorecard MD&A Page 2 of 10 The OEB’s DSC requires that electricity distributors answer calls within 30 seconds, 65% of the time. The performance of this measurement is influenced by the volume of customer calls that are received by the call centre and are driven by factors such as billing inquiries, customer move ins and outs, news about the electricity market in the media, conservation and demand management programs and power outages, among other things. In 2019, Alectra Utilities’ Customer Service Representatives (“CSR”) received 769,870 calls from its customers, as compared to 764,999 calls in 2018. This represents a 0.6% increase in call volumes. Alectra Utilities’ CSRs answered 75.78% of incoming calls within 30 seconds. This performance exceeds the OEB target. Customer Satisfaction First Contact Resolution First Contact Resolution refers to the ability to resolve a customer query within a single call, thereby eliminating the need for a customer to follow up with further calls. The OEB does not provide a specific metric for First Contact Resolution (“FCR”). Distributors are permitted discretion as to how they report this measure, and it is anticipated that the OEB will develop a standardized reporting structure in the future. In determining FCR results, Alectra Utilities assesses the number of calls addressed at first contact and also utilizes customer surveys regarding the quality of service received based on the last time a customer contacted the utility.
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