Drainage Services and EPCOR Water Services

ReviewCity Administration Presentation

City Council MeetingSeptember 13, 2005

• 1997 – Preliminary Study completed – EPCOR chooses not to proceed

• 2000 – City Council decides against undertaking a review

• 2004 – EPCOR and City agree to conduct joint review

History

Operating Principles

• Provider of essential/core services

• Services to People• Planned Growth• Economic

Development• Infrastructure &

Physical Environment

• Leadership, Regional Cooperation, & Planning

• Provide reliable, regulated and competitive services

• Increase shareholder value and growth

• Execute aggressive growth strategy

• Leader in energy and related services

City of Edmonton EPCOR

Governance

• Elected officials accountable to citizens

• Council decisions transparent in public arena

• Elected officials advance social policy

• Senior officers accountable to Board of Directors. Board responsible for stewardship of company

• Board manages business affairs of the company in-private.

• Corporation exists to increase revenues and shareholder value.

City of Edmonton EPCOR

• Study looks at four models: Status quo Drainage – to - EPCOR Water EPCOR Water – to – City New utility (water and drainage)

• Consultant – PricewaterhouseCoopers hired January 2005

Drainage Services EPCOR WaterServices Study Background

• Consultant could not conclude whether any alternative better than City retaining Drainage (status quo).

• Of the three joint utility options, Consultant feels Drainage-to-EPCOR best option.

PricewaterhouseCoopers Study Conclusion

1. Customer Service

2. Development industry impact

3. Regional relationships

4. UDI5. PAC and SSSF6. Financial

Reward versus Risk Parameters

7. Environmental liability

8. Grant funding9. Local

Improvements10.Mitigation

strategies11.Corporate

support12.Shared

Services