Value Through Innovation:
Electricity Distribution
Companies of the Future
August 15, 2016
Key Messages
The Energy Sector is Transforming and PowerStream is Constantly
Adapting - Over the past number of years, in response to a changing
and dynamic environment, PowerStream has developed and
implemented unique and innovative energy solutions
Proven Change Agent - PowerStream energy solutions have enabled
behaviour change and supported the transformation of the energy
sector.
Integrated Solutions Provider - PowerStream’s proven skills and
ability to quickly develop and implement projects and programs to
drive program participation and behaviour change can be readily
applied to new challenges and opportunities
2
Energy Sector Transformation
Recap
Mega trends are driving the transformation, which is impacting traditional utility
strategies and business models
3
PowerStream’s Response: Create
the ‘Social Energy Network’
This confluence of factors is driving
a fundamental change in the
business model to an integrated,
intelligent, energy delivery network
(i.e. the social energy network).
The business model is achieved by
transforming from a traditional
Local Distribution Company, to an
integrated, innovative, energy
solutions provider, offering the
planning, design and
implementation of on and off-grid
energy services and solutions.
4
The Traditional Utility Model
The traditional utility model involves centralised generation and one-way
communication with the customer
5
PowerStream’s AMI/Smart
Meter Network
6
PowerStream’s
Smart Grid Strategy
7
The Evolving Utility Model
The evolving utility model involves de-centralised generation and
two-way communication with the customer, creating a world of
possibilities
8
Other Industry Disruptions are a
Learning Opportunity
Some companies failed to
adapt to disruptions
These companies under
estimated the pace or
impact of technological
change, and failed to
adapt to changing
customer demands
Some companies
successfully adapted
 These companies
leveraged existing
capabilities, brand
recognition and
customer relationships
to expand their scope
of operations and grow
Regulated industries
under stress today
 Uber is disrupting the
regulated taxi industry,
reaching a $50 billion
evaluation in five years,
before government
policy could be enacted
9
Proven Change Agent
Solar
Generation
Smart/Suite
Metering
PowerStream: Advancing
Alternate Energy Solutions
Microgrid
Smart Home
Technologies
CDM
Electric Vehicle
Integration
11
Penetanguishene Micro Grid Project
12
Penetanguishene Micro Grid Project
13
Strategic Partnership
Continuing to develop
Strategic Partnerships will
allow us to innovate and
develop new customercentric services and smart
grid solutions:
Micro Grids
Nano Grids
Renewable Generation
Battery Storage
Residential Energy
Management Programs
Big Data Analytics
KEPCO head office, located in Naju, South Korea
14
KEPCO - PowerStream
MOA Signing Ceremony
South Korea
15
Residential Solar Storage
IESO Conservation Fund for 20 homes:
-$500,000 grant to support pilot for 20 targeted homes in PowerStream territory
-5 KW solar array; Sunverge unit- 6.8 KW/11.4 KWH battery and EMS
-Aggregation of distributed assets to create a Virtual Power Plant
-Technology partner: Sunverge
- Installation partner: RBI
16
Solar Generation
Commercial Solar
-Total investment of $130M+
-91 Roof top Solar PV projects
-FIT Contracts from Independent Electricity System
Operator/Ontario Power Authority with 20 year
terms
-Grid Connected
-Largest roof top solar portfolio in Ontario owned
by an Ontario Electric Utility
-Located throughout Ontario – Geographically
diverse
17
PowerStream Solar PV Projects in
Commercial Operation
90 projects; 87,000 PV modules; 23 MWDC; 15 Million kWh generated
Electric Vehicle Integration
Electric Mobility
Vehicle-to-Home:
- First North American implementation of V2H
technology
- Power the office building from Nissan LEAF
- Integrated into the Cityview Microgrid
DC Quick Charger:
-
Cityview Office, Vaughan; free for public
Markham Civic Centre; $10/ hour
15 tons of GHG avoided
12 megawatt hours of electricity delivered
Fueled 80K+ kms of emission free driving
L2 Charger:
- Fleet of level 2 chargers at several PowerStream
office locations for employee use
19
Markham Level 3 EV Charging Station
20
PowerStream Public Level 3 EV Charger
21
Residential Energy Management
+
22
Smart Suite Metering
Smart Suite Metering
- Focus on new build condominiums
and commercial properties
- Largely out-sourced business
model
- Grown from sub metering
residential electricity to sub
metering electric, water, gas, BTU
and commercial water properties
23
CDM
Proven ability to drive program participation and behaviour change
-PowerStream has helped over 50% of our general service customers become more
efficient and grow their business:
‣Retrofit Program: 55% penetration among large (>250kW) customers
‣Small Business Lighting: ~20,000 businesses (54% penetration)
‣Business Refrigeration Program: ~1,300 small & medium businesses (~40% market
penetration) achieved in just 15 months
-Incented over 47,000 residential HVAC system upgrades and over 1 million
purchases of energy efficient lighting and controls product
-Helped 176,000 customers reduce their energy by providing them with insights on
their electricity usage and tips on how to become more efficient and reduce energy
costs
24
Ontario launches a cap-and-trade system
for GreenHouse Gas emissions
33
Ontario Greenhouse Gas
Reduction Targets
Ontario’s ‘cap and trade’ program will be linked with
other programs i.e. Quebec and California
33
PowerStream‘s Call to Action on
Climate Change
Climate Change Action Plan
-Community Grids
-EV Charging
-Dispatchable Solar
27
Integrated Solutions Provider
Utility of the Future
Integrated Solutions Provider
PowerStream is transforming into
a Next Generation Utility focused
on:
- Distributed energy resources
with centralized intelligence
- Delivering integrated energy
solutions; not only electricity
- Enabling Smart Cities, Smart
Communities, Net Zero Strategy
- Providing Customers with
Leading Edge, Innovative Energy
Choices
- Offering a bi-directional,
networked energy delivery
system leading to transactive
energy
29
PowerStream
Who We Are Today
- An energy company that provides electric
power and energy related services
- Provides service to more than 380,000
customers primarily residing or owning
business in communities located
immediately north of Toronto and in
Central Ontario
- Jointly owned by the municipalities of
Barrie, Markham and Vaughan
- More than 560 employees
- Over $1.3 billion in assets
- Service area of 854 square kilometres
encompasses a population of
approximately 1,000,000
Who We Will Be: MergeCo
- 2nd largest
municipally owned
electric utility
company in North
America, based on
number of customers
- 1 million customers
- $2.7 billion in assets
- $2.5 billion rate base
32
Shareholders Sign Legal Agreements to Consolidate Leading
Ontario Utilities
33
MergeCo utilities already responding to changing industry
in various ways
-
-
Predecessor utilities have taken first step in adapting
to evolving sector by embarking on this merger
-
Companies are responding to increased risks posed
by climate change:
Enersource joined forces with Partners in Project
Green
Horizon Utilities developed a Climate Change
Adaptation Strategy and Implementation Plan
PowerStream exploring opportunities through pilot
projects related to smart grid technologies, smart
home energy management, and microgrids
Each company is actively providing a number of
energy solutions in addition to electricity distribution
and are each applying smart grid solutions to
enhance distribution services
• Municipal street lighting
• Engineering consulting
• Construction and maintenance of
electrical distribution systems
• Metering Services
• Solar
• Conservation and demand
management
• Solar
• Metering services
Customers and Communities
Benefit
Reliability, Service and Productivity:
Customer experience: Have sufficient scale and
ability to create and offer new products and
services; offer “enhanced” customer services;
create a one-stop shop for all their energy
needs
Growth/Development: Attract new businesses
that require stable, reliable energy sources,
leading to...
Employment: Creation of new employment
opportunities internally, or, by attracting new
businesses that require a highly skilled,
knowledge workforce
Rates: Create sufficient mass and scale to
more easily absorb costs and mitigate rate
increases
Sustainability: Create sufficient mass and scale
to be a stable partner, who can provide
reliable service and enhance the lives of our
customers
35
The Regulatory Challenge
- Province and the Ontario Energy Board (OEB) have recently put tax and
regulatory measures in place to encourage LDC efficiency and consolidation
- In particular, benefit to utilities is the broadening of scope enabled by Bill
112
- These measures are welcome, however, in order to continue to foster
growth in the sector and create a climate that suits business innovation
there is a need for:
- Sustainable access to third party capital for regulated and nonregulated business (that doesn’t attract prohibitive tax
consequences)
- Predictable rate-making process from both a timing and requirement
perspective
- Regulation that supports the co-existence of consolidation and ratemaking
36
Thank You