ENMAX and The City of Calgary making good progress on streetlight outages

The following release was shared with the media on December 19, 2012.

ENMAX and The City of Calgary making good progress on streetlight outages

Calgary, Alta. – Several months after implementing enhanced processes to address burned out streetlights, ENMAX and The City of Calgary are pleased to announce a significant reduction in the back-log of repairs. In close cooperation with The City of Calgary Roads, the number of outages was reduced from an all-time high of 1,933 in mid-March 2012 to 517 and counting.

“ENMAX has been working hard together with the City to ensure Calgarians have access to reliable lighting throughout the year,” says Gianna Manes, ENMAX President and CEO. “After adjusting our operational practices and achieving efficiency gains earlier this year, I’m pleased to report that fewer than 1 per cent of Calgary’s 90,000 street lights are out of service today, which is well below the performance threshold set by the City for the percentage of outages at any one time.”

ENMAX's enhanced processes took into account The City's existing budget, addressing the issue with productivity gains instead of increased dollars. ENMAX crews were scheduled predominantly in the evening hours to avoid street traffic so that bulbs needing replacement could be seen easily and immediately addressed. Crews were also concentrated in smaller geographical areas to minimize driving time between identified locations.

“After hearing the concerns of many Calgarians about this backlog, I'm very pleased that The City and ENMAX were able to work together to repair many streetlights without increasing the budget,” said Mayor Naheed Nenshi. “Well-lit streets are important to the comfort and safety of Calgarians, and I'm glad that we could work smarter, together, to make things better.”

Background

• There are approximately 90,000 streetlights in Calgary.
• The City of Calgary owns the streetlights and contracts ENMAX to maintain them.
• The number of streetlight repairs has increased by approximately 10 per cent annually since 2009 due in part to aging infrastructure and the increase in the number of street lights as Calgary continues to grow. The City's budgeted dollars for this maintenance is $3.6 million which covers all material, labour and escalations. The budget has not increased since 2009.
• Targeted timelines for repair are:
• Many lights out on major roads – within 7 days
• Single light out on residential road – within 30 days
• Residents can report an outage by calling 311. This generates an immediate service request which ENMAX receives the following day.

About ENMAX Power Corporation
ENMAX Power Corporation, a subsidiary of ENMAX Corporation, and its predecessors have provided Albertans with safe and reliable electricity for more than 100 years. One of the most reliable urban utilities in Canada, ENMAX Power owns, operates and maintains the distribution and much of the transmission network in and around Calgary, which are activities regulated by the Alberta Utilities Commission. Non-regulated subsidiaries of ENMAX Power provide engineering, procurement, and construction services as well as maintenance for electrical servicing of residential and commercial developments and light rail transit systems. Visit our website at www.enmaxpower.com.

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- Posted by Daorcey from Mayor Nenshi's team

Media Release: Mayor Nenshi and Chairman Fryers report on City Council meeting with ENMAX Board of Directors

Today, Calgary City Council met with the ENMAX Board of Directors for a special shareholder meeting. Due to recent media reports and events related to ENMAX, the shareholder (the citizens of Calgary represented by City Council), requested the special meeting to discuss issues of governance and strategy.

"I appreciate that the Board of Directors could accommodate my Council colleagues and me at this special meeting," said Mayor Naheed Nenshi. "We had a great discussion and will be working together over the next several months to ensure that ENMAX remains a great company for its employees, customers, and owners."

"In the meantime, ENMAX will continue to execute on the strategy approved by this council. ENMAX is a strong company and will continue to serve the people of Calgary well as one of the best, most progressive energy providers in the world."

"We look forward to Council's continued work with the ENMAX Board of Directors in the best interests of Calgarians."

Mr. Cliff Fryers, Chairman of the ENMAX Board of Directors, added: "Mayor and Council had some very legitimate questions and we had a good discussion around these matters. We collectively agreed that there is real value in an ongoing dialogue between the shareholder and the board. We value our shareholder’s support and look forward to working with them closely as we move forward with the ENMAX vision to create value for Calgarians and sustainable energy for all Albertans."

- Daorcey from Mayor Nenshi's team

Media Release: Mayor Nenshi on ENMAX CEO's severance package

Below is a statement from Mayor Nenshi on the severance package paid to ENMAX's outgoing CEO:

Today, we learned of the $4.6 million severance paid to ENMAX’s outgoing CEO.

The decision regarding the amount of severance was made by the ENMAX board of directors in accordance with its contractual obligations under the CEO’s Employment Agreement.
The issue in this situation is whether the negotiated contract was appropriate in the first place. City Council will be meeting with the ENMAX board of directors this month. Executive and board compensation, along with ENMAX’s governance practices, will be at the top of the agenda.

Your City Council sees fixing the governance of ENMAX as a major priority, and we are working to do so in the best interests of Calgarians.
We remain committed to the customers of ENMAX who will continue to receive safe, reliable, and cost-competitive energy just as they always have. We strongly support ENMAX’s employees who work hard every day to serve their fellow citizens.