Drainage Services and EPCOR Water Services Review City

Drainage Services and EPCOR Water Services Review City Administration Presentation City Council Meeting September 13, 2005

History • • • 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

Operating Principles City of Edmonton • • • Provider of essential/core services Services to People Planned Growth Economic Development Infrastructure & Physical Environment Leadership, Regional Cooperation, & Planning EPCOR • Provide reliable, regulated and competitive services • Increase shareholder value and growth • Execute aggressive growth strategy • Leader in energy and related services

Governance City of Edmonton EPCOR • Elected officials accountable to citizens • Council decisions transparent in public arena • Senior officers accountable to Board of Directors. Board responsible for stewardship of company • Board manages business affairs of the company in-private. • Elected officials advance social policy • Corporation exists to increase revenues and shareholder value.

Drainage Services EPCOR Water Services Study Background • Study looks at four models: ü ü • Status quo Drainage – to - EPCOR Water – to – City New utility (water and drainage) Consultant – Pricewaterhouse. Coopers hired January 2005

Pricewaterhouse. Coopers Study Conclusion • • 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.

Reward versus Risk Parameters 1. Customer Service 2. Development industry impact 3. Regional relationships 4. UDI 5. PAC and SSSF 6. Financial 7. Environmental liability 8. Grant funding 9. Local Improvements 10. Mitigation strategies 11. Corporate support 12. Shared Services