Sustainable Development

Chair and CEO Message

At Horizon, we continue on our aggressive path of supporting the creation of sustainable communities while simultaneously improving our economic performance and long-term prospects for success. Communities are where our customers, our employees, our businesses and other stakeholders reside. Together, they support our families and create the lifestyles that add to our quality of life.

Our people are an integral part of that community. They give us the ability to deliver on our commitments. We are particularly proud that we surpassed a significant safety milestone in 2009, working one million hours without a lost-time incident.

It is gratifying that our initiatives have caught the attention of not only our friends and colleagues, but we have also been commended by key players in the energy industry in Ontario and other parts of the country. We are proud to be named Company of the Year in 2009 by the Ontario Energy Association for our leadership in sustainable development. The award is an important validation of a culture that has taken root at Horizon. It endorses the commitment of Horizon's employees to help us grow as a valued contributor to the sustainability of the communities in which we operate. Together, we are creating a framework that fortifies Ontario's ambitions to build a green economy and we are helping to embed a mindset of energy conservation across the province.

We recognize that building sustainable communities starts with leading by example. We are guided by creative ideas at Horizon and inspired by a spirit of enterprise in our communities. We are proud of our achievements at Horizon Utilities, our regulated distribution company. Horizon operates one of the greenest utility fleets in the province and this move towards green has enabled a 50 per cent improvement in fuel economy on hybrid vehicles.

In 2009, the Company discontinued the provision of plastic water bottles at all of its locations. By eliminating the need to produce, transport, and recycle over 16,000 bottles a year, we are saving energy and reducing our carbon footprint. In total, energy conservation measures introduced at Horizon facilities have reduced CO2 emissions by more than 28 tonnes per year.

Though it was an economically challenging year, Horizon continued to find efficiencies and generated more than $107 million in direct economic value for the communities we serve. Our operating and maintenance costs are benchmarked and our controllable expenses per customer remained one of the lowest in the province. We provided nearly $2 million in energy incentives and rebates to customers through our conservation programs and returned $9 million to our municipal shareholders in the form of dividends.

Behind the scenes, Horizon Utilities is expanding and reinforcing the distribution network in Hamilton and St. Catharines to support our ongoing needs, future growth of renewable generation, and the implementation of smart grid systems and technologies. Horizon is taking advantage of opportunities to contribute to Ontario's green economy efforts and is preparing for the needs of tomorrow through investments and innovation.

We remain agile as the landscape changes. Ontario is becoming a world leader in the development of a green economy and we are part of that vision. We are preparing to be a key player to pursue growth through new business opportunities in renewables and energy solutions. In 2010, we will be launching an exciting new business through our recently created company, Horizon Energy Solutions. The initial focus of this new business will be on the development of power through emission-free sources like the sun. Working with our customers, we will provide leading clean and green energy solutions and the means to reduce their energy consumption.

We believe that the essentials that drive sustainable development in communities will also drive our long-term prospects for success. We have the building blocks in place, the strong commitment of our employees, and the vision to navigate the right path.