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2014 Sustainability-based Annual Report

30 We balanced the need to renew our infrastructure with minimizing the cost impacts to our customers Efficiency and Productivity – Always a Better Way One of the key ways Horizon delivers a strong bottom line is by steadfastly seeking out opportunities to improve its efficiency and productivity. By the end of 2014, Horizon Utilities had made significant headway in the planned efficiency and productivity measures mapped out in 2011 to be achieved by 2019. The goal was to attain sustainable productivity savings of 10 per cent of its operating cost base. And by the end of 2014, Horizon’s realized savings were ahead of target. In the OEB’s 2014 utility scorecards – a new customer-focused feature of the Renewed Regulatory Framework – Horizon Utilities was ranked among the best performing in terms of low total cost per customer among the 73 local electricity distribution companies in Ontario. It also was reported to have the third lowest total cost per customer ratings among the 20 LDCs in the western Golden Horseshoe. The OEB’s new industrywide scorecard, in this case based on 2013 data, placed Horizon’s total cost per customer at just $499 per customer, compared to the highest of the 20 at $731. Horizon Utilities is managing costs well and, at the same time, responsibly investing in our distribution system and customer technologies. In addition to ongoing improvements in key operational and financial processes in 2014, three major projects – implementation of an OMS, integration of GIS with OMS, and phase two of the three-year Enterprise Resource Planning (ERP) system upgrade – yielded enhanced cost effectiveness and productivity improvements. As part of our continuous improvement culture, our employees are providing feedback both formally and informally, which is helping to enhance processes. The benefit is we are reducing our operating costs, reducing time to deliver services and better utilizing our assets. As a result of our relatively large customer base among local distributors in the province, we are able to leverage best-in-class systems and services, delivering real value to our communities and preparing them for the future. 20-year Distribution System Renewal Plan outlines a clear path to responsibly replacing end of life assets ECONOMIC SUSTAINABILITY


2014 Sustainability-based Annual Report
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