Our Building
Strategic Plan november 2,2009
About Our Strategic Plan
Strategic planning is a process that deals with the objectives of an
organization and allocates resources to the achievement of those
objectives. Orangeville
Hydro developed its first formal strategic plan in November 2001 and
has revised it periodically since then.
The plan is a "living" document and is used as a guide to
assist the management, staff and Board of Directors in the forward
planning of the Company.
The plan is reviewed from time to time by management to ensure it
remains current in an evolving electricity marketplace and that the
identified strategic directions are followed.
This revised version of the Strategic Plan reflects the results
of a formal review session held at Orangeville Hydro's offices on
December 8, 2008.
Background
As early as 1885, the Town of Orangeville was supplied with electric
power from a plant located at the corner of Mill Street at Church
Street. C. W. Watson eventually purchased the plant and after
operating it for 3 years, merged his interests with those of James
Pickering of Shelburne to form the Dufferin Light and Power Company.
This company went into liquidation, was sold, and became the
Pine River Light and Power Company.
The Town of Orangeville purchased this company and on November
20, 1916 established the Orangeville Hydro-Electric Commission with
114 customers.
In 1925, Dr. G. H. Campbell was quoted as saying that it was because
of Orangeville Hydro that such industries as Dods Knitting Mill had
located themselves in Orangeville.
Again in 1937, Dr. Campbell said that Orangeville Hydro was the
Town's greatest asset and was running debt free.
From November 20, 1916 until October 2, 2000, Orangeville Hydro
operated as a not-for-profit electric distribution utility, serving
the electrical needs of the customers in the Town of Orangeville.
The 18 full-time staff serves about 11,000 customers.
The staff completes almost all of the work internally including
billing, collecting, administration, finance, construction of new and
upgraded lines, and maintenance.
The electrical distribution system consists of 160 kilometers of
circuits at the following voltages - 44,000 volts, 27,600 volts, and
4,160 volts. Yearly
distribution revenues are about $4 million.
The Energy Competition Act, 1998 required local distribution utilities
like Orangeville Hydro to become incorporated according to the Ontario
Business Corporations Act by
November 7, 2000. Hence on
October 2, 2000, the Town of Orangeville passed a by-law transferring
all assets and liabilities of the Orangeville Hydro-Electric
Commission to Orangeville Hydro Limited.
Orangeville Hydro Limited is considered a "local distribution
company" or a "wires company". The Town of Orangeville wholly owns
this company.
Orangeville Hydro Limited is licensed by the Ontario Energy Board to
operate as an electricity distribution company within the current
boundaries of the Town of Orangeville.
An affiliate company called Green Pathways, a “one-stop energy
shop”, was established in 2008 to serve the needs of our residential
and commercial customers in the areas of energy conservation and
efficiency, as well as renewable energy and electricity generation.
The overall value of the Strategic Plan is based on three critical
statements. The vision
statement, mission statement, and values statement are written
corporate commitments that legitimize the plan by setting the future
direction of the Company, stating what it will do to get there, and
how it will get there based on a set of fundamental principles it
follows in business. The
statements are presented below.
Vision Statement
To be acknowledged as a leader among electric utilities in the areas
of safety, reliability, customer service, financials, and performance.
Mission Statement
To provide safe, reliable, efficient delivery of electrical energy
within the town of Orangeville while being accountable to
our shareholders.....the
citizens of Orangeville and the former Village of Grand Valley.
While we must operate as a business and be
profitable for
our shareholders, our main reason for existing is to provide safe,
reliable, and economic electricity services to the people of
Orangeville and the former Village of Grand Valley.
That is what distinguishes us from other large, remotely owned
and controlled power companies.
Values Statement
To continue into the future as a profitable electricity distribution
enterprise the following principles are core features of our Company:
We value professionalism and safety in our service and our work;
We value people - our customers, employees, board members, and
shareholders;
We value our community - its environment and its economic progress;
We value integrity, honesty, respect, and communications;
We value local control, local accountability, local employment, and
local purchasing; and
We value easy accessibility to our ratepayers.
SWOT Analysis
As we face the future, in a drastically changing setting for all
electric utilities, the following is a quick analysis of where
Orangeville Hydro currently stands in term of our corporate strengths,
weaknesses, opportunities and threats ("SWOT").
Strengths
We have positive relationships with our shareholders - the people of
Orangeville and the former Village of
Grand Valley, individual customers and their elected
representatives.
We have a core of high quality employees, effective management, and
solid relations between the staff and the Board of Directors.
In addition we have a strong, well - maintained physical plant
(lines, transformers etc.).
We have a high level of quality customer service and customer
satisfaction, based on survey results.
We have a strong relationship with local organizations, including the
Home Builders Association, Chamber of Commerce, and the Manufacturers
Association.
Weaknesses
We have limited land for development, as our territory is bound by
Hydro One. We also do not
have a formal asset management strategy.
We have an aging work force, with many in management eligible to
retire within the next 5 years.
This could mean a loss of expertise for the organization.
OHL has a risk-averse shareholder – they are focused on optimizing
current business
Opportunities
We have an opportunity to maintain a high standard of service for our
customers, contribute to the welfare of our local community and earn a
profit that will remain for local benefits rather than remote
corporate gain.
We can help our customers and Shareholder to "become more
knowledgeable" regarding effective purchase and use of electricity.
Future legislation may allow us to pursue other business opportunities
through our LDC thereby making more efficient use of our resources. We
can utilize expertise from affiliate companies, such as Green
Pathways. We may also be
able to get our employees more involved in the business side of the
operation.
Through the merger of Orangeville Hydro and Grand Valley Energy, we
have created new development opportunities.
Threats and Uncertainties
Some parties outside Orangeville and the former Village of
Grand Valley might have the potential to benefit from our failure.
Because of our excellent financial picture, lean staffing, and
efficient operation, we are a desirable target to be purchased by
larger LDCs.
As a relatively small utility, we face the threats of being
"steamrolled" as large utility corporations exert more pressure on
government to enact legislation which discourages local customer
ownership of utilities. We
will suffer from a lack of "clout" with the provincial government and
the OEB.
The current economic slowdown may cause a larger number of customers
to default on their bill payments.
Revenue recovery is based on approval from the Ontario Energy Board.
Their expectations and requirements are continually changing,
creating risk for revenue recovery.
Capability
Orangeville Hydro places tremendous value on its highly skilled staff
and the importance of ensuring that the Company provides appropriate
training and acquires outside expertise when needed to continue to
successfully meet the challenges of the evolving electricity market,
and to maintain a high level of operational performance.
Strategic Directions
We will use the following strategies to overcome our weaknesses and
threats and capitalize on our strengths and opportunities. These
strategies will also be in harmony with our corporate values, our
vision, and our mission statement.
Strategy # 1
We want to grow the business as a public good.
|
#1 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy #2
We will continue to leverage the benefits of the CHEC membership.
We will encourage CHEC to lobby to reduce response requirements
by the regulatory entities.
Members
Number of Customers
|
Centre Wellington |
6,255 |
|
Collus |
14,225 |
|
Goderich |
3,844 |
|
Innisfil |
14,145 |
|
Lakefront |
9,141 |
|
Lakeland |
9,103 |
|
Midland |
6,700 |
|
Orangeville/Grand Valley |
10,836 |
|
Parry Sound |
3,395 |
|
Rideau St Lawrence |
5,903 |
|
Wasaga |
11,813 |
|
Wellington North |
3,514 |
|
TOTAL |
98,874 |
|
#2 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy #3
Mergers will be investigated with utilities that are same size or
smaller, with Orangeville Hydro being the majority shareholder.
|
#3 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management
Orangeville Hydro Board of Directors
Shareholder |
Strategy #4
We will investigate opportunities to utilize renewable energy, and
pursue potential partnerships with renewable energy companies.
|
#4 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy #5
Acquisitions of other utilities may be considered, but Orangeville
Hydro is not being considered as For Sale.
|
#5 Action Timeline |
As opportunities arise |
|
Responsibility |
Orangeville Hydro Board of Directors
Shareholder |
Strategy #6
We will invest heavily in our staff and rely on them to help us
accomplish our goals. The
following activities are included in the implementation of our Human
Resource strategy:
·
We will keep our people informed;
·
We will make sure our people understand what we expect from them and
why they are important to the organization;
·
We will support our people by providing them with information, tools,
equipment, standard procedures and training;
·
We will compensate them well and attempt to link their compensation
with their performance and the performance of the company; and
·
We will utilize a pay-for-performance model for the management team.
|
#6 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management (Lead)
Orangeville Hydro Board of Directors |
Strategy #7
We will stay current with industry, sector, and regulatory changes.
This will be an obligation of the Management, the Board of Directors,
and the Shareholder.
|
#7 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management (Lead)
Orangeville Hydro Board of Directors
Shareholder |
Strategy #8
We will inform customers and shareholders and keep them informed.
A comprehensive, multifaceted communications plan has been developed.
It will be reviewed and further implemented.
|
#8 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Board of Directors
Orangeville Hydro Management |
Strategy #9
We will network with other boards to develop and share best practices.
We will also keep the Board informed but our main focus will be
on the customers' needs.
|
#9 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Board of Directors
Orangeville Hydro Management |
Strategy # 10
Although we have won numerous safety awards in the past, much of which
is due in large part to staff input, we will seek new ways to further
enhance the safety to our employees, our customers, and our community.
|
#10 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy # 11
We will investigate areas that are within our control to reduce or
curtail costs, or to better utilize resources.
|
#11 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy # 12
We will develop strategies to improve our system reliability.
|
#12 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy # 13
We will develop a formal asset management plan to enhance the overall
value of the organization.
|
#12 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy # 14
We will continue to maintain just and reasonable rates for our
customers, while providing a reasonable return for our shareholders.
|
#12 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |
Strategy # 15
We will continue to comply with all legislation related to our
industry, as well as all other government regulations that are
required of us.
|
#12 Action Timeline |
Ongoing |
|
Responsibility |
Orangeville Hydro Management |