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Message from the Chair and CEO
We are incredibly proud of our team in 2024 and thank them for their amazing achievements.
We are pleased to share with you Enova Power Corp.’s (Enova’s) 2024 Annual Report. This report reflects the incredible work of Enova employees who made significant progress with our integration work while placing priority on meeting day-to-day customer needs.
We continue to make strong, steady progress achieving the goals laid out in our 2024-2028 Strategic Plan. Our four strategic plan pillars of Post-Merger Integration, Growth and Innovation, Empowering Communities, and Grid Resilience ensure we remain focused on the priorities that will continue to drive what’s next in energy and sustainability for our communities and beyond while remaining nimble in the face of a constantly-changing sector.
Over the past few years, Ontario’s electricity sector has undergone significant changes, and customer expectations continued to grow. Enova has stayed focused in creating long-term value by modernizing infrastructure, enhancing reliability, and investing in smart grid technologies. We are driving sustainable growth while ensuring resilience and continued value for customers and stakeholders by integrating clean energy, preparing for industry disruptions, and adapting to regulatory shifts.
Post-Merger Integration
The foundation of Enova’s success depends on successful integration. By aligning our teams, systems, and processes, we will achieve the synergies needed to drive shareholder value while ensuring Enova is well positioned to support our customers as they focus on achieving their own goals and meeting their own needs. Our employees are aligned and we are pleased to report that our teams worked tirelessly to achieve 47% completion for post-merger integration projects, up 38% from 9% at the end of 2023.
Harmonization of key processes and integration of critical systems were a primary focus in 2024. This harmonization will ensure that our employees are all working from the same systems using the same processes and measures for success.
Leading the way in the merger of critical systems is the Customer Information System project, which reached 40% completion by the end of the year and is on track for go live by the end of 2025. Other systems contributing to the overall merger project progress were the Geographic Information System (45%), Enterprise Resource Planning System (30%), and the successful negotiation of two union contracts: the International Brotherhood of Electrical Workers for inside staff, and Power Workers Union, who represent our outside workers and lines staff.
The synergies realized through the integration work are significant and include staffing attrition, benefits consolidation, financial institution harmonization, and IT systems. Those same synergies were impacted by several factors including higher than anticipated interest rates and inflation, wage parity, and salary structure harmonization. Enova Power Corp. will continue to move towards the future state that continues to deliver value to the shareholders, the customers and the industry.
Growth & Innovation
Our sector continues to evolve, both from an industry and a customer perspective, and this evolution underpins the need for innovation and new ways of doing business. Balancing the need for reliability while preparing to meet future needs requires strategic thinking and a new perspective while ensuring that electricity costs remain affordable. In 2024 we partnered with GRIDS2 on two key projects: Our Distribution System Operator (DSO) study and lab demonstration site at our Victoria Street office, and an AI-based load forecasting project. These two projects allow us to pilot new and unfamiliar technologies before making a full-scale investment. In both cases we were able to use real data to measure results and were pleased to see that both projects show promise.
Empowering our partners and communities
Our community consists of a broad spectrum of stakeholders, and employees are key to this. To that end we invest in the health, safety and wellbeing of our team. Our Mental Health and Wellness committee, which is a first for Ontario utilities, was focused squarely on employee wellbeing. The group organized events and shared messages that fostered an environment for employees to thrive.
We continued to prioritize Diversity, Equity and Inclusion and in 2024 signed the Electricity Human Resources Canada Leadership Accord to affirm our commitment to moving forward with our efforts to maintain a diverse workforce with a wide variety of voices, including the 50% of our leadership team who identify as female.
Grid Resiliency
Ensuring a reliable power distribution network remains a top priority for Enova. In 2024, Enova continued to invest in infrastructure programs that design, build, operate, and maintain the distribution system to minimize outages and enhance the resilience of our electrical grid. Our investment in distribution automation and timely response to potential issues and outages has resulted in continued high system resiliency and reliability performance. In 2024, our distribution system was available for 99.99% of the time and our system reliability saw a typical customer experiencing an average of one outage lasting 59 minutes. These results demonstrate our continued commitment to delivering safe, reliable power to our customers with minimal disruption and are among the best in the province of Ontario.
Financial Performance
2024 marked the second full year of Enova operating as a single company following our merger. Over the past year, we continued the work of integrating operations from both legacy organizations while supporting a growing customer base. This included investments in new distribution infrastructure and the continued maintenance of our existing assets.
For the year ending December 31, 2024, Enova reported net income of $14.9 million – 9.5% or $1.5 million below our budgeted target. While this result reflects a shortfall, it is important to note that, when adjusted for one-time retroactive wage payments made during the year, our financial performance was in line with our targets. This demonstrates the underlying strength and resilience of our business and reaffirms our solid financial position.
As we look ahead and navigate 2025, we remain focused on operational integration, financial discipline, and long-term value creation for our employees, customers, and shareholders.
Sandra MacGillivray
Chair
Enova Power Corp.
Greig Cameron
President and CEO
Enova Power Corp.