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CEO and Chair message to shareholders
We are pleased to provide you with Enova Power Corp.’s (Enova’s) 2023 Annual Report, reflecting the results of our first full year of operation.
This year has been one of change and excitement, challenges and opportunity. Your Board of Directors, CEO and our entire leadership team are poised and engaged, ready to meet what lies ahead.
The energy sector is at a crossroad and to succeed we must transform into a utility of the future by building a flexible, intelligent grid that empowers customers while maintaining our unwavering commitment to the health, safety, and well-being of our people. We are exploring new business models to stay ahead of the disruption that is facing the business and creating value for our stakeholders.
Our work for the next five years is driven by our strategic plan with four key areas of focus: Post-Merger Integration, Growth and Innovation, Empowering Communities, and Grid Resilience. These four key areas of focus will ensure that we successfully integrate our people and processes while laying the foundation to meet the needs of the energy transition. Highlights from 2023 include:
The energy sector is at a crossroad and to succeed we must transform into a utility of the future by building a flexible, intelligent grid that empowers customers while maintaining our unwavering commitment to the health, safety and well-being of our people.
Post-Merger Integration
Merging two organizations has its challenges, but our team has diligently navigated those challenges to keep the integration of people, processes, and systems on track. Knowing that cultural integration and alignment are integral to the success of our merger, we launched “Being Enova,” a culture-building campaign designed to demonstrate what it means to live Enova’s values, and to create a culture that is Transparent, Inclusive and Empowered, Driven to Explore New Ideas, one where Everyone has a Voice, and one that places Safety and Well-being Above All (TIDES). The campaign was well received, with employees throughout the organization participating enthusiastically.
We completed an extensive evaluation process to determine the Information Technology and Operational Technology software systems best suited to meet the technological needs of Enova today and in the future. At the end of 2023, we completed an upgrade of our Geographic Information System, and merged our System Control and Data Acquisition System ahead of schedule.
Harmonization work on several key processes, including our Conditions of Service and our engineering and construction standards, is also well under way.
Growth and Innovation
Innovation will play a key role in modernising the grid and preparing our distribution system for the future while ensuring that we continue to meet the needs of today. In 2023 we partnered with GRIDS2 to create a Distribution System Operator (DSO) study and lab demonstration site, which will be live in 2024. This project will allow us to study the real-time effects of market participation and demand-response efforts on our distribution system before launching a full-scale model.
Merging two organizations has its challenges, but our team has diligently navigated those challenges to keep the integration of people, processes, and systems on track.
Financial Performance
In fiscal 2023, despite the challenges of continued higher interest rates and merger integration efforts, we continued to provide value and delivered returns to our shareholders – returns which are invested directly back into the communities we serve.
Despite lower energy sales, there was a slight increase in distribution revenue that allowed us to continue to invest in capital projects to accommodate growth without incurring additional long-term debt and while delivering shareholder returns. Overall, Enova’s financial performance for the period ending December 31, 2023 was within budget and indicates a sound financial position.
Empowering Communities
At Enova, our community is our employees, our customers, our shareholders, and the residents and businesses that call Waterloo Region home.
Empowering our employees while promoting health & safety
We are fostering a workplace culture that is committed to health and safety, empowers individuals, inspires collaboration, and respects diversity. We saw a 60 per cent decrease in the number of employee illness and injury claims in 2023, and our employee retention rate remains steady at 93 per cent, which is an exceptional retention rate amid a post-merger integration.
“A” rating for customer satisfaction
Our team successfully met all regulatory requirements in 2023, including the launch of the new Ultra-Low Overnight Rate and Green Button, and produced close to 2 million bills with a stellar billing accuracy rate of 99.97 per cent.
We conducted our first Customer Satisfaction Survey in late Fall 2023 and were delighted to have achieved an “A” rating in overall customer satisfaction, a clear indication that Enova’s customers have confidence in our performance.
We congratulate our employees on this outstanding result.
Shareholders and community
Our commitment to the strength and resilience of our communities is reflected in our ongoing community initiatives. During the year our team hosted and participated in community events with customers, shareholders, community organizations, schools and post-secondary institutions, and business partners. Our financial donations and sponsorships exceeded $387,000, including donations to both hospital foundations and the Foodbank of Waterloo Region, and providing municipal reforestation grants, and education grants at our local universities and colleges.
Enova’s financial performance for the period ending December 31, 2023 was within budget and indicates a sound financial position.
Our financial donations and sponsorships exceeded $387,000, including donations to both hospital foundations and the Foodbank of Waterloo Region, and providing municipal reforestation grants, and education grants at our local universities and colleges.
Grid Resilience
In 2023, we invested $50 million dollars in capital projects including the construction of a new power transformer for one of our 12 transformer stations (No. 5TS) to ensure abundant capacity and reliability for customers today and into the future, and expanded our field communication network for grid automation devices. We also continue to proactively invest in distribution system enhancements to replace end of life assets and keep our IT infrastructure safe from cyber events. These investments will ensure the continued modernization of the grid and safe reliable delivery of electricity to the residents and businesses of Kitchener, Waterloo, Woolwich, Wilmot, and Wellesley.
Our attention to reliability contributed to a notable decrease in both the length and frequency of outages across our service territory. In 2023 the average length of a power interruption dropped to 40 minutes, a 22-minute improvement from 2022.
National recognition for resilience
In October, the Globe and Mail, one of Canada’s most prominent national newspapers, published a story comparing the reliability of several electricity distributors across the country, which revealed that Enova’s distribution system is one of the most reliable, not just in Ontario but across the country.
Looking Ahead
Enova remains committed to the success of the communities we serve, contributing to economic prosperity, and helping make Waterloo Region a prime destination to live, work, and play.
Our team has shown incredible resilience, adaptability, and an unwavering dedication to excellence – a true testament to the spirit of Enova.
Looking ahead, we are energized by the opportunities that the future holds. With a strong foundation and a clear vision, we are poised to drive what’s next in energy and sustainability for our communities and beyond. Together, we will continue to innovate, inspire, and lead with integrity.
Thank you for your trust, your partnership, and your belief in what we do. Here’s to continuing our journey together, with enthusiasm for the milestones we will achieve and the challenges we will overcome.
Enova remains committed to the success of the communities we serve, contributing to economic prosperity, and helping make Waterloo Region a prime destination to live, work, and play.
Yours Truly,
Grieg Cameron,
President & CEO
Enova Power Corp.
Steve McCartney,
Board Chair,
Enova Power Corp.