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Strategy
EGD's vision is to be North America's leading energy distribution and services company. To achieve this vision, EGD has outlined the following strategic objectives:
- focus on safety, operational excellence and customer satisfaction;
- grow core utility earnings;
- improve return on invested capital; and
- develop human resources.
One of EGD's major strategic initiatives is to evaluate the potential changes of the regulatory environment in planning and maximizing future operational and organizational flexibility. EGD has continued regulatory filings through the cost of service process for 2007 to ensure an appropriate base is in place for a 2008 IR plan. At the same time, EGD plans to transform the business for IR, including rationalizing capital investment, increasing productivity and identifying top line enhancements while maintaining system reliability and safety.
Customer Growth
Another major strategic initiative is enhancing customer growth. EGD added over 43,000 new customers in the year ended December 31, 2007 (over 47,000 in the year ended December 31, 2006). EGD expects to add 40,000 to 45,000 customers in 2008. In addition to traditional gas distribution growth expected, new earnings growth opportunities include investment in new laterals for power generation, fuel switching, implementation of turboexpanders on the gas distribution system, development and delivery of energy efficiency programs and billing services for third parties as well as development of new gas load balancing options.
Storage Project
In April 2007, EGD signed storage contracts to provide daily services totaling 2.8 million gigajoules, or approximately 2.6 billion cubic feet (bcf), of storage capacity, including 10 or 20-day storage service with firm year-round withdrawal and injection levels. Based on a final OEB decision to cease regulating prices for new storage services offered, EGD will proceed with development of the project.
Customer Care and Customer Information System Agreements
In April 2007, EGD entered into five-year customer care services contracts with third party service providers for meter reading, billing, billing administration, call handling and collections. The total cost of the contracts is approximately $274 million over the five year term. EGD is planning to have a new CIS system in service by July 2009 to meet regulatory requirements and to meet the need for a more robust and technologically up-to-date system. The OEB has approved a six-year rate recovery arrangement for the customer care services and a ten-year recovery of the $119 million in capital to be invested in the new CIS.
Gas Distribution and Services – Number of Active Customers
(thousands)
EGD added over 43,000 new customers in 2007 and EGD expects to add 40,000 to 45,000 customers in 2008. The 2004 number reflects the 15-month period reported as part of Enbridge's change in financial reporting to eliminate consolidation of gas distribution operations on a quarter lag basis.
Volume of Gas Distributed
(billion cubic feet)
Gas volumes distributed reflect the growing number of active customers and the impact each year of warmer than normal or colder than normal weather. The 2004 volumes reflects the 15-month period.