Customer Value
Nothing is more important to Hydro Ottawa’s success than the company’s ability to deliver value to its customers. Whether the customer is one of the 287,000 homes and businesses who rely on our electricity distribution system every day, or an energy services client looking to cut their energy costs and environmental footprint, our goal is to provide effective, efficient and reliable service. It all comes down to two things: quality and cost.
Hydro Ottawa Limited has consistently kept its cost of service below the provincial average – a noteworthy achievement. But it is only half of the equation when it comes to customer value. The mark of efficient and effective operations is the ability to maintain low rates and reliable service at the same time; and Hydro Ottawa Limited is consistently ranked among the best in Ontario on both of these measures.
| SAIFI Excluding loss of supply | |
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| Based on 2007 SAIFI performance, the average Hydro Ottawa customer would experience one outage every 20 months. | |
Service Quality and Reliability
Customer surveys show that the number one thing customers want from their electrical utility is a safe, reliable supply of electricity; they want the lights to come on when they flip the switch.
Hydro Ottawa Limited is consistently among the top performers in the industry in providing uninterrupted electricity service, and restoring power quickly when outages do occur. Two key indicators measure our reliability of service – the System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI). With a 2007 SAIFI of 0.59 interruptions, and a SAIDI of 0.99 hours, the average Hydro Ottawa customer would experience one outage every 20 months, and be without power for less than one hour per year, excluding outages due to a loss of supply from the provincial electricity grid. These are the best results achieved by Hydro Ottawa Limited since 2004, and the second best since the company’s creation.
$41 million was invested in maintaining the reliability of our electricity distribution system in 2007, while $24 million was invested to continue serving the needs of our growing community.
Given the company’s consistently strong performance in this area, our goal in 2007 was to maintain overall system reliability, while making improvements in known problem areas. The $4.2 million Sunnyside voltage conversion project, which involved rebuilding aging infrastructure and changing the supply voltage in part of central Ottawa, eliminated the need for an aging transformer station, saving an estimated $5 million in replacement/refurbishment costs. Significant work was completed on the Kanata and Marchwood Transformer Stations, in addition to work completed on the Bridlewood Station in 2006 and 2007, improving reliability in Ottawa’s west end. Construction also began on the Cyrville Transmission Station to add capacity and improve reliability in the city’s east end.
A total of $65 million in capital was invested in Hydro Ottawa Limited’s distribution network in 2007, excluding costs covered by third parties. This represents a 12 percent increase from 2006. Of this total, $41 million was invested in maintaining the reliability of our existing distribution system, while $24 million was invested to continue serving the needs of our growing community.
While a reliable supply of electricity may be at the top of the list, quality service does not stop there. Customers also want timely and accurate information about things that affect them, and access to someone who can answer their questions and resolve issues that arise.
We have sharpened our focus on resolving customer service inquiries on the first call, becoming one of a very few utilities in the country to track and target performance in this area.
In 2007, Hydro Ottawa Limited made a number of improvements to meet these expectations. We increased communication with customers about planned work in their neighbourhood through community newspapers and letters delivered to the door. We also improved communication with customers during service interruptions through a dedicated phone number for outages. Recorded messages are updated immediately when new information becomes available, ensuring customers have quick and easy access to up-to-date information, and live call agents are available 24-7.
We have also sharpened our focus on resolving customer service inquiries on the first call, becoming one of a very few utilities in the country to track and target performance in this area. As a result, 74 percent of customer queries are resolved on the first contact, and 93 percent are resolved within two calls.
Hydro Ottawa Limited continues to leverage new technologies to enhance service to the customer. With over 178,000 Smart Meters installed by year end, the company has the largest active Advanced Metering Infrastructure (AMI) system in Canada. The near real-time information provided by this AMI system positions Hydro Ottawa to further enhance its customer service by eliminating field readings, avoiding estimated readings for meters in difficult to access locations, and processing moves and new service connections more quickly and seamlessly. Similarly, the completion of the company’s Geographical Information System (GIS) in 2007 provides a technological foundation for continued customer service enhancements. The completed GIS system, which provides a comprehensive and interactive map of Hydro Ottawa Limited’s distribution system including information about the age and type of every component, can be leveraged to enhance outage management, asset management, system design, and numerous other functions within the company. When fully integrated with the Outage Management System and System Control technology, it will mean faster diagnosis and response to problems in the distribution system when they arise, and enhanced communication with customers during outage events.
These efforts, and those of previous years, are showing results. Hydro Ottawa Limited ranked second nationally among medium-sized utilities and second among all utilities in Ontario in the J.D. Power & Associates 2007 Canadian Electric Utility Residential Customer Satisfaction Study. Similarly, in a third party-administered annual customer satisfaction survey, Hydro Ottawa Limited maintained its overall satisfaction rating at close to 85 percent for the second straight year. The company once again exceeded all of the OEB’s Service Quality Indicators.
Hydro Ottawa Limited ranked second nationally among medium-sized utilities and second among all utilities in Ontario in a J.D. Power & Associates study of residential customer satisfaction.
In addition to customer service enhancements, Hydro Ottawa Limited also made a concerted effort in 2007 to clear up the last remaining backlog issues that resulted from extensive electricity sector restructuring and the modernization of systems and business processes in recent years. In particular, the company undertook a review of all customer accounts in its Budget Billing program, an equal monthly payment plan. This process, normally completed on an annual basis, involves adjusting customers’ monthly payments to bring them in line with their current consumption, and making or receiving payment for balances on the accounts. Due to a delay in reviewing these accounts, the company is permitting customers to pay balances owing in installments, without interest, in some cases over an extended time period. Going forward, this process will be completed on an annual basis to ensure these accounts remain current.
Energy Ottawa continued to meet and exceed customer expectations in its energy management services business, enabling customers to realize significant savings. 42 turnkey energy management projects and 25 energy audits covering two million square feet resulted in annual energy cost savings of $615,000 for the company’s clients. This corresponds to a yearly reduction of 5.59 GWh in energy usage, and 5,000 tonnes annually in greenhouse gas emissions.
Energy management projects undertaken for the City of Ottawa cut energy costs for City facilities by $250,000. In addition, the City reduced its electricity costs by more than $280,000 through a fixed-price electricity contract with Energy Ottawa.
Projects undertaken for the City of Ottawa cut energy costs for City facilities by $250,000, reducing energy consumption by 2.44 GWh and GHG emissions by 2,200 tonnes. The City also reduced its electricity costs by more than $280,000 in the last four months of 2007 through a fixed-price electricity contract with Energy Ottawa, leading to an extension of the agreement through March 2009, with estimated annualized cost savings of $400,000. Hydro Ottawa is addressing greenhouse gas emissions (GHG) as part of its Environmental Protection Plan to be developed in 2008.
Telecom Ottawa’s broadband network once again exceeded performance targets, with service reliability of 99.996 percent and network availability of 99.995 percent. For customers, this translates into network service outages of less than 25 minutes throughout the entire year. Mean Time To Repair (MTTR) averaged 100 minutes, far exceeding customer service level agreements of 240 minutes, and improving on 2006 performance by 60 minutes.
Operational Efficiency and Effectiveness
As noted above, service quality is half of the customer value equation. The other half is cost. Efficient and effective operations are the key to keeping costs down, and this is a constant focus for Hydro Ottawa.
The Ontario Energy Board (OEB) regularly compares the operating, maintenance and administration costs of Ontario utilities, and Hydro Ottawa’s costs per customer have consistently been much lower than the provincial average.
In 2007, Hydro Ottawa continued to focus on maximizing the efficiency and effectiveness of our operations by reducing waste and optimizing productivity at every opportunity.
At Hydro Ottawa Limited, savings of $3 million were achieved through effective cost management and productivity improvements. Overtime hours were reduced by 3.6 percent, operations were restructured into four zones to reduce travel time, and apprentices were integrated into overhead line crews resulting in a significant increase in productive construction. New technologies were also employed, including the use of GIS and wireless field technology for scheduling and dispatching, resulting in a 27 percent increase in field productivity for connections and disconnections with no increase in workforce requirements.
The Ontario Energy Board (OEB) regularly compares the operating, maintenance and administration costs of Ontario utilities, and Hydro Ottawa’s costs per customer have consistently been much lower than the provincial average.
In April 2008, the OEB announced its approval of Hydro Ottawa Limited’s distribution rates for 2008-2009. Distribution rates, which cover the costs of constructing, maintaining and operating Hydro Ottawa Limited’s electricity distribution system, increased by approximately the rate of inflation, resulting in an increase to a typical residential customer’s bill of only 0.6 percent on an annualized basis. This demonstrates Hydro Ottawa’s effectiveness in keeping costs low while deploying Smart Meters across its service territory as required by the province, continuing to invest in the reliability of its infrastructure, and preparing for the industry-wide challenge of an aging workforce through its in-house apprenticeship program.
Similar adjustments to distribution rates are anticipated in 2009 and 2010, as Hydro Ottawa Limited continues to invest in reliable infrastructure and implement the Smart Meter and apprenticeship programs.
Energy Ottawa’s plant availability rose to 98.3 percent from 97.4 percent the previous year, while operating costs for the company’s hydro generation facilities were reduced by 20 percent, mainly through the implementation of an innovative new monitoring system.
Commitment to Employees
A fundamental component of Hydro Ottawa’s commitment to operating efficiently and effectively is the very high priority we place on protecting the health and safety of our employees. In 2007, lost time injuries at Hydro Ottawa Limited were reduced by 25 percent, while total days lost to injuries decreased by 55 percent. Energy Ottawa and Telecom Ottawa both achieved zero injury status.
In 2007, Hydro Ottawa Limited completed the integration of its health and safety and environmental management systems, achieving two internationally recognized standards of management. In addition to the International Organization for Standardization (ISO) 14001 Environmental Management System standard, to which Hydro Ottawa Limited was recertified for a fourth consecutive year in 2007, the company has undertaken a complete integration of its health and safety and environment management systems over the course of 2006 and 2007, in preparation for registration to Occupational Health and Safety Assessment Series (OHSAS) 18001. This designation was achieved as a result of an external audit completed in November 2007.
Hydro Ottawa Limited has undertaken a complete integration of its health and safety and environment management systems over the course of 2006 and 2007, in preparation for registration to Occupational Health and Safety Assessment Series (OHSAS) 18001.
Our commitment to our employees goes far beyond their health and safety. Our aim is to create a workplace that fosters employee satisfaction and productivity, while ensuring opportunities for skills development and growth.
In 2007, Hydro Ottawa continued to emphasize skills development by providing ongoing training opportunities, and continued to develop tomorrow’s workforce through its skilled trades apprenticeship programs, with a total of 29 apprentices active at various stages of the multi-year programs at year-end. This positions Hydro Ottawa to deal effectively with the industry-wide challenge of an aging workforce. In addition, a three-year collective agreement was successfully negotiated with the International Brotherhood of Electrical Workers (IBEW), building on the positive labour relations environment that has been developed over the past several years. The company also initiated a process to refresh its organizational values with extensive employee involvement. The company’s renewed values of Teamwork, Integrity, Excellence, and Service set the tone for the kind of workplace we strive to maintain.