Hydro Ottawa - a leading partner in a smart energy future
Hydro Ottawa’s 2016-2020 Strategic Direction provides an overview of Hydro Ottawa’s business strategy and financial projections for the next five years. It is designed to inform our shareholder and all other stakeholders about the most important trends shaping our business environment, and how the company intends to respond to them.
Like those that preceded it – issued in 2008 and 2012 respectively – this Strategic Direction sets out a balanced program for strong performance in our existing operations, coupled with sustainable and profitable business growth. Our strategy is customer-centric, financially responsible, and responds to a strategic environment that has changed in important ways since the publication of our last Strategic Direction document.
The objectives outlined in Hydro Ottawa’s 2012 Strategic Direction have largely been accomplished. Notably, the company has increased its renewable generation capacity several-fold during that period. From 22 megawatts at the beginning of 2012, our renewable generation capacity is now 79 megawatts (including joint ventures). The current expansion project at Chaudière Falls, scheduled for completion in 2017, and the purchase of Hydro Quebec’s generation assets at Chaudière Falls, which we expect to complete in the coming months, would bring this total to 128 megawatts – enough clean, renewable energy to power 107,000 homes. Hydro Ottawa has also made important progress on enhancing customer value, operational effectiveness, and our contribution to the community.
Powered by strategic growth and positive performance in existing operations, Hydro Ottawa has exceeded the financial projections set out in our 2012 Strategic Direction each year. The company has also exceeded the stretch target of an additional $10 million in net income over the five-year period, having achieved an additional $16 million in net income, above annual targets, over the first four years of the plan.
Given these accomplishments and the changes that have occurred in our business environment, the Board of HOHI and management believe it is time to set new goals and refresh our strategy.
Stakeholders will find much that is familiar in this 2016-2020 Strategic Direction. It refreshes, rather than replaces, the corporate strategy outlined in the previous plan.
Our core mission and mandate moving forward remain the same: we will continue to create value for our shareholder, our customers and our community through excellence in the delivery of electricity and related services. Moreover, our business lines remain unchanged: they will continue to be electricity distribution, renewable energy generation, and energy and utility services.
However, we are operating in a strategic context that has evolved significantly since our last Strategic Direction. And Hydro Ottawa is a different company in important ways than it was in 2012, including the scale of its renewable energy generation business. In view of these realities, we have outlined a new vision in this Strategic Direction – to be a leading partner in smart energy future. In essence, it recognizes that the electricity service model is in the midst of significant transformation – taking on a more decentralized, customer-centric, technologically advanced and environmentally sustainable form – and the role of local electrical utilities will be transformed along with it.
Our aim is to be the trusted energy advisor for our customers – large and small – and our community. We believe Hydro Ottawa’s experience and core capabilities, and its position as a City-owned utility, make it uniquely suited to this role. As the energy needs and options of our customers and our community evolve, and as signature projects and developments proceed, Hydro Ottawa will play a leading role in helping our City to transition to a smart energy future.
We will also continue to grow shareholder value, maintaining a focus on strategic business growth within our core areas of strength.
Taken as a whole, the Board and management believe this strategy for the company’s future presents a balanced program for solid performance, adaptation to a changing business environment, and sustainable and profitable business growth.
Strategic Direction 2016-2020