Collus PowerStream Overview presented to

Collingwood Town Council

Ed Houghton, President & CEO Wednesday, January 28, 2015

What is a Electricity Distributor?

Local electricity utilities are commonly known as local distribution companies (LDCs). We typically take power from high-voltage transmission lines, “step-down” the electricity to a lower voltage level, and provide it to local customers. • We are essential service providers who connect to new homes, businesses,

institutions and industry to our distribution systems. • We are a vital piece of any electricity system, and a key player in the

economic development and wellbeing of Ontario. As cities and industries expand, distributors expand with them to facilitate their growth.

• Our business customers focus on the reliable and safe delivery of electricity. We install and maintain equipment that ensures the electricity is provided at an appropriate voltage which protects machinery and digital devices from damage.

What is a Electricity Distributor?

• We are committed to electricity conservation, creating and implementing

conservation programs across the province that save consumers money, protect the environment, and help address Ontario's energy supply challenge.

• We are both publicly and privately owned. They are regulated monopolies in their respective communities and service areas. The government, through the Ontario Energy Board, regulates the rates that distributors charge customers for the distribution service.

• We are the primary electricity billing agent, dealing directly with residential and business customers.

Who We Are - History

The showroom of the hydro-electric office at 39 Hurontario Street, opened in 1923, sold a

variety of labour-saving household appliances.

Traffic lights were installed on Hurontario Street in 1948, at the intersections First,

Second, Third and Hume streets to control increasing automobile traffic. Photo at left

shows Hurontario Street with above-ground wires; photo above in 1948 shows new street

lights after wires were buried.

In 1952 a sub-station housing six 667-KVA transformers was erected

on St. Marie Street and the distribution system expanded from

2,300 to 4160 volts.

1889 – First Electricity 1908 – Utility Formed 2000 – Two Business Units 2001 – T of BM & Clearview 2012 – Collus PowerStream

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Collus PowerStream Service Territory

Collingwood Clearview Township Town of Blue Mountains

Who We Are Electrical Customer Class Breakdown Based on 2014 full-time equivalent basis

Collingwood Thornbury Stayner Creemore Total Customers

Residential 10,982 1,317 1,768 552 14,611 <50 kW 1,233 193 207 85 1,718 >50 kW 99 12 11 6 128

Total Customers 12,314 1,522 1,978 643 16,457

Governance Structure

Collingwood PowerStream Utility ServicesDavid McFadden, Chair

Brian Bentz, DirectorDavid Garner, DirectorDan Horchik, Director

Mayor Sandra Cooper, DirectorMayor Jeff Lehman, Director

Ed Houghton, President & CEOCindy Shuttleworth, CFO

Pamela Hogg, Board Secretary

Town of Collingwood50%

PowerStream Inc.50%

Audit & Finance Committee

Dan Horchik, ChairDavid McFadden

Mayor, Jeff Lehman

HR & Governance Committee

David Garner, ChairBrian Bentz

Mayor, Sandra Cooper

Collus PowerStream Solutions Corp17 Employees

Collus PowerStream Energy Corp 0 Employees

Collus PowerStream Corp

11 Employees

Who is Collus PowerStream

– Collus PowerStream is a strategic Partnership equally-owned by the Town of Collingwood and PowerStream Inc.

– Who is PowerStream - PowerStream is a community-owned energy company that provides power and related services to more than 370,000 customers residing or owning a business in communities located immediately north of Toronto and in Central Ontario. It is jointly owned by the Cities of Barrie, Markham and Vaughan.

– Why a Strategic Partnership – Simply stated, the changing needs of our customer and to provide maximum value to our Shareholders.

– We provide employment to 28 wonderfully talented and dedicated men and women.

– We pursue new opportunities both locally and regionally which benefit our customers and provide value to our Shareholders.

– We build and maintain sustainable systems based on strong asset management programs.

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Who is Collus PowerStream Vision

Together, we will grow, maximize opportunities and exceed customers’ and shareholders expectations.

Mission

Our business provides people with the energy for success, and with the necessities of life.

Values

Trust – Building & Maintaining Customer Confidence Responsibility – Committed to Service Quality, Reliability & Conservation Sustainability – Environmental, Economic, Social & Cultural People – Strong Relationships & Pride Make a Difference Partnerships & Collaborations – Leveraging & Sharing Resources Continuous Improvement – Business Processes & Technology That Delivers Results

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What Are Our Customers’ Needs?

• Energy Consumers are demanding more from the product and services we provide. They are seeking added value, personal connection and

products and services that align with their lifestyles – all of which go well beyond the traditional energy experience.

• Energy Consumers are increasingly interested in receiving additional energy and non-energy products and services from their local LDC.

• Energy Consumers are interested in bundled packages, particularly when they deliver savings, convenience or ease of use.

So…. • Within this environment, energy providers need to move quickly to define

and deliver value in traditional energy markets and in the “beyond-the-meter” market. – We need to adapt to the constantly changing needs of the consumer – We need to balance and embed consumer wants into our operations

and product offerings

The Power to Deliver

• Many, if not all of the stakeholders in the electricity business in Ontario today believe that the efficiency of a distribution utility is affected by the scale of its operations.

• Through our strategic partnership, Collus PowerStream has been able to leverage the benefits of PowerStream's size and scale in several key areas of our business.

• Through a “Shared Service Agreement” we benefit in the area of: – Control Room & After-Hours Dispatch – Health & Safety Support – Conservation & Demand Management (CDM) Program Delivery – Regulatory Support – Human Resource Process and Policy Support – Conversion to IFRS Support – Etc.

What Our Customers Are Saying HYDRO RESULTS SNAPSHOT:

Report Card: A

Benefits of the Strategic Partnership

1. Complimentary Vision, Mission and Values. Collus and PowerStream each have a strategic vision, mission and values that compliments each other to describe their future as a regulated electric utility. This will enable the company to effectively implement it’s business plan to deliver clean, affordable and reliable energy to its customers now and in the future.

2. Platform to Leverage Scale. Ability to leverage the size of PowerStream’s operations and diversity compared to those of Collus PowerStream on a standalone basis. To provide (i) enhanced operational stability, (ii) greater ability to execute Conservation and Demand Management programs, (iii) greater ability to validate business strategy execution risk with a leading, large LDC, (iv) increase asset utilization and share reinvestment programs, (v) a stronger voice in shaping Provincial energy and economic development policies, and (vi) allow for additional options for future potential strategic transactions.

Benefits of the Strategic Partnership, cont’d

3. Complimentary Geographic Coverage and Potential Future Diversity. Ability to take advantage of balanced coverage throughout Central Ontario, where Collus PowerStream and PowerStream have complementary geographic coverage. In addition Collus PowerStream sees value and potential in augmenting its geographic diversity with strategically partnering with other adjacent LDC’s to create increases in scale and scope.

4. Employee Engagement and Combined Expertise. Will combine complementary areas of expertise drawing on the intellectual capital, technical expertise and experience of a deeper and more diverse workforce. In order to capture the perspective of the Collus PowerStream employees as it pertains to the benefits and successes of the strategic partnership, an internal employee survey was conducted to measure the responses to ten key questions from a “pre-partnership” and “post-partnership” point of view. The survey was distributed to all 28 dedicated employees across all departments using a third-party software which ensured that the responses were posted anonymously so that the employees would be able to posts results freely and candidly.

PowerStream would like to invite Council to…

Collus PowerStream and Powerstream Education / Orientation Sessions

When: Tuesday, February 10th or Wednesday, February 11th Time: 9:30 am – 11:00 am Orientation

11:00 am – 12:00 Tour Where: PowerStream Inc., 161 Cityview Blvd, Vaughan ON

RSVP by Monday, February 2, 2015 Pamela Hogg 705-445-1800, ext 2255

phogg@collus.com

Questions?