executive compensation governance report - enmax · oversight responsibility all executive...

ExEcutivE compEnsation GovErnancE rEport

2012 I ENMAX Corporation

Enmax’s approach to ExEcutivE compEnsation• ENMAX’sStrategicDirection

• CompensationPrinciples

• PayPositioning

• PeerGroup

• CompensationComponents

• PayMix

compEnsation GovErnancE at Enmax• MandateoftheHumanResourcesCommittee

• CompensationApprovalProcess

• CompensationRiskMitigation

• Compensation“Claw-backs”

• CompensationAdvisors

2012 compEnsation DEcisions• NamedExecutiveOfficers

• SettingEachCompensationComponent

DEtailED compEnsation DisclosurE• SummaryCompensationTable

• PensionPlanTables

• EmploymentAgreementsandTerminationProvisions

2012 Executive Compensation Governance Report 1

Enmax’s stratEGic DirEctionAtENMAX,wepowerAlberta’swayoflife.Webuyandmakeelectricity,moveitacrossournetworkofwirestohomes

andbusinesses,andmarketitinwaysthatworkforourcustomers.OurdiversityacrosstheelectricityvaluechaincontinuestostrengthenourcompanyandenablesustodeliversteadyearningstoourShareholder,TheCityofCalgary.Goingforward,theENMAXpromiseremainsthesame–toexceedourcustomers’expectationswhileprovidingsafe,reliablepowerthatcanbedependedoneveryday.

compEnsation principlEsAtENMAX,wecompensate,reward,andrecognizeemployeesateveryleveloftheorganizationbasedontheir

contributionstowardourbusinessoutcomes.Weworkhardtoattract,motivate,andretainacapableworkforce.Inordertoaccomplishthis,wehaveestablishedcompensationprogramsthataredesignedtomeetthefollowingobjectives:

• Attractandretainkeytalentbyprovidingcompensationthatiscompetitivewithourestablishedpeergroup;

• Encouragebehavioursthatgenerateoutcomesalignedwithourbusinessstrategyand“riskprofile”;

• Alignemployeeinterestswithourbusinessobjectivesbysupportingapay-for-performanceculturethatrewardsstrongperformanceandreducesvariablecompensationpaidintheeventofcertainbusinessgoalsnotbeingmet;

• Responsibleandtransparentcompensationpoliciesandprocesses;and

• Flexibilityinordertorespondtocontinuouslyevolvingmarketandgovernancepractices.

Ultimately,weendeavourtoensurethatwearecompetitivewiththelabourmarketwithinwhichwecompeteforkeytalent.

pay positioninGInordertosupportourcompensationobjectives,ENMAX’scompensationstructureisdesignedtoprovidetargettotal

directcompensationatthemedian(50thpercentile)ofourestablishedlabourmarket(describedbelowunderPeerGroup)forperformancethatmeetsexpectations.Compensationforanindividualmayvaryfromthemedianbasedonavarietyoffactors,including:

• ScopeoftherolewithinENMAX;

• Keyskillsandcontributionsoftheindividual;

• Tenureandexperienceintherole;and

• Otherconsiderationsrelatedtoattractionandretention.

Thecompetitivenessofourcompensationstructureisreviewedperiodicallytoensurecontinuedappropriateness.Onanannualbasis,theHumanResourcesCommittee(HRC)reviewsthepositioningofeachexecutivewithinthecontextofENMAX’scompensationstructure,competitivepaylevels,andinternalrelativity,andappropriateadjustmentsaremade.

pEEr GroupWereviewourcompensationstructureanditscompetitivenessannuallyrelativetoapeergroupofcompaniesthat

isconsideredtoberelevantforcompensationpurposes.ThiscomparisonreflectsthemarketwithinwhichENMAXcompetesforexecutivetalentandwithcompaniesthathavesimilarbusinessoperations.Inaddition,thepeergrouphassignificantAlbertapresence,reflectinglocalpaypracticesandcompetitivepressures.

Enmax corporation’s approach to ExEcutivE compEnsation

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Weperiodicallyreviewthepeergroupselectioncriteriaandcompanieswithinthepeergroupforcontinuedrelevanceandappropriateness.Acomprehensivepeergroupreviewwasconductedin2011,atwhichpointthepeergroupwasexpanded.InAugust2012,theHRCreviewedthepeergrouptoensurethatthecriteriaidentifiedforselectingpeercompaniesforbenchmarkingpurposeswerestillvalid.Ournextpeergroupreviewwillbeconductedin2013.

Thefollowingcriteriahavebeenusedtodevelopourcurrentpeergroup.

critEria Focus rationalEindustry • PowerGeneration

• EnergyUtilities

• EnergyServices

• Oil&GasExploration&Production

• IndependentPowerProducers&EnergyTraders

• Oil&GasStorage&Transportation

• Non-autonomousorganizations

• Industriesinwhichrelevantskillsandexperienceattheexecutivelevelaretypicallyfound,aswellsimilarityinbusinessfocus.

• AlsoreflectsthatorganizationsinsomeoftheseindustriesoperateunderasimilarregulatoryframeworkasENMAXandhavesimilarlinesofbusiness.

OwnershipStructure • Governmentorganizations

• Autonomous,publicly-tradedcompanies

• Subsidiaryorganizations

• ReflectstheownershipstructureofENMAX,withresponsibilitiestotaxpayers,andconsidersthatexecutivetalentcanbesourcedfromavarietyoforganizations.

Size • SimilarinsizetoENMAX (i.e.,approximately0.5xto2x ENMAX’srevenue)

• Reflectsthescopeandcomplexityofoperations,andlevelofinfrastructurerequiredtooperateinthisindustry.

Geography • BasedinCanada

• RepresentationofAlberta-basedorganizations

• ReflectsthepaypracticesandcompetitiveenvironmentwithinwhichENMAXcompetesforexecutivetalentinAlbertaand,morebroadly,Canada

Availabilityofmarketdataisalsoafactorinthedevelopmentofthepeergroup.Assuch,thecompaniesinourpeergroupareallparticipantsinTowersWatson’sEnergyandGeneralIndustrysurveys.


Ourpeergroupforexecutivecompensationpurposesiscomprisedofthefollowingorganizations:

company provincE inDustry ownErship structurEAltaLinkLP Alberta ElectricUtilities LimitedLiabilityPartnership

ARCResourcesLtd. Alberta Oil&GasExploration&Production Autonomous/PubliclyTraded

ATCOLtd. Alberta Multi-Utilities Autonomous/PubliclyTraded

BCHydro BritishColumbia ElectricUtilities Government

BrucePower,L.P. Ontario IndependentPowerProducers&EnergyTraders

LimitedLiabilityPartnership

CanadianOilSandsLtd. Alberta Oil&GasExploration&Production Autonomous/PubliclyTraded

CapitalPowerCorp. Alberta IndependentPowerProducers&EnergyTraders

Autonomous/PubliclyTraded

ChevronCanadaResources Alberta Multi-SectorHoldings Subsidiary

DevonCanadaCorporation Alberta Oil&GasExploration&Production Subsidiary

EmeraInc. NovaScotia ElectricUtilities Autonomous/PubliclyTraded

EnbridgeGasDistributionInc. Alberta GasUtilities Subsidiary

EPCORUtilitiesInc. Alberta ElectricUtilities Government

FortisAlbertaInc. Alberta ElectricUtilities Subsidiary

FortisBCEnergyInc. BritishColumbia ElectricUtilities Subsidiary

FortisInc. Newfoundland ElectricUtilities Autonomous/PubliclyTraded

HydroOneInc. Ontario ElectricUtilities Government

InterPipelineFund Alberta Oil&GasStorage&Transportation Autonomous/PubliclyTraded

ManitobaHydro-ElectricBoard Manitoba ElectricUtilities Government

OntarioPowerGenerationInc. Ontario ElectricUtilities Government

PengrowthEnergyCorporation Alberta Oil&GasExploration&Production Autonomous/PubliclyTraded

SaskatchewanPowerCorp. Saskatchewan ElectricUtilities Government

SaskEnergyInc. Saskatchewan GasUtilities Government

TerasenGasInc.(FortisBCInc.) BritishColumbia ElectricUtilities Autonomous/PubliclyTraded

TransAltaCorp. Alberta IndependentPowerProducers&EnergyTraders

Autonomous/PubliclyTraded

ENMAXisnearthe70thpercentileofitspeergrouponrevenue.Asascopemeasure,revenuetypicallyhasthestrongestindicationofmarketpaylevels,andisviewedasagoodindicationofthecomplexityofanorganization.Assetsizeservesasasecondaryreferenceasitreflectsthecomplexityandscopeofoperationsforthoseorganizationswithwhomwecompetefortalent.ENMAXisnearthe20thpercentileonassets.

rEvEnuE assEts50thPercentile $2.1Billion $7.9Billion

75thPercentile $3.7Billion $15.0Billion

Enmax $3.2Billion $4.8Billion

PercentileRank 68thPercentile 19thPercentile

Ourexecutiverolesareassessedrelativetothemostdirectlycomparablepositionsinthepeercompanies,consideringsuchfactorsaspositionresponsibilities,spanofcontrol,managementlevel,reportingrelationships,andstrategicfocus.

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compEnsation componEnts

Ourexecutivecompensationprogramiscomprisedofthefollowingelementsofcompensation.

compEnsation ElEmEnt LINkTOCOMPENSATIONOBjECTIvES LINkTOBUSINESSOBjECTIvESFixED compEnsation

Salary • Competitiveness

• Incomesecurity

• Recognizeskillsandleadership,andreflectdegreeofaccountability

Competitivepayensureshighqualitytalentinordertoachievethebusinessobjectives

Pension • Competitiveness

• Incomesecurity

• Retention

Competitivepensionensureshighqualitytalentinordertoachievethebusinessobjectives

Benefits • Competitiveness

• Health&well-being

Competitivebenefitsensureshighqualitytalentinordertoachievethebusinessobjectives

Perquisites • Competitiveness Competitiveperquisitesensureshighqualitytalentinordertoachievethebusinessobjectives

vARIABLE(OR“AT-RISk”COMPENSATION)

AnnualvariablePayPlan(AvPP) • Competitiveness

• Pay-for-performance

• Retention

Rewardstheachievementofshort-termobjectivesmeasuredattheCorporate,BusinessUnit,andIndividual/TeamlevelduringtheyearCompetitivepayensureshighqualitytalentinordertoachievethebusinessobjectives

Long-termvariablePayPlan(LTvPP) • Competitiveness

• Pay-for-performance

• Retention

Rewardstheachievementoflonger-termbusinessandstrategicobjectivesmeasuredovera3-yearperiodCompetitivepayensureshighqualitytalentinordertoachievethebusinessobjectives

Followingthecompletionofthereviewofourcompensationprogramsandpracticesin2011,changestothedesignofourAVPPandLTVPPwereintroducedin2012inorderto;

1.provideagreaterpay-for-performancefocusalignedwiththeachievementofourstrategicgoals,

2.strengthenthealignmentofparticipants’interestswithourShareholder,and

3.betteralignthefullrangeofcompensationopportunitieswithmarketlevels.

pay mixOurtotal“direct”compensationiscomprisedofsalaryandvariablepay,andexcludespension,benefitsandperquisites.

Atargetedpaymixisdeterminedforeachexecutiveinconsiderationofcompetitivepractices,internalrelativity,andtherole’sscopeofresponsibility.Thetargetedmixbetweenthecompensationelementsvariesdependingontheexecutive’sabilitytoimpactshort-termandlong-termbusinessresults,andtoreflectcompetitivepractices.

Theactualpaymixmayvaryfromtargetbasedonanassessmentofmultiplefactors(discussedaboveinPayPositioning),andisreviewedannuallybymanagementandtheHRCtoensurethatENMAX’scompensationobjectivesarebeingachieved.Theactualpaymixvariesfromyeartoyearbasedonperformanceandotherfactors.

Ourcompensationstructurehasbeendevelopedinordertoprovidethemajorityofcompensationintheformofvariable,or“at-risk”,paytoensurealignmentwithperformanceandourShareholder’sinterests.


compEnsation GovErnancE at Enmax

manDatE oF thE human rEsourcEs committEETheHumanResourcesCommittee(HRC)oftheBoardofDirectors(Board)isresponsiblefortheoversightofENMAX’s

compensationprogramsforexecutives.SpecificaccountabilitiesoftheHRCinclude:

• Overseekeycompensationandhumanresourcespolicies;

• Reviewthecompensationphilosophyandprogramstoensurealignmentwithbusinessobjectives;

• ReviewtheCEO’sperformanceandtheCEO’sassessmentoftheperformanceofherdirectreports;

• ReviewandrecommendtotheBoardforapprovalthecompensationoftheCEOandotherexecutivesandapprovetheoverallsalarybudget;

• Overseethepensionplans;and

• Assesscertainhumanresources-relatedrisks,includingpensionrisk,andworkforcedevelopmentandretentionrisks.

compEnsation approval procEssTheHRCmeetsquarterlywithspecialmeetingsconvenedasrequiredoverthecourseoftheyear.TheCEOprovides

recommendationstotheHRConcompensation-related issues,basedoninformationandanalysispreparedbymanagementwithinputfromexternalcompensationconsultantsandexperts.TheHRCconsidersavarietyofinformationinreviewingtheCEO’srecommendationsandmakesarecommendationtotheBoardfortheirapproval.TheBoardreviewstherecommendationandhasultimateauthoritytoapproveit.

analysis rEcommEnDations approvalWho • PresidentandCEO • HRCfollowingreviewofPresident&

CEO’srecommendations• BoardofDirectors

Inputs • CorporateBusinessUnitandIndividualBusinessResults

• MarketdataanalysisandcompetitivepracticesprovidedbyTowersWatson

• CEOprovidedrecommendationsre:DirectReportstotaldirectcompensation

• Meridiancompensationconsultants

• HumanResourcesCommitteerecommendationsincludingPresident&CEOtotaldirectcompensationasinformedbymarketdataandcompensationconsultants

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compEnsation risk mitiGationOurcompensationprogramsaredesignedtoalignwithstandardizedCanadiangovernancepracticessoasnotto

unintentionallycreateanincentiveforexecutivestotakeunduerisk.TheHRCregularlyreviewsthecompensationprogramsforcontinuedappropriatenessand,fromtimetotime,makesmodificationstoalignwithevolvingmarketandgoodgovernancepractices.

Highlightsofourprogramsandpracticesthatmitigatecompensation-relatedrisksareoutlinedbelow.

risk-mitiGatinG practicEs DEscriptionOversightResponsibility Allexecutivecompensation-relateddecisionsarereviewedandapprovedbytheHRCand

Board,whichhasultimateoversightandaccountabilityofexecutivecompensationatENMAX.Inpreparingitsrecommendations,theHRChasaccesstoitsownindependentadvisortoprovideinputfromanexternalperspective.

CompetitivePositioning Ourcompensationphilosophytargetscompensationtobedeliverednearthe50thpercentile,withtheabilitytopayat,above,orbelowthetargetedlevelbasedonperformanceandotherrelevantfactors.Theoverallpaylevelsandpaymixareestablishedbyreferencingmarketlevelsanddonot“over-weigh”anyonecompensationelement.

PayMix Asignificantportionofexecutivecompensationisdeliveredinvariablepay,throughtheAvPPandLTvPP.Performanceisassessedovermultipletimehorizons(1-yearthroughtheAvPP,and3-yearthroughtheLTvPP),withagreateremphasisonlong-termperformanceforexecutives.Multiple,overlappingperformanceperiodsensurethatthereisanongoingfocusonlong-termsustainabilityofperformance.

MeasuringPerformance PerformanceisassessedinourAvPPandLTvPPusingavarietyofmeasuresattheCorporate,BusinessUnit,andIndividual/Teamlevel.

Themeasureshavebeenselectedtoprovideabalancedfocusonvariousfinancialandoperatingresultsthatultimatelysupportourbusinessstrategy.Multiplemeasuresreducetheemphasisononemetricandprovideamoreholisticviewofperformance.

Specificperformancegoals,suchasthethreshold,target,andmaximumforeachmeasure,arereviewedannuallybytheHRCforcontinuedappropriatenessandrelevance;theperformancerangeisadjustedforupcomingperformanceperiods,asappropriate.

IncentivePlanCaps Incentiveplanpayoutsarecappedinordertoensurethatexcessivepaymentsdonotoccurinyearsofextraordinaryperformance.AvPPpayoutsarecappedat150%oftarget,andLTvPPpayoutsarecappedat200%oftheopportunitysize.

IncentiveClaw-backs Aclaw-backpolicyisinplacewhichseeksrecoupmentofvariablecompensation(oradjustmentoffuturepayments)intheeventofmaterialrestatementoffinancialsorintentionalfraudormisconductthatcausedorpartiallycausedtheneedforrestatement.

InAugust2012theHRCretainedtheservicesofanindependentexternalcompensationadvisortoassesstherisksinherentinENMAX’scompensationprograms.TheCommitteereceivedconfirmationthatthecurrentcompensationprogramsandgovernancepracticesdonotencourageexcessiverisk-takingthatwouldhaveamaterialimpactonENMAX’sfinancialresultsandreputation.


COMPENSATION“CLAW-BACkS”Acompensation“claw-back”provisionforourvariablepayplanswasintroducedin2012andappliestothePresident

&CEO,ExecutiveVicePresidents,andVicePresidents.

ThedeterminationofpaymentsunderENMAX’svariablepayprogramsarebasedonassumptionsandrepresentationsprovidedbymanagement.TheBoardreservestherighttoseekrepaymentofpastpaymentsmadeand/oramendanyfuturepaymentsinsituationswhere:

• Theamountofvariablepayreceivedbytheexecutiveorformerexecutivewascalculatedbasedupon,orcontingenton,theachievementofcertainfinancialresultsthatweresubsequentlythesubjectof,oraffectedby,amaterialrestatementofalloraportionofENMAX’sfinancialstatements;

• Theexecutiveorformerexecutiveengagedinintentionalmisconductorfraudthatcausedorpartiallycausedtheneedfortherestatement;and

• Theamountofvariablepayreceivedwouldhavebeenlowerhadthefinancialresultsbeenproperlyreported.

compEnsation aDvisorsTheHRCretainstheservicesofMeridianCompensationPartnersInc.toserveastheindependentexternaladvisoron

executivecompensationmatters.In2012,Meridian’sservicesincluded:

• reviewingtheCEOemploymentcontract;

• assessingtherisksinherentinourcompensationprograms;

• providinginputonthe2013LTVPprogramdesign;and

• reviewingmetricsusedinourAnnualVariablePayProgram.

Managementalsoretainstheservicesofexternaladvisorsonothercompensation-relatedmatters.For2012:

• TowersWatsonwasretainedtoreviewthecompetitivenessofourexecutivecompensationandtoprovideperiodicadviceonmattersrelatedtoourvariablepayplans.ENMAXalsoparticipatesinvariouscompensationsurveysrunbyTowersWatson.

• TowersWatsonisENMAX’sactuaryand,assuch,providesactuarialservicesfordefinedbenefitpensionadministrationandassociatedaccounting/financialservicesrelatedtothepensionplan.

• Mercer(Canada)LimitedwasretainedtoprovideinvestmentconsultingservicesrelatedtotheENMAXPensionPlan(DBandDCprovisions).

• In2012,managementconductedaRequestforProposalforinvestmentconsultingservices.SEIInvestmentsCanada(SEI)wascontractedasaManagerofManagersfortheDBcomponentoftheENMAXPensionPlan(PensionPlan)andTowersWatsonwascontractedasaninvestmentadvisorfortheDCcomponentofthePensionPlan.

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FeespaidbyENMAXtotheHRC’sandManagement’sexternalcompensationadvisorsareoutlinedbelow.Thisreflectswhenfeeswerepaid,andmaynotalignwithwhenworkactuallybeganorended.

company sErvicEs 2011 FEEs 2012 FEEsMeridian(RetainedbytheHRC) ExecutiveCompensation

Consulting$51,390 $56,794

TowersWatson

(RetainedbyManagement)

Executive/Non-executiveCompensationConsulting

$291,083 $33,882

PensionPlanActuarialServices $145,076 $314,408

Accounting/Finance $164,167 $115,000

CompensationSurveys $17,357 $9,975

Mercer

(RetainedbyManagement)

InvestmentConsulting $63,572 $14,805

CompensationSurveys $6,552 $7,573


namED ExEcutivE oFFicErsThissectiondiscussescompensationdecisionsrelatedtotheNamedExecutiveOfficers(NEOs)in2012,whoare

asfollows:

• President&CEO-GiannaManes

• FormerInterimPresident&CEO-CharlesRuigrok

• EVPFinance&CFO-DavidHalford

• EVPGeneration&WholesaleEnergy-DavidRehn

• EVPRegulatory&LegalServices-RobertHemstock

• EVPTransmission&DistributionServices-DaleMcMaster

sEttinG Each compEnsation componEntOurcompensationprogramsaredesignedtosupportENMAX’sbusinessobjectives,allowingustosuccessfully

executeourhumanresourcesstrategyandsupportahigh-performingculturebyaligningpaywithperformance.Indeterminingourexecutives’compensationinagivenyear,theHRCconsidersacomprehensivesetoffactors,whichincludes:

• Externalmarketdataforcomparablepositionswithinourpeergroup;

• AssessmentofENMAX’sperformance;

• AssessmentofperformanceoftheCEOandtheCEO’sdirectreports;

• Eachexecutive’spotentialtocontributetoourstrategicdirectionandlong-termvaluecreationforourShareholder;and

• Summaryofcompensationdecisionsfromtheprioryear.

Inaddition,theHRCconsidersadvicefromitsindependentcompensationadvisorandfactorssuchasmarkettrendsandpractices,competitivepressures,andbusinessoutlook.

salariEsSalariesareestablishedatalevelthatiscompetitiveinthemarketforsimilarrolesandreflectsthenatureandlevelof

theposition,thelevelofskill,knowledge,andexperienceeachindividualbringstotheirrole,andeachindividual’slevelofperformance.

In2012,weincreasedexecutivesalariesbyanaverageof3.6%toreflectmeritincreases,costoflivingincreases,andcompetitivepressures.Thefollowingshowstheyear-over-yearchangeinsalariesforeachoftheNEOs.

position 2011 salary 2012 salary %CHANGEPresident&CEO n/a $600,000 n/a

EvPFinance&CFO $375,000 $390,000 +4.0%

EvPGeneration& WholesaleEnergy

$412,000 $420,200 +2.0%

EvPRegulatory&LegalServices $320,000 $339,500 +6.1%

EvPTransmission& DistributionServices

$350,000 $370,000 +5.7%

2012 ExEcutivE compEnsation

corporatE pErFormancE

• EBITDA

• Safety(totalrecordableinjuryfrequency)

BUSINESSUNITpErFormancE

• SelectKPIsthatdrivesuccessataBusinessUnitlevelintheareasofcostcontrol,projectdelivery,performance,andcompliance

INDIvIDUAL/TEAMpErFormancE

• Measuressuccessonpersonalperformancegoals

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ANNUALvARIABLEPAyPLAN(AvPP)

PlanDesignENMAX’sAVPPprovidesforcompetitivecompensationthatreflectsthecompany’soverallfinancialperformance,

achievementofkeyperformanceindicators(KPIs)relatedtoeachbusinessunitorfunctionalareaoverwhichanexecutivehasoversight,andindividualperformance.

FollowingthecompletionofareviewofENMAX’spayprogramsin2011,theAVPPwasupdatedtobetterreflectENMAX’sbusinessstrategy,compensationphilosophy,andmarketpractice.Thekeychangestotheplanweredesignedto:

• Provideclearandquantifiableperformanceexpectationsbyestablishingthreshold,target,andmaximumperformancelevels,withpayoutsthatarereflectiveofthelevelofperformanceachieved;

• Improveline-of-sightbyensuringanappropriateweightingonCorporate,BusinessUnit,andIndividual/Teamperformance;

• FocusBusinessUnitKPIsonkeysuccessobjectivesofcostcontrol,projectdelivery,reliability/performance,andcompliance;

• EnsurethateachKPIisthoughtfullydevelopedbyconsideringparticipants’abilitytoimpactperformance;

• Allowforincreaseddifferentiationofpayoutsbasedonindividualcontributionsandperformance;and

• Ensureacompetitivepayoutopportunityatvariouslevelsofperformance.

Therangeofpayouts(expressedasapercentageofsalary)basedonperformanceoftheNEOsisoutlinedbelow.

position BELOWTHRESHOLDpErFormancE (%OFSALARy)

thrEsholD pErFormancE (%OFSALARy)

tarGEt pErFormancE (%OFSALARy)

maximum pErFormancE (%OFSALARy)

President&CEO 0% 37.5% 75% 112.5%

OtherNEOs 0% 22.5% 45% 67.5%

PerformanceismeasuredbasedonCorporate,BusinessUnit,andIndividualfactors,withspecificweightingsforeachcomponent.Theweightingofeachcomponentvariesbyorganizationlevel,asshownbelowfortheNEOs.Performancescoresforeachcomponentcanrangefrom0%oftargetforperformancebelowthreshold,50%oftargetforthresholdperformance,to150%oftargetformaximumperformance.AVPPpayoutsarecappedat150%oftarget.

+ +PRESIDENT&CEO

othEr nEos80%WEIGHT50%WEIGHT

N/A30%WEIGHT

20%WEIGHT20%WEIGHT


2012PayoutsTheHRCconsidersarangeofkeyfactorsindeterminingrecommendedcompensationlevelsfortheCEOandother

NEOs.RecommendationsaresubmittedtotheBoardforapproval.Inanygivenyear,actualAVPPpayoutsfortheNEOsmaybemoreorlessthantargetlevels.ThespecificpayoutsassociatedwiththeAVPPareoutlinedbelowandintheSummaryCompensationTable(page21).

ThefollowingprovidesthetargetedperformanceattheCorporatelevel,andENMAX’sactualresultsrelativetotarget.TheresultingpayoutfactorsforEBITDAandSafetyareshown,andarecalculatedbasedonactualperformancerelativetopre-establishedthreshold,target,andmaximumperformancelevelsfor2012.2012wasanexceptionallystrongyearforbothfinancialandsafetyperformanceresultinginthe2012CorporatePerformancePayoutFactorof150%.

pErFormancE mEasurE

2012 tarGEt pErFormancE

2012 actual pErFormancE

payout Factor

EBITDA(70%Weight) $402.1Million $464.4Million 150%

Safety(30%Weight) 1.54 0.43 150%

CorporatePerformancePayoutFactor 150%

BusinessUnitKPIsandactualperformanceachievedin2012areshownbelow.TheresultingBusinessUnitPerformanceFactorrangesfrom122%to143%.TheCEOexercisedthefollowingdiscretioninassessingandadjustingmidyear2012BusinessUnitKPIperformancemeasures:

• ENMAXPowerCompanyCostControlwasadjustedforKPIpurposestoreflectunbudgetedsafetyinitiativesandcomplianceactivitiesthatwereidentifiedsubsequenttothedevelopmentofthe2012budget;

• TheCommercialCustomerGrowthKPIwasremovedforthepurposesofcalculatingtheENMAXEnergy2012BusinessUnitratingduetochangesinportfoliopositionandmarketprice;and

• ENMAXEncompassCostControlwasadjustedbyapproximately$1Mtorecognizetheaddedcosttheorganizationincurredindirectsupportofhigherthananticipatedcustomersign-upsandrevenueearlyin2012.

TheHRCandBoardretaintheultimateauthoritytoexercisediscretiontoensurethatAVPPpayoutsareappropriateinlightofactualperformanceachieved,andconsiderexternalfactorsthatarebeyondtheparticipants’controlforwhichtheyshouldnotberewardedorpenalized.TheBoarddidnotexercisediscretionin2012regardinganyadditionalAVPPchanges.

ENMAXPower

pErFormancE mEasurE tarGEt pErFormancE


payout Factor

CostControl(25%Weight) $78.9Million $79.5Million 92%

Reliability–SAIDI1Index(12.5%Weight) 0.45 0.39 150%

Reliability–SAIFI2Index(12.5%Weight) 0.90 0.66 150%

Compliance(25%Weight) 0 0 150%

ProjectDelivery(25%Weight) variousMilestones Basedonyear-end ReviewofPerformance

100%

ENMAXPowerPerformancePayoutFactor 123%

1 SystemAverageInterruptionDurationIndex.2 SystemAverageInterruptionFrequencyIndex.

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ENMAXPowerServices

pErFormancE mEasurE 2012 tarGEt pErFormancE


payout Factor


Performance–URD1DesignTimelines (12.5%Weight)

>85% 97% 140%

Performance–URD1ConstructionTimelines(12.5%Weight)

>75% 77% 107%


ProjectDelivery(25%Weight) variousMilestones Basedonyear-endReview ofPerformance

150%

ENMAXPowerServicesPerformancePayoutFactor 143%

1 Undergroundresidentialdistributiondesignbuildshallowutilities.

ENMAXEnergyandEnvision



payout Factor


Performance–ResidentialCustomerGrowth(12.5%Weight)

215,000 282,000 150%

Performance–GenerationAssetAvailability(12.5%Weight)

93% 92.4% 90%


ProjectDelivery(25%Weight) variousMilestones Basedonyear-endReview ofPerformance

145%

ENMAXEnergyandEnvisionPerformancePayoutFactor 141%


ENMAXEncompass



payout Factor


CustomerSatisfaction(25%Weight) 80% 79.5% 98%

Performance–ResidentialCustomerGrowth(25%Weight)

215,000 282,000 150%


ENMAXEncompassPerformancePayoutFactor 122% Basedonyear-endReview ofPerformance

145%


ENMAXSharedServices



payout Factor

CostControl(25%Weight) $85Million $77.8Million 150%

Reliability/Performance AverageofBusinessUnitPerformance

AverageofBusinessUnitPerformance

136%

ProjectDelivery AverageofBusinessUnitPerformance

AverageofBusinessUnitPerformance

124%


ENMAXSharedServicesPerformancePayoutFactor

140% Basedonyear-endReview ofPerformance

145%


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Individualgoalsareestablishedatthebeginningoftheyear,specifictoeachNEOandhisorherareaofresponsibility.IndividualperformanceisassessedbytheHRCfortheCEO,andbytheCEOforherdirectreports.Keyaccomplishmentsfor2012areprovidedbelow,alongwiththeresultingperformancerating.

namE 2012 kEy accomplishmEnts 2012 pErFormancE ratinG

GiannaManes

• Institutedprocessesandactionstodriveimprovedsafetycultureandresults,includingthecompletionofthe2012safetyassessment,developmentandtrackingofadditionalsafetymeasuresasdeterminedfromtheassessment,developmentofactionplansandinitiateimplementationofcriticalMeasures.

• ImprovedExecutiveandemployeeengagement:

• Fosteredteamworkandaccountabilityattheseniorleadershiplevelandinitiatedimprovementinsuchareasassuccessionplanningandleadershipdevelopment.

• Implementedenterprise-widecommunicationandemployeemeetingsin2012todiscussemployeeengagementsurveyresultsanddevelopmanagement’sresponseplan.

• Establishedandfosteredconstructiverelationshipswithelectedofficials,regulators,thebusinesscommunityandkeybusinesspartnerstoensureunderstandingofENMAX’sperformance,decisionsandpositionsonkeyissuesfacingourindustry.

Metorexceededallexpectations

DavidHalford

• Maintainedinvestmentgradecreditratings(BBB-orbetter)atbothS&PandDBRSthroughout2012.

• Achievedcorporate2012financialtargetsandFinanceOfficecostbudget.

• Executive-approvedplanforupgradetofinancialsystems–inplacebyyearend.

• InternalControlforFinancialReportingprojectunderway


DavidRehn

• AchievedOperationalExcellencethroughperformanceinthesafety,reliability,andcost-effectivenessofoperatingourgenerationassets.

• Managedthevolatilityanddiversificationofourassetandcommodityportfolioandachievedfinancialtargets.

• ManagedmajorcapitalprojectsincludingShepardandBonnybrookTurbineandGeneratoroverhauls.

• SecuredjointpartnerforShepardEnergyCenter.


RobertHemstock

• ApprovalofFederalRegulationprovidingdefinitivetimelinesfortheretirementofexistingcoalplantsorcompliancewithemissionslimitsthatwouldrequireCarbonCaptureandStorage.EnvironmentCanadaacceptedENMAX’spositionofnoBaseLevelIndustrialEmissionRequirementsonexistingcoalplants.

• Shepardpartnershiptransactionclosure.


DaleMcMaster

• Significantlyimprovedonthe2011safetyperformanceofENMAXPowerandestablishedarobustsafetyframeworkthatwillenabletheachievementofthegoalsofMissionZero.

• CompletetheorganizationrestructureforENMAXPower.



BasedontheCorporate,BusinessUnit,andIndividual/Teamperformanceachieved,theoverallpayoutfactor,targetandactualAVPPpayoutsforeachNEObasedon2012performanceispresentedbelow.

position BUSINESSunit

Factor

inDiviDual Factor

ovErall payout Factor

avpp payout ranGE (%OFSALARy)

payout For 2012

pErFormancE

Threshold Target Maximum $value %ofSalary

President&CEO1 n/a 120% 144% 37.5% 75% 112.5% $486,000 108%

EvPFinance&CFO 140% 120% 141% 22.5% 45% 67.5% $247,500 63%

EvPGeneration&WholesaleEnergy

141% 140% 145% 22.5% 45% 67.5% $274,900 65%

EvPRegulatory&LegalServices

140% 110% 139% 22.5% 45% 67.5% $212,400 63%

EvPTransmission&DistributionServices

127%2 120% 137% 22.5% 45% 67.5% $228,300 62%

1 Pro-ratedfordateofhire.2 BusinessUnitperformancepayoutfactorisablendbetweenENMAXPowerCorporation(80%weight)andENMAXPowerServices(20%Weight)

LONGTERMvARIABLEPAyPLAN(LTvPP)

plan DEsiGn ENMAX’sCEO,ExecutiveVicePresidentsandVicePresidentsareeligibletoparticipateintheLong-TermVariable

PayPlan(LTVPP).ENMAX’sLTVPPfocusesexecutivesonsustaininghighperformance,facilitatingattractionandretentionofcriticaltalent,andaligningexecutives’interestswithourfocusoncreatingShareholdervalueoveralong-termtimehorizon.

In2012,theLTVPPwasredesignedtoprovideagreaterfocusonforward-lookingperformanceoveramulti-yearperiod;thiswaschangedfromhistoricalorone-yearbackward-lookingperformancethathadbeenmeasured,andisalreadythefocusoftheAVPP.TheredesignedLTVP:

• Morecloselyalignswithperformanceobjectivesthatareviewedtobekeysuccessfactorsofthelongertermstrategicplan;

• Encouragescrossbusinessunitcollaborationtoachievesharedgoals;

• Strengthensthepay-for-performancefocusbymeasuringresultsoveraforward-looking,three-yearperformanceperiod;

• Strengthensretentionbytransitioningtoanewvestingschedulethat“cliff-vests”attheendofthethree-yearperformanceperiod;and

• Providesbetteralignmentwithcommonvariablepayandgoodgovernancepracticesinthemarket.

Financial pErFormancE (50%WEIGHT)

• 3-yearaverageReturnonCapitalEmployed(ROCE)

STRATEGICOBjECTIvES (50%WEIGHT)

• ImprovementinMaturityofSafetyCulture

• ImprovementinMaturityofTalentManagementCulture

• ExecutionofKeyStrategicProjects

16

PerformanceundertheLTVPPismeasuredbasedonanequalweightingbetweenfinancialandstrategic(non-financial)measures.

Financialandstrategicgoalsandthreshold,targetandmaximumlevelsofperformancearesetattheoutsetofeachthreeyearperformanceperiod.Attheendoftheperformanceperiod,theHRCassessesperformanceagainsteachmeasure,determinessuccessachievedandmakesarecommendationtotheBoard.InmakingitsassessmenttheHRCconsidersexternalfactorsbeyondtheparticipants’controlforwhichtheyshouldnotberewardedorpenalized.Performancescoresforeachmeasurecanrangefrom0%oftargetforperformancebelowthreshold,50%oftargetforthresholdperformance,100%fortargetperformanceto200%oftargetformaximumperformance.LTVPPpayoutsarecappedat200%oftarget.

AspartoftheLTVPPredesign,targetcompensationopportunityisestablishedforeacheligibleexecutiveposition.LTVPPcompensationopportunityisbasedonmarketreferencesandconsiderationagainstinternalexecutivepeers.Forthe2012to2014performanceperiod(tobepaidin2015),LTVPPcompensationopportunitywasapprovedbytheBoardandcommunicatedtoeligiblePlanparticipantsattheoutsetofthethreeyearperformanceperiod.Participantsunderstandthatthereisnocertaintyofpayoutasitissubjecttoperformanceandemploymentattheendofthethreeyearperformanceperiod.LTVPPpaymentsaremadeinMarchfollowingthecompletionoftheperformanceperiod.

GiventhattheLTVPPProgramwaschangedfromaformergraduatedvesting(i.e.,50%attheendofyear1,and25%attheendofyears2and3)tocliffvesting(i.e.100%attheendofyear3),ENMAXintroducedaone-timeYear1LTVPPTransitionPlanforthe2012performanceperiod(tobepaidin2013)andaone-timeYear2LTVPPTransitionPlanforthe2012and2013performanceperiods(tobepaidin2014).EachTransitionPlanissubjecttofinancialandstrategicperformancemeasuresthatweresetattheoutsetoftheperformanceperiods:

+

Financial pErFormancE (50%WEIGHT)

• 3-yearaverageReturnonCapitalEmployed(ROCE)

STRATEGICOBjECTIvES(50%WEIGHT)

Year1Transition:

• ImprovementinSafety

• ImprovementinVoluntaryTurnover

• GrowthinRetailMarketShare

• ProgressonShepardEnergyCentre

+Year2Transition:

• ImprovementinMaturityofSafetyCulture

• ImprovementinMaturityofTalentManagementCulture

• ExecutionofKeyStrategicProjects


AttheoutsetoftheYear12012performanceperiodandtheYear22012and2013performanceperiods,LTVPPcompensationopportunitywasapprovedbytheBoardandcommunicatedtoPlanparticipants.Participantsunderstandthatthereisnocertaintyofpayoutasitissubjecttoperformanceandemploymentattheendoftheperformanceperiod.LTVPPpaymentsaremadeinMarchfollowingthecompletionoftheperformanceperiod.

PROjECTMID-TERMvARIABLEPAyPLAN(PMTvPP)PLANDESIGNTheEVPGeneration,IT&SupplyChainManagementandselectindividuals(noneofwhomareNEOs)havehistorically

beeneligibletoparticipateinthePMTVPP.Payoutsunderthisplanweretiedtothesuccessfulcompletionofprojectsfocusedonnewgenerationassetconstructionandnewgenerationassetacquisitions.Pre-determinedmilestoneswereestablishedandrelatetofinancial,operational,andtimelinemeasures.

Thisplanwasdiscontinuedin2011followingourreviewofourcompensationprograms.TherearenofurtherawardsunderthePMTVPP.

SPECIALPROjECTCOMPENSATIONIn2012,threeindividualswereadvisedthattheyhadtheopportunitytoreceiveaspecialprojectbonusfortheirefforts

toadvancetheShepardEnergyCenterproject,a$1.4billioninvestmentinAlberta’senergyfuture.OnlyoneNEO,theEVPGeneration&Wholesale,hasanoutstandingopportunitypaymentwhichwillbepaiduponemploymentwithENMAXandsuccessfulcompletionoftheShepardProjectin2015.

pEnsion plans AllNEOsparticipateintheDefinedContribution(DC)provisionoftheENMAXPensionPlan(RegisteredPlan).

Inaddition,theNEOsparticipateintheENMAXCorporationSupplementalRetirementPlan(SupplementalPlan).TheSupplementalPlanisanunfundednon-registeredpensionplan,anditprovidesbenefitsunderadefinedbenefit(DB)provisionandaDCprovision.WiththeexceptionofMr.Hemstock,allENMAX’sNEOsparticipateintheDCprovisionoftheSupplementalPlan.ThesupplementalbenefitspayabletotheNEOsarecalculatedconsistentlywithallothermembersoftheSupplementalPlan.AstheSupplementalPlanisunfunded,benefitsfromthisplanarepaidfromENMAX’sgeneralrevenues.

ENMAXPENSIONPLAN–DEFINEDCONTRIBUTIONPLANTheRegisteredPlanprovidesbenefitsunderaDefinedBenefit(DB)provisionandaDCprovision.ENMAX’sNEOsall

participateintheDCprovisionandtheirbenefitsarecalculatedconsistentlywithallotherDCmembers.AsummaryoftheDCprovisionsareprovidedbelow:

• Employeesareimmediatelyenrolleduponhireandareimmediatelyvestedintheplan,therefore,entitledtoENMAX’scontributionsuponterminationorretirement;

• ENMAXcontributes4%ofemployees’basesalary;

• Employeesmaymakeoptionalcontributionsbetween0%to4%ofbasesalary,whichENMAXmatchesataratebetween50%to150%basedontheemployee’sageandservice;

• TotalcontributionstotheDCprovisioncannotexceedtheMoneyPurchaseLimitimposedbytheIncomeTaxAct(Canada),whichwas$23,820in2012;and

• Employeesdirecttheirowninvestmentsandmayinvestinvariousfundscoveringallmajorassetclasses.

DEFINEDCONTRIBUTIONSUPPLEMENTALRETIREMENTPLAN(DC-SRP)EffectiveMarch21,2006,theDCprovisionoftheSupplementalPlan(DC-SRP)wasestablishedforallnewemployees

andexistingemployeeswhodidnotpreviouslyqualifyfortheDBprovisionsoftheSupplementalPlan.TheDC-SRPis

18

availabletoemployeeswhosebasesalaryplusactualannualvariablepayamountsexceedtheannualearningsthresholdundertheDCprovisionoftheRegisteredPlan.OtheraspectsoftheDC-SRPinclude:

• Employeecontributionsareneitherpermittednorrequired;

• ENMAXmakesnotionalallocationsof6%(foremployeeswithlessthan40points),8%(foremployeesbetween40and60points)and10%(foremployeeswith60pointsormore)ofpensionableearningstotheemployee’snotionalaccountbalance;

• PensionableearningsaredeterminedastheamountofbasesalaryplusactualannualvariablepayinexcessoftheannualearningsthresholdundertheDCprovisionoftheRegisteredPlan.

• Pointsarecalculatedbasedonageplusservice;

• Employees’notionalaccountbalancesaremaintainedbySunLifeFinancialandarecreditedwithnotionalinvestmentincomeasiftheywereinvestedinabalancedfund;and

• MembersareentitledtoreceiveDC-SRPbenefitsaftertwoyearsofparticipationintheRegisteredPlan.

DEFINEDBENEFITSUPPLEMENTALRETIREMENTPLAN(DB-SRP)ENMAXclosedtheDBprovisionoftheSupplementalPlan(DB-SRP)tonewentrantseffectiveMarch21,2006.

ParticipantswhoseearningswouldexceedanannualearningsthresholdundertheDBprovisionsoftheRegisteredPlan($147,364for2012)willearnserviceforthatyearundertheDB-SRP.OtheraspectsoftheDBprovisionsinclude:

• Employeecontributionsareneitherpermittednorrequired;

• FormulaforeachyearofDB-SRPserviceis1.75%ofbestaveragepensionableearnings;

• PensionableearningsaredeterminedastheamountofbasesalaryplusactualannualvariablepayinexcessoftheannualearningsthresholdundertheDBprovisionoftheRegisteredPlan;and

• Bestaveragepensionableearningsistheaverageofthepensionableearningsinthefiveconsecutivecalendaryearsinwhichpensionableearningsarethehighest.

• MembersareentitledtoreceiveDB-SRPbenefitsaftertwoyearsofservicefromdateofhire;and

• Normalretirementisthelaterofage55andtheattainmentof85points,butnotlaterthanage65.Earlyretirementisage55.Theearlyretirementreductionis3%foreachyearthatthememberretirespriortotheattainmentofage65orthedatewhenthememberhas85pointsundertheRegisteredPlan.

BENEFITPLANSAllofourpermanentemployees,includingENMAX’sNEOs,haveaflexiblebenefitsplanwhichallowsfortheability

tochoosethelevelsofextendedhealth&dental,grouplifeinsurance,short-andlong-termdisability,andaccidentaldeathanddismembermentinsurancethatmeettheirfamily’sneeds.Employeesalsohaveahealthspendingaccount.ThebenefitplanyearresetseveryJulyandmembersmayre-enrollandupdatetheircoveragelevels.

FLEXIBLEPERqUISITEACCOUNTOurexecutivesareprovidedwithaflexibleperquisiteaccountthattheycanallocateannuallytoone,oracombination,

ofthefollowingitems:avehicleallowance,financialplanningservices,ahealthspendingaccount(inadditiontotheamountprovidedunderthecorebenefitsplan),andclubmemberships.

Thevalueoftheflexibleperquisiteaccountis$20,000peryearfortheCEOand$15,000peryearforotherNEOs.ThisvalueofthisbenefitisincludedintheSummaryCompensationTableunder“AllOtherCompensation”.


SUMMARyCOMPENSATIONTABLEReadersarereferredtoENMAX’swebsiteforbiographicalinformationonallNEO’s.

position titlE namE

yEar salary (A)

othEr compEnsation1

(B)

vARIABLEPAyPAID (EARNEDINPREvIOUSyEARS)

total compEnsation

paiD in yEar (REGARDLESSOFyEAREARNED)4

(A+B+C+D)

annual vARIABLEPAyplan EarnED

IN2012,PAIDIN20135

pEnsion valuE6

annual vARIABLEPAy

PLAN2(C)

lonG-tErm vARIABLEPAy

PAID3(D)

President&CEO GiannaManes7

2012 $450,000 $115,383 $0 $0 $565,383 $486,000 $44,000

FormerInterimPresident&CEO CharlesRuigrok8

2012

2011

$721,545

$1,288,523

$0

$0

$0

$0

$0

$0

$721,545

$1,288,523

$0

$0

$0

$0

EvPFinance&cFo DavidHalford

2012

2011

2010

$390,000

$375,000

$375,000

$15,510

$15,478

$15,460

$209,000

$205,000

$134,000

$437,500

$375,000

$200,000

$1,052,010

$970,478

$724,460

$247,500

$208,600

$205,000

$47,888

$46,400

$21,666

EvPGeneration&WholesaleEnergy DavidRehn

2012

2011

2010

$420,200

$412,000

$412,000

$15,510

$335,603

$411,435

$191,000

$187,000

$169,000

$320,000

$300,000

$200,000

$946,710

$1,234,603

$1,192,435

$274,900

$191,000

$187,000

$61,120

$59,900

$59,048

EvPRegulatory&LegalServices RobertHemstock

2012

2011

2010

$339,500

$320,000

$320,000

$15,510

$15,478

$15,460

$158,000

$145,000

$152,000

$410,000

$475,000

$375,000

$923,010

$955,478

$862,460

$212,400

$158,300

$145,000

$85,789

$57,068

$32,611

EvPTransmission&DistributionServices DaleMcMaster9

2012

2011

2010

$370,000

$350,000

$107,692

$15,510

$15,478

$5,153

$147,000

$41,000

$0,000

$130,000 $662,510

$406,478

$112,845

$228,300

$146,500

$41,000

$51,650

$39,100

$8,615

1 AllOtherCompensationreflectsthevalueoftheflexibleperquisiteaccountandcompany-paidcriticalillnessinsurancecoverage.Ms.Manesreceivesaflexibleperquisiteaccountof$20,000peryear,andallotherNEOsreceiveflexibleperquisiteaccountsof$15,000peryear.AllNEOs,exceptforMr.Ruigrok,receivedcompany-paidcriticalillnessinsurancecoverageof$510in2012,$478in2011,and$460in2010.ForMr.Rehn,thevalueinAllOtherCompensationfor2011and2010includespaymentsundertheProjectMedium-termvariablePayPlanintheamountsof$320,125and$395,975,respectively.ForMs.Manes,thevalueinAllOtherCompensationfor2012includesa$100,000relocationbonus.

2 ReflectsamountsearnedbasedonperformanceinpreviousyearandpaidinMarchofyearindicated.3 Reflectsamountsearnedaspartofpreviousyear’sLTvPPthathavevestedandpaidinyearindicated.4 TotalCompensationPaidinyearincludessalary,othercompensationandamountsfrompreviousyear’sAvPPandLTvPPprogramsvestingandpaidinyearindicated.5 ReflectsamountsearnedbasedonperformanceduringtheyearindicatedandtobepaidinMarchofthefollowingyear.6 PensionvaluereflectsthecompensatorycomponentsoftheRegisteredPlanandtheSupplementalPlan.7 Ms.ManescommencedemploymentwithENMAXinApril2012;compensationisreflectiveoftheamountearnedduringtheyear.8 Mr.RuigrokactedasInterimPresidentandCEOfromFebruary2011toMarch2012.AmountsshownforMr.RuigrokreflectearningsasInterimPresidentandCEO;anyamountsearnedasaDirectorarereflectedintheBoardofDirectorsdisclosuretables.Mr.RuigrokisnoteligibletoparticipateintheAvPP,LTvPP,pensionplan(registeredandsupplemental),orflexiblebenefitsprogram,anddidnotreceivecompany-paidcriticalillnessinsurancecoverage.

9 Mr.McMastercommencedemploymentwithENMAXinSeptember2010;compensationisreflectiveoftheamountearnedduringtheyear.

DEtailED compEnsation DisclosurE

20

LTvPPOPPORTUNITyGRANTSTABLEIn2012,ENMAXchangeditsLongTermVariablePayPlanProgram.Priorto2012,LTVPPOpportunityGrantsweretime

based,notperformancebased,andvestedoverathreeyearperiodwithaportionbeingpaidouteachyear.Beginningin2012,LTVPPOpportunityGrantsaremadeattarget(100%)withtheentireamountvestingattheendoftheprospective3-yearperiod.Underthenewplan,actualpayoutamountsarebaseduponperformanceagainstpre-determinedKPIsandcanrangefrom0%to200%ofthetargetopportunity.Inordertotransitiontothenewplan,SpecialTransitionOpportunityGrantsweremadein2012(forpayoutin2013and2014)aswellasthefirst3-yearperformancebasedLTVPOpportunityGrantwhichvestsin2015.ThetablebelowsummarizesLTVPPOpportunityGrantsoverthelastthreeyears.LTVPOpportunityGrantamountslistedin2012arebrokenoutintotheirrespectiveperformanceperiods.

namE yEar LTvPPOPPORTUNITy/GRANT (FUTUREPAyMENT)

min tarGEt max

GiannaManes 2012Grant1

2012year2TransitionOpportunityGrant2


$0

$0

$0

$550,000

$300,000

$150,000

$1,100,000

$600,000

$300,000

DavidHalford 2012Grant1



20114

20104

$0

$0

$0

$400,000

$300,000

$200,000

$400,000

$550,000

$800,000

$600,000

$400,000

DavidRehn 2012Grant1



20114

20104

$0

$0

$0

$300,000

$225,000

$150,000

$240,000

$400,000

$600,000

$450,000

$300,000

RobertHemstock 2012Grant1



20114

20104

$0

$0

$0

$320,000

$240,000

$160,000

$320,000

$600,000

$640,000

$480,000

$320,000

DaleMcMaster 2012Grant1



20114

20104

$0

$0

$0

$300,000

$225,000

$150,000

$260,000

$0

$600,000

$450,000

$300,000

1. FirstfullLTvPgrantunderthenewplan(2012-2014performanceperiod,paidin2015)2.year1TransitionOpportunity(2012performanceperiod,paidin2013)3.year2TransitionOpportunity(2012-2013performanceperiod,paidin2014)4.2010and2011OpportunityGrantswereunderaformer,nonperformancebased,plan


PENSIONPLANTABLES

ENMAXPENSIONPLAN–DEFINEDCONTRIBUTIONPLANThetablebelowpresentsthebenefitsaccumulatedundertheDCprovision.Theactualbenefitpayableuponretirement

orterminationwillbethevalueoftheemployee’sDCaccountatthetimeoftransfer.

namE accumulatED valuE at start oF yEar

compEnsatory chanGE1

accumulatED valuE at EnD oF yEar

GiannaManes $0 $15,880 $27,182

DavidHalford $68,006 $15,880 $102,005

DavidRehn $90,219 $17,014 $115,073

RobertHemstock2 $97,991 $11,789 $123,549

DaleMcMaster $34,278 $17,014 $62,246

1 CompensatorychangeincludescontributionsmadebyENMAXontheNEO’sbehalf.2 AsMr.HemstockparticipatesintheDBprovisionofENMAX’sSupplementalRetirementPlan,histotalcontributiontotheDCprovisionoftheRegisteredPlancannotexceed$17,684in2012.

DEFINEDCONTRIBUTIONSUPPLEMENTALRETIREMENTPLAN(DC-SRP)ThetablebelowpresentsthebenefitsaccumulatedundertheDC-SRP.Theactualbenefitpayableuponretirementor

terminationwillbethevaluewithintheemployee’snotionalDCaccountatthetimeoftransfer.

namE accumulatED valuE at start oF yEar1


accumulatED valuE at EnD oF yEar

GiannaManes $0 $28,120 $28,120

DavidHalford $63,459 $32,008 $98,930

DavidRehn $163,677 $44,106 $217,973

DaleMcMaster $22,693 $34,636 $58,071

1 Differsfromtheprioryearaccumulatedvalueasthisvaluereflectsnotionalcontributionsmadeinearly2012inrespectof2011.

DEFINEDBENEFITSUPPLEMENTALRETIREMENTPLAN(DB-SRP)ThetablebelowpresentstheprojectedannualretirementbenefitspayablefromtheDB-SRPatyearendandupon

normalretirement.Thetablealsoincludesthetotalaccruedbenefitobligationalongwiththechangetotheobligationin2012.

namE NUMBEROFyEars oF crEDitED

sErvicE

ANNUALBENEFITS PAyABLE

opEninG prEsEnt valuE

oF accruED BENEFIT

OBLIGATION3


non-compEnsatory

CHANGE5

closinG prEsEnt valuE

oF accruED BENEFIT

OBLIGATION3

AtyearEnd1 AtAge652

RobertHemstock 6.8384 $39,200 $128,300 $361,000 $74,000 $8,000 $443,000

1 PensionearnedtoDecember31,2012payableatnormalretirementage(i.e.,thelaterofage55and85points,butnotlaterthanage65)basedonbestaveragepensionableearningsandserviceintheDB-SRP.2 Amountspayableonretirementatage65,assumingthatservicecontinuestoage65andthebestaveragepensionableearningsremainunchangedfromDecember31,2012.3 DeterminedusingthemethodsandassumptionsconsistentwiththoseinthenotesonpensionbenefitsinENMAX’sfinancialstatements.4 Includestheservicecostfortheyearandtheimpactontheaccruedbenefitobligationofthedifferencebetweenactualandexpectedpensionableearningsfor2012.5 Includesallotherchangesintheaccruedbenefitobligationnotincludedwithinthecompensatorychangesuchasinterestontheaccruedbenefitobligationand2012servicecostsandtheimpactofchangesinassumptionsincludingthediscountrate.

22

EmploymEnt aGrEEmEnts anD tErmination provisionsMs.ManesandMr.McMasterhaveemploymentagreementswithENMAX;employmentoftheotherNEOsiscovered

byemploymentofferlettersandannualTerms&ConditionsofVariablePayPlans.Severanceintheeventofterminationwithoutcauseorconstructivedismissalisoutlinedintheagreements.

namE tErmination without causEGiannaManes Salary:ifemployedlessthan3years:15months’basesalary+20%ofthatsuminlieuofemployment

benefitsandpensionbenefit;ifemployedmorethan3years:15months’basesalary+2months’basesalaryperfullorpartialyearofserviceinexcessof3years,toamaximumof24months’basesalary+20%ofthatsuminlieuofemploymentbenefitsandpensionbenefits

AvPP:targetAvPPpro-ratedtothedateoftermination

LTvPP:ifterminationispriortotheendoftheperformanceperiod,entitlementstopayoutwillbeforfeited;ifterminationfollowstheendoftheperformanceperiod,payoutswillbemadeiftheywouldhavebeenpayableduringthenoticeperiod

DavidHalford Salary:12months’basesalary

AvPP:targetAvPPpro-ratedtothedateoftermination

LTvPP:ifterminationispriortotheendoftheperformanceperiod,entitlementstopayoutwillbeforfeited;ifterminationfollowstheendoftheperformanceperiod,payoutswillbemadeiftheywouldhavebeenpayableduringthenoticeperiod

RobertHemstock Salary:12months’basesalary

AvPP:targetAvPPpro-ratedforthenumberofmonthsintheperformanceperiod

LTvPP:anypaymentoflong-termvariablepayawardsthatwouldotherwisebepayableinthe12monthsfollowingthedateoftermination

DaleMcMaster Salary:ifemployedlessthan3years:12months’basesalary+20%ofbasesalaryinlieuofemploymentbenefitsandpensionbenefit;ifemployedmorethan3years:12months’basesalary+2months’basesalaryperfullorpartialyearofserviceinexcessof3years,toamaximumof24months’basesalary+20%ofbasesalaryinlieuofemploymentbenefitsandpensionbenefits

AvPP:targetAvPPpro-ratedforthenumberofmonthsintheperformanceperiod

LTvPP:paymentsthatotherwisewouldhavebeenpayableuntilallLTvPPamountshavebeenpaid


AdditionalamountstowhichtheNEOswouldbeentitleduponvariousterminationscenariosareoutlinedbelow,asperplandocumentsorotheragreements.

rEtirEmEnt rEsiGnation tErmination with causE

tErmination without causE

tErmination FollowinG a chanGE oF control

Severance (perEmploymentAgreementofOfferLetter)

n/a n/a n/a Peremploymentagreement/offerletter

Forfeited

avpp (perPlanTerms&Conditions)

Proratedtothedateofterminationatactualperformance,subjecttocertainage,service,andnoticeconditions

Forfeited Forfeited Proratedtodateofterminationattargetperformance

Forfeited

ltvpp (perPlanTerms&Conditions)

AtthediscretionoftheBoardofDirectors

Forfeited Forfeited Forfeitedifterminationispriortotheendoftheperformanceperiod;paidoutifterminationfollowstheendoftheperformanceperiodandiswithinthenoticeperiod

Payoutofallunvestedopportunitiesbasedonperformancetothemostrecentcompletedquarter

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