To Own or Not to Own - Richard Ivey School of Business

CONF E R E N C E O R G A N I Z E R S Council for Clean & Reliable Electricity
The Council is a federally incorporated non-profit organization that was formed to provide a platform for open public dialogue and a
solutions-oriented approach to the challenges of the energy sector. Representatives from universities, public and private sector business
leaders, and strategic planning professionals have collaborated to broaden the public debate on energy issues. The Council has organized
conferences on distributed generation, biomass, coal and nuclear, as well as on public sector governance in the electricity sector. The
Council continues to enjoy providing these forums in partnership with the Waterloo Institute for Sustainable Energy (WISE), University of
Waterloo and the Ivey Energy Policy and Management Centre, University of Western Ontario.
To Own or Not to Own
Ownership and Governance Issues for Municipally-Owned Electricity Distribution Utilities
February 27, 2014
Ivey Energy Policy and Management Centre,
University of Western Ontario
Council for
Hilton Suites
Conference Centre
Markham, Ontario
Clean & Reliable Electricity
transforming the way we think about power
The Ivey Energy Policy and Management Centre is the centre of expertise at the Ivey Business School focused on national energy business
issues and public policies. It conducts and disseminates first class research on energy policy; and promotes informed debate on public
policy in the sector through supporting conferences and workshops that bring together industry, government, academia and other stakeholders in a neutral forum. The Centre draws on leading edge research by Ivey faculty as well as by faculty within Western University.
Council for
Clean & Reliable Electricity
Council for Clean & Reliable Electricity Members
10:30 am Break
8:15 am Registration & Continental Breakfast
Markham Ballroom Lobby
10:45 am Panel Two: Deciding Whether to Own, Merge or Sell
Roy Mould
Ian Mondrow
Jatin Nathwani
Paul Newall
Karen Prentice
Laura Rees
George Todd
Ron Stewart
Robert Warren
Glen Wright, Chair, Council for Clean & Reliable Electricity
Policy Context and Issues
David McFadden, Chair, International and Partner, Gowlings
9:30 am Panel One: Governance of Municipal Electric Utilities
In partnership with:
Robert Warren, Partner, WeirFoulds LLP
Dan Ferguson, Partner, WeirFoulds LLP
Guy Holburn, Professor, Ivey Business School
Glen Wright, Chair, Council for Clean & Reliable Electricity
We appreciate the sponsorship from:
Moderator: Jan Carr, Board Member, Council for Clean & Reliable Electricity
Vinay Sharma, CEO, London Hydro Inc.
Pankaj Sardana, CFO, Guelph Hydro Electric Systems Inc.
John McNeil, BDR, NorthAmerica Inc.
9:00 am Markham Ballroom
transforming the way we think about power
Glen Wright, Chair
Linda Angove
Jan Carr
Sean Conway
Murray Elston
Guy Holburn
Les Horswill
Allan Kupcis
David McFadden
• Legal, fiduciary, and regulatory obligations of the officers and directors of LDCs to the municipality, LDC and ratepayers
• Best practices in utility governance
• Commercial, financial and stakeholder considerations of alternative LDC municipal ownership options
12:00 pmLunch
12:45 pm Panel Three: Practical Perspectives on Governance and Ownership Issues
Mayor Rob Burton, Town of Oakville
Glen King, CFO, FortisOntario Inc.
Dennis Nolan, EVP Corporate Services and Secretary, PowerStream Inc.
• Balancing commercial, political and regulatory pressures in municipal LDC ownership, strategy and operations
2:00 pm Closing Remarks
Council for Clean & Reliable Electricity | 221A McIntyre Drive, Kitchener, ON N2R 1G1 |
Rob Burton
Rob Burton has served as the Mayor of the Town
of Oakville since 2006. During his time as Mayor,
several groundbreaking initiatives that protect Halton
and Oakville’s ability to control the built and natural
environment and the health and safety of the community
have been implemented. These include the Oakville
and Halton Natural Heritage System, the Private Tree
Protection By-law, the Town Energy Management Plan,
the Health Protection Air Quality By-law, and the new
official plans Livable Oakville and Sustainable Halton.
Mayor Burton co-founded and co-chairs the
Municipal Leaders for the Greenbelt. Environmental
Defense Canada calls him the greenest mayor in
Canada. His 1971 Masters Degree thesis at Columbia
University statistically linked air pollution to illness and
Mayor Burton also serves on the boards of Halton
Children’s Aid Society, Halton Community Housing
Corporation, Halton Healthcare Services, Halton
Regional Police Services (as the Chair), Oakville Hydro
Corporation, and Tree Canada. He avidly supports sports,
arts and culture groups and charities.
Prior to running for public office, Mayor Burton was a
businessman, director and producer in journalism, film
and television. He is best known for starting YTV.
Jan Carr
Jan Carr was the Chief Executive Officer of the Ontario
Power Authority from the time of its founding in January
2005 until September 2008. Prior to that, he was Vice
Chair of the Ontario Energy Board.
Dr. Carr has 42 years of experience in the electricity
sector as a professional engineer, holding senior
positions in the design and planning of electricity
transmission and distribution systems. He has worked
on projects in many parts of the world, including Middle
East, Asia, Africa, Central America and the Caribbean.
He has been a consultant to utilities, governments and
other stakeholders on the financial, business, strategic
and policy aspects of the electric power industry.
He is a member of the boards of the Alberta Electric
System Operator (AESO) and Guelph Hydro. He is
also an advisor to Gowlings, providing business advice
to the firm’s international law practice as well as to
the executive and business unit leaders of consulting
engineer Hatch Ltd. He formerly served on the Board of
Directors of TransAlta Power, a publicly traded generation
company; Legend Power Systems, a publicly traded
manufacturer of energy conservation equipment; and,
Macquarie Canadian Infrastructure Management, a
privately held infrastructure investment fund. He was a
member of the Advisory Committee on Competition in
Ontario’s Electricity System (the Macdonald Committee)
and Chairman of the Electricity Task Force of the Toronto
Board of Trade. He was a publicly elected Commissioner
and Chairman of Niagara-on-the-Lake Hydro and a
board member and regional Chair of the Municipal
Electric Association (today’s Electricity Distributors
In 2007 he was awarded a medal for Management
by the Ontario Professional Engineers. He received an
honourary degree from the University of Waterloo in
2010 and was inducted as a Fellow into the Canadian
Academy of Engineering in 2012. In 2013, the
Association of Power Producers of Ontario awarded him
its Hedley Palmer Award.
Dan Ferguson
Dan Ferguson, a Partner at WeirFoulds LLP, brings a
wide range and depth of experience to a commercial/
infrastructure projects practice that involves financing,
M&A, corporate reorganization and governance advice
for numerous clients of all types, as well as noted
expertise in meeting the needs of both the public and
private sectors in public infrastructure projects and
public/private collaborations. Dan often provides advice
and issues opinions to board members and senior
officers of municipally owned business corporations on
governance issues and director and officer rights and
obligations related to complex projects and transactions
Dan is co-chair of the firm’s infrastructure and
public projects practice and has written and presented
extensively in the area of public infrastructure and
public/private collaborations.
Dan has worked on the structuring and financing
of many public/private partnerships. He has in depth
expertise on appropriate risk allocation and project
structuring and documentation in the design, build,
operation and financing of such projects, and has
advised both the private and public sectors in many
successful and high profile projects of this type.
Guy Holburn
Guy Holburn is the Suncor Chair in Energy Policy and an
Associate Professor of Business, Economics and Public
Policy at the Ivey Business School, University of Western
Ontario. He is also the founder and Director of the Ivey
Energy Policy and Management Centre.
Dr. Holburn joined Ivey in 2001 and teaches both
degree and executive development programs. He holds
a Ph.D. and M.A. in Economics from the University of
California, Berkeley, and a B.A. Hons. in Economics from
Cambridge University. Prior to his academic career, he
worked as a management consultant with Bain and
Company in London, England, and was a founding
member of the Bain South Africa office.
Dr. Holburn’s area of expertise is in the intersection
of business strategy and public policy. Most of his
research is applied to strategy and policy issues in
the energy and utilities sector. He is currently leading
a multi-year research program on energy regulation in
Canada. He has been awarded a number of research
grants, including those from the Canada Foundation
for Innovation, Hydro One, the Olin Foundation, the
University of California Energy Institute, California Public
Utilities Commission, Ontario Centres of Excellence and
the Social Sciences and Humanities Research Council
of Canada.
Dr. Holburn is a Board Member of the Council for
Clean & Reliable Electricity, and a member of the
Advisory Roundtable for the Chair of the Ontario Energy
Glen King
Glen King is Vice President, Finance and Chief
Financial Officer of FortisOntario Inc. (a wholly-owned
subsidiary of Fortis Inc., the largest investor-owned
utility in Canada). Mr. King oversees the financial,
customer service and regulatory staff/departments
of an electric utility holding company and its whollyowned subsidiaries: Canadian Niagara Power, Cornwall
Electric and Algoma Power. These utilities, located in the
Niagara, Eastern and Northern Ontario regions, serve
approximately 65,000 customers and meet a combined
peak load of 271 MW.
FortisOntario also holds a 10% interest in Westario
Power Inc., Rideau St. Lawrence Holdings Inc. and
Grimsby Power Inc., three regional electric distribution
companies serving a combined customer base of over
38,000. In addition, he manages the financial and
regulatory functions of the regulated transmission
assets in the Niagara and Cornwall areas, including
an international interconnection between New York
State and Fort Erie, Ontario, and a 5 MW natural gas
cogeneration plant.
Mr. King is a Chartered Professional Accountant (CPA,
CA) and holds a Bachelor of Commerce (Co-operative)
degree from Memorial University of Newfoundland. Prior
to being appointed to his present position in 2005,
Glen was Director of Finance and Treasurer, Director of
Finance of Newfoundland Power, and Vice President,
Finance of Fortis Trust Corporation. Prior to joining the
Fortis group of companies, he spent seven years with
Deloitte & Touche Chartered Accountants, serving in
various management positions.
Mr. King serves on the Board of Directors of Canadian
Niagara Power, Cornwall Electric, Algoma Power and
Westario Power. He also is a Director of a non-profit
organization, The United Way of Niagara Falls and
Greater Fort Erie.
David McFadden
David McFadden is a Partner at Gowlings and Chair
of the firm’s International Practice. His clients include
corporations, municipalities and utilities involved in the
generation, distribution, marketing, transmission and
financing of energy and in the development, renewal
and operation of infrastructure such as toll highways
and tunnels, light rail systems and health care facilities.
He has a B.A. from the University of Toronto, an LL.B.
degree from Osgoode Law School and was called to the
Bar in Ontario in 1972. In 2011 he was awarded an
honorary doctorate from York University.
He is currently Co-Chair of Collus PowerStream
Corporation, a board member of the Energy Council
of Canada and a member of the Council for Clean &
Reliable Electricity. He chairs the Board of Directors of
407 International Inc. which operates and manages
Highway 407. Previously, he served for six years as
Board Chair of the Detroit-Canada Tunnel Corporation.
David serves as Chair of the Advisory Boards
of LPF Infrastructure Fund, OE Infrastructure Fund,
TCPP Infrastructure Fund and Fengate Greenfield
Infrastructure Fund, which have invested in hospitals,
court houses, detention facilities and power generation.
He has been a member of the board of directors of
the Canadian Council for Public- Private Partnerships
since 2001 and was the Chair of the Ontario Centres
of Excellence from 2004-2010 as well as a member of
the Ontario Research and Innovation Council from 2006
to 2008.
David McFadden has played a key role in a number
of initiatives relating to the power industry. He served
as Chair of the Stakeholders Alliance for Electricity
Competition and Customer Choice, a broad coalition of
business and energy-related organizations including the
Association of Major Power Consumers, Association of
Exporters and Manufacturers, the Canadian Federation
of Independent Business, the Electricity Distributors
Association of Ontario, the Ontario Energy Association
and the Association of Power Producers of Ontario.
He was appointed by the Government of Canada
to the Joint Canada-U.S. Task Force investigating the
August 2003 power blackout that hit Ontario and the
northeastern United States. David was also appointed
to the Ontario Government’s Electricity Conservation
and Supply Task Force whose January 2004 report
provided the strategy that was subsequently adopted
to meet the future energy needs of the province. At the
request of the Government of Jamaica, he also co-led
an investigation into a July 15th, 2006 blackout of the
entire island.
David is a member of the IESO Smart Grid Forum
whose February 2009 recommendations are embodied
in the Green Energy Act. In April 2012, David was
appointed by the Minister of Energy to serve on
the Ontario Distribution Sector Review Panel, which
has been mandated to review Ontario’s Electricity
Distribution Sector and to make recommendations on
restructuring the sector to achieve key economic and
environmental outcomes. The Panel submitted its report
to the Minister of Energy in December 2012
John McNeil
John McNeil, President of BDR, is a lawyer by training
and an independent investment banker by profession.
He has over 30 years experience in the areas of
business and enterprise valuations, financing and
capital markets activities, and mergers and acquisitions
(M&A). In his consulting practice, John has advised
Ontario municipalities and utility clients considering
mergers, acquisitions and divestitures, joint ventures,
and the formation of service affiliates. In addition to
his expertise in the business and operational issues
associated with combining operations, John has
expertise concerning the regulatory issues that arise
from mergers and business combinations.
Dennis Nolan
Robert Warren
Dennis Nolan has been the Executive Vice-President
& Secretary of PowerStream Holdings Inc. since
PowerStream’s formation in 2004. He is a member of
the Executive Management Team at PowerStream and is
responsible for the company’s Legal, Human Resources &
Organizational Effectiveness, Health, Safety & Environment,
Supply Chain Services, Information Technology, Corporate
Communications and Internal Audit Departments and acts
as the Corporation’s Secretary.
Dennis is a member of the Southlake Regional
Healthcare Foundation’s Governance Committee.
Dennis was called to the Ontario Bar in 1982. Prior
to June 2004, he was a member of the Executive
Management Team at Hydro Vaughan Distribution Inc.
Dennis has over 30 years of experience as in-house
counsel, and in senior management roles in the
manufacturing, waste management and the electricity
Robert Warren, a partner of WeirFoulds LLP, holds
degrees from the University of Montreal, the University
of Oxford, which he attended on a Rhodes Scholarship,
and the University of Toronto.
He is senior counsel in the area of regulatory
advocacy, most recently with a focus on the regulation
of the energy sector. He has appeared as counsel in
many proceedings before the Ontario Energy Board.
He has been counsel in proceedings involving the two
major natural gas utilities, the former Ontario Hydro,
Hydro One Networks Inc., Ontario Power Generation Inc.,
and the larger electric distribution utilities.
Mr. Warren’s practice includes advising clients on
governance issues in the energy sector.
Mr. Warren has written papers on various aspects
of the regulation of the energy sector, and has made
presentations to several annual conferences of the
Canadian Association of Members of Public Utility
Mr. Warren is recognized as a leading practitioner
in electricity, oil and gas in the Canadian Legal Lexpert
Directory, and was named 2013 Lawyer of the Year in
energy regulatory law by Best Lawyers in Canada.
Pankaj Sardana
Pankaj Sardana has over 30 years of experience
in the energy sector with the past 16 years at the
executive level. Mr. Sardana gained his energy sector
experience with The Ontario Ministry of Energy, The
Consumers’ Gas Company, Ontario Hydro, the IESO,
Toronto Hydro Corporation, Ontario Power Generation,
and Guelph Hydro. Mr. Sardana has in-depth knowledge
of finance, regulatory affairs, treasury operations,
wholesale and distribution rate structures and rate
design, load forecasting, and conservation and demand
management. Mr. Sardana has a Master’s degree in
Economics from the University of Waterloo, and is a
Chartered Financial Analyst.
Vinay Sharma
Vinay Sharma has been the CEO of London Hydro since
August 1, 2009. Previously, he was Vice President of
Strategic Planning & Customer Services at London
Hydro, which he joined on August 24, 1998. London
Hydro is an electrical utility with a turnover of $300M
annually, serving approximately 150,000 electricity
customers and about 101,000 water customers.
Prior to joining London Hydro, Vinay worked with
Saskatchewan Power Corporation for seven years in
various capacities including Distribution Planning,
Power Procurement, and Marketing. Previously, Vinay
has worked as a consulting engineer with Cambrian
(now AMEC) and as an Assistant Professor in Electrical
Engineering at the University of Saskatchewan.
Vinay Sharma has a Bachelor of Science in Electrical
Engineering and is a Professional Engineer in the
provinces of Ontario, Alberta and Saskatchewan. He has
also obtained a M.Sc. and Ph.D. from the University of
Saskatchewan and an MBA from the University of Regina.
He has been a Chartered Director since 2008.
Currently he is Vice Chair of the Municipal Electric
Association Reciprocal Insurance Exchange (MEARIE)
Board. He is a member of the Board of Directors for
MEARIE Management Inc., for Electricity Distributors
Association and for the King’s University College.
Glen Wright
Glen Wright is the Chair of LeanCor LLC and LeanCor
Canada Inc. (2008). Founded in 2005, LeanCor offers a
unique combination of training and education, hands-on
consulting and outsourced logistics services.
Glen was appointed to the Commission for
Environmental Cooperation, created as part of NAFTA
and served as the Chair of the Joint Public Advisory
Committee (JPAC) in 2010. JPAC is composed of 15
citizens, five from each country including Canada, the
United States and Mexico.
He was appointed the Chair of Hydro One Inc. by
Premier Ernie Eves in June 2002, with a mandate to
reorganize its governance structure and management
teams. From 1996 until his appointment at Hydro
One Inc., Mr. Wright served as the Chair of Ontario’s
Workplace Safety and Insurance Board (formerly the
Workers’ Compensation Board), where he led a major
restructuring that resulted in significant improvements in
the WSIB’s financial position and customer service.
Mr. Wright has extensive experience in public policy
and government, having been a key political advisor to
a number of National and Provincial leaders. He also
served as a Member and Co-Chair of the International
Democratic Union, an organization representing political
parties from 32 countries.
Glen’s private sector career has focused primarily
on the insurance and actuary fields where he founded
and operated one of the top ten pension and benefit
companies in Canada. In addition, he has served on the
board of a wide range of corporations, charitable and
not-for-profit organizations, among these, the Canadian
Broadcasting Corporation, the Council for Canadian
Unity and the Waterloo North Hydro Holding Corporation.