EnWin’s Gold-Plated Salaries

Header-image-Maggio-2By Gabe Maggio

(WINDSOR, ON) – How much gold-plating is going on within EnWin?

In 2009 EnWin reported to the Ontario Energy Board that their annual administrative costs were $15.4 million. In 2010, that figure jumped to $17.2 million and again rose in 2011, this time to $19 million. And then it skyrocketed to $22.3 million in 2012.

In just four short years administrative costs at EnWin increased almost $7 million while they have been dealing with a shrinking customer base. That is over a 30% increase in administrative costs, not in operations.

To put this in perspective, let’s take a comparative look at London Hydro (LH) which has about 59,000 more customers than EnWin. Over the same period, London increased it administrative costs by only 8%; rising from $15.2 million to $16.5 million.

While London Hydro serves a general population of over 366,000, in comparison EnWin serves just 215,000. London Hydro has a customer base of 136,000 connections, while EnWin’s is just over 77,000. The City of London, which includes a partial rural landscape, has a more challenging distribution system as they must run many more kilometers of line to service their customers. Consequently LH deals with more of an electrical “loss factor”.  However, LH has managed to bury more than 50% of its lines in comparison to EnWin where just 40% of lines are underground.

Windsor, has no rural customers allowing its wires to be more efficiently strung within a denser population, and buried in cases. This, in itself, should make EnWin more efficient and profitable, and better able to pass the savings onto its customers.

But is this the case? You be the judge.

Despite the challenges that London faces, their “distribution revenue per customer” is less than EnWin’s by more than 6%. That means LH customers are paying less per year.

Moreover, with 59,000 more customers, LH has 1,700 more kilometers of power lines and invoices about $500 million more kilowatt hours than EnWin. It would stand to reason that London Hydro would draw more revenue than EnWin, and it does.

They earn $117 million more than EnWin even while LH’s customer’s conserve more energy.

However, London Hydro seemingly outperforms EnWin in every category, financial and operational, except when it comes to administrative costs. Where London Hydro services a larger area, more customers, and deals with more challenges, London Hydro’s administrators in 2012 count for an expense of just $16.5 million while EnWin’s brass take home over $22.3 million.

In a recent 2013 report entitled Productivity and Benchmarking Research in Support of Incentive Rate Setting in Ontario, and in a final submission to the Ontario Energy Board just this past January 2014, EnWin Utilities Ltd was found to be at the bottom of the pack of 73 distributers with regards to the econometric evaluations of the cost performance of Ontario electricity distribution companies.

EnWin ranked 66 out of 73, as matter of fact.

Interestingly, Mayor Francis states that we are paying for the “best of the best” to manage EnWin.

I beg to differ.

Gabe Maggio is a Candidate for Ward 3 in the 2014 Windsor Municipal Election.

4 Comments on "EnWin’s Gold-Plated Salaries"

  1. knipdyolf | 25 April 2014 at 20:11 |

    I have asked this question before & will ask it again. At what point does the incompetent Provincial government either send an auditor to Windsor or inform our mayor that we have to have one because we will NEVER have one as long as he is mayor.. The last thing he wants is anybody questioning anything he does.. Is it any wonder that with our industrial taxes & utility costs nobody in their right mind is going to consider Windsor to move their business. Those are items #1 & #2 when considering where to locate or where to pass over.

  2. Gabe another great article, we need an audit done on Enwin by the Ontario Auditor General. These people at Enwin are sticking it to us and our mayor and city council are aware of this and are doing nothing to stop it. We also can’t forget about our wonderful Liberal government that has done nothing but raise our taxes HST, ECO tax, and hydro rates. There is no reason to wonder why companies are not setting up shop in Windsor, they can’t afford the high costs of doing business here.

  3. I remember when the Windsor Utilities Commission was non – profit. Harris and his Conservatives changed it to a partial privatization. The “supposed“ knock against non – profit was that it was government subsidies that kept it afloat. We now subsidize the corporations involved. And now we have a mess. The politicians are using it as a revenue stream. For themselves, their friends, their Parties, their glory projects, etc. The corporations involved are running very profitable secret organizations (in some cities……….like ours!!!) that are being protected and profited by our very politicians who are suppose to be transparent but refuse to do so. Ridiculous and insane.

  4. blindsight | 24 April 2014 at 12:43 |

    And for the taxpayer it continues as May 1st 2014 brings the next increase to go with the newly implemented TOU –

    “As part of the Liberal long-term energy plan, consumers will face rates of 7.5 cents kW/h, a 0.3 cents increase (current 7.2 ), during off-peak hours from 7 p.m. to 7 a.m.

    Mid-peak usage, from 7a.m. to 11 a.m. and 5-7 p.m., will also rise 0.3 cents to 11.2 cents kW/h(current 10.9)

    However, the biggest increase of 0.6 cents during peak hours between 11 a.m. to 5 p.m. raises hydro costs to 13.5 cents a kW/h.(current 12.9) “

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