ENMAX

ENMAX Corporation

Type	Wholly owned subsidiary of The City of Calgary
Industry	Utilities
Founded	Calgary, Alberta, Canada, 1905
Headquarters	Calgary, Alberta, Canada
Key people	Gianna Manes, CEO
Revenue	3.36 billion CAD (2013)
Net income	352.5 million CAD (2013)
Website	www.enmax.com

ENMAX Corporation (ENMAX) is a vertically integrated utility that generates and distributes electricity, natural gas, renewable energy and value-added services to customers in Alberta, Canada.

Overview

ENMAX, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of The City of Calgary.

According to their 2013 annual report, in 2013, ENMAX generated net earnings of $352.5 million and paid a dividend to The City of Calgary in the amount of $67.5 million (ENMAX 2013:8).^{[Enmax 1]} ENMAX’s core operations include electricity generation, transmission and distribution and the sale of electricity natural gas and renewable energy products to residential, commercial and institutional customers in Alberta.

History

In 1904, The City of Calgary built its own electric plant when its contract with a private supplier ended.^[1] The City of Calgary Electric System (later to become ENMAX Corporation) began operating on December 2, 1905.^[2] In 1996, City Council approved a proposal to make The City of Calgary Electric System a wholly owned subsidiary commencing on January 1, 1998. This subsidiary was called "ENMAX Corporation"; an affiliated retailer, "ENMAX Energy", was incorporated on January 1, 1998. Then on January 1, 2001, ENMAX Energy entered the restructured, deregulated electric marketplace in Alberta.^{[Enmax 2]}

ENMAX Power regulated and non-regulated operations

ENMAX Power Corporation (EPC), the Transmission and Distribution services business line, is made up of regulated and non-regulated operations. This entity is responsible for the operation and maintenance of the City of Calgary’s distribution system and a portion of the transmission network, ensuring ongoing reliability of the electricity supply to Calgarians.(ENMAX 2011:20).^[3]

ENMAX Power’s regulated operations include the provision of electricity transmission, distribution and management services for the regulated rate option to customers in the Calgary area. Covering 1,089 square kilometres in Calgary and surrounding areas, ENMAX Power’s transmission system consists of approximately 300 km of transmission wires and 7,600 km of distribution lines in Calgary and surrounding areas, with 37 substations powering residences and businesses within Calgary city limits.(ENMAX 2011:3).^[3]

In 2011, ENMAX Power worked on several projects such as the Downtown Cable Replacement Project, North Calgary Area Transmission Project and the South Calgary Reinforcement Project to meet the increasing need for electricity spurred by Calgary’s rapid growth.(ENMAX 2011:26).^[3]

ENMAX Energy Corporation

ENMAX Energy Corporation (EEC) is the generation and energy retail services arm of ENMAX that offers electricity and natural gas products and services to customers. ENMAX Energy’s electricity is supplied through a combination of long-term contracts, namely power purchase agreements (PPAs), ownership of generation facilities and through purchases from the Alberta electricity market. Natural gas is supplied by purchases in Alberta's natural gas market. Current operating facilities include the Crossfield Energy Centre, Calgary Energy Centre and the Downtown District Energy Centre. ENMAX Energy’s owned generation also includes 100 per cent ownership of the 80 MW Taber wind farm and 63 MW Kettles Hill wind farm, and a 50 per cent interest in the 75 MW McBride Lake wind farm, all located in southern Alberta. The company continues to receive significant supply from their power purchase agreements (PPAs) with the Keephills and Battle River coal-fired facilities.(ENMAX 2011:19).^[3]

ENMAX Energy claims to apply fresh approaches to producing energy by locating natural gas-fired power generation facilities close to where electricity is required.(ENMAX 2011:21).^[3] The company is in the initial building phase of the Shepard Energy Centre, an 800 megawatt (MW) combined-cycle facility, and has received regulatory approval for the Bonnybrook Energy Centre, a 165 MW cogeneration facility.(ENMAX 2011:19).^[3]

Additional ENMAX subsidiaries

ENMAX Energy Corporation not only works within the Wholesale Energy and Generation business lines, but also provides energy products to Alberta customers. ENMAX Energy provides the EasyMax option for residential and small business customers. EasyMax is an electricity and gas energy plan for residential and small business customers providing competitive rate options with no penalty for cancellation. Additionally, specialized billing and data management solutions to industrial customers, primarily in the oil and gas sector, are offered through the ENMAX subsidiary, ENMAX Commercial Services Inc. (formerly Valeo Power Corporation).

ENMAX Power Services Corporation (EPSC), a subsidiary of ENMAX Corporation, provides engineering, procurement, construction and maintenance services for overhead, underground, and light rail transit (LRT) utility infrastructure, roadway lighting and signal and communication systems. EPSC is not regulated by the Alberta Utilities Commission.

ENMAX Encompass Inc., a subsidiary of ENMAX Corporation, provides billing and customer care services to residential and small commercial customers. ENMAX Encompass is also contracted to perform customer service, water meter reading and billing services to The City of Calgary and other municipalities across the province.

ENMAX Envision Inc., a subsidiary of ENMAX Corporation, provides commercial high-speed data and internet services primarily in Calgary. ENMAX Envision grew its customer base by 23 per cent and its revenue by 12 per cent in 2011.(ENMAX 2011:).^[3]

ENMAX sold its Envision subsidiary to Shaw Communications Inc. in April 2013 for $225 Million.^[4]

District Energy Centre

The Calgary District Energy Centre began operations in March 2010, capable of providing heat for up to 10 million square feet of buildings. The facility incorporates high efficiency boilers fueled by natural gas. District Energy is more efficient, has fewer emissions and is more cost-effective than conventional heating systems. Customers are connected to the facility through an underground thermal distribution system, which occupies significantly less space than a traditional heating system.^{[Enmax 3]}

Shepard Energy Centre

ENMAX is planning a new gas-fired plant which they expect to bring online in 2015. The Shepard Energy Centre is expected to be the largest and one of the most efficient gas plants in Alberta. It will also emit less other emissions such as carbon monoxide (CO), sulphur dioxide (SO2) and nitrogen dioxide (NO2)(ENMAX 2011:21).^[3]

Price of electricity fluctuates widely in Calgary

By April 2014 it was announced that electricity prices for home owners and industry in Calgary will spike nearly 40 per cent from "seven cents per kilowatt-hour in April likely to 10.6 cents in May. According to the Calgary Herald in Calgary the price of electricity is based on a "wildly fluctuating monthly price." Edmonton customers already pay 50 percent less in access fees than Calgary consumers because in Edmonton, the price of electricity is a flat rate based on consumption. As well "the local access fee charged to Enmax customers on behalf of the city will also increase."^[5]

The Regulated Rate Option (RRO)

The RRO is the default option if households and small businesses in Calgary do not choose an energy plan with a retail supplier.^[6] Prior to 2006 the price of electricity with the RRO would fluctuate quarterly or yearly. In July 2006 the Province of Alberta introduced new provincial regulations that meant that the Regulated Rate Option (RRO) for Calgary would fluctuate monthly.^[6]

"Prices change with the energy market, depending on changing weather, seasonal consumption demands and fuel costs such as natural gas prices. A new price for the RRO will be announced each month as these variations are incorporated in the price."

—Newswire 2007

Price of electricity in Calgary^[6]

June 2006	5.59 cents per kWh
July 2006	7.55 cents per kWh
August 2006	7.79 cents per kWh
September 2006	7.79 cents per kWh
October 2006	8.88 per kWh
November 2006	8.43 cents per kWh
December 2006	8.96 cents per kWh
January 2007	9.32 cents per kWh
February 2007	8.97 cents per kWh

Price of electricity in Calgary residential^[7]

November 2014	6.3208 ¢/kWh[7]
December 2014	7.2982 ¢/kWh[8]

Bonnybrook Energy Centre

The Bonnybrook Energy Centre is a planned natural gas-fired cogeneration facility that will be built in Calgary’s southeast industrial zone. Once built, Bonnybrook will generate 165 MW of electricity, which is approximately half of downtown Calgary’s energy requirements (ENMAX 2011:24).^[3] This facility will reduce the amount of fresh water used by reusing industrial wastewater from the nearby Canada malting site and will play an integral role in heating office buildings in downtown Calgary. Bonnybrook will emit less than half of the carbon dioxide associated with conventional coal-fired facilities and will enhance the reliability of the region’s power supply (ENMAX 2011:21).^[3]

Generate Choice

In 2011, ENMAX Energy launched its Generate Choice, a program which offers Albertans home-based renewable energy choices such as solar power and wind generation (ENMAX 2011:7).^[3] Response to the program has been poor: by August 2011, only 3,100 people even expressed interest in having a solar photo-voltaic (PV) system installed, and of those, only 172 agreed to have one installed.

In June 2012, Brian Keating, one of Calgary’s best known naturalists and an official spokesperson for Generate Choice, became the 100th Calgary homeowner to join in the program. “Through a lease program, the panels generate a portion of a home’s energy needs. A set of six panels is a 1.3 kilowatt-hour [sic?] photovoltaic system that will produce between 1,000 and 1,400 kWh per year. The average home in Calgary uses 625 kWh per month,” says Colin Dumais, technology specialist with ENMAX”.^[9]

Financial performance

ENMAX is a wholly owned subsidiary of The City of Calgary. Over the last 11 years, ENMAX has returned approximately $600 million to The City of Calgary. In 2011, over $550 million was invested back into Calgary’s electricity infrastructure to maintain reliability and support future growth. Revenues increased from $2.4 billion in 2010 to $3.1 billion in 2011. In 2011, the company generated net earnings of $184.6 million and paid a dividend in the amount of $56 million to its Shareholder, The City of Calgary (ENMAX 2011:8).^[3]

Public involvement

As part of its community outreach, ENMAX sponsors Pond Hockey and Rinklighter programs. Pond hockey gives children in communities around Alberta the chance to meet and skate with local hockey celebrities. The Rinklighter program provides energy rebates for communities who operate an outdoor icerink.^{[Enmax 4]}

In 2011, Enmax employees collectively donated over $31,000 to victims of the destructive tsunami in Japan, $280,000 was raised in the annual ENMAX United Way Campaign, and $30,000 was raised to support scholarships in honour of their fallen co-worker, Nathan Haase (ENMAX 2011:45).^[3]

For the fifth consecutive year, ENMAX was named one of Alberta’s Top 50 employers by Mediacorp^[10] and was also named one of Corporate Knight’s Best 50 Corporate Citizens in Canada by Corporate Knights business magazine for the fourth year in a row.^[11] Additionally, ENMAX’s call centre, ENMAX Encompass, earned five SQM Customer Satisfaction Awards for 2011 (ENMAX 2011:35).^[3]

The organization runs the ENMAX School Safety Program which offers materials and classroom sessions to help grade five students learn about being safe around electricity.^{[Enmax 5]} ENMAX is also a member of various municipal and provincial safety focused organizations.

Controversy

In 2011, the CEO of ENMAX, Gary Holden, resigned after controversial handling of travel expenses that violated the company's ethical guidelines.^[12]

See also

• List of Canadian electric utilities
• ENMAX Centrium

ENMAX publications cited

ENMAX-2013-Annual-Review

References

External links

• Energy Rates in Alberta
• ENMAX Company Website