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Mark Kraemer, Director of Westario and Lisa Milne, CEO, presented the company's annual summary to Saugeen Shores at its recent Council meeting. When the electricity market was deregulated in 1999 by the Provincial government, eight municipalities and Fortis Ontario jointly formed Westario Power Holdings Inc.(WPHI). Of the nine shareholders, Saugeen Shores is the largest holder with 24.9 per cent of the shares followed by Hanover with 15.09, Kincardine with 13.48, Brockton with 12.61, Fortis Ontario with 9.99, Minto with 9.28, North Huron with 7.71, South Bruce with 3.67 and Huron-Kinloss with 3.19 per cent. CEO Milne explained to Council that, since 2000, the company's assets have grown by over 60 per cent (60%) or $18.5 million, which has seen a return of almost five per cent (5%) annually. "The equity growth has also grown," said Milne. "In 2010, we had $25 million in assets, which is an increase of $11.4 million or 84.5 per cent (84.5%). Equity for Saugeen Shores in 2010 was $6.2 million, which is an increase of $2.8 million." Projected revenue for Saugeen Shores has also seen an increase. Last year, according to Milne, dividends paid were $99,000 and for 2010 were projected to be $196,000, with the total 2011 projected revenue to be just under $365,000 (including interest and dividends). In 2009, the provincial tax of 33 1/3 per cent on the sale of assets was eliminated as long as those assets are sold only to, or merged with, other municipal entities. Today, the company (Westario) is actively pursuing opportunities to merge with or acquire other utilities. Westario is expected to introduce 'time of use' pricing in December of this year (2011) and approximately 21,000 residential and small commercial 'smart meters' have already been deployed in the local region. "As a company, we are promoting conservation measures to encourage reduced usage", Milne added. The company will also be initiating an annual Utilities Communication Forum which will provide an opportunity for representatives of counties, municipalities, utilities and internet and cable service providers in Bruce, Grey Huron and Wellington counties to discuss joint projects and changes that could impact stakeholders. Deputy Mayor, Luke Charbonneau said that while Saugeen Shores has had "... a fantastic past with Westario that has generated income for the municipality - what is the future?" Milne said that the Utility is always cognizant of costs and the impact on customers. "Our rates have actually declined slightly over the past two years," she said. "We are definitely providing value for shareholders and continue to provide good dividends. If it makes sense to have acquisitions or mergers then we will continue with that course of action." Kraemer said that he is frustrated with the government's regulations that "...virtually prevent growth by the 80 Utilities in the Province. We may be deregulated but we are, in fact, living in a highly regulated environment ..." Hear more of Kraemer's views - go to video.
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Mark Kraemer Director of Westario Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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