For Immediate Release
2001-03-01
For further information contact:
Jim Keech, Utilities Kingston, 546-1181 ext. 2217
UTILITIES KINGSTON RECEIVES APPROVAL FOR NAME CHANGE
The restructuring of the utility was in response to Provincial legislation (Bill 35 - The Electricity Competition Act).
Under the new legislation Municipalities cannot directly or indirectly operate an electric utility. This legislation also stipulates that employees within the corporation that
holds the electrical assets can only do work related to the electric utility.
To meet the intent of the legislation and to continue with the City's strategy of Utility integration/convergence two corporations were formed, one to incorporate the electric
utility assets, and one for the employees which work on all 5 utilities.
The two corporations are: 1425445 Ontario Limited (formerly known as "Services Co") will operate as UTILITIES KINGSTON.
1425446 Ontario Limited (formerly known as "Wires Co") is now KINGSTON ELECTRICITY DISTRIBUTION LIMITED. What's the difference?
KINGSTON ELECTRICITY DISTRIBUTION LIMITED
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City of Kingston continues to own the assets of the Gas, Water and Wastewater Utility directly
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Holds the assets of the Electric Utility
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City Council owns all shares of "Kingston Electricity Distribution Limited" and controls the assets through a shareholder agreement
UTILITIES KINGSTON
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Holds the assets of the Fibre-Optic Utility and the equipment, tools and vehicles utilized by the employees
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It is where the employees of the utility reside
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It is an affiliate of Kingston Electricity Distribution Limited.
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A Shareholder's Agreement exists between Kingston Electricity Distribution Limited and Utilities Kingston
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A Management Agreement exists between Utilities Kingston and Kingston Electricity Distribution Ltd. and another between Utilities Kingston and the City of Kingston for management,
operation and maintenance of each of the water, wastewater and gas businesses.
A Services Agreement exists between the City of Kingston and Utilities Kingston for purchased central services such as Finance, Customer Service, Fleet and Information Technology.
Utilities Kingston will report through its Parent Company, Kingston Electricity Distribution Limited to Council for electric and fibre issues.
Reporting is direct to council from Utilities Kingston for Gas, Water and Wastewater.
It is anticipated this will be for budget approval and approval of the yearly mandate at the start of the year, followed by quarterly reports, then an annual shareholder's meeting
at year end.
Additional reports will be brought forward as required or requested by Council.
From a public perspective all correspondence and business will be facilitated through Utilities Kingston.
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