EQUS 2019 Sustainability Report

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2018

SUSTAINABILITY REPORT

INTRODUCTION: Sustainability Report

In 2013 Central Alberta REA and South Alta REA merged forming Canada’s largest member-owned utility, EQUS, now serving over 12,000 members in 26 Alberta municipal districts and counties.

Much has changed in the five years since EQUS began and as our co-operative has evolved and grown so has our vision for the future. This sustainability report is the first comprehensive report on the overall state of our financial, environmental, and community performance and sustainability.

This report assesses more than just EQUS’ sustainability; the information collected here also allows us to understand how we are meeting our goals and maintaining our vision and values.

As a values-based organization, EQUS’ defined values of quality, accountability, knowledge, and commuity inform our strategic planning and vision to be the electrical provider of choice in rural Alberta.

This assessment was completed by Anielski Management Inc. following the Global Reporting Initiative (GRI) standards for utility companies. The GRI is an international standard that defines the principles and indicators that measure and assess environmental, economic, and social well-being. This information will help EQUS to understand the current value and health of our organization and to ensure the greatest return-on-investment from all assets in the future.

WELCOME From the EQUS Board of Directors As the governing board of Canada’s largest member-owned utility we believe that the sustainability of our co-operative is paramount. In the 1940s, rural Albertans came together to build a distribution system that would power their homes, businesses, and farms and, though that system has grown significantly, the goal remains the same today - to provide high quality, reliable electricity distribution to rural Alberta. For over 70 years, EQUS members have had the choice to own their distribution system and to participate in the governance of that system. We want to ensure that EQUS evolves and moves forward into the future as the electricity provider of choice for rural Alberta.

It is our hope that this report provides a snapshot of what has been accomplished in the five years since EQUS was formed, as well as a glimpse into the strategic priorities that will provide direction into the future.

Glen Fox, EQUS Board Chair

Contents Powered by Values ������������������������������������������������������������������������8 Work Safe Home Safe ������������������������������������������������������������������11 Powering Our Members �������������������������������������������������������������� 12 Powering Our People ����������������������������������������������������������������� 15 Powering Our Planet ������������������������������������������������������������������� 17 Powering Our Communities ������������������������������������������������������ 18 Future Report: Automated Metering Infrastructure ������������� 21 Future Report: EQUS’ Corporate Office Expansion �������������� 22 Conclusion: Historic Past, Bright Future �������������������������������� 25 Sustainability According to Employees ��������������������������������� 26

A MESSAGE From EQUS CEO, Patricia Bourne EQUS is a member-owned co-operative, as such it is imperative that we provide the highest level of service possible while remaining responsible financially, environmentally and socially. We know that we have a duty to operate sustainably and that means building and maintaining relationships and trust with our employees, our members, and our rural communities. It also means ensuring that we are not only mindful and aware of how we impact the environment, but that we are actively working to minimize that impact by limiting our waste and powering our facilities with renewable and efficient energy.

We are proud to be able to say that EQUS is an industry leader in developing sustainably built infrastructure, in making micro-generation accessible to our members, offering pooled renewable energy credits, and in implementing innovative technology such as our new Automated Metering Infrastructure, the first ultra-rural smart grid in Canada. EQUS plays a unique and valuable role in Alberta’s electricity distribution market, providing high-quality service to rural Alberta at competitive rates while also providing a choice in a market that is otherwise dominated by an investor-owned monopoly. Our rates serve as a benchmark across the industry and we are confident in our ability to continue to adapt to changes in the energy market.

In undertaking this sustainability assessment we have gained an in-depth understanding of the many practices and relationships that influence EQUS’ organizational wellbeing. The results of this assessment will inform decisions regarding future strategic planning and initiatives and help us to ensure that our co-op is operating in a way that is sustainable, resilient and that allows us to continue giving back to the communities we serve.

EQUS’ wellbeing was assessed based on an integrated asset model that analyzes the health of human, social, environmental, built, and capital assets. Going beyond finances, this model takes into account the value of relationships between EQUS and members, the happiness of employees and their ability to contribute to their communities as individuals, the contribution that EQUS makes to the communities it serves, the intellectual capital in the ideas and innovation developed, and the trust that members place in the organization.

By working to have a more sustainable co-op, we are also working towards a more sustainable rural Alberta. We are pleased to be able to provide a consolidated summary of key performance and wellness indicators that impact our member-owners and the rural Alberta communities we serve.

Patricia Bourne, EQUS CEO

POWERED

by Values EQUS is deeply committed to being a values-driven organization. Our values of quality, knowledge, community, and accountability are embedded in our culture and our conversations. These values guide our behaviour and decisions, both in our day-to-day operations and in the strategic priorities we set to further EQUS’ mission and vision.

All EQUS employees participate in ongoing training to explore what it means to be a values-driven organization and to find ways they can live the EQUS values in their roles.

Our leadership team has integrated a values approach into their leadership practice, and we have a team of Cultural Ambassadors – representatives from all departments and EQUS locations – who are furthering meaningful values conversations and goals with their own teams.

As a values-based organization, EQUS exists to enrich the lives of our members by delivering more than power, and we ensure we do that by walking our talk. You can count on us for quality, knowledge, community, and accountability.

VALUES

ACCOUNTABILITY

We own our actions and deliver on our promises, holding ourselves and each other to our commitments. We ask questions, challenge ideas, learn from our mistakes, and celebrate our successes.

COMMUNITY We support both internal and external communities through cooperation, engagement, service, and stewardship.

KNOWLEDGE We seek and share our wisdom and expertise to develop both individually and collectively through continuous improvement, learning, and innovation.

QUALITY We provide an excellent standard of work, service, and interaction through our committment to safety, integrity, and efficiency.

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2018 SUSTAINABILITY REPORT

EQUS’ values form the core of who we are: defining the attitude we bring to work every day and enabling us to accomplish our goals in today’s ever-changing environment

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Craig, South Area Powerline Technician (PLT) 9

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EQUS maintains a comprehensive safety program that meets or exceeds the standards set by Partnerships in Injury Reduction

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Dave and Ben, South Area PLTs 10

WORK SAFE

2018 SUSTAINABILITY REPORT

Home Safe At EQUS, the safety of our staff and the public is a priority. EQUS’ corporate health and safety policy clearly states that the personal health and safety of each EQUS employee is of primary importance. This safety message is confirmed by EQUS leadership at all levels to ensure that staff understand and exercise their rights and responsibilities around safety at all times.

EQUS maintains a comprehensive safety program that meets or exceeds the standards set by Partnerships in Injury Reduction and qualifies for the Certificate of Recognition program. EQUS’ Safety program is developed and delivered by our Safety Leader, a Canadian Registered Safety Professional, and each and every staff member is responsible for their own personal safety as well as the safety of others at the worksite.

EQUS is a member of the Alberta Electric Utility Safety Association (AEUSA), regularly attending meetings, sharing safety information, and reviewing safety concerns that affect all utilities in the province in order to establish and maintain industry standard practices.

Safety at every worksite is prioritized with a detailed participative daily hazard assessment and discussion involving EQUS employees and any contractors on site.

Any time the plan changes or an unexpected situation arises the hazard assessment is reviewed and updated as required.

EQUS’ contractors are pre-approved prior to performing any work to ensure that they too have an acceptable safety program that meets both EQUS and OHS requirements.

Contractors also receive a sub-contractor orientation tailored to the level of their contract responsibilities before performing any work on behalf of EQUS. Based on recognized industry tracking, EQUS’ system reliability is over 99.9 per cent. Staff are certified industry professionals who are committed to operating a safe, reliable electrical distribution service 24 hours a day, seven days a week. The construction and maintenance of EQUS’ electrical distribution system meets or exceeds all Alberta Electrical Utility Code requirements.

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POWERING Our Members As a co-operative, we don’t work for investors and we don’t generate profits for international shareholders. At EQUS, our members are our owners, and with no need to generate profits the focus of our operation is instead on ensuring our members are satisfied with the services we are providing. We are committed to delivering a high level of personalized service to our over 12,000 members and to involving them in regular events such as Member Input Sessions and the Annual General Meetings that allow members to review the financials, elect directors to the board, and provide feedback.

We are Alberta’s rural power experts because we work with our members to determine how we can best meet their needs with innovative energy solutions and competitive rates. Whether it’s constructing a new service, upgrading a transformer, providing financing options, or helping our members become micro-generators, we want to help our members achieve their goals.

By powering EQUS members, we are helping to power rural communities. When we invest in our members we are investing in their communities. When those rural residents, businesses, industry, and farms are doing well, their communities become more resilient and more sustainable and so does EQUS’ membership. Operating under the co-op business model ensures that member satisfaction is our priority.

$ 8.7 MILLION

Amount saved by EQUS Members on their electricity distribution services in 2018

97% 92%

Member satisfaction rating

of Members say that EQUS employees are helpful and easy to reach

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2018 SUSTAINABILITY REPORT

96% of EQUS members would recommend EQUS to a friend, colleague, or family member

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Sandy Point Resort, EQUS Member 13

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94% of employees agree: team members work together effectively to achieve results

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Central Area Pancake Breakfast 14

POWERING

2018 SUSTAINABILITY REPORT

Our People EQUS has over 100 employees working in offices in Claresholm, Innisfail, Medicine Hat, and Onoway. We are committed to ensuring our employees are healthy and safe and we work to build and promote an engaged and values-driven culture. Many of our employees live in the EQUS Service Area so we know that we can give back to our communities and build resilience by investing in training, safety, and wellness initiatives that our employees can take home to their families and their neighbours.

EQUS knows that employee engagement comes from actively listening to staff, involving them in innovative ideas and decision-making, and empowering them to lead with their strengths so their knowledge and expertise can benefit our members.

Each year, EQUS employees participate in a Staff Development Day and a Staff Appreciation Day. These events bring employess together as one team to contribute to discussions about EQUS’ values and vision and to participate in team-building activities. These events are also an opportunity to celebrate and acknowledge the accomplishments and service of our employees including employment anniversaries, learning and training, and rewarding employees who serve their communities.

100% EQUS employee satisfaction rating

95% 15

of EQUS employees understand how their job contributes to the success of EQUS

92%

of employees that feel EQUS cares about their overall wellbeing

of employees feel their direct supervisor supports them in balancing work and personal life

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EQUS diverted 43% of its annual waste from landfills in 2017

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EQUS Innisfail Micro-gen Installation 16

POWERING

2018 SUSTAINABILITY REPORT

Our Planet EQUS supports our members who are interested in becoming micro-generators. From planning to purchasing and installation, we support our members through every stage of their micro-generation project. With a preferred supplier program for solar, financing, incentives, and programs to pool renewable energy credits we can help our members understand their needs and options and get their system connected.

We are committed to reducing our environmental impact by using renewable energy to power our facilities and working to minimize waste. In 2017, EQUS recycled over three tonnes of operational waste such as wire and metal bins in addition to the recycling of office materials such as paper and cardboard waste.

KILOWATTS MEGAWATTS SAVED

INSTALLED EQUS’ Innisfail Office is equipped with a rooftop solar PV unit, generating almost 20% of our annual consumption.

Reduction in energy consumption by 22,590kW due to rooftop solar.

MEMBERS

PARTICIPATING Number of EQUS members who are micro-generators as of 2018.

TONNES OFFSET C02 emissions offset by rooftop solar.

70

30

22

17

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POWERING Our Communities At EQUS our members are our owners and nurturing a strong relationship and high level of trust between our employees, our members, and the communities we serve is a priority for EQUS. We pride ourselves on supporting our members and their communities whenever possible.

Operation Round-Up raises money by rounding up EQUS members’ monthly distribution tariffs to the nearest dollar. These funds are pooled and distributed by a committee to non-profit organizations and initiatives that support rural youth and seniors in the EQUS Service Area. A portion of funds collected through Operation Round Up are also reserved for providing financial support to EQUS members who may find themselves facing temporary economic hardship.

The EQUS Community Connection is an employee-run charity committee that raises money through events such as staff lunches, silent auctions, and our annual EQUS Charity Golf tournament. For 2019 the funds raised will be dedicated to supporting rural mental health initiatives in EQUS’ Service Area.

$190,000+

$171,695

Amount raised by EQUS staff through various annual fundraisers

Amount raised as of September 2018 through Operation Round-Up

$107,000+

Total funds distributed in 2018 to the communities we serve

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2018 SUSTAINABILITY REPORT

EQUS Members, through Operation Round-Up, have supported over 50 charitable groups

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Boys and Girls Club Field Trip 19

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We are committed to supporting and developing resilience and independence in rural Alberta

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Traditional Meter Reading 20

FUTURE REPORT:

2018 SUSTAINABILITY REPORT

Automated Metering Infrastructure EQUS is committed to providing dependable electrical distribution services at competitive rates and investments in innovative technology such as Automated Metering Infrastructure (AMI) can help keep rates low over the long-term. AMI technology is an integrated system of smart meters, communication networks, and data management systems that enable two-way communication between members’ meters and EQUS. A successful pilot project took place in 2018 in select locations throughout EQUS’ Central Service Area that saw several meters and a small network function very well.

Improved Outage Times A direct connection to members meters means EQUS can better monitor our distribution network. If an outage occurs EQUS can proactively take steps to restore power, ensuring you can depend on the power you need for your rural lifestyle.

Your meter remotely connects with EQUS, eliminating the need for you to submit meter readings!

Smart Meter measures usage every 15 minutes

Increased Accuracy AMI technology allows EQUS to instantly and remotely receive accurate meter readings through a secure wireless network.

Elevated Service Our Member Service Administrators will have access to more data regarding your electrical consumption, allowing us to better serve you.

Reduced Inventory Costs Only one type of meter is required with AMI technology, meaning EQUS can reduce their total inventory needed to serve all members.

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AMI technology can often be found in municipal centers where a cluster of meters creates a strong signal; however EQUS will be the first utility in Alberta and Canada to adapt and deploy this technology with ultra-rural meters that are separated by significant distances.

FUTURE REPORT: EQUS’ Corporate Office Expansion In the spring of 2019 construction began on EQUS’ first corporate headquarters. The 19,000 square foot building will be adjacent to Highway 2 on the north east side of Innisfail. Of the 70 EQUS staff who currently work in Innisfail, 35 will move over to the new building, creating more office space for staff and providing meeting rooms. The open concept building will celebrate EQUS’ past, present, and future by incorporating elements of each into the design.

Construction began in April, 2019, and the building is expected to be completed in the spring of 2020.

The building is being designed with a ‘Near Net Zero’ energy concept in mind. This innovative design will reduce dependency on the grid, and model the functionality of energy efficient and renewable generation technology. Solar panels with battery storage and a high-efficiency combined heat and power system will generate and store electricity for the office while using the heat created in the process to heat the building and the sidewalks in the winter. These systems will also power electric vehicle charging stations, similar to the ones installed at EQUS’ Medicine Hat Facility in 2018, which will be available to the public.

An intelligent building management system will integrate all these systems to maximize operating efficiencies to create a funtional and innovative near net zero system with minimal usage from the grid.

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2018 SUSTAINABILITY REPORT

EQUS’ new Corporate Office will celebrate the past, present, and future in the elements of its design

Site of EQUS’ Future Corporate Office 23

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Powering the future of rural Alberta with innovative energy solutions

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The Future of EQUS 24

CONCLUSION:

2018 SUSTAINABILITY REPORT

Historic Past, Bright Future A 2018 study released by the Alberta Association of Municipal Districts and Counties found that rural Alberta attracts 41% of capital investment in the province and produces 26% of the wealth, while only accounting for 18% of the total population.

At EQUS, we know the value of providing safe and reliable electricity to rural Alberta homes and businesses, and we take great pride in providing services that can help build resilience in the communities we serve.

Rural Electrification Associations have a rich history in Alberta and the pioneering spirit that built our co-operative has allowed it to become Canada’s largest memberowned utility. In the over 70 years that have passed since those first farmers raised the poles that were the beginning of EQUS, the rural landscape has changed dramatically and so have the needs of those who work and live there.

As Alberta’s rural electrcity experts, EQUS continues to recognize, adapt to, and capitalize on changes in our industry, changes in regulations, and changes in the way our member-owners live, work, and consume electricity. EQUS is committed to working with members to provide innovative energy solutions that can enable the growth of rural business, agriculture, and industry, and also help ensure that rural communities are sustainable, supported, and resilient. In shaping the future of our cooperative we are also shaping the future of rural Alberta.

96% Percentage growth in EQUS Members since 2014

of employees would recommend EQUS as an employer of choice

9% over

Total number of rural Albertans powered by EQUS

25

30K

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SUSTAINABILITY According to Employees It’s important for us to be sustainable because we have to grow and move forward into the future, and adapt to stay ahead.

Employees who are trained and educated and encouraged to learn are adaptable and fluid. Any organization is only as good as the people who are a part of it. EQUS is a very positive work environment and that builds a good reputation in the community and helps employees do more outside of work.

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Environmental sustainability is important to me as what we are doing now to preserve the environment is the legacy I am passing on to my son.

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To me, operating sustainably means that we can provide our members with the quality electrical services they’ve always known and relied on while continuing to balance the need for growth and innovation within the industry.

- Liz, EQUS Business Development Representative

- Cynthia, EQUS Payroll and Benefits Specialist

EQUS’ Annual Staff Appreciation Day, Sylvan Lake 27

What do EQUS members have to say about being part of Canada’s largest member-owned utility?

My grandparents were EQUS members when they farmed this land and now, I’m a third generation EQUS member because I believe in the concept. With EQUS, I know that as a member, my voice matters.

- Brad Javorsky, EQUS North Area Member

One of our core values at Track On 2 is community and it was clear to us very early on that EQUS shares this value. We often see our local EQUS employee’s family out cleaning up the ditches in our rural neighbourhood. These small, often unacknowledged acts demonstrate EQUS’ commitment to rural communities and it’s why we’re proud to be members.

- Kurt and Kyla Belich, Track on 2

I’ve been an EQUS member for 38 years now, and I’ve been approached to switch my services many times over the years but I’ve never had to even consider it. I trust EQUS to be there when I need them, because they always have been.

- Kay Daines, EQUS Central Area Member

@poweredbyEQUS