Rural Power Magazine

Rural Alberta’s Electricity Magazine

ELECTRICITY 101 UNDERSTAND YOUR ELECTRICITY BILL

HELLO, NEIGHBOUR MEET YOUR LOCAL ELECTRICITY PROVIDER

FUTURE FOCUSED INNOVATIVE SOLUTIONS FOR RURAL PROBLEMS

LEVEL THE PLAYING FIELD FAIR COMPETITION EQUALS SAVINGS FOR RURAL ALBERTANS

KNOWLEDGE

We seek and share our wisdom and expertise to develop both individually and collectively At EQUS, you’re not customer #355,786, you’re a member.

Each member has a dedicated Member Service Administrator to deliver personalized service.

Our goal is to enrich the lives of our members in rural Alberta homes, businesses, and communities.

WELCOME TO EQUS We are proud to be rural Alberta’s electricity experts, and we are proud to be able to share that expertise. As a member-owned co-operative and a values-based organization, we hold ourselves accountable to deliver safe and reliable electricity to our members and to support the rural communities we operate in. Part of that accountability is ensuring that as an organization, we are the experts in the services we provide.

We are adapting and innovating our way through the changes we are experiencing in what our members want and expect from us, and in the changes that are coming to us through the provincial electricity market and regulations. We are an industry leader in developing sustainably built infrastructure, making micro-generation accessible to our members, and in implementing innovative technology such as our new Automated Metering Infrastructure.

We have a duty to our members to ensure that we are operating sustainably and efficiently. In ensuring our sustainability we are also helping to ensure that our members continue to be able to have a competitive choice in their rural electricity distribution and that they are still able to own their distribution system. We value the feedback of our members and their contributions to our operations through the Board of Directors and our many annual member events. I am pleased that we are able to share some of the expertise that we have built as an organization and that we have acquired through our skilled and innovative employees and members.

Patricia Bourne, CEO A Message from the CEO | 3

CONTENTS

Members are free to purchase electricity services from a retailer of their choice. For a list of retailers, visit www.ucahelps.alberta.ca or call 310.4822 (toll free in Alberta).

ABOUT THIS PUBLICATION The content presented in this publication is for general informational purposes only, and EQUS assumes no responsibility or liability for any errors or omissions in the content of this publication. Assumptions, opinions, or commentary made in this publication are subject to change at any time for any reason without notice.

4 | Table of Contents

Contents Values-Based Organization ��������������������������������������������������������������������������������������������������������������������������� 6 History of EQUS �������������������������������������������������������������������������������������������������������������������������������������������� 8 Electricity 101 ��������������������������������������������������������������������������������������������������������������������������������������������� 10 Operations Team ���������������������������������������������������������������������������������������������������������������������������������������� 12 Safe & Reliable Electricity ��������������������������������������������������������������������������������������������������������������������������� 14 North Area Profile �������������������������������������������������������������������������������������������������������������������������������������� 17 Central Area Profile ������������������������������������������������������������������������������������������������������������������������������������ 18 South Area Profile �������������������������������������������������������������������������������������������������������������������������������������� 19 EQUS Member Profiles ������������������������������������������������������������������������������������������������������������������������������� 20 General Counsel, Brian Hennings ���������������������������������������������������������������������������������������������������������������� 24 Business Services Team ������������������������������������������������������������������������������������������������������������������������������ 26 Expert Opinion ������������������������������������������������������������������������������������������������������������������������������������������� 29 MyEQUS Member App �������������������������������������������������������������������������������������������������������������������������������� 30 Micro-Generation ��������������������������������������������������������������������������������������������������������������������������������������� 31 Automated Metering Infrastructure ������������������������������������������������������������������������������������������������������������ 32 Community Initiatives �������������������������������������������������������������������������������������������������������������������������������� 35

FROM THE COVER

You turn on a switch and electricity flows, but do you know how it gets to you?

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See how EQUS navigates the unique characteristics of its vast Service Area

EQUS continues the fight against the electricity distribution duopoly in Alberta

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Setting the benchmark for rural innovation in North America

Table of Contents | 5

Powered

BY VALUES

Since 2018, EQUS has been working to become a values-based organization with an organizational culture driven by four core values.

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Values-Based Organization

Written by EQUS CEO, Patricia Bourne

and Quality. I am proud of the hard work our staff invested in this process and that they fully understood and embraced the importance of our values as an organization.

AT EQUS, WE RECOGNIZE THAT OUR MOST VALUABLE ASSET IS OUR EMPLOYEES

I like to think that we are much wiser now than when we started our values journey.

W

hat does it mean to be a valuesdriven organization and why is it so important for EQUS? At EQUS we recognize that our most valuable asset is our employees. We want our employees to be engaged, to be satisfied with their jobs, to feel they are being treated fairly, and to feel that they are being heard and acknowledged which ultimately leads to increased performance and creates a sense of ownership in the success of the organization.

In 2018, we began this journey into becoming a values-based organization with the goal of living in our values, instead of just talking about them. We have seen changes because of the shift in the thinking of leadership, and we are embracing the change we are seeing in the organization as a whole.

Throughout the process the entire EQUS team discussed and reviewed our core values and assessed if our current values were the desired values that our employees believed EQUS needed to live to be successful.

We started with five core values, and this year changed out two of those values to come up with our current four core values: Accountability, Community, Knowledge,

“Wisdom derives from reflection on experience” This quote by Wendelin Kupers, who has written extensively about wisdom, is such a simple statement that resonates deeply with me as I contemplate what it means to shift to a values-driven organization.

Experience and reflection are lifelong learnings that go hand-in-hand with wisdom. It isn’t just enough to talk the talk when it comes to creating a cultural shift.

The leaders must start the process by walking the walk and living into the values.

The benefits of this cultural shift reach beyond EQUS employees. EQUS members, current and future, also benefit from the work done by happy and engaged staff. Everything that we do at EQUS is done with our members in mind. We must provide value to our members, or there is no reason for us to exist. As we continue on our journey, we do so with the intention of continuous improvement and innovation to meet the needs of our members. We will continue to prioritize and elevate our ethics and integrity so that everyone including staff, members, future members, and other stakeholders look to us as a company that they want to do business with and one that they know cares about their needs.

In my opinion, EQUS has an amazing and dedicated team of individuals who care not just about today and how they serve our members now, but also about how we can continue to provide support and deliver the best possible service in the future. I believe wholeheartedly that our values, and the strong foundation and guidance they provide, will see us through to deliver quality service at reasonable prices for many years to come.

We have committed leaders at EQUS who understand the importance of treating all employees fairly and setting high standards that hold everyone, including themselves, accountable for their actions and their promises.

VALUES KNOWLEDGE QUALITY COMMUNITY ACCOUNTABILITY Values-Based Organization | 7

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8 | History of EQUS

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Historic Past

BRIGHT FUTURE I

n the 1940s, the Alberta government asked the InvestorOwned Utilities (IOUs) to bring power to rural Alberta. The IOUs declined, citing cost as a factor. With this reality, Alberta farmers decided to step up and formed co-operatives, also known as Rural Electrification Associations (REAs), to bring electricity to rural Alberta.

REA co-operatives come in all sizes and the members own the electrical distribution system they helped build. The REA Board of Directors, elected from the rural membership, regulates REA business. Because REAs operate at cost they provide a benchmark for electricity rates and tariffs. Unlike IOUs, they do not generate profits for shareholders, they produce savings for members. As the rural landscape changed over the past 70 years, so did the REAs, enhancing their respective services for their member-owners.

On January 1, 2013, EQUS became official as a result of the merger of two of the province’s largest REAs: the Central Alberta REA and the South Alta REA. The Central Alberta REA originated from the amalgamation of fourteen smaller REAs, celebrating their 20th anniversary in 2012. The South Alta REA's growth was the result of the amalgamation of nine REAs, starting in 1997.

Today, EQUS is Canada’s largest member-owned utility with over 12,000 members throughout 26 rural Alberta municipal districts and counties. EQUS provides safe and reliable electricity distribution services that power commercial and industrial developments, oil and gas operations, telecommunications towers, recreational properties, farms, production facilities, residential acreages and more. The needs for electricity in rural Alberta are constantly evolving and as members innovate, advance, and modernize, their power must do the same.

EQUS’ member-owners are able to participate in the governance and strategic planning that guides their co-op. All members are eligible to seek election to the Board of Directors, and are invited to participate in annual Member Input Sessions, where strategic planning is reviewed and assessed. Members can also attend the Annual General Meetings to review financials and hear from the Board of Directors and CEO. For over 70 years, EQUS members have had the choice to share in the ownership of their distribution system and to participate in the strategic planning and governance of that system. This member ownership continues to drive and develop innovation, efficiency, and sustainability, ensuring that EQUS remains the electricity provider of choice in rural Alberta into the future.

History of EQUS | 9

Electricity

101

Everyone consumes electricity on a day-today basis, but do you know how electricity is actually produced, transported, and consumed?

10 | Electricity 101

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e all have the general understanding that electricity is created somewhere through various methods of generation, and then transmitted to our homes, businesses, factories, and anywhere else we consume power. For many Albertans, their main connection with electricity comes in the form of a monthly power bill. But do you ever wonder what all of those confusing line items are on that bill? What role do they play in bringing that electricity to you?

The electricity that turns on your lights goes through many steps between generation and consumption, often travelling significant distances and changing voltage multiple times to better facilitate that travel. It requires significant amounts of complex infrastructure and many people to generate and deliver the safe and reliable power that Albertans enjoy. Let’s explore how electricity works in Alberta!

After the electricity has been generated, Substations at each generator utilize ‘Step Up’ transformers to increase the voltage, which maximizes efficiency and reduces the amount of energy lost in transmission.

Transmission Once the voltage has been increased, the electricity travels long distances throughout the province via transmission lines. These are the very large, tower-like steel structures you will often see with multiple power lines attached.

If you’ve ever inspected your monthly

REAS OPERATE ON AN AT- COST BASIS TO PRODUCE SAVINGS FOR THEIR MEMBERS, WHILE IOUS OPERATE TO PRODUCE PROFIT FOR THEIR SHAREHOLDERS.

Generation Where does the electricity that ends at your fingertips begin? In Alberta, electricity is generated primarily from harvesting natural resources, such as coal and natural gas. Renewable energy sources are continuously growing, accounting for increasing portions of our electricity generation. Large-scale solar and wind farms are being developed regularly throughout the province.

We also have several hydro-electric generators in the province.

Generation

Transmission

power bills, you’ve likely noticed a specific line and charge for transmission. That charge covers the cost of building and maintaining this infrastructure.

After transmission, the electricity needs to be converted back to lower voltages, making it safe for consumer consumption.

Substations using “Step Down” transformers, reduce the voltage of the electricity, making it safe to travel the shorter distance distribution lines.

Substation

Distribution

Distribution While some lines are buried underground, overhead distribution lines are the most common proof of electricity, especially in rural Alberta. Distribution lines are the final path that your electricity travels before it is consumed at your home or elsewhere.

Unlike other provinces, some Albertans have a choice in who provides their electricity distribution. Outside of municipalities, those in the service areas of Rural Electrification Associations (REAs) can choose between the REA and the Investor-Owned Utility (IOU) operating the distribution system in their area.

While they provide the same service, REAs operate on an at-cost basis to produce savings for their members, while IOUs operate to produce profit for their shareholders. When REAs increase in size, they realize economies of scale that translate into cost-savings. On the other hand, when IOUs are able to purchase the assets of REAs, they finance this on the backs of their entire customer base, which generally leads to an increase in rates to all consumers.

Retail Your energy retailer is typically the most common association with electricity.

Your retailer is responsible for billing you each month, not only for the amount of electricity used, but also on behalf of the other steps of electricity consumption (transmission and distribution). The administration fees charged on your monthly bill cover the cost the retailer incurs to do this on your behalf.

Substation

Retail Electricity 101| 11

Operational

EXCELLENCE

Andy Metzger and his team have the task of building and maintaining EQUS’ electricity distribution network for rural Alberta.

Together, their expertise continues to push EQUS to the forefront for new industrial and commercial developments in rural Alberta.

12 | Operations Team

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QUS’ Operations team works to build and maintain the distribution system that powers rural Alberta. Centralized under the leadership of Andy Metzger, and operating out of EQUS’ Area Offices and Facilities, the team is responsible for managing the existing system, while ensuring the sustainability and growth of the system in the years to come. Andy’s vision for the future of EQUS is one guided by efficiency and innovation.

“EQUS has been very successful under the co-operative utility model, becoming the largest member-owned utility in the country, and to carry that model and that success into the future we need to ensure that we’re seeking out opportunities to innovate, keeping our system as efficient as possible, and growing our membership.”

The foundation of this plan lies in the quality and reliability of EQUS’ distribution system.

“Members depend on their electricity supply for their families and their livelihoods so we have to be as reliable as possible. We’ve implemented work practices and methods that are meeting, or exceeding industry standards, and we’re ensuring that our staff are equipped with the best tools and training for the job.”

It seems like a simple philosophy: use the best people and equipment to work using best practices. There’s a bit more behind it though.

“When we plan and design the system we have to make it as efficient as possible, to minimize costs to members, but we also have to ensure that it’s resilient and that we’re going to be capable of handling the future demands that we anticipate would be placed on that portion of the system.

We rely on the team in our Standards Department to consider all these factors in the engineering process. Because we are in the unique position of sharing an integrated distribution system with our

competitor, we also rely on the ability of our team to maintain good relationships and open communication when it comes to the planning and maintenance of our integrated system.”

The team works together to determine what members need from the system and how best to deliver it, incorporating project timelines and windows for work, as well as ensuring that sufficient resources are available in each of EQUS’ Area Offices to complete the work.

“Collaboration between our area teams is vital to ensuring that we work as productively and efficiently as possible and make the best possible use of all our available resources. While the offices are spread out between Onoway, Innisfail, Claresholm, and Medicine Hat, the teams work together as one EQUS. The work that each area does is unique, based on the needs of the members in that region.

We trust the teams in each office to be the experts in building relationships with current and new members, and using the knowledge they gain from those relationships to be able to make suggestions and provide really innovative solutions for meeting the needs of all of our members.”

The needs of the members drive the development of the system.

“Powering our members is a team effort based on EQUS’ value of Quality. That is the quality of the people, the equipment, the planning, the consultation, the maintenance, the innovation, and the solutions. Our goal is to continue to maintain the high standards that have brought us this far, while we continue to build the infrastructure necessary to deliver the electricity that powers the communities, businesses, and families of rural Alberta.”

As a co-op operating on an at-cost basis, continued growth is a key factor in longterm sustainability.

“When we’re able to bring on new members and new developments we’re able to grow our membership base which benefits all our members by further spreading out the cost of operating the system. This year, we were able to secure a big project with Red Deer County in the new Junction 42 Highway Rest Stop Area development which was a first for EQUS and I think we have more of that to look forward to.”

POWERING OUR MEMBERS IS A TEAM EFFORT BASED ON EQUS’ VALUE OF QUALITY Each EQUS Service Area has a dedicated Business Development Representative who works to develop relationships in their communities and to consult with prospective members, determining what their needs are and how EQUS would be able to best serve them.

“There is a lot of opportunity out there to grow. We know that we’re capable of meeting all kinds of needs and building all kinds of different services while providing competitive rates. We’re looking at all kinds of development, whether it’s new rural residential subdivisions, rural commercial developments, industrial, oil and gas sites, and we’re staying true to our roots with agriculture. There are lots of big family farms that we can provide really good rates for, and we’re seeing lots of innovative agricultural development with indoor growing facilities, which typically have a high demand for electricity.”

The future of rural Alberta is diverse and EQUS’ Operations Team is ready to adapt and innovate their way forward, transitioning the past 70 years of co-operative success into the next.

Operations Team | 13

ACCOUNTABILITY

We own our actions and deliver on our promises, holding ourselves and each other to our commitments The Employee Recommended Workplace Award recognizes excellence in achieving a healthy, engaged and productive workforce. It is the only award of its kind that is based entirely on feedback from employees.

EQUS is proud to be 1 of 75 companies across Canada to receive this distinguished award.

Safe & Reliable Electricity

Safe & Reliable

ELECTRICITY At EQUS, the safety of staff and the public is a priority. Building and maintaining a safe and reliable electricity distribution system is our goal and by succeeding in this we help ensure the safety of our rural communities, our employees and the public.

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’ system is designed and maintained to achieve optimum reliability. The construction and maintenance of EQUS’ electrical distribution

system meets and exceeds all Alberta Electrical Utility Code requirements. EQUS’ Standards Department works to ensure that system engineering is meeting current demand and identifying and addressing future demand growth in system planning.

EQUS conducts regular maintenance including annual pole change work throughout EQUS’ Service Area. Regular scheduled maintenance is also done to ensure that nearby trees are not interfering with power lines and are at a safe distance when storms or high winds occur. This preventative maintenance helps reduce unplanned outages and minimizes the hazards and risk for staff and residents.

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.

Safe & Reliable Electricity | 15

26 Counties

ONE EQUS

EQUS’ operations teams work in three distinct Service Areas throughout the province. While all of EQUS works together, each of these areas has their own unique operational challenges and opportunities and a dedicated team that works to become the experts of their area.

16 | EQUS Area Profiles

T

he EQUS North Area team is based out of Onoway. Shaun Doyle, Area Leader, oversees a team of 22 permanent employees as well as additional seasonal staff over the summer months. This team serves EQUS members in the area as well as providing construction and pole change services to members of the Duffield REA, and acting as the Distribution Services Operator for members of the Tomahawk REA. Working with members to develop solutions and build relationships is important to Shaun and his team.

“We always have a dedicated familiar face at the front desk so when members come in they are welcomed and we make sure they’re comfortable raising any concerns with us. When we’re working on a project with a new or existing member we start by understanding their unique needs, then we work within our team to figure out how we’re going to connect them and what their rates are going to be.”

NORTH Those relationships also extend into the community through members and staff.

“Many of our employees live within our Service Area so they’re involved in lots of different local events and groups like rural crime watch. We try to get involved in community events whenever there’s an opportunity. We sometimes bring our member events into the community as well. This past year we brought one of our annual member pancake breakfasts to Darwell School and we fed all the staff and students there and everybody loved it.”

For Area Leader Shaun Doyle, the unique geography of the region affects many aspects of daily operations.

“We have a lot of vegetation in this area.

There are lots of big trees and bushes which means a lot of work being done to keep that vegetation away from our lines and poles. Typically we hire seasonal staff to help with this, because it can be a lot of work to do in a short window of

time. We also have a lot of softer ground which means that even a bit of rain can make work challenging. Sometimes we have to get flexible with the scheduling and methods for our work to ensure that we’re maintaining the environmental integrity of the worksite and our members’ properties while we do that important preventative maintenance.”

While the landscape provides challenges it also provides opportunities.

“We have lots of lakes and trees which is great for recreational sites. There’s a lot of opportunity for growth for us in serving campgrounds and RV resorts.

We’re also seeing a lot of growth from cannabis producers since it became legal.

There is definitely increasing interest and development in micro-cultivation, so not the really big operations but a lot of smaller ‘craft’ type growers who have some really unique needs for their electricity services. We’re looking forward to being able to work with them to connect those services.”

North Area Profile | 17

CENTRAL

Prioritizing member needs is a team effort when it comes to connecting new services or changing existing services.

“Usually it starts by connecting with our Area Service Administrators or our Business Development Representative, which is where we determine what the current or prospective member is looking for. Then it gets handed over to our Estimators who would arrange an on-site visit, develop the plans, and provide a cost estimate. From there, we would schedule construction based on the member’s project timelines.”

E

QUS’ Central Area is home to almost half of EQUS’ over 12,000 members.

The Central Service Area stretches over diverse terrain from the foothills in the west, to the Highway 2 corridor, and further east into sprawling farmland.

The team works out of the Innisfail office under the leadership of Stu Silvernagle.

According to Stu, it’s the diversity in the needs of area members that keeps things exciting.

“We hear from people looking for all kinds of services, all sizes of services, and we have a great team that really works the process from start to finish to make sure we get the member exactly what they need.”

18 | Central Area Profile

It’s a process that has become more streamlined as the team has taken on some big new projects.

“Earlier this year we were successful in becoming the distribution provider for the Junction 42 rest stop development near Penhold. It’s a big project that involves a lot of work with the County and all the developers involved and we’re building a lot of great relationships through that. It’s going to be an excellent opportunity to build on our reputation and to showcase that our co-op electricity distribution is capable of powering anything in rural Alberta.”

The team is also working to continuously adapt to demands from agriculture and the oil and gas industry.

“We’ve been working on more oilfield related projects the past few years. We’re learning a lot about adapting as we go because those services require a lot of flexibility with scheduling and we have to be very specific with the sizing of the services. We know we can save all of our members money by properly sizing their services to ensure they’re not paying for more capacity than they need. We also work with a lot of our farming operations to properly size services and help bring costs down whenever possible. I find a lot of that comes from maintaining open lines of communication with our members.”

For Stu, the member events are a valuable way to connect.

“We host a lot of events for members each year. Some are more for fun, such as the Member Appreciation Barbecues and Family Fun Days which are an opportunity for us to invite our members out, and show our appreciation to them. Some events are more business oriented, like our Annual General Meetings and Member Input Sessions, where we are looking to have a conversation with members about our strategic planning.

The events are always a great opportunity to talk to the members and make those personal connections.”

One thing is certain – there is no shortage of future opportunity for the Central Area Team.

a lot of very well-established specialty farms. We do have some residential acreage services, and there is definitely some commercial development coming up, but the majority of the area we serve involves ranches and farms.”

Due to the geographic nature of the area, water is not always accessible but is a necessity for agricultural producers in the area.

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tretching South to the Montana border, EQUS’ South Service Area covers 76 townships and includes a vast amount of sparsely populated ranchlands. The South Area team is comprised of 20 employees including field and office staff. The team operates out of offices in both Claresholm and a new facility, opened in 2018, just outside of Medicine Hat. Working diligently together ensures members needs are met.

Team Leader, Trudi Alsgard says the focus of their work is largely agricultural.

“Our members grow a wide variety of crops including corn, sugar beets, potatoes, grain, and specialty crops including catnip and hemp. We are very farm-focused in this area and there are

“Irrigation plays a key role for our farmers and is a huge part of our operations. This area is very susceptible to drought, so to mitigate the risk to crops, many producers have to run costly and complex irrigation systems. We currently have over 500 irrigation services and we expect the demand for those services to continue to grow as our members expand their farming operations. In order to grow with our members, we need to make sure that they’re happy and engaged.”

For Trudi and her team, maintaining good relationships with the members is key.

“When members have a need for electrical services, I want them to know who to reach out to and to know that we’ll get the job done. For our members to know the people on our team here means a lot. I want our members and communities to know us and to recognize us as the provider of choice.”

SOUTH

According to Trudi, community involvement is a team effort.

“We try to have a presence at as many of the community functions and fundraisers as we can. The staff fundraise for many different charities including donating backpacks to schools and rural mental health initiatives. There are lots of community groups and initiatives that are doing really neat things and providing much needed services for residents.”

“Each year, we volunteer and support the A-T Walk For A Cure in Fort Macleod which is a really great fundraiser for a rare genetic disease that affects children.

Quonset Days in Seven Persons is another fundraiser we attend. It was started locally as a fundraiser for ALS, and over the years it has grown into a really great event that has raised over $400,000 and we’re really proud to be able to support that effort and to be a part of bringing people together for a good cause.”

“Our staff work and live in the communities we serve and providing knowledgeable and reliable service to members and the community is what brings the team together and builds quality relationships. Whenever we can support our members or team up with the community we’re happy to do that, and to do our part to help keep rural communities sustainable.”

South Area Profile

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Thinking

INSIDE THE BOX

Swiss Leaf Farms, operating in Westlock County, is an example of EQUS’ capabilities to overcome rural electricity challenges.

20 | EQUS Member Profiles

Photo Credit: Amara Dirks Photography

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ural Albertans are innovators, and as a member-owned co-operative EQUS is proud to be able to power some of the extraordinary innovation that occurs within our Service Area. When approached with unique requests the EQUS team gets to work developing innovative power solutions to support the exciting projects members are undertaking.

When EQUS members Dave and Alyssa Pfaeffli of Swiss Leaf Farms approached the Onoway team with their unique indoor agriculture plans they were looking forward to getting started by powering up their 9,500 sq. ft. warehouse which was to be full of fresh lettuce, micro-greens, and herbs year-round.

“When we first began setting up our cubic farming operation I knew that getting our electricity in was going to be a big job. I also knew that I had a choice of providers for our distribution services and when I reached out for a quote I heard back from EQUS right away. We set up a meeting to discuss what we needed and what would have to be done and we left that meeting with a plan and a price and we were ready to get to work. The whole process was seamless and very quick. It couldn’t have been easier and we’ve been very happy with the service we’ve had since.”

- Dave Pfaeffli Owner, Swiss Leaf Farms

EQUS Member Profiles | 21

“We’ve been with EQUS since they started in the area. You might say, we’ve grown with them. Over the past five years we’ve undergone major expansions to our business and having a reliable power provider has been critical to our success. We’ve enjoyed a great working relationship as well as a partnership in promoting and supporting EQUS and Aspen Crossing.

We’ve had the privilege of sharing our train excursions with the EQUS staff and partners for several events over the past few years. Currently we are undergoing another campground expansion, and it’s great knowing that EQUS is there to ensure we can continue to grow and that the necessary power source is available. After all, we are located in a rather small rural area, so it’s great that the service is available to us!”

- Jason Thornhill Owner/President - Aspen Crossing Ltd.

Aspen Crossing provides a unique and memorable experience for all ages with themed train rides including the popular Polar Express and the Train of Terror. Located between Calgary and Lethbridge in the hamlet of Mossleigh, guests can also dine, shop, camp, or try an escape room. EQUS is proud to be powering this innovative and exciting year-round destination.

22 | EQUS Member Profiles

Located on Highway 2 near Lacombe, The Track on 2 is the only independently-owned horse racing track in Canada. Locally-owned and operated, the facility features a large grandstand, a riding arena, and a number of stables, all powered by EQUS.

“When we were looking for an electricity provider we knew we had a choice, and choosing EQUS was an easy decision. Their installation costs and monthly rates were very competitive and their staff went the extra mile to ensure that we were satisfied. 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 & Kyla Belich Owners - The Track on 2

EQUS Member Profiles | 23

Levelling the

PLAYING FIELD

As the General Counsel for EQUS, Brian Hennings finds himself in the unique position of navigating the Integrated Operations Agreement that allows EQUS to compete openly within EQUS’ geographic service area, while also advocating for fairness within the market and resolving third party and member disputes.

24 | General Counsel, Brian Hennings

T

he 2016 Integrated Operations Agreement (IOA) marked a significant turning point for EQUS, opening up competition and opportunities for future growth beyond the amalgamations that had fueled past expansion.

type of service within our service area. This is incredibly powerful because we operate at cost, and our rates are in many cases less than our competitor’s, so it creates a benefit for the individual member, and the membership as a whole.

Protecting the interests of EQUS’ member-owners, Brian works to ensure a level playing field for fair competition. As EQUS’ in-house legal expert, Brian explains how regulatory bodies and the law affect EQUS’ operations.

What is the future of the current agreement?

What advantages does EQUS find under the current operations agreement?

The Integrated Operations Agreement that EQUS entered in September, 2016 created a comparative and competitive advantage unique among all other electricity distribution co-ops across Alberta in that it allowed true competition.

In EQUS’ 1997 agreement we had restrictions on the types of land areas that we could provide service to. EQUS was able to serve farms greater than 10 acres in size that were deriving revenue from agriculture, which was quite limiting. Those limitations are now removed, and we are able to serve anyone who chooses to be a member within our geographic service area. That allows us to service large industrial and commercial projects, and even rural greenfield developments.

The Integrated Operations Agreement is really instrumental to the future of EQUS. It gives us the ability to provide service to anyone with any size and

The nature of the Integrated Operations Agreement is that it requires either renewal or a commitment to re-arbitrate all or some of the agreement every five years. Our current IOA will expire in 2021 and there are a number of things out of that agreement that have gone very well over the last three years.

The goal now is to ensure that we at least maintain what we’ve fought for, and potentially look for solutions to the issues that have arisen as a result of the competition we’ve been participating in. As we work through new challenges we are finding areas where we need to build in additional process or clarity to ensure both the spirit and the letter of the agreement are adhered to. We will address those in the future when it is most appropriate to do so.

How does EQUS work with the Alberta Utilities Commission (AUC) and other regulatory bodies?

The AUC and EQUS have a somewhat unique relationship because a member-owned utility isn’t regulated by the AUC in the same way as an investor-owned utility. One major difference is that the AUC doesn’t set EQUS’ rates.

EQUS’ Board of Directors sets our rates, and they do that upon receiving the expected operating budget for the organization, and in keeping with the general direction from the membership to keep rates as low and as stable as possible. Investor-owned utilities have their rates set by the AUC, accounting for a reasonable rate of return for shareholders and to allow for ongoing development of the system.

We voluntarily comply with a broad complement of AUC rules regarding member service standards and metering. We do so voluntarily because we think it’s the right thing to do.

Because we operate as part of Alberta’s interconnected electric system, from time to time, EQUS will intervene in AUC proceedings where it is in our members’ interests to do so, or where there is a material impact to operations. As an example, we recently intervened in a proceeding that dealt with how the purchase of Rural Electrification Associations (REAs) are accounted for in the rates of investor-owned utilities, and whether or not shareholders of investor-owned utilities were entitled to a rate of return on the purchase of REAs. We intervened in this case because we have a long-standing belief as an organization that there should be no greater incentive to purchase the assets of a memberowned or a municipal utility than the additional consumers and revenue of that purchase. So, while the AUC doesn’t regulate EQUS the same as they do other utilities, we have a great relationship with the AUC.

General Counsel, Brian Hennings | 25

Putting

MEMBERS FIRST

Creating a member-centered experience and focusing on excellent, personalized service is a key factor in ensuring member satisfaction.

26 | Business Services Team

Ensuring that the lights are kept on for over 12,000 members in rural Alberta is an integral and highly visible part of EQUS’ operations. There is however, another team at EQUS that works behind the scenes to keep the lights on by supporting the business operations of EQUS with member service, finance, technology, and much more.

The Business Services Team is centralized in Innisfail. Lauren Garvey is responsible for overseeing the work that keeps the business side of EQUS on track and the members and employees satisfied and engaged.

“It’s important for us as a co-operative to operate responsibly and sustainably and to ensure we are providing the best member service possible. Because we’re not driven by profit, we’re able to strive to achieve the highest standard of service for our member-owners.”

At EQUS, each and every member is assigned a dedicated Member Service Administrator. This team acts as a single point of initial contact for members when they are looking for any information related to their account.

“Having a dedicated member service team helps to build relationships with members. Our Member Service Administrators get to know their members. They handle their billing and meter reads every month, so when the members call in with a question about their service or their account they already know who they’re talking to.”

“We’re always looking to our members to provide their insights. At the end of the day, the members are the reason we’re here and their input and that relationship we’re able to have with them is a really important aspect of the co-operative business model. Whether they want to sit on the Board or attend the Annual General Meeting, we welcome their feedback and ideas and try to provide an open forum for those conversations.”

98% OF OUR MEMBERS ARE SATISFIED WITH THEIR OVERALL SERVICE

Another aspect of sustainable operations is ensuring that employees are engaged.

“Operating as a values-based organization increases engagement. We are involving employees in creating a stronger valuesdriven culture internally here at EQUS.” “EQUS is a learning organization, and as such we regularly get everyone together as an organization for training and development so that we can all learn together and from one another. With over 100 employees working in four locations it’s important to create opportunities where we can engage in learning and continuous improvement face-to-face and build relationships as a team.”

When recruiting new employees, a good fit is key.

“Our annual member survey is one of the ways that we offer an opportunity for member feedback, and it’s also one way that we determine member satisfaction.

From that survey we know that 98 per cent of our members are satisfied with their overall service, and I think the number that says even more is that 97 per cent of them would recommend EQUS to a friend. We also follow up after anyone has service work done to ensure the member is happy, their needs have been met, and they have no concerns.”

“In making hiring decisions, we’re obviously looking for candidates that have the knowledge and skills that would meet the requirements of the job, but we’re also looking for employees who are excited to join and contribute to a valuesbased organization, where they know their colleagues and leaders are going to live those values.”

“It makes the member feel comfortable about reaching out and helps us understand what their concerns and needs are and if there are ways we can be working to better meet those needs.

By prioritizing these relationships, we create a more personal customer service experience that I think really sets us apart. Keeping our members satisfied and making sure they experience those unique advantages of being a co-op member is a big part of operating sustainably for us.”

As member-owners, EQUS members are also invited to give feedback and participate in strategic planning.

Judy - Central Area Service Administrator

Business Services Team | 27

QUALITY

We provide an excellent standard of work, service, and interaction

Providing quality, reliable, co-operative distribution service to rural homes, businesses, farms, and industry on an at-cost basis is what EQUS has been doing for over 70 years.

EXPERT OPINION Another significant period of change and growth came into effect in September, 2016. The new Integrated Operations Agreement between EQUS and FortisAlberta, which guides the operation of both entities’ integrated electrical distribution systems, opened up the doors to even greater opportunity for EQUS.

A

nyone can call themselves an expert, but what really sets someone apart as a leader in their field? Charlene Glazer, Regulatory and Compliance Leader, has spent the last 21 years becoming an expert in rural Alberta’s co-op electricity industry. From navigating mergers to changing regulations and the Integrated Operations Agreement, Charlene has been with EQUS through two decades of growth and change.

“The previous Wire Owner Agreement, which was in place since 1997, limited EQUS as to who we were able to provide distribution services to. When these limitations were removed in the 2016 agreement, it offered us the opportunity to provide distribution services to anyone within EQUS’ Service Area. It also changed the way we were doing business because suddenly everyone within our Service Area had a choice in who would provide their distribution services, they didn’t have to be with a service provider if they felt that provider wasn’t their best option.”

For Charlene, the growth has been necessary.

“Growth has been the main driver of change for us as a co-operative. When we grow we’re able to create economies of scale for our members, also allowing us greater opportunities to provide excellent service and lower rates to our membership.”

“While we were experiencing a significant amount of growth through amalgamations, we knew that the existing membership had concerns about how that growth would affect the quality of service that they were used to receiving.

We made a commitment to our existing membership that the growth would not affect their current level of service and we lived up to that commitment. We continued to maintain the exceptional level of service our members were used to, while growing those economies of scale that would create savings.”

THE BEST PART OF THE CO-OPERATIVE MODEL IS THAT IT PUTS PEOPLE ABOVE PROFIT

“We immediately started informing others about their ability to choose and educating them on the advantages of being part of an organization that operates under a co-operative business model versus a profit-driven business model. We also started to ask ourselves how we could provide choice and flexibility to our existing and prospective members. It’s not about telling the consumer ‘this is what EQUS can do for you’, it’s about asking the consumer ‘what do you need from EQUS’, and listening to them and working with their needs in the interest of developing and building a longterm relationship.”

The co-op business model comes with many advantages for member-owners.

“Because EQUS operates at cost, our rates are set based on our annual operating budget and are approved by the Board of Directors. Ultimately, the Board of Directors are members, who are elected by the members, so they have a vested interest in the rates and are accountable to deliver what the membership wants, while ensuring that their co-op is operating in way that is both competitive and sustainable.”

“I think the best part of the co-operative business model is that it puts people above profit. Providing exceptional service to the membership is a priority and we are proud of the relationships we have with our members. Because EQUS operates at cost, we provide a benchmark for electricity rates and distribution tariffs in Alberta. Unlike investor-owned utilities whose mandate is to generate profits for their stockholders, we exist to produce savings for members.”

According to Charlene, being an expert in rural electricity distribution is about combining exceptional member service with innovation and knowledge.

“For a long time, we were bound by the limitations on who we could serve and now that this limitation has been removed, we are free to think outside the box. We’ve always had a reputation for providing an excellent level of service to the agriculture industry, but now we’re elevating our reputation and showing that we can work on all kinds of projects including those in the oil and gas sector and county residential, industrial and commercial developments. Continually, various stakeholders are seeking our input and we’re being invited to participate in pilot projects and to share our expertise and I think that’s a really good sign that we have built a reputation as the experts.”

Alberta’s Electricity Experts | 29

spotlight

MYEQUS past year of billing and usage information, and pay their bill right in the app. They can also view any outages throughout the EQUS Service Area as well as sign up for notifications that would alert them if they were experiencing an outage and tell them at what time their power is expected to be restored.

W

e sat down with EQUS’ I.T. Team Leader, Khalid Mehmood, to discuss how some of EQUS’ newest technology is elevating the member experience.

How is EQUS connecting members?

We have our new Outage Management System, a new GIS/Mapping system, and soon we’ll have our Automated Metering Infrastructure (AMI) system. What connects those and brings them to the member, along with our Finance System, is the new MyEQUS member portal and the app.

What can MyEQUS do for members?

Through this app and the member portal members can access all of their account information including their current and

30 | MyEQUS Member App

Members with multiple services under the same name and address can link their services under one account and access bills and usage information from multiple meters. Members can also use the marketing preferences to opt in or out for the EQUS newsletter, event notifications, and more.

What are some features that are unique to MyEQUS? The outage notifications are definitely unique to EQUS, but some others are the map that shows electric vehicle charging stations and also the programs section that has information about energy efficiency, micro-generation, and any other new program that is currently active.

There is also an option to compare your usage and understand whether your usage is above or below average in your area, which could help make decisions about energy efficiency.

Once we have all our members connected with AMI, the outage feature will be enhanced because the meters will report

an outage before the member reports the outage. Even if they weren’t home at the time, we would be able to let them know that their power was out and when we expect it to be restored.

What are the most used features?

The most used feature is definitely outage reporting. Users can report their outage through the app and it comes through exactly the same as if they had phoned in, we have all the information and they can even attach a picture if they are able to identify what is causing their outage.

Non-members and the general public can also access this feature through the portal and the app without needing to create an account.

We have a lot of members submitting their meter reads through the app as well.

This is convenient for them, and for our Member Service Administrators who take those reads and process them for billing, so it creates efficiencies on both ends of that process.

How can members access MyEQUS? MyEQUS can be accessed online and through the mobile app. Members can download the app to their phone or tablet, or go to equs.ca and create a new MyEQUS login to use the web portal.

Once they have created that account, they will be able to access all of the features on whatever device they are most comfortable with.

MICROGEN

To be considered a micro-generator under the Electric Utilities Act there are several conditions that must be met including that energy come from a renewable or alternative source, that it is being used to power a site that is owned or leased by the generator, and that the capacity for generation not exceed 5MW. According to Owen, most microgenerators fall well within that capacity as they’re typically not looking to have a maximum capacity beyond what they would use on a day-to-day basis.

I

t may seem counter-productive for an electricity distribution provider to be actively working to help members generate their own electricity, but at EQUS it’s simply seen as part of providing member-driven service. Owen Zarazun currently oversees EQUS’ microgeneration program and he doesn’t believe that there is anything but positive outcomes for all involved when members become micro-generators.

“When members approach us about becoming micro-generators we work with them to determine how their project will fit within provincial regulations, how much electricity they are looking to generate, and what incentives and financing options are available. We’ll also install a bi-directional meter and guide them through some of the paperwork required to get started.”

“Mostly we see members looking at solar installations that, at their peak productivity, would be meeting their electricity needs on that site. They also would have the opportunity to create revenue by putting any surplus back into the grid, while being able to use electricity from the grid if they’re not generating enough.”

While self-sustaining off-grid may be an appealing option, Owen says that for most micro-generators, it’s not realistic.

“There really aren’t many microgenerators who are going off-grid. For the average micro-generator, the type of set up that would allow them to go off-grid and maintain reliable, constant electricity is too cost-prohibitive at this point. To go off-grid and continue to have reliable power you would need to be generating electricity from multiple diverse sources that could back each other up which would be a significant investment.”

While the technology and costs can be limiting currently, that may not be the case for long.

“There is always continued improvement of the technology behind it and as we gather more data from micro-generators, we learn more and more about how to improve efficiencies. The options for storing power are constantly improving, which could affect the reliability of micro-generation systems for those who do want to go off-grid, and there’s always artificial intelligence and machine learning to factor in as well. How is that going to change things in the years to come?”

The innovation in the field is continuous and the impact of micro-generation on the future of the electricity industry and the grid is constantly evolving. For EQUS, at the end of the day what matters is the members.

“We want to be offering solutions to our members. There are benefits for EQUS as well. By being involved in the process we gain insight into our own distribution system that can help us plan for the future. Keeping in contact and connected with our members is important, and these are great opportunities to add value for them. The sun doesn’t always shine and the wind doesn’t always blow, so when it doesn’t we’ll still be there to provide reliable power for our members’ homes, farms, businesses and facilities.”

Micro-generation | 31

Forging

NEW PATHS

Checking your electricity meter each month is just something rural Albertans have had to deal with...until now. EQUS is proud to be leading the charge for Automated Metering Infrastructure, the first of its kind in a rural setting in North America.

32 | Automated Metering Infrastructure

I

n 2018, EQUS tested a pilot project in the Sundre area, installing a unique rural network of automated smart meters - the first of its kind in Canada. Having successfully navigated the challenges that have prevented the implentation of this technology elsewhere, EQUS is now in the process of a full deployment of this innovative technology, bringing the benefits of automated smart meters to rural Alberta.

Rick Maclise, who has led the project from the very early stages of the pilot to the current full deployment, answered some questions for us about this exciting new project.

What is AMI? AMI stands for Automated Metering Infrastructure and it’s a system in which we have two-way communication between smart meters and our command centre.

It’s different than most automated meters because they are typically only capable of one-way communication in that they are only able to send the usage data to the utility. With these meters we can also do remote connects and disconnects without having to send someone out, we can get voltage information, and we can program the meters to give us different information about a member’s usage if the member wants it.

We worked with Landis & Gyr to develop this system based off of a similar system that would be suited to an urban environment and we adapted that system to be able to cover over 17,000 sq. km of mixed terrain. The end product we have ended up with will be Canada’s first ultrarural smart grid, and we’re all really proud to have been the first to do this.

How does it work?

The smart meters are installed at the member’s property and they record and transmit usage information every 15 minutes. The network is made up passive antennas, routers, and collectors. The meters communicate with each other and through the passive antennas and routers

to eventually reach one of the collectors.

The collectors then transmit the meter data through an encrypted, secure cellular network which brings it back to the EQUS command centre. The data is also encrypted in transit to the collectors, so the entire system is very secure.

system planning. Having such accurate data about member usage and demand on the system will help us budget and understand where we need to look at upgrading the distribution system and correct low voltage issues that may be arising.

The meters are also able to adapt, so if a smart meter loses its fastest path to a collector, if a router along the way or a collector is experiencing an outage, it would simply bounce the signal around until it found another path to the end point.

It’s also integrated with our outage management system, which is going to allow us to improve our response and reduce outage times, creating a more reliable system and minimizing the inconvenience an unplanned outage can cause our members.

How does it help with outages?

These systems also connect with the MyEQUS member app. By linking them all together we can give members access to accurate outage information and restoration times, help them manage their demand with usage data, and provide their billing and usage data.

When an outage occurs, the meters and network equipment in the affected area will also go out, however the meters will send a last message notifying the EQUS command centre that its power has been lost. That notification comes back and connects with our mapping system, showing us exactly where the outage is occurring and how many members are being affected. This data then connects with our outage management system to notify the Powerline Technicians on duty that an outage is occurring and allows them to isolate the exact members being affected and respond. So as an example, if the power were to go out in the middle of the night, our crews could respond and restore the power before the members could even wake up to report their outage. They would only know that they had experienced an outage because they would have to reset their clocks in the morning.

How will the meters integrate with EQUS’ other systems?

The meters will be integrated with several systems. Primarily, they will be sending meter readings directly into our billing system, meaning that members who currently have to manually read their meters every month and submit their readings will no longer have to.

The data we collect about usage from the meters will also be used to inform our

What were the challenges in testing and implementing this technology?

The EQUS Service Area is ultra-rural, which means that our end-point users aren’t highly concentrated and the meters are spread out over a greater distance than the radio frequencies used in this system can handle. To overcome that Landis & Gyr used passive antennas in a different way than they would typically be used.

In an urban environment, the antennas would be used to help get a signal out of a building, so if the meter was in the basement of an apartment building, an antenna mounted on the exterior of the building would boost the signal enough to allow it to get to the routers and collectors. For our purposes we’ve mounted those antennas to our power poles in strategic locations so they can strengthen those signals to cover the distances we’re dealing with.

That’s really what makes the project viable. If we weren’t able to use those antennas for that purpose we would be looking at tripling the number of routers and collectors needed which would have made the project too costly to consider.

Automated Metering Infrastructure | 33

COMMUNITY

We support both internal and external communities through cooperation, engagement, service, and stewardship Through our member program, Operation Round-Up, members can opt-in to round their bill up each month to the nearest dollar, with the surplus amount going to fund worthwhile initiatives within our Service Area. While the amount averages out to $6/member per year, together, it makes a huge impact in our communities.

Through our staff program, the EQUS Community Connection, staff volunteer their efforts to raise money through events like our annual Charity Golf Tournament. The funds are dispersed to support initiatives like Mental Health in rural Alberta.

EQUS COMMUNITY CONNECTION

Together

WE GIVE BACK E

QUS is proud to be the first Canadian organization granted permission to implement the Operation Round Up program. Through this program EQUS members create a fund that is distributed to community organizations and initiatives that support rural youth and seniors.

Some Operation Round Up funds are also reserved for Members Helping Members, an initiative that supports EQUS members who find themselves facing a temporary financial hardship.

Read about some of the great projects EQUS members have helped deliver:

While members can opt-out of rounding up their bills to contribute, we are pleased to be able to say that 97% of EQUS members participate in Operation Round Up, and together they have raised over $175,000. These funds will stay in rural communities. Funds are distributed to non-profit organizations who apply, describing their initiatives and how they will benefit rural communities. The applications are reviewed by a committee that consists of three EQUS members, one representative from the Board of Directors, and the EQUS CEO.

Camp Health, Hope & Happiness (He Ho Ha) is a summer camp for children, youth, adults, and seniors with physical and mental disabilities. Since 1960 the camp, located near Seba Beach, has provided a safe and rewarding recreational experience that allows campers to develop friendships, participate in adapted activities, and experience a sense of belonging and independence. Operation Round Up donated $3,160 to Camp He Ho Ha for the purchase of privacy screens for the camper’s dorms. These screens will provide increased privacy for campers who need it, and help ensure they are able to comfortably enjoy their stay at this great facility.

97% OF EQUS MEMBERS PARTICIPATE IN OPERATION ROUND UP AND TOGETHER THEY HAVE RAISED OVER $175,000.

Canadian Parks and Wilderness Society

Since 2016 EQUS members have supported over 50 rural non-profits through Operation Round Up.

Nature Education for Alberta’s Rural Youth. Operation Round Up provided funds to have the program delivered to 125 rural students in Irricana and Granum in 2017, and to 150 students in Fort Macleod in 2018.

Camp He Ho Ha

Onoway Golden Club The Onoway Golden Club’s Generations Project has been bringing local youth and seniors together for several years now. In this program, seniors from the Onoway Golden Club join students from Onoway Elementary School to share skills and learn from each other. The students learn how to bake, cook, knit, and more, and then they help teach the seniors how to better use smart phones, tablets, computers, and more.

Operation Round Up has been able to provide funding for this project in 2017 and 2018 and has received excellent feedback from participants.

The Southern Alberta chapter of the Canadian Parks and Wilderness Society works to protect the ecological integrity of the southern Alberta landscape and encourage environmental stewardship through education and engagement.

Each year they educate elementary and high school students in rural Alberta through their award-winning experiential science-based program, Community Initiatives | 35

As Canada’s largest member-owned utility, we enrich the lives of our members in rural Alberta homes, businesses, and communities.

@poweredbyEQUS