Schedule 2-2 Corporate Organization Chart1 of 8
Corporate Organizational Chart:
See attached for personnel organizational chart.
Summary Description:
Milton Hydro Holdings Inc:
Nature of Business: Milton Hydro Holdings Inc. (the “Corporation”) is a holding company established in response to the restructuring and deregulation of Ontario’s electricity industry. In 1998, the Province of Ontario introduced the Energy Competition Act, which included both the Electricity Act and the Ontario Energy Board Act, to establish a statutory framework to move regulatory authority of electricity to the Ontario Energy Board (“OEB”). Municipal electric utilities were required to segregate their distribution businesses from other businesses and establish them into corporations under the Ontario Business Corporations Act with commercial capital structures according to guidelines set by the OEB. Pursuant to the legislation, on October 1, 2000, the net distribution operating assets of the Milton Hydro-Electric Commission were transferred to MHHI and subsidiaries.
MHHI supervises the management of its subsidiaries, Milton Hydro Distribution Inc. (MHDI), Milton Hydro Telecom Inc. (MHTI) and Milton Hydro Services Inc. (MHSI) (remains inactive).
Products or Services Provided to Each Affiliate: MHHI meets on a quarterly basis and as required. MHHI charges each of its active subsidiaries a management fee, based on the board’s resource utilization. The management fee covers the expenditures of the Board of MHHI.
MHHI provides management services to MHDI and MHTI.
1.“Management Services”, will include, as required:
(a)Management services: including but not limited to MHHI Board of Directors providing direction and policy to MHDI and MHTI.
Products or Services Received from Each Affiliate: MHDI provides accounting & finance services, management services, and corporate support services to MHHI.
1.“Accounting & Finance Services”, will include, as required:
(a)Accounting: financial systems, financial processes, policies and procedures, financial controls and compliance, financial reporting and analysis, annual budgets, financial operations, managing external audit, and insurance programs.
(b)Finance services: financing including, operating line of credit, cash flow management and investment of funds, banking, financial guarantees including, letters of credit, payroll services, accounts payable services, and account receivables.
2.“Management Services”, will include, as required:
(a)Management services: including but not limited to taking direction from and reporting to MHHI Board of Directors.
3.“Corporate Support Services”, will include, as required:
(a)Call centre services: call answering services and switchboard services.
(b)IT services: personal computer systems support and communications support.
Corporate Services Shared with Distributor: See above.
Milton Hydro Distribution Inc:
Nature of Business:Milton Hydro Distribution Inc. (“MHDI”) is the Corporation’s principal operating subsidiary, the regulated electricity distributor for businesses and residents within the Town of Milton. MHDI also provides certain unregulated water billing and customer care services to the Regional Municipality of Halton.
The electricity distribution business of the Corporation represents approximately 98% of consolidated assets and 96% of consolidated revenue and other income.
Products or Services Provided to Each Affiliate:
MHDI provides accounting/billing & finance services, management services, corporate support services to MHHI and MHTI, and streetlight maintenance services sentinel light services to MHTI.
1.“Accounting/Billing & Finance Services”, will include, as required:
(c)Accounting/billing: financial controls and compliance, financial reporting and analysis, annual budgets, financial operations, billing, collecting, capitalization and depreciation, inventory, labour charging, allocations and burdens, managing external audit and managing insurance programs (liability, D&O, facilities).
(d)Finance services: financing including, banking, operating line of credit, cash flow management and investment of funds, financial guarantees, payroll services, taxation (PIL’s), and GST and PST remittances.
2.“Management Services”, will include, as required:
(a)Management services: including but not limited to overseeing MHDI staff and contractors providing services to MHTI, taking direction from and reporting to MHTI Board of Directors and Milton Hydro Holdings Inc. Board of Directors, and risk and contract management.
3.“Corporate Support Services”, will include, as required:
(c)Call centre services: call answering services and switchboard services.
(d)IT services: personal computer systems support and communications support.
(e)Safety services: safety program development, monitoring, reporting, implementation and support.
4.“Streetlight Maintenance Services”, will include, as required:
(a)Streetlight Maintenance Services: all activities required to maintain streetlights for the Town of Milton including bulb/ballast replacement, trouble-shooting, secondary fault repairs, and management of third party contracts for re-lamping activities.
- “Sentinel Light Services”, will include, as required:
(a)Sentinel Light Services: installing new and maintaining sentinel light rental units.
Products or Services Received from Each Affiliate:
MHTI provides internet services and sentinel light rental services to MHDI.
1.“Internet Services”, will include, as required:
(b)Internet Services: includes provision of internet services – 512 kbps to MHDI office premises.
2.“Sentinel Light Rental Services”, will include, as required:
Sentinel Light Rental Services: includes rental of sentinel lights located at MHDI premises.
MHHI provides management services to MHDI and MHTI.
1.“Management Services”, will include, as required:
(a)Management services: including but not limited to MHHI Board of Directors providing direction and policy to MHDI and MHTI.
Corporate Services Shared with Distributor: not applicable.
Milton Hydro Telecom Inc:
Nature of Business:Milton Hydro Telecom Inc. (“MHTI”) provides fibre optic telecommunication services including dark fibre leasing and point-to-point high speed services and sentinel light rental within the Town of Milton and streetlight consulting and maintenance services to the Town of Milton.
MHTI has no full-time employees. The majority of work involved in construction & maintenance and marketing of the telecommunication services is currently out-sourced.
Products or Services Provided to Each Affiliate: MHTI provides internet services and sentinel light rental services to MHDI.
1.“Internet Services”, will include, as required:
(c)Internet Services: includes provision of internet services – 512 kbps to MHDI office premises.
2.“Sentinel Light Rental Services”, will include, as required:
Sentinel Light Rental Services: includes rental of sentinel lights located at MHDI premises
Products or Services Received from Each Affiliate:
MHDI provides accounting/billing & finance services, management services, corporate support services and streetlight maintenance services sentinel light services to MHTI.
1.“Accounting/Billing & Finance Services”, will include, as required:
(e)Accounting/billing: financial controls and compliance, financial reporting and analysis, annual budgets, financial operations, billing, collecting, capitalization and depreciation, inventory, labour charging, allocations and burdens, managing external audit and managing insurance programs (liability, D&O, facilities).
(f)Finance services: financing including, banking, operating line of credit, cash flow management and investment of funds, financial guarantees, payroll services, taxation (PIL’s), and GST and PST remittances.
2.“Management Services”, will include, as required:
(a)Management services: including but not limited to overseeing MHDI staff and contractors providing services to MHTI, taking direction from and reporting to MHTI Board of Directors and Milton Hydro Holdings Inc. Board of Directors, and risk and contract management.
3.“Corporate Support Services”, will include, as required:
(f)Call centre services: call answering services and switchboard services.
(g)IT services: personal computer systems support and communications support.
(h)Safety services: safety program development, monitoring, reporting, implementation and support.
4.“Streetlight Maintenance Services”, will include, as required:
(d)Streetlight Maintenance Services: all activities required to maintain streetlights for the Town of Milton including bulb/ballast replacement, trouble-shooting, secondary fault repairs, and management of third party contracts for re-lamping activities.
- “Sentinel Light Services”, will include, as required:
(b)Sentinel Light Services: installing new and maintaining sentinel light rental units.
MHHI provides management services to MHDI and MHTI.
1.“Management Services”, will include, as required:
(a)Management services: including but not limited to MHHI Board of Directors providing direction and policy to MHDI and MHTI.
Corporate Services Shared with Distributor: See above.
Milton Hydro Services Inc:
Nature of Business:Milton Hydro Services Inc. (“MHSI”) remains inactive. It was incorporated to take advantage of potential opportunities that may arise in the future.
Products or Services Provided to Each Affiliate: not applicable.
Products or Services Received from Each Affiliate: not applicable.
Corporate Services Shared with Distributor: not applicable.
Milton Hydro Distribution Inc. 2006 Rate Application