KINGSTON,ON/Dec. 14, 2012 – Utilities Kingston and Kingston Hydro urge the provincial government to reject the recommendations of the Distribution Sector Panel Report in favour of more meaningful solutions that meet the best interests of municipalities such as the City of Kingston and its citizens.

The province can do more to better serve the people and their municipalities, as demonstrated by the proven cost savings and customer service advantages of the multi-utility model that thrives right here in Kingston today. The cost savings are derived from achieving efficiencies through the scope of services provided by Utilities Kingston. An example is the direct savings to print and mail one bill for all the services the customer receives.

The panel report recommends forming large regional distributors, with Hydro One as the basis. It apparently fails to recognize that electricity rates of some of the largest distributors are significantly higher than those of smaller companies like Kingston Hydro. It is difficult to see how the recommendations will benefit the pocketbooks of Kingston’s citizens.

In June of 2012, Kingston Hydro and Utilities Kingston presented to the distribution sector panel and demonstrated that managing electricity along with water, wastewater and natural gas utilities provides the most cost-effective means of providing utility services.

“We were able to present concrete dollar values to prove a minimum savings equivalent to one month of Kingston Hydro distribution revenue for every customer in our distribution area. We can extrapolate similar savings for our gas, water, and wastewater customers. For a resident living in Central Kingston, where we provide all the utility services under one roof, these savings add up to make a real difference,” said Jim Keech, President and CEO of Utilities Kingston and Kingston Hydro.

In addition to Kingston residents saving on their utility bills, the customer service advantages of the multi-utility model must not be overlooked. In carefully aligning its plans and strategies with the City’s, Utilities Kingston and Kingston Hydro are uniquely positioned to support the City of Kingston in its growth and sustainability strategies. Other customer service advantages include efficient coordination of joint construction projects, leading to timely and cost-effective completion, with less disruption to customers.

The Electricity Distributors Association recognized the value of the multi-utility scope model and identified nearly $4.3 billion of present value savings over the next decade in its plan The Power to Deliver, A Six Point Plan for the Future of Electricity Distribution in Ontario, which the panel chose to ignore.

The recommendations of the panel not only undermine the ability to continue the multi-utility model and benefit Kingston residents, but also make it impossible to provide the same cost savings and customer services anywhere else in the province.

“We are disappointed that the panel chose to ignore the cost savings and customer service benefits of our model, but are confident the provincial government will embrace more innovative delivery models for utility services, which are after all, the backbone of Ontario communities,” said Keech.

About Kingston Hydro

Kingston Hydro is licensed by the Ontario Energy Board to distribute electricity in central Kingston. It owns the electric infrastructure—such as wires, poles, transformers, sub-stations and meters—that brings electricity from the provincial electricity transmission grid to your door. Kingston Hydro infrastructure is operated by Utilities Kingston.

About Utilities Kingston

Utilities Kingston is unique in Ontario, as one company under the leadership of a single CEO, providing combined water, wastewater, gas, electrical and broadband fibre optic services. The company provides local and reliable utility services with a strong focus on customer service.

- 30 - Media contact information: Jim Keech, President and CEO of Utilities Kingston and Kingston Hydro, swright@utilitieskingston.com, 613-546-1181, extension 2353