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Thread: Another Great Deal (for Epcor)

  1. #1

    Default Another Great Deal (for Epcor)

    Just before a "long weekend" and with little public input, the C of E has decided to transfer it's control of the Drainage system to Epcor with the justification that it would save the City a bundle. Theoretical figures of course that always present a rosy picture. My concern and probably that of many other residents is that Epcor will be in a position to increase the utility charges without Council approval. I wonder why Edmontonians do not demand more consultation before these high priced ventures take place. Anybody else bothered?

  2. #2

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    Very bothered. Even developers did not like EPCOR having so much control over utilities.
    Advocating a better Edmonton through effective, efficient and economical transit.

  3. #3

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    Creative accounting, that's all. The city owns Epcor.
    Last edited by AShetsen; 14-04-2017 at 05:46 PM.

  4. #4

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    Quote Originally Posted by AShetsen View Post
    Creative accounting, that's all. The city owns Epcor.
    Then why do it? Over $20 million is significantly creative. )$20 million in dividend, then $'X' amount in lower rates.

    Likely some from FTE savings via attrition.

    Note: The financial strength comment is really strange - being considered a benefit.


    https://www.epcor.com/products-servi...-proposal.aspx
    Excerpt:
    "Lower Drainage rates with EPCOR in comparison to staying with the City

    EPCOR has the financial strength to support the capital investment needed to address the City's growth, aging infrastructure and flood mitigation efforts

    EPCOR will be able to increase and sustain an additional $20 million to the annual dividend. EPCOR will pay City a $146 million dividend for 2017.

    Combining the technical expertise of Drainage employees with EPCOR's strength as a major utility services provider will reduce operating and capital costs – for the benefit of customers.

    EPCOR will reduce Drainage operating costs by $5 million over five years. Coordination of work planning, safety performance, training, fleet and other areas would result in greater efficiency. EPCOR Water and Drainage have similar operations and if aligned, both would be more efficient over time.

    EPCOR will reduce Drainage's capital costs by 10% each year by using our proven processes for the effective management of planning, design and construction of large-scale capital projects.
    "
    Last edited by KC; 14-04-2017 at 06:43 PM.

  5. #5

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    To make the numbers look better by removing losses to a set of numbers recorded indirectly.

    The city does not want to fund the sewers from its primary funds, so it moves them to Epcor, which has the cash flow necessary to fund them.

    That way, a subsidy is removed from the city's books. The cost -- slightly lower profits at Epcor -- is justified by better optics.

    The said it themselves, more or less. Why quibble?
    Last edited by AShetsen; 14-04-2017 at 06:39 PM.

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