EPCOR’s corporate governance has been recognized for excellence and innovation. In 2004, EPCOR was named the overall winner of a National Award in Governance from the Conference Board of Canada and Spencer Stuart. Growth and shareholder return were two measures.
Growth
The Board’s governance structure was amended in 2001 to prepare the company for success in newly deregulated electricity markets.
The new structure permitted EPCOR’s Board of Directors to operate independently - at arm’s length from its sole Shareholder, the City of Edmonton. It also supported the need for regulatory oversight when dealing with essential elements such as electricity and water.
With the freedom to conduct business, the Board embraced best practices that put EPCOR on equal footing with private sector corporations.
With the opening of competitive electricity markets, EPCOR executed a strategy to capitalize on opportunities. Acquisitions and capital investments were targeted and, within three years, EPCOR doubled in size.
Shareholder Return
A unique dividend formula injected a commercial discipline into the Shareholder relationship. The dividend increases annually by $10 million until it reaches 60% of earnings available to common shares of EPCOR in the applicable year.
About the Board
The Board is composed of business leaders from Vancouver, Calgary, Edmonton and Toronto, who have no affiliation to the Shareholder, or interest in EPCOR.