ATCO Ltd. | 2013 | Annual Report
“With a renewed vigor for sustainable growth and
innovation, your company’s purpose is to be the most
reliable, most trusted, cost-effective, value-added
provider in all of our industries.”
Nancy C. Southern
Chair, President & Chief Executive Officer
COVER: Bow Lake, Banff National Park,
Alberta, in May featuring the Crowfoot
mountain and glacier beneath the Milky Way.
CONTENTS
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . 2
Letter to Share Owners . . . . . . . . . . . . . . . . . . . 3
Return on Investment . . . . . . . . . . . . . . . . . . . . 6
Innovation and Improvement as
Drivers for 2014 . . . . . . . . . . . . . . . . . . . . . . . . . 7
STRUCTURES & LOGISTICS . . . . . . . . . . . . . . 9
ATCO Structures & Logistics . . . . . . . . . . 11
Helping Albertans Build Alberta . . . . . . . . . . . 19
UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
ATCO Electric . . . . . . . . . . . . . . . . . . . . . . 23
ATCO in the North . . . . . . . . . . . . . . . . . . . 29
ATCO Gas . . . . . . . . . . . . . . . . . . . . . . . . . 31
2013 Alberta Floods: ATCO Responds . . 37
ATCO Pipelines . . . . . . . . . . . . . . . . . . . . . 41
ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
ATCO Power . . . . . . . . . . . . . . . . . . . . . . . 47
ATCO Energy Solutions . . . . . . . . . . . . . . 51
TECHNOLOGIES . . . . . . . . . . . . . . . . . . . . . . . 54
ATCO I-Tek . . . . . . . . . . . . . . . . . . . . . . . . 54
aTCO Australia Well Positioned for
Changing Landscape . . . . . . . . . . . . . . . . . . 55
aUSTRaLIa . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
ATCO AUSTRALIA . . . . . . . . . . . . . . . . . . 59
Aboriginal Partnerships . . . . . . . . . . . . . . . . . 65
ATCO Sustainable Communities . . . . . . . 69
Making a Difference in our Communities . . . 71
Financial Excellence 2013 . . . . . . . . . . . . . . . . 75
Consolidated Annual Results . . . . . . . . . . . . . 77
Consolidated Operating Summary . . . . . . . . 78
ATCO Ltd. Directors . . . . . . . . . . . . . . . . . . . . 79
ATCO Ltd. Officers . . . . . . . . . . . . . . . . . . . . . 80
ATCO’s Beautiful Alberta Heritage . . . . . . . . . 81
General Information . . . . . . . . . . . . . . . . . . . . 82
ATCO Group is a diversified,
Canadian-based, international
group of companies focused
on profitable sustainable
growth and achievement with
approximately $16 billion in
assets and more than 9,800
people actively engaged
in Structures & Logistics
STRUCTURES & LOGISTICS
ATCO STRUCTURES & LOGISTICS
ATCO SUSTAINABLE COMMUNITIES
UTILITIES
ATCO GAS
ATCO ELECTRIC
ATCO PIPELINES
(manufacturing, logistics and
ENERGY
noise abatement), Utilities
(pipelines, natural gas and
electricity transmission
ATCO POWER
ATCO ENERGY SOLUTIONS
and distribution), Energy
AUSTRALIA
(power generation, natural
ATCO GAS AUSTRALIA
gas gathering, processing,
ATCO POWER AUSTRALIA
storage and liquids extraction),
ATCO I-TEK AUSTRALIA
and Technologies (business
systems solutions).
TECHNOLOGIES
ATCO I-TEK
ATCO LTD. FINANCIAL HIGHLIGHTS
This data (other than funds generated
by operations) has been extracted
from financial statements prepared
in accordance with International
Financial Reporting Standards (IFRS)
and the reporting currency is the
Canadian dollar.
For further information, please see
ATCO Ltd. Consolidated Financial
Statements and Management’s
Discussion and Analysis -
www.sedar.com.
FORWARD-LOOKING INFORMATION:
Certain statements contained in this
Annual Report constitute forward-looking
information. Forward-looking information
is often, but not always, identified by
the use of words such as “anticipate”,
“plan”, “estimate”, “expect”, “may”, “will”,
“intend”, “should”, and similar expressions.
Forward-looking information involves
known and unknown risks, uncertainties
and other factors that may cause actual
results or events to differ materially from
those anticipated in such forward-looking
information. The Company believes that the
expectations reflected in the forward-looking
information are reasonable, but no assurance
can be given that these expectations will
prove to be correct and such forward-looking
information should not be unduly relied
upon.
(1) Financial results for the year ended December 31, 2012
have been restated to reflect changes due to the adoption
of IFRS 11 Joint Arrangements and amended IAS 19
Employee Benefits.
Consolidated Annual Results
YEAR ENDED DECEMBER 31
(Millions of Canadian dollars
except per share data)
2013
2012 (1)
FINANCIAL
Revenues
Earnings attributable to
Class I & Class II shares
Adjusted earnings
4,359
4,012
418
390
370
370
Total assets
16,010
14,055
Class I & Class II
share owners’ equity
2,860
2,370
Funds generated by operations
1,869
1,636
Capital expenditures
2,518
2,487
CLASS I NON-VOTING &
CLASS II VOTING
SHARE DATA
Earnings per share
3 .64
3.21
Diluted earnings per share
3 .62
3.20
Dividends paid per share
0 .75
0.66
Shares outstanding (thousands)
115,124 115,017
Weighted average shares
outstanding (thousands)
114,801 115,023
1 2013 ANNUAL REPORT
FINANCIAL HIGHLIGHTS 2
LETTER TO
SHARE OWNERS
Dear Share Owners of ATCO,
I am extremely proud of our company’s record
achievements this past year and the tremendous effort
applied to the implementation of our strategies.
As I reflect on our growth in 2013 and all that ATCO
represents today, thoughts of the events, circumstances
and the people of the past rush before me as historical
turning points on our way to becoming who we are.
Our experiences and lessons learned from the past
have shaped the diverse yet complementary nature
of our businesses and our response to the various
economic cycles.
Our strategies, as agreed and confirmed by our Board
of Directors in 2010, are well under way:
- Geographic expansion to meet the global needs of our
customers — “Anywhere, Anytime”
- Development of significant, value creating Greenfield
projects
- Identification and monetization of NON-CORE assets
- Commitment to continuous improvement and
innovation by dedicating people and capital to
research and development
I believe you will find our Senior Officers’ comments
regarding our progress particularly insightful.
Their leadership sets the tone and framework for
our expansion in each of our Principal Operating
Subsidiaries.
While no one can predict the future, I remain concerned
about our ongoing prospects due to the uncertainty
created by geopolitical stress and an ever-changing
regulatory environment occurring in each geography
and business that ATCO participates in.
If—and I suspect we are—headed into a period of
slower global growth, then it will be crucial for ATCO
Group to significantly widen the gap between ourselves
and our competitors as the “go to” supplier of choice.
In order to do this, I will bring even greater attention
to our people processes, for it is the people of this
company first and foremost who were and are the reason for
our sustainable growth and achievements.
From all walks of life and so many global cultures, the people
of ATCO are our differentiating advantage. This is true of
the factory workers on the floor in our ATCO Structures &
Logistics plants, our high and low voltage power linemen in
ATCO Electric, the backhoe operators laying pipe in ATCO
Gas and ATCO Pipelines, our engineers, project managers,
HR and IT specialists, our finance and risk departments, our
managers and executives.
Within our company, this is known as the ‘ATCO Heart and
Mind’, which has formed the fundamental tenets of how we
operate today and how we evaluate our future opportunities
and decisions:
- We are a principally controlled organization with a
responsibility to all our employees and Share Owners to
ensure ATCO Group continues through the generations
- Striving for the highest standards in all that we do, knowing
our customers and anticipating their needs with innovative,
competitively priced products and world renowned service,
on time and on budget
- Our people and the communities where we work and live,
MUST be and remain safe
- A strong balance sheet must be maintained in order to
weather severe and unexpected economic downturns
- Leadership is situational and everyone in the company has a
leadership role to play
Collectively and individually the ‘ATCO Heart and Mind’ is
reflected in our definition of excellence:
. . . . Excellence . . . .
“Going Far Beyond The Call Of Duty.
Doing More Than Others Expect.
This Is What Excellence Is All About.
It Comes From Striving, Maintaining
The Highest Standards, Looking After The
Smallest Detail And Going The Extra Mile.
Excellence Means Caring. It Means
Making A Special Effort To Do More.”
0.75
0.66
0.50
0.53
0.57
2009
2010
2011
2012
2013
DIVIDENDS PER SHARE ($) († )
3.64*
3.21*
2.83*
2.45
2.42*
2009
2010
2011
2012
2013
EARNINGS PER SHARE ($)* († )
16.0*
14.1*
12.5*
10.0
10.1*
2009
2010
2011
2012
2013
ASSETS ($ BILLIONS)*
* Earnings per share and assets have been
prepared in accordance with International
Financial Reporting Standards (IFRS), except
for the year ended December 31, 2009 which
has been prepared in accordance with
Canadian Generally Accepted Accounting
Principles (GAAP) in effect prior to the
adoption of IFRS.
2012 financial information has been restated
to reflect changes to IFRS standards adopted
in 2013.
(†) Restated to reflect the two-for-one share
split completed on June 14, 2013.
LETTER TO SHARE OWNERS 4
Nancy C. Southern
Chair, President & Chief Executive Officer
3 2013 ANNUAL REPORT
While it is not for me to say, I believe
the record of ATCO’s performance
speaks for itself;
representing over $1 billion of asset
investment and revenue per annum in
and from these relationships.
“We are what we repeatedly do.
Excellence, then, is not an act but a
habit.” – Aristotle
I know that I will be perceived to have
a significant bias, but I am convinced
that my father, and my grandfather
before him, were years ahead of
their time on so many fronts and in
initiating so many ground-breaking
improvements and innovation to our
businesses. Two such enterprise-
changing approaches (strategies),
were the initiation in 1987 of the
first equity partnership with the
Dene Nation in Northland Utilities
and second, was the introduction
of ‘independent’ board members
to the ATCO Board when there was
no regulation or guideline to do
so. These revolutionary and bold
initiatives were implemented because
they were the RIGHT thing to do in
order to expand the horizons of the
future for your company.
Today, ATCO Group has more than
50 partnerships, joint ventures,
services agreements and other
forms of relationships with First
Nations, Inuit, Metis and Aboriginal
people across Canada and Alaska
Since 1968, ATCO has been a leader
in good governance practices long
before the emergence of ‘good
governance’ institutions.
ATCO was the first in Canada
to introduce Designated Audit
Directors (DAD) who have individual
responsibility to review financial
statements, risk assessments,
meet with independent auditors
and internal audit for each Principal
Operating Subsidiary and report on
their findings to the Audit Committee
of the Board.
Over the decades, the composition
of our Boards has reflected the skills
and experience required to address
the issues and business environment
of the times.
Our Board of Directors provides
independent thinking and counsel
as it pertains to long-term strategy,
succession and governance for our
company.
On behalf of all our Share Owners,
I wish to sincerely thank and
compliment the proactive, wise and
knowledgeable contributions of the
ATCO Group Board of Directors
– past, present and future. Our
Board’s integrity and their abilities to
exercise sound, seasoned and well
considered judgment for the long-
term benefit of your company is a
matter of record and is reflected in
the total Share Owner return graphs.
Smooth courses are promised to no
one, but I am confident and I commit
to you, that your company will remain
diligent and disciplined in the face of
adversity, maintain our fierce desire
to succeed, and persevere through
the tumultuous uncertainties of the
future.
I wish to close by recognizing the
clarity of vision and tremendous
courage of our past Chairman and
Co-Founder, my father Ron (R.D.)
Southern, and by offering each of
you, the owners of ATCO shares, my
deepest appreciation for your trust
and belief in our company.
With deep respect,
Nancy C. Southern
Chair, President & Chief Executive Officer
TOTAL RETURN FROM 1968-2013 ON $100 INVESTMENT
Class I Non-Voting (ACO.X)
S&P/TSX Composite
$40,000
$30,000
$20,000
$10,000
FIVE-YEAR TOTAL RETURN ON $100 INVESTMENT
Compound Cumulative
Growth Rate Return
$271
$266
Class I Non-Voting (ACO.X)
22.0%
$271
Class II Voting (ACO.Y)
21.6%
$266
S&P/TSX Composite
11.9%
$176
$176
$300
$250
$200
$150
$100
$50
2008
2009
2010
2011
2012
2013
This graph compares the cumulative share owner return over the last five years of the Class I Non-Voting
and Class II Voting shares of the Company (assuming reinvestment of dividends) with the cumulative
total return of the S&P/TSX composite index.
ATCO SHARE OWNERSHIP
FOR PRESENT &
PROSPECTIVE OWNERS
It is important for prospective owners of
ATCO shares to understand that ATCO
is a diversified group of companies
principally controlled by Sentgraf, a Southern family holding company. It is
also important for present and prospective share owners to understand that
the ATCO share registry has both non-voting and voting common shares.
1968
70
75
80
85
90
95
2000
05
10
2013
5 2013 ANNUAL REPORT
RETURN ON INVESTMENT 6
INNOVATION AND
IMPROVEMENT AS
DRIVERS FOR 2014
In 2013, global economic growth was in low gear,
despite a cautiously optimistic outlook. Economic
development agencies around the world noted that
the advanced economies grew again, while continuing
financial sector repair and recognizing the volatility in
the emerging markets.
Ahead in 2014, a more stable economic climate is
expected to bolster the economies in North America
and the outlook for the global economy is also more
positive. A three-year stretch of very slow progress
could be broken in 2014. The world is keenly following
the U.S. shale gas industry and the changing face of
energy supply. The global liquefied natural gas (LNG)
industry is also growing and expanding into new
geographies.
Headlines in the media suggest that, in the long term,
the U.S. is set to become one of the world’s largest oil
and natural gas producers and is on its way to energy
self-reliance. In Canada, Australia and in parts of Africa,
large LNG projects are approaching or receiving their
final investment decisions. Global demand for LNG has
doubled since 2000 and is predicted to double again
by 2025, as consuming nations such as China increase
their imports of the clean-burning fuel. However, these
large projects are costly and often face technical and
commercial challenges.
For ATCO Structures & Logistics, this modestly
encouraging outlook means that the profitability of our
four main business lines should remain stable in 2014.
However, it is through improvement and innovation that
we can remain at the forefront of our industry and help
our customers achieve their business goals.
The cornerstone of our business in this economic
climate is to improve our current suite of services
and innovate to meet the growing expectations of
our clients. This will allow us to remain ahead of our
competitors and form stronger partnerships with our
customers. The combination of new products, improved
accommodations and integrated site services that solve
unique geographical challenges are ATCO’s advantage.
Harry G. Wilmot
Chief Operating Officer, Energy & Industrials,
ATCO Group & President,
ATCO Structures & Logistics
Canada’s LNG network on the west
coast is frequently in the spotlight,
with energy companies trying to raise
almost $50 billion for the projects
to proceed. ATCO’s solution for this
industry includes the construction
and management of a workforce
housing facility, coupled with facilities
operations and maintenance.
This ‘bundled’ offering provides
significant cost benefits and allows
our customers to focus on their main
business operations. New features
and innovative entertainment options
help with the challenge of attracting
and retaining qualified workers for
these projects to build and operate.
2013 has also seen significant budget
reductions in the global defense
sector, which poses significant
challenges for defense departments
to maximize asset availability without
increasing costs. As militaries
around the world strive to do more
without increasing their spending,
outsourcing of facilities maintenance
and operations work is on the rise.
ATCO’s support of the defense sector
from the operational side allows
our customers to reduce costs,
and arguably improve the quality
of asset maintenance. The private
sector offers significant advantages
in this regard, by reducing the time
required for military personnel to
attend to civilian tasks, employing
new technology and streamlining
operations. Additionally, innovation
can take place quicker and further
improve efficiency and effectiveness.
ATCO’s operations and facilities
maintenance business line relies
on decades of global experience
delivering projects for clients such
as NATO, the UN and Canadian and
U.S. defense departments.
ATCO Structures & Logistics will
continue to provide the best possible
solutions for our customers and
develop new products and services
for identified opportunities. As the
world continues on its journey of
steady progress, ATCO will create
value for current and prospective
customers worldwide and lead with
integrity and excellence.
ATCO Fold-A-Way metal buildings store and protect equipment for the operations at Vale’s Voisey’s Bay Nickel Mine in
Newfoundland and Labrador. Work for this contract is carried out by Torngait Services Inc., a joint-venture partnership
between ATCO Structures & Logistics and the Labrador Inuit Development Corporation.
7 2013 ANNUAL REPORT
INNOVATION AND IMPROVEMENT AS DRIVERS FOR 2014. 8
STRUCTURES
& LOGISTICS
ATCO Structures & Logistics provides complete infrastructure solutions
to customers worldwide, including workforce housing, innovative
modular facilities, construction, site support services, logistics,
operations management and noise & emission reduction solutions.
ATCO’s new manufacturing facility opened in October in
Kwinana, near Perth in Western Australia.
STRUCTURES & LOGISTICS 10
9 2013 ANNUAL REPORT
ATCO Structures & Logistics offers modular buildings, site and camp services and industrial
noise and emissions control solutions worldwide. With manufacturing facilities in North America
and Australia, a global supply chain, and operations on five continents, the company has the
expertise to rapidly deliver a turnkey solution anywhere it is needed.
ATCO Structures & Logistics
experienced a successful
year in 2013 with continued
success in sales and profitability in its
four core business lines worldwide:
Modular Structures, Lodging & Camp
Services, Logistics and Facilities
Operations & Maintenance, and
ATCO Emissions Management.
MODULAR STRUCTURES AND
LODGING & CAMP SERVICES
The Modular Structures business line
comprises the design, manufacture
and installation of workforce housing
facilities. The Lodging & Camp
Services business line includes
catering, housekeeping, retail,
maintenance and utility services. In
addition to large scale workforce
housing complexes, ATCO provides
modular fleet rental and sales.
and services in Western Australia,
which resulted in securing a major
modular construction project as well
as opening a new manufacturing
facility in Western Australia.
Australia
The Australian economy has seen
strong growth in the last decade,
largely due to the strong performance
of the resource sector industries.
The demand for workforce housing
to support those industries has
continued in 2013, despite a more
challenging year for the country’s
mining sector. In particular, ATCO has
seen steady demand for its products
In May 2013, ATCO Structures &
Logistics was awarded a contract
estimated at AUD$100 million to
design, manufacture, transport
and install 357 modular units for
the Chevron-operated Wheatstone
Project, one of Australia’s largest
resource projects. The contract
was awarded by Bechtel, Chevron’s
engineering, procurement,
construction and commissioning
11 2013 ANNUAL REPORT
STRUCTURES & LOGISTICS 12
ABOVE: Nancy Southern, Chair, President & CEO, ATCO Group, and Hon. Michael Mischin MLC, Attorney General and
Minister for Commerce, Western Australia, cut the ceremonial ribbon to open ATCO’s new manufacturing facility in Kwinana,
Western Australia.
LEFT: 2013 marks 15 years since the beginning of ATCO’s operation and facilities maintenance of the NATO Flight Training
Centre in Moose Jaw, SK. This military training site is home to Canada’s iconic Snowbirds flight demonstration team.
contractor. The units supplied
will be used to form a variety
of office complexes and free-
standing modular buildings on site
at Ashburton North, 12 km west
of Onslow in Western Australia,
including training centres, IT
buildings, guardhouses and medical
centres.
This is ATCO’s fourth major contract
award supporting LNG projects in
Australia. Between 2011 and 2013,
ATCO delivered three large workforce
housing projects for LNG facilities on
Curtis Island, Queensland, providing
more than 6,000 beds for workers
constructing LNG terminals.
To meet the increased demand in
manufacturing, ATCO opened a
new 150,000 sq. ft. (~14,000 sq.
m.) facility in October, located in the
city of Kwinana, near Perth. ATCO
anticipates that the facility will create
approximately 100 new jobs in the
Kwinana area within the first three
years of operation.
This new facility will supply
approximately 60 per cent of the
required units for the Wheatstone
Project. With the addition of this
facility, ATCO now operates six
manufacturing plants in Australia —
the other five are in Brisbane — and
has an expanded manufacturing
capability to help meet demand for
ATCO’s products and services.
In 2013, ATCO Structures &
Logistics diversified its business in
Australia with a contract to design
and supply modular offshore
processing facilities for the Australian
Department of Immigration and
Citizenship. ATCO was appointed
as the supply contractor for a
major component of the Nauru
Processing Facility, providing client
and staff accommodation and
major central facilities. In late 2013,
ATCO was awarded a contract
to provide 800-person modular
accommodations for the initial stage
of the Manus Island Procession
facility. This project is expected to be
completed by May 2014.
Woodland Cree First Nation. This
partnership will be supporting
camp services, which include
camp management, catering,
housekeeping, janitorial and
maintenance.
North America
ATCO Structures & Logistics’
business in North America
experienced strong performance
in 2013 with continued demand for
full service modular infrastructure
solutions. ATCO’s bundled service
offering provides the design,
manufacture and operation of a
facility, including site services, such
as fire response and wastewater
treatment.
In October 2013, ATCO was
awarded a contract to manufacture,
install and operate a 1,200-person
workforce housing facility for the
Shell Carmon Creek Project near
Peace River in northern Alberta. The
modular units for this project will be
manufactured at ATCO’s facilities
in Calgary, AB, and in Pocatello,
Idaho. Manufacturing work began
in the fourth quarter of 2013 and
completion is scheduled for the
second quarter of 2015.
The Shell Carmon Creek Lodge will
feature single occupancy bedrooms
with ensuite bathrooms, a stand-
alone gymnasium with racquetball
and squash courts, a running track
and separate weight training areas.
Operation of the lodge, including
food service, will be managed
by ATCO. The company will also
construct a 200-person open plan
office complex as part of the bundled
solution, and to service the site,
ATCO will build and maintain a
1,500-person wastewater treatment
plant.
To help deliver components of
this project, ATCO established a
joint-venture partnership with the
This year also saw the completion of
a 330-person lodge for Pengrowth
Energy, located near Bonnyville,
AB. The Pengrowth Lindbergh
Lodge houses workers supporting
the Lindbergh Project, a thermal oil
development.
As with all full service
accommodations solutions, ATCO is
operating the Pengrowth Lindbergh
Lodge, which includes catering,
janitorial and maintenance services.
In order to help build capacity in the
communities where ATCO operates,
the company reached out to the
Kehewin Cree Nation to create a
local, Aboriginally-owned business
that would provide services to
Lindbergh Lodge. This resulted in
the establishment of a commercial
grade laundry facility on the Kehewin
Cree reserve. In addition to providing
laundry services to the lodge, the
business owners will have the ability
to expand and take on new clients.
Also in the oilsands region, ATCO
completed its retrofit of Barge
Landing Lodge near Fort McKay, AB.
The upgraded complex now features
more management-style rooms and
Arctic corridors for more comfortable
movement around the facility during
inclement weather. The lodge, which
was built as a joint venture between
ATCO Structures & Logistics and the
Fort McKay First Nation, received
ISO 9001:2008 certification, an
international standard for quality
management. ATCO’s Creeburn
Lake and Barge Landing lodges are
the only ones in North America to
achieve this standard.
In addition to supporting companies
working in the oilsands region, ATCO
ATCO STRUCTURES & LOGISTICS
WORLDWIDE OPERATIONS
Hungary
Bosnia &
Herzegovina
Afghanistan
Madeira
South Africa
NORTH AMERICA
AUSTRALIA
With sales offices around the
world, and operations on five
continents, ATCO Structures &
Logistics has the expertise to
rapidly deliver turnkey solutions
anywhere they are needed.
Head office
Manufacturing facilities
Other locations
13 2013 ANNUAL REPORT
STRUCTURES & LOGISTICS 14
has been actively pursuing business
in Western Canada’s rapidly growing
LNG industry. In 2013, ATCO installed
a 600-person early works facility for
the Chevron/Apache-owned Kitimat
LNG project. ATCO is partnered with
the local Haisla First Nation for this
project.
In August 2013, ATCO completed
the first phase of the 2,586-person
Jansen Lodge, a housing complex
to support the construction of the
world’s largest potash mine. Located
north of Regina, SK, the first phase
of the facility included the turnover
of 500 rooms and the beginning of
lodge rooms operations.
To support Indigenous employment
for this project, ATCO partnered
with Saskatchewan Tourism’s
Ready to Work training program that
helps under-represented groups
transition from unemployment to
the possession of a successful
career. Members of local Aboriginal
communities completed the ATCO/
Saskatchewan Tourism employment
training program and were all
offered employment opportunities
at Jansen Lodge. Positions for
hire included receptionists, cooks,
camp attendants, and maintenance
personnel.
South America
In 2013, ATCO Structures & Logistics
sold its 50 per cent ownership
interest in Tecno Fast ATCO to its
joint-venture partner, Tecno Fast,
headquartered in Santiago, Chile.
The joint venture between ATCO
and Tecno Fast was established
in 1996 to supply the mining and
resource sector with workforce
accommodation.
ATCO sold its interest for
approximately CAD $124 million,
which includes all operational
assets consisting of space rental
and workforce housing fleet assets,
manufacturing facilities and offices in
Chile, Peru, Colombia and Brazil.
Africa
Africa is a new business market
for ATCO Structures & Logistics
and presents many opportunities
to support the resource sector. In
2013, ATCO established a presence
in Johannesburg, South Africa, to
evaluate business opportunities.
This early stage work is expected to
continue in 2014.
LOGISTICS AND FACILITIES
OPERATIONS & MAINTENANCE
Logistics and Facilities Operations &
Maintenance is a core business line
that provides a variety of services to
private and public sectors worldwide,
including defense operations.
North America
In February 2013, ATCO Structures
& Logistics was awarded a facilities
and operations management contract
with Defence Construction Canada
(DCC), which provides construction
contract management and related
infrastructure services to the
Department of National Defence
(DND). ATCO will provide site
services to 45 DND sites located in
southwestern and northern Ontario,
as well as the Greater Toronto Area.
The five-year contract began in April
2013 with an option to be extended
for an additional five years.
ATCO will manage DND facilities
such as armouries, vehicle
maintenance facilities and rifle
Barge Landing Lodge, constructed and operated in a joint-venture partnership with the Fort McKay First Nation, was retrofitted
in 2013 to respond to evolving customer needs. The 1,500-person lodge features upgraded rooms and Arctic corridors.
15 2013 ANNUAL REPORT
ranges, providing roads and grounds
maintenance, building safety,
equipment maintenance, document
management, environmental
management, capital planning and
range and training area control.
Also in 2013, ATCO was awarded a
two-year extension for the current
facilities maintenance contract
with the National Research Council
(NRC) Canada. ATCO’s mandate
is to provide building systems
servicing and annual certifications,
repairs and project capital work at
five different campuses, comprising
109 buildings. The NRC is Canada’s
premier organization for research
and development with 39 different
institute laboratories.
In Canada’s North, ATCO Structures
& Logistics continues to manage
recently acquired assets in Resolute
Bay, Nunavut. In 2013, ATCO
supported a Canadian Forces Arctic
survival training exercise that was
completed near Resolute Bay near a
site locally known as ‘Crystal City’.
Also in Nunavut, the Nasittuq
Corporation, a joint venture between
ATCO Structures & Logistics and
the Pan Arctic Inuit Logistics
Corporation, is providing site support
services at CFS Alert for the DND.
In Iqaluit, UQSUQ Corporation, a
joint venture owned by the Nunavut
Petroleum Corporation and ATCO,
continues to lease and operate a 79
million litre bulk fuel storage facility
and pipeline distribution system.
Middle East/Asia
ATCO Structures & Logistics,
through its wholly owned subsidiary
company, ATCO Frontec Europe,
continues to support the North
Atlantic Treaty Organization (NATO)
and its International Security
Assistance Force in Afghanistan.
Specifically, ATCO is providing
first responder services, including
fire and ambulance, at Kandahar
Airfield for NATO troops assisting the
Government of Afghanistan’s nation
rebuilding efforts.
ATCO is also supporting NATO and
European Forces Headquarters
in Sarajevo, Bosnia, providing
communications and information
services to approximately 2,500
troops.
ATCO EMISSIONS
MANAGEMENT
ATCO Emissions Management,
a division of ATCO Structures
& Logistics, provides noise
and air emissions control and
waste heat recovery systems for
power generation, oil and gas,
petrochemical and other industrial
sites worldwide.
On the industrial noise solution side,
ATCO Emissions Management was
awarded a contract for the supply of
an acoustic powerhouse building and
seven additional auxiliary buildings
to the Hess Newark Energy Center
in Newark, New Jersey. ATCO also
continued its work with the Calgary
Airport Authority in Alberta, to
provide acoustic buildings for the
airport’s expansion.
The gas turbine products business
line supplied filter house systems
for Xcel Energy’s Quay County
Generating Station in New Mexico,
USA. ATCO was also awarded
contracts to provide inlet systems
to the SaskPower QE Station
expansion in Saskatoon, SK, and
selective catalytic reduction systems
to General Electric’s Basin Electric
Pioneer and Lonesome Creek Plants
in Williston and Watford City, North
Dakota, USA. In Ghana, Africa, ATCO
was contracted to provide the bypass
stack/diverter damper systems for
Zakhem International’s Volta River
Authority Kpone power plant.
UQSUQ Corporation, a joint venture between Nunavut Petroleum Corporation
(representing the Nunasi Corporation and Qikiqtaaluk Corporation) and ATCO
Structures & Logistics, operates the 79 million litre bulk fuel storage facility in
Iqaluit. The facility meets the refueling needs of Iqaluit airport and supplies the
City of Iqaluit with fuel.
STRUCTURES & LOGISTICS 16
ATCO IN THE CANADIAN HIGH ARCTIC
A focus on Resolute Bay and Alert
1
1 ATCO employees in Resolute Bay refuel the CC-130J military aircraft,
commonly known as the ‘Hercules’. The photo is dated October 10, 2013,
with visibility of less than 500 metres and ground temperature of -28Cº.
2 Crystal City: ATCO supported the recent Canadian Forces Arctic Survival
training exercise. Knowledge of igloo construction can help prolong life
in extreme conditions.
3 The 345 cubic metre/day water treatment plant in Resolute Bay is
operated and maintained by ATCO. Located on a hill, low visibility and
drifting snow present accessibility challenges.
4 ATCO Structures & Logistics maintains the Resolute Incoherent Scatter
Radar in Resolute Bay. It is used by SRI International for basic research
in solar wind and observations of polar cap phenomena.
5 Resolute Bay, with a population of 200, is the second most Northern
community in Canada. The Inuit name for the town is Qausuittuq,
meaning “the place with no dawn”.
2
3
4
Alert
Resolute
Bay
5
ATCO has been present in
the High Arctic since 1989
with the acquisition of the
Narwhal Inn in Resolute Bay. This
small hamlet, home to 200 people, is
the second most northern community
in the world. It is the starting point
for any journey to the North Pole
and a necessary stop for all travel
to the Eureka research base and the
Canadian Forces Station Alert.
In 2013, ATCO continued to operate
three hotels in Resolute Bay and run
a fleet of construction vehicles. The
company maintains the 345 cubic
metre/day water treatment plant, the
Resolute Incoherent Scatter Radar,
and operates the 30-million-litre fuel
storage facility that supports the
needs of the community, including
the airport. ATCO also provides
ground services to Canadian Forces
aircraft including fuel supply and
cargo loading.
Twenty-two full-time employees
from across Canada rotate on a
schedule of eight weeks on and
four off. These men and women
work in an environment that can be
imagined by very few. Average winter
temperatures of -35°C (-72°C with
wind chill), and 24-hour darkness
in the winter, replaced by 24-hour
sunlight in the summer, add extreme
challenges to facilities operations and
maintenance work.
In 2013, ATCO supported the field
portion of the Canadian Forces
Arctic Survival training exercise that
was completed near Resolute Bay
at a training site known as “Crystal
City”. The training included building
shelters such as snow caves and
igloos, location signaling, and first aid
in extreme weather conditions.
Further north still, the Nasittuq
Corporation, a joint venture between
ATCO Structures & Logistics and
the Pan Arctic Inuit Logistics
Corporation, continues to provide site
support services at CFS Alert for the
Government of Canada’s Department
of National Defence. Alert is a
Canadian Forces Base and is the
world’s most northern permanently
inhabited community, only 817 km
from the North Pole. The services
provided by Nasittuq include facilities
maintenance, airfield operations,
food services, transport, logistical
and administrative support.
With activities in the Arctic on the
rise, so is the demand for remote
site services. ATCO’s nearly 25 years
of experience in this unique region
highlights the company’s ability to
deliver its best work well north of the
Arctic Circle.
17 2013 ANNUAL REPORT
ATCO IN THE CANADIAN HIGH ARCTIC 18
HELPING ALBERTANS
BUILD ALBERTA
In 2013, Alberta’s population grew by 3.5 per cent
(the highest growth rate since 1981) and its total
population is now more than four million. The Alberta
economy created an additional 71,900 jobs last year,
representing more than two-thirds of the jobs created in
Canada.
Assured access to a robust electrical transmission grid
is essential if Alberta is to continue its Canada-leading
economic growth. In 2013, Alberta set a record for peak
demand at 10,677 MW and significant annual increases
are predicted every year for the next 20 years. Updated
figures released in January 2014 by the Alberta Electric
System Operator project peak load to grow by 2.4 per
cent annually through 2032.
This growing demand, and the retirement of coal-
fired generating plants, will require 11,000 MW of new
generation to be built in the next 15 years. New and
cleaner forms of generation needed in Alberta will only
be built if investors are confident that transmission
exists to deliver their electricity to market.
There is a large, complex and interconnected system
that delivers the energy that Alberta businesses and
families rely on every day. Safe and reliable delivery
of these critical services requires long-term planning,
careful budgeting, as well as detailed engineering,
construction, and commissioning in advance of actual
need.
Investment in Alberta’s critical infrastructure has
begun, but there is a significant amount of work ahead
to ensure that we have a reliable system to support
Alberta’s economic growth for future generations.
Over the past three years, ATCO has invested a
record $5.6 billion in new utility infrastructure in the
province. The ATCO Utilities businesses, that build,
own and operate natural gas pipelines and electricity
infrastructure, undertook capital expenditures of $2.2
billion in 2013 and $2.1 billion in 2012 to ensure Alberta
is ready to meet the energy demands of this province’s
growing economy.
Siegfried W. Kiefer
Chief Operating Officer,
Power & Utilities, ATCO Group
19 2013 ANNUAL REPORT
Given the scope and scale of our
utility infrastructure investments, we
have applied the strictest discipline
to obtain competitively bid supply
contracts and select the best “value
for money” suppliers. This effort
has paid off with savings on our
largest transmission project in 2013,
the Hanna Region Transmission
Development project, completed in
July, on time, and $60 million (almost
10 per cent) under budget.
The project reinforced the reliability
of east central Alberta’s electrical
system and increased the system’s
capacity for load growth, allowing
for the addition of power generation
projects, including wind power. As
well, this project was the winner of
two prestigious environmental and
archeological stewardship awards,
reflecting our focus on cost efficiency
while maintaining the highest of
standards.
Within our Utilities, we constantly
strive for innovation and
improvements, assemble the
best expertise for every project,
and reorganize our teams to
provide better focus on serving
our customers. You will find more
about ATCO Electric’s initiatives in
the narratives by our Utilities in this
annual report.
The challenges of growth do not
diminish our obligation to safely
serve all of our existing customers.
We have aging systems and they
need attention to ensure reliability
and safety. A prime example is the
Alberta Utilities Commission’s recent
approval of our Urban Pipeline
Replacement Project, which will
replace and relocate our high-
pressure natural gas pipelines,
located in densely populated areas
of Calgary and Edmonton, into
Transportation Utility Corridors
surrounding both cities.
Over time, development has
leapfrogged over the existing high-
pressure gas network. Now, Alberta’s
two largest cities will be served by a
new pipeline system located away
from people and equipped with inline
inspection capabilities that were not
available when the existing networks
were built.
It is important to note that public
input was a critical component of
the project’s approval. ATCO has a
strong track record for engaging with
communities and customers. Our
approach to community consultation
has allowed our projects to proceed
with the best interests of all those
involved taken into consideration.
While much is being accomplished
in terms of new infrastructure in the
province, there is still more work to
do. Moving forward, as a province,
we must carefully examine our
approach to utility oversight and
regulation to make sure we are
achieving outcomes that benefit
Albertans, support our growing
province in a well-managed way, and
deliver the best value to customers.
Alberta has enjoyed good regulatory
oversight but we must continue to
improve in order to reduce costs and
process times.
For example, our Utilities should be
permitted to simultaneously carry
out projects with city utilities in order
to minimize disruptions. We have
a solid relationship and attempt to
co-ordinate where possible with
city utilities. However, insufficient
authorized capital investment by
regulators has, at times, resulted
in city utilities tearing up streets for
waterworks at one time and ATCO
doing work at the same location
shortly thereafter. This is inefficient,
adds costs and causes unnecessary
disruption. Adequate funding must
be authorized for co-ordinated
replacement in order to minimize
disruption, maximize efficiency, and
reduce costs for our customers.
In a fast-paced economy, timeliness
of decisions is also critical. We have
exhaustive regulatory processes
which require an extensive amount
of time to connect large industrial
customers to the electrical grid.
These delays will slow, if not stall,
Alberta’s economy and investment
if companies believe they will be
unable to power up operations at the
planned time.
Alberta is in an enviable position.
How we tackle infrastructure issues,
both with new growth and replacing
aging systems, is critically important
to the province’s future prosperity.
We must not only do things right,
we must ensure that we do the right
things—everything from planning
and approvals, to design and
construction—to ensure the safe,
reliable and cost-effective delivery
of energy to our customers.
HELPING ALBERTANS BUILD ALBERTA 20
21 2013 ANNUAL REPORT
UTILITIES
The Utilities business segment includes ATCO Electric,
ATCO Gas and ATCO Pipelines. These companies are
focused on the safe, reliable and efficient transportation
and distribution of natural gas and electricity.
Ryan Zaichkowsky, Apprentice Power Line Technician, and Brad Gerbrandt, Journeyman Power
Line Technician, gear up to install a gang switch on a distribution line near Grande Prairie, AB.
UTILITIES 22
ATCO Electric builds, owns and operates electrical transmission and distribution facilities in east-
central and northern Alberta. It delivers safe, reliable electricity to nearly 220,000 farm, business
and residential customers in 245 communities. By supplying power to large industrial and oilfield
customers, ATCO Electric supports development of Alberta’s energy-rich industrial sector.
ATCO’s electrical system
includes approximately
11,000 km of transmission
lines and 68,000 km of distribution
lines. ATCO Electric also maintains
nearly 5,000 km of distribution lines
on behalf of farmer-owned Rural
Electrification Associations.
In 2013, ATCO Electric formed
distinct Transmission and Distribution
divisions to better align with industry
and the regulatory environment. The
Transmission Division constructs,
operates and maintains transmission
facilities, such as large towers, power
lines, transformers and substations,
that transport high voltage
power from generation plants to
substations. The Distribution Division
constructs, operates and maintains
the lower-voltage distribution lines
and facilities that deliver power from
substations to customers’ homes,
farms and businesses.
ATCO ELECTRIC
TRANSMISSION DIVISION
In 2013, the Transmission Division
invested $1.4 billion in new facilities
and upgrades to meet Alberta’s
growing demand for electricity
and replace aging infrastructure.
The investment required not only
adherence to stringent procurement
and cost monitoring practices but
unprecedented consultation with
landowners, First Nations and other
affected Albertans. The division
is focused on the timely and cost
effective construction, maintenance
and operation of transmission
facilities while adhering to socially
and environmentally responsible
practices.
The Transmission Division created
an in-house construction crew
specialized in building transmission
facilities. The crew includes 73
employees working at three key
locations: Bonnyville, Hanna and
Conklin/Fort McMurray.
Work continues on the $1.8-billion
Eastern Alberta Transmission Line
(EATL) project, a 485 km, 500-kilovolt
(kV) direct current line, with two
converter stations, between the
Gibbons-Redwater area and Brooks.
EATL, the largest project in ATCO
history, will reinforce the backbone
of Alberta’s electricity grid and is on
schedule for completion in late 2014.
By the end of 2013, more than 55
per cent of the project’s nearly 1,400
towers were assembled and more
than 277 were erected.
2013’s largest completed project
was the Hanna Region Transmission
Development (HRTD) project, a $650
million reinforcement of the electrical
grid in southeast Alberta. Coming in
on time in July 2013, and $60 million
under budget, HRTD comprises
more than 335 km of 240 kV and
144 kV lines, six new substations and
upgrades to 14 existing substations.
(For more on HRTD, see page 27.)
The $600 million North East
Transmission Development project
was also completed in 2013,
providing necessary reinforcement
to the electrical grid in Alberta’s
northeast region. Work included the
installation of one of Alberta’s first
Phase Shifting Transformers (PST) at
Livock, near Fort McMurray. The PST
relieves constraints on the existing
transmission system and ensures
a secure and reliable supply of
electricity.
In 2010, the Alberta government
mandated the Alberta Electric
System Operator to develop a
Competitive Process for Critical
Transmission Infrastructure
projects that was approved by the
Alberta Utilities Commission in
February 2013. This new initiative
means that in addition to direct-
assigned transmission projects,
the Transmission Division now also
competes with other companies for
new critical transmission projects
across Alberta. The Fort McMurray
West 500 kV Transmission Line is the
first project under the competitive
process.
Separating the Transmission Division
from the Distribution Division better
positioned the company for the
Powerline Technician Team Lead, Keith Garbitt, works on constructing a line for an oilfield customer near Spirit River, AB.
23 2013 ANNUAL REPORT
ATCO ELECTRIC 24
competitive bidding process to
build, own and operate large-scale
transmission infrastructure projects.
To further prepare the company to
effectively compete for transmission
projects, the Transmission Division
also initiated an Asset Management
program to build efficiencies,
improve processes and streamline
operations for the life cycle of all of
the Transmission Division’s assets.
The Transmission Division continued
its focus on health and safety in
2013 with the introduction of a new
Health, Safety and Environment
(HSE) management system to better
manage HSE incidents. The system
gives every Transmission Division
employee the ability to record HSE
incidents and view reports, giving
everyone in the company more
accountability and visibility to the
division’s safety record.
The Transmission Division enhanced
its Crop Protection Plan practices
and added six new mobile cleaning
stations to its fleet to be used in the
field to wash and sterilize vehicles
and equipment to help curb the
spread of club root and other soil-
borne diseases.
ATCO ELECTRIC
DISTRIBUTION DIVISION
The Distribution Division continued its
focus on reinforcing system reliability
and meeting customer demand. In
2013, the division invested $386
million in new infrastructure and
upgrades to meet the growing
demand for safe, reliable electricity.
A large portion of the increase
in demand occurred in Alberta’s
northeast, where oil and gas continue
to drive the economy.
The Distribution Division also
established a number of sustainable
operational efficiencies aimed at
further meeting customer needs
and streamlining work processes
for employees. One efficiency
project involved improving response
to underground locate requests.
The operation was centralized in
2012 and, in 2013, new screening
measures reduced the number of
trucks dispatched, saving time for
customers and employees.
Meeting the needs of municipalities
was also a key focus. In 2013,
the Distribution Division renewed
franchise agreements with 28
communities, securing ATCO Electric
as the electricity distributor for the
next 10 years.
In Stettler and Grande Prairie, the
Distribution Division opened new
energy-efficient service centres.
The buildings reduce energy and
water consumption by 55 and 30
per cent, respectively. They include
design features such as a green roof
and rain-water collection systems.
The Grande Prairie facility replaces
three other buildings that housed
employees, creating efficiencies for
staff and streamlining service for
customers.
The Distribution Division welcomed
4,100 new farm customers after
the purchase of the Manning, Elk
Point and Peace Country Rural
Electrification Associations (REA)
were finalized. Members of the
Manning and Elk Point REAs voted in
favour of selling their assets to ATCO
Electric in 2012. The Peace Country
REA vote was held in January 2013.
Transmission Division President, Sett Policicchio, and Quyen Nguyen, Vice President, HVDC Projects, survey a
portion of the Hanna Region Transmission Development project.
25 2013 ANNUAL REPORT
The Alberta Utilities Commission and
the Rural Utility Division approved
all three sales in the fall of 2013. The
sale of the Delburne West REA was
approved in early 2014, following a
vote in favour by its members in June
2013.
2013 marked the first year the
Distribution Division began offering
light-emitting diode (LED) streetlights
as an option for new residential and
stand-alone streetlight installations.
As part of its commitment to
environmental stewardship, the
Regional Municipality of Wood
Buffalo made LEDs the new standard
for streetlights in Fort McMurray in
2013. The municipality opted for
a full-scale conversion of existing
high-pressure sodium streetlights. In
June, the Distribution Division began
work on the conversion project—the
first of its kind for the company.
Five months later, more than 4,200
streetlights were converted to LED.
An additional 280 decorative and
specialty streetlights are scheduled
for replacement in late 2014.
Each new dark sky-certified LED
streetlight provides safe street
lighting with less wasted light.
They use 55 per cent less energy
compared to traditional high-pressure
sodium lights, reducing carbon
dioxide emissions by more than 350
pounds per fixture per year.
As always, public safety is critically
important to ATCO Electric. The
Distribution Division continued its
support of the Joint Utility Safety
Team, a consortium of electricity
distributors that share the goal of
raising awareness of power line
safety. The Distribution Division also
targeted farm customers with the
annual farm safety campaign and
reached out to school children in
31 communities with ATCO Energy
Theatre’s educational live theatre
performances.
ATCO ELECTRIC SERVICE AREA
ATCO Electric serves the area
broadly identified on this map,
with the exception of a small
number of farm customers served
by one self-operating Rural
Electrification Association.
Fort
McMurray
Grande Prairie
Bonnyville
St. Paul
Vegreville
Edmonton
Lloydminster
Jasper
Red Deer
Stettler
Drumheller
Calgary
Hanna
Brooks
MAJOR ELECTRIC
TRANSMISSION
PROJECTS
North East Transmission
Development
Central East Transmission
Development
Eastern Alberta
Transmission Line
Hanna Region Transmission
Development
ATCO Electric Distribution
service area
ATCO ELECTRIC 26
HANNA REGION TRANSMISSION DEVELOPMENT
PROJECT Completed On Schedule and Under Budget
1
4
5
1 ATCO Electric constructed six new substations
for the Hanna Region Transmission Development
(HRTD) project including the Oakland substation
near Hanna, AB.
2
2 With the aid of a helicopter, crews string
transmission wires along 240kV steel lattice towers
near Hanna.
3 A 240kV steel lattice tower is erected on the
Anderson-Oakland section of the HRTD project.
4 Crews install an artificial nesting platform for
ferruginous hawks in the Bullpound Pasture
near Hanna.
5 Reels of wire on the site for stringing at the
Anderson-Oakland section of the HRTD project.
6 The camp in Hanna that housed the project’s
workers is now being used for the Eastern Alberta
Transmission Line project.
T he $650 million Hanna Region
Transmission Development
(HRTD) project, required
to reinforce the electrical grid in
the region and allow for future
growth, was completed on time
in July 2013 and $60 million
under budget. To complete the
project, the Transmission Division
constructed and strung 335 km of
240 kV and 144 kV transmission
lines (consisting of 676 steel lattice
towers, 266 H-Frames and 330
monopole structures), built six new
substations and upgraded 14 existing
substations. Public consultation for
HRTD included 11 open houses and
about 2,300 individual consultations.
Sixty per cent of the HRTD project
was constructed in environmentally
sensitive areas such as protected
pasture, native grasses and
wetlands. The HRTD Environmental
Protection Plan ensured every
phase of construction avoided or
reduced environmental impacts. For
instance, a significant percentage
of construction was scheduled to
occur while the ground was frozen
to reduce soil degradation and soil
structure damage and to avoid
disturbing select wildlife species.
Field teams used a mobile app that
provided customized information
about environmental regulations
for specific land parcels. The
Transmission Division constructed
dozens of artificial nesting platforms
to assist in the recovery of southern
3
6
Alberta’s ferruginous hawk
population.
And through the implementation
of the Historical and Archeological
Resources Protection Plan, 145
historical resources were discovered
and reported to Alberta Culture,
including building foundations,
ceremonial relics, stone tools,
farm sites and fossils. Prior to
the construction of the HRTD
project, Alberta Culture had only
five historical resources on record
for the region. The Historical and
Archeological Resources Protection
Plan was recognized with two
awards in 2013 for increasing
public awareness and implementing
best practices in preserving
Alberta’s historical resources: the
Archeological Society’s Richard G.
Forbis award and the Association of
Professional Planners Institute Award
of Merit.
Reclamation and cleanup of the
right-of-ways were completed in
November 2013. Of the three work
camps built to house construction
crews in Oyen, Consort and Hanna,
the Oyen and Consort camps have
been removed and the power and
utility hookups donated to those
communities. The Hanna camp
remains open to house crews
working on the Eastern Alberta
Transmission Line project, but the
power and utility hookups will also be
donated to the community once the
project is complete.
27 2013 ANNUAL REPORT
HANNA REGION TRANSMISSION DEVELOPMENT PROJECT 28
ATCO IN THE NORTH
Inuvik
Cambridge
Bay
Iqaluit
Anchorage
Whitehorse
Yellowknife
ATCO Structures &
Logistics Operations
Nasittuq Sites
Alaska Radar
System Sites
Uqsuq Site
Major Communites Served
by Yukon Electrical
1 Old Crow
2 Beaver Creek
3 Stewart Crossing
4 Keno
5 Pelly Crossing
6 Destruction Bay/
Burwash Landing
7 Carmacks
8 Ross River
9 Haines Junction
10 Whitehorse
11 Carcross/Tagish
12 Teslin
13 Swift River
14 Watson Lake
15 Lower Post, B.C.
138 kV
Transmission Lines
Other Distribution
Lines
1
Inuvik
YUKON
3
7
2
6
9
4
5
8
10
Whitehorse
NORTHWEST TERRITORIES
20
19
Yellowknife
13
11
12
14
15
16
18
17
23
21
22
Major Communities Served
by Northland Utilites
16 Trout Lake
17 Dory Point
18 Fort Providence
19 Yellowknife
20 Wekweeti
21 Kakisa
22 Enterprise
23 Hay River
29 2013 ANNUAL REPORT
ATCO UTILITIES IN THE NORTH
ATCO, through its northern companies Northland Utilities and Yukon Electrical, builds, owns
and operates generation, transmission and distribution facilities in the Northwest Territories and
Yukon. Combined, these companies provide safe, reliable electricity to 28,000 customers in
28 communities, from south of the Yukon border to north of the Arctic Circle.
NORTHLAND UTILITIES
Northland Utilities is a full-service
electrical company providing retail,
distribution, transmission and
generation services to customers
since 1951. Its ownership is shared
between Denendeh Investments
(14 per cent) and ATCO Electric.
There are two operating divisions:
Northland Utilities (NWT) Limited
and Northland Utilities (Yellowknife)
Limited serving more than 11,000
customers in nine communities.
In 2012, Northland Utilities
(Yellowknife) completed the first
stage of a light-emitting diode (LED)
streetlight conversion project. The
first project of its kind for a major
city in northern Canada, the LED
technology provides increased
energy efficiency and will reduce the
costs associated with equipment
replacement and maintenance for
the city.
Based on the success of the first
stage of the project, the City of
Yellowknife has requested that
the project be accelerated with
more than 1,500 street lights to be
converted by 2016.
Both Northland Utilities companies
have filed a proposal to the
Northwest Territories Public Utility
Board (PUB) to continue offering
net metering to its customers.
Net metering allows customers
who generate their own electricity
from renewable sources to export
their surplus electricity back to the
distribution grid in exchange for
energy credits.
The proposal is based on the results
of a three-year pilot program that
concluded in 2013 and is currently
before the PUB awaiting approval.
YUKON ELECTRICAL
Yukon Electrical has been providing
electrical service for more than
a century. The company began
operations in 1901 when it started
generating electricity for the residents
of Whitehorse using a wood-fired,
horizontal piston steam engine. The
company serves more than 17,000
customers in 19 communities from
south of the Yukon border to north
of the Arctic Circle. The main office
and service centre are located in
Whitehorse.
The Whistle Bend subdivision in
the city of Whitehorse is the largest
residential land development project
in the area. After investing $5 million
to build a new substation to serve the
area, Yukon Electrical also partnered
with the City of Whitehorse to explore
a solar thermal energy storage
system. The system would use solar
collectors to heat water which is then
pumped deep underground where it
is stored for use in the winter.
Yukon Electrical completed a
feasibility study for the project late
in the year and has presented the
findings to the City of Whitehorse.
In May 2013, Yukon Electrical filed
a general rate application to the
Yukon Utilities Board. Hearings
regarding the application were held in
November and the application awaits
a decision.
A Northland Utilities Powerline Technician inspects a recently installed LED
streetlight in Yellowknife, NWT.
ATCO IN THE NORTH 30
ATCO Gas has been heating homes and warming communities
across Alberta for more than a century. Today, ATCO Gas delivers
safe, reliable and cost-effective natural gas to more than 1.1 million
customers in nearly 300 Alberta communities.
A s Alberta’s largest natural
gas distribution company,
ATCO Gas builds, operates
and maintains nearly 40,000 km of
natural gas distribution pipelines.
ATCO Gas provides 24-hour
response to natural gas emergencies
in its service territory. Through the
ATCO Blue Flame Kitchen and
ATCO EnergySense, ATCO Gas also
provides safety and energy efficiency
programs and services.
COMBINED HEAT AND POWER
In 2013, ATCO Gas enhanced its
commitment to the environment
by introducing a program to assist
commercial and institutional
customers interested in implementing
the use of combined heat and power
(CHP) technology. CHP uses natural
gas as a primary fuel source to
generate both heat and electricity
simultaneously. This increases energy
efficiency, lowers facility operating
costs and reduces greenhouse gas
emissions. The program is being
partially funded by the Climate
Change Emissions Management
Corporation and is expected to
reduce 60,000 tonnes of greenhouse
gas emissions over the 15-year life of
the project.
ATCO Gas is using this technology
in its new energy-efficient operations
centre in Okotoks. Opened in
September 2013, the centre is one of
the first commercial buildings of its
size in Alberta to feature the small-
scale use of CHP technology. The
natural gas-fuelled heat and power
generation system will generate 25
kilowatts of electricity as well as
deliver exhaust heat to the building’s
boiler heating system.
COMBINED HEAT & POWER (CHP) UNIT
NATURAL
GAS IN
EXHAUST
GAS HEAT
EXCHANGER
OVERALL
ENERGY EFFICIENCY
ENGINE
ELECTRICITY
GENERATOR
ELECTRICITY OUT:
provides power
to the building
85%
CHP
(combined
heat & power)
electricity
heat
55%
CONVENTIONAL
(separate
heat & power)
heat recovery
HOT WATER OUT
heats building and
provides hot water
COLD
WATER
IN
ABOVE: ATCO Gas is helping commercial and institutional customers implement CHP technology, which uses natural gas as
a primary fuel source to generate heat and electricity simultaneously, increasing energy efficiency.
LEFT: Chris Blunt, ATCO Gas Engineer, tours ATCO Gas’s new energy-efficient operations centre in Okotoks, AB, one of the
first commercial buildings of its size in Alberta to feature the small-scale use of Combined Heat and Power (CHP) technology.
31 2013 ANNUAL REPORT
ATCO GAS 32
OPERATIONS AND GROWTH
In 2013, ATCO Gas completed
its first year of operations under
Performance Based Regulation. This
new rate regulation for distribution
utilities, implemented by the Alberta
Utilities Commission, came into effect
on Jan. 1, 2013. The new regulatory
environment creates incentives for
ATCO Gas and all distribution utilities
to continue working hard to identify
long-term sustainable efficiencies.
In support of Safe Digging Month, ATCO Gas led the Alberta Common
Ground Alliance’s live excavation demonstration at the Southern Alberta
Institute of Technology.
33 2013 ANNUAL REPORT
In June, severe flooding swept
through southern Alberta, causing
the worst natural disaster in the
province’s history. ATCO Gas
employees mobilized quickly to assist
people in affected communities and
minimize damage to its distribution
system. (See page 37 for more
on ATCO Gas’s emergency and
operational response efforts.)
ATCO Gas experienced another year
of strong growth, adding almost
23,000 new customer connections.
Significant progress was made on its
capital infrastructure program, which
is focused on improving system
integrity, maintaining service reliability
and ensuring public safety.
INVESTING IN CAPITAL
INFRASTRUCTURE
In 2013, ATCO Gas’s automated
meter reading project was virtually
completed. Since 2011, ATCO Gas
has replaced or retrofitted more
than 1.1 million natural gas meters
with encoder receiver transmitter
devices, which wirelessly transmit
usage data to mobile collectors. This
allows ATCO Gas to read gas meters
without entering customers’ homes,
yards or businesses, improving
billing accuracy, employee safety and
customer convenience.
Work also continued on steel and
plastic mains replacement programs.
In 2013, ATCO Gas invested almost
$53 million in the replacement of
aging natural gas mains and services
to ensure the safety and reliability of
its pipeline network.
FOCUSED ON NATURAL GAS
SAFETY
ATCO Gas carried on its commitment
to public safety through its annual
carbon monoxide awareness
campaign and promotion of safe
digging practices around natural
gas pipelines. In 2013, ATCO Gas
provided more than 282,000 locates
to support safe digging practices,
an 11 per cent increase from the
previous year. ATCO Gas led the
Alberta Common Ground Alliance’s
live excavation demonstration for
local media at the Southern Alberta
Institute of Technology in support of
Safe Digging Month.
ATCO Gas also began promoting
natural gas as a safe and cost
effective alternative for construction
heat.
ATCO Energy Theatre continued
to teach young students important
safety lessons about natural gas and
electricity. It performed to more than
18,000 students in 2013 and has
reached more than 97,000 students
since it began in 2007. In 2013, ATCO
Energy Theatre launched interactive
games, an online resource that helps
expand its safety education in both
classrooms and homes.
IN THE COMMUNITY
ATCO Gas works with first
responders in emergency situations
involving natural gas to ensure
our communities stay safe. ATCO
Gas and ATCO Electric are strong
supporters of firefighters and fire
departments across Alberta. In 2013,
this included sponsorship of Fire
Safety Week, Disaster Forum and
the Alberta Fire Chiefs’ Association
Conference, investments in local
volunteer fire departments and
development of new community
emergency preparedness guides for
homes.
RECOGNIZED FOR EXCELLENCE
The Drake Landing Solar Community
in Okotoks received the prestigious
2013 International Energy Agency’s
Solar Heating and Cooling
Programme Solar Award, which
recognizes significant achievements
in solar thermal market development
and reductions in market barriers.
ATCO Gas was involved in the
ATCO GAS SERVICE AREA
Fort
McMurray
Grande Prairie
Edmonton
Lloydminster
Jasper
Red Deer
In the area broadly
identified on this map,
ATCO Gas serves
more than 1.1 million
customers in almost
300 communities.
Calgary
Lethbridge
ATCO Gas
service area
ATCO GAS 34
development of Drake Landing in
2007 and has acted as managing
partner and facility operator since
that time.
ATCO Gas received six
communications awards from
the International Association of
Business Communicators and the
Canadian Public Relations Society
for its centennial celebration,
including the IABC Gold Quill Award
of Excellence in Communications
Skills, Publications—an international
award—for its commemorative
centennial publication.
ATCO ENERGYSENSE
ATCO EnergySense offers energy
assessments for ATCO Gas and
ATCO Electric business customers as
well as energy efficiency advice for
residential customers.
The ATCO Energy Education Mobile,
an interactive classroom on wheels,
continued to teach students and
the public about Alberta’s energy
resources and how to use them
wisely. Since its inception in 2010,
the ATCO Energy Education Mobile
has visited 170 Alberta communities
and engaged more than 59,000
participants.
ATCO EnergySense continued to
offer commercial and municipal
energy assessments to help
customers improve their bottom
lines and reduce their impacts on
the environment, as well as educate
Alberta homeowners about the
benefits of energy efficiency via its
website and print publications.
ATCO BLUE FLAME KITCHEN EXPANDS REACH
ATCO Blue Flame
Kitchen, a service
of ATCO Gas, has
provided Albertans with natural
gas safety information, energy
efficiency tips and household
advice related to food,
cooking, recipes, stain removal
and other household problems
for more than 80 years. The
service has been expanded
to include cooking classes
and educational programs for
participants of all ages.
In 2013, ATCO Blue Flame
Kitchen focused on bringing
technology into the kitchen,
meeting today’s families in the
digital world, where they look
up recipes online and search
for kitchen tips and how-to
videos on YouTube.
build customer engagement,
and a new text-based live chat
service is connecting visitors
to the website with the Answer
Line’s home economists. A
new ATCO Blue Flame Kitchen
app for iPhone and iPad allows
users to look up and save
recipes, generate shopping
lists and chat live with the
Answer Line team.
Two new cookbooks were
released in 2013 – Everyday
Delicious and Holiday
Collection – both of which
were bestsellers. To keep pace
with consumer expectations,
nutritional information and even
more photos have been added
to the cookbooks, which have
a strong history with Alberta
families.
ATCO Blue Flame Kitchen
launched a YouTube channel,
producing how-to videos on
a wide range of topics, from
how to peel a kiwi with a spoon
to how to carve the holiday
turkey. Pinterest and Twitter
accounts are being used to
Community engagement
remains a core value at ATCO
Blue Flame Kitchen, as seen in
the continued success of the
award-winning Kids Can Cook
school program in Calgary, in
which more than 1,700 Grade
5 and 6 students participated.
In 2013, the Calgary Learning
Centre began a partnership
with Soup Sisters and Made
by Momma to provide chef-led
expertise in their charitable
work, helping to feed families
and those in need in the
Calgary region.
The professional home
economists continued their
community outreach in
Edmonton and surrounding
areas through numerous
speaking engagements to a
wide range of audiences –
including university students
and military families – and led
cooking classes through Metro
Continuing Education.
New ventures in 2013 included
a partnership with Alberta
Health Services to launch
a new location for cooking
classes at Calgary’s South
Health Campus, as well as
opening a brand new ATCO
Blue Flame Kitchen Café
in Calgary’s ATCO Centre
building.
We are
connecting:
23,000
Answer Line
inquiries
14,000
Monthly
newsletter
subscribers
17,000
Cookbooks sold
31,385
ATCO Blue
Flame Kitchen
YouTube video
views
792
Media
appearances
in Alberta
6,485
Visitors to
Calgary Learning
Centre
996,933
Website page
views
ATCO Gas Distribution Operators – Field, Evan Kostiuk (left) and Dave Swan, undertake a plastic mains
replacement project east of Sherwood Park, AB.
35 2013 ANNUAL REPORT
ATCO BLUE FLAME KITCHEN 36
2013 ALBERTA FLOODS
ATCO RESPONDS
The flooding caused major damage to
infrastructure in High River including this
completely destroyed roadway.
Tom McNeill, Distribution Operator, Field
- Okotoks, (left) and A.J. Molloy, Junior
Distribution Operator - Field, Okotoks,
evacuated a number of residents, including
these young people, to higher and safer ground.
37 2013 ANNUAL REPORT
2
1 Debbie Allard, Distribution Operator - Field, (left) and Andy Korns,
Distribution Operator - Field, checked for potential gas leaks caused
by the floods in Canmore, AB.
2 ATCO Gas employees inspect a gas main exposed along a roadway
in Dead Man’s Flats, near Canmore.
3 Many homes in High River, AB, were swallowed by flood water.
More than 150 people were rescued from rooftops.
4 ATCO Power’s asset optimization team relocated to its emergency
back up location during the floods to ensure continued management
of the power output from ATCO’s power generating stations.
5 John Ell, President, ATCO Power and Anders Renborg, Chairman of
1
ATCO Powers’ Crisis Management Committee, met daily to ensure ongoing
regular daily operations of generating assets in Southern Alberta.
In late June of 2013, southern
Alberta was hit by the worst
flooding in the province’s history.
After heavy rainfall earlier in the
month had left the ground saturated,
a giant low pressure weather system
filled with moisture moved in over the
Rocky Mountains from the Pacific
coast and stalled over the foothills in
the southern part of the province. It
dumped more than a month’s worth
of precipitation in just 48 hours – 250
mm in some areas.
With the ground already saturated
and this massive amount of rain
adding to the snow melt that was
coming down from the mountains,
the water had no place to go. Water
levels began to rise rapidly and
overflowed the banks of the many
streams and rivers, including the
Bow and Oldman rivers, comprising
the Bow Valley Basin. The basin
stretches from Canmore at the foot
of the Rocky Mountains to Calgary
and High River and eventually to the
South Saskatchewan River that runs
through Medicine Hat in southern
Alberta. It touches 34 municipalities
and three First Nations, making it the
most populous river basin in Alberta.
By the time the flood waters
subsided, they had engulfed more
than 55,000 sq. km of land—almost
twice the size of Vancouver Island.
Thirty-three communities had
declared states of emergency, 28
emergency operations centres
were put into action, and more than
100,000 people were forced to leave
their homes.
With many of ATCO’s customers,
communities and employees under
water, the company mobilized to
respond in a number of ways:
• as a utility provider charged with
delivering essential services to
homes and businesses safely and
reliably;
• as a company with experience
rapidly deploying critical
infrastructure and services to some
of the worst natural disaster zones
around the world;
• as an employer with a family of
employees across the province
either directly affected by the
flooding or ready to step up to help
their coworkers; and,
• as a member of these communities,
some for more than 100 years,
committed to helping them get
back on their feet.
The ATCO teams were on the ground
from the beginning, working with
local and provincial authorities to
ensure that the delivery of natural
gas and electricity to affected
communities was being managed
safely and was aligned with all
aspects of the emergency response.
3
5
4
ATCO Gas employees were on
the scene in some of the most
devastated communities to monitor
ATCO’s distribution pipelines and
facilities and to shut down delivery
to homes and businesses, if needed,
to ensure that natural gas appliances
damaged by the floods didn’t pose
a risk. In locations where lines had
been damaged, employees set up
temporary emergency facilities to
continue delivering natural gas when
it was safe to do so.
At the request of the RCMP, ATCO
Gas employees assisted with
evacuating residents and with
search and rescue efforts. They also
attended local Emergency Operations
Centre meetings to ensure that all
aspects of the company’s response
were as effective as possible.
As the waters started to recede,
ATCO Gas employees were among
the first back into these communities
with other emergency personnel,
inspecting every single natural gas
appliance in tens of thousands of
homes and businesses, searching
for leaks and ensuring it was safe
for people to return. At the same
time, the team was mobilizing to
repair damage to the low-pressure
natural gas pipelines and arrange for
temporary service while the repairs
were taking place to get people back
into their homes as soon as possible.
Throughout the crisis, ATCO Gas
employees were on the phones,
online or in homes answering
questions and assisting people with
safely relighting their natural gas
appliances.
Meanwhile, ATCO Pipelines Control
Centre employees closely monitored
the company’s high-pressure natural
gas lines and facilities in the region
while operations staff worked around
the clock to protect facilities from
damage relating to the rising flood
waters.
Behind the scenes, the ATCO
I-Tek team worked to ensure that
while clients were dealing with the
effects of the floods, they would
have reliable and ongoing access
to their business critical technology
applications and infrastructure to
maintain their operations.
ATCO Structures & Logistics has
experience around the world
delivering critical infrastructure and
services in the wake of some of
the worst natural disasters. Most
recently, the company provided living
accommodation, offices, kitchens,
medical facilities and related services
during disasters in Haiti and Chile.
So, when there was a crisis in its own
backyard, the company jumped into
action.
One of the worst hit areas was the
Siksika First Nation just south
7
8
6
of Calgary. Many of the residents
watched as their homes were literally
washed away in the flood waters.
Working for the Government of
Alberta, ATCO Structures & Logistics
constructed, installed and continues
to operate temporary relief shelters
for the entire Siksika community.
The temporary community includes
three lodges built in six weeks which,
together, provide almost 300 beds
and living accommodations for the
Nation.
The company also constructed
a new modular town centre for
the community of High River and
three temporary fire halls for the
municipality of Foothills.
ATCO Power’s Oldman hydro
generation facility in southern Alberta
was also impacted by the floods with
the surge of water from the Oldman
River. Although the facility only
experienced some minor leakage,
the emergency preparedness
and business continuity plan was
initiated. This was vital in directing
both staff and external parties to
quickly manage the situation and be
able to provide power again within a
few days.
As people returned to their homes
and businesses, the true extent of
the damage and devastation became
clear. Many would find several feet of
water, silt and raw sewage covering
everything they owned. The concern
now was that as tens of thousands of
residents began the daunting process
of reclaiming their lives, they could
be exposed to the toxic mould and
bacteria that had started growing in
the stagnating water.
With more than 80 years of
experience providing household
advice and support to Albertans,
the ATCO Blue Flame Kitchen team
became an integral part of the ATCO
response. When the flood forced
the closure of the ATCO Blue Flame
Kitchen Calgary office, the team
worked out of the Edmonton office
to produce important information for
flood victims looking to safely clean
their homes and deal with associated
food safety issues.
From the start, ATCO and its
employees rallied around their
neighbours, family and colleagues
providing shelter, supplies and
support. ATCO established its ATCO
Families Flood Relief Program that
enabled employees to support their
colleagues in a number of meaningful
ways. Employees were able to
donate funds to help affected families
with every dollar donated matched by
the company. The effort raised nearly
$175,000 to help flood-affected
ATCO employees with the costs of
clean up and re-building.
6 ATCO Structures & Logistics
constructed, installed
and continues to operate
temporary relief shelters for
the Siksika First Nation.
7 ATCO employees volunteered
their time to sort donations
and distribute supplies for
the Siksika First Nation.
8 Dean Seiz, ATCO Sustainable
Communities, delivered
thousands of bottles of water
to the Siksika Nation.
The program also initiated a hard
goods drive that delivered more than
28 large gift baskets to families and
more than two large pallets of surplus
goods to a local charity. ATCO
used the program to coordinate its
volunteer outreach across the Group
of Companies – with employees
dedicating more than 1,200 hours in
Calgary, High River, Turner Valley and
the Morley, Siksika and Eden Valley
First Nation communities.
ATCO Gas donated some of its large
equipment, such as dump trucks and
front end loaders, to assist with clean
up, as well as its large community
BBQs to cook food for residents and
volunteers in some of the affected
neighbourhoods.
The ATCO Sustainable Communities
team delivered more than 17,000
bottles of water and other supplies to
First Nation communities affected by
the flooding.
ATCO’S FIREFIGHTERS IN ACTION
As the flood waters swept through
central and southern Alberta,
emergency personnel were the first
on the scene and stayed throughout
the crisis helping to evacuate people,
protect property and ensure that
people could return as quickly and
safely as possible.
In the Municipal District of Foothills,
which encompasses High River,
firefighters were doing double and
triple shifts, some working for 48
hours straight, to ensure the safety
of the public. Many were from areas
such as High River and Okotoks and
they had not had a chance to check
on the flood’s impact on their homes.
Deputy Chief Greg Schaalje
described the situation facing the
men and women at the Heritage
Pointe Fire Station (within the
municipal district) to a friend and
that conversation soon found its way
through the ranks at ATCO, and our
help was requested.
There are many ATCO employees
across Alberta who dedicate
their time away from the job to
volunteering as firefighters in their
communities. Jerrold Lemko, who
serves as the volunteer Fire Chief
for the Vegreville Fire Department
when he’s not performing his duties
as a Health, Safety & Environment
Coordinator for ATCO Electric,
Transmission Division, was asked
to see if he could round up ATCO
employees who were also volunteer
firefighters and who would be willing
to spend a week supporting the
firefighters at Heritage Pointe Fire
Station.
He received the request for support
the evening of Monday, June 24 and
by Wednesday afternoon eight ATCO
employees had travelled from across
the province to the Heritage Pointe
Fire Station just outside of Calgary to
be briefed on their duties by Deputy
Chief Schaalje.
The ATCO employees gave up
vacation plans and time with their
families over the Canada Day long
weekend to help out their fellow
firefighters.
While at the fire station, the ATCO
employees were busy answering
emergency calls including everything
from reports of fire to vehicle
collisions to medical assists. Their
presence allowed the regular
firefighters to not only get some
much-needed rest but to also start
taking care of their own homes and
families.
Jerrold Lemko was named Canada’s
Volunteer Fire Chief of the Year by the
Canadian Association of Fire Chiefs
thanks, in part, to the role he played
coordinating the team of ATCO
volunteer firefighters to assist with
the flood relief.
39 2013 ANNUAL REPORT
2013 ALBERTA FLOODS 40
ATCO Pipelines owns and operates key natural gas
transmission facilities throughout Alberta to transport clean,
efficient energy from producers and other pipelines to
utilities, power generators and major industries.
With peak delivery of
3.8 billion cubic feet
of natural gas per day
and approximately 8,500 km of
pipelines, ATCO Pipelines serves
Alberta customers through nearly
4,000 receipt and delivery points.
The company is located in Calgary
and Edmonton with facilities across
Alberta.
The priorities in 2013 were the Urban
Pipeline Replacement (UPR) Project,
pipeline expansion and upgrades,
pipeline integrity initiatives, a General
Rate Application and a continued
focus on safety.
ATCO Pipelines also participated in
the crisis response and remediation
efforts after southern Alberta’s floods
in June (see page 37) as several
pipeline water crossings were
exposed as a result.
THE URBAN PIPELINE
REPLACEMENT PROJECT
The Urban Pipeline Replacement
(UPR) Project is an ATCO Pipelines
initiative to proactively replace and
relocate its high-pressure natural
gas pipelines that currently run
through densely populated areas of
Edmonton and Calgary. As urban
development has overgrown the
existing network of high-pressure
pipelines that were originally built
on the outskirts of the two cities,
this has created three areas of
concern with regards to public safety,
construction standards and future
demand.
As a result, in late 2012, the company
initiated an extensive consultation
process that included community
associations, local and provincial
government, as well as tens of
thousands of Calgary and Edmonton
residents living near either the
existing high-pressure pipelines or
the proposed new locations.
After the completion of the
consultation process, ATCO Pipelines
submitted the application for the
project to the Alberta Utilities
Commission (AUC) in March 2013.
In early 2014, ATCO Pipelines
received AUC approval of its
proposal to relocate the high-
pressure pipelines into the
transportation utility corridors (TUCs)
that surround the two cities, which
were designated by the Government
of Alberta to accommodate utility
infrastructure and ring roads.
Building new, modern pipelines in
the TUCs will dramatically improve
public safety by reducing the risk of
an incident and providing a buffer
from other construction activities. It
will also help to ensure that ATCO
Pipelines can meet the demand for
natural gas as the cities continue to
grow.
With the approval in place, ATCO
Pipelines will continue to consult
and inform communities, residents
and government representatives
as it begins the process of
constructing the individual segments
that comprise the project. The
southeast Calgary, east Calgary,
northeast Calgary, and southwest
Edmonton connectors are planned
to be the first segments constructed
with the entire project to be
completed over the next five years.
PIPELINE EXPANSION AND
UPGRADE PROJECTS
In 2013, ATCO Pipelines continued
with its preventive inspection
and maintenance program to
ensure pipeline reliability and
integrity. Relocations and pipeline
replacements took place throughout
the province.
Within the Town of Canmore, a
segment of the Banff Transmission
Pipeline was relocated away from
the highly developed central area of
the town along the Bow Valley Trail.
The pipeline is the primary supply
of sweet natural gas into Canmore,
Banff and the surrounding region.
The existing pipeline was constructed
in 1951 and was replaced as it
neared the end of its useful life. This
replacement ensures continued
safe and reliable gas service to the
communities.
ATCO Pipelines construction crews replace pipe assembly near Canmore, AB, to ensure continued safe and reliable
gas service to the community.
41 2013 ANNUAL REPORT
ATCO PIPELINES 42
The 41 km Norma transmission
pipeline was constructed to increase
capacity and maintain security of
supply to the Fort Saskatchewan
and Edmonton areas as the demand
for natural gas in those regions
continues to increase.
adequate depth of cover where
its pipelines intersect rivers and
streams. Throughout the province
in 2013, integrity-related projects
accounted for nearly one third of
the company’s $147 million capital
program.
PIPELINE INTEGRITY
INITIATIVES
ATCO Pipelines continued its annual
integrity program in 2013, which
involves leak detection, cathodic
protection and aerial surveys of
the company’s entire pipeline
system. Pipeline improvements and
upgrades were also undertaken to
accommodate in-line inspection tools
in existing facilities and integrity digs
or replacements were completed
where required. The company also
completes assessments of critical
watercourse crossings to ensure
GENERAL RATE APPLICATION
After nearly 10 years of negotiated
settlements with customers, ATCO
Pipelines completed its first full
General Rate Application and
proceeding with the AUC in 2013. It
required contributions from across
the organization and the decision for
the 2013-2014 revenue requirement
was received in December.
SAFETY
Safety is a core value at ATCO
Pipelines. Throughout the
organization there is a strong safety
culture and as such, in September
2013, ATCO Pipelines achieved its
eleventh consecutive year without a
lost-time incident.
ATCO Pipelines works together with
employees, contractors, business
partners and regulatory agencies to
continually improve Health, Safety
and Environment performance.
Safety is ingrained in all company
policies, practices and procedures to
minimize impacts and risks.
The company has a goal of zero
personal injuries and vehicle
collisions. To encourage safe
practices and reward safety
excellence, internal safety programs
are in place for both field and
office-based staff. Target Zero is
a challenge to employees to work
injury, incident and collision free,
every day.
URBAN PIPELINE REPLACEMENT PROJECT
EDMONTON
Proposed High Pressure
Natural Gas Pipelines
Natural Gas Pipelines
to be Removed from
High Pressure Service
Existing High Pressure
Natural Gas Pipelines
Transportation Utility
Corridor Boundary
Edmonton
Calgary
CALGARY
ATCO Pipelines continues to own, operate
and maintain its pipeline network which
now forms part of the Alberta natural gas
transmission system.
Construction crews installed 41 km of 508 mm (20 inch) pipeline in Norma, AB, to ensure sufficient supply of natural gas to
meet growing demand in the Fort Saskatchewan and Edmonton regions.
43 2013 ANNUAL REPORT
ATCO PIPELINES 44
45 2013 ANNUAL REPORT
ENERGY 46
ENERGY
The Energy business segment includes ATCO Power and
ATCO Energy Solutions. These companies are engaged in
power generation and natural gas gathering, processing,
storage and liquids extraction.
ATCO Power’s natural gas-fired 580 MW Brighton Beach generating station, located in
Windsor, ON, operates with low emissions and high overall efficiency.
ATCO Power is an experienced builder, owner and operator of
independent power generation plants. ATCO Power has a solid
reputation of providing industry leading, reliable, responsible and cost-
effective solutions for our customers and partners around the world.
A TCO Power has an
ownership position in 14
power generation plants in
Canada and the United Kingdom
with a combined capacity of 4,591
megawatts (MW) and total ownership
interest in 2,541 MW. The company
has expertise in developing,
constructing and operating gas-fired
cogeneration, combined-cycle, hydro
and reliable, economic coal-fired
generation.
FINANCIAL PERFORMANCE
ATCO Power has benefited from
strong pricing in the Alberta
electricity market for the past three
years with relatively low gas prices,
robust plant performance including
strong availability, all of which
has resulted in a positive financial
performance.
ATCO Power’s performance metrics
include an excellent availability rate
of 94 per cent through 2013 including
several major planned maintenance
outages across the company’s
generation fleet during the year.
ATCO Power continues to focus on
operational excellence through the
safe, reliable operation of existing
assets and is continually improving
its safety and environmental
programs to ensure the ability to
demonstrate responsible and safe
operations.
A Young and New Workers program
was implemented at several of the
generating stations during the year
to ensure the long-term embedded
knowledge of safe operations is
transferred from experienced people
to those new to the workforce.
Strong health and safety performance
was supported by several continuous
improvement activities put into
effect during the year including: new
Contractor Prequalification Process,
Job Hazard and Risk Assessment
Standardization, Alcohol & Drug
program, and Training Content
Standardization with several ongoing
programs to be implemented in 2014.
Even though power prices remained
low in the United Kingdom, the
Barking Power Station continued to
provide support to the UK electricity
market through the provision of
ancillary services. In anticipation
of possible shortages in reliable
power generation capacity in the
coming years, the UK government
is proposing a new mechanism to
contract with power generators to
provide the required reserve capacity.
The Barking Power Station is well
positioned to participate in this
opportunity when the process is
introduced in the winter of 2014-15.
GROWTH
ATCO Power continued to expand
its business development, and
engineering and construction teams
to pursue new power generation
opportunities in Western Canada.
The company also established a
commercial and industrial wholesale
electricity sales group to market
capacity available to sell in the
Alberta open market. Significant
project development work was done
on the proposed 400 MW Heartland
generating station in the Strathcona
region near Edmonton, AB. ATCO
Power has engaged in public
consultation, including a community
open house, as well as filed several
regulatory applications in conjunction
with the development of this gas-
fired, combined-cycle generating
station. This particular area of Alberta
provides a prime opportunity to fill a
market need in light of the expected
retirement of coal-fired plants in the
future, and support the company’s
strategic direction to maintain and
grow ATCO Power’s market share in
the province.
New-build power generation
opportunities are being investigated
in conjunction with LNG (liquefied
natural gas) development in north
eastern British Columbia and on
the West Coast where new LNG
refining facilities are being planned
to export gas to Asia. Through its
strategic alliances with major oil and
gas companies, ATCO is positioned
to capture opportunities for several
The 260 MW Cory cogeneration station provides steam and electricity from the same natural gas energy source.
The steam goes to Potash Corporation and the electricity goes to SaskPower.
47 2013 ANNUAL REPORT
ATCO POWER 48
ATCO companies that can provide
the needed infrastructure and
services to facilitate natural resource
development.
provide safe reliable power for the
growth and development of Alberta
anticipated over the next several
years.
ATCO Power is revisiting the
development of hydro generation
facilities in Alberta on the Slave and
Athabasca Rivers in the North in
order to provide long-term reliable
base load green power to replace
the eventual retirement of coal-fired
generating facilities in the province.
Because of the long development
time line for large hydro facilities,
ATCO is currently investigating
the scenarios which could lead to
partnerships with Aboriginal groups,
government and industry.
OPERATIONS
The contract for the purchase of
the power generated from Battle
River units 3 & 4 expired at the end
of 2013, and ATCO Power intends
to market a portion of this capacity
directly to end-use large commercial
and industrial customers. Because
the units have been well run and
maintained, they will continue to
During 2013, ATCO Power’s
generating assets had a very good
availability rate of 94 per cent. Safety
and environmental performance
continues to be a key focus at all
the generation assets and through
the efforts of all its employees and
contractors, the company achieved
significant health and safety
milestones in 2013. The 780 MW
Sheerness power station, located
near Hanna, AB, achieved more than
one million worker hours of safe
operation with no lost-time incidents
by staff and contractors. ATCO
Power’s gas turbine fleet in Alberta
celebrated more than 10 years with
no employee lost-time injuries.
PEOPLE
With the new business development
initiatives and power marketing
programs being implemented in
ATCO Power, the company continues
to focus on the importance of its
ATCO Power’s proposed 400 MW Heartland generating station will be located in
Fort Saskatchewan, AB, near large industrial customers and major construction
activities.
49 2013 ANNUAL REPORT
workforce to support these initiatives.
The company is well positioned
to implement its growth strategy,
having increased the number of
new positions by 12 per cent over
the year, and has maintained its
attention on employee development
and workforce planning to further
enhance the solid knowledge and
skill base in the company.
INDUSTRY CHALLENGES AND
OPPORTUNITIES
The federal Greenhouse Gas
Regulation, which was introduced
in September 2012, means that a
‘clean as natural gas’ performance
standard will be applied to coal-
fired generators. Units that have
reached the end of their useful life
(50 years in most cases) will be
required to operate at emission
levels below the gas-fired standard
or shut down. The last units at ATCO
Power’s Battle River and Sheerness
generating plants will reach the end
of their useful life in 2029 and 2040,
respectively. Other air emissions
regulations relating to coal and
gas-fired generation are also under
review in 2014. ATCO continues to
work with the provincial and federal
governments to ensure alignment
between regulations in order to
plan continuing operations at these
facilities.
ASHCOR TECHNOLOGIES
Combustion by-products produced
at coal-fired power stations operated
by ATCO Power are marketed by
ASHCOR Technologies primarily
to the oil well servicing sector,
readymixed concrete producers and
producers of other cement-related
products. By collecting the fly ash
and using it in cementing materials,
ASHCOR is able to create value and
reduce carbon dioxide in a product
that would be treated as waste and
disposed of in a reclamation site.
ATCO POWER’S GENERATION FACILITIES
1
2
BRITISH
COLUMBIA
5
3
ALBERTA
4
8
6
7
9
SASKATCHEWAN
Edmonton
10
12
11
13
Calgary
14
Generating
Capacity (MW)
580
1,000
90
NATURAL GAS
Facility
1 Brighton Beach
2 Barking
3 Rainbow Lake 4 & 5
4 Muskeg River
5 McMahon
6 Poplar Hill
7 Valleyview 1 & 2
8 Primrose
9 Scotford
10 Joffre
11 Cory
COAL FIRED
12 Battle River 3, 4 & 5
13 Sheerness 1 & 2
RUN-OF-RIVER HYDRO
14 Oldman River
170
120
45
90
85
170
480
260
689
780
32
Total Generating Capacity
4,591 MW
Total Generating Capacity Owned
2,541 MW
See page 64 for Australia power
generation facilities
ATCO POWER 50
ATCO Energy Solutions builds, owns and operates non-regulated energy and water-
related infrastructure. The company focuses on offering industrial water infrastructure
solutions; natural gas gathering, processing and storage and natural gas liquids
extraction, transportation and services to the energy industry.
System which, in anticipation of
potential opportunities, underwent
environmentally sensitive water
infrastructure upgrades, including
improvements to an existing river
intake on the North Saskatchewan
River, in 2011 and 2012. Additionally,
a new pump house and water
pipeline under the river is scheduled
for completion in 2014.
The expansion resulted in a second
contract announced in December.
ATCO Energy Solutions signed
an agreement with Air Products
Canada Ltd. to provide industrial
water services to the company’s new
hydrogen facility to be built adjacent
to the Shell Scotford Refinery site
in Strathcona County, also in the
Industrial Heartland.
To supply the Air Products facility,
the company will further expand its
water system with additional pipeline,
pumping, and storage facilities.
Construction on the expanded
system will begin in 2014 and is
anticipated to be complete by mid-
2015.
ATCO Energy Solutions is also
proposing to develop the Heartland
Energy Storage and Logistics Centre
to be located approximately 12 km
west of Bruderheim, AB. An open
house for the community was held
in October as part of the regulatory
approval process.
The initial phase of development
includes four salt caverns for
hydrocarbon storage and associated
above-ground hydrocarbon handling
facilities. The caverns will contain
propane, butane, ethylene, and
natural gas condensate.
Construction of the cavern project is
expected to commence in early 2014
with full cavern operations targeted
for mid-year 2016.
A TCO Energy Solutions
owns or has interests in six
natural gas gathering and
processing facilities and four natural
gas extraction facilities which,
combined, have a total processing
capacity of more than 1.6 billion
cubic feet per day.
2013 was a year of intense focus on
building infrastructure capacity and
signing new agreements in Alberta’s
Industrial Heartland, Canada’s largest
hydrocarbon processing region with
more than 40 companies involved in
the chemical, petrochemical, and oil
and gas sectors.
Two projects were announced and
progress was made on a third in the
582 sq. km region located in close
proximity to Edmonton.
In April, the company signed an
agreement with the North West
Redwater Partnership to provide
essential water transportation
services to the Sturgeon Refinery.
The project, currently under
construction to be the world’s
first bitumen refinery, will combine
the already proven processes of
gasification technology with an
integrated carbon capture and
storage solution.
The refinery, located 45 km northeast
of Edmonton, will be serviced though
ATCO Energy Solutions’ expanded
ATCO Heartland Industrial Water
51 2013 ANNUAL REPORT
ATCO ENERGY SOLUTIONS 52
ABOVE: The Empress Gas Liquids Straddle Plant processes up to 1.1 billion cubic feet/day.
LEFT: ATCO Energy Solutions Instrumentation Technologist, Evan Taylor, reviews meter valves at the Fort Saskatchewan
Ethane Extraction Plant.
ATCO ENERGY SOLUTIONS FACILITIES
Facility . . . . . . . Licensed Capacity
(mmcf/day)
GAS GATHERING &
PROCESSING FACILITIES
1 Carbondale Gas Plant . . . . . . . . . . 56
2 Ikhil Gas Plant . . . . . . . . . . . . . . . . . 8
3 Kinsella Gathering &
Compression Facility . . . . . . . . . . . 20
4 Kisbey Gas Plant . . . . . . . . . . . . . . . 5
5 Nottingham/Wolstitmor
Gas Gathering System . . . . . . . . . 18
6 Puskwaskau Gas Plant . . . . . . . . . 21
NATURAL GAS LIQUIDS
EXTRACTION FACILITIES
7 Edmonton Ethane
Extraction Plant . . . . . . . . . . . . . . 390
8 Empress Gas Liquids
Straddle Plant . . . . . . . . . . . . . 1,100
9 Fort Saskatchewan Ethane
Extraction Plant . . . . . . . . . . . . . . . 37
10 Villeneuve Ethane
Extraction Plant . . . . . . . . . . . . . . . 40
Working Gas Capacity (bcf)
NATURAL GAS STORAGE
FACILITIES
11 Carbon Natural Gas
Storage Facility . . . . . . . . . . . . . . . 40
PIPELINE
12 Muskeg River Pipeline
WATER
13 Alberta Industrial Heartland
River Water System
2
Inuvik
NORTHWEST
TERRITORIES
ALBERTA
6
15
12
Fort McMurray
Edmonton
3
11
8
SASKATCHEWAN
Calgary
Regina
4
5
Alberta’s
Industrial
Heartland
Region
ELECTRICAL TRANSMISSION/
SUBSTATION FACILITIES
14 Scotford Transmission/Substation
15 Muskeg River Transmission/Substation
1
13
14
9
10
Edmonton
7
ATCO I-Tek is an end-to-end service provider that specializes in application services,
managed services, and customer care and billing. With a team of more than 720
professionals, three world-class data centres and expertise in more than 750 business
applications, ATCO I-Tek supports clients across the world from one of the largest
technology environments in Western Canada.
In 2013, ATCO I-Tek continued
to demonstrate excellence in
its large-scale Alberta-based
billing capabilities, took steps to
better safeguard data storage and
system security for its clients, and
significantly grew the number of
clients with its Enterprise Asset
Management and other technology
solutions.
The company’s billing capabilities,
from start to finish, were once again
a significant part of the business.
ATCO I-Tek printed more than 11.7
million client statements, processed
upwards of 10.3 million payments
and collected approximately
$3.1 billion for its clients in 2013.
Supporting the company’s billing
and collection services was ATCO
I-Tek’s call centre, which answered
more than 1.6 million customer calls
to ensure an overall high level of
customer service.
ATCO I-Tek’s billing services follows
Canada Post standards and uses
advanced sorting and other process
optimizations to minimize both
mailing costs and the costs to clients.
In 2012, ATCO I-Tek made the
strategic decision to enter into
a long-term agreement to lease
leading-edge data centre space for
its Edmonton-based information
technology infrastructure. The
decision enabled ATCO I-Tek to
significantly increase the reliability
of the application and infrastructure
services provided to its clients.
Early in 2013, the company began
moving the majority of its computing
infrastructure and client applications
to the newly leased facility. After
nine months of detailed planning,
testing and moving, the data
centre migration was successfully
completed on Sept. 22, 2013. It was
the largest data migration project in
company history.
ATCO I-Tek also experienced
more than quadruple growth in
its Enterprise Asset Management
solutions sales to new clients. Client
growth was most prominent in the
utilities, manufacturing, and oil and
gas markets spread across North
America. Clients from Ontario to
British Columbia and California to
Trinidad in the Caribbean depended
on ATCO I-Tek’s expertise to learn
how to better manage their assets
and get more out of their applications
and processes.
While ATCO I-Tek continued to
deliver excellence in Managed IT
Services to its existing client base,
work commenced to roll out these
services to the broader marketplace.
This opportunity will grow the
business and enable new clients to
benefit from ATCO I-Tek’s knowledge,
experience, industry best practices
and advanced technologies.
53 2013 ANNUAL REPORT
ATCO I-TEK 54
ATCO I-Tek provides large-scale utility billing and customer care for retail, distribution and integrated utility clients.
ATCO AUSTRALIA WELL POSITIONED
FOR CHANGING LANDSCAPE
peak electricity loads. Other market
offerings being explored include
natural gas-fired backup generation,
compressed natural gas vehicles
and distributed generation. Through
this type of innovation, we can lead
the industry and help business
customers achieve benefits ranging
from lower operational costs to
improved environmental ratings.
ATCO Gas Australia is also working
with residential land developers and
housing development builders to
ensure natural gas is an available
and preferred option for home
appliances.
In 2013, ATCO Gas Australia’s Safety
Case submission to the safety
regulator, outlining processes and
plans for operating the network, was
accepted, which is testimony to the
company’s approach to operating a
safe, reliable network.
Based on business growth over the
past three years, ATCO Gas Australia
reinforced its strong market position
by negotiating new financing terms
on existing debt. The company also
received a two level investment
upgrade from Standard and Poor’s
from “BBB” (Positive) to “A-”
(Stable). This upgrade is the result of
a concerted and successful effort to
apply the principles of ATCO Group’s
balance sheet management.
ATCO Power Australia has
maintained a solid track record
with commercial availability across
the three power stations averaging
97 per cent over the past three
years. There has been an increased
focus on risk management, hazard
identification, emergency planning
and business continuity contingency
planning. The cornerstone of our
power business is to improve the
efficiency of our operations and
innovate to assist customers to
meet the challenges facing their
businesses.
Australia’s economic fundamentals
are strong and the outlook remains
positive, with solid growth, moderate
unemployment and contained
inflation.
There are three areas that, going
forward, ATCO will be watching
closely: the carbon tax repeal; global
demand for gas and the impact
this will likely have on the domestic
market; and, the energy market
reform process, particularly
in Western Australia.
Although the carbon tax does not
directly impact ATCO’s operations,
it does impact our customers’
businesses. The federal government
intends to repeal the carbon tax
and replace it with an initiative
called Direct Action. Because there
is little detail about this initiative,
it is causing uncertainty for our
customers.
Similarly, as demand for liquefied
natural gas (LNG) increases,
particularly from the Asian
economies, the rush to export LNG
to China is creating market distortion.
It is becoming more worthwhile for
big suppliers to export LNG than to
sell it locally, creating potential gas
availability issues.
Gas availability and price is shifting
the focus to renewable technologies,
particularly solar and wind.
Development of both are heavily
subsidized by government in the
industrial and consumer markets
creating competitive challenges to
gas as an energy source.
Policies, renewable energy targets
and government funding are now
being reviewed by a newly-elected
government, and ATCO Australia
is contributing to industry bodies,
participating in government forums
and providing submissions to
government white papers as its input
to future policy.
In Western Australia, there is
increasing pressure for the
government to move forward on
energy market reform. Following
the 2013 election, the state credit
rating shifted downward. As a
result, government will look to
bring selected energy infrastructure
asset sales or privatization to the
forefront, as well as to reduce capital
expenditures.
As Australia continues on its journey
of regulatory reform, securing its
energy future and driving energy
productivity, ATCO Australia is in
a very good position to build on
its first three years of operation to
offer bundled, innovative energy
solutions, create value for customers
and make a difference to the lives of
Australians in the communities where
we operate.
The home of ATCO’s 86 MW Karratha Power Station in the resource-rich Pilbara in northwest, Western Australia continues
to be a focus for ATCO Australia.
Steven J. Landry
Managing Director & Chief Operating
Officer, ATCO Australia
During its first three years of
operation, ATCO Australia has
experienced significant and
strategic growth in the face of many
challenges.
Since the acquisition of Western
Australia’s largest gas reticulation
network, ATCO Gas Australia, there
have been year-over-year increases
in connections and in kilometres of
pipework laid. Capital expenditures
more than doubled over the three
years while a strong safety record
was maintained.
With the expansion of the ATCO
Gas Australia network, the company
is introducing new and innovative
uses for natural gas, such as natural
gas-fuelled air conditioning units
for the industrial sector, which
has the potential to transform the
energy market by greatly reducing
55 2013 ANNUAL REPORT
ATCO AUSTRALIA WELL POSITIONED FOR CHANGING LANDSCAPE 56
57 2013 ANNUAL REPORT
AUSTRALIA
ATCO Australia includes ATCO Power Australia,
ATCO Gas Australia and ATCO I-Tek Australia.
These companies provide a full range of energy
infrastructure services.
Scott Strickland, Gas Distribution Officer, ATCO Gas Australia, uses the company’s
new Field Mobility System with his tablet to access safety documents.
AUSTRALIA 58
ATCO Australia Pty Ltd, based in the Western Australian capital, Perth,
operates a range of energy infrastructure assets, supporting the
resource-focused industries in its home state as well as
Queensland and South Australia.
A TCO Australia has ownership
in, and operates three
power generation facilities in
Australia with a combined capacity of
299 MW. ATCO Australia also owns
and maintains the vast majority of
Western Australia’s gas reticulation
network, via ATCO Australia covering
the Geraldton, Bunbury, Busselton,
Harvey, Pinjarra, Brunswick Junction,
Capel and Perth greater metropolitan
area; and two separate non-regulated
gas distribution networks, one
serving Kalgoorlie and the other, a
liquefied petroleum gas storage-fed
gas distribution network, serving
Albany.
The Pilbara region in northern
Western Australia continues to
provide opportunity for growth in the
power generation segment. Similarly,
gas transmission and distribution
opportunities continue to be explored
in the south and west of Western
Australia and in the eastern states of
Australia.
The warmest winter on record had
an impact on gas throughput for the
distribution network and, to counter
this, ATCO has been exploring other
uses for natural gas. Technologies
such as fuel cells, distributed
generation and gas-fired air
conditioning provide opportunity for
increasing gas throughput and will,
therefore, be a focus going forward
for the company.
ATCO POWER AUSTRALIA
ATCO Power Australia’s three
power stations are located in
Queensland, South Australia, and
Western Australia. The Bulwer Island
Cogeneration Facility in Queensland
is a 33 MW electrical and 55 MW
thermal equivalent cogeneration
facility that provides 100 per cent of
the electrical load, process steam
and the demineralized water needs
of BP’s Bulwer Island refinery in
Queensland. The 180 MW Osborne
Cogeneration Facility, located near
Adelaide in South Australia, is one
of Australia’s largest cogeneration
facilities and the 86 MW Karratha
Power Station is the most efficient
and environmentally friendly power
generation facility connected to the
North West Interconnected System
in the Pilbara region, in Western
Australia.
ATCO Power Australia enjoyed a
strong year, marked primarily by
the ongoing, efficient and profitable
operation of its three power stations.
The business has continued to
experience steady growth, while
working through the operational
challenges that exist in the Australian
energy sector.
In South Australia, as in Queensland,
gas pricing and availability are
becoming significant issues facing
the wider energy sector and have
particular relevance to ATCO’s gas-
fired power stations. There is no
domestic gas reservation policy in
South Australia or the eastern states
of Australia, hence, gas availability
is becoming more of an issue due
to volume being sent to offshore
markets. Western Australia does have
a domestic gas reservation policy
in place and so the issue isn’t as
prevalent. ATCO is addressing these
challenges through discussions with
joint venture partners and is confident
of continuing to successfully
negotiate positive outcomes.
In July, ATCO Power Australia
renegotiated its existing Energy
Services Agreement with South
Australian soda ash producer Penrice
Holdings. This was in response
to Penrice’s decision to cease
production of bi-carbonate soda,
resulting in a reduction in the amount
of steam provided by ATCO Power
Australia’s Osborne facility.
In 2013, the wider focus of ATCO
Power Australia has been to improve
the energy efficiency of all its
facilities. As a result, at the Bulwer
Island facility, solar panels have been
59 2013 ANNUAL REPORT
ATCO AUSTRALIA 60
Sharma Sewell, Administration Assistant, at ATCO Power Australia’s Karratha Power Station. It is the most efficient and
environmentally friendly power generation facility, connected to the North West Interconnected System, in the Pilbara region
in Western Australia.
installed, which will also allow the
station to reduce its operating costs.
upgrade from Standard & Poor’s from
“BBB” (Positive) to “A-” (Stable).
ATCO GAS AUSTRALIA
ATCO Gas Australia serves
approximately 683,000 customers
across regional and metropolitan
Western Australia. Through its
13,500 km of natural gas pipelines,
ATCO Gas Australia is able to meet
the demands of one of the fastest
growing population bases in the
developed world.
In 2013, the business set about
reinforcing its strong market position
by negotiating new financing terms
on existing debt. ATCO Gas Australia
finalized this agreement in November,
effectively extending the agreement’s
maturity until 2018. Towards the
end of 2013, ATCO Gas Australia
also received a two level investment
In 2013, ATCO Gas Australia took
the strategically significant step
of focusing on promoting gas-
powered air conditioning. Despite
enjoying widespread uptake in
countries like Japan, gas-powered
cooling remains a comparatively
new technology in Australia despite
the extreme temperatures reached
during the summer months. Early
indications suggest that there is a
strong appetite for this technology
and that gas-powered technologies
harbour the potential to transform the
energy market in Australia by greatly
reducing peak electricity loading.
During the year, ATCO Gas Australia
contributed to the development of
several major infrastructure projects
around Perth, amongst which was
the gas connection to Perth’s $1.4
billion Fiona Stanley Hospital. As
part of the development, ATCO
Gas Australia completed significant
network reinforcement to deliver
a reliable long-term gas supply
at an estimated 173 Terajoules
per year. This consisted of 3 km
of high-pressure steel gas mains
reinforcement and 2.7 km of
polyethylene gas mains, servicing the
on-site power station and other gas-
powered appliances.
ATCO Gas Australia was also
responsible for the reticulation of
gas to the Perth Airport as part of
its ongoing redevelopment. To help
meet the airport’s estimated annual
consumption of 324 Terajoules,
ATCO Gas Australia constructed
a high-pressure regulator set and
polyethylene gas main.
The redevelopment of ATCO
Gas Australia’s Jandakot facility
progressed significantly in 2013
and remains on track for an official
opening in early 2014. In keeping
with the company’s commitment
to environmental sustainability, the
Jandakot site includes state-of-the-
art gas-powered air conditioning and
other features designed to improve
energy efficiency.
To enhance safety and efficiency of
office and field-based personnel,
ATCO Gas Australia, in conjunction
with ATCO I-Tek Australia, developed
an electronic paperless system
known as Field Mobility. Using
tablets, the Field Mobility innovation
makes safety documentation easily
accessible, provides improved
access to data when performing
maintenance activities and improves
the efficiency and accuracy of
data collection relating to asset
performance and health. Cost
efficiency benefits from the Field
Mobility initiative include operational
savings through improved scheduling
and response times, utilization
capacity and the enhanced ability to
absorb activity growth.
In keeping with an ongoing focus
on customer satisfaction, ATCO
Gas Australia’s customer service
division was acknowledged at the
2013 National Customer Service
Excellence Awards. The call
centre was selected as a finalist
by the Customer Service Council
and received a silver medal for
excellence. ATCO Gas Australia was
recognized for outstanding response
time, quality of service, staff
satisfaction, innovation and reporting.
ATCO I-TEK AUSTRALIA
Along with developing and delivering
the Field Mobility System for ATCO
Gas Australia, ATCO I-Tek Australia,
in 2013, completed the full integration
of core business systems enabling all
ATCO Australia businesses to easily
adapt to new technologies and share
information across the companies,
thereby driving process excellence,
efficiency and improved safety of
operations. ATCO I-Tek Australia
also continued to focus on putting
the foundations in place that are
necessary for future growth of the
business.
Solar panels installed at the Bulwer Island facility are part of a focus of ATCO Power Australia to improve the energy
efficiency at all of its facilities.
ATCO Gas Australia’s President, Alan Dixon, and Business Development Manager, Nathan Lude, inspect the natural gas-fired
air conditioning system recently installed at the company’s Jandakot building.
61 2013 ANNUAL REPORT
ATCO AUSTRALIA 62
IN THE COMMUNITY
In 2013, ATCO Australia continued
and expanded its community
engagement program. Through
the successful partnership
with the University of Western
Australia’s prestigious Business
School, ATCO hosted a number of
significant leadership events, further
strengthening ties and relationships
with the Western Australian business
community.
ATCO also extended its relationship
with Nomad Two Worlds by
supporting the 2013 Art Series, which
was marked with two successful
exhibitions in Perth celebrating the
diversity of Indigenous art and culture
from Australia, North America and
Haiti.
In 2013, ATCO sponsored the
CinéfestOZ event, a film festival
held in the South West region
of Western Australia. Through
ATCO’s sponsorship, the festival
has been able to expand and grow
the festival’s Cinesnaps Schools
Programme, which benefits hundreds
of regional school children by
providing a platform for them to
attend screenings and workshops,
learn about filmmaking and partake
in a short-film competition, alongside
national and international artists. (For
more about CinéfestOZ, see page 73.)
As part of ATCO Gas Australia’s
community commitment, the
company has partnered with
Nulsen, a disability services provider
operating in Perth, to supply gas
appliances for use in Nulsen’s
Disability Support Homes. Not only
do these appliances help enhance
the lives of residents and their
caregivers, they provide significant
financial savings through the use of
cost-competitive natural gas.
In 2013, ATCO Australia launched the
ATCO EPIC (Employees Participating
in Communities) program and was
awarded the inaugural ‘Workplace
Supporter of the Year’ for its work
supporting Kids are Kids!, a non-for-
profit, community-based provider of
specialist therapy services to children
with a developmental disabilities.
ATCO OPERATIONS IN AUSTRALIA
NORTHERN
TERRITORY
10
6
QUEENSLAND
5
SOUTH AUSTRALIA
Brisbane
11
4
1
ATCO Australia headquarters
- ATCO I-Tek Australia
- ATCO Gas Australia
ATCO Gas Australia Gas Service Area
NEW SOUTH
WALES
Sydney
8
9
Adelaide
13
VICTORIA
Melbourne
7
TASMANIA
12
Karratha
WESTERN AUSTRALIA
2
Perth
ATCO Structures & Logistics
Manufacturing Facilities
1 Brisbane (5 factories)
2 Kwinana (near Perth)
ATCO Structures & Logistics
Other Locations
4 Brisbane
5 Gladstone
6 Mackay
7 Melbourne
8 Newcastle
9 Sydney
10 Townsville
ATCO Power Australia Generating Plant Sites
Facility
Net Generating
Capacity
Fuel Type
11 Bulwer Island
12 Karratha
13 Osborne
33 MW
86 MW
180 MW
Natural Gas
Natural Gas
Natural Gas
Pat During, Gas Distribution Officer, ATCO Gas Australia, is conducting a meter read using the Field Mobility System
developed in conjunction with ATCO I-Tek Australia.
63 2013 ANNUAL REPORT
ATCO AUSTRALIA 64
ABORIGINAL PARTNERSHIPS
Building and sustaining Aboriginal relationships helps to form the
foundation of how ATCO does business and this is reflected through both
ATCO’s longstanding relationships with Aboriginal communities and how
the company engages with these communities every day.
Partnerships that stand the
test of time involve respect,
trust, understanding and
transparency. Each party commits to
bringing value to the partnership and
continues to negotiate in good faith
as the relationship evolves over time.
ATCO conducts all of its business
in this spirit, striving to maintain
positive relationships that contribute
to sustainable economic and social
development in the communities
where ATCO does business.
Some of ATCO’s first Aboriginal
partnerships have endured for more
than 25 years (see map, page 68).
BUILDING STRONGER
RELATIONSHIPS
In 2013, ATCO continued to
strengthen its relationships with
Aboriginal communities across
Canada through new developments
with the Woodland Cree First Nation
joint-venture partnership as well as
new agreements with the Denesoline
and Qikiqtaaluk Corporations,
Samson Cree Nation and the
Ermineskin Cree Nation.
In October, ATCO Structures &
Logistics announced that it was
awarded a contract to manufacture,
install and operate a 1,200 person
workforce housing facility for the
Shell Carmon Creek Project near
the town of Peace River in northern
Alberta. ATCO established a
joint-venture partnership with the
Woodland Cree in 2010 with the goal
of helping to build an active business
community that can serve the Peace
River region and create local jobs.
The partnership is structured in a
way that will involve the Woodland
Cree First Nation in all facets of the
construction and operation of the
new facility, including supporting
camp management, catering,
housekeeping and janitorial services.
In May, ATCO Structures &
Logistics signed a Memorandum of
Understanding with the Denesoline
Corporation, the economic
development arm of the Lutsel K’e
Dene First Nation, located on the
south shore of Great Slave Lake,
NWT. The agreement is to jointly
pursue commercial and industrial
projects, including infrastructure
construction within the Lutsel K’e
Dene traditional territory.
ATCO Pipelines signed an agreement
with the Samson and Ermineskin
Cree Nations, two of the four nations
centred around Maskwacis (formerly
Hobbema) in central Alberta. The
agreement involves several long-
term benefits to these communities,
including exploring employment
and training opportunities related
to a pipeline replacement project to
upgrade critical infrastructure for the
area.
PROMOTING EDUCATION AND
EMPLOYMENT
Canada’s Aboriginal youth population
is growing at three times the national
average. Engaging the potential
of these youth is key to economic
growth as Canada’s workers are
aging and retiring. Many of ATCO’s
operations touch Aboriginal
communities and the success of
these operations is due, in part, to
engaged Aboriginal partners and
employees.
Access to training and certification
programs is a critical step to open
doors for entry level employment,
which is a big part of many of ATCO’s
infrastructure projects. A prime
example was the workforce housing
contract awarded to ATCO Structures
& Logistics in 2012 to design, build
and operate a 2,586-person lodge to
support BHP Billiton’s Jansen Potash
Project, 100 km north of Regina.
In support of this agreement, ATCO
continues to work with Aboriginal
groups in the Touchwood Hills
area of Saskatchewan, including
George Gordon First Nation, Day
Star First Nation and Kawacatoose
First Nation. Working with the
Saskatchewan Tourism Education
Chief Craig Mackinaw from the Ermineskin Cree Nation and Brendan Dolan, former President, ATCO Pipelines, currently
Senior Vice President, Calgary and District Operations, ATCO Gas, celebrated the execution of a cooperative agreement to
govern future dealings between the two parties on a pipeline replacement project in the Maskwacis community.
65 2013 ANNUAL REPORT
ABORIGINAL PARTNERSHIPS 66
Council (STEC), ATCO conducted
skills inventories in the communities
to assess education, interest and
potential barriers to employment.
Twenty-two members of the
communities participated in the
training program with 17 graduates
offered employment opportunities.
Future plans include establishing
a training and cultural awareness
centre on George Gordon First
Nation traditional territory. The skills
inventory approach has also proven
to be an effective way to begin
bridging the employment gap for
major ATCO projects.
These project-driven efforts
supplement and add to ATCO’s
ongoing education programs.
For example, ATCO Electric has
maintained an Aboriginal summer
student program since 2008,
whereby students have been
provided summer positions within
various ATCO Electric offices. ATCO
Pipelines maintains an Aboriginal
Educational Awards Program that
started in 2011. Since beginning this
program, 47 students have been
provided bursaries and scholarships.
ATCO also began a three-year
commitment to the Future Leaders
program in the East Prairie Métis
settlement in 2013. The program
helps local youth develop their
leadership skills and self-confidence
through learning to provide sport,
recreation and art programs to the
community. These future leaders
provide positive role models and help
improve the quality of life for all local
residents.
SUPPORTING EVENTS FOR
POSITIVE CHANGE
ATCO supports a number of events
throughout the year that bring
Aboriginal communities in Canada
together to celebrate and learn from
each other. One example is the Truth
and Reconciliation Commission
events over the past few years,
which promote a healing journey for
Aboriginal families who were involved
in the Residential Schools, while
educating Canadians on the impact
of this time in Canada’s history.
Proceedings such as these add to
ATCO’s ongoing support for events
such as the National Assembly of
First Nations and National Aboriginal
Day ceremonies throughout Canada,
which celebrate and promote
Aboriginal culture and heritage.
Joint Ventures, MOUs
and Strategic Alliances
1 World Technical Services Inc.
Alaska Radar System (1994)
2 NASCo NorthwesTel (1998)
3 Inuvialuit Development Corporation
(2004) & Inuvialuit Petroleum
Corporation (2008)
4 Pan Arctic Inuit Logistics
North Warning System (1994)
5 Sakku Investments Corporation
(2012)
6 Peguis First Nation (2013)
7 Manitoba Keewatinowi Okimakanak
(2013)
8 Webequie First Nation (2011)
9 Moose Cree Business Consortium
(2010)
10 UQSUQ Corporate Iqaluit Fuel
Supply (1996)
11 Qikiqtaaluk Corporation (2013)
12 Makivik Corporation (2013)
13 Torngait Services Inc.
Voisey’s Bay Nickel Co. (1995)
14 Naha Dehé Dene Band (Nahanni
Butte) (2012)
15 Denendeh Investments (1987)
16 Tli Cho Lantran & Denedeh
Development Corporation (1993)
17 Denesoline Corporation (2013)
18 Bear Dog Enterprises (2011)
19 Gitanyow (2011)
20 Haisla First Nation (2010)
21 Lhoosk’uz Dene Nation (2011)
22 Simpcw First Nation (2014)
23 Ahousaht First Nation (2010)
24 St. Mary’s Band (2011)
25 Tallcree First Nation (2013)
26 Fort McKay First Nation,
Creeburn Lake Lodge (2007), Barge
Landing Lodge (2008)
Graduates of the 2013 ATCO/Saskatchewan Tourism Education Council (STEC)
“Ready to Work” training program.
67 2013 ANNUAL REPORT
ATCO’S ABORIGINAL PARTNERSHIPS
27 Woodland Cree First
Nation (2013)
1
28 Saddle Lake First
Nation (2013)
29 Samson Cree
Nation (2013)
30 Ermineskin Cree
Nation (2013)
31 Piikani Oldman
Hydro Limited
Partnership (2007)
32 Onion Lake First
Nation (2013)
33 Clarence Campeau
Development Fund
(2011)
34 Pinehouse Business
North (2011)
35 George Gordon First
Nation (2010)
36 Infinity Development
Corporation (2012)
3
2
4
6
7
11
10
12
13
5
8
9
NORTHWEST
TERRITORIES
14
Yellowknife
16
17
15
25
BRITISH
COLUMBIA
18
19
20
21
27
ALBERTA
26
28
23
22
Vancouver
Edmonton
29
30
32
34
24
31
Calgary
SASKATCHEWAN
33
36
35
ABORIGINAL PARTNERSHIPS 68
ATCO Sustainable Communities provides a full
range of pre-fabricated, culturally sensitive
building solutions for indigenous and other
remote communities.
From ATCO’s deep history
of developing Aboriginal
partnerships, and its design
and construction expertise working in
remote locations, ATCO Sustainable
Communities has inherited the
capabilities to design and build lasting
communities for Aboriginal and other
remotely located people. Facilities
can range from offices, schools,
gymnasiums and day care centres
to residential housing, Elders lodges,
hockey arenas and gas stations.
ATCO Sustainable Communities uses
its Holistic Engagement Process,
which involves building relationships
to understand a community so a
facility’s design reflects both its
cultural and physical needs. The
process also takes into account
the challenges of living in remote
locations, and training is offered
to ensure that qualified resources
exist within a community to manage
and maintain the community’s
infrastructure over the long term.
In only its second year of operation,
the company achieved geographic
expansion across Canada and
successfully undertook a variety of
projects ranging from fire halls and
gas stations to community centres
and schools. Many projects were
undertaken with local labour support
as ATCO Sustainable Communities
tackled remote environments and time
constraints.
In Nain, the northernmost town in
Labrador, which is represented by
the Nunatsiavut Government, the
company began construction of a new
community centre. The 15,000 sq. ft.
facility will be a gathering place and
features an Elder’s room, library, youth
centre, fitness room and gymnasium.
It will also serve as a community
emergency shelter upon completion in
November 2014.
When a flood destroyed an office
building and storage facility in
Nova Scotia, ATCO Sustainable
Communities was contracted by the
Millbrook First Nation to design and
build new facilities within 51 days
as they were essential to the First
Nation’s commercial fishing operation.
To complete the project on time for
March 2013, it was constructed in two
pre-fabricated modules in a climate
controlled factory and then shipped to
the site for quick assembly.
The Kainai Board of Education, an
organization of the Blood Tribe of
Treaty 7 in Alberta, turned to the
company to build a new addition
to the Saipoyi Community School
located in Standoff. The addition,
to be built using modular building
technology, will connect directly to
the existing building, matching its
architectural appearance, and will add
four new classrooms upon completion
in early 2014.
In June 2013, the Halalt First Nation
opened its new custom-designed
multi-purpose recreation centre at
Chemainus on Vancouver Island, BC.
Local labour was used for the project
and ATCO provided post-construction
operations and management training
so the community could run and
maintain the facility.
Near Slave Lake, AB, ATCO
Sustainable Communities was
contracted by the Swan River First
Nation to build a 6,600 sq. ft. multi-
purpose gymnasium and community
centre. The facility will connect to
the existing school so it can be used
for physical education purposes
when it is completed in June 2014.
Wapsewsipi Enterprises Ltd., the First
Nation’s construction company, was
contracted to prepare the area for
construction.
The company won contracts for
a number of other projects in
2013. A child and family services
administration facility for the Tsuu
T’ina Nation near Calgary was
completed in September 2013.
Scheduled for completion in 2014,
are a fire station for the Peerless Trout
First Nation near Slave Lake, AB; a
gas station for the Dene Tha First
Nation in Meander River, AB; and,
following the completion of a Daycare
and Headstart Centre in 2012, the
company is constructing a retail store
for the George Gordon First Nation in
Saskatchewan.
In 2013, ATCO Sustainable
Communities also established a new
partnership with the largest First
Nation in Manitoba to pursue new
business. The Relationship Agreement
with Chief Peguis Investment Corp.,
the economic development arm
of the Peguis First Nation, has the
two working together to provide
infrastructure solutions throughout
the province.
This Child and Family Services office was built for the Tsuu T’ina First Nation, located southwest of Calgary, AB.
69 2013 ANNUAL REPORT
ATCO SUSTAINABLE COMMUNITIES 70
ATCO IN THE COMMUNITY
ATCO and its people are committed to helping create healthy, vibrant
communities by developing meaningful partnerships with various
organizations and by providing time, expertise and financial support.
A TCO has many long-term
community investments
and legacy sponsorships
that have allowed the company to
truly make a lasting impact on the
communities where ATCO and its
people work, serve and live. The
company’s approach to community
investment has also become more
global as ATCO begins to build a
significant business presence in
countries such as Australia.
2013 HIGHLIGHTS
Honouring Canada’s
military at Spruce
Meadows
ATCO’s annual Military
Family Day at the Spruce
Meadows North American
equestrian tournament in
July allows the company
to honour the significant
community service
provided by the Canadian
Forces. Every year, military
personnel from ranks
across Alberta are selected
by their commanding
officers to participate in this
event.
Selected participants
come from Air, Navy
and Armed Forces and
many have had tours
of duty in Afghanistan.
They are role models within their
squadrons, demonstrating exemplary
commitment, leadership skills and
community service.
further enhances its contribution
by matching charitable donations
made to human health and wellness
organizations.
Matching generosity: ATCO EPIC
reaches $4.2 million
ATCO and its people pledged a
record $4.2 million to more than
500 charitable organizations in
2013 through the company’s annual
ATCO Employees Participating in
Communities (EPIC) fundraising and
ATCO EPIC Time
to Give programs.
The ATCO
EPIC program
combines
employee-led
fundraising
events, auctions,
friendly team
competitions
and pledges to
support charitable
organizations
across Canada.
Employees and
pensioners direct
their pledges to
the charity of
their choice and
ATCO absorbs
the administrative
costs of the
program. ATCO
2013
2012
$4.2M
$3.8M
2011
2010
2009
2008
2007
2006
$3.4M
$3.1M
$2.97M
$2.75M
$2.3M
$1.49M
EPIC DONATIONS
($ MILLIONS)
This year, ATCO Australia launched
the ATCO EPIC program and was
awarded the inaugural ‘Workplace
Supporter of the Year’ for the
company’s work supporting Kids Are
Kids!, a not-for-profit, community-
based provider of specialist therapy
services to children with development
disabilities.
Beyond supporting the annual ATCO
EPIC fundraising campaigns, ATCO
EPIC Time to Give was created to
recognize the contributions of ATCO
employees who volunteer their time
and talents to organizations that
make their communities a better
place to work and live. In 2013,
ATCO employees volunteered more
than 26,000 hours with charitable
organizations.
Longstanding support: Junior
Achievement and Alberta Games
ATCO expanded its partnership with
Junior Achievement (JA) to include
programs in Edmonton in addition
to Calgary this year. The company
has been involved with Junior
Achievement for more than 50 years.
71 2013 ANNUAL REPORT
ATCO IN THE COMMUNITY 72
Canadian Forces Corporal, Justin Jefferies, and his daughters, Lauren and Riley, visit with a member of the
Strathcona Mounted Troop during the ATCO Military Family Day.
Between these two organizations,
JA helped nearly 40,000 students
develop an entrepreneurial attitude,
a solid and practical understanding
of business and finance and a
commitment to community. By
developing a link between education
and the world of work, and by giving
youth the confidence and knowledge
they need to define personal
success, JA enhances students’
workforce readiness and encourages
them to pursue their dreams.
This year, ATCO also celebrated
its 25-year commitment to the
Alberta Games and the Alberta 55
Plus Games, the province’s premier
multi-sport events. These events
bring many benefits to both the host
community and to thousands of
Albertans who participate at local
and provincial levels.
Since 1988, ATCO Gas has delivered
its torch relay program and
sponsored the opening ceremonies
at 43 games in more than 50 Alberta
communities.
Building new cultural
partnerships: CinéfestOZ in
Australia
ATCO Australia began sponsoring
CinéfestOZ in 2013 — an annual,
five-day Australian and French Film
Festival held in the southwest region
of Western Australia. The event
recognizes the historical significance
of French explorers in the region and
showcases the best films of Australia
and France to a diverse audience of
local and international film lovers.
ATCO’s three-year sponsorship of
this event gives the company the
opportunity to contribute to the
cultural vibrancy of the region, while
increasing familiarity of the ATCO
brand with the community and local
business leaders.
Building Capacity Aboriginal
Employment Program: Northland
Utilities
For the past two years, the Northland
Utilities’ Building Capacity Aboriginal
Employment Program has been
focused on developing and
employing local Aboriginal residents
who are interested in the utility sector.
The program provides entry-level
and apprenticeship opportunities to
candidates in the communities where
they live and offers a comprehensive
northern benefit package, as well
as professional development and
mentorship.
Jacey Firth-Hagen is a good example
of the program’s success. She was
hired through the program as an
Engineering Assistant for Northland
Utilities in Yellowknife. Working with
Northland Utilities has also allowed
Jacey to pursue her other ambitions.
By night, Jacey is the host of Feel
Real Radio on a local radio station
in Yellowknife. Feel Real Radio is no
ordinary radio talk show. Through
interviews and local music, the show
celebrates Northwest Territories
youth who make healthy lifestyle
choices. It’s all part of “My Voice,
My Choice,” the Government of
Northwest Territories’ youth drug and
alcohol prevention campaign.
PROTECTING THE AVIAN HABITAT
ATCO maintains an Avian
Protection Program that benefits
the Ferruginous Hawk, osprey, swans
and Bald Eagles. Initiatives within the
program include diverting birds from
electrical equipment, carefully moving
nest sites and creating appropriate
nest habitats.
In 2006, heavy rains and winds
collapsed an eagle’s nest on the
Millennium Trail near Whitehorse.
The two eaglets in the nest were not
ready to fly and were stranded on the
ground until local officials spotted
them. Yukon Electrical crews helped
rescue the eaglets and eventually
donated a utility pole and assisted in
the construction of a new permanent
base for a nest.
Since then, Yukon Electrical crews
have unofficially adopted the nest
and continue to monitor and maintain
the nest when necessary.
In 2012, the Whitehorse office
installed a web camera to give the
community a bird’s eye view of the
eagles in the nest. Live viewing
began in May 2013 after a pair of
eagles moved into the nest earlier in
the year.
Viewers of the web cam were able to
witness the hatching of three eaglets
and watch them grow into fledglings
ready to take their first flights. The
web cam received more than one
million views from around the world.
Like the web cam viewers,
employees at Yukon Electrical have
grown attached to the birds and
appreciate how the live feed has
provided a glimpse into life in the
Yukon Territory, creating a community
among strangers. The company
has received numerous inquiries
and expressions of gratitude from
as far away as Singapore, Australia,
Mexico, England, The Czech
Republic, Switzerland, Germany,
Denmark, and almost every province,
territory and state across Canada
and the United States.
Yukon Electrical has been distributing
a DVD version of the recorded
season and is preparing an
educational activity book for schools
and groups with an interest in eagles.
The Yukon Electrical team activated
the web cam in February 2014 to
capture a new nesting season.
In 2013, ATCO Gas celebrated its 25th year of supporting the summer and winter Alberta Games.
73 2013 ANNUAL REPORT
PROTECTING THE AVIAN HABITAT 74
FINANCIAL
EXCELLENCE 2013
Electric System Operator (AESO)
direct-assigned projects. The Hanna
Regional Transmission Development
project was completed in July
2013 at a total cost of $650 million,
approximately $196 million of which
was incurred in 2013. The project
was completed on time and $60
million under budget. Construction
continues on the Eastern Alberta
Transmission Line. The total cost of
the project is $1.8 billion, of which
$938 million had been spent to the
end of 2013. The project is scheduled
for completion at the end of 2014.
Several other large transmission
infrastructure projects are either
underway or in the planning stages.
This investment is translating
into significant growth in Utilities’
earnings. Adjusted earnings of $179
million were $31 million, or 21%,
higher than the $148 million achieved
in 2012.
$390 million
2013 Adjusted
Earnings
Structures & Logistics
$96 million (25%)
Utilities $179 million (46%)
Energy $80 million (21%)
ATCO Australia $24 million (6%)
Corporate $11 million (2%)
Earnings growth in 2013 was also
driven by the Company’s power
generation business in Canada,
mainly as a result of higher realized
power prices and plant availability
in ATCO Power compared to the
prior year. Adjusted earnings for the
Energy segment were $80 million in
2013, $8 million, or 11%, more than
2012.
CAPITAL REDEPLOYMENT
ATCO has a portfolio of diverse
businesses. We continuously
review our holdings to evaluate
opportunities to monetize non-
core assets. The viability of such
opportunities depends on the outlook
of each business as well as general
market conditions. This ongoing
focus supports the optimal allocation
of capital across the ATCO Group.
The sale of the ATCO Structures &
Logistics’ South American operations
in 2013 is the most recent example
of this capital redeployment strategy.
We took the opportunity to monetize
this asset at a time when activity in
South America, particularly for the
mining sector in Chile and Peru,
began to slow. In September 2013,
ATCO Structures & Logistics sold
its 50% interest in Tecno Fast ATCO
S.A. to its joint venture partner for
cash proceeds of $124 million.
ATCO is redeploying that capital by
re-investing in Canadian Utilities’
dividend reinvestment plan. This
dividend re-investment further
supports funding of the significant
capital growth program underway in
the Utilities and our non-regulated
business.
Brian R. Bale
Senior Vice President &
Chief Financial Officer
ATCO achieved record
adjusted earnings of $390
million in 2013, an increase of
$20 million, or 5%, over the previous
high of $370 million in 2012. The
growth in adjusted earnings was
the result of two main drivers: utility
investments, and higher realized
power prices and plant availability.
The Utilities segment continued
to make significant investment in
infrastructure in Alberta. Capital
expenditures of $2.2 billion in 2013
were marginally higher than the $2.1
billion spent in 2012. Over the last
three years, capital expenditures in
the Utilities totaled $5.6 billion.
The majority of the Utilities’
expenditure was in the transmission
operations of ATCO Electric and
was predominantly for Alberta
FINANCIAL STRENGTH
Total assets grew from $14 billion at
the beginning of 2013 to $16 billion
at year end. That growth occurred
mainly in the Utilities segment
because of the significant capital
investment.
DIVIDENDS
The Board of Directors increased
the quarterly dividends paid per
Class I and Class II Share for the four
quarters of 2013 from 16.375 cents
per share to 18.75 cents per share,
an increase of 15% over 2012.
We financed this asset expansion
with cash flow from operations,
Canadian Utilities’ dividend
reinvestment plan and prudent
access to the debt and preferred
share capital markets. We capitalized
on the current low interest rate
environment and the capital markets’
demand for our public debt offerings
by issuing $600 million of 30-year
debt, $225 million of 40-year debt
and $75 million of 50-year debt,
at attractive interest rates ranging
from 4.558% to 4.855%. In addition,
during the first half of 2013, Canadian
Utilities Limited issued $400 million
of equity preferred shares with a
preferred dividend rate of 4.50% to
finance capital expenditures.
ATCO maintained its strong
investment grade credit ratings,
which allow access to capital
markets at competitive rates. In
2013, Standard and Poor’s Ratings
Services and DBRS Limited re-
affirmed their ratings of the Company
as “A” with a stable outlook and “A”
(low) with a stable trend, respectively.
In addition, Standard and Poor’s
upgraded its rating from “BBB”
(Positive) to “A-” (Stable) for ATCO
Gas Australia.
On January 9, 2014, the Board of
Directors declared a first-quarter
dividend of 21.5 cents per share.
That amount represents a 15%
increase over the quarterly
dividends per share paid in
2013.
The Board of Directors has
approved an increase in ATCO’s
common share dividends each
year since 1993 — a track
record we are very proud of.
0.75
0.47
0.32
0.17
0.06
1993
1998
2003
2008
2013
Annual Dividends 1993-2013
($ per share)
MOVING FORWARD
A further $5.5 billion of capital
expenditures is planned in the
Utilities in the three-year period from
2014 to 2016. ATCO Electric alone
is planning to spend $4 billion. Of
this amount, $2.3 billion is related
to projects directly assigned from
the AESO to meet the needs it has
identified to reinforce and expand
Alberta’s electricity transmission
system to meet future demand.
~2
~2
~1.5
ATCO Pipelines
ATCO Gas
ATCO Electric
Distribution
ATCO Electric
Transmission
2014
2015
2016
Utilities Capital Expenditures
($ billions)
Our financial strategy is based on
delivering long-term shareowner
value and generating reliable
earnings and cash flows with the
opportunity for premium returns.
Going forward, we remain committed
to maintaining our strong investment
grade credit ratings, which are
supported by our conservative
financial policies and prudent capital
management.
* Adjusted earnings are earnings attributable to Class I and Class II shares after adjusting for the timing of revenues and expenses associated with rate
regulated activities. Adjusted earnings also exclude one-time gains and losses, significant impairments and items that are not in the normal course of
business or day-to-day operations. Descriptions of the adjustments are provided in the Segmented Information note of the 2013 Financial Statements.
75 2013 ANNUAL REPORT
FINANCIAL EXCELLENCE 2013 76
CONSOLIDATED ANNUAL RESULTS
CONSOLIDATED OPERATING SUMMARY
(Millions of Canadian dollars, except as indicated)
EARNINGS STATEMENT
Revenues
Earnings attributable to Class I and Class II shares
Adjusted earnings (4)
- Structures & Logistics
- Utilities
- Energy
- ATCO Australia
- Corporate & Other and eliminations
Adjusted earnings (4)
BALANCE SHEET
Cash(5)
Total assets
Capitalization
- Bank indebtedness
- Long-term debt
- Non-recourse long-term debt
- Preferred shares
- Non-controlling interests
- Share owners’ equity
Capitalization
CASH FLOW STATEMENT
Funds generated by operations (6)
Capital expenditures (7)
- Structures & Logistics
- Utilities
- Energy
- ATCO Australia
- Corporate & Other & eliminations
Capital expenditures
PER SHARE DATA
Earnings per share ($) (8)
Dividends paid per share ($) (8)
Equity per share ($) (8)
Class I Non-Voting closing share price ($) (8)
Class II Voting closing share price ($) (8)
IFRS (1)
2012 (3)
GAAP (2)
2009
2010
2011
2013
4,359
418
4,012
370
3,991
327
3,486
281
3,109
283
96
179
80
24
11
390
114
148
72
23
13
370
89
124
86
10
21
330
74
126
76
9
11
296
741
16,010
470
14,055
755
12,453
645
10,084
2
6,230
165
-
3,153
2,860
12,410
-
5,352
186
-
2,551
2,370
10,459
-
4,389
378
-
2,500
2,163
9,430
-
3,090
422
-
2,202
1,978
7,692
1,869
1,636
1,514
1,234
116
2,178
68
89
67
2,518
3.64
0.75
24.84
46.66
46.35
199
2,142
42
74
30
2,487
3.21
0.66
20.61
40.36
40.25
132
1,316
33
23
24
1,528
2.83
0.57
18.74
30.12
29.66
98
788
26
27
13
952
2.42
0.53
17.08
29.58
29.60
2.45
0.50
17.26
23.09
22.92
61
102
105
5
5
278
1,020
9,955
-
3,158
497
150
2,230
2,010
8,045
935
41
776
81
70
19
987
Full disclosure of all financial information is available on the SEDAR website - www.sedar.com.
(1) Financial results for the years ended December 31, 2010, 2011, 2012 and 2013
have been prepared in accordance with International Financial Reporting
Standards (IFRS).
(2) Financial results for the year ended December 31, 2009 have been prepared in
accordance with Canadian Generally Accepted Accounting Principles (GAAP) in
effect prior to the adoption of IFRS.
(3) Financial results for the year ended December 31, 2012 have been restated
to reflect changes due to the adoption of IFRS 11 Joint Arrangements and
amended IAS 19 Employee Benefits.
2011, 2012 and 2013 are provided in the Segmented Information note of the
2011, 2012 and 2013 Financial Statements and for 2009 are provided in the
Significant Non-Operating Financial Items section of the 2009 Management’s
Discussion & Analysis. These documents are available on SEDAR.
(5) Cash is defined as cash and cash equivalents less current bank indebtedness.
(6) Funds generated by operations is defined as cash generated from operations
before changes in non-cash working capital. This measure is not defined by
IFRS and GAAP and may not be comparable to similar measures used by other
companies.
(4) Adjusted earnings are earnings attributable to Class I and Class II Shares
(7) Includes purchases of property, plant and equipment and intangibles, including
after adjusting for the timing of revenues and expenses associated with rate-
regulated activities. Adjusted earnings also exclude one-time gains and losses,
significant impairments and items that are not in the normal course of business
or a result of day-to-day operations. Descriptions of the adjustments for 2010,
capitalized interest.
(8) Per share data for the years ended December 31, 2009, 2010, 2011 and 2012 have
been restated to reflect the two-for-one share split completed on June 14, 2013.
(Millions of Canadian dollars, except as indicated)
2013
2012
2011
2010
2009
Structures & Logistics
Capital expenditures (1) (2)
Workforce housing lease fleet (units in thousands) (2)
Workforce housing lease fleet utilization (%) (2)
Space rental lease fleet (units in thousands) (2)
Space rental lease fleet utilization (%) (2)
Utilities
Natural gas distribution operations
Capital expenditures(1)
Pipelines (thousands of kilometres)
Maximum daily demand (terajoules)
Natural gas distributed (petajoules)
Average annual use per residential customer (gigajoules)
Customers at year-end (thousands)
Electricity distribution and transmission operations
Capital expenditures(1)
Power lines (thousands of kilometres)
Electricity distributed (millions of kilowatt hours)
Average annual use per residential customer (kWh)
Customers at year-end (thousands)
Natural gas transmission operations
Capital expenditures(1)
Pipelines (thousands of kilometres)
Energy
Capital expenditures(1)
Generating capacity (megawatts)
Generating capacity owned (megawatts)
Availability (%)
Natural gas processed (mmcf/day)
- Natural gas liquids extraction (mmcf/day)
- Natural gas gathering and processing (mmcf/day)
Natural gas gathering lines (kilometres)
ATCO Australia
Natural gas distribution operations(3)
Capital expenditures(1)
Pipelines (thousands of kilometres)
Maximum daily demand (terajoules)
Natural gas distributed (petajoules)
Average annual use per residential customer (gigajoules)
Customers at year-end (thousands)
Power generation and other operations
Capital expenditures(1)
Generating capacity (megawatts)
Generating capacity owned (megawatts)
Availability (%)
116
3
83
13
77
199
3
86
13
81
132
3
87
19
80
98
3
78
16
78
41
2
74
13
73
268
40
2,064
249
117
1,119
1,763
81
11,283
7,743
248
147
9
68
4,591
2,541
94
376
340
36
1,122
88
14
118
26
15
683
1
299
193
95
323
39
2,128
248
121
1,096
1,732
76
10,974
7,604
244
288
38
2,069
247
121
1,074
916
74
10,596
7,747
240
197
38
2,169
237
120
1,057
190
38
2,184
250
121
1,037
507
73
498
72
10,532 10,431
7,671
233
7,555
237
87
9
112
9
84
8
88
8
42
4,590
2,550
90
398
350
48
1,097
72
13
125
27
15
667
2
299
193
98
33
4,590
2,550
91
393
342
51
1,171
26
4,658
2,618
93
401
337
64
1,075
81
4,672
2,625
95
401
329
72
1,000
18
13
106
12
15
653
5
299
193
98
-
-
-
-
-
-
-
-
-
-
-
-
27
299
193
90
70
213
107
97
(1) Includes purchases of property, plant and equipment and intangibles, including
capitalized interest. Amounts for the years ended December 31, 2010, 2011,
2012 and 2013 have been prepared in accordance with International Financial
Reporting Standards (IFRS). Amounts for the year ended December 31, 2009
have been prepared in accordance with Canadian Generally Accepted
Accounting Principles in effect prior to the adoption of IFRS.
(2) Capital expenditures, lease fleet and utilization for the year ended
December 31, 2012 have been restated to reflect changes due to the
adoption of IFRS 11 Joint Arrangements.
(3) 2011 amounts are for the 5 months of operation since the acquisition
of ATCO Gas Australia on July 29, 2011.
77 2013 ANNUAL REPORT
CONSOLIDATED OPERATING SUMMARY 78
DIRECTORS
OFFICERS
OFFICE OF THE CHAIR
Robert T. Booth, Q.C.
Partner, Bennett Jones, LLP
Bertrand P. Collomb
Honorary Chairman,
Lafarge S.A.
David A. Dodge
O.C., LL.D., F.R.S.C.
Senior Advisor,
Bennett Jones LLP
Linda A. Heathcott
President & Chief Executive
Officer, Spruce Meadows Ltd.
Helmut M. Neldner
Corporate Director
Michael R.P. Rayfield
Corporate Director
Robert J. Routs
Chairman of the Supervisory
Boards of AEGON N.V. and
Royal DSM N.V.
Nancy C. Southern
Chair, President & Chief
Executive Officer, ATCO Ltd.
Ronald D. Southern
Founder, ATCO Group
Nancy C. Southern
Chair, President &
Chief Executive Officer
Siegfried W. Kiefer
Chief Operating Officer,
Power & Utilities
Brian R. Bale
Senior Vice President &
Chief Financial Officer
Henry G. (Harry) Wilmot
Chief Operating Officer,
Energy & Industrials
Susan R. Werth
Senior Vice President &
Chief Administration Officer
CORPORATE OFFICE
Erhard M. Kiefer
Senior Vice President,
Human Resources & Corporate Services
Kevin P. Hunt
Vice President, Internal Audit
& Risk Management
Pamela G. Moellmann
Group Vice President,
Special Projects
Carson J. Ackroyd
Vice President, Marketing
& Communications
Chad L. Gareau
Vice President, Finance & Treasury
Brian G. Milne
Vice President,
Risk Management
Robert C. (Rob) Neumann
Vice President, Controller
Alan M. Skiffington
Vice President &
Chief Information Officer
Richard D. Stone
Vice President, Legal & Corporate
Secretarial
Tracey L. Wallace
Vice President, Human Resources
Clinton G. (Clint) Warkentin
Vice President & Treasurer
Carol Gear
Corporate Secretary
PRESIDENTS AND SENIOR EXECUTIVES OF PRINCIPAL OPERATING SUBSIDIARIES
J.D. Patrick Creaghan
President, ATCO Energy Solutions
John W. Ell
President, ATCO Power
Scott J. Garvey
President, ATCO I-Tek
Brian R. Hahn
President, ATCO Pipelines
Roberta L. (Bobbi) Lambright
President, Distribution Division,
ATCO Electric
Steven J. Landry
Managing Director & Chief
Operating Officer, ATCO Australia
Settimio F. (Sett) Policicchio
President, Transmission Division,
ATCO Electric
Boris I. Rassin
President,
ATCO Sustainable Communities
Joseph J. (Joe) Schnitzer
President, ASHCOR Technologies
William C. (Bill) Stephens
President, ATCO Gas
Henry G. (Harry) Wilmot
President, ATCO Structures & Logistics
Ronald D. Southern
C.C., C.B.E., LL.D.
Founder, ATCO Group
Charles W. WIlson
Lead Director, ATCO Ltd.
79 2013 ANNUAL REPORT
OFFICERS 80
ATCO’S BEAUTIFUL ALBERTA HERITAGE
GENERAL INFORMATION
ATCO Group has featured scenes of Alberta in annual reports
since 1990, in recognition of its beautiful Alberta Heritage.
INCORPORATION
REGISTRAR & TRANSFER AGENT
ATCO Ltd. was incorporated under the laws of the
Class I Non-Voting and Class II Voting Shares
Province of Alberta on August 31, 1962.
CST Trust Company
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
Calgary/Montreal/Toronto/Vancouver
Telephone:
8:30 a.m. to 6:30 p.m. ET
Monday - Friday
Toll free in North America: 1-800-387-0825
Outside of North America: (416) 682-3860
Fax in North America: 1-888-249-6189
Fax outside of North America: 1-514-985-8846
www.canstockta.com
Mailing Address:
CST Trust Company
P.O. Box 700
Station B
Montreal, QC
Canada H3B 3K3
ANNUAL MEETING
The Annual Meeting of Share Owners
will be held at 10:00 am on Wednesday, May 14, 2014,
at The Fairmont Palliser Hotel, 133 - 9th Avenue SW,
Calgary, AB.
AUDITORS
PricewaterhouseCoopers LLP
Calgary, AB
LEGAL COUNSEL
Bennett Jones LLP
Calgary, AB
STOCK EXCHANGE LISTINGS
Class I Non-Voting Shares - Symbol ACO.X
Class II Voting Shares - Symbol ACO.Y
Listing: The Toronto Stock Exchange
INVESTOR RELATIONS
Email: investorrelations@atco.com
Telephone: (403) 292-7500
Fax: (403) 292-7532
Mailing Address:
c/o ATCO Group Investor Relations
1500, 909 - 11th Avenue SW
Calgary, AB
Canada T2R 1N6
81 2013 ANNUAL REPORT
GENERAL INFORMATION 82
700, 909-11th Avenue SW, Calgary, Alberta T2R 1N6
Telephone (403) 292-7500
Fax (403) 292-7623
www.atco.com
CHAPTER TITLE FOR EASY REFERENCE 83