CALGARY, AB, Nov. 30, 2021 /CNW/ - ATCO Ltd. (TSX: ACO.X)
(TSX: ACO.Y) / Canadian Utilities Limited (TSX: CU) (TSX:
CU.X)
An internal investigation undertaken by ATCO showed that
failures in the company's procedures and disclosure processes
resulted in contraventions of the Inter-Affiliate Code of Conduct,
a set of rules ATCO's regulated companies follow to ensure fair
business practices and proper disclosure.
ATCO deeply regrets the situation and has already proposed a
number of corrective actions to the Alberta Utilities Commission to
improve its contracting and disclosure practices to ensure this
type of issue never happens again.
The issue concerns a contract
awarded by ATCO Electric to a
contractor affiliated with a First Nation community.
Based on the findings of ATCO's internal investigation of these
issues, which was unfortunately delayed by the untimely death of a
senior ATCO executive, ATCO's leadership personally commits to
learn from the process and disclosure failures and to improve
policies and procedures. It does so with the full support of our
Boards of Directors and our Audit Committee.
"This matter, which was part of an internal investigation that
began this past summer, involves the critical issue of fairness and
equity for our Indigenous neighbours," said Melanie Bayley, President, ATCO Electric. "It
must be noted that the driver for the decisions that were made was
about honouring local First Nation commitments and ATCO's overall
commitment to Truth and Reconciliation, which includes promoting
economic participation and capacity building in the communities in
which we operate our utility systems."
In its effort to honour these commitments, ATCO executed the
contract, however the rates were higher than market. ATCO failed to
properly disclose these contracting issues to the Alberta Utilities
Commission (AUC) and the Alberta Electric System Operator.
"Providing the customers and communities of Alberta with electricity is ATCO's privilege
and honour and we regret the breakdown of our processes that led to
this situation," added Bayley. "The reasons for our errors
are complex, occurred over a five-year period and are not solely
attributable to any one person or team. However, through this
process we have identified ways in which we can improve and do
better. ATCO fully acknowledges that we should have handled the
disclosure of this situation to the Alberta Utilities Commission
and the Alberta Electric System Operator differently than we
did."
The issue has also been investigated by the AUC's enforcement
arm, which is proposing the matter be dealt with through the
Commission's public hearing process. ATCO is fully cooperating with
the AUC's regulatory process and has shared with the AUC the
results of ATCO's investigation and our proposed corrective
measures, some of which are already underway. These include the
amendment of our regulatory application that is currently before
the AUC, which will ensure customers' rates don't include any costs
above fair market value related to the issues in question. The
measures also include enhanced procurement and contracting policies
and new training and education programs.
With approximately 6,200 employees and assets of $22 billion, ATCO is a diversified global
corporation with investments in the essential services of
Structures & Logistics (workforce and residential housing,
innovative modular facilities, construction, site support services,
workforce lodging services, facility operations and maintenance,
defence operations services, and disaster and emergency management
services); Utilities (electricity and natural gas transmission and
distribution, and international electricity operations); Energy
Infrastructure (electricity generation, energy storage and
industrial water solutions); Retail Energy (electricity and natural
gas retail sales); Transportation (ports and transportation
logistics); and Commercial Real Estate. More information can be
found at www.ATCO.com.
Investor Inquiries:
Colin
Jackson
Senior Vice President, Finance, Treasury, Risk &
Sustainability
Colin.Jackson@atco.com
403 808 2636
Media Inquiries:
Kurt
Kadatz
Senior Manager, Corporate Communications
Kurt.Kadatz@atco.com
587 228 4571
Forward-Looking
Information:
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Certain statements
contained in this news release may 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.
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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.
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The Company's
actual results could differ materially from those anticipated in
this forward-looking information as a result of regulatory
decisions, competitive factors in the industries in which the
Company operates, prevailing economic conditions (including as may
be affected by the COVID-19 pandemic), and other factors, many of
which are beyond the control of the Company.
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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.
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Any
forward-looking information contained in this news release
represents the Company's expectations as of the date hereof, and is
subject to change after such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
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SOURCE ATCO Ltd.