Hydro One and Cap Gemini Ernst & Young announce signing of $1 billion (CAN) outsourcing agreement

Toronto, Canada, Feb. 13, 2002 — Hydro One Networks Inc. and Cap Gemini Ernst & Young Canada Inc. have announced an agreement that will result in Inergi LP managing and operating existing business processes and technology enabled services for Hydro One.

Inergi is a limited partnership owned by BTS – a 100% subsidiary of Cap Gemini Ernst & Young Canada Inc. The 10-year agreement is valued at approximately $1 CDN billion. Under the agreement, more than 900 employees will move from Hydro One to Inergi, effective March 1, 2002.

Employees of technology focused Inergi will provide Enterprise Technology Services, Human Resources Payroll, Supply Chain, Customer Service Operations and Settlements, and Accounting services to Hydro One.

The Customer Services Operations are to be managed by Vertex Customer Management (Canada) Limited under subcontract from Inergi. “This arrangement with Inergi will allow us to continue to concentrate on our core wires business,” said Hydro One President and CEO Eleanor Clitheroe.

“It also gives our transferring employees growth opportunities in their area of expertise.” Outsourcing its IT and business processes to Inergi provides Hydro One with an opportunity to obtain more competitively priced services for non-core activities for an extended period of time.

“This pending agreement positions Cap Gemini Ernst & Young as the leader in the Energy Operate market in North America, and reinforces CGE&Y Canada’s presence in the overall outsourcing space.” said Eric Morgan, CEO of Cap Gemini Ernst & Young Canada. “Hydro One provides us with a unique critical mass of outstanding technology and energy professionals and infrastructure to better serve the energy industry in North America.”

Over the next six to 12 months, new business processes will be developed and implemented by the parties to enhance operational efficiencies and establish volume and service levels.

Hydro One Networks Inc., a subsidiary of Hydro One Inc., owns and operates the largest transmission and distribution system in Ontario and one of the 10 largest in North America. Hydro One Networks has approximately 1.2 million distribution customers in Ontario.

Hydro One Inc., through its subsidiaries, is principally engaged in electricity transmission, distribution, telecommunications and energy services businesses. For company information, please visit www.HydroOne.com.
Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. More information about individual service lines, offices and research is available at www.cgey.com

Cap Gemini Ernst & Young Canada is a Canadian management and information technology consulting firm, providing outsourcing capabilities, strategy and technology consulting services, systems integration and technology development on a global scale. For company information visit www.vertex.co.uk.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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