Today, Jennifer Williams, President and CEO of Newfoundland and Labrador Hydro (Hydro), announced the company is streamlining its executive structure. The team chosen to lead the province’s crown utility has been reduced from 18 positions down to 11, made up of 10 vice presidents and the CEO.

This streamlining is in support of the June 23, 2021 announcement made by the Government of Newfoundland and Labrador, to move Nalcor Energy operations under Hydro and immediately begin efforts to move to a steady-state utility operation focused on providing safe and reliable electricity, while reducing costs and removing duplication.

Effective immediately, a new compensation framework for the Hydro executive team has also been implemented. The removal of “Executive Vice President” and “Senior Vice President” level positions, along with adjusted compensation that includes the elimination of vehicle allowances and performance bonuses, results in an over 35% reduction in total executive compensation. In total, these changes will achieve annual savings of $2.2 million in executive compensation costs at Hydro.

“Hydro is committed to meeting government’s mandate to remove duplication and reduce costs and to become a true steady-state utility operation,” said Jennifer Williams. “Newfoundland and Labrador Hydro will continue to evolve and demonstrate our ability to meet the expectations of the people we serve – the people of Newfoundland and Labrador. We have an opportunity to re-build trust and demonstrate the value we bring to the province every day.”

“Newfoundland and Labrador Hydro has been providing an essential service to the people of this province since 1954,” said Williams. “Now is the time for us to renew and strengthen this company; to become the steady crown utility that customers can rely on. Led by the new executive team, Hydro will continue to identify opportunities to reduce our operating costs, without sacrificing safety or reliability and through appropriate organizational change.”

Work remains to safely and reliably bring the Muskrat Falls assets into operations and integrate them into the provincial electricity system. However, it is imperative that costs are absorbed wherever possible to keep electricity rates from escalating beyond what has been committed through rate mitigation.

Further work will continue in 2022, to ensure the organization is structured appropriately to be an efficient utility that best serves the people of the Province.