WINDSOR CANADA UTILITIES LTD.

Notes to the Consolidated Financial Statements

(in thousands of Canadian dollars)

Year ended December 31, 2019

1. Reporting entity:

Windsor Canada Utilities Ltd. (“WCUL” or the “Corporation”) is a holding company owned by its sole shareholder, the Corporation of the City of Windsor (the “City”). WCUL was incorporated December 1999 under the Business Corporations Act (Ontario). The principal business of WCUL is to provide strategic direction and financing to the operations of ENWIN Utilities Ltd. (“EWU”), a rate-regulated distribution company and ENWIN Energy Ltd. (“EWE”), a non-regulated service company. The address of WCUL’s registered office is 787 Ouellette Avenue, Windsor, Ontario, Canada.

The principal activity of WCUL, through its wholly-owned subsidiary, EWU, is the ownership and operation of the electricity distribution grid in the City. WCUL, through its wholly-owned subsidiary, EWE, is also responsible for the provision of sentinel lighting to the businesses of the City and street lighting maintenance services to the City.

These financial statements are presented on a consolidated basis and include the following subsidiaries: EWU and EWE. Hereafter, for purposes of these notes, unless specifically referenced, any and all references to the “Corporation” refer to WCUL and its subsidiaries EWU and EWE.

On November 6, 2012, EWU and the Windsor Utilities Commission (the “Commission”) entered into a Water System Operating Agreement (“WSOA”), whereby EWU agreed to provide services to the Commission with respect to operating the water treatment and distribution system as well as District Energy. The services include: management, administrative services, construction operations, and maintenance services. EWU is responsible for providing all personnel required to operate the water system and District Energy. Pursuant to the terms of the WSOA and the associated Employee Arrangement Agreement, also dated November 6, 2012, the Commission transferred all non-unionized employees and all unionized employees of the Commission to EWU. The Commission is a local board of the City.

Through its wholly-owned subsidiary, EWE, the Corporation has a joint venture investment in ONtech Rapid Coatings Inc. (“ONtech”), which is accounted for using the equity method.

The Corporation’s arrangements with its subsidiaries, the Commission and the City are subject to the Ontario Energy Board’s (“OEB”) Affiliate Relationships Code, which is a code prescribed by and issued pursuant to the Ontario Energy Board Act, 1998.