1. Reliable Power Reliable Markets Reliable People 2008/2009 Draft Budget Budget Review Process Meeting August 28, 2007

2. 2 July 2007 YTD Results

3. 3 Key Assumptions Base Salary Increase 2008 Budget 7% 2009 Budget 7% 2007 Budget 10% 2007 Actual 9% Staffing 2008 and 2009 budgets exclude new positions for IT pending impact assessment of business priorities (work in progress) 13 capital staff, unchanged from 2007 budget (work in progress) Vacancy Rate 2008 Budget 5% 2009 Budget 5% 2007 Budget 5% YTD July 2007 Actual 8% Benefit Rate (AHC, RRSP, CPP, EI, WCB, STD, employee assistance, parking) 2008 - 23% Benefit Load Factor 2009 - 23% Benefit Load Factor 2007 22% Benefit Load Factor YTD July 2007 – 22% Incentive Compensation No change in eligibility Budget at 50% of eligibility Average payout in 2007 was approximately 62% eligibility Payout of $3.1 million Consulting – Related to the IT department, 2007 budget held constant in 2008 and 2009 pending impact assessment of business priorities (work in progress)

4. 4 Overall Budget Summary 243 266 280 284

5. 5 Proposed Staff Additions

6. 6 Administrative Budget