1. Common Voice Northwest Energy Task Force Presentation to Port Arthur Rotary Club

2. Energy Task Force Today’s presentation HISTORY ENERGY TASK FORCE QUESTIONS

3. History Ontario Forestry Coalition Forging the Future NOMA Energy Sub-Committee Common Voice Northwest Series of Task Forces Energy – 2007

4. Energy Task Force Membership Operator of Ontario Hydro for NWO Operator of an Ontario Nuclear Station 2 Hydro Utility managers/CEO’s 1 Retired Hydro Utility manager/energy consultant Electrical Technician Economic Development Staff and Board Members Municipal Elected Officials NOMA NOACC/Thunder Bay Chamber NODN

5. Energy Task Force Supported by: Ontario Mining Association Energy Committee Society of Energy Professionals of Ontario Thunder Bay Community Economic Development Commission City of Thunder Bay Town of Atikokan

6. Energy Task Force Role Prime Energy Research Body in the Northwest Inform on key energy issues: NOMA NOACC City of Thunder Bay Town of Atikokan Advisor to Weiler, Maloney, Nelson (John Cyr) on behalf of the above organizations

7. Energy Task Force Active in: Integrated Power System Plan – phase 1 and 2 Ontario Energy Board IPSP East West Tie Reliability Must Run Contract Micro Embedded Generation initiative Regional Planning Atikokan GS Conversion TB GS Conversion Merging of Local Distribution Companies (LDC) Long Term Energy Plan

8. The Challenges Inadequate Transmission and Distribution across the Northwest Failure of Government Agencies to plan for the needs of the Region Decisions by the Ontario Government Changing of policy from ‘public good’ to ‘business case’ Outlawing burning of coal to create electricity December 31, 2014 Suspending the conversion of the TBGS to natural gas Lack of understanding of the economic future of the Northwest and the role that electricity plays

9. Where the ETF Started Inadequate Transmission and Distribution across the Northwest

10. 10 N.W.O. ELECTRICAL SYSTEM RED – Transmission GREEN - Distribution

11. DEFICIENCIES & OPPORTUNITIES Red Lake – Ear Falls 11 Instability, reliability and lack of capacity in the service to Red Lake

12. DEFICIENCIES & OPPORTUNITIES Pickle Lake Instability, reliability and lack of capacity in the service to Pickle Lake & Musselwhite Mine

13. DEFICIENCIES & OPPORTUNITIES Greenstone Radial Line Ring of Fire

14. N.W.O. ELECTRICAL SYSTEM OPPORTUNITIES

15. Entry Points for Remote Communities

16. DEMAND MINING FORESTRY TRANS-CANADA PIPELINES ANCILLARY GROWTH

17. DEMAND EXISTING (2012) 710 MW MINING PROJECTED BY ETF 780 MW by 2020

18. DEMAND FORESTRY PROJECTED BY ETF 18 MW by 2020

19. DEMAND REMOTE COMMUNITIES PROJECTED BY ETF 42 MW by 2020

20. DEMAND TCPL PROJECTED BY ETF 110 MW by 2020 Engineering research may adjust this up or down

21. DEMAND TOTAL ETF PROJECTION 1660 MW by 2020

22. DEMAND OPA PROJECTED GROWTH (by 2020) January 2013 70 MW growth May 2013 690 MW (1000% increase)

23. DEMAND Difference between ETF & OPA January – 990 MW May – 260 MW ETF has done its job to educate the OPA and Government on the Demand

24. DEMAND OPA agrees that Demand should be met by supply Question is HOW

25. SUPPLY OPA Solutions include: Enhancing the existing East West Tie Line Renegotiating existing demand response contracts with Pulp and Paper industry Getting more power out of existing hydro dams Importing power from the west Conservation

26. SUPPLY OPA Solutions DO NOT include: Converting Thunder Bay Generating Station to Natural Gas Too expensive Not needed for power demand

27. SUPPLY OPA Solutions include: Enhancing the existing East West Tie Line We need the supply from the East to meet energy demands City of Thunder Bay, on behalf of ETF (and NOACC and NOMA) was before OEB in support of the concept. OEB has selected ‘transmitter’ to plan for the line A part of the solution for the Northwest’s needs

28. SUPPLY OPA Solutions include: Renegotiating existing demand response contracts with Pulp and Paper industry 50 MW of reduction Minimal opportunity to increase

29. SUPPLY OPA Solutions include: Getting more power out of existing hydro dams Operators already maximize output Minimal results based on realities of existing system Large part of system run-of-the-river

30. SUPPLY OPA Solutions include: Importing power from the west No power available from Manitoba until 2025 (approx 150 MW) Minnesota and Wisconsin buy power from Manitoba (therefore no power to sell) OPA says they can get power from ‘spot market’ – translation – they can buy power from coal producing generators in USA

31. SUPPLY OPA Solutions include: Conservation By 2020 78% of the electrical load will be industrial A large % of that industrial load will be new and will take advantage of the most advanced energy efficiency technology = minimal savings from conservation

32. SUPPLY Thunder Bay Generating Station Essential for the Northwest Essential for Thunder Bay Essential for the Pulp and Paper Industry (stability) and the mining industry (supply) Asset paid for by the rate payers of Ontario Jobs retained in Thunder Bay as opposed to located in western provinces or USA (and paying taxes to Ontario)

36. RELIABILITY MUST RUN CONTRACT OEB has approved a RMR Contract for the Thunder Bay GS for 2013 OEB determined that one 150 MW unit was essential for system stability to meet the needs of Thunder Bay and region OPG will have to apply for 2014 and beyond Demand will only increase over time

37. Long Term Energy Plan Province has asked for input into the next Long Term Energy Plan ETF has prepared a submission Will be seeking endorsation by NOMA, NOACC and individual municipalities Deadline is September 16 for comment

38. Our Ask to Government Resume conversion of the Thunder Bay Generating Station Accelerate the planning and construction of transmission improvements to: Ear Falls Red Lake Pickle Lake Plan for Transmission Upgrades to Greenstone Create a regional planning body for the Northwest

39. THANK YOU QUESTIONS?