1. Balanced Portfolio for Reliable Electricity System YES Inc. Email: yes@yesenergies.comyes@yesenergies.com Brief Assessment

2. Generic Electricity Supply Hierarchy Base Load* Source Conservation Nuclear Hydro Criteria Cycling: Not recommended Cost: Low No or low environmental impact Intermediate Load* Criteria Cycling: Possible, low frequency Cost: Mid range No or low environmental impact Criteria Cycling: More frequent Cost: High Source Coal Gas The odd river when available Source Demand response Gas Oil Coal Imports Peak Load Evaluation Criteria Reliable electricity supply on demand Competitive cost of power Environmental Impact 2 * Renewable when available YES Inc.

3. Healthy Electricity Supply Overriding consideration: Make sector as efficient as it can be through the implementation of policies that allow supply diversity to develop! Five key criteria can affect the health of the local electrical power supply. Each item needs to be properly considered in planning and implementing a healthy power supply system for any State/Province. 1.Reliability. Reliable electricity supply on demand. 2.Security of fuel supply. Security of fuel supply is a high priority for the sector. Imports of fuel from unstable countries or regions can produce instability of supply and/or price volatility. * Diverse supply can help moderate severe price swings. 3 YES Inc.

4. Healthy Electricity Supply 3.Diversity of electricity supply. a) A balanced mix of power plant types eg. water power, nuclear, coal, renewable, natural gas, oil, etc. b) Smaller economic units in general are better than one large central plant ie. keep a balance c) Conservation d) Demand Management/Load Shifting e) Imports There is a potential risk (common mode failure) if a State relies on one: - technology - size - location - supplier 4 YES Inc.

5. Healthy Electricity Supply 4.Price. Competitively priced electricity is essential for the economic survival of all businesses in any State. Policy decisions must recognize the impact of power prices on the competitiveness of State businesses. Factors affecting power price: Where the State has no control -Replacement of aging plants -Fuel price/Refurbishment escalation Where the State has control -Policy decisions that result in price increases -Elimination of abundant local fuel source such as Nuclear or clean coal 5. Sustainability. Utilizing diminishing fossil fuel resources (eg. natural gas, oil & coal) in ways that maximize society’s benefit from them and minimize environmental impact should be a key factor in deciding the mix of power generation for a State. Importance of a structure that allows investors and users to manage risk rather than saddling taxpayers/ratepayers with the risk. This approach requires multiple buyers and sellers, and supportive rules and regulations. YES Inc. 5