Panel Discussion: Engagement at the Local Level

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1 Panel Discussion: Engagement at the Local Level Moderator: Carrie Aloussis, Senior Manager, Customer, Panelists: Stakeholder and Community Engagement, IESO Margaret Kenequanash, CEO, Wataynikaneyap Power Iain Angus, Councillor, City of Thunder Bay and Co- Chair of the Common Voice Northwest Energy Task Force T. Douglas Murray, CEO, Thunder Bay Community Economic Development Commission

2 October 18, 2017 Northwest Regional Forum Engagement at Local Level

3 Background 2 Urgent power supply needs in Northwest Ontario to connect remote First Nation communities to the grid Grid connection to Ontario s remote First Nation communities would: Put an end to electrical load restrictions (10 communities on restriction in 2015) Save $1 billion compared to diesel generation (PWC Study) Reduce environmental and health impacts (estimated $830 million in social value) Result in 6.6 million tonnes of avoided CO2 equivalent GHG emissions Improve living conditions, spur economic development, and increase government revenues Successful transmission development requires partnership and leadership by First Nations, industry and government 22 First Nations long-term vision is to own major infrastructure in their homeland Unique ownership structure mandated and supported by community leadership Connecting the remote communities is a priority for Ontario - Ontario s Long Term Energy Plan

4 Wataynikaneyap Transmission Project 3 One Project two phases Phase 1 cannot proceed without a plan for connecting remote communities Connecting 17 First Nation communities to the provincial grid Phase 1 (green or orange line ) to reinforce the existing system and Phase 2 (purple or red lines) to connect communities north of Red Lake and Pickle Lake Preliminary proposed corridors only Approximately 1800 km of 230kV, 115kV and 44kV transmission line $1.35 billion estimated capital cost Potential remote electrification in 2021 with build out to 2023 Pikangikum First Nation could be connected as early as 2018

5 Ownership 4 51% owned by 22 First Nations partnership Equal ownership and open to participation from additional First Nations communities with a vested interest in the project Option to become 100% owner over time The First Nation partnership provides Indigenous engagement, participation, and other services to the Project through its subsidiary Opiikapawiin Services 49% owned by FortisOntario FortisOntario is a wholly-owned subsidiary of Fortis Inc. ( Fortis ) (TSX: FTS), with total assets of approximately CAD$47 billion, and 10 utility operations serving more than 3.2 million customers across Canada, the United States and the Caribbean. FortisOntario is the Project Manager for Wataynikaneyap Unprecedented ownership model with First Nations controlling development in traditional homelands

6 5 Ownership/Management

7 Chiefs Mandate 6 October Chiefs mandated a Steering Committee to investigate transmission development and ownership Objective of connecting remote communities to the provincial grid February 2011 Expanded the mandate to include the transmission line discussions south of Pickle Lake October 2013 Expanded mandate to include connection of 5 KO communities (total now 18 First Nation Communities) February 2015 Expanded ownership group now includes Sandy Lake First Nation and Wabigoon Lake Ojibway Nation (total now 20 First Nation Communities) August 2016 Expanded ownership group now includes Pikangikum First Nation and Lac Des Mille Lacs First Nation (total now 22 First Nation Communities)

8 Support 7 Chiefs of Ontario (COO) Resolution November Calls on both levels of government to agree on an appropriate funding mechanism Expresses to the governments of Ontario and Canada the urgency for the project Support for Wataynikaneyap Power as the designated transmitter Assembly of First Nations (AFN) Resolution December Support for Wataynikaneyap Power as the designated transmitter Direct the National Chief to write a letter to Prime Minister Justin Trudeau to identify the Project as a federal priority Calls on Ontario and Canada to immediately develop a funding framework to resource the Project Support from the peoples who still exercise their land management systems (land stewards)

9 Project Status 8 PricewaterhouseCoopers (PwC) completed a business case, financial model and socioeconomic impact analysis Submitted Draft Environmental Assessment (EA) for Phase 1 Received transmission licence in November 2015 Initiated Environmental Assessment work for Phase 2 in January 2016 Notice of commencement on September 26, 2016 In July 2016, Ontario passed two Orders in Council 1. Prioritizing the connection of remote First Nation communities 2. Designating Wataynikaneyap Power as the transmitter to undertake the project Ontario Energy Board deferral account approval in March 2017 Draft Phase 1 EA Report submitted June Federal government commitment of up to $60 million for Pikangikum connection

10 Engagement 9 Extensive Aboriginal community engagement program There are presently thirty-two First Nation communities, in addition to traditional land-based rights holders, being engaged on the Phase 1 and Phase 2 Environmental Assessments Indigenous organizations Interested members of the general public including, for example, businesses and non-indigenous land users Non governmental organizations (NGOs) including environmental groups and community based organizations Government agencies and officials including federal, provincial and local municipal/township councils, agencies and staff

11 Aboriginal Community Engagement 10 Canada has trust obligations and commitments through Treaties We understand that our people have Aboriginal and Treaty rights and Inherent rights Without the people s consent, there will be no major development Any community engagement must respect community protocols and principles and community autonomy involve the community at an early stage Ground up community engagement from start to finish - Open and inclusive process both sides need to take responsibility and exercise due diligence Joint engagement process driven by First Nations and industry to exceed regulatory requirements (EA) open dialogue Community presentations, newsletters, website, radio programs etc. Continued engagement of First Nations with traditional lands impacted by the transmission corridor Duty to consult delegation due diligence exercised by the proponent, ultimate responsibility and obligation stays with the Crown

12 Community Opportunities 11 Participating communities will be owners in a $1.35 billion project Return on investment Renewable energy projects (water, wind, & solar) could be able to connect to the grid and sell power into the provincial system Local community contractors / businesses Clearing, construction camps, materials, accommodations, equipment rental Business readiness planning will help communities prepare for and capture business opportunities

13 Community Opportunities 12 Jobs will be created from construction and operation of the transmission line Early training and community readiness will be key in order to create long term meaningful employment, and transferable skills. Community readiness planning started in 2015 Hired community workers to assist with community readiness planning, and they will continue on as representatives or the project Initiated a $4.2 million comprehensive training initiative that will be delivered over the next 3 years Through Wataynikaneyap, First Nations will own, control, and benefit from one of Ontario s biggest projects

14 Next Steps 13 Land Sharing Arrangements are needed Ongoing engagement with First Nations for best routing and access to Traditional Homelands Advance Environmental Assessments (EA) and other permitting Leave to Construct Application to the Ontario Energy Board Need to advance discussions with Canada and Ontario on a funding framework for fair cost sharing Need to ensure communities are ready for grid connection and will benefit from the development Delivery of education & training Business readiness Ensure local distribution is up to standard and fully licenced Initiate construction on Pikangikum connection in October 2017

15 Wataynikaneyap Project Schedule 14 Note expect to start construction of Pikangikum connection in October 2017

16 The Wataynikaneyap Power Team Contact / Additional Information: Margaret Kenequanash Wataynikaneyap Power (807) margaret.kenequanash@wataypower.ca John Cutfeet Wataynikaneyap Power (807) cutfeetj@hotmail.com Project Website

17 IESO Northwest Regional Electricity Forum October 18,

18 The View from Here: The Perspective of the Energy Task Force

19 Common Voice Northwest Born out of the forestry crisis N.W.O leadership came together Repair and enhance the economy Forging the Future = Common Voice Northwest The peoples of Northwestern Ontario, in order to make common cause and ensure a better future for our children in this land we call home, have come together in partnership to speak and act with one voice. Dr. Livio Di Matteo

20 Public Policy Research Municipal via NOMA» Rainy River» Kenora» Thunder Bay» City of Thunder Bay Business via Chambers of Commerce» Large» Small Labour» Public» Private Education» College» University» School Boards Multicultural & Immigration Work Force Planning TWOMO Seats for PTO s & Economic Development Org

21 Our Work To-date Tourism report led to creation of Tourism Northern Ontario Creation of the Northern Policy Institute Defined significant water crossings for National Energy Board First ever how to manual for training and adjustment boards Ongoing monitoring of Multi-modal transportation strategy Proposed inter-community bus service concept to MMTS

22 Our Work To-date On Energy» Convinced OPA/IESO on needs of N.W.O.» Intervened on: IPSP 1 & 2 LTEP 1 & 2 Regulatory Framework for Regional Planning for Electricity Infrastructure Defining and Measuring Performance of Transmitters and Distributors in Ontario Proceeding to Designate a Transmitter for the East- West Tie Line Renewed Regulatory Framework for Electricity

23 Our Work To-date On Energy» Intervened on: Policy Review of Micro-Embedded Generation Connection Issues OPG Reliability Must Run Application TBGS Proposed Amendments to the OPA s Licence based on the new regional planning process Regional Planning and Cost Allocation Review Alternative Approaches to Recover Costs of Expanding Natural Gas Transmission Code Draft Review (current)

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