Common Voice Northwest Energy Task Force Presentation to

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

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

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

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

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

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

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

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

Where the ETF Started • Inadequate Transmission and Distribution across the Northwest

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

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

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

Ring of Fire Greenstone Radial Line DEFICIENCIES & OPPORTUNITIES

N. W. O. ELECTRICAL SYSTEM OPPORTUNITIES

Entry Points for Remote Communities

DEMAND • • MINING FORESTRY TRANS-CANADA PIPELINES ANCILLARY GROWTH

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

DEMAND • FORESTRY • PROJECTED BY ETF • 18 MW by 2020

DEMAND • REMOTE COMMUNITIES • PROJECTED BY ETF • 42 MW by 2020

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

DEMAND • TOTAL ETF PROJECTION • 1660 MW by 2020

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

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

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

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

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

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

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

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

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

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

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)

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

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

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

THANK YOU QUESTIONS?