CANADA S ELECTRICITY INDUSTRY

CANADA S ELECTRICITY INDUSTRY

Table of Contents Table of Contents The Canadian Electricity Association (CEA) CEA s Corporate Utility Members CEA Corporate Partners Program Membership CEA Mission Statement CEA Strategic Goals Canada s Multi-Jurisdictional Environment Canada s Market Structure North American Electric Reliability Corporation (NERC) Regions Electricity Demand in Canada by Sector, 2012 Electricity Demand in Canada by Sector, 1990-2011 Electricity Generation in Canada by Fuel Type, 2012 Electricity Generation in Canada by Fuel Type, 1990-2012 Electricity Generation in Canada by Province and Fuel Type, 2012 Canada-US Electricity Trade Volume, 1990 2012 Canada-US Natural Gas Trade Volume, 1990 2012 Canada-US Natural Gas Trade Volume, 1998 2010 Canada-US Electricity Trade Revenue, 1990 2012 Canada-US Natural Gas Trade Revenue, 1990 2012 Canada-US Natural Gas Trade Revenue, 2002 2012 Canada-US Natural Gas Export/Import prices, 2002 2010 Canada-US Electricity Export/Import prices, 1997 2012 Electricity Exports and Imports between Canada and the U.S. Major Canada-U.S. Transmission Interconnections The Integrated North American Grid Transmission Lines in Canada Length by Voltage, 1990-2008 Utility Investment in Canada s Transmission & Distribution Cables & Lines, 1998-2010 Electric Power Generation, Transmission and Distribution Sector Contribution to Canada s GDP, 1990 2012 Capital Investment in Canada s Electric Power Sector, 1990 2012 Electric Sector Environmental Protection Expenditures by type, 2010 Environmental Protection Expenditures by the Electric Power Sector, 1996 2010 Greenhouse Gas (GHG) Emissions in Canada by Sector, 2012 Greenhouse Gas (GHG) Emissions in Canada for Energy Sector, 2012 CO2 Emissions for Public Heat and Utility Sector, 2012 Utility Generated Electricity by Source and GHG Nitrogen Oxide (NOx) Emissions in Canada by Sources, 2012 Sulphur Oxide (SOx) Emissions in Canada by Sources, 2012 Manitoba-Minnesota Transmission Project Mercury Emissions in Canada by Sources, 2012 Electric Sector Mercury Emissions in Canada, 1990-2012 Particulate Matter (PM2.5) Emissions in Canada by Sources, 2012 Electric Sector Particulate Matter (PM) Emissions in Canada, 1990-2012 Greenhouse Gas Emissions in Canada and the US by Sector, 2012 Utility-Generated Electricity by Source and GHG Electricity Generating Capacity in the US and Canada by Fuel Type,1 2013 Electricity Generation in the US and Canada by Fuel Type,1 2013 Building the Next Generation of Infrastructure: Capital Investment Requirements Active MPMO Electricity Sector Projects Active MPMO Electricity Sector Projects indirect relevance Active MPMO Electricity Sector Projects - New Canada s Regulatory Regime for Large Energy Projects Average Residential Electricity Price in Canada, 1998 2013 (cents/kwh) Selected World Residential Electricity Prices, 2013 Selected World Industrial Electricity Prices, 2013 The Percentage Change in Household Expenditures 2000-2012 Canada s Future Residential Electricity Needs Low Emission and Sustainable Technologies Used for Electricity Generation in Canada Canadian Electricity Statistics Installed Wind Capacity in Canada as of April 2013 Existing Coal Facilities in Canada End of Life and Regulatory Shut Down Proposed Regulations to address GHG emissions from coal-fired electricity The CEA Councils Energy Efficiency Smart Grid Economic Value Electricity in Canada at a Glance For More Information... Page 2

The Canadian Electricity Association (CEA) Founded in 1891, the Canadian Electricity Association is the authoritative voice of the Canadian electricity industry. Mission Statement: A safe, secure, reliable, sustainable and competitively priced supply of electricity is essential to Canada s prosperity. Page 3

CEA s Corporate Utility Members Page 4

CEA Corporate Partners Program Membership Page 5

CEA Corporate Partners Program Membership Page 6

CEA Mission Statement A safe, secure, reliable, sustainable and competitively priced supply of electricity is essential to Canada s prosperity. CEA is the authoritative voice of the Canadian electricity industry, promoting electricity as a key social, economic and environmental enabler that is essential to Canada s prosperity. Page 7

CEA Strategic Goals Infrastructure Ability to build needed electricity infrastructure, to meet growing demand and replace aging assets. Energy Efficiency Ability to provide options to customers to assist them in using electricity more efficiently, manage costs and minimize environmental impacts. Technology Ability to maximize and deploy leading-edge technologies. Regulation Need for more coordinated, effective and efficient regulatory regimes within and between governments, and more timely decisions. Environment Need for holistic approach and greater regulatory coherence on environmental issues. Security Need to ensure the long-term security, reliability and stability of the electricity system. Page 8

Canada s Multi-Jurisdictional Environment Jurisdictional Division of Responsibility Provincial/Territorial Governments Resource management within provincial boundaries Intra-provincial trade and commerce Intra-provincial environmental impacts Generation and transmission of electrical energy Conservation and demand response policies Federal Government Resource management on frontier lands Nuclear safety Inter-provincial and international trade Trans-boundary environmental impacts Environmental impacts where federal lands, investment or powers apply Codes, standards and labeling relating to conservation and demand Other policies of national interest Page 9

Electricity Market Structures in Canada Alberta Mandatory Power Pool Wholesale & retail open access since 2001 Fully competitive wholesale market BC Wholesale & industrial open access Vertically-integrated Crown corporation serves 94% of customers Saskatchewan Wholesale open access Vertically-integrated Crown corporation Manitoba Wholesale open access Vertically-integrated Crown corporation Ontario Industry unbundling in 1998 Wholesale & retail open access since 2002 Hybrid regulation and competition model Québec Wholesale open access Vertically-integrated Crown corporation Expanding IPP development PEI Procures electricity from New England market and longterm contracts with New Brunswick New Brunswick Wholesale open access Vertically-integrated Crown corporation Newfoundland Verticallyintegrated Crown corporation and investor-owned distribution utility Nova Scotia Wholesale open access Investor-owned utility regulated on cost-of-service Page 10

North American Electric Reliability Corporation (NERC) Regions Page 11

Electricity Demand in Canada by Sector, 2012 Total Electricity Demand in Canada, 2012 = 510.99 TWh Residential 29% Commercial & Institutional 26% Agriculture 2% Transportation 1% Industrial 39% Public Administration 3% *Numbers may not sum to 100 percent due to rounding Page 12 Source: Statistics Canada, Catalogue no 57-003-X, Report on Energy Supply and Demand in Canada, 2012 preliminary. Table 1-1.

Electricity Demand in Canada by Sector, 1990-2012 Total Electricity Demand in Canada, 2012 = 510.99 TWh 600 500 Commercial & Institutional Public Administration Transportation Agriculture Residential Industrial 400 Demand (TWh) 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 Page 13 Source: Statistics Canada, Energy Statistics Handbook, Q4:2012 & Statistics Canada, Catalogue no 57-003-X, Report on Energy Supply and Demand in Canada, 2012 preliminary

Electricity Generation in Canada by Fuel Type, 2013 Total Electricity Generated in Canada, 2013 = 611.31 TWh Conventional Steam 14.5% Nuclear 15.9% Internal Combustion 0.2% Combustion Turbine 4.5% Hydro 63.4% Wind 1.5% Tidal 0.00% Solar 0.04% *Numbers may not sum to 100 percent due to rounding. Page 14 Source: Statistics Canada, Electric Power and Generation -Annual (CANSIM 127-0007), 2013. Retrieved September 10, 2014

700 600 Electricity Generation in Canada by Fuel Type, 1990-2013 Total Electricity Generation in Canada, 2013 = 611.31 TWh Solar Wind Tidal Combustion Turbine Internal Combustion Nuclear Conventional Steam Hydro* 500 Generation (TWh) 400 300 200 100 0 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013 *Prior to 2008, wind and tidal generation are included in hydro. Page 15 Source: Statistics Canada, Electric Power and Generation -Annual (CANSIM 127-0007), 2013. Retrieved Aug. 16, 2014

Electricity Generation in Canada by Province and Fuel Type, 2013 Total Electricity Generation in Canada, 2013 = 611.31 TWh 250 200 206.8 Solar Tidal Wind Generation (TWh) 150 100 64.05 63.61 149.82 Combustion Turbine Internal Combustion Nuclear Conventional Steam Hydro 50 0 23.08 35.87 BC AB SK MB ON QC NB* NS PEI NFLD *Point Lepreau nuclear generating station resumed power production on November 23, 2012, nuclear is expected to be a major source (about 30%) of electricity in New Brunswick. 13.99 10.53 0.15 42.14 Page 16 Source: Statistics Canada, Electric Power and Generation - Annual (CANSIM 127-0007), 2013. Retrieved 25 May 2014

Canada-U.S. Electricity Trade Volume, 1990 2012 70 Exports= 57.6 TWh in 2012 60 Imports= 10.8 TWh in 2012 Net= 46.8 TWh in 2012 50 40 30 20 Terawa hours (TWh) 10 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 Page 17 Source: National Energy Board, Electricity Exports and Imports, 2012. Retrieved August 19, 2014

2011 2012 2013 Canada-U.S. Natural Gas Trade Volume, 1990 2013 120.0 Exports= 80.9 billion m3 in 2013 100.0 Imports= 26.6 billion m3 in 2013 Net= 54.3 billion m3 in 2013 80.0 60.0 40.0 Billion cubic meters 20.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0.0 2010 Page 18 Source: Statistics Canada, Natural Gas Exports and Imports, 2013 Retrieved August 19, 2014

Canada-U.S. Electricity Trade Revenue, 1990 2013 Billion $ CDN 6.0 5.0 4.0 3.0 2.0 Exports = $2.47 billion in 2013 Imports = $0.37 Billion in 2013 Net = $2.1 Billion in 2013 California Energy Crisis 1.0 0.0 California Energy Crisis of 2000 and 2001 was the situation when California had a shortage of electricity Page 19 \ Source: National Energy Board, Electricity Exports and Imports, 2013 Retrieved August 19, 2014

Canada-U.S. Natural Gas Trade Revenue, 1990 2013 40.0 35.0 30.0 Exports = $10.86 billion Imports = $4.25 billion Net = $6.61 billion 25.0 20.0 15.0 Billion $ CDN 10.0 5.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0.0 Page 20 Source: Statistics Canada, Natural Gas Exports and Imports, 2013 Retrieved August 19, 2014

Canada-U.S. Natural Gas Export/Import Prices, 2002 2013 10.0 Exports =$3.60 9.0 8.0 Imports = $3.99 7.0 CAN$/GJ 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Page 21 Source: National Energy Board, 2013 Retrieved August 19, 2014

Canada-U.S. Electricity Export/Import Prices, 1997 2013 120.0 100.0 Exports =$47.66 Imports =$53.10 CAN$/MWh 80.0 60.0 40.0 20.0 0.0 Page 22 Source: National Energy Board, 2013 Retrieved August 19, 2014

Canada-U.S. Natural Gas and Electricity Export/Import Price Comparison, 2002 2013 CAN$/MWh 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Electricity Exports Electricity Imports Natural Gas Exports Natural Gas Imports 2011 2012 2013 10 9 8 7 6 5 4 3 2 1 0 CAN$/GJ Page 23 Source: National Energy Board, 2013 Retrieved August 19, 2014

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Major Canada-U.S. Transmission Interconnections Page 25 Source: National Energy Board

The Integrated North American Grid Map copyright CEA. Lines shown are 345kV and above. There are numerous interconnections between Canada and the U.S. under 345KV that do not appear on this map. Page 26

Manitoba-Minnesota Transmission Project Existing Line New Line HVDC Line +/- 500kV (850 miles) Manitoba Hydro Manitoba Hydro (MH): 500 kv line to U.S. border. Minnesota Power (MP): 500 kv line from border to Duluth. Hydro by wire from Manitoba enables wind by wire from North Dakota. Overall project enhances regional reliability and provides energy market benefits. 2020 expected in-service date. Winnipeg Minnesota Power HVDC Line +/- 500kV (600 miles) Page 27

Champlain Hudson Power Express Northern Pass Sponsor Transmission Developers Inc. HVDC merchant line; applied for DOE loan Majority of route is beneath waterways Will bring 1,000 MW of hydro and wind from Québec to New York City area Fall 2016 expected in-service date Sponsors HQ, Northeast Utilities 1,200 MW HVDC line, with 345 kv AC spur Will ship hydropower from Québec Participant-funded (HQ is lone customer; holds rights and risk) Fall 2015 expected in-service date Page 28

Transmission Lines In Canada Length by Voltage, 1990 2008 80,000 DC600+ DC400-599 DC300-399 DC200-299 AC600+ AC400-599 AC300-399 AC200-299 70,000 60,000 50,000 Length (km) 40,000 30,000 20,000 10,000 0 Page 29 Source: North American Electric Reliability Council (NERC)

Utility Investment in Canada s Transmission and Distribution Cable and Lines, 1998 2013 6.0 Transmission Distribution 2013 Transmission Investment = $5.7 Bn 2013 Distribution Investment = $3.3 Bn 5.0 Billion (Current) $ CDN 4.0 3.0 2.0 1.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 * Note: Statistics Canada and CEA member data combined. Page 30 Source: Statistics Canada, Survey 2803, 2009. Source: CEA member reporting data for years 2008-2013, based on the Sustainable Electricity Annual Report

Electric Power Generation, Transmission and Distribution Sector Contribution to Canada s GDP, 2007-2013 (2007 constant dollars) $30.5 2013 = $30.14 billion $30.0 Billion $ CDN 2007 Constant $29.5 $29.0 $28.5 $28.0 $27.5 $27.0 $26.5 Page 31 Source: Statistics Canada Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS), provinces and territories, 2013. Retrieved August 19, 2014

Capital Investment in Canada s Electric Power Sector, 2007 2013 (billions of constant 2007 dollars) 20.0 18.0 Intellectual Property Products Machinery and equipment Engineering construction Building construction Total capital investment in 2013 = $20.8 billion 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 2013 Billion $ CDN 2007 Constant Page 32 Source: Statistics Canada, Survey 2820, 2013. Retrieved June 9, 2014.

Electric Sector Environmental Protection Expenditures by type, 2010 Total electric sector environmental protection expenditures, 2010 = $1171 million Fees, fines and licenses 1% Other 8% Environmental monitoring, assessments and audits 19% Reclamation and decommissioning 4% Wildlife and habitat protection 1% Pollution prevention, abatement and control 50% Waste management and sewerage services 17% Page 33 Source: Statistics Canada, Environmental Protection Expenditures in the Business Sector, 2010 Retrieved June 9, 2013

Environmental Protection Expenditures by the Electric Power Sector, 1996 2010 Total electric sector environmental protection expenditures, 2010 = $1171 million $1,400 $1,200 Operating Capital $1,000 Millions of dollars $800 $600 $400 $200 $0 1996 1998 2000 2002 2004 2006 2008 2010 Page 34 Source: Statistics Canada, Environmental Protection Expenditures in the Business Sector, 2010 Retrieved June 9, 2013

Greenhouse Gas (GHG) Emissions in Canada by Sector, 2012 Total GHG Emissions in Canada, 2012 = 699 Megatonnes CO 2 Equivalent Energy 80.9% Agriculture 8.0% Industrial Processes 8.0% Waste 3.0% Note: Emissions do not include the following sectors: land use change and forestry, solvent and other product use and biomass Page 35 Source: Environment Canada, National Inventory Report 1990-2012: Greenhouse Gas Sources and Sinks in Canada, Report date: October, 2014.

Greenhouse Gas (GHG) Emissions in Canada for Energy Sector, 2012 Total GHG Emissions in Canada, 2012 = 699 Megatonnes CO 2 Equivalent Electricity & Heat Generation 14.3% Other Energy* 26.3% Fossil Fuel Industries 10.5% Commercial & Institutional 4.5% Transportation 31.5% Biomass 6.6% Residential 6.6% *includes all the other energy sector emission sources, such as mining, manufacturing, and construction, fugitive sources and agriculture/forestry/fisheries Note: Total energy emissions include emissions from biomass Page 36 Source: Environment Canada, National Inventory Report 1990-2012: Greenhouse Gas Source and Sinks in Canada, Report date: October, 2014

CO 2 Emissions in Canada for Public Electricity and Heat Production Sector, 2012 Total Public Electricity & Heat Sector CO 2 Emissions in Canada, 2012 = 88 Megatonnes Gaseous Fuels (e.g. natural gas), 24.35% Biomass, 0.92% Liquid Fuels (e.g. diesel, oil), 4.55% Solid Fuels (e.g. coal), 71.00% Page 37 Source:, National Inventory Report 1990-2012: Greenhouse Gas Sources and Sinks for Canada, for 2014,

Utility-Generated Electricity by Source and GHG Emissions, 1990 2010 Page 38 Source: UNFCCC, National Inventory Report for Canada, for 2010, Report dated April 11, 2012

Nitrogen Oxide (NO x ) Emissions in Canada by Sources, 2012 Total NO x Emissions in Canada, 2012 = 1,980 Kilotonnes Upstream Petroleum 21.7% Other Industrial 9.8% Open & Natural Sources 6.2% Electric Power 8.5% Mobile Sources 51.2% Residential/Commercial Fuel & Wood 3.0% Incineration & Miscellaneous 0.1% Page 39 Source: Environment Canada, National Pollutant Release Inventory, 2012, Air pollutant emissions summary for Canada.Retrieved May 25, 2014.

Sulphur Oxide (SO x ) Emissions in Canada by Sources, 2012 Total SO x Emissions in Canada, 2012 = 1,288 Kilotonnes Open & Natural Sources 1.7% Electric Power 21.8% Residential/Commercial Fuel & Wood 3.0% Incineration & Miscellaneous 0.2% Other Industrial 14.4% Non-Ferrous Smelting and Refining Industry 26.3% Petroleum Industry (Up- & Downstream) 24.7% Mobile Sources 7.4% Page 40 Source: Environment Canada, National Pollutant Release Inventory, 2012 Air pollutant emissions summary for Canada. Retrieved May 25, 2014.

Electric Sector Sulphur Oxide (SO x ) Emissions in Canada, 1990-2012 Total Electric Sector SO x Emissions in Canada, 2012 = 284 Kilotonnes 800 700 600 Kilotonnes SO x 500 400 300 200 100 0 Page 41 Source: Environment Canada, National Pollutant Release Inventory (NPRI) Retrieved May 25, 2014

Mercury Emissions in Canada by Sources, 2012 Total Mercury Emissions in Canada, 2012 = 3,605 Kilograms Residential & Commercial Fuel & Wood 3.7% Electric Power 21.8% Incineration & Miscellaneous 19.4% Non-Ferrous Smelting and Refining Industry 6.4% Cement and Concrete Industry 7.5% Iron and Steel Industries 13.8% Mobile Sources 0.1% Open Sources 13.6% Petroleum Industry (Up- & Downstream) 2.7% Other Industrial Sources 11.1% Page 42 Source: Environment Canada, National Pollutant Release Inventory, 2012 Air pollutant emissions summary for Canada. Retrieved May 27, 2014.

Electric Sector Mercury Emissions in Canada, 1990-2012 Total Electric Sector Mercury Emissions in Canada, 2012 = 859.7 Kilograms 3,500 3,000 2,500 Kilograms Mercury 2,000 1,500 1,000 500 0 Page 43 Source: Environment Canada, National Pollutant Release Inventory (NPRI) Retrieved on May 27, 2014

Particulate Matter (PM 2.5 ) Emissions in Canada by Sources, 2012 Total PM 2.5 Emissions in Canada, 2012 = 1368.3 Kilotonnes Open & Natural Sources 80.9% Electric Power 0.2% Residential & Commercial Fuel & Wood 8.2% Incineration & Miscellaneous 0.7% Other Industrial 3.6% Mining and Rock Quarrying 1.0% Mobile Sources 4.5% Petroleum Industry (Up- & Downstream) 0.7% Page 44 Source: Environment Canada, National Pollutant Release Inventory, 2012 Air pollutant emissions summary for Canada. Retrieved May 27, 2014.

Electric Sector Particulate Matter (PM) Emissions in Canada, 1990-2012 Total Electric Sector PM 2.5 Emissions in Canada, 2012 = 3,205 tonnes 40 35 30 Kilotonnes PM 2.5 25 20 15 10 5 0 Page 45 Source: Environment Canada, National Pollutant Release Inventory (NPRI) Retrieved on May 27, 2014

2012 CO 2 Electricity Emissions and Intensity in Canada 120 88.2 MT CO 2 e Emissions Absolute Emissions 160 Tonnes/GWh CO 2 e System Intensity Emissions Intensity 250 Millions of Tonnes 100 80 60 40 220 122.8 212 215 114.8 122.4 205 116.2 181 178.6 97.9 101.2 160 160 93.7 88.2 200 150 100 50 Tonnes/GWh 20 2005 2006 2007 2008 2009 2010 2011 2012 0 Page 46 Source: National Inventory Report, 2012

Greenhouse Gas (GHG) Emissions in Canada and the US by Sector, 2012 Total GHG Emissions in Canada, 2012 = 699 Megatonnes CO 2 Equivalent Fossil Fuel Industries 9.0% Total GHG Emissions in US, 2012 = 6525.6 Megatonnes CO 2 Equivalent Other Energy* 21.4% Electricity & Heat Generation 12.7% Agriculture 8.0% Industrial Processes 8.1% Transportation 28.2% Industry 19.6% Agriculture 9.4% Transportation 28.0% Residential 5.9% Commercial & Institutional 4.0% Waste 3.0% Electric Power Industry 31.6% Commerical 5.4% Residential 4.9% U.S. Territories 0.9% *includes all the other energy sector emission sources, such as mining, manufacturing, and construction, fugitive sources and agriculture/forestry/fisheries Page 47 Source: Environment Canada, National Inventory Report and US GHG Emissions and Sinks 1990-2012. Retrieved June 13, 2014.

Electricity Generating Capacity in the US and Canada by Fuel Type, 1 2013 Combustion Turbine 8% Nuclear, 10% Canada Internal Wind, 2% Combustion, 1% Tidal and Solar, 0% Conventional Steam (Coal), 20% Nuclear 9% United States Hydro 7% Wind 6% Others 4% Coal 30% Petroleum 5% Hydro, 57% Natural Gas 39% 48 Total Generating Capacity = 131 GW 1 Numbers may not sum to 100 percent due to rounding. Source: US Energy Information Administration, Electric Power Monthly (Table 6.2A) and Statistics Canada, CANSIM 127-0002, Retrieved June 5, 2014 Total Generating Capacity = 1,063 GW

Electricity Generation in the US and Canada by Fuel Type, 1 2013 Combustion Turbine Internal 5% Combustion 0% Canada Wind 1% Petroleum 0.7% United States Other renewables 0.3% Hydro 7.0% Nuclear 16% Nuclear 20.6% Other gas 0.3% Other 0.3% Conventiona l Steam (Coal) 15% Hydro 63% Natural Gas 29.1% Coal 41.5% Note: Total Electricity Generation in 2013 = 611 TWh Note: Total Electricity Generation in 2013 = 4,058 TWh Page 49 1 Numbers may not sum to 100 percent due to rounding. Source: US Energy Information Administration, Electric Power Monthly (Table 1.1) and Statistics Canada CANSIM 127-0007, Retrieved September 10, 2014

Building the Next Generation of Infrastructure: Capital Investment Requirements Billions of 2010 CDN dollars Generation Transmission Distribution Total 2010 2030 195.7 35.8 62.3 293.8 Total Canadian Electric Sector Investment Required by 2030 = 293.8 Billion in 2010 CDN dollars, or 347.5 Billion in current CDN dollars. Page 50 Source: The Conference Board of Canada, Shedding Light on the Economic Impact of Investing in Electricity Infrastructure, February 2012.

Active MPMO Electricity Sector Projects MPMO Project Name Description Proponent Project Type Location Labrador - Island Transmission Link 1,100 km line Nalcor Energy Transmission NL Maritime Link Transmission Keeyask Hydroelectric Generation 500-MW, +/- 200 to 250-kV HVDC & HVAC 695 MW ENL Maritime Link Inc. Transmission NL/NS Keeyask Hydropower Limited Partnership Hydro MB Lower Churchill Hydroelectric Generation 3,074 MW Nalcor Energy Hydro NL Site C Clean Energy Hydroelectric Generation 1,100 MW BC Hydro Hydro BC Darlington New Nuclear Power Plant Up to 4,800 MW OPG Nuclear ON NaiKun Offshore Wind Energy 320 MW (off-shore) NaiKun Wind Development Wind BC Tazi Twe Hydroelectric Generation 50 MW Saskatchewan Power Corp. Hydro SK Page 51 Source: Major Projects Management Office, Project Tracker. Retrieved May 25, 2014

Active MPMO Electricity Sector Projects indirect relevance MPMO Project Name Description Proponent Project Type Location Bow City Coal Mine and Power 2x 500 MW Bow City Power Ltd. Coal AB Deep Geological Depository Waste Management Ontario Power Generation Nuclear ON Port Granby Long-Term Low-Level Radioactive Waste Management Port Hope Long-Term Low-Level Radioactive Waste Management Pointe du Bois Spillway Replacement Waste Management Natural Resources Canada Nuclear ON Waste Management Natural Resource Canada Nuclear ON Spillways and earth, Dams Manitoba Hydro Hydro MB Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related activities, such as mining (of coal for power generation), waste management (of radioactive waste) and dam (re)construction Page 52 Source: Major Projects Management Office, Project Tracker, Retrieved May 25, 2014

Active MPMO Electricity Sector Projects new proposals MPMO Project Name Description Proponent Project Type Location Bipole III Transmission Line 1,475 km Manitoba Hydro Transmission MB Chamouchouane - Bout-de-l'Île Transmission Line 735 kv Quebec Hydro Transmission QC Green Electron Natural Gas Power Generation Project Hawkeye Green Energy Hydroelectric Generation 300 MW 175 MW Greenfield South Power Corporation Hawkeye Energy Corporation Generation Hydro ON BC Mica 5 and 6 1000 MW BC Hydro Hydro BC Rocky Creek Wind Power Trillium Offshore Wind Farm 500 MW 414 MW Rupert Peace Power Corporation Trillium Power Wind Corporation Wind Wind BC ON Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related activities, such as mining (of coal for power generation), waste management (of radioactive waste) and dam (re)construction Page 53 Source: Major Projects Management Office, Project Tracker, Retrieved May 25, 2014

Canada s Regulatory Regime for Large Energy Projects Planning Environmental Assessment Process Permitting Follow-up Canadian Environmental Assessment Act - CEA Agency* National Energy Board Act - NEB* Nuclear Safety and Control Act - CNSC* Land use plans Impact reviews (YESAA, MVRMA Land Claim / CEAA) Innuvialuit Final Agreement - INAC* Species at Risk Act - EC/DFO Management Boards Territorial Lands / Water Act Metal Mining Effluent Regulations - EC/DFO Explosives Act - NRCan Fisheries Act - DFO NWPA - TC Others: MBCA / IBWTA / CPRA / Offshore Accords / CEPA *Permits required under other Acts trigger CEAA OGD participants Illustrative some components would not apply to same project NWPA Navigable Waters Protection Act / YESAA Yukon Environmental and Socio-Economic Assessment Act MVRMA Mackenzie Valley Resource Management Act / MBCA - Migratory Birds Convention Act / IBWTA International Boundary Waters Treaty Act / CPRA Canadian Petroleum Resource Act / Offshore Accords Canada - NS and NFLD Offshore Accords / CEPA Canadian Environmental Protection Act Page 54

Average Residential Electricity Price in Canada, 1998 2013 (2008 cents/kwh) 14.0 12.0 11.35 10.79 10.53 11.56 11.96 11.21 10.0 9.77 9.67 9.40 9.58 9.66 9.85 9.58 9.79 9.94 10.34 2008 cents/kwh 8.0 6.0 4.0 2.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Notes: Based on 1,000 kwh monthly consumption Average electricity price is an average of 11 major Canadian cities for years 1998-2008 and an average of 12 major Canadian cities for years 2009-2013; and may not represent an exact national average. Page 55 Source: Hydro Quebec, Comparison of Electricity Prices in Major North American Cities, 1998 2013; Ontario Hydro: Electricity Rates by Province, Retrieved May 28, 2014.

Selected World Residential Electricity Prices, 2012 Denmark Italy Japan Ireland Austria Belgium United Kingdom Switzerland Finland Poland Turkey France Canada United States Mexico 0 5 10 15 20 25 30 35 40 45 US cents/kwh Page 56 Source : International Energy Agency, Key World Energy Statistics 2013 with 2012 data

Selected World Industrial Electricity Prices, 2012 Italy Ireland Turkey Portugal United Kingdom Switzerland Belgium France Mexico Poland Denmark Finland Canada United States 0 5 10 15 20 25 30 35 US cents/kwh Page 57 Source : International Energy Agency, Key World Energy Statistics 2013 with 2012 data

Percentage Change in Household Expenditures 2000-2012 (Year over Year Percentage Change) 250% 200% 150% 100% 50% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Property Taxes Electricity Water Internet Services Note: The price increase for the residential electricity sector has increased 36% between 1999 and 2012, the lowest amongst property taxes, water and internet services for principle accommodation. Page 58 Source: Statistics Canada, Survey of Household Spending, 2012.

Canada s Future Residential Electricity Needs Page 59 Reference: Graphics from BC Hydro: Lighting the Way. Estimates based on a business as usual scenario. Stats Canada Population Projections: Table 052-0005.

Low Emission and Sustainable Technologies Used for Electricity Generation in Canada Resource Advantages Challenges Wind Power Small Hydro Biomass Geothermal Energy Solar PV Ocean Energy Clean Coal No fuel cost, no emissions or waste, renewable source of energy, commercially viable source of power Low capital costs, many potential sites in Canada, well established technology, able to meet small incremental capacity needs, reduction in GHG emissions Uses landfill gas, wood pellets, and waste products to create electricity, reduces greenhouse gas, high availability of sites Reliable source of power, low fuel and operating costs, clean and renewable source of energy Reliable, renewable energy source with zero emissions and silent operation, fuel is free, suitable for areas where fossil fuels are expensive or where there is no connection to the grid Costs are expected to decline as technology develops, intermittent, but predictable source of green energy Highly efficient, potential for reduced greenhouse gas emissions Less cost competitive than conventional energy source, variable energy resource, transmission issues, environmental concerns with regards to noise and interaction with birds, land use issues Regulatory approval can be costly and time consuming, access to grid, local opposition to new development High capital equipment and fuel costs; produces some emissions; access to transmission, competition for biomass materials use High capital costs, connecting to the grid can be difficult, few potential sites in Canada Restrictive and lack of grid connection for remote areas, not cost competitive, sun does not always shine and potential varies across regions Potentially intrusive to marine life, investment is needed to promote research and development High capital costs, lengthy start-up period Page 60

Canadian Electricity Statistics By the Global numbers 5 Canada s world ranking in primary energy production (Centre for Canadian Energy, 2012) 6 Canada s world ranking in primary energy consumption (EIA, 2013) 23.7 Per cent of Canada s total exports that were energy related (StatCan, 2013) 3 Canada s ranking in Hydroelectricity generation (International Hydropower Association, 2013) By the Domestic numbers 14.5 Per cent of Canada s electricity produced from nuclear generation (StatCan, 2013) 15.0 Per cent of Canada s electricity produced from thermal generation fired by coal (StatCan, 2013) 63.3 Per cent of Canada s electricity generated from hydropower (StatCan, 2013) 611.3 Terawatt-hours of total electricity generation (StatCan, 2013) Page 61 Source: See Key Canadian Electricity Statistics fact sheet for source information

Installed Wind Capacity in Canada as of July 2014 Page 62 Source: Canadian Wind Energy Association, retrieved September 10, 2014

Coal Fleet Profile (MW) 18000 Coal Capacity Reduction - Retirement as per the Coal Regulation* Capacity (MW) 16000 14000 12000 10000 8000 6000 4000 2000 0 * Retirement age 45-50 years as per the 2012 Reduction of Carbon Dioxide Emissions from Coal- Fired Generation of Electricity Regulations. Includes Ontario coal shutdown by 2014. Page 63 (Source: NPRI data).

NO x and SO 2 Reductions from CO Regulation Reduction in SO 2 emission from 2002 levels: 54% reduction by 2020 84% reduction by 2030 Reduction in NOx emissions from 2002 levels: 50% reduction by 2020 80%reduction by 2030 Source and assumptions: NPRI data was used for existing unit emissions, forecast based on 2009-2011 operation, coal unit retirement from 45-50 years as outlined in the 2012 Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations Page 64

Electricity leading all Canadian industrial sectors in reduction of CO 2 Page 65

Regulations to address GHG emissions from coal-fired electricity (Sept. 2012) Establish an emissions performance standard of 420 tonnes of CO 2 per gigawatt hour of electricity produced for new coal-fired electricity generation units (those commissioned after July 1,2015), and units that have reached the end of their life. The proposed Regulations are to be promulgated under the Canadian Environmental Protection Act (CEPA) and are set to come into effect on July 1, 2015. Existing and new units may apply for a deferral in meeting the performance standard until January 1, 2025, if the technology for Carbon Capture and Storage (CCS) is incorporated. The regulation will be effective only if compliance is achievable. Compliance will contribute to clarity and stability for industry that will enable investment in electricity infrastructure to flow. Cumulative reduction in GHG emissions of approximately 214 megatonnes and cumulative health benefits of $4.2 billion expected in the first 21 years. Some jurisdictions will be more heavily impacted than others. Page 66 Source: Environment Canada, Reducing Greenhouse Gas Emissions from Electricity Generation. Retrieved June 30, 2014

The CEA Councils Generation Council Develops and influences policy associated with investment in electricity generation infrastructure, as well as manages environmental and health impacts related to generation Transmission Council Formulates positions on transmission, including cross border reliability, electric and magnetic fields and utility properties Distribution Council Focuses on technological and regulatory developments associated with smart grid development and deployment, advanced meter performance, power quality issues, and national trends in provincial distribution utility regulation Customer Council Seeks to increase the value of electricity service to Canadians Power Marketers Council Promotes competitive and efficient electricity markets in Canada and the United States Page 67

Energy Efficiency Commitment to sustainability through efficient production, delivery and use of energy, while promoting energy conservation and demand side management CEA s involvement in initiatives Old refrigerator removal Exchange programs to lower air conditioner levels during peak summer demand Support for implementation of new technologies smart meters for time-of-use pricing Promotion of conservation programs by CEA member utilities for their larger commercial, industrial and direct customers Demand Side Management can be a least cost option, postpones the development of new power plants, improves energy efficiency Partnership among CEA, NRCan and utilities in promotion of ENERGY STAR qualified light fixtures Page 68

Smart Grid A suite of information-based applications through increased automation of the electricity grid and the underlying automation and communication infrastructure itself Smart grid is posed to deliver grid resilience, environmental performance, and/or operational efficiencies Design and implementation of the smart grid integrated system aims to achieve desired customer priorities, interoperability with legacy infrastructure, and be appropriate for use with respect to geographical location and other needs Key characteristics or capabilities: Demand response, facilitation of distributed generation, facilitation of electric vehicles, optimization of asset use, and problem detection and mitigation Capabilities supported by development of hard infrastructure, soft infrastructure through stakeholder engagement Expected results in new service offerings, reduced delivery charges, and faster response time Security, privacy, implementation cost, and stakeholder engagement requires collaboration among vendors, policy-makers, regulators and utilities Page 69

Human Resources Commitment by CEA member utilities Providing safe environment for general public as well as ensuring health and safety of employees and contractors in the workplace, Support a fair, respectful and diverse workplace for our employees and contractors, and investing in human resources Partnering with communities and stakeholders, communicating and engaging in a transparent and timely manner Engaging Aboriginal Communities while respecting their culture and traditions Page 70

Economic Value Economic Indicators for 2013 All Canadian Sectors Contribution Canadian Electricity Sector Contribution GDP (Millions chained 2007 dollars) 1,587,200 30,743 Merchandise Exports (dollars x 1,000,000) Merchandise Imports (dollars x 1,000,000) 479,363.8 2,476.8 486,651.2 367.5 Page 71 Source: Statistics Canada, CANSIM 379-0030 and Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping. Retrieved June 30, 2014.

Electricity in Canada at a Glance Indicator Value Total Generation in 2013 (Twh) 614.46 Total Demand in 2013 (Twh) 510.99 Average Price in 2013 ( /kwh) Residential Industrial Canada US trade volume in 2013 (Twh): exports/imports Canada US trade revenue in 2013 (billions $): exports/imports 12.07 7.96 62/10.7 2.44/0.37 Capital Expenditure on New/Refurbished Infrastructure in 2010 (billion $) 8.8 Environmental Expenditure in 2010 (million $) 1171 GHG emissions from Public Electricity and Heat Production Sector (CO 2, CH 4 and N 2 O eq. Mt) in 2012 88 Page 72 Source: See Key Canadian Electricity Statistics fact sheet for source information

For more information, contact: Canadian Electricity Association 275 Slater Street, Suite 1500 Ottawa, ON K1P 5H9 613 230 9263 info@electricity.ca Page 73