Future Hydro Development in Manitoba and Aboriginal Partnerships

1. Future Hydro Development in Manitoba and Aboriginal Partnerships Presented by E. Wojczynski To APEGM October 21, 2005

2. Introduction • Hydro Developments and Partners • Hydro’s Future Development Objectives • Participation Opportunities for Northern Aboriginal People • Investment • Pre-project Training • Employment • Business Contracts • Environmental Studies • Potential Challenges • The Win-Win Potential

3. Hydro Developments and Partners

4. MISSI LAURIE RIVER KETTLE LIMESTONE Generation facilities LONG SPRUCE Transmission lines NOTIGI KELSEY JENPEG GRAND RAPIDS PINE FALLS GREAT FALLS MCARTHUR FALLS SEVEN SISTERS FALLS SELKIRK BRANDON POINTE DU BOIS SLAVE FALLS WINNIPEG Our Existing System Waterways influenced by hydro development 80% of our generation capacity is in northern Manitoba.Aboriginal communities are located in the vicinity of these projects. 5000 MW of hydraulic generation 470 MW thermal generation

5. Manitoba Hydro Project Plans • Existing System 5500 MW • PowerSmart (Customer Efficiency) - To date 2004 283 MW - Planned 2019 495 MW • Wind - St Leon 2006 100 MW - Planned 2009 250 MW - studies 1000 MW • Point DuBois redevelopment 2011 78 MW +42MW • Kelsey Rerunnering 2011 224MW +86 MW • Wuskwatim 2011 200 MW Keeyask 2013+ 620 MW Conawapa 2017+ 1380 MW • Bipole III Line and converters 2017 2000 MW

6. Ontario Clean Energy Transfer Initiative Henday/ Conawapa • Some sales starting 2006 • Interconnection upgrade 2008200 to 400 MW • New Major Interconnection 2014?1500 MW • PowerSmart, Wind, Wuskwatim, Keeyask, Conawapa Timmins Riel/Winnipeg Sudbury Henday/ Conawapa Timmins Riel/ Winnipeg Sudbury Thunder Bay Henday/ Conawapa Timmins Riel/ Winnipeg Sudbury Thunder Bay

7. Thompson Winnipeg Proposed Northern Generation and Local Communities • Conawapa • 1,380 megawatts • $6 billion • Keeyask Project • 620 megawatts • $3 billion • South Indian Lake Fox Lake TataskweyakCree Nation York Landing NisichawayasihkCree Nation War Lake Thompson • Wuskwatim Project • 200 megawatts • $1 billion NelsonRiver

8. Hydro’s Future Development Objectives

9. Future Development Objectives • Reliable and Secure supply for Manitobans • Proactive in protecting the environment • Strengthen aboriginal relationships • Profitable exports • Undertake planning, public consultation, public review and regulatory activities to have the option to construct projects at earliest opportunity for export.

10. Aboriginal Partnerships: Hydro’s Objectives • Maximize Aboriginal support and advocacy for commercially viable and environmentally acceptable projects to produce power for export. • Provide practical capacity building opportunities for Aboriginal people. • Broaden public support for projects. • Manage risks in the regulatory processes. • Gain support and allies in export markets. • Treat adversely affected parties fairly and reasonably with or without partnerships.

11. Participation Opportunities for Northern Aboriginal People Investment Pre-project training Employment Business contracts Environmental Studies

12. Investment Wuskwatim/Keeyask Projects • Projects to be owned by limited partnerships. • Manitoba Hydro is the general partner in a limited partnership with communities and Manitoba Hydro as limited partners. • Communities in the vicinity given an opportunity to invest in projects with financial assistance from Hydro. • Communities must invest a portion of their own cash and the balance may be borrowed from Manitoba Hydro. • communities own a portion of the partnership, dependent on the amount of their cash invested. • Up to 33% for Wuskwatim and 25% for Keeyask.

13. Pre-project Training Wuskwatim/Keeyask • Cornerstones • Aboriginal-led • Community-based where practical • Retention supports • On-the-job training • Critical success factors • Sufficient funding, multi-year comprehensive approach • Industry partnerships and leveraging community projects for on the-job-training experience • Links to employment and business opportunities.

14. Training ParticipantsNorthern Aboriginal Organizations • Nisichawayasihk Cree Nation (NCN) • Tataskweyak Cree Nation (TCN) • War Lake Cree Nation • Fox Lake Cree Nation • York Factory First Nation • Manitoba Keewatinook Ininew Okimowin (MKO) • Manitoba Métis Federation (MMF)

15. Employment Approach • Employment success requires an integrated approach to recruitment, training, retention and advancement to assist Aboriginal people • As they develop competencies for project employment (pre-project training) • As they apply for work • As they are referred to the contractor for employment • As they are hired and placed on the job • As they respond to construction worksite and camp challenges • As they participate in on-the-job training • As they are laid off and called back to work

16. Aboriginal Employment Approach • Tools to achieve employment objectives • Master collective agreement (BNA), with option for special provisions for each project • Special tender specifications related to Aboriginal employment • Aboriginal Direct negotiation or restricted tender work packages • Critical success factors • Employment preference • Retention support.

17. Business Contract Opportunities • Construction contracts on major projects identified for direct negotiation or restricted tender with northern Aboriginal businesses • Service contracts • Cross Cultural Training • Camp maintenance services • Catering • Security • Infrastructure contracts • Access Road • Temporary camp • Main camp • Other contracts • Painting • On-site hauling • Forebay clearing

18. Business Contract Opportunities • Ongoing operation and maintenance contracts • Plant, dam and dike maintenance • Special projects (e.g. plant-related works, environmental enhancement) • Conditions • Standards of quality, cost and schedule must be met in direct negotiation or restricted tender • Joint ventures with non-northern Aboriginal-owned businesses are okay as long as an Aboriginal partner plays a meaningful role.

19. Environmental Studies • Community consultations as part of studies and assessment. • Traditional knowledge incorporated into assessment. • Community involvement and employment opportunities.

20. Potential Challenges

21. Challenges • Power market conditions/opportunities. • Transmission options and schedules • Generation options and schedules. • Increased number of communitiesparticipating increases complexity. • Aboriginal participation • Historical grievances • Community capacity and external consultants • Long term relationship • Cost and schedule impacts • Environmental review process/products • Ecological monitoring • Time and cost and uncertainty • Evolving environmental standards

22. The Win-Win Potential

23. The Win-Win Potential TCN A Keeyask Partner Victor Spence, TCN Manager of Future Development

24. The Win-Win Potential NCN Wuskwatim Partner Chief Jerry Primrose, Nisichawayasihk Cree Nation

25. New Era • Increased global environmental awareness • Growth in North America demand for energy • Higher energy prices • New way of Hydro doing business • New Hydro development redesigned to respect environmental considerations • Aboriginal partnership in new hydro to provide benefits to local people • Potential for more new developments in Manitoba, much benefit for all Manitobans and local aboriginal people.

26. Questions?