2011

Sustainability Report

Newfoundland Power: Committed to Sustainable

Electricity

About this Report

This is Newfoundland Power’s fourth annual sustainability report. To determine the content of this document, the Company has used the Canadian Electricity Association’s Sustainable Electricity Indicators.

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Contents

President’s Message ...... Page 4 Corporate Profile ...... Page 5 Generating Facilities ...... Page 6 Service Area ...... Page 7 Highlights ...... Page 8 Environment ...... Page 10 Transmission and Distribution Lines ...... Page 11 Atmospheric Emissions ...... Page 12 Recycling CFL’s ...... Page 14 Committed to the Environment ...... Page 15 Priority Spills ...... Page 16 PCB Management ...... Page 18 Environmental Management System ...... Page 19 Biodiversity and Land Use ...... Page 20 Emissions ...... Page 21 Adaptation to Climate Change ...... Page 23 Society ...... Page 24 Employees ...... Page 25 Workplace Diversity ...... Page 26 Investment in People ...... Page 28 Public Education and Stakeholder Engagement ...... Page 30 Corporate Awards ...... Page 33 Innovation ...... Page 34 Safety Recognition ...... Page 35 Economy ...... Page 36 Community Involvement ...... Page 37 Energy Efficiency ...... Page 40 Automated Meters ...... Page 44 Business Continuity ...... Page 45 Resource Management ...... Page 46

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President’s Message

At Newfoundland Power, we want to not only meet, but exceed our customer expectations. Our goal is to further increase our operating efficiency and productivity while being a leader in reliability and customer service. In short – we want to be sustainable. For us, sustainability has environmental, economic and social dimensions AND encompasses the concept of stewardship.

One of our biggest challenges in working toward sustainability is continually improving our province’s electricity system and service to customers. This lies in our ability to balance capital investments with our customers’ desire for low-cost electricity. We know, to be truly sustainable, we must always strike a balance between investing capital to improve reliability, while at the same time working to reduce operating and maintenance costs over the long-term.

As one of the oldest existing businesses in this province I am proud to report we have one of the longest histories of community involvement. It is, and always has been, our employees who make the difference. With over 600 employees and almost 700 retirees located across the province, we will remain unwavering in our commitment to improving safety and reliability as well as caring for our environment and communities.

At Newfoundland Power we view ourselves as carpenters building a sustainable home. Every time we make a choice - we do it wisely. After all, we know our life tomorrow will be the result of our attitudes and choices today.

Earl Ludlow President and Chief Executive Officer Newfoundland Power Inc.

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Corporate Profile

Newfoundland Power and its predecessor Newfoundland Power services approximately companies have been engaged in the 85 per cent of the electricity consumers in the production and sale of electricity since 1885. province with Newfoundland and Labrador Newfoundland Power, a regulated investor- Hydro servicing the remainder. The map on owned electric utility serves over 247,000 page 7 depicts the geographic areas serviced by customers throughout the island portion of the the respective utilities. province of Newfoundland and Labrador. Approximately 97% of Newfoundland Power’s total revenue comes from customer rates.

Newfoundland Power… Operates 23 hydro generating plants, three diesel plants, and three gas turbine facilities. Operates 130 substations. Maintains approximately 11,000 km of transmission and distribution lines.

Newfoundland Power operates under the jurisdiction of the Newfoundland and Labrador Board of Commissioners of Public Utilities which has regulatory authority over rates, policies, capital expenditures and the issue of securities.

All the common shares of Newfoundland Power are owned by Fortis Inc. (TSX:FTS), the largest The Company purchases about 93 per cent of its investor-owned distribution utility in , electricity from the Crown Corporation which serves approximately 2,000,000 gas and Newfoundland and Labrador Hydro, and electric customers, and has assets exceeding generates the balance from its own smaller $13 billion. hydroelectric stations. The map on page 6 identifies the location of these generating facilities.

Customer Distribution Category of Service Number or Customers Residential Customers 214,515 Commercial and Street Lighting 32,648 TOTAL 247,163

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Newfoundland Power Island Generation and Transmission Grid

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Geographic Service Areas

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Highlights

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Environment

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Transmission and Distribution Lines

Distribution and Transmission Lines (kms)

12000

2067 2067 2067 10000

8000 Transmission

6000 Distribution 8860 9005 9168 4000

2000

0 2009 2010 2011

Newfoundland Power’s transmission and distribution line management includes identifying deficiencies through inspections and repairing them before they yield negative results. In 2011, Newfoundland Power spent $5.5 million to upgrade transmission lines.

To continue providing reliable and safe electricity in 2012, our Company plans to continue this trend. Our plans include strengthening several transmission lines and the construction of distribution lines to connect new customers.

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Atmospheric Emissions

The Company uses Sulphur Hexafluoride (SF6) in Based on service history it was determined that its circuit breakers. Sulphur Hexafluoride is a the Westinghouse/Siemens breakers, which persistent greenhouse gas which contributes have been in service for some time, have a significantly to global warming. higher potential to release SF6 gas compared to breakers from other manufacturers. There Newfoundland Power, in its effort to limit the were 30 of these Westinghouse/Siemens

amount of SF6 released, has implemented a breakers in service as of year-end 2006. These number of initiatives such as: 30 breakers were identified and scheduled for

Using SF6 gas reclaimers to capture SF6 refurbishment. In mid-2008, it was decided gas during maintenance which that the Company would be replacing these

significantly reduces the quantity of SF6 breakers with new units. As of year end 2011, being released. 29 units had been refurbished or replaced with

Maintaining SF6 circuit breakers to include new breakers. bushing gasket replacement and checks

on the integrity of the SF6 gas containment system.

The Company has an ongoing 10 year regular

maintenance cycle for all SF6 breakers. These breakers were built by various manufactures

and are of various vintages.

Old breaker New breaker

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Newfoundland Power is committed to protecting wildlife and the environment.

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Recycling CFL’s

Compact fluorescent lamps (CFL’s) are more Here the waste is chemically treated and efficient than regular incandescent light bulbs stabilized to produce a non-leaching concrete for two main reasons: one, is that they use up like material. It is then placed into a secured to 75% less electricity and two, they last up to landfill. 10 times longer.

Mercury is an essential component in most energy efficient lamps. Fluorescent lamps, high intensity discharge (HID) lamps, and CFLs are the most common types of mercury containing lamps. Proper handling of these mercury containing bulbs will reduce human exposure to mercury and reduce the overall amount of mercury entering the environment. In 2011, the Company started a program that saw our waste contractor collect and dispose of all mercury containing bulbs, thereby removing them from the regular waste stream with the assurance that our spent lamps would be properly managed.

Newfoundland Power continues its company-

wide CFL Recycling Program for employees in

partnership with an outside organization.

Employees are encouraged to make use of the

program to dispose of the used CFL’s from home and work in an environmentally friendly manner.

Newfoundland Power’s recycled CFL’s are managed by our Waste Management Contractor. The recycled CFL’s are brought to the contractor’s facility where they are crushed and then sent to Quebec.

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Committed to the Environment

As stated in our Corporate Environmental Policy, The Company’s EMS is designed to mitigate the Newfoundland Power is committed to providing risks associated with the potential release of electrical service to its customers in an hazardous substances into the air, water and soil environmentally responsible manner and to meet as part of its day-to-day operations. The EMS is the requirements of all environmental legislation subdivided into five key components of the and comply with all accepted standards of Company’s business operations. These environmental protection. To fulfill its policy components are (i) the fossil fuel plant aspects; objectives, Newfoundland Power has created and (ii) hydroelectric plant and watershed aspects; (iii) implemented an Environmental Management substation aspects; (iv) transmission and System (EMS). distribution aspects; and (v) general aspects.

One key hazard, which is common across most aspects, relates to the risk of air, soil and water contamination that could stem from the storage of large volumes of fuel and the use of other petroleum based products in day-to-day operating and maintenance activities.

Newfoundland Power has an internal electronic application called PREVENT. This on-line program provides a single access point for reporting and tracking incidents and hazards. It has increased our ability to identify problem areas and take the necessary corrective and preventive actions. Corrective and preventive actions are reviewed and signed off by the respective Superintendent and then reviewed for effectiveness by the Director, Environment.

In addition, we have many preventive programs in place such as our Feeder Inspection Program which ensures that all of our feeders are inspected on a 7 year cycle; our PCB Phase Out Program which has resulted in 88% of all feeders and 93% of all substations having less than 50 mg/kg PCB; and our Padmount Inspection Program which ensures that all padmount transformers are inspected yearly. Newfoundland Power has also partnered with Spill Response Contractors across the island to provide 24 hour on call response to spills in our operating areas.

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Priority Spills

Although Newfoundland Power’s EMS is designed to mitigate the risks associated with the potential release of hazardous substances, two priority spills did occur in 2011. A priority spill refers to: A petroleum spill that is over 500 liters; A spill containing PCB’s over 1 gram; or, Any volume of petroleum based or PCB contaminated substance that enters a water body.

Our Sandy Brook Hydro Plant was shut down for In York Harbour, a “no power” call was received refurbishment and upgrades. While draining oil from a customer. A service crew arrived to find from the governor, a container accidently the transformer fuse open on the distribution released 2 liters of oil. The oil ran into a floor transformer. drain behind the governor and then into the collection sump. Since the plant was in shut It was determined that there was oil on the down mode, the sump was continuously pole, an indication that a leak had occurred. pumping to remove water which resulted in the The crew proceeded to remove the existing oil being pumped into the tailrace. In this case, transformer and replace it. The customer as is our standard practice during plant projects, indicated that the transformer had been leaking booms and pads were placed in the tailrace as a all winter but he had not called in about it until backup protection against a potential release. he lost power. There was no evidence of any oil This practice effectively contained the oil. As a staining on the snow. The transformer had further precaution a second boom and been previously identified during PCB testing as additional pads were deployed that prevented passing the Clor-N-Oil test. Newfoundland any environmental impacts. Power’s Spill Response Contractor was contacted and the cleanup of the site This was an isolated incident that would not commenced. There was no oil sample obtained occur in normal operating conditions. After the due to all oil being lost. The unit had originally incident all applicable procedures were contained 80 liters. Based upon this, the 1 gram reviewed and it was concluded that the spill rule was used as the only information that was was handled in an appropriate manner and that available was that the oil was less than 50ppm no improvements were identified. Regulatory PCB’s as a result of a previous Chlor-n-oil test. officials were notified of the spill. As part of preventive action, the Area Planner inspected other transformers in the area and a plan was put in place to replace some additional units showing varying stages of rust.

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A Power Line Technician installs grounds in preparation for line maintenance.

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PCB Management

Polychlorinated Biphenyls (PCB’s) are industrial pieces of oil filled equipment (volume greater chemicals that were used in the manufacturing than 1000 liters) were addressed. The of various products up until the late 1970’s. remaining contaminated equipment is These included electrical equipment, heat comprised of pole mounted distribution exchangers, hydraulic systems and other transformers located in non-sensitive areas and specialized applications. some oil filled equipment in various substations.

PCB contaminated oil filled electrical equipment Newfoundland Power has over 300 distribution has been an operational priority with the feeders of which approximately 88% have been Company for some years. From the time that declared as less than 50 mg/kg PCB’s on oil PCB’s were recognized as a problem to present filled electrical equipment. The remaining day, various initiatives have been deployed to feeders are scheduled to be completed by year remove PCB contaminated equipment from end 2015, well in advance of the Federal service. Early in the process, the Company Government requirement of 2025. As for oil concentrated on the high-risk areas. All oil filled filled equipment in substations, Newfoundland equipment located in sensitive areas were Power operates 130 substations of which 121 addressed to ensure that concentration levels have been declared less than 50 mg/kg PCB’s were less than 50 mg/kg PCB’s, then all large (this excludes bushings and instrument transformers).

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Environmental Management System

The Company continues to maintain its EMS in the information. The consultant was able to accordance with the requirements of the ISO merge the five databases containing 777 14001 international standard. In 2011, aspects into one database with 84 aspects. This procedures were reviewed and updated; was made possible by consolidating the training was given to employees; audits were individual databases, streamlining the existing conducted; and, work continued on a number database, and deleting redundant aspects. As of environmental programs. well, a new method for ranking the aspects was introduced while still meeting the requirements The annual Environmental Management Review of the ISO 14001:2004 Standard. was held with member of our senior executive team in early 2011. The meeting identified a The end result was that the database was number of actions that required follow up. One streamlined and improved and still managed to of these actions included a review of the capture the significant aspects that had been environment aspect database. identified in the larger database. The time to complete the review has been significantly An external consultant was engaged to reduced with value added. complete a review of Newfoundland Power’s environmental aspects database and streamline

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Biodiversity and Land Use

As part of Newfoundland Power’s EMS, the To enhance the ability of the Rose Blanche Company is proactive in reducing impacts to Brook ecosystem to support fish populations, fish and fish habitat as the result of operation of the Rose Blanche Hydro Development Hydro Plants. At Rose Blanche Brook, there is a incorporates several design features that procedure in place to minimize the impact of our ensure adequate flow is maintained operations on the flow of water downstream of downstream. Three fish passage structures and the plant. a habitat compensation channel are located in the river downstream of the plant, and the The Rose Blanche Hydro Development, which plant design ensures a regulated stream flow to was commissioned in 1998, is located on Rose support fish populations. Blanche Brook on the south-west coast of Newfoundland, approximately 45 km east of Port The compensation scheme utilizes two fishery aux Basques. The development site is flow compensation valves that can replace the approximately 5 km upstream of the community normal flow of water through the plant. The of Rose Blanche-Harbour Le Cou. The project first valve, located at the Forebay dam, is used utilizes runoff from 52 km2 of the 84 km2 Rose to provide water downstream of the plant in Blanche Brook watershed. the case of penstock dewatering.

The second valve, located in the powerhouse, is used to provide water downstream of the plant when the hydro turbine is not operating but there is water in the penstock. This motor actuated valve operates automatically in response to turbine operation.

All components of the fisheries flow compensation scheme are inspected regularly to ensure that Newfoundland Power continues to support the fish populations of the Rose Blanche Brook ecosystem.

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Emissions: Issue of Hydroelectric Reservoirs

The majority of Newfoundland Power’s smaller amount of CH4 (methane). However, hydroelectric reservoirs were constructed prior these higher emissions are temporary and to 1950. The last hydroelectric reservoir was gradually diminish and return to the levels given built in 1998 at Rose Blanche. This was the first off by neighbouring lakes and rivers during the hydroelectric development untaken by ensuing decade. As it has been more than 10 Newfoundland Power since 1983. years since the construction of a hydroelectric reservoir, Newfoundland Power does not have any initiatives or research programs that The initial impoundment of hydroelectric calculate or report on green house gas reservoirs resulted in higher green house gas emissions from reservoirs. emissions, mainly C02 (carbon dioxide) and a

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A work crew takes a moment to show the working conditions they can encounter.

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Adaptation to Climate Change

Newfoundland Power does not have an official The Company’s transmission and distribution program in place to adapt to the impacts of lines are designed to meet, and sometimes climate change, although the Company is exceed, standards established by the Canadian always mindful of it. However, the Company has Standards Association (CSA). Agencies such as programs in place that will mitigate the effects the CSA work to review available environmental of climate change upon its operations. For and climate data to help infrastructure example, Newfoundland Power is continuously designers with decisions about appropriate reviewing and assessing its design and material design criteria for the future. As well, when a standards and revising them based on changes new design is being completed for a particular to regulations, industry standards and operating area, Newfoundland Power reviews local experience. Improvements in these standards knowledge and operating experience in that are expected to result in increased life and area, taking wind and ice load history into reliability of existing lines, as maintenance is consideration, and increases its design completed, and new lines, as they are built. requirements accordingly. This results in the construction of stronger and longer lasting lines which are better suited to their operating environment.

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Society

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Employees

In 2011, Newfoundland Power’s retirement rate continued to rise and resulted in the addition of 65 new members to our team. This is the largest increase in the last 20 years.

Newfoundland Power continues to support and participate in career fairs and co-op programs with both Memorial University and the College of the North Atlantic.

Our new corporate website dedicated to attracting new employees has made relevant information more assessable to those seeking careers.

Employee by Status

Full Time 90.00%

Part Time 10.00%

New Hires

Management 39.30%

Union 60.70%

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Workplace Diversity

In 2011, in support of our corporate community Through the Society’s Supported Employment involvement initiative, Newfoundland Power Program, a longer term contact was sought to partner with the Vera Perlin Society established. Newfoundland Power now has a which is a not for profit, charitable organization contract in place with the Vera Perlin Society, dedicated to serving individuals with where their client and the job coach will developmental disabilities. Newfoundland perform work relating to meter demolition, Power offered paid employment to a Vera cleaning of tools and other general duties such Perlin client with a developmental disability. as floor sweeping.

Initially the Company hired the client from the This partnership has been a huge success due to Society’s Career Education and Exploration the enthusiasm and hard work of the client program for a one month work term. This himself, the support of the Vera Perlin Society, program is a pre-employment skills program for the Newfoundland Power teams in the Meter adults with a development disability. The Shop, Maintenance Shop and Human Resources client, along with his job coach, was placed in Departments, and our Union, IBEW, Local 1620. our Meter Shop where they prepared meters for demolition. The work term proved to be a success, so the Company sought out ways to have the client join our Meter Shop Team on a longer term basis.

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New members of our team include Apprentice Power Line Technicians.

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Investment in People

Employee Development – Newfoundland such as supervisor training, job safety planning, Power is very focused on employees’ success grounding practices and competency and the resulting corporate success by creating assessment for new hired Power line a continuous learning environment that Technicians. provides growth experiences for employees. We offer many programs that provide development opportunities to support personal and professional growth. Employees are encouraged to take part in job shadowing, worksite tours, mentoring, brown bag lunches and workshops. Each of these programs are designed to help broaden the scope of the business and enrich both day-to-day experiences and ultimately employee performance.

In house training is also a large component of our Employee Development Program. Courses offered include First Aid and CPR; WHMIS; Confined Space Entry, Environmental Planner, Fall Protection, Risk Management & Job Safety Planning and Worker Protection Code. Employees are eligible for reimbursement of tuition costs for courses at educational institutions.

Currently, more than 20% of our workforce has been employed with the Company for 5 years Our focus on learning and development or less. As new employees enter the workforce, continued to be strong in 2011. Our mentoring our job shadowing and mentorship programs program was very active and we made allow for the critical transfer of knowledge enhancements to our orientation program for between junior and senior counterparts. During employees and students. We also enhanced 2011, we completed a series of assessments the tools and services available to employees to and action plans tailored to improve field safety assist them with pre-retirement planning and performance in each of our operating areas. As offered a number of financial and retirement part of this initiative, employees have received planning sessions. We took an inventory of coaching through worksite assessment, job critical skills among technical staff in the specific training and participation in safety Company to identify areas of expertise. This meetings. It has also helped to identify a resulted in a risk analysis which involves number of improvement opportunities in areas matching skills sets by department and location.

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Employee Health and Wellness - Newfoundland Blood Pressure Monitoring Program – every Power initiated a Corporate Health and worksite has an automated blood pressure Wellness Program in 2010 entitled Health (BP) monitor so employees can check their Connections. This program continued in 2011 BP on a regular basis. BP monitors can be with the launch of a new web page on our signed out for home use for one week intranet and several new additions to the intervals. There are 27 BP monitors Program. The website provides information on throughout the Company. health and wellness and health resource Health Promotion – Monthly Theme and information. Other initiatives under the Poster Series. program include: Healthy Lifestyle Screening Clinics – healthy Fitness Reimbursement Program lifestyle clinics are offered throughout the Smoking Cessation Program – in January year. They focus on healthy lifestyle needs, 2011, we launched our new Smoking setting personal goals and clinical screening Cessation Program in partnership with the such as glucose, cholesterol, blood Newfoundland and Labrador Lung pressure, body mass index, and weight Association. checks. Referrals to family physicians for Travel Health – travel health counseling is further health consultations are made for provided to employees who are on the any tests resulting above or below normal Hurricane Team as well as travelling for ranges. personal reasons. Kidney Foundation – Newfoundland Power Influenza Immunizations – in 2011, 180 hosted the first Employer Screening Clinic influenza vaccines were administered to for the Kidney Foundation of employees and family members across the Newfoundland. The Kidney Foundation Company. offered screening for early detection of kidney disease. We had such a tremendous response from employees that a second clinic was added and we still turned employees away as all appointments were taken. Blood Work Collection Clinics – we continue to offer blood collection services in St. John’s and . Employees report the service is invaluable not only for the convenience but the easy access to services motivates them to be proactive with health screening.

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Public Education and Stakeholder Engagement

Firefighters Electrical Safety Seminars: EnviroFest: Newfoundland Power held its 14th Newfoundland Power continued our more than annual EnviroFest celebrations at 8 of our area 30 year history of educating firefighters about locations during Environment Week. Through the safest ways to fight fires in the proximity of events tailored for each area, we educated high voltage power lines and equipment. We thousands of participants about how to take completed training with 120 firefighters in better care of our environment, and completed 2011, bringing the total number of firefighters tree planting and beautification projects to receive the training to date to approximately throughout the province. EnviroFest is held 8,500. each year in celebration of National Environment Week, and each EnviroFest event is unique and exciting. Everything from environmental bingo, environmental and energy efficiency demonstrations, school ground clean-ups and tree plantings help students learn about the importance of protecting the environment.

Safety Advertising: The majority of our corporate advertising in 2011 was focused on keeping electrical safety top-of-mind with the general public. In addition to our radio and print campaigns, we launched new television ads that highlight the potential danger and consequences involved with using heavy construction equipment and tree trimming near energized power lines. We continue to use Twitter to communicate real time safety information to the public and warn of potential weather related concerns.

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High Line Hazard Kit: Our employees and National Tree Day: Newfoundland Power retirees carried out our Company’s proud partnered with the City of St. John’s and Tree tradition of teaching members of the Canada to kick off the first National Tree Day at community about electrical safety. We Bowring Park in St. John’s. During the event, demonstrated potential hazards in and around school children and other participants planted the home to more than 2,600 children in trees, took part in safety demonstrations and approximately 40 schools across the island. learned lessons in tree care.

Fish Friends: We celebrated our 14th year as a corporate sponsor of the Atlantic Salmon Federation’s Fish Friends program. Since its inception the Company has invested approximately $80,000 to help students in schools across the island raise and release thousands of Atlantic salmon fry into our streams and waterways. The ASF Fish Friends public education program educates children about environmental sensitivity and freshwater fisheries. The program focuses on the life cycle of fish through posters, brochures and an incubation unit that allows fish eggs to hatch and grow right in the classroom. At the end of the program, students release the fish back into local freshwater streams and rivers.

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A helicopter is used to transport poles on the Bonavista Peninsula.

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Corporate Awards

Sean LaCour, Manager, Operations with Newfoundland Power, accepted the award on behalf of the Company. “Protecting the environment is well entrenched in our culture and we are proud of our environmental programs and stewardship activities,” he said. “This award demonstrates our commitment to the environment and ensuring a sustainable future for generations to come.”

Environmental Achievement Award - Newfoundland Power was recognized with the 2011 Environmental Achievement Award at the 2012 Newfoundland and Labrador Construction Certificate of Appreciation - In January 2011, Association (NLCA) Chairman’s Ball and Awards Newfoundland Power launched our revised Gala. The award is presented annually in Smoking Cessation Program in partnership with recognition of those who exhibit exceptional the Community Action and Referral Effort involvement in environmental enhancement or (CARE) program of the Lung Association’s stewardship activities through sound Smoker’s Helpline. Each year the Lung environmental and conservation management Association provides an award to the top- practices. referring health care providers, community leaders and workplaces. Newfoundland Power In addition to Newfoundland Power’s history of was one of the top-referring workplaces for hosting EnviroFest activities in 8 locations 2011 and we were awarded with a Certificate of across the island each year, the Company’s Appreciation. 2011 saw our highest rate of involvement in sustainable projects as well as participation in this program in five years - this our commitment to energy conservation and included both employees and family members. remaining compliant with the ISO14001 The Company is proud to provide the support to Environment Management System all help them on their way to being smoke free. contributed to Newfoundland Power being recognized with this award.

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Innovation

The Rattling Brook hydroelectric development is over a labyrinth with a similar base dimension. the largest generating station operated by This project resulted in improved employee Newfoundland Power and is located in central safety and reduced operating costs. The old part of the province. The development was spillway could take up to 50 person hours to placed into service in December 1958 and has operate, often in very poor weather conditions. provided 54 years of reliable energy production. The new Piano Key Spillway requires no In 2011, Newfoundland Power completed the operator interaction, eliminating risk to replacement of the aging 105m long stoplog employees and reducing employee work load. spillway that was original to the development. The old spillway was deteriorated and no longer It is highly likely that the spillway would be met modern dam safety structural standards. required to operate during extreme weather The stoplog spillway was replaced with a Piano events, when access routes could become Key Spillway. The refurbishment and rising of impeded. The new Piano Key Spillway provides the surrounding dams at Rattling/Amy’s Lake much improved reliability during these extreme was also completed at the same time, to fix events as unlike the old structure, there is no existing freeboard deficiencies as well as requirement for staff to be on the site to accommodate the new spillway configuration. operate the structure.

When viewed from above, the Piano Key The improved sustainable design is expected to Spillway shows a simple rectangular pattern. outlive its 54 year old predecessor with very Each rectangle section is made up of an inclined little maintenance. It will provide improved ramp that alternates sloping upstream and employee and dam safety and will provide downstream. Each section is cantilevered over increased energy output of 1.24 GWh for years the base, providing an extended crest length to come.

Rattling Brook spillway prior to the upgrade. Rattling Brook’s new piano key spillway.

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Safety Recognition

Our Safety Leader(s) Among Us Award Program demonstrated commitment and leadership as was initiated in January 2011. This award is seen by supervisors, employees, contractors, presented on a nomination basis to any and/or the general public. This program individual or group of employees who have profiles the individual(s) and their demonstrated their dedication and leadership accomplishment(s) through an employee in the area of Health & Safety. The monthly release, employee newsletter, etc, announced Safety Leaders are selected based on at the beginning of each month.

January February March April

May June July August

September October November December

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Economy

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Community Involvement

Newfoundland Power is proud to partner with The Project works closely with the Dr. H. Bliss other community minded organizations for the Murphy Cancer Care Foundation and cancer betterment of our communities. In addition to centers across the island to identify and address providing in-kind support, corporate donations area specific needs. In 2011, some of the and sponsorships, our employees took a hands initiatives included: helping almost 500 families on approach to community involvement in through the Foundation’s Patient and Family 2011. Support Fund; supporting children living with cancer attending Camp Delight; upgrading the Power of Life – Newfoundland Power donated waiting room at the Cancer Centre Western $150,000 through its corporate charity, The Region in Corner Brook; donating a blanket Power of Life Project, which raises funds for warmer to the Cancer Centre in Carbonear; and, cancer treatment equipment, support providing 12 automated blood pressure programs, and education and awareness. The monitors to a variety of cancer centers across commitment of the employees and retirees to the island. organize annual fundraising events, combined with a corporate donation and monthly We unveiled a new logo for The Power of Life donations from employees and customers is Project in November, with the goal of increasing making a difference in the lives of cancer awareness for The Project. Since it began in patients and their families throughout the 2002, The Power of Life Project has donated in province. excess of $2.0 million to support cancer care.

Red Cross - As part of our commitment to give back to our communities, Newfoundland Power donated $50,000 to the Red Cross‘s Prepared campaign to help increase its disaster response capacity.

Learn Not To Burn Program – The Company provided $15,000 to support the Newfoundland and Labrador Association of Fire Services’ Learn Not to Burn Program for schools across the province.

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Partners for Life – Newfoundland Power employees’ commitment to giving the gift of life remains strong. In 2011, we exceeded our target of 300 blood donations in support of the Canadian Blood Services’ Partners for Life program. Since 2004, our employees and their families have made approximately 2,300 blood donations, helping to save up to 6,900 lives.

Employee Support - Throughout 2011,

employee groups and associations collected money and food at local Christmas parades for charities and food banks; gathered warm winter 2011 Run for the Cure team clothing for the Coats for Kids Campaign; delivered food as part of the Meals on Wheels initiative; and, entered corporate teams in fundraising events, such as CIBC Run for the Motorcycle Ride for Dad – The Company Cure. successfully collaborated with the Newfoundland and Labrador Chapter of Motorcycle Ride for Dad in the fight against prostate cancer. Along with assisting with promotional and awareness initiatives, we hosted almost 600 bikes at our corporate headquarters on Ride Day, helping to raise over $160,000 toward prostate cancer research and education.

Employees of Newfoundland Power gather food during the 2011 St. John’s Santa Clause Parade.

2011 Motorcycle Ride for Dad

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Newfoundland Power crews engage in a feeder rebuild project.

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Energy Efficiency

Refurbishment of several hydroelectric installed, allowing for the implementation of a generating facilities has improved energy water management system that is expected to production and has allowed Newfoundland increase production by 0.84 GWh annually. In Power to provide more low cost, clean energy addition, the maximum storage elevation on to customers. Sandy Lake, the primary reservoir for the development, was raised by 1m. By increasing The 6.4 MW Sandy Brook Hydroelectric the height of the spillway by 1m, spills during Development, located in central Newfoundland, period of high inflow will be reduced, increasing produces approximately 25.7 GWh of energy production by 0.86GWh. These upgrades are annually. Significant efficiency upgrades were expected to increase production by 6.6% at the completed in 2011 at this site. A new PLC based Sandy Brook Development. governor and unit control system were

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As part of our commitment to operating in an environmentally responsible manner, Newfoundland Power not only helped customers reduce their energy consumption, but we reduced our own.

The Company set a goal of helping customers reduce consumption by 5.1 GWh in 2011. With customer efforts through all residential programs like takeCHARGE, this amount was more than doubled to 12.1 GWh. Over 6,500 customers took advantage of our Energy Saver rebates.

Newfoundland Power also took on two projects aimed at improving the operating efficiency of our electricity system. These projects, coupled with other upgrades and replacements to equipment, saves 3577 MWh this year. The breakdown is shown in the chart below.

Energy Efficiency Savings (MWh/year)

Office/other buildings 9

Distribution facilities/systems 953

Transmission facilities/systems 835

Generation station and equipment 1780

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Newfoundland Power has helped its customers save approximately 19.8 GWhs of electricity from 2009 to 2011 and the residential programs accounts for 17.6 GWhs of the total.

From the beginning of the takeCHARGE Residential Energy Savers programs in 2009, there has been a steady and significant increase in the number of customers who use the programs to help make their homes more The programs provide residential customers energy efficient. In 2009, participants with rebates on insulation, programmable and numbered approximately 2,000 and in 2011 the electronic thermostats, and ENERGY STAR® number of participants grew to over 6,500 windows. Programs were promoted through annually. traditional media, augmented with grassroots initiatives including tradeshows, seminars, and point-of-purchase booths at building supply stores throughout the province. Social media was also successfully employed to reach customers. Approximately 73,000 visitors used the takeCHARGE website throughout the year, a 40% increase over 2010. New elements to the site include an energy efficiency tip of the week and social networking links. Customer engagement through the takeCHARGE Facebook page has also increased significantly to over 6,000 fans from about 650 at the end of 2010. Newfoundland Power is committed to the protection of birds and their nesting grounds.

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Newfoundland Power employees play a key role in educating the public on waysNewfoundland to conserve energy. Power: Committed to Sustainable Electricity Page 43 Electricity

Automated Meters

Automated Meter Readings (AMR’s) eliminate Replace for GRO (Government Removal the need for Meter Readers to physically access Order) and CSO (Compliance Sampling customer meters. The reading can be taken by a Order) requirements. remote handheld device by either a walk-by or drive-by method, depending on the distance AMR’s will eliminate the need to estimate in the from the meter. event of a meter being impeded by weather or any other obstruction. AMR installations will: Remove safety issues In 2011, Newfoundland Power installed 16,202 Eliminate “access to meter” issues new AMR’s to bring the total number in our Connect “new” services, thereby minimizing service area to 46,128. the impact on route growth Improve efficiency in operation (route optimization)

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Business Continuity

Newfoundland Power has a yearly schedule for Five Departmental Business Continuity exercising its Business Continuity and Disaster Emergency Management Plans were Recovery plans based on a cyclical testing tested with desk checks of their plans. strategy. In 2011, the following exercises were As a result, assumptions were verified, conducted: alternate facilities were confirmed, vendors and suppliers were checked, The Information Services (IS) group opportunities for improvement noted, performed a drill for the loss of file and and one Department used the print services. The exercise confirmed opportunity to consolidate their plans that file replication is occurring to reduce repetition and make updating between the production and disaster more efficient. recovery sites. Production Services provides mailroom, Also, in 2011 there were several real events print shop and administrative services that required Business Continuity Plans to be to the entire Company from its location invoked. in the Regional Operations Building in St. John’s. There was a walkthrough of The Loss of Postal Services Plan was the Production Services Continuity Plan invoked in the second quarter when that confirmed that their services could there was a loss of postal services due be provided if the Regional Operations to the Canada Post strike held Building became inaccessible. nationally. In the fourth quarter, water pipes broke on the second floor of our four story corporate office building resulting in a significant amount of water damage to the second floor and the floors below. This resulted in the closure of the building while the damage was assessed and clean up initiated. The IS department invoked their Business Continuity Plan and moved the corporate helpdesk to its designated alternate location where helpdesk staff were successfully able to receive, log and assign calls during the disruption.

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Resource Management

Asset Management: Newfoundland Power and safety policies and procedures. The utilizes the Avantis.PRO Enterprise Asset contractor is required to keep himself/herself Management (Avantis) system to organize, and all of his/her employees and track and understand asset utilization. This subcontractors informed of the applicable system supports the management of documentation and any updates to the organizational entities (pad mounts, feeders documentation posted on this website, which sections, substations, generation plants, and includes environmental requirements while transmission lines) from commissioning to working on behalf of Newfoundland Power. retirement. The Preventative Maintenance module of Avantis helps employees manage Product Recycling: Newfoundland Power asset maintenance in a proactive and planned participates in several supplier programs that manner, rather than treating maintenance as promote the collection and recycling of reactive or repair work which may have products for reuse, such as cable reels, wood resulted in environmental damage. pallets, cell phones/accessories, light bulbs and paper. We have also partnered with suppliers Contractors: All contractors performing work for the purchase of recyclable products such as on behalf of Newfoundland Power are paper and remanufactured toner cartridges. governed by the ISO 14001 environmental management system, an internationally Newfoundland Power currently has a five year recognized standard. All contractors must lifecycle for its personal computer assets from abide by and comply with environmental and acquisition through to retirement. When the safety legislations, rules and regulations, as Company retires computer equipment it first well as Newfoundland Powers’ environmental fulfills any requests for PCs received from and health and safety policies and procedures. schools or charity groups. The Company’s “Trailblazers”, a group consisting of retired Newfoundland Power has developed a website employees, manages these requests. In cases so that contractors working on behalf of the where the computer equipment is not suitable company shall have up-to-date access for further use it is disposed of using an regarding all environment and health electronic waste recycling company.

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For more information on this report, please contact

Paul O’Leary Director, Environment Newfoundland Power PO Box 8910 St. John’s, NL A1B 3P6

Telephone (709) 737-2868 E-mail [email protected]

Power Outages and Emergencies (24 hours) Telephone 1-800-474-5711

www. newfoundlandpower.com

Newfoundland Power: Committed to Sustainable Electricity Page 47 Electricity