Engaging Canadians in a Sustainable Electricity Future

Canadian Electricity Association ELECTRICITY 08

2008 - Volume 79 - Number 1 ENGAGING CANADIANS IN A SUSTAINABLE ELECTRICITY FUTURE

www.canelect.ca Message from Don Lowry CEA Chair President and CEO, CEA’s Chair EPCOR Utilities Inc.

Canada’s electricity sector is engaging in a wide-ranging public policy debate that will shape how power is produced, delivered and sold for generations to come. Table of Contents The debate touches on critical issues in environmental regulation, long-term energy security, Engaging Canadians in a economic competitiveness and infrastructure reliability. None of these issues can be effectively Sustainable Electricity Future . . . . 3 addressed in isolation, and each one must be considered when planning how we will meet Canada’s future demand for electricity. Risk Management: The Key to Sustainable Both Canada and the United States are experiencing growing economies and rising populations, Resource Management ...... 9 with consequential increases in electricity demand. Canadians, for example, already consume 21% more power today than we did 15 years ago and our population is forecast to reach CEA Member 40 million by 2030. Projections in both Canada and the United States call for a 25% increase Utility Profiles ...... 14 in generation capacity by 2025. AltaLink ...... 15 As an industry, we have a strong record of providing power when needed and our goal is to ATCO Electric ...... 16 continue to do so in the future. But in many North American regions new power generation ATCO Power ...... 17 is not keeping pace with growth. Construction is lagging behind demand due to uncertainties BC Hydro ...... 18 about environmental policy and transmission availability, regulatory processes that are prolonged by ineffective stakeholder engagement, and the impact of rising costs and scarce BC Transmission Corporation . . . 19 supplies of labour, commodities and parts. Brookfield Renewable Power . . . 20 CEA’s member companies are working to address these challenges in a North American con- ENMAX ...... 21 text, and although there remains uncertainty about future environmental regulations we have EPCOR ...... 22 also recognized for some time that we are working in a carbon-constrained environment. The FortisAlberta ...... 23 debate is not about the merits of long-term reductions in greenhouse gases or air emissions, but over how quickly we can get there, at what cost and who pays. FortisBC ...... 24 In March 2008 the federal government unveiled an aggressive plan to reduce Canadian Horizon Utilities ...... 25 greenhouse gas emissions 20% by 2020, and 50% by 2050, and target further reductions in Hydro One ...... 26 air emissions. To help meet these goals the Canadian electricity industry has already made Hydro Ottawa Holding Inc. . . . . 27 substantial investments that reduce the carbon intensity of power generation. Manitoba Hydro ...... 28 As we make further investments in cleaner power generation and new technologies we believe Maritime Electric ...... 29 it is essential that policymakers align the pace of change with our trading partners so that Canadian businesses can remain competitive. The Canadian and American electricity New Brunswick Power ...... 30 markets are extensively interconnected, and share many issues in common. Making generation, Newfoundland transmission and labour constraints a North American concern makes sense from both an and Labrador Hydro ...... 31 economic and a political perspective. Newfoundland Power ...... 32 CEA has put forward a thoughtful and credible perspective, and the Association is an influ- Northwest Territories ential participant in the dialogue about the future of the North American energy supply. My Power Corporation...... 33 focus as Chair has been on telling the story of Canada’s electricity industry, because we have Nova Scotia Power ...... 34 an interesting and progressive story to tell. Ontario Power Generation . . . . . 35 In this year’s publication you can read about the work our member companies are doing across Saint John Energy ...... 36 Canada to secure our high standard of living, support growth and improve our environment. I am pleased to have the opportunity to further the good work CEA has initiated during my Saskatoon Light & Power ...... 37 second year as Chair. In the year ahead, we will continue to engage member companies and SaskPower ...... 38 make progress on achieving CEA’s strategic goals. Toronto Hydro Corporation . . . . . 39 TransAlta ...... 40 Canadian Electricity Association, Electricity 08 is published by CEA to inform its TransCanada ...... 41 members on the activities of the Canadian electricity industry. Correspondence Yukon Energy ...... 42 should be addressed to the Editor, Electricity 08: 350 Sparks Street, Suite 907, Ottawa, ON K1R 7S8 CEA Environmental Tel.: 613.230.9263 • Fax: 613.230.9326 Stewardship Award ...... 47 Email: [email protected] • Internet site: www.canelect.ca Executive Editor: Francis Bradley • Editor: Brigitte Hébert CEA President’s Award Graphic design and production: Infoscan Collette, Québec of Excellence for Employee Électricité 08 est aussi disponible en français. Safety ...... 48 1 ENGAGING CANADIANS IN A SUSTAINABLE ELECTRICITY FUTURE

Electricity has been a persistent issue on the public policy stage, fueling debates on its generation, transmission, distribution and pricing for well over a century. Coined the “People’s Business” by Tennessee Valley Authority head David Lilienthal in 1939, electricity has maintained its prominent image as a key contributor to the common good and a symbol of Canada’s prosperity, leadership and quality of life. Along with industry and governments, individual Canadians and communities have a long and rich history of involvement in shaping our electricity system and such a tradition is particularly germane today.

Public understanding is an important factor of progress as the electricity industry adapts and transforms itself to meet increasing demand in a reliable, environmentally sustainable and competitively priced manner. Current issues such as those related to electricity infrastructure, energy efficiency, new technologies, regulation, the environment and security pose unique challenges to the industry, each of which is linked to public interest. As service providers, employers, benefactors, partners and members, utilities are intrinsically tied to the success and well-being of their communities, and thus uniquely positioned to improve and enrich them as well. Electricity is indeed the “People’s Business”, as much today as in 1939, though the urgency of relaying this message is reaching a critical point. As new generation, transmission and distribution infrastructure is required to ensure an adequate, reliable and sustainable supply of electricity, industry and governments need to raise awareness, build acceptance and transform public understanding. People must be educated in what it takes to deliver the reliable and affordable electricity that is so often taken for granted. Moreover, the overall benefit of electricity as a key part of an energy strategy for the 21st century must be communicated for such a plan to be successful. Canadians need to be well informed of and prepared for the cost of clean, efficient electricity that can support our energy-intense lifestyle and economy.

2 3 TIME FOR LEADERSHIP ON Understanding the Infrastructure Challenge More Can Be Less A Climate of Opinion ENERGY EFFICIENCY There is a climate of opinion building around energy efficiency and this presents an important opportu- Canada’s electricity infrastructure is at the same crossroads as other physical infra- Canadians need to understand that more can be less in the long term, and that the nity for energy efficiency to become part of the In 2006 CEA joined with the Canadian Gas structure across the country: it is aging and requires replacement, refurbishment, interests of society as a whole must be the first consideration. A more expensive fabric of Canada’s energy framework. With direct Association and regulators from Ontario and Alberta and in some jurisdictions, it implies significant new construction. Historical demand system can increase reliability and result in less loss of economic activity. More access to consumers and their understanding of in the development of a series of workshops, trends and future electricity use projections signal the scale of investment that expensive electricity can be consumed through more efficient technologies local electricity consumption patterns utilities are designed to take place over a two year period to might be required to meet Canada’s electricity needs. Between 1990 and 2005, resulting in less increase on the customers’ bill. And a more modern and efficient uniquely positioned to deliver on the expectations explore the fundamentals of utility energy efficiency overall electricity demand in Canada increased by 24 percent, fueled in large part infrastructure will result in less environmental impact and less drag on the Canadian around energy efficiency. However, they cannot do programming and regulatory oversight of these pro- by a growing population, an expanding economy and greater use of electrical economy. All in all, getting the investment conditions right will help make Canada it alone. Effective coordination of policy, programs grams. Discussions centered on the experience to equipment. Despite improvements realized through energy efficiency and demand a destination of choice for long term capital and pay significant dividends in terms and regulatory efforts along with long term policy date in Canada, experiences from other jurisdictions, management, electricity demand is projected to increase by an annual average of both productivity and quality of life. and program commitments and appropriate incen- program measurement and evaluation and rates. The growth rate of approximately 1 to 1.5 percent. dialogue helped to clarify the cost benefits program tives are needed to meet public expectations. The equation and achieve a greater understanding in the According to International Energy Agency projections, Canada will require invest- time is right to demonstrate leadership in energy regulatory community of the utility business case for ments in excess of $185 billion between now and 2030 to replace and build new Moving Forward efficiency to ensure a sustainable energy future. energy efficiency. Two years later, energy efficiency, generation, transmission and distribution infrastructure. At a minimum the right driven by environmental concerns, economic com- investment conditions must be put in place to address the electricity infrastruc- Issues related to the security, reliability and sustainability of Canada’s electricity Responsibility for Delivery of petitiveness and energy security remains a core ture deficit. Those conditions include a coherent energy policy framework that is supply stem from a convergence between such forces as: Energy Efficiency Programs (2006-2007) issue for utilities, energy regulators, governments – broadly supported, an effective and efficient regulatory environment where project • A rising demand for power fueled by a growing economy and population; 100% and citizens. investors can get process and timeline certainty, appropriate fiscal and monetary conditions where long term capital can be adequately rewarded, and a human • Aging public and private infrastructure that is nearing the end of its life; 80% 2007 % % 2006

resource pool deep enough to provide confidence that the job will get done. 63 Government Action • A growing recognition of the need to conserve and be stewards of our 62 60% In August 2007, the Council of the Federation issued Also critical to our industry’s success is greater public acceptance of electricity resources for future generations, and to operate in a way that is environmen- A Shared Vision for Energy in Canada in which they tally sustainable; infrastructure as a vital component of our quality of life and the foundation of a 40% called for the promotion of energy efficiency and sustainable and thriving economy. Tomorrow’s electricity system will be a smart • Increasing interest in the opportunity for creative collaboration between % %

conservation as the first step in their Seven Point 17 one, utilizing advanced digital controls to seamlessly move power across a real public and private investment in responding to these challenges. 20% 15 9% Action Plan. In September, the Council of Energy 8% time, self-healing network linking large and small power sources to load in a 6% 6% 1% 1% 1% 1% 1% 1% 1% 1% Ministers released a report which presented a foun- bi-directional manner. Such a system will be smarter, more efficient, and more Industry, governments and communities have a vested interest in understanding 0% 0% 0% . r dation for action on energy efficiency. The document these forces if Canada is to successfully address the challenges of achieving safe, e rc

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Source: CEA Public Attitudes Survey, 2007 Public Expectations Most importantly, the public is increasingly recognizing the benefits and importance of better managing their energy consumption. CEA’s 2007 Public Canadian Electricity Generation by Fuel Type, 2007 OECD North American Energy Investment Requirements to 2030 Attitudes Survey reported that when it comes to Nuclear meeting the future electricity needs of their province 14.7% Oil Combustion 22.1% Canadians are most in favour of energy efficiency Turbine and conservation programs. Canadian electric utili- 4% Power 48.4% ties have long been delivering energy efficiency pro- Internal Hydro gramming and information to their customers and Combustion 60.4% Gas Canadians place high value on receiving information 0.2% 27.8% from their electric utility on using energy more Conventional Steam Coal efficiently. Three-fifths of those polled were of the 20.6% 1.7% opinion that their electric utility should be respon- Source: Statistics Canada, Survey 2151 Source: International Energy Agency, World Energy Outlook 2007 sible for delivering energy efficiency programs and • Hydro power is a fundamental component of Canadian electricity production, In 2007, the International Energy Agency (IEA) estimated that over $4.7 US trillion information. making up more than 60%. (cumulative) of energy infrastructure investment is needed from 2006 to 2030 in • Since 1990, the largest structural change in the production mix has been a decline OECD North America: in hydro power’s share of total production (from 63% in 1990 to 60% in 2007). • $2,246 billion US for electricity • $1,291 billion US for natural gas • Nuclear power’s share has increased recently, as facilities in Ontario returned to - 54% Generation • $1,023 billion US for oil service following refurbishment. - 14% Transmission • $78 billion US for coal • There have been important increases in combustion turbine generation since - 32% Distribution 1990 (from < 1% in 1990 to 4% today). 4 5 ELECTRICITY SECTOR SF The development of the quantification protocol 6 Addressing the Industry’s Challenges Enhancing Awareness and Collaboration EMISSIONS: PROACTIVELY under the MOU marks an important milestone for through CEA’s Strategic Goals tracking, quantifying, and managing SF6 emissions MANAGING AND TRACKING In order to maximize the potential of Canada’s electricity system, governments and in the electricity sector, while enhancing the sector’s industry need to collaborate on a sound public policy framework that will ensure SF6 USE AND RELEASES 1. Timely Investment in Infrastructure contribution to environmental sustainability. adequate supply, encourage efficient use of our energy resources, and promote Although the electricity sector is a relatively minor •We must overcome barriers to timely investment in infrastructure, including environmental sustainability. However, even with effective policy and regulatory Sulphur Hexafluoride (SF6) is a greenhouse gas emitter of SF6, Canadian electricity companies are siting, rates of return, community acceptance, and public understanding of need. conditions in place, the final arbiter and often the most significant hurdle to new (GHG) that has been used for over 30 years in the leading the way in terms of managing SF6 through utility industry as an insulating medium and for arc infrastructure development is public opinion. responsible action. 2. Coordinated, Effective and Efficient Regulatory Regimes interruption in electrical transmission, distribution, While there is broad consensus on the importance of reliable and affordable elec- and generation equipment. The combination of elec- • There must be stable policy and regulatory frameworks in place that provide tricity supply to our every day lives, there is a growing disconnect between indi- trical, physical, chemical, and thermal properties investors with the certainty needed to develop much needed power projects. vidual views and the collective interest when it comes to energy infrastructure makes SF unique and indispensable in electric 6 Coordinated, effective and efficient regulatory regimes within and between development. The costs of infrastructure are often evident, while the benefits power equipment, with no functionally equivalent governments, and more timely decisions to provide greater certainty for (reliable electricity supply that powers our homes, businesses and the economy substitute. However, the use of SF also has envi- 6 investors are essential to attracting investment in Canada’s electricity system. as a whole) tend only to be top of mind during or in the immediate aftermath of ronmental consequences. It has a significant global power disruptions. warming potential (GWP), which requires immediate 3. Coordinated Environmental Management and proactive action by industry to track and manage It is clear that critical to achieving a reliable electricity future is ensuring the public • CEA seeks a holistic approach and greater regulatory coherence on environ- SF6 use and releases. understands that the cost of unreliable power resulting from a lack of infrastruc- mental issues, in a manner that is results focused and preserves the widest ture development presents significant challenges to the economy and Canadians’ Recognizing the GWP of SF , CEA incorporated the 6 range of options in a sustainable manner. Governments should pursue a quality of life. This will require a long-term commitment and investment in outreach, management of SF into the Association’s 6 balanced strategy that calls for the generation of power from a mix of fuel education and transparency that will undoubtedly challenge our industry. But the Environmental Commitment and Responsibility (ECR) sources. Doing so captures the benefits each source brings, and reduces the evidence is mounting that if we don’t take on this daunting challenge, the costs of Program. Many CEA member companies have also risks that flow from an over-reliance on a single generation type. delays, inefficiencies and misunderstandings will be far higher, both to our indus- integrated SF into their Environmental Management 6 try and to the interests of society as a whole. Systems (EMS), best management practices, and 4. Development and Deployment of New Technologies internal occupational health and safety standards. • Maximizing the benefits of leading-edge technologies and deploying next-gen- In March 2007, CEA took this good industry practice eration technology is essential to meeting industry and customer needs and another step forward with the signing of a Memor- to ensure an adequate and sustainable supply of electricity. A strong market andum of Understanding (MOU) with Environment based framework (including tax and financial incentives and regulatory Canada to cooperate on SF release data from the 6 reform) will advance investment in commercial technologies that better serve electricity sector and share information on best prac- customer needs and meet expectations for sustainability. tices, guidelines, and technology developments on SF6. As part of the MOU, the electricity sector and 5. Energy Efficiency Environment Canada have now completed a first in • More needs to be done to encourage Canada to achieve its energy efficiency kind SF emission measurement and reporting pro- 6 potential. Customers expect their electricity supplier to provide options to tocol for utilities from coast-to-coast-to- coast. The assist them in using electricity more efficiently, to help manage customer protocol, consistent with the current guidelines of costs and minimize environmental impacts. Accordingly, governments and the Intergovernmental Panel for Climate Change stakeholders must increase efforts in support of energy efficiency informa- (IPCC), will be the first detailed guidance document tion, programs and offerings. Also, governments and industry must focus on made available for the measurement of SF releases 6 energy efficiency as a strategic energy policy that is supported by a long-term from electric utilities. It provides a detailed descrip- and sustained commitment to energy efficiency programs and incentives. tion of the uses of SF6 within the electricity sector, a description of releases resulting from current 6. Security and Protection of Critical Infrastructure maintenance practices, and internationally recom- mended approaches to the quantification and • Governments and industry must collaborate to ensure that the electricity

reporting of SF6 releases. system is protected from physical and cyber threats. Ensuring the long-term security, reliability and stability of the electricity system in Canada, consider- ing its key role in powering other critical infrastructure sectors, is essential to the economy and quality of life.

6 7 RISK MANAGEMENT: THE KEY TO SUSTAINABLE RESOURCE MANAGEMENT

Resource industries – with the electricity sector often leading – have worked FEDERAL MAJOR PROJECTS closely with the Department of Fisheries and Oceans (DFO) over the last several OFFICE OPEN FOR BUSINESS years on the development of materials aimed at streamlining the regulatory process. The Memorandum of Understanding (MOU) between DFO and the Canadian Large electricity projects typically require a compre- Electricity Association (CEA) was a significant step forward in that working rela- hensive environmental assessment, followed by a tionship. The multi-sector MOU between DFO and seven trade associations, includ- number of regulatory approvals. Better coordination, ing CEA, known collectively as the National Resource Industry Associations (NRIA), more timely outcomes, as well as greater accounta- is another. Both of these activities have emphasized improved communications, bility in regulatory decision processes are critical to consultation, and collaboration, and took as their starting point an initiative begun building needed electricity infrastructure to power within DFO, known as the Risk Management Framework. Canadian homes and businesses.

The framework is a simple matrix by which projects affecting fish and fish habitat In February, Natural Resources Minister Gary Lunn are classified as low, medium, or high risk. It offers a structured approach to char- launched the Major Projects Management Office acterize and communicate risks to fish and fish habitat associated with development (MPMO) to provide oversight and accountability to projects, and to identify appropriate management options to manage risks. Natural the federal regulatory process, and improve the resource development projects almost always have some effect on fish and fish timeliness and consistency of regulatory approvals. habitat, but those effects can fall anywhere on a risk spectrum. However strong or There is a critical linkage between an efficient and thorough a piece of legislation may be, there is inevitably a need for public officials effective regulatory system, and Canada’s ability to to review the particular impacts of a project, in other words for a judgment call. attract project investment. The federal government A risk management framework brings rules to the game for that judgment call, and and industry alike see an important role for the in so doing offers a means to reduce arbitrariness and increase certainty. MPMO to contribute to ensuring innovative and DFO’s Risk Management Framework is now a few years old but it is still early days competitive natural resource industries across in its application. Imbedding it in a very busy government department that conducts Canada while strengthening the protection of the itself in a highly decentralized manner is challenging. The success of DFO officials environment. in this effort is important however, not only because the Fisheries Act itself is so The MPMO will track projects as they progress important as a piece of legislation affecting resource projects, but also because through the regulatory system and work with regu- the risk management approach could set a precedent for how a series of other latory departments to identify and solve problems. pieces of federal resource legislation are implemented. Its tracking system will also let stakeholders and the Four such pieces of legislation are top of mind for resource companies today: the public track the progression of individual projects. Canadian Environmental Assessment Act, the Navigable Waters Protection Act, the At the beginning of the process, the Office will Species at Risk Act, and the Migratory Birds Convention Act. They all have a signifi- establish formal agreements for each project cant impact on natural resource management. Like the Fisheries Act, each of these between federal entities. These agreements will acts is particularly important today, when there is so much activity in the resource include timeframes and targets, including Aboriginal consultation workplans with defined roles and responsibilities. When necessary, the Office will intervene to address blockages of the system. The MPMO will also conduct research, identify areas where problems exist and pilot new approaches to improve Canada's system in both the short and longer term.

9 The 2007 Federal Budget provided $150 million over sector. Canadian resources and Canadian energy are supplying domestic and global five years to create the MPMO and enhance the economic growth, and the economic gains from that for our society are substantial. scientific and technical capacity of key regulatory But resources cannot be developed nor energy managed if projects cannot proceed departments and agencies that deal with major because of regulatory delays. No amount of clear permitting authority will be enough resource projects. Participating departments and to expedite this process, or better protect the environment. The fact remains that there agencies include the Canadian Environmental will always be a need for a reasoned assessment of what is and is not a priority con- Assessment Agency, Natural Resources Canada, cern, and why. A risk management framework is essential to do this. Environment Canada, Fisheries and Oceans Canada, What will it do? Quite simply, it will separate the tough projects from the easy ones. Transport Canada, Indian and Northern Affairs Those projects with lower risks can be managed using tools that permit a greater Canada, the Canadian Nuclear Safety Commission degree of self-regulation by the project proponent. In the case of the Fisheries Act, and the National Energy Board. lower risk projects are starting to be handled in this way. Best management prac- To ensure CEA remains on-track with meeting the tice documents and operational statements are being developed by industry in evolving needs of an ever-changing industry, the cooperation with DFO and then adhered to by industry to get projects through the Association’s Board of Directors recently undertook regulatory process. By following these and – attesting to the fact that they have a comprehensive review of its strategic direction. A done so – industry provides DFO with a means to “check the box” besides the pro- priority area identified by Board members was the jects in question and focus resources on higher risk projects. An auditing mecha- urgent need for more coordinated, effective and effi- nism is currently under development to provide a guarantee that the self-regulatory cient regulatory regimes within and between gov- process conforms to the regulatory objectives. While some argue that industry ernments and more timely decisions to provide cannot be trusted to comply in this manner, the existence and success of self- greater certainty for customers and shareholders. auditing by industry in a host of other areas makes it clear that the approach can The establishment of the MPMO is a step in the work well if properly designed. right direction. Managing lower risk projects in this way allows public officials to concentrate their CEA continues to work with federal officials to resources on the higher risk projects, and ensure that they are really getting the ensure that the MPMO and related investments in attention they deserve. By definition, higher risk projects could have a greater neg- environmental assessment and regulatory capacity ative impact on the environment, and so require the time and effort of profession- will improve the efficiency, predictability and als (engineers, biologists and others) to ensure that the best designs, the best accountability of the federal regulatory system, mitigation efforts, the best compensatory regimes, are used to minimize those neg- and improve the integration of all Canadian regula- ative impacts. In so doing, a more sustainable resource project can proceed, and tory jurisdictions as they apply to major natural Canadians can rest assured that public money dedicated to protecting our wealth resource projects. of resources is being well spent. This is sustainable resource management. For more information about the MPMO, please visit Where to from here? For the electricity sector, involvement with DFO has been a www.mpmo.gc.ca. long and at times a very confrontational process. Change doesn’t occur quickly, but through sustained cooperative engagement much progress has been made in applying a risk management based approach that meets the concerns of both sides. This needs to be encouraged, not just for the ongoing work with DFO, but with regulators responsible for the other pieces of legislation identified above. CEA and other industry trade associations need to lead this effort – it will mean a more efficient and effective regulatory process, driving our economy forward, and maintaining our environmental well-being.

10 11 Energy efficiency isn’t a zero-sum game, where the choice is between sacrificing quality of life or the environment. It’s about putting utilities and consumers in the driver’s seat to control how and when we use energy. Cellnet+Hunt is leading the way with the one network ready to combine smart metering, smart grid and personal energy management communications. That’s what it means to Manage Energy Better.

Learn more about how to manage energy better by visiting www.cellnethunt.com Scott Thon CEA Member Utility Profiles President and CEO

Most Important Issue 2008 Company Objectives Continuing to develop strong AltaLink Everyday Albertans use electricity – to make their morning • Creating Customer Value: coffee, to run their businesses, to light up their early days relationships with customers by listening, communicating and working with our many customer and stakeholder groups to ATCO Electric on the farm – and we need to be there when they flip the identify opportunities and solutions which meet their needs. switch. There’s no question Alberta’s appetite for electricity ATCO Power • Operational Excellence: Delivering value to Alberta ratepayers continues to grow. AltaLink is committed to transmitting by achieving operational excellence through continuous BC Hydro electricity from Alberta’s generators to the more than improvement of our business practices and processes. 85 per cent of Albertans we serve. Our most important issue BC Transmission Corporation • Supporting the Growth: Recognizing the importance of a reliable for 2008 is to meet the electricity needs of our existing and and efficient transmission system in a strong economy, AltaLink Brookfield Renewable Power new customers by getting much needed new transmission will look to find new, innovative ways to collaboratively build facilities in place. much needed transmission infrastructure in Alberta. 08 ENMAX • Positioning AltaLink as an Employer of Choice: Attracting, retaining and building relationships with the qualified workforce EPCOR Meeting the Needs of our Customers needed to sustain and grow our business. FortisAlberta Our team has been dedicated to ensuring Albertans have reliable electric supply since AltaLink assumed responsibility of our province’s FortisBC largest transmission grid in 2002. Without a significant upgrade to Horizons Utilities the transmission system in more than 20 years, the need to reinforce the system and serve Albertans is urgent. Hydro One Everyday, we strive for continuous improvement in order to get the Hydro Ottawa Holding Inc. necessary transmission infrastructure built and to keep the lights on in a more cost-effective way. By focusing on several areas – creating Manitoba Hydro customer value, operational excellence, supporting Alberta’s growth and positioning AltaLink as an employer of choice – we will provide Maritime Electric Albertans with safe, reliable and cost-effective transmission service New Brunswick Power well into the future. Newfoundland and Labrador Hydro Company Data Newfoundland Power Ownership: A Limited Partnership owned indirectly by SNC Northwest Territories Power Corp. Lavalin Group Inc. (76.92%) and Macquarie Transmission Alberta (23.08%) The Danford Arm is a hydraulically powered, boom-mounted robotic arm designed and intended for use at both distribution and transmission voltage levels. The Danford Arm Nova Scotia Power Number Approximately 365 makes energized work on transmission lines safer and more efficient. of Employees Ontario Power Generation Revenues $213,439,000 million for the 12 months ended Saint John Energy December 31, 2007 Saskatoon Light & Power Total Assets $1,450,298,000 as at December 31, 2007 Transmission AltaLink owns and operates the largest SaskPower Network transmission system in Alberta, supplying electricity to 85 per cent of the province’s Toronto Hydro Corporation population. AltaLink is responsible for the maintenance TransAlta and operation of more than 11,600 kilometres TransCanada of transmission lines and approximately 260 substations in Alberta. Yukon Energy

15 Sett Policicchio Rick Brouwer President President

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Ensuring the safe and reliable delivery of electricity • Improve safety performance. Operational excellence. • Continue to focus on operational excellence in all areas to our customers. • Implement human resources strategies that will support the of our organization. company’s projected growth. • Assessing and developing organic and external growth opportunities • Manage capital growth. • Continuous improvement in health, safety, and environmental Operational Excellence performance. During 2007, ATCO Electric experienced record levels of capital work in ATCO Power’s mission is to increase shareowner value by developing, • Implementing a human resources strategy to support the business distribution and transmission due to intense economic activity and grow- plans and sustained growth. Company Data owning, and operating world-class power generation projects in ing customer demand in Alberta. This kind of growth creates both chal- •Working collaboratively with the communities where we operate. lenges and opportunities, particularly with those operations in the high Ownership ATCO Group Canada and selected global markets. growth areas of the province like Fort McMurray and Grande Prairie. Number 197,364 Our focus in 2008 will be on enhancing the performance of our oper- of Customers The company invested a record amount of capital in 2007 – more than ations, capitalizing on development opportunities, respecting the envi- $296 million. This is over 30 per cent more than was spent in 2006, the Number More than 1,200 ronment and the health and safety of our people, and building and previous record year. That included more than $161 million invested in of Employees maintaining positive relationships with the people in the communities where we live, work, and operate. Overarching these objectives is distribution and $91 million in transmission. ATCO Electric also invested Energy Delivered 10,258,000 MWh millions of dollars in technology, fleet and isolated generation. a requirement to attract and retain a highly skilled and motivated Transmission Geographically, ATCO Electric serves almost workforce. We continue to differentiate the company as a preferred place to work and Distribution two-thirds of Alberta, delivering electric energy given our remote locations and the challenges that come with recruit- Network to petroleum and forestry companies, farms, towns and cities, First Nations and Métis ing in a busy economy. ATCO Electric has programs to support engi- Settlements in 245 communities. Company Data neers-in-training, new accountants and technologists and we are Ownership Canadian Utilities Limited / ATCO Ltd. bringing many new apprentices on board as well. Subsidiary Yukon Electrical Company Limited, Northland Companies Utilities Number 475 In 2007, ATCO Electric’s own power lineman apprenticeship program of Employees held its largest classes yet, and we are expecting further increases. Revenues $828.5 million (2007) In addition to intensive classroom learning, the program gives apprentices hands-on field experience working side-by-side with veteran line- Total Assets $2,412 million (2007) men who can pass on some of their years of expertise and experience. Generation 2,687 MW (2007) Apprentices are paid throughout their training. Capacity ATCO Power is a world-class developer, construction manager, owner and operator of technologically advanced and environmentally progressive independent power Our corporate objective is to be the safest electrical utility in Canada; Energy Produced 14,856 GWh (2007) generation plants. and “best in class” among members of the Canadian Electricity Subsidiaries ATCO Power Canada Ltd.; ATCO Power Association. Our aim is to meet and exceed safety requirements to Generation Ltd.; ATCO Power Australia Pty Ltd., keep our employees, customers and the public safe. Alberta Power (2000) Ltd.; ATCO Resources Ltd.; ASHCOR Technologies Ltd.

Dan Vachon (left) and Bill Woroschuk are part of the transmission line crew based in Vegreville Alberta.

16 17 Bob Elton Jane Peverett President and CEO President and CEO

Most Important Issue 500 MW unit at Revelstoke and the redevelopment of our Aberfeldie Most Important Issue 2008 Company Objectives Generating Station are examples of this reinvestment. BC Hydro continues to focus on planning for Overcoming issues of community acceptance in planning and • Reliability, Costs and Service: Achieve reliability improvements British Columbia’s electricity future by addressing BC Hydro is also seeking additional supply of clean power from implementing new transmission expansion and enhancement. while lowering costs and delivering outstanding service. • Market Efficiency: Ensure efficient use and development of the the emerging supply/demand gap. Independent Power Producers through our Standing Offer Program for small-sized generation projects, our Clean Power Call to contract for transmission system. up to 5,000 GWh of energy a year, and our Bio-Energy Call to utilize Meeting the Need: Building for a Clean • Environment and Safety: Continually improve our environmental wood waste and diseased timber. We are also undertaking compre- and safety management performance. Securing our Future for Generations and Reliable Energy Future • Relationships: Build open and constructive relationships with hensive consultation on the potential Site C hydroelectric project on stakeholders and First Nations. BC Hydro is in the midst of perhaps the most exciting and active period As a government-owned Crown corporation, BC Transmission the Peace River to explore this resource option. • Organization & People: Build an engaged and highly skilled since we completed the construction of our major hydroelectric facil- Corporation (BCTC) is committed to our mandate to plan, operate and Our ability to deliver on our business goals and priorities depends on workforce. ities in the early 1980s. The initiatives we are undertaking today are maintain the transmission system and continue the delivery of safe, the strength of our people. Most industrial sectors face an aging work- • Financial Return: Deliver the allowed return to our shareholder critical to British Columbia achieving energy self-sufficiency by 2016, reliable, and cost-effective electricity to the province. We’re driven by force and a shrinking labour market, and ours is no different. We are annually. and ensuring that future generations can enjoy the same benefits of the BC Energy Plan and its call for clean, renewable energy, and we addressing this challenge by actively investing in hiring and retaining low-cost, reliable power that we enjoy today. are conscious of the need to integrate new, energy-efficient technol- highly qualified employees, developing a diverse workforce and build- ogy into the transmission system. The 2007 release of the Province’s BC Energy Plan: A Vision for Clean ing leadership throughout our company. Company Data Energy Leadership aligns with many of the initiatives BC Hydro has With the future in mind, BCTC will continue to invest in improvements Ownership Crown corporation owned by the Province BC Hydro is committed to fulfilling our primary purpose, which is to been undertaking over the past few years. Among the Energy Plan’s and reinforcements to extend the life and enhance the capacity of our of British Columbia provide clean, reliable power at low cost for generations. We will action items, BC Hydro will be focusing on meeting 50 per cent of transmission system. Currently, the majority of BC’s transmission Number 26 wholesale transmission customers achieve this through a commutative and collaborative approach with incremental resource needs through conservation and efficiency by system is between 40 and 50 years old, and BCTC is working to make of Customers our customers, First Nations, communities in which we operate, and 2020; ensuring that all new electricity projects will have zero net our system more efficient, cost-effective, and environmentally sound. other stakeholders. Number 408 greenhouse gas emissions; and generating clean or renewable elec- New transmission lines and other system reinforcements mean reli- of Employees tricity that will continue to account for at least 90 per cent of total 2008 Company Objectives able, cost-effective energy for communities across BC. generation, placing the Province’s standard among the top jurisdic- Revenues $189.8 million in 2007 One of the biggest challenges we face in delivering infrastructure tions in the world. BC Hydro will be working to return the province to electricity self- Total Assets $145.6 million sufficiency by 2016. Realization of this target will require us to focus improvements is community acceptance of new transmission lines. To help address the gap between electricity demand and that which can Transmission 287 substations; 18,280 km of high voltage lines conserving more, buying more clean energy from Independent Power Communicating British Columbia’s need for transmission improve- be supplied from existing resources, we have developed an updated Network Producers, and building more by reinvesting in our heritage assets and ments to communities will play a key role in developing long-term Demand Side Management plan that will aggressively target 10,000 GWh assessing new resources. As we address these issues, we will solutions to meet growing energy demands across the province. of savings by 2020. In addition, we are investing significant resources in continue to focus on our short-term priorities: safety; reliability of our existing heritage assets to ensure that the low-cost benefits these BCTC is dedicated to working with stakeholders to develop expan- supply and for customers; climate change, energy conservation and provide continue into the future. Projects such as the addition of a fifth sions that will meet the needs of our growing and dynamic province. efficiency; financial targets; customer satisfaction; and people. By working with communities, customers, and our transmission partners, we are delivering state-of-the-art, efficient and cost-effective Company Data solutions to transmission expansion in BC. Ownership Commercial Crown Corporation, owned by the Energy Produced Between 43,000 and 54,000 GWh of electricity Province of British Columbia annually Number More than 1.7 million Generation Our generation system, of which 90% is based of Customers Capacity on clean, renewable hydroelectricity, has a total installed capacity of 11,300 MW Number 4,546 (as of March 31, 2007) of Employees Peak Demand 10,113 MW, recorded in Fiscal 2007 for Power Revenues Net income in fiscal 2007 was $407 million. Domestic sales were $2,791 million and trade Transmission Electricity is transmitted through approximately electricity sales were $1,406 million. 52,911 GWh and Distribution 18,280 kilometres of transmission lines and were sold domestically, with 41,336 GWh through Network 56,000 kilometres of distribution lines. trade in fiscal 2007. Subsidiaries Powerex Corp. is a leading marketer of Total Assets $12,845 million wholesale energy products and services in Western Canada and the United States. Building BC’s transmission future. Total Electricity 94,247 GWh (Fiscal 2007) Powertech Labs offers a full range of Sold engineering, testing, and analysis services Total Energy Sales $4,197 million (Fiscal 2007) to clients around the world.

18 19 Richard Legault Gary Holden President and Co-CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Producing reliable, low cost power with a priority on health, • Expand our high-quality, long life asset base through acquisition Deliver creative solutions to provide cleaner, • Provide leadership in areas of new technology. safety and the environment. or development. reliable energy for our customers. • Expand generation capacity. • Promote excellence in all our operations. • Expand core competencies in other generation technologies. • Achieve excellence in safety performance and be recognition as Brookfield Renewable Power manages the power generating and industry leaders in accident prevention. Strong. Simple. Sustainable. Company Data marketing operations of Brookfield Asset Management, a global asset • Manage natural resources in ways to ensure sustainable (Data is for year end 2007) Three important words at ENMAX that serve as guideposts for 2008 manager focused on property, power and other infrastructure assets. development. Ownership City of Calgary, 100% Building on 100 years of experience, Brookfield Renewable Power is as we continue to advance our company's projects, as well as launch new ideas and initiatives. Number 500,000 a leading producer and developer of primarily renewable power, using of Customers water and wind resources, with a growing portfolio of generating Company Data We draw our strength from our solid financial record coupled with the Number 1,226 assets. Currently, operations include over 160 generating facilities that expertise of our employees – whether they are keeping the lights on Ownership Brookfield Renewable Power comprises the of Employees provide energy to markets in North America and Brazil. power generating, distribution and marketing in the middle of the night, exploring more energy-efficient ways of operations of Brookfield Asset Management Inc. Revenues $2.1 billion In 2007, total assets increased to US$6.8 billion from US$5.4 billion due generating and delivering electricity to our customers, or finding ways in part to the acquisition and development of power facilities. Number Primarily public utilities, industrial customers to provide the highest quality billing and customer care services. It is Total Assets $2.5 billion of Customers and other market participants in North America on this strong foundation that we confidently forge ahead to bring We increased the overall installed capacity during the year by 117 mega- Energy Delivered 33,987 GWh watts through the addition of 18 facilities with expected annual gener- and Brazil new solutions to the industry. Generation 1,892 MW (includes wind power generation ation of 500 gigawatt hours. We acquired five facilities in North America Number 1,000 across North America and Brazil One of our major accomplishments in 2007 was the official opening Capacity and PPAs) with installed capacity of 28 megawatts at a cost of US$67 million. We of Employees of our 80 MW Taber Wind Farm, the largest project of its kind in Peak Demand 1,559 MW also increased the number of facilities in Brazil by 13 through acquisi- Revenues US$963 million (12 months ended December 31, Alberta. We're proud of the fact that our wind farm is a source of for Power tions and development at a total cost of US$188 million. 2007, including operations in North America clean energy and we continue to pursue initiatives that underscore and Brazil) In addition, we have six hydroelectric facilities under construction that our commitment to sustainability. We're even getting closer to offer- Transmission 7,514 km and Distribution Total Assets US$6.8 billion in high quality power assets ing energy-efficient micro-generation options for the home or business. will expand our capacity by 145 megawatts at a total projected cost Network of US$352 million. Energy Produced 13,000 GWh 2008 will see ENMAX continue to be a reliable and safe energy Total Energy 15,958 GWh provider and retailer for more than half a million customers through- Brookfield Renewable Power takes responsibility for managing natural Generation 3,900 MW Sales resources in ways that ensure sustainable development. In 2007, the Capacity out Alberta. Plans to build two new gas-fired generation facilities in Subsidiaries ENMAX Energy Corp., ENMAX Power Corp., company implemented 14 sustainable development initiatives with southern Alberta will ensure our long-term ability to better serve our Distribution Great Lakes Power Ltd. customers. Our highly popular EasyMax energy retail program, which ENMAX Energy Marketing Inc., ENMAX a total investment of more than $1 million. These projects, which Commercial Energy Marketing Inc., ENMAX Network grew in leaps and bounds in 2007, will continue to offer customers a support communities surrounding our facilities, are aimed at conser- Envision Inc., ENMAX Green Power Inc., Valeo vation, preservation and the support of economic development. competitive choice in the deregulated market. Power Corp., Furry Creek Power Ltd., Hydromax Through it all, our focus is to keep it simple. We'll make it easy for Energy Ltd., ENMAX Power Services Corp., The Brookfield Renewable Power management philosophy is guided ENMAX Utility Services Ltd., ENMAX households to adopt energy-efficient technologies and save money at by a core set of values dedicated to protection and enhancement of Encompass Inc., EnPower Green Energy the environment, health and safety of employees and the public, and the same time. We strive to make the overall customer experience Generation Inc. a commitment to local communities. Going forward, we will continue just as easy. We'll make it as simple as ... turning on the lights. to maintain our growth momentum in the North American and Brazil energy markets by remaining focused on acquisition and development opportunities.

The Taber Wind Farm, developed by ENMAX Green Power Inc., is the largest project of its kind in Alberta, with 37 Enercon turbines located southeast of the town of Taber. The wind farm has a total generation output of 80 MW – enough to power more than 32,000 homes. 20 21 Don Lowry Karl Smith President and CEO President and CEO

Most Important Issue This is an exciting period in EPCOR’s history. The challenges before Most Important Issue 2008 Company Objectives us are many; how we resolve them will help shape the evolution of • Continue to deliver consistent earnings driven by customer growth EPCOR’s focus in 2008 will be on implementing our capital Canada’s power industry for decades to come. Delivering quality customer service is fundamental to program, monitoring the company’s risk exposure and FortisAlberta’s success. In 2008, the Company will enhance and an increased rate base. • Improve customer service through key initiatives such as enhancing financial position, building the competitiveness of the EPCOR customer service through targeted initiatives such as: 2008 Company objectives relationships with developers and other key customer groups, Power L.P., and using our environment strategy as an enabler • building relationships with customers and key implementing automated metering technology, expanding use of for our business. • Continue with construction of the 495 MW Keephills 3 stakeholders; electricity-driven equipment for oil and gas opportunities and supercritical coal plant co-owned with TransAlta Corporation. • installing automated metering technology to provide establishing new performance targets for new customer • Installation of the second of three natural gas-fired turbines at the accurate daily meter reads and eliminate the need for connections, outage management and first call resolution. EPCOR’s people continue to make progress toward our goal of becom- Clover Bar Energy Centre, and planned completion of the estimated metering; and • Focus on discretionary capital spending through strategic ing one of the best power and water companies in North America. Edmonton Downtown Supply and Substation project. • implementing new responsiveness targets for new customer investments in the electrical system to improve reliability through • Continue to examine the project design, schedule and regulatory connections, outage management and first call resolution. initiatives such as replacing aging facilities, improving construction We are focused on implementing a plan to invest almost $4 billion process for the Kingsbridge II Wind Power Project. standards, upgrading lines and installing distribution automation over the next five years (2008-12) – $3 billion in new power genera- • Continue to pursue cleaner power generation through the Genesee equipment to restore service faster. tion and infrastructure and about $1 billion in new water and waste- IGCC project and explore supplying power and recycled water to Managing Growth and Focusing on Customers • Improve operational capacity and meet customer demands for new water facilities – while, at the same time, transforming the processes the Carbon Development Partnership’s Dodds-Roundhill project. load by connecting approximately 13,000 new customers to the we use to run our business. The company’s income growth depends • Advocate for public policies that support our vision of cleaner Operating in a robust economy with increased customer demands, electric system. on expansions at our current operations, improved operational effec- power, cleaner water and a cleaner future, and address the lack FortisAlberta’s focus in 2008 will be to balance customer needs, • Continue improvement in safety performance and increase public tiveness, and the successful development and acquisition of power of transmission infrastructure. reliability, safety and environmental requirements with prudent awareness of electrical safety hazards through new work techniques and equipment, safety education, and training to and water assets. • Continue to design internal processes that optimize returns on capital investment to improve reliability and service for customers. existing assets, achieve operational improvements, and create employees and external high-risk groups. EPCOR’s capital plan remained on track in 2007 with investments a zero-injury culture. In 2008, FortisAlberta will focus on improvements in all areas of • Increase visibility in Company’s service territory through community approaching $500 million. In February 2007 we began construction of interactions with customers and stakeholders. Providing excellent investment programs highlighting safety, education and the environment such as partnerships with Shock Trauma Air Rescue the 495 megawatt (MW) Keephills 3 power generation project which customer service is fundamental to FortisAlberta’s future success whether it is managing outages and first-call resolutions or responding Society, Alberta Birds of Prey Centre and other initiatives such as we co-own with TransAlta Corporation. We also received approval to Company Data United Way, Junior Achievement, 4-H and CIBC’s Run for the Cure. build 243 MW of new power generation at our Clover Bar site, using quickly to a request for a new customer connection. The Company’s Ownership City of Edmonton, sole shareholder three high-efficiency natural gas turbines. The first Clover Bar unit with challenge has been, and continues to be, achieving performance improvements during a period of record capital investment, significant a capacity of 43.4 MW entered operation in the first quarter of 2008. Number 600,000 (regulated retail rate, Alberta) Company Data of Customers customer growth and increased regulatory requirements. Following many months of planning and a successful public consulta- Ownership FortisAlberta is a wholly-owned, indirect tion process, our Distribution and Transmission business began con- Number 2,800 FortisAlberta will spend approximately $286 million in capital in 2008 subsidiary of Fortis Inc., the largest investor- of Employees struction on its Downtown Edmonton Supply and Substation (DESS) to build additional load capacity mainly to meet customer growth owned distribution utility in Canada, serving project. The project includes a 10.5 kilometre underground power Revenues $3.7 billion (consolidated, 2007) requirements. The Company is also investing in other infrastructure to almost two million gas and electric customers. benefit customers such as automated metering technology. This new transmission line that will help meet Edmonton’s growing electricity Total Assets $6.6 billion (consolidated, 2007) Number 448,100 demand. system will eliminate estimated meter reads, reduce overall operating of Customers Energy Produced 14,224 GWh costs associated with manual meter reading and improve billing Number 999 Looking to the future, we also invested in design and early-stage (EPCOR and EPCOR Power L.P.-owned units) accuracy for customers. Other capital projects include maintaining and development for projects that have the potential to deliver dramatic of Employees Generation 3,400 MW (responsible for operating) upgrading lines, replacing vintage poles and information technology. reductions in greenhouse gas emissions from power generation. This Capacity Revenues $269,898,000 The Company’s strong reliability performance is a direct result of the includes our partnership with Natural Resources Canada and the Total Assets $1,500,244,000 Alberta Energy Research Institute on the Front End Engineering and Distribution 8 distribution substations, 284 distribution improved condition of its assets through targeted capital investment Network feeders and approximately 5,000 circuit km of Design of a near-zero emission power plant at our Genesee site. We and enhancements in preventative maintenance. While FortisAlberta Peak Demand 3,182 MWh primary distribution lines serving about continues to achieve high reliability performance, it also continues to for Power are also exploring the possibility of providing power and recycled 321,000 customers in the City of Edmonton water to the Carbon Development Partnership’s Dodds-Roundhill pro- seek improvement in the strength and integrity of its electric distribution Distribution 106,000 km (operate) ject, potentially Canada’s first commercial coal gasification facility. Selected EPCOR Power L.P., TSX:EP.UN (EPCOR Utilities network through the strategic replacement of existing equipment. Network Subsidiaries Inc. owns 30.6% interest) While we continue to pursue new technologies, we also caution that EPCOR Distribution & Transmission Inc. FortisAlberta’s safety performance generally exceeds the Canadian Total Energy 15,378 GWh the pace of implementation must be realistic. For these technologies EPCOR Power Development Corporation average for utilities of comparable size. In 2008, the Company will Sales to become economically achievable, we will need to overcome tech- EPCOR Energy Alberta Inc. improve safety performance through additional training for apprentices EPCOR Merchant and Capital L.P. nical barriers and adopt market designs that flow the costs of cleaner and new hires, refresher training for experienced staff, continued EPCOR Water Services Inc. electricity through to consumers. The costs should ultimately be borne investment in new tools and equipment and the development of new by each of us as citizens and consumers of power because we will work techniques. Through partnerships with the government and other each benefit from improved environmental performance. industry stakeholders, FortisAlberta will also continue its efforts to provide safety education and awareness to reduce the number of public contacts with electrical facilities. 22 23 John Walker Max Cananzi President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Meeting public policy requirements around climate change • Exceed customer expectations through efficient, reliable service, at Continuing to create value for shareholders, customers • Mergers and Acquisitions. and broader environmental issues, while delivering safe, the lowest reasonable cost. and the communities we serve in an increasingly • New Enterprise Resource Planning (ERP) Business System • Provide employees with a safe and healthy workplace that fosters Implementation. reliable electricity to our growing customer base at the complex regulatory environment. personal growth and rewards initiative, action and productivity. • Enhanced Asset Management Model. lowest reasonable cost. • Operate in an environmentally and socially responsible manner. • Smart Meter Integration. • Optimize shareholder return. Growth Through Sector Consolidation Strategic, Sustainable Growth Horizon Utilities’ focus in 2008 will be on growth through mergers and Company Data FortisBC’s 2008 priorities focus on safety performance, capital plan Company Data acquisitions and ensuring the appropriate structures exist for distrib- Ownership Horizon Holdings Inc. execution, environmental stewardship, customer satisfaction, and the Ownership FortisBC Inc. is a wholly owned subsidiary of ution utilities to participate fully in conservation and supply/demand Number 232,628 (Service territory – City of Hamilton attraction and retention of skilled and motivated employees. Fortis Pacific Holdings Inc. which is an indirect initiatives needed to address Ontario’s future electricity requirements. and City of St. Catharines) wholly owned subsidiary of Fortis Inc., of Customers Today, British Columbia is experiencing strong economic growth. At a Canadian public company. Horizon views the highly fragmented nature of the distribution sector Number 336 FortisBC we are supporting growth in the communities we serve and the resulting scale of distributors in Ontario as significant oppor- of Employees through ongoing maintenance and capital investment in the electric Number 154,000 tunities to create enhanced shareholder and customer value. Horizon of Customers Revenues $94.6 million system. The Company is executing a multi-year strategy that will build continues to be committed and supportive of utility mergers and acqui- additional capacity into the electric system to meet load growth while Number 532 sitions and intends to play a leadership role in the consolidation of Total Assets $418 million providing long term reliability improvements and minimizing operating of Employees our sector. Energy Delivered 5,547 GWh costs over time. In 2008, we will invest an additional $109.6 million Revenues $218,295,000 to execute capital projects. With regard to meeting Ontario’s conservation and supply/demand Peak Demand 1,051 MW Total Assets $913,305,000 requirements, Horizon will continue to be an industry leader. This includes for Power During this period of intense capital construction, safety performance our track record on the design and delivery of conservation programs Energy Delivered 3,125 GWh Distribution 3,541 km of line continues to be strong with employees demonstrating a solid commit- that add value to our customers and the timely connections with gen- Network ment to both personal and public safety. In the year ahead, the Energy Produced 1,498 GWh erators that are targeted to meet regional supply and demand issues. Total Energy $523 million Company will focus on sustaining safety achievements through Generation 223 MW Sales enhanced safety awareness and accident prevention programs. Capacity Improving customer service is another key priority in FortisBC’s strate- Peak Demand 683 MW gic plan. We continue to implement programs that enable us to cost- for Power effectively improve customer service through timely communication, Transmission and 6,900 km streamlined processes, and the introduction of new technology. Distribution Network Central to these and all other Company initiatives is the ongoing involve- Total Energy $211,400,000 ment, commitment and focus of our employees. Recognizing the impor- oup - Hamilton tance of a skilled and motivated workforce, we actively participate in Sales activities that support successful recruitment and retention, including employee-driven initiatives, apprenticeship and scholarship programs. In 2008 FortisBC will embark on two significant regulatory processes – a resource planning process and a full cost of service and rate design study. Both processes will take into account the challenges and opportunities presented by Government policy around climate change and broader environmental issues. t Palmese – Photodesign Gr Rober At FortisBC we are committed to minimizing the impact of our operations on the environment. We apply best practices that ensure appropriate environmental protection measures are in place for all FortisBC business activities, and are working with our communities and the government to help address global environmental issues. FortisBC President and CEO John Generation Conservation, an exciting, hands-on, Walker is actively involved as a member of British Columbia’s provincial 10-module, curriculum-based, energy conservation Climate Action Team established by Premier Gordon Campbell in 2007. course is being rolled out to 7,500 Grade 5 The team’s mandate is to offer advice on feasible actions to achieve emis- students in 200 schools in Hamilton sion reduction targets set for 2012, 2016 and 2020. FortisBC powerline technicians working at Big White Mountain. and St. Catharines. 24 25 Laura Formusa Rosemarie T. Leclair President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue To meet the growing electricity needs of Ontario’s • Continue to operate the existing transmission and distribution Continue to enhance customer value through service communities, Hydro One is engaged in its largest system in a manner that is commercial and transparent. excellence and innovation, providing safe, reliable and •Work with our industry partners to ensure that electricity is infrastructure renewal program in more than two decades. delivered safely, reliably and affordably to our customers. responsive services at competitive rates. • Maintain operational excellence and remain absolutely and resolutely committed to safety and to a cleaner environment. Partners in Powerful Communities • Listen to our customers and be flexible, creative and transparent A Leading, Trusted, Community Company In 2008, our focus will remain on our core business of transmitting at every stage of infrastructure renewal projects. To be recognized as a leading, trusted, community company – that is electricity safely and reliably to Ontario homes and businesses. As • Continue to implement aggressive workforce renewal programs the vision the Hydro Ottawa Group of Companies has set for itself: to recruit an entirely new generation of energy professionals. stewards of Ontario’s massive and complex electricity transmission Leading the sector in efficient, reliable service and the creation of • Continue to develop a Smart Network to modernize our distribution system, Hydro One is continuing to make significant progress on a shareholder value; trusted by our customers, our employees, our share- An important investment: Hydro Ottawa’s in-house Apprenticeship Program will operations. ensure future reliability with a qualified and highly trained workforce. number of critical system investment initiatives. • Renew our work on a Ten-Year Transmission Plan to support the holder, our community and our industry colleagues; and always acting as a responsible and engaged corporate citizen in our community, These initiatives include improving the use of existing infrastructure, Ontario Power Authority’s Integrated Power System Plan. reflecting our dual mandate as both a financial investment and a com- relieving internal congestion points and delivering new clean gener- • Help our customers conserve energy – a precious resource, thereby 2008 Company Objectives supporting the Province’s efforts to create a conservation culture munity asset delivering essential services. ation, including renewables, into our system. in Ontario. • Enhance customer value by providing safe, reliable and responsive In 2007, we made significant progress toward this vision by maintain- services at competitive rates to the customers and communities The largest aspect of our system augmentation is improving transmis- ing excellent service reliability and keeping our costs low, and by con- that we serve; sion capabilities in southern Ontario. A new 180-km 500-kV transmis- tinuing to invest in our assets and our people, developing and retaining • Achieve solid financial and operating results by cultivating a sion line, scheduled to be in service by the end of 2011, will deliver Company Data the skills we need for the future. culture of excellence and continuous improvement; approximately 3,000 MW of emission-free power to Ontarians. Ownership Owned by the Province of Ontario • Continue to demonstrate leadership in conservation and Smart We also continued to enhance our engagement with the communities Public awareness and understanding of the need for projects is at the Number 1.3 million Meter implementation; and where we do business. We were recognized for our efforts in energy • Contribute to the well being of our community by acting as a heart of their acceptance. Working well with our stakeholders is the of Customers conservation with a PeakBuster Award from the Ontario Clean Air responsible and involved corporate citizen. only way to ensure we can complete the enormous amount of work Number 4,600 regular employees Alliance, received two awards for our work promoting safety in our to be done. At every opportunity, we meet people in the communities of Employees community, and finished second among medium-sized utilities across where they live, understand their issues and work with them trans- Revenues $4,655 million Canada in the J.D. Power & Associates Customer Satisfaction Study. Company Data parently to ensure Ontarians have the electricity they need, when Our core electricity distribution company, Hydro Ottawa Limited, they need it. Energy Delivered 152.2 TWh (in 2007) Ownership Hydro Ottawa Holding Inc. is wholly owned received ISO certification of its management systems for both Health by the City of Ottawa Total Assets $12,790 million and Safety and Environment. And with Smart Meters installed in more Number 282,000 electricity distribution Peak Demand 25,737 MW than half of our customers homes, we are well on our way to meet- of Customers for Power ing the provincial government’s mandate to deploy Smart Meters across our service territory. Number 570 Distribution 123,000 circuit kilometres of Employees Network Each of these positive results is a testament to the commitment to Revenues $680.6 million Subsidiaries Hydro One Networks, Hydro One Telecom, excellence and improvement that employees across the group of com- Hydro One Remote Communities panies bring to their work. Total Assets $684.4 million To ensure that Hydro Ottawa continues to prosper in the years ahead, Energy Delivered 7,466 GWh we will continue to focus on the things that have brought us success Energy Produced 120.15 GWh – efficient and effective operations, asset management and reinvest- Generation 21 MW ment, strong financial performance, customer value, and responsible Capacity corporate citizenship. We will also continue to invest in our employees, and to prepare for the challenges of the future by expanding our Peak Demand 1,205,186 kW for Power apprenticeship programs. Distribution 3,450 km (overhead); and 2,000 km We look forward to continued success in 2008 as we continue to Network (underground) pursue our vision. Total Energy 7,466 GWh Sales

Hydro One’s high-voltage line maintainers work together to Subsidiaries Hydro Ottawa Limited, Energy Ottawa Inc., ensure Ontario has a safe, reliable supply of electricity. Telecom Ottawa Limited.

26 27 Bob Brennan, FCA Fred J. O’Brien President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue Company Data A top priority for the Corporation is improving the safety (From Manitoba Hydro’s Corporate Strategic Plan) Delivering safe and reliable electricity to customers Ownership Wholly owned subsidiary of Fortis Inc. record of its employees. Major new initiatives were 1. Improve safety in the work environment. at the lowest possible cost. Number 71,900 undertaken during the year and progress is being made 2. Provide customers with exceptional value. of Customers towards achieving an even safer workplace. 3. Be a leader in strengthening working relationships with Number 179 Aboriginal peoples. Delivering Value Here at Home of Employees Manitoba Hydro made significant progress on several major projects 4. Improve corporate financial strength. Since 1918 Maritime Electric has provided service on Prince Edward Revenues $128,809,000 during the year while continuing to focus on its mission of providing 5. Maximize export power net revenues. Island and is a fully integrated Company that provides for the gener- Total Assets $361,255,000 Manitobans with a long-term supply of energy in a safe, cost-effective, 6. Attract, develop and retain a highly motivated workforce that ation, transmission and distribution of electricity to 71,900 customers. Energy Delivered 1,034.1 GWh reliable and environmentally appropriate manner. reflects the demographics of Manitoba. The Company and its 179 employees are committed to providing safe, 7. Be proactive in protecting the environment and the leading reliable electricity throughout its service territory. Energy Produced 0.3 GWh A major accomplishment was getting work underway on an access utility in promoting sustainable energy supply and service. road to the site of the future Wuskwatim Generating Station. The pro- The substantial increases in the cost of fossil fuels and the refurbish- Generation 150 MW 8. Be an outstanding corporate citizen. ject has an in-service date of 2012 and is being developed by the ment of the Point Lepreau Generating Station, for which the Company Capacity 9. Proactively support agencies responsible for business Wuskwatim Power Limited Partnership (WPLP), a unique business rela- has an entitlement agreement, are among the factors that continue Peak Demand 218 MW tionship between Manitoba Hydro and the Nisichawayasihk Cree development in Manitoba. to put significant upward pressure on energy supply costs. for Power Nation (NCN). This is the first time Manitoba Hydro has entered into 10.Be a national leader in implementing cost-effective energy The Company recently secured 30 MW of transmission service on the Transmission 4,601 km a formal partnership with a First Nations community, and it is believed conservation and alternative energy programs. new 345 kV International Power Line between New Brunswick and and Distribution to be precedent-setting for Canada. Maine which will increase Maritime Electric’s energy supply options. Network Our new head-office is rapidly taking shape as it becomes the latest Total Energy 1,034.1 GWh Company Data Wind energy continues to play an important role in the Company’s addition to Winnipeg’s downtown skyline. In November we reached Sales Ownership Manitoba Hydro is a Crown Corporation owned long-term energy supply planning process. The recent completion of the top floor as concrete was poured for the 22nd storey. The 695,000 by the people of Manitoba. The governance a 138 kV transmission line to interconnect a new Government-owned square-foot building, which will be home to more than 2000 Manitoba of the Corporation is administered through wind farm has enabled the Company to meet the requirement of having Hydro employees, is a landmark achievement in energy efficiency for the Manitoba Hydro-Electric Board, whose renewable sources comprise 15% of its electricity requirements large office towers worldwide. Using a carefully selected building site, 11 members are appointed by the Lieutenant- 2 years in advance of the legislated deadline. The Company also a range of state-of-the-art design features and innovative building sys- Governor in Council. recently completed the interconnection of a 20 MW merchant wind tems, Manitoba Hydro’s new head office will use 60 per cent less Number 516,861 (electricity) farm which has plans to expand to 100 MW. energy when compared to a new office tower of conventional design. of Customers 259,569 (gas) The promotion of safety to customers and employees continues to be This signature building affirms Manitoba Hydro’s commitment to Number 5,567 energy efficiency and sustainable development as we look to reduce of Employees an important Corporate focus. The Company’s long-standing Grade 6 the impact of our operations on the natural environment. School Safety Program and public safety presentations conducted by Revenues $2,140,000,000 Company retirees were both expanded this year. The opportunity for future export sales remained very favourable when Total Assets $10,964,000,000 our utility signed a Term Sheet with Xcel Energy’s Northern States Power The Company remains committed to a targeted capital investment company of Minnesota in late 2007 to provide over $2.2 billion in Energy Delivered Manitoba: 20,555 MWh, Exports: 8,217 MWh, program in energy delivery infrastructure to further improve system hydropower over 10 years. The sale, which would begin in 2015, must Gas deliveries: 2,056,000,000 cubic metres reliability. still be approved by the Minnesota Public Utilities Commission and Generation 5,461 MW Canada’s National Energy Board but the prospects are indeed promising. Capacity 2008 Company Objectives Manitoba Hydro continues to enjoy success in increasing employment Peak Demand 4,173 MW of Aboriginals as part of Hydro’s workforce. The Corporation has put for Power Maritime Electric is committed to the following: • Management of operating costs to minimize costs to customers. in place several programs to assist in further elevating Aboriginal rep- Subsidiaries Manitoba Hydro International, Manitoba HVDC resentation in the workforce and to provide a broader range of career Research Centre, Manitoba Hydro Utility Services • Improving customer service through operational excellence and improved system reliability. opportunities for all Aboriginal people. • Exploration of viable renewable energy sources. During the year, the Corporation’s employees once again supported a • Continued emphasis on safety and environmental practices number of Manitoba communities through involvement in events both and performance. large and small. I’m very proud of our employees’ volunteer efforts • Assisting all customers in using electricity efficiently. and would also like to acknowledge their efforts in continuing to meet Power Line Technician, Brackley, PEI. the energy needs of Manitobans with skill and dedication. I am justifiably proud of all of them. 28 29 David D. Hay Ed Martin President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Refurbishing the Point Lepreau Generating Station • Refurbishing the Point Lepreau Generating Station. Safety is our number one priority. • Be a world-class safety leader. • Mitigating fuel costs. • Be an environmental leader. • Minimizing our environmental footprint. • Strengthen our financial and governance structure. Contributing to a More Vibrant New Brunswick Pursuing New Opportunities at Newfoundland • Grow a diversified and viable energy business. and Labrador Hydro • Through operational excellence provide exceptional value to all The NB Power Group is 2,500 New Brunswickers committed to pro- Company Data consumers of our energy. viding safe, reliable and efficient power for the benefit of all New •To deliver First Commercial Power from the Lower Churchill Project Ownership Province of New Brunswick In 2007, the Government of Newfoundland and Labrador created a Brunswickers. We operate one of North America’s most diverse net- new provincial energy corporation charged with pursuing business to customers in 2015. works of generating stations consisting of nuclear, hydro, coal, oil and Number 373,207 opportunities in the energy sector. The new corporation is the hold- •To ensure a highly skilled and motivated team of employees who diesel-powered stations. of Customers ing company for Newfoundland and Labrador Hydro (Hydro), the fourth are strongly committed to our success and future direction. •To be a valued corporate citizen and a strong member of the In 2006/07, NB Power recorded net earnings of $21 million. Our Number 2,588 largest power utility in Canada with over 7,200 MW of operating of Employees communities in which we operate. results in 2006/07 were partially due to strong nuclear and thermal capacity and employing over 1,200 Newfoundlanders and generating station performance and better-than-average hydro flows. Total Assets $4,151 million Labradorians. In early 2007, we made significant strides in the renewable energy Energy Delivered 17,507 millions of KWh Hydro is pursuing broader-based energy opportunities and expanding Company Data (for year end 2006) its operations into: oil and gas; wind generation; new hydroelectric portfolio with the signing of agreements to acquire up to 96 MW of Energy Produced 14,660 millions of KWh (including purchases Ownership Newfoundland and Labrador Hydro is a Crown wind energy in 2008. In May of 2007, we issued a request for pro- of 2,529) developments; alternative energies; and, research and development. corporation owned by the Province of posals for an additional 300 MW of wind energy by 2010. However, our core business – generating and transmitting energy – Newfoundland and Labrador Generation 3,959 MW will continue to be the cornerstone of the company’s and province’s Throughout 2007, our employees continued to focus on strong oper- Capacity Number 35,381 (industrial, utility, retail and residential) future. of Customers ational performance and our operations have never been better. For Peak Demand 3,160 MW the second year in a row our Belledune Generating Station was rated for Power Hydro is committed to delivering safe, reliable, least-cost power to Number Hydro has a dedicated workforce of 1,147 full- number one in North America, winning the Electric Utility Cost Group’s residents, businesses and industrial customers in Newfoundland and of Employees time equivalents. Distribution 20,030 km Labrador. We take great pride in our focus on safety, environment, best performer award. Statistics Canada reporting indicated that our Network Revenues $548 million thermal plants, all of our fossil fuel plants, were the most efficient conservation and ongoing investment in the province. Total Assets $2672.8 million fleet in Canada. The reliability performance of our distribution system, Total Energy 17,507 millions of KWh Sales Through our strong leadership and employee commitment, we are well which brings the wires right to homes in New Brunswick, was the positioned to achieve our corporate goals and realize the full poten- Energy Delivered 39,715 GWh New Brunswick Power Holding Corporation best it has been in 14 years. Subsidiaries tial of our province’s energy resources. Energy Produced 40,236 GWh has four subsidiaries: New Brunswick Power Two other significant accomplishments that topped off our year were Generation Corporation* (Genco), New Brunswick Generation 7,288 MW the completion of the International Power Line and being recognized Power Nuclear Corporation (Nuclearco), Capacity as one of Canada’s Top 100 Employers – an honour that recognizes New Brunswick Power Transmission Corporation Peak Demand 6,897 MW NB Power’s culture of performance and accountability. (Transco), New Brunswick Power Distribution and Customer Service Corporation (Disco) for Power Looking forward, our primary focus in 2008 will be refurbishing the * including New Brunswick Power Coleson Cove Corporation Transmission Hydro maintains over 4,700 km of transmission Point Lepreau Generating Station. We will operate our conventional (Colesonco) and NB Coal Limited (NB Coal) and Distribution lines and 3,300 km of distribution lines. generating and transmission systems reliably during the refurbishment Network outage to ensure a continued reliable supply of electricity for New Total Energy $439.3 million Brunswickers. Sales The cost of fuel and purchased power is our single biggest expense, Subsidiaries The Hydro Group of Companies is comprised of: representing one half our total operating expenses. Throughout 2008, Newfoundland and Labrador Hydro, Churchill we will continue to mitigate our fuel costs to reduce upward pres- Falls (Labrador) Corporation Limited (CF(L)Co), sures on rates. Lower Churchill Development Corporation Limited (LCDC), Gull Island Power Company We will also further our environmental commitment through the proac- Limited (GIPCo) and Twin Falls Power tive pursuit of opportunities to minimize our environmental footprint. Corporation Limited (TwinCo).

Young customer plans his future. Transformer Gallery, Churchill Falls Generating Station. 30 31 Earl Ludlow Leon Courneya President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Safety is first and foremost our most important concern, • Improve safety performance by ensuring safety remains our Staffing/succession planning in general and the attraction • Begin permitting process to expansion of Taltson Hydro site to followed by maintaining high customer satisfaction and number one priority. and retention of line persons and other journey persons. serve the diamond mines. • Invest in our system to provide safe, reliable, least-cost electricity • Operate with no lost time accidents. low operating costs for the benefit of our customers. • Maximize service delivery while minimizing long-term costs. • Complete General Rate Application. • Increase energy efficiency programs and services to assist • Connect 5 diesel plants to SCADA. In 2008 the NWT Power Corporation will continue expanding its use Focusing on our Future customers. • Obtain franchise to serve new mine. • Maintain the necessary skills to continue meeting customers’ needs of automation and technology to improve efficiency and service to customers. Plans for the year include increased centralized control of Safety is a core value shared by all of our employees. In 2008 we will • Enhance our commitment to the communities we serve. diesel plants 24/7 and increased use of automated meters. remain committed to the elimination of workplace and public safety incidents. Our key safety initiative for 2008 includes the integration Growth opportunities will be pursued with a new mine under devel- of the Occupational Health and Safety Assessment Series 18001 Company Data opment as well as the development, in partnership with the Akaitcho Health and Safety Management System. Ownership Fortis Inc. Nation and the Métis Nation of a new hydro site and transmission line to serve the diamond mines operating north east of Yellowknife. Energy efficiency will evolve rapidly in Newfoundland and Labrador Number 232,262 throughout 2008 as a result of a new provincial Energy Conservation of Customers and Efficiency Partnership. We look forward to playing an active role Number 555 in this partnership, and will continue to provide our customers with of Employees Company Data Ownership Government of the Northwest Territories practical, actionable energy efficiency information. We will also com- Revenues $490,232,000 plete a detailed review of our customer service operations with a view Number 8,423 to maximizing service delivery while minimizing long-term costs for Total Assets $985,930,000 of Customers the benefit of our customers. Energy Produced 379.5 GWh Number 165 We are focused on the right priorities and look forward to continued Generation 139.4 MW of Employees success in 2008. Capacity Revenues $77 million Peak Demand 1,142 MW Energy Delivered 312 GWH for Power Energy Produced 130 MW on 27 Isolated Systems (240 kW to Total Energy 5,093 GWh 65 MW) Sales Generation 115 MW (Isolated Systems) Transmission 10,707 km Capacity and Distribution Network Peak Demand 68 MW (Non-coincident) for Power Transmission 8000 Poles and Distribution Network Pristine Beauty of the Taltson South Valley Spillway. Total Energy 312 GWH Sales Subsidiaries NWT Energy Corporation Ltd., NWT Energy Corporation (03) Ltd., Sahdae Energy Ltd., 5383 NWT Ltd.

Our employees are focused on the safety of themselves and others, every day.

32 33 Ralph Tedesco Jim Hankinson President and CEO President and CEO

Most Important Issue Nova Scotia Power is taking steps to reduce emissions from its power Most Important Issue 2008 Company Objectives plants. Low NOx burners were installed in 2007 on two units at our For 2008, key priorities are continued reliability largest generating station, Lingan. By the end of 2008, low NOx burn- Continually improving performance and building for the future. • Continued performance improvement. improvements, introduction and effective execution ers will be in place on all four units at Lingan as well as the Point • Contributing to Ontario’s electricity supply through new generation initiatives. of conservation and energy efficiency initiatives, and Tupper and Trenton generation stations. New equipment at Trenton It’s All About Performance • Operating our generating assets in a safe and environmentally continued progress on the addition of renewable energy will enhance fuel flexibility, enabling the use of lower sulphur fuels, responsible manner. to the Nova Scotia Power grid. while also reducing particulate emissions. A capital project is under In 2007, OPG continued to deliver on its mandate – generating 70% • Operating on a financially sustainable basis. way to install a new waste heat recovery unit at our Tufts Cove of the electricity consumed in Ontario while operating in a safe, open • Operating according to the highest standards of corporate Generating Station. and environmentally responsible manner. Our hydroelectric and fossil- governance with an ongoing commitment to being an open, Cleaner, Greener Energy transparent and accountable company. A financially strong, healthy utility is best positioned to innovate and fuelled generating stations continued to achieve excellent availabil- In 2008, Nova Scotia Power will continue to implement our strategy deliver on customer expectations. The Nova Scotia Utility and Review ity levels while our Darlington nuclear station was recognized as one of adding cleaner sources of energy, resulting in a more diverse energy Board has agreed that a Fuel Adjustment Mechanism is in the inter- of the best performing nuclear stations in North America. In addition, portfolio and that is consistent with customers' expectations of more est of our customers. In 2008, Nova Scotia Power will work with stake- OPG was named one of the top 100 employers in Canada, and also Company Data renewable energy and lower emissions. Nova Scotia Power has holders and our regulator on details for a Fuel Adjustment Mechanism received the CEA President’s Award of Excellence for top quartile Ownership Province of Ontario 60 MW of installed wind capacity. Upcoming contracts will more than which has been approved for implementation in January 2009. employee safety performance in 2005 and 2006. Number 11,658 quadruple that amount by 2010. This represents a half billion dollar Throughout 2008, OPG will operate with a focus on continually improv- of Employees investment, the largest investment in new power generation in Nova 2008 Company Objectives ing performance and contributing to Ontario’s electricity supply through Revenues $5,887 million Scotia in more than a decade. We have also embarked, with other new generation projects. partners, on an exciting demonstration to develop tidal power in the • Work with stakeholders and our regulator to ensure Total Assets $24,839 million Bay of Fundy. Nova Scotia Power and OpenHydro of Ireland are design- implementation of our Greener, Cleaner Strategy. OPG is currently involved with several major development projects. Generation 22,158 MW ing and building a 1 MW in-stream tidal turbine which will be tested • Increase renewable energy sources that provide electricity for These projects include the 550 megawatt Portlands Energy Centre in Capacity Nova Scotian homes, businesses and industries. downtown Toronto, the first phase of which is scheduled to come into in the Minas Passage in the Bay of Fundy. The Bay has been identi- 105.1 TWh • Explore new energy options including the development of tidal service this summer; the Niagara Tunnel to increase energy output at Energy Produced fied as the best site in North America for tidal development by the in 2007 Electric Power Research Institute. Our goal is to fully explore techni- power and the importation of hydro. our Beck hydroelectric stations; and the 12.5 megawatt Lac Seul cal and environmental implications of commercial development of this • Continue to lower emissions from our fossil-fired generating hydroelectric generating station in Northwest Ontario. OPG is also Subsidiaries Numerous stations. renewable energy source and turn the dream of making electric energy exploring the potential development of a gas-fuelled generating sta- • Contribute to the dialogue with governments on strategies to tion at the site of the former Lakeview coal-fired generating station. from Bay of Fundy into reality. reduce greenhouse gases. A number of additional hydroelectric projects in Northern Ontario are • Enhance our strong safety culture and remain one of the safest Working with stakeholders and our regulator, Nova Scotia Power is also being developed or studied. participating in the design of important new conservation and energy power companies in Canada. efficiency programs. Managing demand also contributes to our strategy • Invest in our people. We continue with the regulatory approvals process for building new for managing emissions from fossil fuel generation. The company is • Ensure financial stability. nuclear units at our Darlington site, including a federal environmen- also proceeding in 2008 with plans for development of LEED-certified, tal assessment that includes extensive consultation with the public environmentally-responsible, office space. and local stakeholders. We are also proceeding with developing a Company Data business case for the potential refurbishment of the Pickering B and We are building on our strong operations. In 2007, Nova Scotia Power Ownership 100% owned by Emera Inc., a publicly-traded Darlington nuclear generating stations. Refurbishment will take place earned the President’s Award of Excellence for Employee Safety company that is widely held only if there is a solid business case to justify it. (Bronze Award) from the CEA. We were also honoured by the Industrial Number 470,000 In 2008 and beyond, OPG will continue to operate with an emphasis Accident Prevention Association with the Canadian Innovation Award of Customers for the Promotion of Healthy & Safety Practices in the Workplace. As on the highest standards of corporate governance; public and work- well, three Nova Scotia Power fossil-fired generating units and one Number 1,600 place safety; corporate citizenship; and environmental and social gas-fired unit were recognized for operation excellence, identified by of Employees responsibility. We will also continue to operate in an open, transpar- Ontario Power Generation President and CEO Jim Hankinson, Senior Vice-President CEA as being among the most efficient in Canada. Revenues $ 1.1 billion ent and accountable manner. Darlington Nuclear Wayne Robbins and OPG’s Chief Nuclear Officer Tom Mitchell receive prestigious Performance Improvement Award from nuclear industry peers – the Total Assets $3.1 billion first time a Canadian nuclear operator has received the award.

Generation 2,320 MW Capacity

34 35 Eric J. Marr, P.Eng. Henry Hildebrandt President and CEO Manager

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Rate stability. • Completion of construction and transfer of operations to our new We are concentrating our focus in 2008 on: Safety, Reliability, • Apprenticeship Conversion Process. facility. This building replaces the utility’s current structure built in and Fiscal Responsibility. Saskatoon Light & Power will • Implementation of the Safety First Software in conjunction with our the 1960’s and mid 1970’s. Safety Performance Management System. provide safe, reliable and cost-effective electricity in an Helping our Customers with Rising Prices • Completion of an AMI feasibility study. • Secondary Network System Upgrade – High Voltage Primary environmentally responsible way. Interrupters and Communication System. The year 2007 saw the beginning of construction on Saint John Energy’s new Operations Facility. This facility, which will replace our Company Data Saskatoon Light & Power’s Vision administrative offices and several of our existing storage locations, Number 35,000 Company Data will be completed in 2008. This represents an exciting opportunity to of Customers It is our goal that Saskatoon Light & Power be a key player in Ownership City of Saskatoon optimize our operational efficiency and effectiveness. Also pending is Number 101 full-time, 5 full-time equivalent Saskatchewan’s changing energy future. We work towards being rec- 58,000 a decision on the full scale implementation of Automated Metering Number of Employees ognized as an efficient, reliable and responsive energy service provider of Customers Infrastructure which will have a significant operational and financial by the citizens and customers in the City of Saskatoon. Saskatoon impact on the company as we move forward. Changes to the electric- Revenues $97.3 million Number 121 Light & Power will sustain a high level of customer satisfaction by of Employees ity market round out the significant issues facing the company over Total Assets $47.3 million (net) meeting the customers’ needs and expectations. the next year. Management will continue to monitor current and Revenues $110.6 million (2006) Energy Delivered 1,017.6 GWh expected market conditions to ensure a balance between rate expo- In order to achieve our goals, Saskatoon Light & Power is committed to: Peak Demand 227,867 MVA Transmission 12 substations, 410 km overhead lines,105 km sure and long term infrastructure requirements needed to maintain • Quality Service for Power and Distribution underground lines the utility’s reliability and reputation. • Fiscal Responsibility Network Distribution 519 km O/H and 243 km UG During 2007, I was pleased to see the utility continue its “no lost • High Performance Network Peak Demand 270.1 MW time” safety record which has lead to four consecutive “CEA • Respect for Others for Power • Safe and Supportive Work Environment Total Energy 1,115 GWh (2006) President's Gold Medal Award of Excellence for Employee Safety”. Sales This is a significant achievement for which the management and staff Total Energy $94.1 million • Co-operative Spirit of Saint John Energy are very proud. We will continue our efforts to Sales • Continuous Employee Development extend this impressive record over the coming year. The Utility will have greater stakeholder value by adopting state-of- Hard on the heels of our overwhelmingly successful compact fluores- the-art technologies, such as a fibre optics network and automated dis- cent lighting program of 2006, this past year saw the utility conduct tribution, improving the quality and reliability of our distribution system, an LED Holiday Lighting campaign. The rising cost of energy will as well as providing value-added energy services to our community. require the development of additional such programs that help our customers with rising energy prices. Over the coming year and beyond, the Commission will develop new incentives, initiatives and programs to promote energy conservation. Saint John Energy looks forward to bringing value and reliability to our ratepayers in this era of increasing energy costs with the firm commitment of continuing to provide our customers with safe, reliable electricity at the lowest rates possible.

City of Saskatoon – Central Business District – SL&P Secondary Network System. 36 37 Patricia Youzwa David S. O’Brien President and CEO President and CEO

Most Important Issue 2008 Company Objectives Most Important Issue 2008 Company Objectives Continuing to strengthen our company through intensive SaskPower's ongoing mission is provide safe, reliable and sustain- Ensuring that our customers receive safe, efficient and • Continue our focus on safety and environmental responsibility infrastructure and workforce renewal, as well as by able power to customers while striving to achieve our vision of reliable service in a manner that is consistent with our • Continue to invest in the renewal of our distribution system. • Continue to enhance customer service across all business units. developing and executing a range of innovative initiatives powering Saskatchewan to a bright future. Our present areas of commitment to corporate social responsibility. To that end, • Maintain Top 100 Employer status, with engaged and empowered designed to position SaskPower for present and future success. focus include: we are making significant investments in our distribution • Integrating infrastructure and operational elements of new employees who continue to be proud to work for Toronto Hydro. supply decision. system and infrastructure, and supporting this with proactive • Provide a consistent and fair regulated rate of return to shareholder. community relations and Conservation and Demand • Continue to participate in the provincial energy strategy, working in The Power of Transformation • Researching supply options and alternatives for next major decision expected in 2009. Management programs. the best interest of our customers and our shareholder. In business, evolution is a necessary and natural process. At • Improving customer, operating, business and safety process • Continue our emphasis on Conservation and Demand Management. SaskPower, our company's consistent ability to adapt over our nearly efficiencies. • Continue the mass installation of smart meters and the preparation Toronto Hydro continues to lead ambitious Conservation and Demand of billing systems for Time-of-Use rates. 80-year history has secured our role in assisting growth and ensuring • Further developing comprehensive workforce planning, training Management Programs (CDM) programs for our residential and business quality-of-life in Saskatchewan. Today, in our province's period of and recruitment programs. • Enhancing partner and community relationships. customers. Since launching our CDM portfolio in 2005, we’ve saved heightened economic development, an ongoing commitment to revi- approximately 350 megawatts. We’ve been recognized nationally and Company Data talization is more important than ever. internationally for the innovative programs that we develop, and the Ownership Toronto Hydro Corporation operates three Following a year marking record peak load, record customer connects Company Data communications campaigns that support them. wholly-owned affiliates in the electricity and record new service applications, we now have the first of a series (as at December 31, 2006, unless otherwise noted) distribution; energy services and streetlighting; In 2007, we launched an innovative CDM program that was overwhelm- and data communications and Internet service of major supply decisions in-hand. As a result, SaskPower is presently Crown Investments Corporation of Saskatchewan Ownership ingly successful. The first-in-Canada Summer Challenge for Business businesses. The City of Toronto is Toronto Hydro putting in place the initial phase of up to 400 MW of simple cycle Number 445,569 challenged business customers to reduce electricity consumption Corporation’s sole shareholder. natural gas turbines. In addition to this highly flexible option, waste- of Customers between July and August by 10 per cent (when compared to 2006) and heat recovery, wind generation, net metering, conservation and demand Number 679,913 achieved a demand reduction of approximately 83 Megawatts. side management will also play a part in our short-term supply strategy. Number 2,458 of Customers of Employees We strongly support the direction the province is taking to reduce peak Toronto Hydro Corporation: 33, Toronto Hydro With our next major supply decision expected in 2009, intensive Number Revenues $1.353 billion electricity demand in Ontario and to date we’ve installed approxi- of Employees Telecom Inc.: 79, Toronto Hydro Energy Services research and development continues on a range of options, including mately 416,000 smart meters. We’ve embarked on a significant capital Inc.: 66, Toronto Hydro-Electric System Limited: clean coal. First, we and our partners advanced this exciting technol- Total Assets $4.4 billion investment program to enhance our system’s reliability and efficiency. 1,543. Total: 1,720 ogy by becoming the first utility to complete a workable design for Energy Delivered 17,880 GWh We’ve also installed advanced outage-response and customer infor- $2,389,178 ( ) the world's first large scale near-zero emissions pulverized coal plant. Revenues in 2007 ‘000 mation systems to further improve our service. Now, with federal and provincial government support, we are devel- Energy Produced 19,714 GWh Total Assets $2,672,525 (‘000) oping one of the first and largest integrated clean coal/carbon capture Generation 3,668 MW Our affiliates continue to make significant gains. Toronto Hydro Energy Peak Demand 4,788 megawatts in June 2007 demonstration projects in the world at Boundary Dam Power Station. Capacity Services Inc. is expanding its service offerings in the Greater Toronto This represents 18 per cent of the Provincial peak Area and has been selected by the City of Toronto to deliver City Hall’s These activities illustrate the type of dynamic thinking and action that Peak Demand 2,969 MW (February 2007) new energy project. It’s also working with Toronto Police Services to Transmission 9,100 km Overhead wires, 7,600 km will help our company successfully transform how we deliver services for Power and Distribution Underground wires, 16,200 Underground vaults, install close-circuit security cameras in Toronto’s downtown core, con- to customers. In addition to extensive work on supply, we remain Transmission 155,055 km Network 10,071 Cable chambers tributing to safety and security throughout the city. Toronto Hydro focused on improving internal processes and resources to meet present and Distribution Telecom Inc. continues to challenge the marketplace by introducing Subsidiary Toronto Hydro-Electric System Limited is the and future realities. Initiatives such as our Service Delivery Renewal Network superior grade data services. Its WiFi network was ranked “best in Companies regulated wires affiliate. The utility serves more Program, Business Continuity Planning Project, Succession Planning than 679,000 customers in the city of Toronto. Subsidiaries SaskPower International, NorthPoint Energy performance” when compared to 41 other networks in an indepen- Program and Internal Control Project are taking us through intensive Solutions and SaskPower Shand Greenhouse Toronto Hydro Telecom Inc. is a data com- dent study (conducted by Novarum) and it opened a new state-of-the-art research, analysis and response designed to prepare SaskPower as we munications provider offering customers a suite data centre providing customers with a secure hosting environment enter a new era of performance. of managed network services from connectivity, for mission critical data and operations. including Private Line and Ethernet Metro LAN, to value added services like Collocation, Security and We are proud to be named one of Canada’s Top 100 Employers (by Storage. The company also offers its One Zone MacLean’s magazine) for the third consecutive year; one of the Top WiFi subscription services. 50 Employers in the Greater Toronto Area and one of the Top 10 Family- Toronto Hydro Energy Services Inc. is a Friendly Employers in Canada. These awards typify our commitment leading energy services company in the GTA. Its to workplace health and safety, customer service, environmental core business services include the ownership and responsibility, CDM, operational excellence, sound financial manage- operation of over 160,000 street light assets in ment, community involvement and employee relations. Toronto, developing clean and green generation Aside from capital costs associated with new generation, projects, and providing business customers with it's estimated that in the next five years SaskPower will turn-key CDM. spend over $2 billion on infrastructure renewal. 38 39 Alex Pourbaix Steve Snyder President, Energy President and CEO TransCanada Corporation

Most Important Issue Company Data (as at Dec. 31, 2007) Most Important Priorities 2008 Energy Objectives Sustainable earnings and capacity growth while achieving Ownership Public company, shares widely held Continued growth through acquisitions and execution • Continued growth through acquisitions, execution and delivery on power projects in various stages of development or construction. aggressive environmental standards. Number Approximately 190- wholesale, large and delivery of power projects under development of Customers commercial and customer counterparties. • Focus on markets where we have significant competitive or construction. advantages. Number Approximately 2,202* • Pursue long-term power purchase arrangements with stable, It’s Obvious… the World is Changing. of Employees With more than 50 years of experience, TransCanada is a leader in predictable earnings. • Pursue low-cost, base-load generation with robust earnings and We’re Ready… Revenues $2.7 billion the responsible development and reliable operation of North American cash flow. energy infrastructure. As one of the western North America’s leading power generation com- Total Assets $7.1 billion panies, TransAlta is uniquely positioned to take on the challenges of Energy Produced 50,395 GWh – 87.2 per cent availability* TransCanada’s total power production can meet the needs of about our changing times. 7.7 million average households. The Energy division’s Power business Company Data Generation 10,824 MW of which TransAlta owns/operates is one of the fastest growing and most profitable in Canada and is Ownership TransCanada Corporation •We have a highly diversified portfolio of generation assets – primar- Capacity 8,877* well-positioned to serve growing power demand both in the short and ily located in western North America – with a variety of fuel types Number Mix of customers ranging from long and short- Subsidiaries TransAlta Corporation has three subsidiary long-term. Our diversified portfolio encompasses 7,700 MW of nuclear, including renewables. Our fuel diversity provides strong ongoing of Customers term wholesale energy purchasers, commercial companies – TransAlta Utilities Corporation, natural gas, coal, hydro and wind generation. potential – hydro, wind, geothermal, natural gas and coal. TransAlta Energy Corporation and TransAlta retail, and industrial customers. Cogeneration Ltd. TransAlta Energy Corporation We have expanded our reach in the Energy arena tenfold since 1999 Number 3,600 (TransCanada total) •We maintain a low-to moderate-risk business model, driven by our includes international operations in the United and nearly half of our net earnings are driven by our Energy division. of Employees investment grade balance sheet and long-term contracts. States, Mexico** and Australia. TransAlta Our success is a direct result of our very broad and deep understand- Energy Corporation has a 50 percent partnership Energy Revenues Energy segment revenues: $4,116 million in • Our asset base can be continuously renewed for the long-term sus- interest in TransAlta Cogeneration L.P. TransAlta ing of our core markets. 2007, compared to $3,530 million in 2006. tainability of the Company through efficient investments. This Cogeneration Ltd. has a 0.01 per cent partner- This year and into the future our focus remains on growth and exe- Energy Earnings Energy's net earnings for the year ended strength is reflected in the strong cash flow we generate and our ship interest in TransAlta Cogeneration L.P. cution of our various plants under construction which include Cartier December 31, 2007 of $514 million compared to balanced approach to capital allocation. Wind Power, Halton Hills Generating Station and the Portlands Energy $452 million in 2006. * Information provided as at February 26, 2008 •We consistently take a long-term view, keeping our focus on opera- ** Mexican assets were sold to InterGen Global Ventures B.V. Centre. TransCanada is also a part owner of Bruce Power, which is Total Energy Energy total assets were $7.037 billion at tions, costs and productivity, and sustaining a strong balance sheet. on Feb. 20, 2008. Sale is subject to regulatory approval. currently implementing a $5.5 billion restart and refurbishment pro- Assets December 31, 2007. gram that will deliver 1,500 MW to the Ontario market beginning • Looking ahead, TransAlta sees exciting market opportunities, and Generation 7,734 MW (December 31, 2007) in 2010. we have a sound strategy to deliver consistent and growing share- Capacity holder value. Our focus is to expand our already diverse power supply portfolio, Total Energy 43,818 GWh with low operating costs and high reliability and/or facilities that are Sales underpinned by secure, long-term contracts. We continue to seek 2008 Company Objectives growth and long-term success through acquisitions and greenfield • Achieve safety improvement targets. opportunities in the North American electricity markets we know well • Deliver on key plant performance metrics with a focus on reliability or where we have a competitive advantage. and productivity. Through our industry leading experience in energy infrastructure devel- • Develop long-term plans to achieve more aggressive environmental opment and operations, excellent project management and construc- standards. • Execute on all growth initiatives. tion execution, and marketing and trading expertise, we believe we • Maintain a strong balance sheet. are a partner and developer of choice. We will continue our efforts to maintain our reputation as a respected and responsible participant in the energy markets we serve.

TransAlta Wind: Castle River Wind Farm, Pincher Creek, Alberta.

TransCanada's Bear Creek industrial cogeneration power plant in Alberta. 40 4141 David Morrison President and CEO

Most Important Issue Company Data Developing new capacity and energy projects to meet our Ownership Yukon Energy is a publicly-owned electrical utility that operates as a business, at arms growing load base. length from the Yukon government. Number 1,801 retail customers and 1 major wholesaler This will be, without doubt, one of the busiest years in Yukon Energy’s of Customers that supplies 14,863 retail customers history. Not only will we complete Phase 1 of a new 138 kV trans- Number 80 mission line in the Central Yukon (at an estimated cost of $36-million), of Employees but we have a number of other projects planned to help address the $28,061,000 growing need for electricity. This includes preparing for the installation Revenues of a third hydro turbine at our Aishihik plant in the southwestern Yukon, Total Assets $180,949,000 refurbishing two of our oldest diesel units, and searching for viable Energy Delivered 301,989 MWh options for new hydro development. We also plan to file a General Rate Application in the fall of this year. Energy Produced 326,772 MWh 112 MW As always, our ultimate goal is to achieve operational excellence. We Generation Capacity will measure our success by our continued ability to deliver safe, reliable power to our customers, our ability to attract and retain a skilled Peak Demand 66 MW and engaged workforce, our respect for the environment and for the for Power communities and people we serve, and the knowledge that safety is Transmission Two power grids: one in the Southern Yukon a part of every decision we make and every action we take. and Distribution known as the Whitehorse-Aishihik-Faro grid and Network one in the Central Yukon known as the Mayo- Dawson grid. We are currently in the process of 2008 Company Objectives constructing a new line that will eventually connect these two systems. Neither grid is • Complete construction of the Carmacks to Stewart Transmission connected to Southern Canada. Line to Pelly Crossing. $27,528,000 • Complete preparations for third turbine at Aishihik. Total Energy Sales • Faro and Whitehorse diesel generator rebuilds. • General Rate Application. Subsidiaries Yukon Energy’s parent company is the Yukon Development Corporation, which is a crown corporation of the Yukon government. chbould.com .ar edit: www Photo cr

Surveying Yukon Energy’s new Carmacks- Stewart Crossing Transmission Line. 42

® MANITOBA HYDRO’S WUSKWATIM PROJECT EARNS CEA ENVIRONMENTAL

Arc Flash Safety, Device Coordination, and Design Made Easy! STEWARDSHIP AWARD WHYEASYPOWER? EasyPower®, the most automated, user-friendly power system software on the • Easiest to use ® market, delivers a full lineup of Windows -based tools for designing, analyzing, • Fastest algorithms and results Manitoba Hydro was honoured with CEA’s prestigious Environmental remain accountable and transparent to NCN. From the beginning of • Intuitive graphical user interface and monitoring electrical power systems. EasyPower helps you get up to speed Stewardship Award in recognition of the utility’s partnership with the the project, consultation was an essential part of the planning used • Shortest learning curve rapidly, finish complex tasks quickly, and increase your overall productivity. Nisichawayasihk Cree Nation (NCN) to reduce environmental impacts to select the station design, while Ethinesewin was used to identify Consultants, plant/facility engineers, maintenance personnel, and safety • Most accurate, lowering liability/risk • Follows Windows® standards on the Wuskwatim Project. locations for the construction camps, access roads and transmission managers will all realize increased job throughput and profitability without • Complete integration of all functions lines. In the end, Ethinesewin together with economic analysis and extensive training! Watch our 3 minute EasyPower® video; just go to: “The Wuskwatim Generating Station Project marks the first time an logistical implications were used by the partnership to collectively www.easypower.com/video.html. electric utility and a First Nation have entered into such a comprehen- determine the most appropriate project configuration that would pro- CLICKONCETO... sive partnership to develop a generating station with a particular focus Arc Flash Safety Compliance Made Easy! vide both environmental sustainability and economic benefits. • Size equipment per National on preserving our natural environment,” said CEA President and CEO Studies, Work Permits, Boundary Calculations, and More Electric Code Hans Konow. “Utility and First Nation partnering is an innovative con- CEA’s Environmental Stewardship Award is an integral part of the EasyPower ArcFlash™ lets you: • View/modify integrated one-line data cept to new hydroelectric generation projects which may serve as a Association’s Environmental, Commitment and Responsibility (ECR) • Rapidly create and implement a comprehensive arc flash program • Perform complex arc flash model for future resource development not only within Manitoba, but Program. Based on specific criteria and principles, a third party adju- • Comply with OSHA, NFPA, NEC®, and ANSI regulations calculations throughout Canada and around the world. CEA is proud to honour cation panel recognizes the year’s top electricity industry initiative that • Prevent expensive fines and litigation • Verify duty ratings and compliance • Reduce risks and improve plant safety • Analyze switching conditions an approach that responsibly addresses social, economic and environ- tangibly demonstrates environmental leadership and innovation. instantly • Identify all critical PPE levels and clothing needs mental issues”. Manitoba Hydro’s Wuskwatim project was chosen because it: • Study countless operating scenarios • Prepare efficiently for emergencies • Generate detailed reports • Shows significant impact reduction; • Save valuable time and money • Access critical documentation • Has implications for the industry as a whole; • Print compliant work permits • Demonstrates innovation; and One-Touch PDC and Design Tools Now Available in EasyPower 8.0! and labels • Focuses on partnerships and engages First Nations. What used to take hours or even weeks can now be accomplished in seconds. Finally, truly automated design and device coordination is here. With EasyPower’s one-touch automation, you don’t need to make manual “EasyPower 8.0 really knocked my socks calculations or memorize electrical codes. For the first time, even those without off. I don’t know of any other program design experience can complete comprehensive design and analysis tasks. that comes close to its speed and automation — that auto-coordinates and SmartDesign™ | Automated Design for Low-Voltage Systems eliminates all the guesswork. EasyPower SmartDesign™ completely automates equipment sizing in the design Typically, setting devices takes up to process, saving countless hours of manually rerunning calculations to verify 15 minutes — sometimes longer — per code compliance. It also generates comprehensive reports to alert you to circuit, depending on the complexity. possible problem areas, giving valuable insight. There’s no need to reinvent the But with EasyPower SmartPDC, it wheel with SmartDesign™; just set up your design sheets ONCE, and literally takes only 5 to 15 seconds. SmartDesign™ does all the rest for you. Just amazing! Manitoba Hydro President and CEO Bob Brennan (left) accepting Environmental Tie this all in with new automated Stewardship Award from CEA President and CEO Hans Konow (right). SmartPDC™ | Protective Device Coordination Made Easy design features, the ability to conduct EasyPower SmartPDC™ fully automates the tedious, labor-intensive work of studies, and having a fully integrated setting protective devices — just highlight an area to coordinate, and one click database - and watch productivity completes the task for you. Intelligent reporting automatically provides a list skyrocket.” The Wuskwatim Generating Station brought Manitoba Hydro and NCN of devices and setting options, with a detailed description explaining each into a close partnership. Both partners filled an essential role in the — Jim Phillips, P.E. T2G Technical project planning process and these roles will continue throughout the setting. It’s like having the industry’s brightest engineers right inside your PC. Training Group construction and operation phases. Manitoba Hydro’s vision was to About ESA, Developers of EasyPower construct a new generating station in an environmentally sensitive and Since 1984, ESA has redefined the way companies manage, design, and analyze socially conscientious manner. NCN approached the project with the electrical power distribution. Our innovative technologies make power system TRYBEFOREYOUBUY purpose of maintaining the traditional use of the land while providing Download a Free Demo! design and management simpler, smarter, and safer than ever. We invite you to the community with the economic benefits of being a partner in the visit www.EasyPower.com for a complete overview of all the powerful options ONLINEPRESENTATION development and operation of a hydroelectric generating station. available within EasyPower 8.0! Witness the speed and automation of EasyPower and ask engineers Manitoba Hydro has ensured the incorporation of NCN’s traditional specific questions during a knowledge – Ethinesewin – into Wuskwatim project planning and Power made easy live online product presentation. development in order to limit adverse environmental impacts and intelligent | intuitive | instantaneous Sign up today. It’s free! power system software

46 Tap into the power of EasyPower! Download a FREE demo or sign up for a free live, online presentation: 47 www.EasyPower.com | 503-655-5059 x35 CEA’S PRESIDENT’S AWARD OF EXCELLENCE HONOURS BEST PERFORMING UTILITIES IN EMPLOYEE SAFETY

For over thirty years, the Canadian Electricity Association has tracked the employee safety record of its member utilities. Annually, the President’s Award of Excellence for Employee Safety is presented to members who have demonstrated superior safety performance in the past year. By promoting safety, this award has assisted CEA members in meeting their objectives of accident reduction and overall performance. To receive the President’s Award, a reporting utility must be ranked within the top quartile of their grouping for both All Injury/Illness Frequency and Lost-Time Severity rates. There are three award levels: Bronze for the companies who meet the award criteria for the given year; Silver for meeting the criteria two consecutive years; and Gold for three or more consecutive years. Congratulations are extended to the following companies who have attained the 2006 President’s Award of Excellence for Employee Safety:

Gold Award For the under 300 employee group (Group III) Saint John Energy Silver Award For the over 301 employee grouping (Groups I & II) Ontario Power Generation

® Bronze Award For the over 301 employee grouping (Groups I & II ) Nova Scotia Power Air Core Current Limiting Reactors For the under 300 employee group (Group III) ATCO Power Line Traps PLC Relay Communication Channels Capacitor Voltage Transformers Delivering for Today, Building for Tomorrow Current Transformers Potential Transformers As Ontario communities grow and Prudent investment in critical Our history of reliability and Metering Transformers new sources of generation become infrastructure is ensuring that we’ll operational excellence, and our track Low Power V/I Transformers available, Hydro One is building be able to meet those needs. The record of delivering key projects on LV-HV Bushings (Pwr Transformer) new infrastructure to ensure we can electricity we deliver through our time and on budget means that Capacitor Bank Protective Relays deliver electricity to where Ontarians transmission and distribution system Ontario can continue to count on need it to be. Understanding our powers the lives, businesses and us to be there when they need us. Resonant Grounding Systems system’s capacity and your needs is homes of 97% of Ontarians. Composite Bushing Insulators 10% helping us plan for the years ahead. Ontario’s future prosperity depends upon our ability to continue to safely, TRENCH LIMITED Cert no. SGS-COC-003153 reliably and efficiently deliver 71 Maybrook Drive, Toronto ON M1V 4B6 Canada electricity. Tel: 416-298-8108 • Fax: 416-298-2209 www.trenchgroup.com

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