THE JOURNEY

1 Feb. 28, 2017 OEA Speaker Series Brian Bentz, President & CEO Ever-shifting energy policy landscape

2 Utilities Coming Together

3 Merger Timeline

Enersource, Horizon, OEB decision is and PowerStream released to merge the 3 MAADs The 3 utilities announce their intention utilities on Feb. 1 and application is become Alectra to work together to form submitted to the purchase Hydro One a new utility of 1 million OEB Brampton as of Feb. 28 customers

APR MAR APR JUN DEC JAN JAN 31 FEB 28 2015 2016 2016 2016 2016 2017 2017 2017

Negotiations are completed; legal Alectra President & agreements are Alectra family of completes the CEO and two signed; Share companies is purchase of Presidents are Purchase Agreement announced Hydro One for Hydro One named Brampton Brampton is signed

4 Alectra Ownership Structure

5 6 Alectra by the Numbers

- 7 Shareholders - 6 Municipalities and Borealis - Serves customers in 15 municipalities and communities - Approximately 1 million customers across an 1,800 km2 service territory in the Greater area - 2016 (consolidated) customer additions - 12,250 - 2016 consolidated energy sales of 25,592 GWh (21% of electricity consumed in ); peak demand of 4,750 MW - Regulated and non-regulated businesses - Approx. 1,600 employees - Total Assets - $3.56 billion

7 What is the Journey all About?

8 How did we get here?

9 Finding our ‘North Star’

10 A Transforming Industry in a Transforming World

11 Companies That Didn’t Adapt

Where Are They Now?

12 Companies That Did Adapt

Look At Them Now!

13 Industry Disrupters

New Competitors, New Markets!

14 Disruption in the Electricity Industry

- Enersource, Horizon Utilities, PowerStream and Hydro One Brampton were a stable group of utilities adapting to industry disruption

- We had a choice:

Do we wait until the industry forces us to act, or, do we define our own destiny?

15 Forging our own path

16 Alectra’s Destination

- Alectra believes everyone needs an ally in this new world of choice. Whether a customer, employee, investor or community member, our promise is to help stakeholders benefit from the best of the new energy with an emphasis on value, service and simplicity.

- We promise to stay ahead of the pace of change to ensure we’re investing where it counts. And we promise to live by our values of sustainability, transparency and responsibility.

- From our roots as a family of progressive electric utilities, we’ve built Alectra to bring new energy to the challenge before us.

- Discover the possibilities

17 A New World of Energy

18 Honourable Mentions

19 Honourable Mentions

20 Lessons Learned

❖If at first you don’t succeed…

21 Lessons Learned

❖Meanwhile, back at the ranch…

22 Lessons Learned

❖Find your champions.

23 Lessons Learned

❖Shakespeare had it wrong.

24 Lessons Learned

❖Plan. Plan. Plan.

25 Lessons Learned

❖Communicate. ❖Communicate. ❖Communicate. ❖Communicate. ❖Communicate.

26 Lessons Learned

❖Stick to your higher purpose, even (and especially) if you are at risk.

27 Lessons Learned

❖You need partners to go to battle with, win or lose. And it’s always better if you win.

28 Thank You

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