The Risks and Challenges of ’s Big Build

Johanne Picard-Thompson SVP, Projects March 27th, 2014 AltaLink at a glance

• We are Canada’s only fully independent transmission company • AltaLink currently owns and operates: • 280 substaons • 12,000 km of 69 kV to 500 kV transmission lines • the Alberta poron of the intere to Brish Columbia • We serve more than three million people, or 85% of Alberta’s total populaon • AltaLink is the first transmission company in Canada to receive CEA’s Sustainability Award AltaLink’s project porolio is diverse

Heartland 12S 1054L / 1061L Chrisna Lake Chrisna Lake Pike 723S Heartland EPCOR

Heartland 920L / 921L Round Hill

Cherhill (HATD) Athabasca Wabamun-Edmonton Athabasca Upgrade Sundance / Wabamun Debolenecking Deboleneck Edmonton Region Heartland 942L / 943L Hanna Nilrem (HATD) Hinton (HATD) EDMONTON Hanna Hasman Lake (HATD) Yellowhead Western Alberta Transmission Line Central East Transmission Development (CETD) Drayton Valley (HATD) (“WATL”) Red Deer Red Deer Area Transmission Development (RDATD) Red Deer Eyre (HATD)

Hanna (“HATD”) East Calgary to Janet (ECTP)

Hanna Ware Juncon (HATD)

NFTP East Cassils to Bowmanton (CBW) NFTP Janet to CALGARY Foothills (FATD) Foothills (“FATD”) Wildrose 1 (East Palliser North) Picture Bue to (SATR II) SFTP MEDICINE HAT Interconnecon South (“SATR”) Bowmanton to Whitla (CBW)

Wildrose 2 (East Palliser South) Fidler to Chapel Rock (SATR II) LETHBRIDGE Shell Wild Steer Bue Castle Rock Ridge (CRR) Etzikom Coulee to Whitla (SATR)

Fidler 312S SW 240 kV 2013 provides a sense of scale

Over $1.5B in assets energized and an addional $1.6B in applicaons approved and moved into construcon

Facility Permits Projects 2013 Applicaons Filed Received Completed Milestone 19 22 25 Achieved $ Value of $904M $1.6B $1.5B Projects

The “Big Build” is big in terms of the number of projects and the size of projects in progress simultaneously Customers drive our growth

• Large customers are seng the pace of growth for system projects • Customers also require to “connect” their developments to the grid through interconnecon projects • Speed of connecng customers to the grid is a major concern • Current cycle me is 36 months • Target cycle me is 18 to 24 months Key challenges are also ‘big’

• Simultaneous execuon of major projects • Labour availability • Impact of Alberta’s hot market on project costs • Environmental regulaon • Consultaon requirements • Increased cost scruny by interveners and regulator • Uncertainty in government policy Thank you - Merci