Corporate Report 2017 We're Working to Meet the Evolving Energy Needs of Our Customers and B.C.—Safely, Reliably and at the Lowest Reasonable Cost

Corporate Report 2017 We're working to meet the evolving energy needs of our customers and B.C.—safely, reliably and at the lowest reasonable cost.

Front cover: Crystal Lloyd, Environmental Program Lead, FortisBC Contents

Performance...... 2 Safety, our top priority...... 8 Community investment...... 16 Looking ahead...... 24 Area of operations...... 3 Our employees...... 10 Indigenous relations...... 18 Leadership team...... 26 A message from Affordable energy and Environmental Board of directors...... 28 the President and CEO...... 4 innovation...... 12 responsibility...... 20 Customer service...... 6 Infrastructure investment....14 Helping customers save energy...... 22

FortisBC Corporate Report 2017 1 Performance

FortisBC Inc. and FortisBC Financial highlights (in millions of dollars) Looking back at 2017 Energy Inc. do business as FortisBC. FortisBC delivers the energy customers We are indirectly wholly owned by FortisBC FortisBC Inc. 2 need safely, reliably and at the lowest our parent company, Fortis Inc., a 2016 2017 Energy Inc. 2016 2017 Electricity reasonable cost. Whether delivering leader in the North American electric Natural gas & electricity, natural gas or propane, and gas utility business. Through its piped propane Net earnings $49 $50 our more than 2,300 employees serve subsidiaries, Fortis Inc. serves more Revenues $361 $381 approximately 1.1 million customers than 3.2 million natural gas and Net earnings $171 $186 in 135 communities. electricity customers. Revenues $1,151 $1,199 Operating expenses $80 $80 FortisBC owns and operates Performance Operating approximately 49,000 kilometres expenses $295 $295 Capital $74 $105 of natural gas transmission FortisBC expenditures1 Capital and distribution pipelines, and Energy Inc. 2016 2017 expenditures1 $333 $444 approximately 7,260 kilometres of Natural gas & piped propane electric transmission and distribution 1Capital expenditures before contributions in aid of construction and including cost of removal. 2Certain comparative figures power lines. have been classified to conform to the current year’s presentation. Peak day demand 1,334 1,336 Our energy infrastructure assets also (TJ) FortisBC gas customers3 FortisBC electricity customers4 include B.C.’s largest underground (Approximately 1,008,422 in 2017) (Approximately 172,343 in 2017) Gas volumes (PJ) 197 221 natural gas storage facility, two liquefied natural gas (LNG) storage Customer 8.8 8.4 facilities, and four hydroelectric satisfaction index 1,000,000 170,000 generating plants.

FortisBC Inc. 2016 2017 975,000 165,000 Electricity

Generating capacity (MW) 225 225 950,000 160,000 Peak demand each year (MW) 712 731 925,000 155,000 Energy Walden (GWh) 2 — 900,000 150,000 Regulated (GWh) 3,119 3,305 Customer 145,000 satisfaction index 8.2 8.2 875,000 2013 2015 2016 2017 2014 2013 2014 2015 2016 2017

3Includes piped propane customers. 4Includes direct and indirect customers.

FortisBC Corporate Report 2017 2 Northwest Area of operations Yukon Territories

Natural gas service area Electric service area Fort Nelson Combined natural gas & electric service area Propane service area FortisBC pipeline Spectra Energy pipeline FortisBC electric transmission lines

Aitken Creek Hudson’s Hope

British Mackenzie Columbia Alberta

Prince George

Williams Lake

Revelstoke PA C Kamloops Enderby Campbell River IF Whistler Lumby I Powell River Elkford C Kaslo O Kelowna C Princeton Port Alberni Nanaimo Hope Cranbrook E Vancouver A Trail N Osoyoos

Victoria United States

FortisBC Corporate Report 2017 3 conservation within the City while We continue to invest in our aligning the City’s building codes with infrastructure here in British A message from the BC Energy Step Code. Columbia. Following the successful completion of the $170 million Coastal FortisBC is working to explore Transmission System project running the President and CEO potential market opportunities from Surrey to Coquitlam, work will to reduce emissions from the start this year on the Lower Mainland transportation industry, including System Upgrade project that was the use of compressed natural gas and another $105 million on electric in planning for much of 2017. The (CNG) or liquefied natural gas (LNG) operations. Our sizable ongoing project will see the installation over in freight hauling, public transit and investment into our infrastructure the next two years of approximately marine vessels. In order to meet the helps to ensure that B.C. residents and 20 kilometres of a new natural gas growing demand for LNG, we continue businesses have the safe, reliable and pipeline running from Coquitlam to to progress on the $400 million affordable energy they need today and Vancouver, ensuring continued safe, expansion of our Tilbury LNG facility into the future. efficient and reliable gas service to the in Delta. FortisBC provides LNG to both Lower Mainland. FortisBC sees natural gas as a vital BC Ferries and Seaspan Ferries for a part of the evolving energy mix for the total of five vessels, with another two FortisBC also continues to regularly province of British Columbia as well on the way, reducing both fuel costs upgrade its electrical generation and as globally. This year, we celebrated and greenhouse gas (GHG) emissions. distribution infrastructure across the our millionth natural gas customer in As the International Maritime Kootenays and Okanagan to provide the province and added approximately Organization moves toward unveiling clean hydroelectric power to over 21,000 new customers—a strong its GHG strategy, there is significant 172,000 customers. In the summer of endorsement of the value proposition potential to grow our maritime LNG 2017, we received approval from the of natural gas. It remains an affordable business further. BC Utilities Commission (BCUC) to and efficient energy source that is begin a $63 million replacement of An expanded Tilbury facility also well suited to fit within a low-carbon the Corra Linn Dam spill gates, and creates new opportunities for potential marketplace. began planning, procurement and Roger Dall’Antonia LNG export, as demonstrated by our community engagement activities. This was demonstrated by the first LNG shipment to China late in Over the last year, FortisBC has Construction at Corra Linn will Memorandum of Understanding (MOU) 2017. The pilot shipment will help delivered on its goals with the energy begin in 2018. we signed with the City of Vancouver determine the logistical feasibility and innovation that is the hallmark on November 24, 2017, that ensured of LNG exports from FortisBC and is Our work at the Upper Bonnington of our company and our people. I’m Vancouver residents and businesses a key opportunity to contribute to Dam is also proceeding as scheduled pleased to be able to share some of would continue to enjoy the benefits helping reduce carbon dioxide (CO2) as we continue with the refurbishment these achievements. of natural gas while simultaneously emissions globally. of its power generation units. Other setting the stage for collaboration on notable upgrades in 2017 included Financially, 2017 proved to be yet Our progress in promoting CNG climate action initiatives. the $1.5 million system upgrade in another strong year for FortisBC. within the province has been similarly Growth in our natural gas division the Christina Lake area, replacing or The MOU was an important step successful. In 2017, FortisBC opened a delivered $186 million in net income— repairing 150 poles to ensure ongoing forward for both FortisBC and its new CNG fuelling station in Kamloops an increase over $15 million from 2016. reliable power for residents. customers, ensuring that our 110,000 and was a funding partner in bringing Our electric operations remained a customers in Vancouver have long- 25 new CNG-fuelled buses to the Resort Our electricity customers also strong financial performer as well with term continuity of energy supply Municipality of Whistler, bringing benefited from our ongoing investment $50 million in net income. and that future development can the total number of CNG-fuelled in technology as we launched our We continue to invest in British still benefit from the advantages of vehicles funded by our investments electricity outage map. During a power Columbia to maintain and expand natural gas. The MOU also set a mutual to 598 to date in B.C. Fuelling outage, information is important our business, with capital spending commitment to expand the supply vehicles with natural gas rather than and our new outage map provides of $444 million on gas operations and use of Renewable Natural Gas and diesel can reduce GHG emissions by up-to-date information from our increase our investment in energy 15 to 25 per cent. field crews.

FortisBC Corporate Report 2017 4 FortisBC was the first company in the world to offer onboard truck-to-ship LNG bunkering. This proprietary design was developed by collaborating with Seaspan Ferries, BC Ferries and their shipbuilders to create a customized solution to fit our customers’ needs.

The information, which is provided Members of the FortisBC team were With all of our success, we also As we enter 2018, I am filled with by advanced meters, helps us locate just as generous with their time as they experienced a profound loss as optimism about what we will the source of unexpected power were with their dollars, volunteering our friend and President and CEO, accomplish this year. It will be a year interruptions and improves our crews’ time to causes and communities, Michael Mulcahy, passed away. Through marked by innovation, opportunity ability to restore power as safely and including cleanup and recovery efforts his 25-year career with the Fortis group and providing our customers with quickly as possible. after flooding in the Okanagan. During of companies, he established himself as the energy they need safely, reliably the summer wildfires, our Prince a visionary leader and a trusted friend and affordably. Throughout 2017, FortisBC also proudly George and Burnaby contact centres and colleague. His leadership set the invested in the communities where we assisted the BC Economic Development stage for many of our accomplishments live and work. Our employees, inclusive Association in establishing a Business in 2017. He is sorely missed. of management, MoveUP employees Recovery Hotline to help impacted and members of the International businesses, fielding close to 500 calls We owe our success in 2017 to our Brotherhood of Electrical Workers, over two months. All in all, FortisBC employees throughout the province, Roger Dall’Antonia raised over $106,000 in contributions and our people contributed many and I’d like to thank everyone across President and CEO to the United Way through our annual volunteer hours and approximately our operations. Just as FortisBC FortisBC fundraising campaign, which was 50 $223,500 in employee-giving provides energy to our customers, per cent matched by FortisBC. funding to local organizations and our people provide the energy to non-profits in 2017. this company.

FortisBC Corporate Report 2017 5 Customer service

Our customers range from homeowners and small businesses to commercial facilities and large industry throughout the province. Here in the Christina Lake area, FortisBC crews replace and repair approximately 150 power poles—ensuring customers continue to have reliable service.

FortisBC Corporate Report 2017 6 Connecting with Notable numbers customers We proudly serve 1.1 million customers Approximate number of customer in 135 B.C. communities, delivering calls our three contact centres the energy they need every day, handle on an average day: safely and reliably. Connecting with our customers is key to providing quality service. Our three contact centres collectively handle approximately 3,872 customer calls on an average day. We also enjoy 3,872 meeting customers face-to-face. In 2017, our events team attended more Every day, Cynthia Garley, a Customer Service Leader in our Burnaby contact centre, talks to many customers ensuring their needs are met. than 500 events and engaged in close Increase in paperless billing to 50,000 conversations across the subscribers from 2016: province. We heard how important can access gas and electricity bill contingency plans to ensure customers access to affordable energy is to our information, safety advice and energy- were safe and had the energy customers and how they are interested saving tips—all from the convenience they needed. in saving money, conserving energy, of a smartphone. and having greater access to convenient In our service territory, the Princeton self-serve options and alternative To ensure we continue to hear our area was the hardest hit by forest 14% energy solutions. customers' feedback and gather their fires. Working with firefighting and input, we developed MyVoice, an online brushing crews, our technicians Our online account management tool, community where customers can share repaired 15 kilometres of power lines Approximate number of customers Account Online, continued to see an their opinions about our services, in just four days. who subscribe to paperless billing: increase in usage. To date, we have campaigns and projects via surveys. 371,368 natural gas customers and By sharing their thoughts, concerns Our Prince George and Burnaby 31,345 electricity customers enrolled and ideas with us, British Columbians contact centres assisted the BC in it. Additionally, electricity customers can help play a role in shaping our Economic Development Association can now use Account Online to view province's energy future. in establishing a Business Recovery their hourly consumption and better Hotline to help impacted businesses. % understand their energy use. We also The team fielded 484 calls over an 34 improved the online process of moving Responding to eight-week period. natural gas accounts. When customers request a move it is now done natural disasters automatically instead of manually, This year was especially challenging “The BC Economic Development Association is extremely reducing administrative efforts and with floods and fires across B.C. grateful for FortisBC’s support of our Economic Recovery improving the customer experience. The southern and central Interior efforts during the wildfires of 2017. The professionalism and experienced high water levels during In response to customer feedback, the spring, while the wildfire season compassion demonstrated by the agents helped us gather we developed an electricity outage was the worst on record. For four critical information needed for us to encourage additional map that became available online in months, more than 60 employees were support from the Province of B.C., the private sector, the the summer. Customers can access dedicated to responding to affected Canadian Red Cross and more.” up-to-date outage information and customers. Every day, they monitored restoration times. In 2017, we developed system impacts and made service Dale Wheeldon, President and CEO, British Columbia our new mobile app where customers Economic Development Association

FortisBC Corporate Report 2017 7 Safety, our top priority

“At FortisBC, emergency preparedness is always top of mind. FortisBC works closely with and trains first responders.” John Kopchia, FortisBC Field Operations Supervisor, at an emergency training session in Kelowna

FortisBC Corporate Report 2017 8 Dedicated to safety Notable numbers Safety is always top of mind—including the well-being of our employees. In 2017, our employees continued to Number of BC One Call reaffirm their commitment to safe requests in 2017: work practices through corporate and employee-driven programs. We achieved 90 consecutive days without lost time or medical treatments and five consecutive weeks without any recordable incidents 146,868 including preventable vehicle incidents. These are significant improvements Number of first responder training over 2015 and 2016, and demonstrate L to R: Ron Field and Dave Albrecht are System Damage Investigators as well as Damage sessions provided by FortisBC: how safety is a central part of Prevention Liaisons for FortisBC. Their job is to help guide and educate contractors about FortisBC’s culture. safe digging practices.

Safety is a team effort Increasing safety Emergency Every year, we challenge ourselves to create greater awareness among awareness preparedness 40 employees, customers and the public Continued efforts in education and Each year, our emergency exercises about staying safe around natural gas outreach were a major focus this become more complex and Number of firefighters who and electricity. In 2017, we used new year. We used new channels to reach collaborative as we prepare for participated in FortisBC training: tools and team efforts to achieve our residential customers and small situations that could affect the safety safety targets. contractors to reinforce the importance of our employees, customers or the We continued our public awareness of getting a BC One Call ticket public. One exercise scenario involved and education efforts for natural gas before digging. excessive rain forcing overflows at multiple dams, including the Waneta and meter safety across the province, BC One Call requests have increased, as well as power line safety in our Dam and a breach at Washington’s and the number of pipeline damage Box Canyon Dam. This required 400 electricity service regions. We also incidents per 1,000 BC One Call continued working with our various a co-operative response between requests was 8.49 in 2017—meeting our Canadian and U.S. agencies. In 2017, we Safety Partners in the southern goal of fewer than 8.6 incidents. Interior—a partnership made up completed 18 exercises that involved of utilities, municipalities and We also took our Call Before You Dig first responders such as fire, police and organizations that share a commitment efforts on the road. Damage prevention local government officials, along with to safety. liaisons now visit worksites across other internal exercises. B.C. to talk to third-party contractors Additionally, we teamed up with and ensure compliance with safe the Preventable organization for digging practices. “Every year, we challenge ourselves to create greater awareness an online social media campaign among employees, customers and the public about staying safe to educate the public about regular around natural gas and electricity. In 2017, we used new tools appliance maintenance. The social influencers we worked with on this and team efforts to achieve our safety targets.” campaign generated above-average Ian Turnbull, Damage Prevention & Emergency Services response rates and interactions on Manager, Asset Management, FortisBC their social platforms.

FortisBC Corporate Report 2017 9 Our employees

This group of FortisBC employees celebrated their 10 years of service and contributions to the success of our company.

FortisBC Corporate Report 2017 10 Our greatest assets Notable numbers People will always be our greatest assets. We have more than 2,300 employees located across British Number of charities and organizations Columbia, including the International employees donated to: Brotherhood of Electrical Workers and MoveUP members. Every year, we recognize our employees for their contributions to the success of FortisBC. In 2017, we honoured 217 employees for their service—from five 184 to 45 years. We are committed to employee Approximate total amount donated training and development that through employee-giving programs supports career advancement and long-term futures. We continue to and FortisBC: offer in-house apprenticeship training One 60-crew contingent from Fortis’ Canadian operations, including FortisBC programs in trades for both electricity employees, leaving Toronto to help in the restoration efforts in the Turks and Caicos and natural gas positions, as well Islands post Hurricane Irma. as co-op work opportunities and $ engineer-in-training programs. contractors from other Fortis utilities. In less than 60 days, crews rebuilt Many helping hands 223,500 Always looking to the future, we hosted 45 Grade 9 students on or replaced many kilometres of When it comes to volunteering we like Take Your Kids to Work Day at seven infrastructure including 1,500 to dig right in. Among many efforts, different locations. Students enjoyed electricity poles. In addition to helping employees teamed up with Evergreen’s a full day of FortisBC experiences— those in need, these efforts provided urban tree planting initiative in from job shadowing and team- valuable hands-on training in the the Lower Mainland, helped restore building activities to dam tours and aftermath of a natural disaster for Colquitz Park in the Greater Victoria scientific demonstrations. our crews. area, planted an Aboriginal garden with Douglas College, and volunteered Dedicated to service One story truly exemplifies the heart at the Sharing Farm, the only non- of our employees as they go above profit farm in the Lower Mainland to Our employees are dedicated to and beyond. In the aftermath of the grow food for 1,000 people a week. service and helping communities hurricane, an American citizen called where they live and work. But this our Burnaby contact centre hoping support goes beyond our service areas our crews in Turks and Caicos could “As a leading energy provider in B.C., it’s important for us to and local borders. check on his family. Despite the harsh demands of the restoration efforts, share with students the role we play in the province while After Hurricane Irma devastated our crews made contact with his providing inspiration for potential future career paths.” the Turks and Caicos Islands, we family within 48 hours, confirming Jennifer Stokes, Talent Acquisition Associate, describing helped the local Fortis company, their safety. FortisTCI, restore power to 15,000 our Take Your Kids to Work Day efforts customers. Fifteen FortisBC crew members joined a 250-strong contingent of employees and

FortisBC Corporate Report 2017 11 Affordable energy and innovation

We opened our newest compressed natural gas (CNG) fuelling station in Kamloops, making it the seventh FortisBC-owned and operated station in our network of CNG stations across the province. L to R: Peter Valkenburg, Commercial Projects Manager, Sarah Smith, Director, NGT and Regional LNG and RNG, and Tyson Jerry, CNG/LNG Sales Manager.

FortisBC Corporate Report 2017 12 Customer milestones Natural gas for Renewable energy Notable numbers By the end of 2017, we achieved a transportation In recognition of our forward thinking major milestone: one million natural and work to reduce energy use and gas customers. We also connected Increasing numbers of fleet greenhouse gas emissions, we were Number of natural approximately 21,000 new natural gas owners and operators in B.C. are awarded the Clean Energy City Award gas customers in 2017: services. This resulted in more than switching to natural gas to save for our Renewable Natural Gas* (RNG) $60.2 million of capital investment on fuel costs and help shrink their Program from the City of Surrey. We’re to serve new customers. Adding environmental footprint. proud to work with the City on the these new customers also benefited new Surrey biofuel facility, which will BC Ferries and Seaspan Ferries put existing customers since fixed costs produce RNG for the City’s CNG-fuelled new liquefied natural gas (LNG) are spread over a greater base, helping vehicle fleets. fuelled vessels into service in 2017, 1,008,422 to keep rates down. These additions and BC Ferries’ Spirit of British Columbia demonstrate the increasing awareness In 2017, 1,551 new customers signed entered refit and will be converted to of the value of natural gas among up for RNG. Together, our customers Residential and commercial an LNG-fuelled vessel. Meanwhile, we British Columbians. consumed approximately 233,000 RNG customers to date: helped new customers like Canadian gigajoules of RNG, which is equivalent

Linen with their compressed natural to avoiding 11,650 tonnes of CO2 or Maintaining our gas (CNG) fuelled fleet of step vans. removing 2,475 cars off the road for one year. electric system In October, we opened a CNG fuelling station in Kamloops. New Our $1.5 million system upgrade in infrastructure like this station the Christina Lake area provided a “By focusing on internal 9,041 helps businesses make the switch to valuable opportunity for our power natural gas—one of the reasons we and external transportation line technicians to use specialized were given the 2017 Natural Gas Fleet fleets, we have helped meet Number of RNG gigajoules supplied by skills while upgrading a line along Program Award by NGVAmerica and Highway 3. Crews came from all GHG emission reduction Kelowna’s Glenmore landfill in 2017: the Advanced Clean Transportation over the Okanagan and Kootenays goals, improved air quality Award from ACT Expo for leadership in to complete the work quickly and sustainable transportation. in local communities, and help maintain a safe, reliable electric provided a cost-effective system. In total, crews repaired or We also launched our first-ever mobile alternative to petroleum replaced 150 poles. LNG system in Whistler. On extremely fuels to our customers, cold days an automated system will 28,654 Among other ongoing upgrades, use our 12,000-gallon LNG tank to heat using natural gas—a B.C. we refurbished the first of four homes and businesses. Whistler also resource.” hydroelectric generation units at the LNG and CNG vehicles and vessels converted its bus fleet to CNG in 2017. Upper Bonnington Dam. The unit, Sarah Smith, Director funded by our incentives to date: originally installed in 1907, reflects of Natural Gas for FortisBC’s reputation as a low-cost operator and maintainer of power Transportation, Regional facilities for more than 100 years. Such LNG and RNG, FortisBC efficient use of equipment helps to keep costs down. Further upgrades are planned for 2018. 769

*Renewable Natural Gas is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create carbon-neutral Renewable Natural Gas (also called biomethane).

FortisBC Corporate Report 2017 13 Infrastructure investment

Led by Chris Coady, FortisBC's Manager of Property Services, our land agents worked directly with residents and businesses throughout the Surrey to Coquitlam natural gas line upgrade project. From right-of-way cleanup to yard restoration, their goal was to minimize impacts to the community.

FortisBC Corporate Report 2017 14 Meeting growing Notable numbers demand With the Surrey to Coquitlam Surrey to Coquitlam natural gas line natural gas line upgrades now in upgrade project: service, we continue to meet our customers’ growing energy needs. In total, 11 kilometres of new pipeline were installed in various locations $ to enhance this integral part of our coastal transmission system, which million serves more than 700,000 homes and 31.2 in economic benefits for B.C. businesses in the Lower Mainland and By expanding our Tilbury LNG storage facility, we will be able to liquefy an additional on Vancouver Island. 34,000 gigajoules of natural gas per day and add 1.1 million gigajoules of additional storage capacity. These upgrades allow us to continue Number of trade the safe, reliable delivery of natural apprentices employed: gas to our customers and support anticipated future growth and demand. Supporting local Continuing the This year, we completed early work communities conversation to prepare for a major upgrade of a In 2017, we continued the $400 million Launched in April, the redesigned natural gas line between Coquitlam expansion of the Tilbury LNG storage Talking Energy website makes it easier and Vancouver, which will be replaced facility in Delta. The project provides for customers to connect with us on 62 starting in 2018. We also completed significant economic benefits, with major projects and energy topics. a $2.2 million capacity upgrade approximately $60 million committed Improved functionality lets visitors Number of local vendors engaged: in the City of Surrey to help meet to local contractor spending and more to talkingenergy.ca provide instant growing customer demand and to than 165 local companies contracted feedback and suggest subjects to support a planned CNG station for from 12 communities. be featured. the City’s fleet. The upgrade included the installation of one kilometre of LNG export to China new pipeline through residential “The number of customers and city streets. In November, the first-ever shipment 120 of LNG from Canada to China left our in the Lower Mainland has As more and more British Columbians grown significantly in the Tilbury facility. We worked closely with show interest in electric vehicles, we True North Energy Corporation on this past few decades. The are leading the charge and helping to pilot project that will test the supply reduce emissions by working with a Surrey to Coquitlam natural logistics of shipping LNG to Asia. By gas line upgrade project number of organizations and regional 2040, according to the International districts. As a result, work will begin Energy Agency, 80 per cent of projected adds additional capacity in 2018 on a network of fast-charging growth in worldwide natural gas to meet their needs.” electric vehicle stations in several demand takes place in developing Kootenay communities. countries, led by China. This made-in- Ian Miki, Project Director, B.C. solution will provide China with FortisBC more access to LNG, a cleaner and lower cost fossil fuel displacement for coal and diesel.

FortisBC Corporate Report 2017 15 Community investment

In the wake of massive flooding in the Okanagan region, FortisBC employees volunteered to clear flood debris from Bluebird Beach in Kelowna.

FortisBC Corporate Report 2017 16 Supporting Notable numbers communities and causes B.C. communities that received investments: This past year we supported more than 251 programs and events in 85 communities through our community investment programs—with a focus on safety, education and the environment or Indigenous initiatives. 85 Together with our employees, MoveUP and the International Brotherhood of Community events we participated in Electrical Workers, we raised more than $106,000 for United Way to help UBCM 2017 FortisBC Community Awards recipients representing Campbell River, around the province: those most in need in B.C. In 2017, we the City of Coquitlam, Slocan Valley and Kamloops each accept investment funds for continued our support of the CKNW their projects including urban renewal, refugee housing projects, community computer Kids' Fund with a $10,000 donation. labs and refurbished playgrounds. FortisBC employees also answered phones and took pledges for the Proud of our 100-year history of Fund, which works with thousands of Employee giving serving the energy needs of B.C., 251 children with special needs, providing FortisBC strongly supports the we see giving back as a way of grants for equipment, therapy and involvement of employees in the contributing to a stronger future for much-needed programs. communities where they live and work. all British Columbians. At the Union of BC Municipalities Through volunteerism and donations, (UBCM) conference, we announced employees helped the causes that were four non-profit organizations most important to them, including “Donations from FortisBC allow organizations like the Campbellton 184 organizations that received funds that each received $15,000 in Neighbourhood Association to do bigger projects and leverage community investment funding. The through employee giving initiatives. recipients included the Campbellton funds from the City and businesses. Together, working with the Our Warm Hearts charitable Neighbourhood Association in community we can—and they can—do much larger projects, and foundation, created in 1994 by Campbell River, the Tri-Cities Friends employees, supports many different ongoing, sustainable projects.” of Refugees in Coquitlam, the W.E. needs, from hospitals and hospices Graham Community Service Society Ron Kerr, City Councillor, Campbell River to shelters and youth centres. in the Slocan Valley and the Boys and Warm Hearts expects to achieve its Girls Club of Kamloops. $1 million milestone in total donations In support of wildfire relief, FortisBC by early 2018. donated $25,000 to the Canadian Red Cross. And in the wake of massive flooding in the Okanagan region, employees volunteered to clear flood debris from Bluebird Beach in Kelowna.

FortisBC Corporate Report 2017 17 Indigenous relations

These young dancers, part of the Coastal Wolf Pack dance group from the Musqueam Indian Band, performed for guests at FortisBC’s reception at the 2017 Union of BC Municipalities Convention.

FortisBC Corporate Report 2017 18 Honouring the past Notable numbers We believe that understanding, trust, respect and open communication are key values in our relationships with The number of Indigenous traditional B.C.’s Indigenous Peoples. These values territories our infrastructure crosses: are embedded in our formal Statement of Aboriginal Principles. In the spirit of “we are all one,” FortisBC employees took part in the 2017 Walk for Reconciliation in Vancouver. This annual event 150 acknowledges and honours the survivors of the Indian residential The number of Indigenous school system as well as those who communities we provide service to: lost their lives. We also donated to Reconciliation Canada on behalf FortisBC employees participated in the 2017 Walk for Reconciliation to honour of participating employees and survivors of the Indian residential school system in B.C. family members.

Supporting education The First Nations’ Emergency Services We also supported the 35th Annual Society of BC delivers emergency Secwepemc Gathering in Enderby 56 The Young Entrepreneurs Symposium services and resources to Indigenous and the Okanagan Nation Alliance brings Indigenous youth together with communities who have limited or Salmon Feast. business leaders to foster the skills no access to first responders. We and knowledge needed to be leaders were happy to sponsor one of their FortisBC has focused on developing of tomorrow. This year, FortisBC Indigenous firefighting training positive, collaborative relationships sponsored a young Indigenous woman programs and to share important with B.C.’s Indigenous communities from the Ktunaxa Nation to attend safety information about natural gas, and will continue to strengthen the conference. electricity and appliances. those relationships. We continued our support of programs that teach Indigenous languages such Celebrating culture “There was a sense of hope, unity and pride at the Walk for as Selkirk College’s Elders Program. In 2017, we supported and funded The Ktunaxa elders act as a language Reconciliation. People seemed proud to be active participants in numerous programs and projects resource for Indigenous and non- co-creating a future that is just and that recognizes the value of showcasing traditional Indigenous Indigenous students and staff. They knowledge and culture. diversity and inclusion.” provide valuable language and cultural guidance. The program also helps Among them: the Okanagan Indian Ariana Arguello, FortisBC Conservation & Energy Management create closeness between elders and the Band hunting and gathering camp near Program Specialist younger Ktunaxa generation. Vernon, the Ying’hentzit First Nations Art Gala in Prince George and the annual canoe race at the Stz'uminus Water Festival in Ladysmith.

FortisBC Corporate Report 2017 19 Environmental responsibility

The delivery of new CNG-fuelled buses in the Resort Municipality of Whistler also led to the completion of the third CNG-fuelled conventional bus fleet in British Columbia. Given that emissions from B.C.'s transportation industry account for more than one-third of the province's total GHG emissions, this is yet another step forward.

FortisBC Corporate Report 2017 20 Being part of the solution At FortisBC, we are committed to meeting our customers’ expectations and being part of B.C.’s climate action solutions. We continue to work closely with industry, local governments and communities to help meet their climate action goals. In 2017, we introduced the Climate Action Partners program, which provides senior energy specialists to various cities and regional districts such as Surrey, Kamloops, Victoria and Saanich. Their job is to help increase energy-efficiency initiatives and drive sustainable opportunities.

As well as working with others, we look In 2017, we opened the door of our new Kootenay Operations Centre outside of Castlegar. Here, during an earlier project phase, to ourselves and our facilities, ensuring FortisBC employees take a tour of the LEED-equivalent building and its environment-minded features. we meet our own sustainability goals. Opening its doors in 2017, our new LEED-equivalent Kootenay Operations Our collaboration with Selkirk College Our own fleet team launched an Centre outside of Castlegar and a local engineering firm on a internal idle reduction campaign to “FortisBC embraces incorporates both community and cutting-edge project earned us Clean help reduce FortisBC’s fleet emissions. progressive and sustainable Energy BC’s Operational Excellence Additionally, the fleet earned a silver employee ideas into its design, technologies for the benefit including a green living wall that helps award. Selkirk students use technology rating from E3 Fleet, a Canadian improve indoor air quality. Employees to create real-time, 3D models of our program that monitors the green of all of our customers… New are also piloting a new Zero Waste to Corra Linn Dam, which we then use performance of public and private technologies are becoming Landfill initiative. The centre replaced for future planning. Such teamwork sector fleets. increasingly important in the heritage buildings in South Slocan that helps bridge the gap between education Committed to protecting wildlife and move to be more efficient were no longer energy efficient. and industry. natural habitats, we signed a five-year in our energy usage and Actions speak louder agreement with the province to provide reducing emissions, all while Advancing technology $250,000 per year to B.C.’s Invasive ensuring customers have Mussel Defence program. Zebra and We launched a new pilot program for We continued to develop and quagga mussels pose a significant access to affordable energy businesses that tests groundbreaking diversify our energy offerings. From threat to aquatic environments and choices such as natural gas.” technology, developed by CleanO2 Renewable Natural Gas and natural infrastructure including hydroelectric Carbon Capture Technologies, to save gas for transportation to electric facilities. We also donated to Ducks Jason Wolfe, Director of energy and decrease greenhouse gas vehicle charging stations, we are Unlimited Canada to support the Energy Solutions, FortisBC emissions. The carbon capture units helping to reduce greenhouse gas restoration of the Osoyoos oxbows, help reduce commercial boiler energy emissions in B.C. a sensitive riparian wetland where use while converting carbon dioxide endangered species nest. into soda ash, a usable byproduct.

FortisBC Corporate Report 2017 21 Helping customers save energy

Michael Mazurek, Princeton’s Director of Infrastructure and Parks (left), participates in an energy-efficiency assessment at Town Hall with Perry Feser, a FortisBC Technical Advisor.

FortisBC Corporate Report 2017 22 and other energy-saving upgrades could By offering high-efficiency appliance Stepping up save each family about $96 per year on and equipment rebates and evaluating Notable numbers energy efficiency electricity bills, while the money saved new carbon-reducing technologies, we by the society on purchasing fridges make it easier for customers to choose Approximate number of customers We offer rebates and custom programs can go toward other improvements high efficiency. to help customers reduce their energy like insulation. who pre-qualified for natural gas use at home and work, and to help furnace or boiler rebates in 2017: developers build high-efficiency features into their projects. And Leaders in saving we’re working with governments and To help customers upgrade to industry stakeholders to help develop high-efficiency equipment in their and support the implementation of homes, we provided approximately the BC Energy Step Code, a policy to 6,300 natural gas water heater rebates encourage more high-performance and 6,000 natural gas fireplace rebates. 10,000 homes and buildings in the province. Plus, more than 10,000 natural gas customers pre-qualified for our Approximate number of customers Helping communities furnace and boiler rebates. We also who received appliance maintenance issued approximately 14,000 appliance conserve maintenance rebates to customers. rebates in 2017: This summer, we provided energy In May, we recognized 11 organizations assessments to 233 small businesses for achievement in saving energy at in Princeton, Keremeos, Oliver, Grand the third annual FortisBC Efficiency in Forks, Rossland and Trail, engaging Action Awards. The winners included with local business owners about builders, businesses and public sector Angela Falbo, FortisBC Key Account opportunities to save on natural gas organizations that demonstrated Manager, talks to an attendee at the 14,000 and electricity costs. innovation in improving their energy Co-op Housing Education Conference efficiency. Their collective efforts saved about our rebates and programs for We also reached out to homeowners non-profit housing providers. about 120,000 gigajoules of natural across B.C. at community events in gas, which is the equivalent of taking Victoria, Princeton and Kamloops, approximately 1,200 gasoline-fuelled where we gave out 1,384 free cars off our roads. draftproofing kits containing “UBC has set itself some extremely ambitious climate targets, weatherstripping and outlet gaskets Our innovative technologies team and working with FortisBC to implement demand-side efficiency to people who pledged to save won an Award for Outstanding energy at home. As more than half Achievement in Emerging Tools and measures is a key part of our strategy to achieve our emission of home energy use is for heating, Technologies from the Association of reduction goals.” stopping leaks and drafts is a simple Energy Services Professionals for our David Woodson, Managing Director, Energy and Water Services, UBC way our customers can save energy, condensing make-up air unit pilot. increase comfort and reduce their The pilot field-tested eight units for (2017 FortisBC Efficiency in Action Award winner carbon footprint. two years, and results showed they for Large Commercial Project) used 17 per cent less natural gas than Working with the South Okanagan standard rooftop units. Similkameen Brain Injury Society, we provided 30 residents of its Penticton non-profit housing complex with high-efficiency fridges. The new fridges

FortisBC Corporate Report 2017 23 Looking ahead

“At FortisBC, we put our customers first, and we are pleased to continue providing them with affordable natural gas in the City of Vancouver. We understand that Vancouver residents want to shrink their environmental footprints without impacting affordability.” Roger Dall’Antonia, FortisBC President and CEO, and Mayor Gregor Robertson, City of Vancouver, sign a Memorandum of Understanding.

FortisBC Corporate Report 2017 24 FortisBC provides LNG marine fuelling or bunkering services to B.C.-based LNG-fuelled marine vessels. This was possible through a collaborative approach we took with our marine customers, BC Ferries and Seaspan Ferries.

As we move forward, FortisBC will We remain committed to developing Our gas rates are reviewed every As well, the Ruckles Substation will invest in new energy projects across new methods and markets with the three months with the BC Utilities be rebuilt, older units at the Upper the province that will help make aim of meeting customer expectations Commission. Additionally, 2018 will Bonnington Dam will be refurbished energy choices more affordable where we provide energy that can help mark the first year customers will see and 14 spillway gates will be replaced for our customers while helping to reduce greenhouse gases. This work common natural gas rates following at the Corra Linn Dam. deliver on climate action objectives. includes electric vehicle charging a three-year phase-in period. This We will continue to be proactive in stations and liquefied natural gas means customers will pay the same Next year, several capital projects our collaboration with stakeholders, marine bunkering. for natural gas no matter where they will focus on infrastructure integrity. communities, Indigenous Peoples and live in B.C. We also anticipate our A large portion of capital investment governments at all levels. Serving customers well regulatory process for how our natural will go to the upgrade of natural gas gas rates are designed to conclude in infrastructure in the Lower Mainland A low-carbon Throughout 2017, we consulted with 2018. As always, we will continue to and throughout the Interior. This will customers to determine how they work hard to keep rates equitable for contribute to our goal of a system that energy future will be billed for their electricity our customers. continues to operate safely, reliably and usage. The results helped shape the responsibly—well into the future. FortisBC and the City of Vancouver application we submitted to the developed a Memorandum of BC Utilities Commission outlining Ensuring reliability Understanding (MOU) that ensures a residential rate design option that We completed a significant number residents and businesses continue would allow for a return to a flat rate of capital investments in electricity to have access to natural gas. The over a five-year period and an option generation, transmission and MOU also outlines how we will for a time-of-use rate. distribution infrastructure to help work together over the next five ensure reliability while keeping costs years to help reduce greenhouse gas As of January 2018, rates for the down. In 2018, we will see additional emissions in the City while increasing majority of natural gas customers engineering planning and work investment in energy efficiency and province-wide will decrease overall on our transmission system in the renewable energy. while electricity rates remain the same. Kootenay region.

FortisBC Corporate Report 2017 25 Leadership team

L to R: Ian Lorimer, Roger Dall’Antonia, Doyle Sam, Diane Roy; seated: Douglas Stout, Cynthia Des Brisay, Dennis Swanson and Jody Drope.

FortisBC Corporate Report 2017 26 Roger Dall’Antonia Jody Drope Diane Roy Douglas Stout President and CEO Vice President, Human Resources and Vice President, Regulatory Affairs Vice President, Market Development Mr. Dall’Antonia is President and CEO of the Environment, Health and Safety Ms. Roy has 14 years of experience with & External Relations FortisBC group of companies. Prior to this, he Ms. Drope has spent her career working in FortisBC and its predecessor companies, Mr. Stout joined the company in 2001 as Vice held the position of EVP, Customer Service Human Resources and occupational health holding leadership roles including Director, President, Gas Supply and Transmission. He and Technology at FortisBC. Mr. Dall’Antonia and safety. Her career has included work Regulatory Services, Manager, Regulatory has held senior executive roles with Belkorp holds over 20 years of experience in the in provincial and municipal government, Strategy and Business Analysis, Manager Industries Inc. and Husky Energy Inc., and energy industry and joined FortisBC in 2004. health care and post-secondary education. Financial and Regulatory Reporting. has served as Director for Sultran Ltd., Pacific He has been trusted in many executive level Ms. Drope joined FortisBC in 2008. In her Previously, she held finance roles with Coast Terminals and Hillsborough Resources. leadership roles, including finance, strategic current role, Ms. Drope is responsible for the Overwaitea Food Group, TELUS and He is past Chair of the Canadian Natural planning, regulatory affairs, and most fleet services, human resources, labour Deloitte & Touche. Ms. Roy holds a Bachelor Gas Vehicle Alliance, past Director of the recently, customer service, energy solutions, relations and talent development. In of Commerce degree from the University Northwest Gas Association and a current information systems, business innovation, addition, Ms. Drope champions environment, of British Columbia and is a Chartered Director of the BC LNG Alliance. and conservation and energy management. sustainability and safety for FortisBC. Professional Accountant. Past senior financial roles include positions Dennis Swanson with Westcoast Energy and Versacold Ian Lorimer Doyle Sam Vice President, Energy Supply & Income Fund. Vice President, Finance and Chief Executive Vice President, Resource Development Financial Officer Operations and Engineering Cynthia Des Brisay Mr. Swanson has more than 20 years of Mr. Lorimer brings 18 years of experience Mr. Sam has worked in the energy industry experience with FortisBC and its predecessor Vice President, Midstream Services in regulated utility finance roles, including since 1989 and for FortisBC and its companies, holding multiple leadership Ms. Des Brisay has worked in the energy Vice President, Finance and Chief Financial predecessors since 2003. He has operated in a roles including Director, Regulatory industry since 1982 and for FortisBC and Officer for FortisAlberta and a Director variety of engineering, planning, operations Affairs, Manager, Corporate Reporting predecessor companies since 1999. Prior role with FortisBC. Previously, he held and senior management roles in both electric and Manager Budgeting and Planning. to joining FortisBC, she held engineering finance roles including Senior Manager at and gas utilities. Prior to his current role, Mr. Swanson was and commercial roles in the upstream oil Smythe Ratcliffe Chartered Accountants in responsible for Legal, Information Services, and gas industry and in independent power Vancouver. Mr. Lorimer holds a Bachelor of Internal Audit and Corporate Services as generation in both Canada and New Zealand. Commerce degree from the University of the Vice President, Corporate Services. Ms. Des Brisay also serves as president of British Columbia, is a Chartered Accountant Mr. Swanson also managed the acquisition of FortisBC Midstream Inc. where she leads and member of the Institutes of Chartered the City of Kelowna’s electrical distribution FortisBC’s Aitken Creek Gas Storage business Accountants of Alberta and British Columbia. assets in 2013. unit. She currently serves on the Executive Committee and Board of Directors of the Northwest Gas Association.

FortisBC Corporate Report 2017 27 Board of directors

Peter Blake Brenda Eaton Mr. Blake (FCPA, FCA) is the CEO of Western One Inc. Prior Ms. Eaton is a corporate director, chairing the Seaterra to this, he held progressive leadership positions at Ritchie Commission and serving on the Boards of Transelec, Bros. Auctioneers, a leading global industrial auctioneer, most Translink and the BC Safety Authority. Previously she served recently as its CEO from 2004 to 2014 and prior thereto as its as Deputy Minister to the Premier of BC. She has been Deputy CFO. He is the Board Chair of West Point Grey Academy and Minister of Finance and Treasury Board; Energy; and Social serves on the Boards of Junior Achievement of BC, Adam’s Services and was CFO of a health authority. Apples Foundation and Nurse Next Door. He is a former director of Ritchie Bros. Auctioneers, British Columbia Institute of Technology Foundation and BC Women’s Hospital Foundation.

Roger Dall’Antonia Ida J. Goodreau Mr. Dall’Antonia is the President and CEO of FortisBC Inc. Ms. Goodreau is the Chair of the Board of Directors of and FortisBC Energy Inc. Prior to this, he held the position of FortisBC Inc. and FortisBC Energy Inc. and is a Corporate Executive Vice President, Customer Service & Technology and Director serving on the Boards of Fortis Inc., Pharmasave he has held continuously progressive operational, financial Drugs International, Genome BC, the Streetohome Foundation and business development executive positions within the and the Canada West Foundation. Previously, Ms. Goodreau Fortis group of companies and its predecessor companies held positions including Adjunct Professor, Sauder School of since 2004. Mr. Dall’Antonia is a member of the Corporate Business, University of British Columbia, President and CEO of Committee of the Western Energy Institute, Customer LifeLabs Medical Laboratory Services, and President and CEO Council of the Canadian Electricity Association, the Canadian of the Vancouver Coastal Health Authority. Gas Association, and the Executive Advisory Council of CS Week. He has also served on the Board of Directors of the Down Syndrome Research Foundation.

Phonse Delaney David G. Hutchens Mr. Delaney is the Executive Vice President, Chief Mr. Hutchens is the Executive Vice President, Western Utility Information Officer of Fortis Inc. Prior to this, he held the Operations, for Fortis Inc. and is the President and CEO of position of President and CEO of FortisAlberta and he has Tucson Electric Power (TEP) and its parent company, UNS held continuously progressive positions within the Fortis Energy Corporation. He has held continuously progressive Inc. group of companies since 1987. He is a member of the positions within TEP, advancing to President in 2011, COO in Association of Professional Engineers and Geoscientists of 2013 and to his current role as TEP’s top executive in 2014. Alberta. He previously served on the Boards of Newfoundland Mr. Hutchens is a member of the Boards of Edison Electric Power, the Canadian Electricity Association and the Western Institute, Western Energy Institute, Southern Arizona Energy Institute. He has also served as a member of the Dean’s Leadership Council, United Way of Tucson and Southern Advisory Council to the Faculty of Engineering and Applied Arizona, the Tucson Conquistadores Foundation, Salpointe Science at Memorial University of Newfoundland. Catholic High School, Sun Corridor Inc. and the University of Arizona Foundation.

FortisBC Corporate Report 2017 28 Tracy Medve Karl W. Smith Ms. Medve is President of KF Aerospace Group of Companies Mr. Smith is Executive Vice President, Chief Financial Officer in Kelowna, B.C., and has had an extensive executive career of Fortis Inc. He has held continuously progressive positions in the Canadian aviation industry. She serves on the boards within the Fortis Inc. group of companies since 1999, most of the Air Transport Association of Canada, the Canadian recently as President and CEO of FortisAlberta. Mr. Smith Association of Defense and Securities Industries, the UBCO serves on the Board of CH Energy Group. He is a member External Community Advisory Council and is a current of the Institute of Chartered Accountants of Newfoundland Member of the Transportation Appeal Tribunal of Canada. and Labrador. She has a law degree from the University of Saskatchewan and an Aviation MBA from Concordia University.

Barry V. Perry Janet P. Woodruff Mr. Perry is the President and CEO of Fortis Inc. Prior to this, Ms. Woodruff (FCPA, FCA) is a Corporate Director and he held the position of Vice President, Finance and Chief former executive with over 30 years of experience in the Financial Officer of Fortis Inc. since 2004. Mr. Perry joined North American energy, transportation and health sectors. the Fortis organization in 2000 as Vice President, Finance and Ms. Woodruff serves as a Director of Keyera Corporation, Chief Financial Officer of Newfoundland Power Inc. He serves Altus Group and Capstone Infrastructure Corporation. on the Boards of Fortis utilities in British Columbia, Alberta, She was previously the acting CEO of the Transportation Arizona and New York. Mr. Perry is a member of the Institute Investment Corporation. of Chartered Accountants of Newfoundland and Labrador.

Christopher F. Scott Mr. Scott is a Corporate Director, Consultant and the past Chief Operating Officer of Osoyoos Indian Band Development Corporation. He also sits on their Board of Advisors. He has extensive business and community interests in the Okanagan Valley and is a past recipient of both the Exporter of the Year award in BC and the Entrepreneur of the Year award for Penticton. He currently serves as an advisor to several First Nations in BC and as a Director of the Lower Nicola Indian Band Development Corporation.

FortisBC Corporate Report 2017 29 Corporate office Suite 1000, 1111 West Georgia Street, Vancouver, British Columbia, V6E 4M3 Business operations 16705 Fraser Highway, Surrey, British Columbia, V4N 0E8 Suite 100, 1975 Springfield Road, Kelowna, British Columbia, V1Y 7V7 fortisbc.com

Printed in Canada by Hemlock Printers Ltd., Burnaby, B.C., a carbon-neutral operation using low-VOC vegetable-based ink to reduce the impact on local air quality. This corporate report is produced on 100 per cent post-consumer recycled paper. FortisBC Inc. and FortisBC Energy Inc. do business as FortisBC. The companies are indirectly wholly owned subsidiaries of Fortis Inc. FortisBC uses the FortisBC name and logo under licence from Fortis Inc. 2017 Corporate Report (17-338 03/2018)