2019 & 2020 Sustainable Electricity Annual Report

Renewal 2021 Renewing our commitments, strategies and infrastructure 2019 & 2020 Sustainable ElectricityTM Annual Report

1 2019 & 2020 Sustainable ElectricityTM Annual Report Electricity Canada

Contents 03

Copyright

04

About this Report

07

About Electricity Canada’s Sustainable ElectricityTM Program

09

Joint Executive Message

10

Letter from the Public Advisory Panel

14

Executive Summary

18

The Five Pillars

19

One: Low-carbon Future

25

Two: Infrastructure Renewal & Modernization

33

Three: Building Relationships

39

Four: Risk-Management Systems

45

Five: Business Excellence

50

Glossary of Key Terms

50

Resources

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Copyright Copyright 2022 by Electricity Canada. All rights reserved.

“Sustainable Electricity” and “Sustainable Electricity Leader” are trademarks of Electricity Canada.

Authorship Electricity Canada, with support from CanSustain Management Solutions Inc. in Winnipeg, has authored this report for the reporting years 2019-2020, published in 2022.

Special Contributors Andrew Hall, President & CEO, Yukon Energy, Chair of Board Committee on Sustainability.

Cara Clairman, Chair, Electricity Canada, Public Advisory Panel.

Francis Bradley, President & CEO, Electricity Canada.

Mike Marsh, President & CEO, SaskPower.

Ray Robinson, President & CEO, Saint John Energy.

Wayne Rude, Chair, Electricity Canada Indigenous Relations Committee.

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About this Report Preface As Canada works to meet emission and GHG targets, electrification of transportation, buildings, and processes will be necessary. Since 2017, Electricity Canada members have increased the immediate and promising initiative of personal-use electric vehicles (EVs), with 84% of members using innovative technology to support electrification of transportation. ‘Green buildings’ means buildings have specific standards for energy use, energy sources and resource

Report Intent The 2019/2020 Sustainable ElectricityTM Annual Report discloses performance data from Electricity Canada members. It provides detail on their operating environment and initiatives that are being implemented in an effort to advance sustainability in the electricity sector, all within five reporting pillars. Electricity Canada’s five reporting pillars represent sustainable aspects that are most relevant to the Canadian electricity sector’s stakeholders and that have the most significant influence on the success of the industry. The five pillars are: 1. Low-carbon Future 2. Infrastructure Renewal and Modernization 3. Building Relationships 4. Risk-Management Systems 5. Business Excellence

recycling, all of which contribute to a low-carbon building system. The Canadian electricity grid has a tremendous opportunity to supply clean electricity for all types of buildings. Technologies for, and access to, electrified industrial and commercial processes are increasing. Electricity Canada members are well positioned to provide reliable and low-cost electrification of some of the most fossil-fuel intensive processes.

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A Focus on Renewal and a Comment on COVID-19 The COVID-19 pandemic has impacted everyone in the world – governments, individuals, businesses and communities alike. Electricity Canada would like to take this moment to publicly thank all of the utility employees across Canada for their dedication in the face of such unprecedented and rapid change. Their commitment to making sure ‘the lights are always on’ in their communities is a testament to our national values and the ideals of what all member utilities strive to be. We also recognize that many of these employees persevered through their own illness with COVID-19, loss of loved ones, disrupted child- or elder-care and home-schooling. As Canadians, we would not be emerging as strongly from the pandemic as we are without the dedication of these individuals.

When Electricity Canada celebrated its 130th anniversary in 2021, we did so with renewal in mind. We wanted to support our member companies and their communities who were healing from a period of prolonged stress, while seizing on opportunities to make innovative and needed improvements. During our anniversary, Electricity Canada also reflected on and celebrated our member utilities’ continued efforts to modernize and maintain focus on many important areas.

These areas included working towards net zero carbon emissions by 2050; the United Nations Sustainable Development Goals regarding Indigenous rights in Canada; improving and enlarging the electricity grid; and modernizing the provincial and territorial energy regulatory frameworks.

Our association embarked on its own renewal, changing our name from the Canadian Electricity Association, to Electricity Canada in early 2022. This name change reflects a new vision for the organization; to be the leading energy voice in Canada as the country moves towards a Net Zero electricity grid by 2035 and a Net Zero economy by 2050.

The prestigious Sustainable Electricity CompanyTM designation has also been redesigned to reflect the new priorities of the organization and to represent progress, movement and the flow of energy. Now re-introduced as the Sustainable Electricity LeaderTM brand, the designation is awarded to Electricity Canada members who demonstrate leadership in building our energy future.

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About Electricity Canada’s Sustainable TM Electricity Program The Sustainable ElectricityTM Program originated from Electricity Canada’s Environmental Commitment and Responsibility Program, which was established in 1997.

The program was created as a formal industry-led sustainability standard to which member companies would strive to reach. Electricity Canada teamed up with sustainability leaders within our member companies to develop the program as a way to address three key goals: integrate sustainability; improve continuously; and, acquire public acceptance and support for utility operations. The third-party-assessed metrics that are holistic in nature and touch on environmental, social, economic, and governance aspects of each member company. The standard is held in high regard and promotes the standardization of the triple bottom line pillars necessary for continued success of the industry. Specific items within the program, that are required by member companies, include demonstrated compliance to the Electricity Canada Sustainable Development-Corporate Responsibility Policy and conformance to an environmental management system that is consistent with ISO 14001.

The program provides a documented and comparable standard of care that gives regulators confidence, reinforces advocacy efforts, demonstrates alignment with international standards, and creates a point of comparison. In addition, the program also creates a platform for members to share tools and experiences with other members and puts the electricity sector on par with other sectors in the country. Participation in the program also signals commitment, ensures focused effort, and gives credit to a utility for their work done. It provides an enterprise wide “how-to”, identifies risks, and supports understanding among all stakeholders.

Electricity Canada also offers members the opportunity to be branded as a Sustainable Electricity LeaderTM. Currently, members are using the brand for media releases and promotions, public and other annual reports including financial reports, Environmental, Social, and Governance (ESG), and sustainability reports. The brand is being featured prominently on company websites and in presentations to stakeholders to showcase sustainability efforts. Being a Sustainable Electricity LeaderTM helps utilities move their ESG agendas forward.

Branded utilities will lead the narrative as the sector supports improvements in regulator, Indigenous, community and customer relationships. These companies will also continue to lay the foundation upon which progress in economic, environmental, and social improvements are made within the sector.

Both Electricity Canada and non-Electricity Canada member companies can apply to become a Sustainable Electricity LeaderTM. Electricity Canada views the brand as a critical tool for the sector and is seeking increased uptake by its members. The more members that achieve this prestigious brand, the better Electricity Canada can fulfil its mandate and support the sector.

We look forward to all utilities becoming a Sustainable Electricity LeaderTM.

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Joint Executive Message On behalf of the members and directors of Electricity Canada, we are pleased to present our 2022 Sustainable ElectricityTM Annual Report. It provides data and commentary on what we believe to be the most impactful and relevant aspects of sustainability within the Canadian electricity industry today.

We also recognize where there is more work to be done. Investors and the public are demanding more disclosure from companies on climate-related risks and impacts. And we must continue to work with Canada’s Indigenous peoples and to support further reconciliation.

It has been over two years since our last official Annual Report in 2019. The COVID-19 pandemic challenged economies, supply chains, and communities across the globe. Whether Canadians were isolating in their homes, relying on healthcare services, or staying digitally connected with loved ones, reliable electricity was essential. As the health crisis made headlines, the electricity sector worked hard to ensure that access to power was never in question.

Despite the work ahead, we are optimistic about the future of electricity. The world is changing quickly, and electricity will be even more central in a rapidly decarbonizing and more connected world.

As the immediate health threat from COVID-19 begins to subside, other challenges have surfaced. Canada has committed to achieving a net zero greenhouse gas-emitting electricity sector by 2035 on the way to a net zero economy by 2050. These targets will require two- to three-times more electricity while also decarbonizing nearly a fifth of its current generation fleet.

Meanwhile, a backlogged supply chain and war in Europe are impacting prices and availability of critical equipment. Maintaining affordability and reliability, while expanding the sector and scaling up new low-carbon technologies such as hydrogen, small modular reactors (SMRs) and others will be challenging.

Though these past two years have been unusual in many ways, our members continued to make progress on their sustainability journeys. Our members managed to continue generating electricity while driving down greenhouse gas emissions and water use in terms of reportable spills. Members continued investing in the communities they serve and rely on, and deployed more innovative solutions to better serve their customers, all while decreasing the duration and frequency of outages.

This year, our organization changed its name from the Canadian Electricity Association to Electricity Canada.

Our new name reflects our optimism and the importance of our industry as we move towards a net zero future with our members and Canadians.

Sincerely, Francis Bradley & Andrew Hall

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Letter from the Public Advisory Panel November 13, 2020 Andrew Hall, Chair, Electricity Canada Board Committee on Sustainability Re: Public Advisory Panel’s Annual Letter Dear Andrew, The members of the Sustainable ElectricityTM Program's Public Advisory Panel are pleased to submit the 2020 Annual Letter of Advice to the Electricity Canada Board Committee on Sustainability and the Board of Directors regarding your members’ sustainability performance during the 2019 reporting year.

This has been an extraordinary year. We recognize that the COVID-19 pandemic has put incredible pressure on member companies as an essential service and that electricity sector workers have been on the front lines keeping Canadians safe and our communities running. As a result of the pandemic, member companies were not able to provide 2019 data to the Electricity Canada and thus we do not have the same data-driven basis for our letter and recommendations. Nevertheless, the Advisory Panel felt it was important to provide a letter recognizing your achievements and putting forward our recommendations based on world events this past year. We look forward to returning to a more data-driven approach next year.

1. GHG Emissions The electricity sector has reduced its GHG emissions by almost 50% over the past 20 years, and emissions in the sector continue to trend downwards. These reductions are particularly important as we see emissions in other sectors, such as oil and gas and transportation, continue to rise. We urge Electricity Canada members to remain committed to keeping carbon emissions down even as demand for electricity rises and as certain assets reach the end of their useful lives. To this end, Electricity Canada’s Board Committee on Sustainability in 2019 introduced a new objective that members establish company-level carbon inventories to better track the industry’s carbon footprint. We look forward to seeing Electricity Canada members make progress on this objective.

Recommendation 1: Member companies, if they haven’t done so already, should establish company-level carbon inventories to better track the industry’s carbon footprint.

2. Climate Risk, Adaptation & Resiliency Last year we recommended that Electricity Canada members should establish real and credible objectives and/or targets to adapt and be more resilient. We were pleased to see Electricity Canada act on this recommendation and, through its Board Committee on Sustainability in 2019, establish an objective on climate change adaptation. As adverse weather events like heat waves, droughts, floods, and wildfires are becoming increasingly severe, Electricity Canada members must do even more to both reduce emissions and to adapt to climate change.

In the face of the increasingly obvious threat of climate change and the urgency for action, we strongly recommend that Electricity Canada make such adaptation plans and carbon inventories mandatory for all Electricity Canada members going forward.

Recommendation 2: Electricity Canada should make adaptation plans and carbon inventories mandatory for all of its members going forward.

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3. Banking and Financial Markets and ESG/Climate Risk This year in the financial sector, we saw an increased focus on sustainability and ESG related issues. It became clear this year that there was more capital getting allocated to projects at a cheaper cost. There have been major companies embracing investments that make commitments to the principles of sustainability. Some notable examples include Blackrock and Brookfield, both having made significant commitments to investing in this area. Some key issues that are getting focus in the financial markets are not only lending to “Activity Based” activities but also an increased focus on “Behavioural Based” activities. A lot of work has been done in the Canadian banking sector to assist in developing a North American version of the European taxonomy standards.

All that said, this increased focus among financial stakeholders will financially benefit members who focus on further refining and developing their sustainability practices. Further, as commercial banks, institutional investors, and other members of the financial community increasingly recognize the risk climate change poses to the economy, members should consider the implications of climate-related risks and opportunities in relation to their own business. To this end, we recommend that members work towards identifying and disclosing climate information in accordance with the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD) recommendations, which are quickly becoming the global standard for climate.

Recommendation 3: Member companies should work towards identifying and disclosing climate information in accordance with the Financial Stability Board’s TCFD recommendations.

4. Diversity, Equity & Inclusion This past year has been marked by social movements that challenge injustice and seek to empower systemically disenfranchised people, both in Canada and beyond. Anyone involved in workforce management has felt the impact of movements like Idle No More, #MeToo and Black Lives Matter. We see that many Electricity Canada members have acknowledged the work that needs to be done and support the values of Diversity Equity and Inclusion (DEI). Many of the Electricity Canada members, and Electricity Canada itself, have signed on to Equal by 30 and EHRC’s Leadership Accord on Gender Diversity (which itself includes a benchmarking exercise, the collection of metrics and an evaluation of diversity initiatives). However, despite good intentions, the challenges of inequity remain and the representation of women, Indigenous peoples, youth, and visible minorities, among other groups, is far lower than it should be.

The panel strongly recommends that members prioritize, embed, and broaden their DEI initiatives to create work environments and organizational cultures that are supportive of diverse talent. One emerging opportunity is that diverse groups of young people are excited about careers that contribute to the energy transition. Electricity Canada members should harness this momentum to work to diversify their staff and opportunities for innovation. This will require organizations to establish clear metrics, related to both hiring and retention, to measure progress over time and create accountability – elevating DEI to the same status as other business priorities such as productivity and safety.

Recommendation 4: Member companies should prioritize, embed, and broaden their DEI initiatives to create work environments and organizational cultures that are supportive of diverse talent and establish clear metrics related to both hiring and retention. In addition, there should be accountability by senior leaders to track progress.

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Letter from the Public Advisory Panel

5. Indigenous Reconciliation Canada’s employers must include a commitment to increasing Indigenous employment and business opportunities in Canada’s energy transition. This will support Indigenous economic participation and improve Indigenous energy autonomy through involvement in the planning, execution and maintenance of any infrastructure projects.

The three things cited most frequently by Indigenous populations for lower workforce participation rates are: lack of available jobs; lack of education and training; and, lack of prior work experience. In order to invest effectively, it’s important that any strategy starts by engaging local communities to understand which skills are needed to support that transition and respond to this by ensuring that training is made available so that Indigenous employees have opportunities for advancement. Electricity Canada members should be striving to work with Indigenous peoples at all levels, from recruitment, retention, and advancement of entry-level staff with the goal of achieving Indigenous representation at the executive and board levels. Electricity Canada members should also be striving to allocate contracts to qualified Indigenous businesses. Electricity Canada members should monitor and evaluate progress to share best practices and success.

Recommendation 5: Electricity Canada members should strive to work with Indigenous peoples at all levels, from recruitment, retention, and advancement of entry-level staff with the goal of achieving Indigenous representation at the executive and board levels and should monitor and evaluate progress toward this goal.

6. Biodiversity Loss As we noted last year, declining biodiversity has reached crisis proportions with numerous reports released in the last few years pointing to massive die-offs and extinctions of species expected in the next decade and beyond. We acknowledged that member companies have made some progress but much more needs to be done at a time when biodiversity is under extreme pressure from a combination of habitat loss, extreme weather events and climate change more generally.

We noted that many member companies have large land holdings and therefore have an excellent opportunity to make a positive contribution to Canada’s biodiversity. Electricity Canada and members should earnestly work on a comprehensive framework or guidance

document for the industry to further protect and enhance biodiversity. Not a lot of progress was made on this issue in 2019 and so we recommend that biodiversity loss be made a higher priority in future.

Recommendation 6: Electricity Canada should work on a comprehensive framework or guidance document for the industry to further protect and enhance biodiversity, ultimately to be implemented by the members.

7. Electrification of Transportation, Buildings & Industry The Government of Canada has committed to exceeding its 2030 climate targets and achieving Net-Zero emissions by 2050. Reaching these goals will require large-scale electrification of buildings, transportation, and industry. The electricity sector has a significant opportunity to help decarbonize these other sectors. We were pleased to see Electricity Canada partner with other industry associations to collectively address and push for electrification in summer, 2020.

Even more recently, Electricity Canada and members released a “Call to Action” on meeting Canada’s 2050 decarbonization goals.

This is a good first step; however, we hope/would like to see more defined targets/objectives/tactics for how Electricity Canada and its members intend to advance the country’s goal. Electricity Canada and its member companies can, and should, seize this opportunity to play a leadership role in setting Canada on a course to Net-Zero emissions by 2050. Particularly in the context of the coronavirus pandemic—where countries around the world are investing in a “clean recovery” and the Speech from the Throne emphasized opportunities in energy-efficient buildings, electric transportation, and zero-emission manufacturing – the electricity sector will play a foundational role in the trajectory of Canada’s future economic growth. We strongly recommend that both Electricity Canada and its member companies develop bold goals for the sector and see electrified transportation as a strategic place to start given the Federal government’s targets that all new car sales be zero-emission vehicles (ZEV) by 2035 (with interim sales goals of 10% by 2025 and 30% by 2030).

Recommendation 7: Electricity Canada and its member companies should develop bold goals for the sector relating to electrified transportation aligned with the Federal government’s targets.

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Letter from the Public Advisory Panel

8. Information Sharing and Collaboration

Conclusion

Last year, we requested the opportunity to draw on the expertise of some of the member companies’ staff to help us with our deliberations.

We had that opportunity at our spring 2019 meeting and found it to be enlightening and useful in the development of this year’s letter. This is a practice we would recommend be normalized for the operation of the Panel going forward. Such a meeting unfortunately did not take place in 2020. We discussed this issue with Electricity Canada staff and Electricity Canada has committed to facilitating a virtual workshop for the Advisory Panel along these lines in the first quarter of 2021, with input from the panel on topics to be covered.

We know that this year has been unlike any other and that priorities have had to shift. However, the issues highlighted in this letter will continue to be important to the future of the sector as Canada embarks on its clean and more resilient economic recovery. We look forward to engaging on these issues in the future.

Recommendation 8: Electricity Canada should plan a virtual workshop for the advisory panel in Q1 of 2021 in the spirit of information sharing and collaboration.

Sincerely,

Cara Clairman Chair, Public Advisory Panel

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Executive Summary The global pandemic disrupted many industries in the year 2020. Electricity Canada decided to forego the 2019 reporting year, to keep their members focused on their resiliency to deliver safe and reliable electricity to all their customers and on keeping their employees safe. To ensure that all data is captured, this report will cover both 2019 and 2020 reporting years.

Performance highlights have been provided below to capture annual changes amongst the respective categories: Electricity Generation, Low-carbon Future, Relationship Building, Risk-Management Systems, Infrastructure Renewal & Modernization, and Business Excellence.

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Executive Summary

Performance Highlights Electricity Generated Net Generation by Fuel Type (gigawatt-hours)

2018

2019

2020

Annual Change

51, 543

42, 249

39, 553

-6%

544

150

287

92%

31, 880

31, 880

32, 066

1%

1, 662

1, 550

1, 274

-18%

Total Fossil

91, 685

75, 829

73, 181

-3%

Hydroelectric

295, 014

337, 424

336, 899

0%

Nuclear

69, 257

71, 369

69, 585

-3%

7, 442

6, 544

8, 720

33%

Total Non-fossil

371, 712

415, 337

415, 204

0%

Total Net Generation

463, 397

491, 166

488, 385

-1%

Coal

Diesel

Natural Gas

Oil

Renewables (biomass, wind, solar, tidal, biofuel, other)

The figures above are absolute measures. They can be impacted by Electricity Canada membership changes from year-to-year, in addition to changes in divestments and acquisitions on the part of members.

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Executive Summary

Low-carbon Future

Electricity Canada Member Carbon Emissions – Absolute (total carbon equivalent emissions from operations, Mt) Energy Savings – Internal Programs (MWh/year) Energy Savings – External/Customer Programs (MWh/year)

2018

2019

2020

Annual Change

67.9

54.0

51.8

-4%

211, 814

227, 104

22, 162

-90%

5, 615, 641

6, 414, 208

1, 865, 323

-71%

Building Relationships 2018

2019

2020

Annual Change

Members That Have Formal Stakeholder Engagement Policy

84%

93%

100%

7%

Value of Formal Relationships with Indigenous Communities ($MM)

1, 124

1, 135

807

-29%

Members That Provide Help for Low-income Customers

42%

52%

55%

6%

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Executive Summary

Risk-Management Systems 2018

2019

2020

Annual Change

NOx Emissions – Intensity (tonnes/net generation)

1.26

1.27

1.21

5%

SO2 Emissions – Intensity (tonnes/net generation)

2.39

2.22

2.27

2%

0.006

0.007

0.006

-7%

213

423

273

-35%

Mercury Emissions – Intensity (kg/net generation) Number of Priority Spills

Infrastructure Renewal & Modernization 2018

2019

2020

Annual Change

Total Infrastructure ($B)

13.6

13.28

13.73

3%

Reliability – SAIDI (outage duration)

8.46

8.38

5.33

-36%

Reliability – SAIFI (outage frequency)

2.84

2.65

2.38

-10%

Business Excellence 2018

2019

2020

Annual Change

Total Employee Compensation ($B)

7.77

8.53

6.63

-22%

Innovative Tech – Members that Deploy Energy Storage

60%

69%

68%

-2%

Innovative Tech – Members that Deploy Electrification

60%

69%

84%

22%

Female Representation on Boards of Directors

33%

33%

34%

2%

“Our 2021 focus on a net zero future has created a clear line-of-sight for the organization.”

Francis Bradley, President & CEO, Electricity Canada

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The Five Pillars

One: Low-carbon Future A low-carbon future will result in a significant decrease in emissions, with the goal of being net zero economy wide by 2050. “Our 2021 focus on a net zero future has created a clear line-of-sight for the organization,” says Electricity Canada President & CEO, Francis Bradley.

The Canadian electricity sector is not only surpassing the federal commitment to reduce carbon emissions by 40-45% by 2030, but is on the right path to achieve Net Zero by 2050. Already in 2018, 82% of electricity was generated by non-GHG emitting sources in Canada (Government of Canada, 2020).

Electricity Canada members are continuously making new investments in non-emitting or low-emitting fuel sources such as wind, nuclear, biomass, tidal, biofuel, and solar. In 2019 and 2020, there was total net generation of 415,337 GWh and 415,204 GWh, respectively, for non-fossil energy sources. As seen in Figure 1, hydroelectric generation is the greatest source of electricity, compared to the other fuel sources, in Canada.

Figure 1: Graph demonstrating the net-generation of electricity by fuel type for 2019 and 2020.

Climate Change Management and Mitigation Even during a time of public health and economic uncertainty, climate change dialogue at national and international levels has only increased. Canadians are expecting a low-carbon electricity grid. In response, the Canadian electricity sector continues to work hard to lower GHG emissions each year. The total carbon dioxide equivalent (CO2e) emissions from Electricity Canada members decreased from 67.9Mt in 2018, to 51.8Mt in 2020. The net-generation of electricity from renewable sources has increased 33% from 2019 to 2020, with a total of 8,720 gigawatt-hours generated in 2020. A few companies in the Canadian electricity sector have had CO2 or CO2e emissions targets for many years. With renewal in mind, Electricity Canada is committed to supporting all member companies to set or renew ambitious climate and emission goals.

20 2019 & 2020 Sustainable ElectricityTM Annual Report Electricity Canada

The Five Pillars One: Low-carbon Future

Internal Energy Efficiency and Customer Conservation Programs Electricity Canada members have long focused on energy efficiency and conservation as key activities to support a low-carbon future, and as a means to support the low rates that Canadian have come to expect. Many Electricity Canada members have customer conservation programs that are devoted to educating their customers on how to conserve energy in their homes and workplaces to lower energy costs and greenhouse gas emissions. The total annual energy saved through external energy conservation programs was 6,414,208.24 MWh in 2019. Savings of 227,104.35 MWh/year were through internal conservation programs in 2019, as seen in Figure 2. Further, 45% of Electricity Canada members have internal energy efficiency conservation programs, compared to 40% in 2017.

The annual change in energy savings from 2019 to 2020 has, for both the internal and external programs, been, greater than 70% as seen in Figure 3.

Figure 2: Total Energy Savings from Electricity Canada members, for the years 2019 and 2020.

Figure 3: The annual change in Energy Savings for the years 2019 to 2020 for internal and external energy saving programs from Electricity Canada members.

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The Five Pillars One: Low-carbon Future

Electrification of Transportation, Buildings, and Processes As Canada works to meet emission and GHG targets, electrification of transportation, buildings, and processes will be necessary. Since 2017, Electricity Canada members have increased the immediate and promising initiative of personal-use electric vehicles (EVs), with 84% of members using innovative technology to support electrification of transportation. ‘Green buildings’ means buildings have specific standards for energy use, energy sources and resource recycling, all of which contribute to a low-carbon building system. The Canadian electricity grid has a tremendous opportunity to supply clean electricity for all types of buildings. Technologies for, and access to, electrified industrial and commercial processes are increasing.

Electricity Canada members are well positioned to provide reliable and low-cost electrification of some of the most fossil-fuel intensive processes.

Areas of Improvement Climate change is a defining theme for electricity companies in Canada. Continuing to aggressively reduce GHG emissions will require better understanding of the emissions within the supply chain. In addition, investors’ and stakeholders’ expectations around GHG emissions transparency is evolving. The Sustainable ElectricityTM Program should consider how to incorporate external GHG emissions in its reporting, for instance, by including Scope 2 and/or Scope 3 emissions.

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The Five Pillars One: Low-carbon Future

Member Testimonies/Success Stories on New Initiatives for a Low-carbon Future

Capital Power Corporation

FortisAlberta

Repowering

Wildfire

In December 2020, Capital Power announced it will convert all three units at its flagship Genesee Generating Station from coal-fired power generation to natural gas, repowering two of the units to natural gas combined cycle (NGCC) technology and one unit burning gas in the coal boiler under coal-to-gas (CtG) configuration. The Genesee 1 and 2 repowering will use hydrogen-ready, best-in-class NGCC technology, positioning them to be the most efficient NGCC units in Canada when completed. The repowering of the two units, combined with converting the third unit to burn only natural gas, will accelerate Capital Power’s ability to be off coal in 2023 – six years early – and directly deliver 3.4 megatonnes of annual carbon emission reductions at the site.

Alberta’s weather conditions and high winds can contribute to elevated levels of risk for wildfires. In 2020, FortisAlberta developed a Wildfire Mitigation Plan, which builds upon existing wildfire mitigation programs and enhances the company’s wildfire mitigation strategy.

The key components within the plan include situational awareness, operational practices, and wildfire ignition risk reduction. A wildfire risk analysis was initiated for the entire distribution system as part of this strategy. The objective of this analysis was to identify highrisk fire areas, provide the means to rank the ignition point risk, and incorporate the data into the company’s mapping database. This data provides a solid foundation for FortisAlberta to enable strategic enhancements to its wildfire mitigation strategy and prioritize planned maintenance activities.

Photo: Genesee Repowering Diagram – Capital Power Corporation.

Photo: FortisAlberta wildfire.

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The Five Pillars One: Low-carbon Future

Hydro-Québec

BC Hydro

The Hilo Smart Home

Improving Fleet Fuel Efficiency

Hilo, a Hydro-Québec subsidiary specializing in new energy services, launched its smart home service in 2020. This new service allows the population of Quebec to easily optimize their energy consumption and save money on their electricity bill all year long. During winter, customers are invited to participate in Hilo challenges, which involves changing their consumption during peak periods in order to take pressure off the grid. In exchange, they are eligible to receive cash rewards.

BC Hydro’s vehicle fleet includes more than 2,800 vehicles. It is improving fleet fuel efficiency by regularly replacing end-of-life vehicles with newer, more efficient models and performing regular maintenance.

During 2019, gasoline consumption from light-duty vehicles (cars) and trucks decreased to 2,322,321 litres from 2,475,987 litres in 2018. This is a savings in light-duty vehicle and truck gasoline fuel consumption of 153,666 litres, or 6.2%.

Customers simply choose a Hilo smart home bundle that includes the number of thermostats they need, as well as a selection of connected devices (outlets, dimmers and switches), to which they can also add other smart devices. Through the mobile application, they can control and program their smart devices, see their consumption data and create scenes (which involves configuring various devices to activate at specific times, for example by creating a scene called “Leaving the house” or “Vacation”).

The reduction was achieved by incorporating more hybrid and electric vehicles into the vehicle fleet as part of a cost-effective regular vehicle replacement practice, based on operating requirements and vehicle capabilities and capacities. In 2019, 100% of BC Hydro’s light-duty vehicles were green and consisted of 58% electric; 35% hybrid and 7% plug-in hybrid vehicles. In addition, the light-duty truck segment increased to 15% green vehicles (including hybrid SUVs). BC Hydro is currently piloting hydraulic hybrid vehicles of the heavy-duty segment.

In the equipment category, 18% of forklifts are electric.

This smart home service is now available across more than 90% of the territory of Quebec. Additionally, Hilo will launch a service offering to the owners and managers of commercial buildings in the spring of 2022.

Photo: Hydro-Québec

Photo: BC Hydro Hybrid Hydraulic Bucket Truck – Vehicle has a traditional diesel engine but uses an electric PTO.

There is opportunity and, increasingly, a need, to make significant investment in upgrades.

Renewing the system will provide clean, safe and reliable energy while creating new jobs and clean economic growth.

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The Five Pillars

Two: Infrastructure Renewal & Modernization Electricity Canada is a strong proponent for conditions that allow member investment in renewal and modernization of electricity infrastructure. These investments will help manage the expected increase in electricity demand in the coming years. Most of the capacity of Canada’s current electricity system was built in the 1970s and 1980s. There is opportunity and, increasingly, a need, to make significant investment in upgrades. Renewing the system will provide clean, safe and reliable energy while creating new jobs and clean economic growth.

Electricity Canada considers electrification of these communities necessary because there is currently a lack of access to safe and reliable power. Connection to the grid will reduce community dependency on expensive and carbon-intensive diesel fuel to meet basic needs. Electricity Canada strongly advocates for national planning that will make sure no Canadian is left behind in the renewal of our electricity system and that the system be a driver of a cleaner, more prosperous future.

Investments in New and Refurbished Infrastructure

Electricity Canada proposes a national infrastructure renewal plan that encourages stakeholder engagement practices such that projects receive political and public acceptance, encourages efficient and proportional reviews of applications, facilitates strong collaboration between government bodies and utilities, and acknowledges the long-term planning required for large-scale infrastructure investments. Electricity Canada also proposes a strategy be developed to electrify Canada’s northern and remote communities.

Figure 4: Investments from Electricity Canada members on new and refurbished infrastructure for 2019 and 2020.

In 2019 and 2020 the total expenditures on new and refurbished generation infrastructure were $6.12 B and $5.64 B, respectively. The total capital expenditures on new and refurbished transmission infrastructure and distribution infrastructure, were $4.14 billion and $4.02 billion respectively for the year 2019. In the unprecedented year of 2020, these investments dropped to $3.95 billion and $3.91 billion respectively, as seen in Figure 4.

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The Five Pillars Two: Infrastructure Renewal and Modernization

System Reliability and Resiliency Against Severe Weather Impacts Since the COVID-19 pandemic began, the electricity sector has been through many adverse and challenging situations. Despite the uniqueness of the situation, or perhaps because of it, the system average interruption frequency was 2.34 times per year in 2019, and 2.38 times per year in 2020, excluding significant weather events. These numbers are the lowest they have ever been, highlighting the hard work from all energy sector employees during such a challenging period.

Areas of Improvement As of the time of this writing, there are less than 28 years until 2050 and electricity demand is expected to double in that time. The Sustainable ElectricityTM Program could consider how to track progress towards doubling low- and zero-carbon electricity generation, transmission and distribution to meet expected demand.

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Member Testimonies/Success Stories on Infrastructure Renewal and Modernization Initiatives

AltaLink Rebuild in Banff National Park Planning to rebuild an aging single circuit line within the UNESCO World Heritage Site began back in 2009. The 69 kV radial transmission line, called 551L, is 57 kilometres long and runs through highly sensitive ecological regions within Banff National Park (BNP), between two of Canada’s most iconic locations. The line provides power to a host of world-class tourist amenities that service more than four million visitors per year, so preserving the public visitor experience and the natural aesthetics along the Bow Valley Parkway were important considerations in the planning of the project.

Working with Parks Canada, AltaLink’s team of subject matter experts put together a one-of-a-kind Detailed Impact Analysis (DIA) that identified every environmental constraint along the 450 structure locations on the existing right-of-way with site-specific mitigations proposed for multiple locations. Specialists in wildlife, vegetation, aquatics, and cultural resources all contributed to the development and ultimate approval of the DIA. Given the location within BNP, socio-economic impacts and mitigations, along with a visibility analysis were also included in the comprehensive DIA. As in all ecologically sensitive areas where AltaLink works, the team worked with biological and botanical experts to identify important ecosystem components. Then, using specialized equipment and best management practices, work continued through winter months to minimize the impacts on those ecosystems. Rehabilitating the right-of-way to reflect the ecological integrity of the national park was a major piece of this project and

included collecting, then propagating those seeds in a nursery for up to three years before replanting the seedlings along the right-ofway. This is AltaLink’s largest wildland reclamation project to date.

While the actual work on the right-of-way was underway, a significant back up power generation system had to be put in place at the Lake Louise substation in order to maintain service through the construction period. It was the first time AltaLink had to ask the Alberta Utilities Commission (AUC) for approval of a temporary power source due to the size of generators required.

Construction on the rebuild was successfully completed without any unplanned outages to the Lake Louise area, and reclamation will continue while the seedlings grow.

Photo: Seedlings ready for rehabilitation work on AltaLink’s rebuild of the 551L in Banff National Park.

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FortisBC Growth of EV Charging Stations Infrastructure With an increasing number of electric vehicles (EV) driving around B.C., FortisBC continued to add to the province’s EV charging network, opening 17 new stations across the Southern Interior in 2020. Ensuring EV drivers have access to highway-grade charging infrastructure is important to supporting EV adoption across FortisBC electricity service area and to meet its 30BY30 target. At the end of 2020, FortisBC had a total of 29 EV charging stations across 19 sites. It plans to open 11 more stations in 2021, six of which are high-powered 100 kW stations which allow for even faster EV charging.

Over the years, FortisBC found opportunities to develop and strengthen the relationship with the Osoyoos Indian Band and last July achieved another significant milestone together, by opening the first publicly available EV charging stations in a First Nation community in B.C. Both sites are located on reserve land with one in Oliver and the other in Osoyoos. The stations are strategically placed to give EV drivers a place to charge while travelling through the region, reducing range anxiety and building out a charging network to encourage more British Columbians to make the switch to an EV.

Adapting to the EV market, FortisBC plans to open more high-powered 100 kW charging stations across the Southern Interior. While many EVs on the road today can only charge at 50 kW, next generation EVs can utilize these higher power charging stations. These stations can charge at about twice the rated output as the 50 kW stations and will meet the growing demand of EV drivers. The EV technology continues to evolve and more EVs are coming to the market that can use these 100 kW stations.

Photo: The artwork on the Osoyoos and Oliver EV stations was designed

by Taylor, an Osoyoos Indian Band Youth Council member, and she was recognized for her work at our event, following COVID-19 guidelines, in July.

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Nova Scotia Power Inc.

Oakville Hydro

Damage Prediction Model and Analysis of Weather Forecasts

Mobile Battery Energy Storage

In September 2019, after devastating parts of the Caribbean and brushing the Eastern U.S., Hurricane Dorian made landfall near Halifax with peak gusts of 136 km/h. Impacting more than 425,000 customers, representing over 80% of Nova Scotian households and businesses, it was the most damaging storm in NS Power’s history. Before Dorian’s arrival, NS Power engaged its Event Monitoring Team to track the storm’s progress and develop detailed response scenarios beginning almost two weeks in advance. Using its Damage Prediction Model and analysis of weather forecasts, NS Power was able to understand the potential severity of the event prior to the first outage by estimating the customer and equipment impacts across the province. These advance indicators allowed for substantial pre-event coordination and preparation including securing external contractor crews, pre-staging PLTs and damage assessors, restoration time targets by area, and key communications to customers. This planning was a significant contributor to the safe and effective restoration of 95% of impacted customers within 6 days.

Heartland Generation Ltd. Advanced the Transition of its Generating Fleet from Coal to Natural Gas Heartland has been converting its generating fleet, consisting of 10 facilities in Alberta and B.C. providing 14% of Alberta’s generating capacity, from coal to natural gas since 2015. In 2020 they completed the conversion of one of two units at our Sheerness Generating Station, located in Hanna, Alberta, with the remaining two conversions planned for 2021. Natural gas is up to 60% cleaner than coal, and converting existing facilities not only reduces their carbon footprint, but also extends the life of the facilities and the company’s economic participation in the communities that has Heartland Generation assets.

Oakville Hydro is supporting Quanta Technology’s Ontario Smart Grid Fund demonstration project to design, construct and install a Mobile Battery Energy Storage System (MBESS). It is supported by the Ministry as it aims to identify and explore challenges associated with mobile distributed resources. This will be a 350 kW/300 kWh mobile battery storage equipped with a local Distributed Energy Resource Management System (DERMS), which provides autonomous controls and global optimization algorithms to determine operating constraints.

This mobile battery storage platform will have islanding capability and will integrate back to the utility grid. The battery will typically be located at a municipal substation to provide grid support and leveraging the mobility of the unit to explore additional solutions beyond grid benefits, such as providing emergency back up to critical customer facilities.

This project aligns with Oakville Hydro’s objectives and assists with: 1. Developing energy insights and analysis expertise The Energy Storage System (ESS) can be utilized to analyze alternative operation methods and evaluate them with traditional methods.

The mobility aspect of the ESS allows Oakville Hydro to relocate the battery as system condition changes. The flexibility of relocating the ESS provides the opportunity of exploring and understanding various grid supporting techniques (i.e. injecting reactive power, reducing impact of short-duration events).

2. Evolving the system by focusing on integrated automation and grid control and management capabilities The mobile ESS will be equipped with a Local DERMS that will be integrated with Oakville Hydro Supervisory Control and Data Acquisition (SCADA). This integrated approach will help to evolve Oakville Hydro’s system into a more ‘plug-and-play’ network, providing opportunity for exploring non-fixed assets in a SCADA environment.

3. Developing customer side energy solutions The mobile battery asset may be utilized to create a viable financial case beyond grid benefits for customers. It will encourage customers to collaborate with Oakville Hydro to incorporate energy solutions and participate in programs such as the Global Adjustment program.

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Saint John Energy Tesla Battery Saint John Energy became the first in the world to deploy a Tesla Megapack. The state-of-the-art 1.25 MW/2.5 MWh battery allows the company to manage peak energy in new ways, saving money and curbing carbon emissions along the way.

Saint John Energy had long eyed battery storage as a way to shave peak energy costs, to curb carbon emissions associated with energy generation needed to satisfy peak demands, and to help usher in utility-scale renewable energy solutions for the city.

The Megapack was a key piece of the smart grid they are building for customers – a $13.5 million project unique in Canada for its ambition and the technology deployed.

Developed by Saint John Energy with its partners in innovation, the smart grid leverages artificial intelligence to manage smart energy resources across the distribution system, predicts energy load and manages resources by leveraging advanced SCADA deployment in the control centre.

“The utility has been developing demonstration projects to modernize their electricity grid by using distributed energy resources (DER’s), peak forecasting, and machine learning technology to flatten our peak-load capacity, lowering our emissions in the province.”

– Ray Robinson, President & CEO, Saint John Energy.

The massive 51,000-pound battery, which stores enough electricity to power more than 100 homes for two hours, is the sort of technology that will assist the company in managing the intermittent nature of renewable energy generation, including its wind and solar projects.

“The most important advancement and significant projects in this sector are focused on building strong, respectful, and beneficial relationships with Indigenous peoples and First Nations Communities. Some of the most enduring relationships with First Nations peoples are in the electricity sector.”

Francis Bradley, President & CEO, Electricity Canada

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The Five Pillars

Three: Building Relationships The electricity sector would not be successful without the productive and reciprocal relationships with key stakeholders including customers, local communities, Indigenous peoples, employees, regulators, and suppliers. Over the past few years, we have seen the benefits of maintaining strong relationships with stakeholders. The strength of our relationships has been the key to the swift and effective response of utilities to the abrupt changes in working conditions of our employees, the massive changes in how we can interact with customers, and increased electricity consumption.

One strong and industry-leading example of how the sector seeks improvement is through our efforts with Indigenous peoples. Electricity Canada has developed an Indigenous Relations Pilot Project in line

with the United Nations Sustainable Development Goals (UNSDG) and indicators. The purpose of the project is to assess the industry’s overall adherence to the national principles for engaging Indigenous peoples, and to establish a path for continuous improvement. The proposed indicators create a platform for members to expand and improve through assessing data reporting gaps, addressing terminology and definitions, and considering the feasibility of publicly reporting on these indicators in subsequent years. Electricity Canada understands the importance of building respectful relationships with Indigenous peoples, and the importance of obtaining affordable and clean energy for all, as described in Goal 7 of the UNSDG (UN, 2021).

Early Engagement and Consultation with Local Communities, Stakeholders, and Indigenous Peoples Since 2017, Electricity Canada has made increasing efforts to play a role in the advancement of reconciliation between Indigenous peoples and Canada, especially in the electricity sector. “The most important advancement and significant projects in this sector are focused on building strong, respectful, and beneficial relationships with Indigenous peoples and First Nations Communities. Some of the most enduring relationships with First Nations peoples are in the electricity sector.”

– Francis Bradley, President & CEO, Electricity Canada

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Electricity Canada’s principles for Engagement of Indigenous peoples are: • • • • •

Respecting Indigenous culture, traditional values, and rights; Nurturing constructive relationships; Enhancing communications; Fostering Indigenous capacity building; and, Promoting economic prosperity.

“The direction in the further development in Indigenous relations has been increasing in focus within the Canadian electricity sector these past two years. Electricity Canada has developed National Indigenous Engagement Principles, where Electricity Canada has been a tremendous leader and facilitator to its members to respect these principles throughout the sector.” – Wayne Rude, Chair, Electricity Canada Indigenous Relations Committee.

In 2020, 100% of Electricity Canada members had formal stakeholder engagement policies and processes for identifying stakeholder concerns. In 2019, the economic value of formalized relationships with Indigenous

Figure 5: The value of formal relationships with Indigenous communities from Electricity Canada members in the years 2018, 2019, and 2020 ($MM).

communities was at its record high of $1,135M, as seen in Figure 5. Figure 6 shows the percentage of members that have formally identified local Indigenous groups within their service area.

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The Five Pillars Three: Building Relationships

Figure 6: Percentage of members that have formally identified local Indigenous groups within service area.

Enhancement of the Customer Experience

that all Canadians have access to safe and reliable electricity, no matter their financial situation. To support low-income customers, 55% of members have voluntary programs that are not mandated by their home province. Further, 32% of these members provide help for low-income customers in response to government requirements.

Electricity Canada has been a leader in the utility sector for 130 years and will continue to lead by understanding our customers’ expectations and taking steps every day to try to meet them. As sector members continue their efforts to successfully renew the electricity grid, customers can be assured that consideration of the triple-bottom line of people, planet and profits are made throughout the industry. Some of these efforts can be seen in the member testimonies below.

Areas of Improvement

Support for Low-Income Customers The COVID-19 pandemic has put an economic strain on many Canadians, challenging some in making their utility payments. Electricity Canada will continue to advocate for, and work with, sector members to ensure

The Sustainable ElectricityTM Program will continue its work to assess the industry’s overall adherence to the national principles for engaging Indigenous peoples, and to establish a path for continuous improvement by completing the Indigenous Relations Pilot Project and implementing the resulting recommendations.

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Member Testimonies/Success Stories on New Initiatives and Activities for Building Relationships ATCO

Northwest Territories Power Corporation

Supporting Indigenous Communities' Energy Independence

Working in Communities During the COVID-19 Pandemic

More than 1,500 km northwest of Fort Chip, the Old Crow solar project in Yukon with the Vuntut Gwitchin First Nation was integrated into the Old Crow microgrid in 2020. Now, the community benefits from approximately 100 days of electricity production from the project in the summer months of each year. While the Vuntut Gwitchin owns the solar panels, ATCO buys the solar energy, feeds it into the grid and redistributes it to the community. It’s a win-win, and a model for collaboration in the utilities sector. There are many other examples of ATCO’s work with Indigenous communities that support their energy independence. ATCO provides turnkey solutions for Montana First Nation to develop a 5-megawatt (MW) solar farm and to the Dene Tha’ First Nation for a 92-kW solar project. It engineered, procured, constructed and commissioned both solar projects, which are now owned and operated by the respective First Nations. Sometimes ATCO’s work with an Indigenous community begins with addressing a specific need and then grows to become something more. Sunchild First Nation engaged ATCO to design and implement a 100-kW solar array on the roof of their school. The renewable project offsets the school’s energy needs and has inspired a new project, starting with a feasibility study for a much larger 2.5-MW solar project that would be installed on the ground. ATCO is also working with several other Indigenous communities to conduct feasibility studies for cleaner energy solutions.

In 2020, NTPC adapted its health and safety management system in compliance with Government of the Northwest Territories’ response to the COVID-19 pandemic. Several safe-work practices were developed in response which include: COVID-19 Prevention and Control; Working in Plants & Communities During a Pandemic; Working at Hydro Sites During Pandemic; and, Working in Offices During Pandemic. In collaboration with communities, a key focus was put on communication prior to any out-of-territories contractors accessing any NTPC site.

This includes getting permission from each non-isolated community before sending any staff.

Yukon Energy Prioritize Relationships with Indigenous Peoples and First Nations Communities “Yukon Energy has always prioritized Indigenous engagement through its project assessment processes. Yukon energy is continuing to prioritize their new and existing relationships with Indigenous peoples and First Nations communities by having more engagement and participation going forward. To follow suit of having more involvement throughout the whole life cycle of the project, Yukon Energy projects it will have full or partial ownership by Indigenous groups, going forward.” – Andrew Hall, President & CEO, Yukon Energy, Chair, Board of Committee on Sustainability, Electricity Canada.

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NB Power Engaging with our First Nations Communities

The Three Pillars are:

NB Power believes in building long-term, mutually beneficial working relationships with surrounding First Nations communities based on a foundation of respect, inclusion and responsiveness. Proactive engagement and consultation with First Nations communities is important to ensure potential adverse impacts to Indigenous rights are understood so that they may be appropriately avoided or mitigated. One effort during 2019/2020 has been around securing additional engagement and consultation agreements with Kopit Lodge representing Elsipogtog First Nation as well as the Peskotomuhkati Nation. Discussions expanded beyond the topics of projects to include information about our operations, strategies and programs.

1. Engagement Focuses on building relationships both internally and externally with First Nations groups and communities. Through relationships established with consultative representatives and consultation agreements, meaningful engagement and consultation occurs.

In addition, NB Power rolled out computer-based training and conducted several other activities to increase awareness and understanding of First Nations cultures among all of our employees.

The First Nations Affairs team developed and follows a strategic approach approved by NB Power’s executive. Based on three interdependent pillars, it is in direct alignment with Call to Action #92 of the Truth and Reconciliation report.

2. Education, Cultural Awareness and Sensitivity Focuses on educating NB Power’s organization on understanding and appreciating the culture of First Nations and improving communication and relationships.

3. Employment Focuses on facilitating employment and capacity building opportunities for First Nations. When possible and practical, it enables members to continue to reside in their home community as well as include community members as (sub)contractors when practical.

“Electricity Canada has been resilient when working with the iron triangle of cybersecurity: banking, telecommunications and electricity. Their resiliency is a foundation to ensure reliable security for all Canadians through all three industries.”

Francis Bradley, President & CEO, Electricity Canada

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The Five Pillars

Four: Risk-Management Systems Risk-management systems are a cornerstone of effective management within all member utilities. The utilities must have systems in place to support identification and mitigation of adverse environmental impacts, implementation of precautionary measures for the health and safety of employees and public members, and integration of physical and cyber-security of managed assets. Sustainable Electricity TM Leaders must ensure adherence to risk-management systems that prioritize climate risk and mitigate greenhouse gas emissions.

Environmental Stewardship Electricity Canada members have lowered their priority emissions each year, reaching their lowest numbers in 2020 with 165.84 tonnes of annual SO2, 88.24 tonnes of annual NOx, and 458.74 kg of annual mercury emissions, as seen in Figure 7.

Figure 7: Total annual priority emissions from Electricity Canada members for the years 2018, 2019, and 2020.

Priority emissions of sulphur oxides, nitrogen oxides, and mercury are associated with conventional coal facilities, which are in the process of being phased out by 2030. These emissions are expected to decrease dramatically in the coming years in comparison to the operational reduction we have been witnessing over the last few years.

Electricity Canada describes a priority spill as a petroleum spill that is over 500 litres, a spill containing PCBs over 1g, or any volume of petroleum based or PCB contaminated substance that enters a water body. There have been 423 priority spills in the 2019 reporting year, and 273 priority spills in 2020.

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Employee, Contractor and Public Health and Safety

Security Management Systems and Standards

There has been increasing focus on the comprehensiveness and completion of incident reporting and data collection from Electricity Canada and its members. There has been an increase in injury/ illness frequency rate in 2019-2020 and the lost time due to injury/ illness has gone up.

Renewal, modernization, decarbonization, and diversification of the electricity sector will bring tremendous social, environmental, and economic benefits to Canadians. It will also reveal opportunities to create new partnerships and new ways to manage cybersecurity risks.

An example of such a partnership is Ontario’s adoption of the Independent Electricity System Operator’s security operations centre which provides accountability for providing cybersecurity-related services.

Electricity Canada is also working to strengthen its partnership with other sectors: “Electricity Canada has been resilient when working with the iron triangle of cybersecurity: banking, telecommunications and electricity. Their resiliency is a foundation to ensure reliable security for all Canadians through all three industries.” – Francis Bradley, President & CEO, Electricity Canada.

Electricity Canada members have increasingly been investing in outreach and education programs for the public that are focused on the safety risks associated with the electricity system, and more specifically, the hydroelectric facilities. Members are dedicated to maintaining rigorous safety management systems and internal standards to keep their employees, contractors, and the public safe.

Areas of Improvement The Sustainable ElectricityTM Program can consider how to better understand and communicate the sector’s ongoing efforts to address Climate resilience, and cyber and physical security challenges.

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Member Testimonies/Success Stories on New and Successful Implementation and Outcomes of Risk-Management Systems Evolugen Helping Mitigate Invasive Species Under Transmission Lines in British-Columbia Employees at the Evolugen Powell River office coordinated with the City of Powell River, BC Hydro and a volunteer group known as ‘BroomBusters’ to mitigate Scotch broom (Cytisus scoparius). Scotch broom is an invasive plant that has become particularly problematic in Powell River throughout the south coast of British Columbia. There are many issues associated with this plant, specifically damaging and potentially displacing native plants as well as limiting the movement of native animals due to its density. Additionally, Scotch broom poses a serious fire hazard risk as expressed by public safety officials in the region.

The City of Powell River Fire Chief, Terry Peters, credited Evolugen and BC Hydro in assisting to mitigate the biggest threat for the spread of wildfire along the community’s power lines. An estimate 5,000 hours or more were spent in mechanically removing and curtailing this very dangerous invasive plant in Powell River and surrounding areas.

Evolugen’s goal is to totally clear the area under our transmission lines of invasive species, with lush, low-growing, native vegetation in order to outcompete the tall vegetation that can interfere with transmission infrastructure.

In addition to removing all the Scotch broom in the first section of the transmission line, Evolugen mowed this area to ground. This was done to start to create a beautiful greenspace in the city considering that the road along the transmission line is already used by the public for walking and bike riding.

It was also anticipated that the low vegetation will discourage illegal dumping along the corridor, where it has historically been used to dump yard waste and garbage. By removing all of the vegetation and cleaning up the discarded materials and removing the invasive species growing from the yard waste dumping, the area is already much more desirable, and the dumping has stopped.

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FortisBC Avian Protection Measures and Osprey Nest Management Program Avian protection measures including migratory bird nest protection and osprey nest relocation programs are incorporated into FortisBC power line and right-of-way construction and maintenance projects.

Various avoidance, reduction and control management tools are implemented to protect migratory birds including bird protection measures, collision mitigation measures and nest management. The Osprey Nest Management Program is implemented when osprey build nests on live power poles; the nest is safely removed and an alternate pole with a suitable nesting platform is provided.

Saint John Energy Storm Preparedness Awareness Storm Preparedness Week, Nov. 1-7, was an opportunity to remind New Brunswickers of the need to be ready in case of an emergency.

The week was recognized by the provincial government and its New Brunswick Emergency Measures Organization (NBEMO) along with partners like NB Power, Saint John Energy and the Canadian Red Cross.

Saint John Energy led a social media campaign with NB Power, NBEMO, Red Cross to share what the public can do to be prepared for winter storms.

The Osprey Nest Management Program, is essential because osprey nest predominently on human infrastructure and interact regularly with FortisBC infrastructure in this manner. FortisBC has a well-established Osprey Nest Prevention and Relocation Procedure and holds a multi-year General Wildlife Permit, under the BC Wildlife Act, in order to appropriately manage osprey interactions with electricity infrastructure for the safety of the osprey as well as FortisBC system.

An Osprey Management Activities report is compiled and provided to the permitting authority every fiveyears, prior to the renewal of the General Wildlife Permit. FortisBC has installed over 70 nest platforms to-date to provide alternative nesting locations. In combination with the installation of nesting deterrents, this has reduced the interactions between osprey and active electricity structure infrastructure, as well as greatly reduced the number of required nest relocations.

The most recent relocation took place in 2016.

To heighten awareness of osprey and the Osprey Management Program, FortisBC installed a camera on a visible nest in the City of Kelowna, B.C. The live-streaming of the nesting Osprey has been a focus of public interest for over a decade. https://www.fortisbc.com/about-us/environment/ osprey-management-program

“As COVID-19 hit Saskatchewan in March of 2020, SaskPower made the transition for 2000 employees to work from home in 4 days, providing them with assets, secure networks, and everything they needed to do their job remotely.”

Mike Marsh, President & CEO, SaskPower

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The Five Pillars

Five: Business Excellence The business excellence of Electricity Canada members is not only captured in financial reporting, but also through their engagement with regulators, supply chain partners, stakeholders, and internal staff. The promotion and recognition of equity, diversity, and inclusion (EDI) is crucial for a company’s talent retention and recruitment. In addition to ensuring member company employee groups represent the communities they are operating in, Electricity Canada member companies have always taken employee needs to heart. Having the capacity to quickly meet employee needs in times of disruption, such as during the COVID-19 pandemic, is the result of continued focus on business excellence and improvement.

“As COVID-19 hit Saskatchewan in March of 2020, SaskPower made the transition for 2000 employees to work from home in 4 days, providing them with assets, secure networks, and everything they needed to do their job remotely.” – Mike Marsh, President & CEO, SaskPower Adaptability and resilience of critical electric infrastructure during the past few years has been noted by many Canadians through Electricity Canada member utilities. The same excellence within Electricity Canada member utilities that enabled such adaptability and

Figure 8: Percentage of participation from Electricity Canada members in the use of innovation and technology advancement for the years 2019 and 2020.

resilience, positions utilities to develop and integrate clean, innovative, commercially viable energy solutions such as green hydrogen, and other biofuels into the growing Canadian electricity grid. Electricity Canada supports Canadian utilities to integrate these types of technologies into their systems whenever possible.

Investments in Innovation and Technology Advancement Canadian utilities have a rich history of research and development and have always been key drivers for investment in transformation of the electricity system.

For many years, Electricity Canada member utilities have increased investment in innovative technologies, as well as implementation of these technologies, as can be seen in Figure 8.

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The Five Pillars Five: Business Excellence

Engagement of Regulators, Supply Chain Partners and Other Stakeholders

Figure 9: People who identify as women in senior positions in 2018, 2019, and 2020. (%).

As member utilities and their communities emerge from the COVID-19 pandemic, Electricity Canada will be engaging with regulators to modernize provincial and territorial energy regulatory frameworks. Electricity Canada is the primary facilitator between Canadian utilities and the federal government in areas concerning regulation of electricity activities. Electricity Canada supports the taxation framework and regulatory standards that are consistent with climate change initiatives, energy transition and diversification.

Employee Recruitment, Training, and Retention Electricity Canada is promoting equity, diversity, and inclusion (EDI) internally and within its member companies. Ensuring that EDI values are embedded in the association will ensure all employees feel safe, included, and respected. These values not only position Electricity Canada as a leading employer, but also serves to support Electricity Canada in attracting the most talented and dedicated employees. Diversity in the workplace has many benefits, but one in particular that is well suited to the theme of this report, is having many different perspectives from which to consider the Canadian electricity sector, specifically future opportunities, challenges, and solutions. The following figure (Figure 9) demonstrates the percentage of women in positions identified as members of the Board of Directors, executives, and first-level management below executives.

Areas of Improvement The Sustainable ElectricityTM Program will consider how to better understand and communicate the sector’s progress towards more inclusive workforces overall (i.e., beyond gender equity). In addition, the Sustainable ElectricityTM Program will consider how to better incorporate supply chain into company sustainability efforts.

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Member Testimonies/Success Stories on Successful Activities and Outcomes for Business Excellence ENMAX

Hydro Ottawa

Crossfield Energy Centre - Hybrid Electric Gas Turbine

Supporting Women Pursuing Non-Traditional Careers

In 2019 ENMAX announced plans for the addition of a new 10 MW, 4.3 MWh lithium ion battery to an existing natural gas turbine at the Crossfield Energy Centre. This innovative solution will enable ENMAX to provide operating reserves without having to burn fuel – resulting in a significant reduction of greenhouse gas (GHG) emissions for the province of Alberta. The project is one of 11 winners in Emissions Reductions Alberta’s Industrial Efficiency Challenge, a funding initiative to support projects that have the potential to significantly reduce greenhouse gas emissions in Alberta.

In order to attract more women to non-traditional careers, such as the trades, Hydro Ottawa, in partnership with Algonquin College, launched its participation in a three-year pilot project - We Saved You a Seat – for the Powerline Technician Diploma Program that it jointly delivers with the College. The We Saved You a Seat program reserves 30% of classroom seats for qualified women in the Science, Technology, Engineering and Math (STEM) based programs including the Powerline Technician Diploma Program. To support these young women as they navigate their career possibilities, the program also provides mentors, four of which are Hydro Ottawa employees. The organization also established the Hydro Ottawa Women in Powerline Award, which is a $2,500 scholarship given to a first-year female student in the Algonquin College/Hydro Ottawa Powerline Technician Diploma Program. The award is presented to a woman who has demonstrated high academic achievement and commitment to her community through volunteer activities in the areas of: education/capacity building, renewable energy, energy efficiency and conservation or health, safety, and wellness. Hydro Ottawa recently awarded this scholarship to its first recipient who is one of three first-year female students in the Powerline Technician Diploma Program.

The knowledge obtained will positively influence the electricity industry. Spinning reserve providers are, by definition, spinning (i.e., online and providing power). If a market participant is displaced from the market, they will capture the next best alternative source of energy (electricity) production. Like a game of musical chairs, the least expensive sources of generation displace more expensive generation. Eventually, the most expensive source of electricity will find itself without a “seat”. As the most expensive source of power currently is coal-fired generation, a hybridized gas turbine entry into the spinning reserve market ultimately means more generation from clean-burning natural gas-fueled plants, and less from coal. This means less CO2 emissions, as well as fast frequency response – critical to grid stability, as traditional inertial based generators are replaced with renewable generation. Lessons learned from this project can be applied to similar future projects across ENMAX's generation fleet and generators globally.

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NB Power

Hydro One

Industry Partners Form Small Modular Reactor Cluster

myEnergy Marketplace

New Brunswick Power (NB Power), Moltex Energy, and Advanced Reactor Concepts, the parent company of ARC Nuclear Canada Inc. (ARC Canada), have signed a Memorandum of Understanding (MOU) to work collaboratively to find synergies by establishing a small modular reactor vendor cluster in New Brunswick. The MOU establishes plans to pursue collaboration in areas such as supply chain development activities, shared technology education and trades initiative, and common research and development activities.

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Since 2018, NB Power has worked with ARC Canada and Moltex Energy to advance stream 2 of the Pan-Canadian small modular reactor (SMR) approach. Stream 2 is Generation IV Grid sized SMR technology. The advanced SMRs are being developed for use in Canada and internationally. The parties are working towards establishing New Brunswick as the hub for supply chain and technical support. Both of these companies are developing complementary technologies and each of their designs offers passive, inherent safety features with both reactors, in different ways, contributing to addressing used nuclear fuel.

Small modular reactors are the next generation of nuclear technology.

The various designs can range from an output of between one and 300 megawatts. With a variety of end applications, the units can be constructed and shipped to locations where they are assembled on-site. Much smaller than traditional nuclear power plants, SMRs are less expensive to mass produce and easier to deploy. Their modular design allows for deployment in large established grids, small grids, remote off-grid communities and as an energy source for resource projects. SMRs provide a source of safe, clean, affordable energy, with the ability to contribute towards a resilient, low-carbon future.

New Brunswick is positioned to advance small modular reactor technology because of its rich academic and scientific community, an existing nuclear site that can accommodate multiple SMRs and the nuclear expertise of the professionals at the Point Lepreau Nuclear Generating Station.

50 2019 & 2020 Sustainable ElectricityTM Annual Report Electricity Canada

Glossary of Key Terms

Resources

All injury/illness rate The number of fatalities, lost-time injuries, and medical treatment injuries per 200,000 employee-hours worked.

Government of Canada (2020) Energy and Greenhouse Gas Emissions. Natural Resources Canada. Retrieved 4/23/2021 from: https://www.nrcan.gc.ca/science-data/ data-analysis/energy-data-analysis/energy-facts/ energy-and-greenhouse-gas-emissions-ghgs/20063#L3

Carbon dioxide equivalent (CO2e) Universal measure of global warming potential for greenhouse gas emissions.

Lost-time injury/illness rate The number of lost-time injuries or illnesses (requiring time away from work) per 200,000 employee-hours worked.

Lost-time injury severity rate The number of days lost due to injuries or illnesses (requiring time away from work) per 200,000 employee-hours worked.

Net generation The total amount of electricity generated, minus the electricity used to operate the generating facility.

Non-emitting generation/sources A means of generating electricity that does not result in direct generation of carbon emissions, which includes sources such as renewables, nuclear, and hydro generation.

Priority emissions Nitrogen oxide (NOx), sulphur dioxide (SO2), and mercury, which are all generated through combustion, have multiple sources, and can have detrimental environmental and health impacts in sufficient concentrations.

Priority spills A petroleum spill of more than 500 litres, to a spill that contains more than one gram of polychlorinated biphenyls (PCBs), and to any volume of petroleum-based or PCBcontaminated substance that enters a water body.

Rate-setting/structures A prescriptive regulatory process by which government agencies, based in part on public and stakeholder input, determine the price that utilities can charge for essential commodities such as electricity.

Renewable energy Is energy from sources that do not rely on a fuel source which there is a finite supply. A primary example is wind and solar energy.

United Nations (2021) The 17 Goals. Retrieved on April 4, 2021 from: https://sdgs.un.org/goals.