Chief Edward Sangris, Yellowknives Dene First Nation

Chief Ernest Betsina, Yellowknives Dene First Nation

Darrell Beaulieu, CEO, Denendeh Investments Inc. & Director, Northland Utilities

Doug Tenney, Vice President, Northland Utilities

Working Together for

NWT Electricity Customers Presentation to GNWT Standing Committee on

Priorities and Planning, May 28, 2015

Overview

• Our Request

• Who is Northland Utilities

• The Electricity Market in NWT

• Correcting the Record

• The GNWT Option

• A Better Solution

• Next Steps

• Q & A

Our Request

“The development of NWT energy resources is best done in partnership with Aboriginal organizations.” GNWT’s May 2010 Creating a Brighter Future for the Northwest Territories Electricity System.

- Urge Cabinet to stop all actions and plans to expropriate Northland Utilities, including stopping NTPC from participating in Hay River’s process.

- Urge Cabinet to refrain from making decisions about the structure of the electric industry until after the territorial election in November 2015.

- Have Government, the Dene people and Northland Utilities work together to develop solutions that lead to lower sustainable energy costs and power rates.

Northland Utilities Enterprises Ltd.

kms of overhead and underground power line substations and diesel plants employees and their families in Yellowknife, Hay River & Fort Providence

39

years serving customers in Northwest Territories customers in 9 communities

64

11K

$60M

year partnership between Denendeh Investments Inc. & ATCO Dene First Nations, representing 75% of NWT’s Indigenous population percentage of DII ownership in Northlands (MOU signed in 2015)

30

14

27

Northland Utilities investment in NWT system in last 10 years Franchise Fees collected from customers and paid directly to City of Yellowknife and Town of Hay River in 2014 donated to NWT community groups in last 5 years

$300K

5

475

$1.4M

50

The NWT Electrical System

Correcting the Record

Generation Transmission Distribution Administration

and General

The costs to deliver electricity to a customer exist no matter who provides the service. The statement that Northland Utilities

‘marks up’ the purchase of electricity from NTPC is FALSE.

The GNWT Option

Promise lower rates by:

• Expropriating Northland

Utilities

- a process with the GNWT as

a participant is not a

competitive process and does

not create a level playing field.

• Eliminating the

Public Utilities Board

“Is it acceptable (for Northlands) to purchase wholesale power at 9.8 cents (per kilowatt/hour) and resell it at more than triple the price at 34 cents (per kilowatt/hour)?”

Minister Miltenberger November 2014 GNWT Energy Charrette

“Based on figures shared with MLAs by the territorial government, Hawkins says power rates could drop by as much as 10 cents/ kWh if these two entities (Northland Utilities and the Public Utilities Board) were done away with.”

The GNWT Plan Just Doesn’t Add Up!

• Acquiring Northland Utilities assets will cost approximately $180 million dollars.

• There can’t be any real savings on your power bill when you are servicing $180 million of debt

• NWT residents will pay for this acquisition – either on their power bill, tax bill or other increased fees

Putting First Nations Last

Denendeh Investments Incorporated

• Owned by 27 Dene First Nations of

the NWT

• An owner for nearly 30 years

• GNWT option will force the closure of

a successful Aboriginally owned

business

“The development of NWT energy resources is best done in partnership with Aboriginal organizations.” GNWT’s May 2010 Creating a Brighter Future for the Northwest Territories Electricity System.

Investment Priorities

$180 million is $4,000 per man, woman and child

Real Priorities:

Housing

Schools

Healthcare

Support for mental

health and addiction

Roads

‒ Mackenzie Valley Highway

Extension and roads to resources Photos: http://actionplan.gc.ca/en/initiative-section/northern-development

Consumer Protection

“Electricity rates should be established through a transparent public process.” GNWT’s May 2010 Creating a Brighter Future for the Northwest Territories Electricity System.

Eliminating Public Utilities Board will eliminate rate payer protection

• There will be no process to validate rate structures and future increases.

• With no independent oversight the GNWT will be free to co-mingle tax payer and rate payer dollars.

• There will be no incentive for NTPC to become more efficient as they would not be subject to public scrutiny.

Climate for Investment?

The GNWT has been promoting increased investment in a territory that has a “business friendly environment.” What message is sent to the investment community when a company that has provided excellent service to customers in the NWT for nearly 65 years is taken out by the GNWT?

Who would ever want to invest in the NWT again?

NUL Snare Zone

NTPC Snare Zone

NUL Taltson Zone

NTPC Taltson Zone

NUL Thermal Zone

NTPC Thermal Zone

NTPC Norman Wells Zone

$ One Rate $ NWT Thermal

Zone

$ One Rate $ NWT Hydro

Zone GNWT Energy

Averaging Agency

TSP (if desired)

Move from 7 Rate Zones to 2 Rate Zones

Fair and Equitable Rates

A Better Solution

Improved Efficiencies

Northland Utilities

NTPC

NewCo Merged

Company

Operating together will drive efficiencies

A Better Solution

NWT has undeveloped hydro generation potential that could reduce energy costs in NWT and transform Canada’s electric supply

Deze Energy Corporation Taltson Hydro Expansion

New Energy Supply Strategy

A Better Solution

Our Request

“The development of NWT energy resources is best done in

partnership with Aboriginal organizations.” GNWT’s May 2010 Creating a Brighter Future for the Northwest Territories Electricity System.

- Urge Cabinet to stop all actions and plans to expropriate Northland Utilities, including stopping NTPC from participating in Hay River’s process.

- Urge Cabinet to refrain from making decisions about the structure of the electric industry until after the territorial election in November 2015.

- Have Government, the Dene people and Northland Utilities work together to develop solutions that lead to lower sustainable energy costs and power rates.

Questions?

For more information, please contact:

Darrell Beaulieu 867-445-9109 beaulieu@denendeh.ca Doug Tenney 780-996-7882 Doug.tenney@atco.com Chief Edward Sangris 867-873-4307 esangris@ykdene.com