Common Voice Common Voice NorthwestNorthwest

Energy Task ForcePresentation to

Port Arthur Rotary Club

Energy Task ForceEnergy Task Force

• Today’s presentation• HISTORY• ENERGY TASK FORCE• QUESTIONS

HistoryHistory

• Ontario Forestry Coalition

• Forging the Future

• NOMA Energy Sub-Committee

• Common Voice Northwest• Series of Task Forces

• Energy – 2007

Energy Task ForceEnergy Task Force

• Membership• Operator of Ontario Hydro for NWO• Operator of an Ontario Nuclear Station• 2 Hydro Utility managers/CEO’s• 1 Retired Hydro Utility manager/energy consultant• Electrical Technician • Economic Development Staff and Board Members• Municipal Elected Officials• NOMA• NOACC/Thunder Bay Chamber• NODN

Energy Task ForceEnergy Task Force

• Supported by:• Ontario Mining Association Energy Committee• Society of Energy Professionals of Ontario• Thunder Bay Community Economic Development

Commission • City of Thunder Bay• Town of Atikokan

Energy Task ForceEnergy Task Force

• Role• Prime Energy Research Body in the Northwest• Inform on key energy issues:

• NOMA• NOACC• City of Thunder Bay• Town of Atikokan

• Advisor to Weiler, Maloney, Nelson (John Cyr) on behalf of the above organizations

Energy Task ForceEnergy Task Force• Active in:

• Integrated Power System Plan – phase 1 and 2• Ontario Energy Board

• IPSP• East West Tie• Reliability Must Run Contract• Micro Embedded Generation initiative• Regional Planning

• Atikokan GS Conversion• TB GS Conversion• Merging of Local Distribution Companies (LDC)• Long Term Energy Plan

The ChallengesThe Challenges• Inadequate Transmission and Distribution

across the Northwest• Failure of Government Agencies to plan for

the needs of the Region• Decisions by the Ontario Government

• Changing of policy from ‘public good’ to ‘business case’• Outlawing burning of coal to create electricity

• December 31, 2014• Suspending the conversion of the TBGS to natural

gas• Lack of understanding of the economic future of the

Northwest and the role that electricity plays

Where the ETF StartedWhere the ETF Started

• Inadequate Transmission and Distribution across the Northwest

10

N.W.O. ELECTRICAL

SYSTEM

RED – TransmissionGREEN - Distribution

DEFICIENCIES & OPPORTUNITIES

Red Lake – Ear Falls

11

•Instability, reliability and lack of capacity in the service to Red Lake

DEFICIENCIES & OPPORTUNITIES

Pickle Lake

•Instability, reliability and lack of capacity in the service to Pickle Lake & Musselwhite Mine

DEFICIENCIES & OPPORTUNITIES

Greenstone Radial Line

Ring of Fire

N.W.O. ELECTRICAL

SYSTEM

OPPORTUNITIES

Entry Points for Remote Communities

DEMANDDEMAND

• MINING• FORESTRY• TRANS-CANADA PIPELINES• ANCILLARY GROWTH

DEMANDDEMAND

• EXISTING (2012)• 710 MW

• MINING• PROJECTED BY ETF• 780 MW by 2020

DEMANDDEMAND

• FORESTRY• PROJECTED BY ETF• 18 MW by 2020

DEMANDDEMAND

• REMOTE COMMUNITIES• PROJECTED BY ETF• 42 MW by 2020

DEMANDDEMAND

• TCPL• PROJECTED BY ETF• 110 MW by 2020• Engineering research may adjust this up or down

DEMANDDEMAND

• TOTAL ETF PROJECTION• 1660 MW by 2020

DEMANDDEMAND

• OPA PROJECTED GROWTH (by 2020)• January 2013

•70 MW growth• May 2013

•690 MW (1000% increase)

DEMANDDEMAND

• Difference between ETF & OPA• January – 990 MW• May – 260 MW

• ETF has done its job to educate the OPA and Government on the Demand

DEMANDDEMAND

• OPA agrees that Demand should be met by supply

• Question is HOW

SUPPLYSUPPLY

OPA Solutions include:• Enhancing the existing East West Tie Line• Renegotiating existing demand response

contracts with Pulp and Paper industry• Getting more power out of existing hydro

dams• Importing power from the west• Conservation

SUPPLYSUPPLY

OPA Solutions DO NOT include:• Converting Thunder Bay Generating

Station to Natural Gas• Too expensive• Not needed for power demand

SUPPLYSUPPLY

• OPA Solutions include:• Enhancing the existing East West Tie Line

• We need the supply from the East to meet energy demands

• City of Thunder Bay, on behalf of ETF (and NOACC and NOMA) was before OEB in support of the concept.

• OEB has selected ‘transmitter’ to plan for the line• A part of the solution for the Northwest’s needs

SUPPLYSUPPLY

OPA Solutions include:Renegotiating existing demand response

contracts with Pulp and Paper industry• 50 MW of reduction• Minimal opportunity to increase

SUPPLYSUPPLY

OPA Solutions include:• Getting more power out of existing hydro

dams• Operators already maximize output• Minimal results based on realities of existing

system• Large part of system run-of-the-river

SUPPLYSUPPLY

OPA Solutions include:Importing power from the west• No power available from Manitoba until

2025 (approx 150 MW)• Minnesota and Wisconsin buy power from

Manitoba (therefore no power to sell)• OPA says they can get power from ‘spot

market’ – translation – they can buy power from coal producing generators in USA

SUPPLYSUPPLY

OPA Solutions include:Conservation• By 2020 78% of the electrical load will be

industrial• A large % of that industrial load will be

new and will take advantage of the most advanced energy efficiency technology

• = minimal savings from conservation

SUPPLYSUPPLYThunder Bay Generating Station• Essential for the Northwest• Essential for Thunder Bay• Essential for the Pulp and Paper Industry

(stability) and the mining industry (supply)• Asset paid for by the rate payers of

Ontario• Jobs retained in Thunder Bay as opposed

to located in western provinces or USA (and paying taxes to Ontario)

RELIABILITY MUST RUN CONTRACT

• OEB has approved a RMR Contract for the Thunder Bay GS for 2013• OEB determined that one 150 MW unit was essential for system stability to meet the needs of Thunder Bay and region• OPG will have to apply for 2014 and beyond• Demand will only increase over time

Long Term Energy PlanLong Term Energy Plan

• Province has asked for input into the next Long Term Energy Plan

• ETF has prepared a submission• Will be seeking endorsation by NOMA,

NOACC and individual municipalities• Deadline is September 16 for comment

Our Ask to GovernmentOur Ask to Government

• Resume conversion of the Thunder Bay Generating Station

• Accelerate the planning and construction of transmission improvements to:• Ear Falls• Red Lake• Pickle Lake

• Plan for Transmission Upgrades to Greenstone

• Create a regional planning body for the Northwest

THANK YOU

QUESTIONS?