Path Forward

State of the Canadian Electricity Industry 2022 Accelerate Net Zero

Theme 4 Time to Accelerate Reconciliation with Indigenous Peoples

Support business partnerships: Governments at all levels should enable business partnership arrangements between electricity companies and Indigenous communities through their policy and regulatory structures. These partnerships would drive economic development, access to clean energy, employment and supply chain opportunities.

Provide funding support: The federal government should partner with electricity companies interested in building infrastructure in remote and northern communities to advance clean energy solutions and achieve Canada’s Net Zero by 2050 target.

Consult industry on the UNDRIP Action Plan process: The federal government should consider establishing industry-specific dialogues on issues that could have implications for industry engagement with Indigenous communities.

OPG’s Action Plan: Key Highlights

• Grow economic impact for Indigenous communities and businesses to $1 billion over the next 10 years, through ongoing operations, projects and initiatives. • Increase the representation of Indigenous employees across all levels and businesses of Ontario Power Generation. • Work with the Indigenous Opportunities Network (ION) to grow the

Indigenous skilled talent pool within Ontario Power Generation and the broader energy industry. • Enhance employee knowledge and understanding of Indigenous issues through the development of an online Reconciliation Knowledge Hub.

State of the Canadian Electricity Industry 2022 Accelerate Net Zero

Theme 4 Time to Accelerate Reconciliation with Indigenous Peoples

The Clock Is Ticking

Canada has pledged to reach ambitious climate change targets. The country has made commitments to achieve Net Zero carbon emissions by 2050 and have a Net Zero electricity grid by 2035. The businesses, organizations and people that make up Canada’s electricity industry will play an essential role in enabling our country to reach these ambitious yet necessary targets.

Accelerate performance Our industry will accelerate its understanding of its performance and therefore its progress in reaching the country’s ambitious climate change targets. This acceleration involves improving industry systems for data collection, measurement and reporting. These systems also will have more robust performance indicators on greenhouse gas emissions, Indigenous engagement and governance.

Accelerate innovation Our industry will accelerate its efforts to gain a clearer picture of changing customer expectations and how customers think about their energy future. Equipped with this knowledge, our industry can then educate consumers and motivate them to adopt new connected technologies, which are essential to create an intelligent, cost-efficient energy system. Accelerate reconciliation Our industry will accelerate business partnerships with Indigenous communities, increase the speed of work with Indigenous and non-Indigenous governments to build clean energy infrastructure in remote communities, and advance cultural awareness among our industry’s executives, managers and employees. These actions will help move our country closer to its climate change targets and further down the path of reconciliation.

Accelerate collaboration Yet our industry cannot and should not act alone. Federal, provincial and territorial governments and regulators need to provide the policy conditions necessary for Canada to meet its ambitious climate change goals. In particular, governments need to create the right investment climate, provide greater clarity on government policies and measures, support low-carbon investment solutions, and expand the mandate of provincial energy regulators to allow for greater expenditure and risk-taking related to technological innovation.

Our industry will continue to collaborate and partner with governments and regulators to achieve these specific goals. As governments, as an industry and as individual organizations within our industry, we have no time to waste in accelerating our performance, innovation, reconciliation and collaboration— the climate is changing, the planet is warming, the clock is ticking.

State of the Canadian Electricity Industry 2022 Accelerate Net Zero

Endnotes

1 Bryce Conrad, “S03 Episode 050: Bryce Conrad and Hydro Ottawa, a Sustainable Electricity Company™”, Interview by Francis

Bradley, The Flux Capacitor, December 15, 2021, https://thefluxcapacitor.ca/episodes/. 2 Ken Hartwick, “S03 Episode 034: Ken Hartwick and a Net Zero 2040 OPG”, Interview by Francis Bradley, The Flux Capacitor,

May 6, 2021, https://thefluxcapacitor.ca/episodes/. 3 Justin Trudeau, “Prime Minister’s remarks delivering Canada’s national statement at the COP26 summit”, Prime Minister of Canada,

November 1, 2021, https://pm.gc.ca/en/news/speeches/2021/11/01/prime-ministers-remarks-delivering-canadas-national-statement-cop26-summit. 4 “Electric power generation, monthly generation by type of electricity”, Statistics Canada, February 7, 2022, https://www150. statcan.gc.ca/t1/tbl1/en/tv.action?pid=2510001501. 5 ”Electricity 101”, Canadian Electricity Association, July 12, 2021, https://knowledge.electricity.ca/publications/electricity-101/. 6 We measure demand differently than capacity. Demand is measured in watts over time (so, a terawatt/hour). Capacity is measured in just energy (megawatts). When running at full tilt, a 1,000 MW plant produces a “megawatt hour” each hour. 7 “Installed plants, annual generating capacity by type of electricity generation”, Statistics Canada, February 8, 2019, https:// www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2510002201. 8 Kate Chisholm, “S03 Episode 035: Kate Chisholm and a Capital Power’s Net Zero Journey”, Interview by Francis Bradley, The

Flux Capacitor, June 11, 2021, https://thefluxcapacitor.ca/episodes/. 9 “Hydro Quebec puts Environmental Management System into action”, International Water Power & Dam Construction, January 12, 1998, https://www.waterpowermagazine.com/news/newshydro-quebec-puts-environmental-management-system-into-action/. 10 “Become a Sustainable Electricity Company”, Canadian Electricity Association, https://electricity.ca/deliver/sustainability/ become-sustainable-electricity-company/. 11 Justin Trudeau, “Mandate Letters”, Prime Minister of Canada, December 16, 2021, https://pm.gc.ca/en/mandate-letters. 12 “International Sustainability Standards Board”, Internal Financial Reporting Standards (IFRS) Foundation, https://www.ifrs.org/ groups/international-sustainability-standards-board/. 13 Tonja Leach, “S03 Episode 043: Tonja Leach, QUEST, and the community engagement imperative to meet Net Zero 2050”,

Interview by Francis Bradley, The Flux Capacitor, August 18, 2021, https://thefluxcapacitor.ca/episodes/. 14 Eva Uguen-Csenge and Bethany Lindsay, “For 3rd straight day, B.C. village smashes record for highest Canadian temperature at 49.6 C”,

CBC News, June 29, 2021, https://www.cbc.ca/news/canada/british-columbia/bc-alberta-heat-wave-heat-dome-temperaturerecords-1.6084203. 15 “OIL (WTI) Commodity”, Markets Insider, https://markets.businessinsider.com/commodities/oil-price?type=wti. 16 “Dutch TTF Natural Gas Calendar (TTF=F)”, Yahoo Finance, https://finance.yahoo.com/quote/TTF%3DF/. 17 Silvia Amaro, “Euro zone inflation rate hits a record 4.9% for November”, CNBC, November 30, 2021, https://www.cnbc. com/2021/11/30/inflation-euro-zone-november-2021.html. 18 Julie Gordon and David Ljunggren, “Canada's annual inflation rate matches 18-year high, set to keep rising”, Reuters, November 17, 2021, https://www.reuters.com/world/americas/canadas-annual-inflation-rate-hits-47-oct-highest-since-feb-2003-2021-11-17/;

“Canada’s annual inflation rate holds steady in November at 4.7%”, Global News, December 15, 2021, https://globalnews.ca/ news/8452356/canada-inflation-november-2021/.

State of the Canadian Electricity Industry 2022 Accelerate Net Zero

19 “Energy Trends: UK renewables”, GOV.UK, https://www.gov.uk/government/statistics/energy-trends-section-6-renewables. 20 Sophie Mellor, “The U.K. went all in on wind power. Here’s what happens when it stops blowing”, Fortune, September 16, 2021, https://fortune.com/2021/09/16/the-u-k-went-all-in-on-wind-power-never-imaging-it-would-one-day-stop-blowing/. 21 Jorge Liboreiro and Alberto de Filippis, “Why Europe's energy prices are soaring and could get much worse”, Euronews, October 28, 2021, https://www.euronews.com/2021/10/28/why-europe-s-energy-prices-are-soaring-and-could-get-much-worse. 22 Aitor Hernández-Morales and America Hernandez, “Europe’s energy freakout”, Politico, November 19, 2021, https://www.politico. eu/article/europe-energy-crisis-pipeline-natural-gas-eu/. 23 Jesper Starn, “European Power Prices for Monday Rise to Record on Cold Snap”, Bloomberg, December 19, 2021, https://www. bloomberg.com/news/articles/2021-12-19/european-power-prices-for-monday-rise-to-record-on-cold-snap. 24 “The first big energy shock of the green era”, The Economist, October 16, 2021, https://www.economist.com/leaders/2021/10/16/ the-first-big-energy-shock-of-the-green-era. 25 “State Profile and Energy Estimates: Texas”, U.S. Energy Information Administration, April 15, 2021, https://www.eia.gov/state/ analysis.php?sid=TX. 26 Joshua W. Busby, Kyri Baker, Morgan D. Bazilian et al., “Cascading risks: Understanding the 2021 winter blackout in Texas”, Energy

Research & Social Science, vol. 77, July 2021, https://www.sciencedirect.com/science/article/pii/S2214629621001997. 27 Jemima McEvoy, “Report Finds Hundreds More Died in Texas Winter Storm Than State Says”, Forbes, May 27, 2021, https:// www.forbes.com/sites/jemimamcevoy/2021/05/27/report-finds-hundreds-more-died-in-texas-winter-storm-than-statesays/?sh=7c1fbf3652cc. 28 “California Solar Energy Statistics and Data”, California Energy Commission, https://ww2.energy.ca.gov/almanac/renewables_data/ solar/index_cms.php. 29 Darrell Proctor, “California Will Add Gas-Fired Units to Increase Power Supply”, Power Magazine, August 20, 2021, https://www. powermag.com/california-will-add-gas-fired-units-to-increase-power-supply/. 30 Kavya Balaraman, “California's last nuclear plant is poised to shut down. What happens next?”, Utility Dive, March 23, 2021, https:// www.utilitydive.com/news/californias-last-nuclear-plant-is-poised-to-shut-down-what-happens-next/596970/. 31 Mark Chediak and Joe Ryan, “California Orders State of Emergency to Avert Blackouts”, Bloomberg, July 30, 2021, https://www. bloomberg.com/news/articles/2021-07-30/california-governor-orders-state-of-emergency-to-avert-blackouts. 32 Kavya Balaraman, “California OKs 'bridge' measures to bolster grid against potential extreme circumstances in 2022, 2023”,

Utility Dive, December 6, 2021, https://www.utilitydive.com/news/california-oks-bridge-measures-to-bolster-grid-against-potential-extreme/610971/. 33 “2021 Comparison of Electricity Prices in Major North American Cities: Rates in effect April 1, 2021”, Hydro-Québec, 3rd quarter 2021, https://www.hydroquebec.com/data/documents-donnees/pdf/comparison-electricity-prices.pdf. 34 John Paul Tasker, “Ottawa to hike federal carbon tax to $170 a tonne by 2030”, CBC News, December 11, 2020, https://www.cbc. ca/news/politics/carbon-tax-hike-new-climate-plan-1.5837709. 35 “Clean Electricity: A Net-Zero Grid By 2035”, Liberal Party of Canada, 2021, https://liberal.ca/climate/clean-electricitya-net-zero-grid-by-2035/. 36 “Canada’s Energy Future: Key Findings”, Canada Energy Regulator, December 8, 2021, https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2021/key-findings.html.

State of the Canadian Electricity Industry 2022 Accelerate Net Zero

37 “Canada’s Energy Future: Key Findings”, Canada Energy Regulator. 38 “Canada’s Energy Future 2021”, Canada Energy Regulator, 2021: p, 10, https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2021/canada-energy-futures-2021.pdf. 39 “North American Renewable Integration Study”, NREL, 2021, https://www.nrel.gov/analysis/naris.html.; “Interconnections Seam

Study”, NREL, https://www.nrel.gov/analysis/seams.html; “A 2030 United States Macro Grid: Unlocking Geographical Diversity to Accomplish Clean Energy Goals”, Breakthrough Energy, January 2021: 68, https://science.breakthroughenergy.org/key-findings/macro-grid; “Canadian National Electrification Assessment: Electrification Opportunities for Canada's Energy Future”,

EPRI, September 2021: 64, https://www.epri.com/research/programs/109396/results/3002021160. 40 Herman K. Trabish, “New York's landmark Reforming the Energy Vision framework remains both vital and unfinished, analysts say”, Utility Dive, December 9, 2021, https://www.utilitydive.com/news/new-yorks-landmark-reforming-the-energy-visionframework-remains-both-vita/610015/. 41 Stephanie Eyocko, Alicia Brown and Dugan Marieb, “Utility of the future? We also need fundamental changes at state regulatory commissions”, Utility Dive, November 15, 2021, https://www.utilitydive.com/news/ utility-of-the-future-we-also-need-fundamental-changes-at-state-regulatory/609860/. 42 Boris Shkuta, Michael W. Brooks, et al., “Electricity Transmission Provisions in the Bipartisan Infrastructure Bill”,

The National Law Review, vol. 11, no. 322, November 2021, https://www.natlawreview.com/article/electricity-transmissionprovisions-bipartisan-infrastructure-bill. 43 Mollie Johnson, “S03 Episode 036: Mollie Johnson and Natural Resources Canada’s Net Zero role”, Interview by Francis Bradley,

The Flux Capacitor, June 28, 2021, https://thefluxcapacitor.ca/episodes/. 44 “Implementing the United Nations Declaration on the Rights of Indigenous Peoples Act”, Department of Justice, December 10, 2021, https://www.justice.gc.ca/eng/declaration/index.html. 45 Courtney Dickson and Bridgette Watson, “Remains of 215 children found buried at former B.C. residential school, First Nation says”, CBC News, May 29, 2021, https://www.cbc.ca/news/canada/british-columbia/tk-eml%C3%BAps-te-secw%C3%A9pe mc-215-children-former-kamloops-indian-residential-school-1.6043778. 46 THE CONSTITUTION ACTS, 1867 to 1982, Rights of the Aboriginal Peoples of Canada, s.35, https://laws-lois.justice.gc.ca/eng/ const/page-13.html. 47 R. v. Sparrow [1990] 1 SCR 1075, https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/609/index.do. 48 Yahey v. British Columbia [2021] BCSC 1287, https://www.bccourts.ca/jdb-txt/sc/21/12/2021BCSC1287.htm. 49 “Accelerating Transition: Economic Impacts of Indigenous Leadership in Catalyzing the Transition to a Clean Energy Future

Across Canada”, Indigenous Clean Energy, June 2020: 20, https://icenet.work/articles/news/4054/accelerating-transition. 50 Len Coad, Robyn Gibbard, et al., “The Cost of a Cleaner Future: Examining the Economic Impacts of Reducing GHG Emissions”,

The Conference Board of Canada, September 2017: 104, https://www.conferenceboard.ca/e-library/abstract.aspx?did=9021. 51 “Reconciliation Action Plan”, TC Energy, March 2021: 15, https://www.tcenergy.com/sustainability/indigenous/Journey-towards-reconciliation/; “Reconciliation Action Plan, Ontario Power Generation, October 2021: 33, https://www.opg.com/ building-strong-and-safe-communities/indigenous-relations/reconciliation-action-plan/.