Sustainable coexistence

We have undertaken to deepen and strengthen our dialogue with the First Nations and the Inuit Nation so that, together, we can chart a path that leads to our common goals. This commitment recognizes the vitality of Indigenous peoples and promotes collaboration with them on Québec’s energy development. Our desire to build a common trajectory provides a solid foundation for a new chapter in our relations: an improved partnership that paves the way for a better future for all.

The past year was marked by renewed ties between Hydro-Québec and Indigenous communities through the signing of mutually satisfactory agreements rooted in sincerity, respect and attentive listening.

Now more than ever, we are working to implement collaboration mechanisms to strengthen our relations and increase the spin-offs for affected communities: training, jobs and contracts. Our goal? To grow what unites us and overcome what has divided us in the past, in the name of building a strong collective future.

SUSTAINABLE COEXISTENCE

We want to build sustainable relations with the First Nations and the Inuit Nation to contribute to their development. One of the ways we take steps to achieve this is through the forwardlooking agreements that we sign with Indigenous communities. Now more than ever, it’s in the interest of all Quebecers to build a future in which harmonious coexistence contributes to the collective enrichment of all.

We maintain mutually beneficial relationships.

Declaration of commitment

As part of the Grand Economic Circle of Indigenous People and Quebec, held in November, we presented a Declaration of Commitment to the First Nations and the Inuit Nation, affirming our desire to deepen and strengthen dialogue. Hydro-Québec wants to work with these nations to define common objectives and chart a path for achieving them. Our ambition is to foster, value and embrace Indigenous promise in every aspect of our activities. In concrete terms, Hydro-Québec announced the following actions: • Develop a procurement strategy with Indigenous companies. • Organize a forum on the Indigenous workforce with the objective of becoming an employer of choice in their communities. • Contribute $500,000 to the creation of the First Nations Executive

Education program, which will be offered at HEC Montréal. • Create an initiative to support entrepreneurship among women from

First Nations and the Inuit Nation.

Progressive relations with Indigenous peoples

On September 22, 2021, Hydro-Québec was awarded the PAR Silver certification during the Canadian Council for Aboriginal Business gala. The accomplishment recognizes Hydro-Québec’s participation in the Progressive Aboriginal Relations (PAR) program and its commitment to being: • A workplace that is open and receptive to Indigenous employees. • An excellent business partner for Indigenous companies. • An electricity provider that meets the expectations of its Indigenous customers.

• A company that is intent on ensuring that its facilities and activities integrate into Indigenous territories.

Memorandum of understanding with Kahnawà:ke

In June 2021, the Mohawk Council of Kahnawà:ke and Hydro-Québec signed a memorandum of understanding (MOU) that paved the way to an unprecedented partnership with respect to the future Hertel–New York interconnection line. This line would be used to supply New York City with green energy from Hydro-Québec. The Mohawk Council of Kahnawà:ke would become a minority owner of the line, contributing to the costs of the project and benefiting from a variety of economic spin-offs for a 40-year period. As set out in the MOU, the Mohawks of Kahnawà:ke would also collaborate on the archaeological work for the project and on the land use study for the southern part of the study area.

Discussions on topics of mutual interest

In October, the Atikamekw Council of Wemotaci and Hydro-Québec signed a framework agreement that provides for a negotiation committee to be set up in order to hold straightforward exchanges on issues of importance to the relationship. The discussions will focus on determining the potential benefits of Hydro-Québec’s activities for the Atikamekw community of Wemotaci.

Agreement with the Innu community of Ekuanitshit

In July 2021, Hydro-Québec and the Innu community of Ekuanitshit signed the Nashkuaikan Agreement, which addresses the community’s concerns about changes to the Romaine project and improves certain elements related to the implementation of the Nishipiminan Agreement, signed in 2009. Among its provisions, the new agreement sets up the Nashkuaikan Fund, earmarking $57 million to finance key community initiatives over a 50-year period. The agreement also provides for activities to help Hydro-Québec workers in the Minganie region learn about Innu culture and includes the possibility of offering and awarding contracts for the construction and operation of the Romaine complex to Innu companies from the community of Ekuanitshit. Lastly, the Nashkuaikan Agreement sets the stage for Hydro-Québec and Ekuanitshit to start discussions on a collaboration to develop a pilot project for energy-efficient buildings in the community.

SUSTAINABLE COEXISTENCE

Hydro-Québec contributed to Nunavik’s vaccination campaign by supporting the Red Cross with its air transportation needs. We provided transportation for the organization’s medical personnel, vaccination equipment and vaccine doses. Seven missions were carried out from February to September in the communities of Kuujjuaq, Inukjuak, Puvirnituq and Umiujaq.

We develop and strengthen dialogue.

Apuiat project

On February 4, 2021, François Legault, Premier of Québec, and Sophie Brochu, President and CEO of Hydro-Québec, announced a historic partnership with the Innu Nation. The Apuiat project will involve the construction of a wind farm comprising approximately 50 wind turbines with a total installed capacity of 200 MW in PortCartier, in the Côte-Nord region. The contract signed between Hydro-Québec and Parc éolien Apuiat S.E.C. (a partnership between several Innu communities and Boralex) sets out an electricity purchase price that will make Apuiat the most competitive of all wind farms under contract in Québec.

Three projects to showcase Innu culture

In line with our desire to rebuild people-focused bridges with First Nations, we are supporting the community of Uashat mak Maniutenam with three projects: • The establishment of a cultural center in the community to showcase

Innu culture

• The renovation of the Sacré-Cœur chapel with a view to giving it a new life • The creation of a video highlighting the cultural vitality of Eastern

Canada’s Indigenous communities, including Uashat mak Mani-utenam.

This video was broadcast on September 30, 2021, as part of the

National Day for Truth and Reconciliation.

Converting off-grid systems

In 2021, Hydro-Québec stepped up discussions with its partner Les Énergies Tarquti to set out the terms of a framework agreement for a regional partnership for the construction and operation of renewable energy facilities in the territory of Nunavik. The framework agreement was signed in early December. In Inukjuak, the proponent of the Innavik project continued construction of its run-of-river hydropower generating station, which is slated for commissioning in late 2022. For its part, Hydro-Québec continued work to convert the community’s distribution system and started building the 25-kV substation. We also continued discussions aimed at establishing a partnership with the proponent of the renewable energy project for the communities of Kuujjuarapik and Whapmagoostui.

Connecting La Romaine and Unamen Shipu to the grid

A new line spanning some 75 km was built between the Rivière Natashquan and the La Romaine airport to connect the communities of La Romaine and Unamen Shipu to Hydro-Québec’s main grid. Designed to handle 161 kV, the new line is currently operated at 34.5 kV from two substations located at either end. This project makes a direct contribution to the decarbonization of Québec since it provides a supply of clean and renewable energy to these remote communities that had been supplied solely by a thermal generating station since 1971.

Integrating and expanding ancestral knowledge

In the summer, an archaeological inventory was carried out along the route of the future Appalaches–Maine interconnection line. During the draft design studies for the project, 11 areas with archaeological potential were identified along this route, and 8 of these were found to have topographic and physical characteristics suitable for camps or for the practice of activities valued by First Nations. Digs were carried out in collaboration with our consultant Archéotec and the offices of Ndakinna and Nionwentsïo of the Abenaki and Huron-Wendat First Nations. The work undertaken is a testimony to our respect for Indigenous heritage, our commitment to integrate and expand ancestral knowledge at every step of the archaeological research process, and our contribution to the advancement of knowledge on the history of human occupation in Québec.