Energy Sector Employment Opportunities

MAY 15, 2012

PRESENTERS

Ross Assinewe – CEO Lake Huron Anishinabek Transmission Company

Tim Lavoie - Regional Manager & Director of Northern Development

Algoma Power Inc.

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AGENDA

1. The Opportunity

1.Why

2.What

3.When

4.How

2. The Capacity

1.Who

2.Where

3.When

3. Why First Nations Involvement

1.Partnerships

2.Education

3.Skills Builder

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LHATC OVERVIEW

• LHATC is owned by 21 Anishinabek First Nations from 3 regions that constitute part of the traditional territories of the Anishinabek First Nations:

North Shore of Lake Huron

Manitoulin Island

Highway 69 Corridor

OVERVIEW OF FORTIS INC.

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Fortis Inc.

Corporates (Excl. Fortis Inc.)

S&P/TSX Total Return Index

• Fortis is the largest investor-owned distribution utility in Canada, serving over 2,100,000 gas and electricity customers

• Its regulated holdings include electric utilities in five Canadian provinces and three Caribbean countries and a natural gas utility in BC

• Regulated businesses accounted for 88% of 2010 annual earnings from operations (excluding corporate and other segment expenses)

• Fortis also owns/operates non-regulated generation assets across Canada and in Belize and Upper New York State, and hotels and commercial, office and retail space primarily in Atlantic Canada

• Fortis has increased its annual dividend to common shareholders for 38 consecutive years, the record for a public corporation in Canada

1 As at March 4, 2011.2 As at December 31, 2010.3 Corporates is an index comprised of Canadian Utilities, Emera, Enbridge, TransAlta and TransCanada.

Map of OperationsOverview

Gas Operations

Fortis PropertiesFortis GenerationElectric Operations

British Columbia

Alberta

SaskatchewanManitoba

Ontario

New York

Nova Scotia

Turks and Caicos Islands

Prince Edward Island

New Brunswick

Newfoundland

Grand Cayman

Belize

Credit Ratings and Financial Metrics Credit Ratings Key Financial Metrics

S&P: A- stable Market Capitalization1: C$5.8 billion

DBRS: A (low) TEV1: C$13.0 billion

Net Debt/Capitalization2: 58.4%

Total Return (Last 5 Years)

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TRANSMISSION LINE DEVELOPMENT

• Long Term Energy plan calls for increased renewable developments

• Increased requirements for Bulk Power Transfers west to east and north to south

• Ontario government and Ontario Power Authority have indicated this real potential

PROJECT DESCRIPTIONS

• Potential Robinson Huron Treaty Territory Projects

“The Sudbury West Line” – New 500 kV transmission line of 220 km between Algoma and Sudbury (approximately $450

million)

“The North-South Tie” – New 500 kV transmission line of 280 km between Sudbury and Barrie (approximately $900 million)

• Other Projects

Recent Ministry of Energy Long-Term Energy Plan provides for only 5 Priority Projects (4 of these are Hydro One)

To date, only 1 project may be available for competitive designation (East-West Tie located in Robinson Superior Treaty Territory between Nipigon and Wawa)

• These projects are going to happen

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MAP – SUDBURY TO BARRIE LINE

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MAP – SUDBURY WEST LINE

DESCRIPTION OF THE EAST-WEST TIE

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East-West Tie, 280 km, 230 kV transmission line from Lake Nipigon to Wawa. The line is planned for 300-500 MW of transfer capacity.

TIMING OF THE EAST-WEST TIE (THE FIRST PROJECT)

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• Designation (2012)

• Planning/Development (2013/2015)

• Construction (2016/2017)

• Operation (post 2017)

CAPACITY REQUIREMENTS

• Development

• Construction

• Operations

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KEY PRINCIPLES OF MOU PARTNERSHIP

• Joint development, ownership, operation and maintenance of electricity transmission projects

• MOU to govern partnership:

Protection of lands (Environmental Assessment) Protection of Treaty Rights Investment Opportunities

KEY PROVISIONS/BENEFITS OF MOU

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• Up to 49% First Nations Equity & Profits Participation

• Employment Opportunities for First Nations

• Apprenticeship/Skills Builder Training

• First Nations Consultants

• Regulatory experience in Energy Sector

• Preferred Contractor Status – ongoing assistance to build capacity

• Assistance in financing LHATC equity interest

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FIRST NATIONS SUPPORT

• LHATC will support the joint venture and efforts with First Nations communities

• Engagement in management of JV, lobbying efforts, consultations process, and meetings with Chiefs and Communities

• Enhance cooperation to increase efficiency in pursuing JV business opportunities together

FIRST NATIONS CAPACITY BUILD-OUT OPPORTUNITIES

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• There are a number of opportunities that become available as human resources are required to build a transmission project

• Using a single typical transmission project as an example, there would be resources required to perform the following project tasks: environmental and land preparation, install foundations and structures, frame structures, string wire, organize material yards, surveying, road construction, and land clearing

• Many of these functions will require skilled, semi-skilled and unskilled labour

• A single project could required over 100 workers over a few years to construct

FIRST NATIONS CAPACITY BUILD-OUT OPPORTUNITIES (CONT’D)

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• Using the skills builder model, a number of new opportunities for First Nations would be built into the construction contracts

• First Nations’ suppliers would be given opportunity to bid into the project as preferred suppliers

• Ongoing project resources would provide for some full-time positions once the project is operational

FIRST NATIONS CAPACITY BUILD-OUT OPPORTUNITIES (CONT’D)

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DurationMonths Skilled Semi Skilled Unskilled Total

Install Foundations 14 15 8 7 30

Install Structures 14 10 5 5 20

Frame Structures 14 9 5 4 18

String Wire 8 14 5 5 24

Storage Yards 24 5 3 2 10

8 5 3 2 10

Road Construction 24 4 2 2 8

Environmental 24 4 2 2 8 Tree Clearing 12 9 3 3 15

Total Persons Employeed 75 36 32 143

Number of Persons Employeed

Surveying

Task

EDUCATION OPPORTUNITIES

• Sault College Arborist Program

• Cambrian College Power line Maintainer Program

• Algoma University University level programming with focus on First Nations

education

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FORTIS INC. TRAINING PROGRAM WITH FIRST NATIONS

Skills Builder – Training Program

Terasen Gas, in conjunction with 9 corporate partners, has developed a model training program conceived by Cowichan Tribes.