Electricity 101 Updating 2020

ELECTRICITY
101
The following slide deck contains information about
CEA and the Canadian electricity industry. Unless
noted otherwise, charts were prepared by CEA based
on data from third-party sources, such as Statistics
Canada, Environment and Climate Change Canada,
the International Energy Agency and the World Bank.
2
Table of Contents
Canadian Electricity Association
L E A R N M O R E A B O U T T H E N AT I O N A L V O I C E O F
C A N A D I A N E L E C T R I C I T Y.
• Vision and Mission

• CEA Councils
• Sustainable Electricity
4
Canadian Electricity
Association (CEA)
Founded in 1891, the Canadian Electricity
Association is the national forum and voice of the
evolving electricity business sector in Canada.
Vision: CEA will be the leading energy association, indispensable to the regional, national, and international success of its
members, ensuring they remain at the forefront of customer service, sustainability , and technological innovation.
Mission: CEA is the national voice for safe, secure and sustainable electricity for all Canadians, and provides its members with
value-added products and services to advance the strategic interests of Canada’s electricity industry.
5
CEA Councils
The story of our industry is told through our councils and committees
Transmission Distribution
Formulates positions on transmission, Focuses on technological and
including cross border reliability, regulatory developments associated
electric and magnetic fields and with smart grid development and
utility properties. deployment, advanced meter
performance, power quality issues,
and national trends in provincial
distribution utility regulation.
Generation Customer Power Marketers

Develops and Influences policy Seeks to increase the value of Promotes competitive and
associated with investment in electricity service to Canadians. efficient electricity markets in
electricity generation Canada and the United States.
infrastructure as well as manages
environmental and health impacts
related to generation.
6
Sustainable Electricity Program
In 2016, the CEA Sustainable Electricity Program adopted a new set of strategic
pillars and performance indicators to better communicate the electricity sector’s
sustainability goals and commitments:
LOW-CARBON INFRASTRUCTURE BUILDING RISK-MANAGEMENT BUSINESS

FUTURE RENEWAL AND RELATIONSHIPS SYSTEMS INNOVATION
MODERNIZATION
Climate change Early engagement and Environmental Investments in
management and Investments in new and consultation with local stewardship innovation and
mitigation refurbished communities, technology
infrastructure stakeholders and Employee, contractor advancement
Internal energy Aboriginal Peoples and public health and
efficiency and customer Integration of renewable safety Engagement of
conservation programs energy Enhancement of the regulators, supply chain
customer experience Security management partners and other
Electrification of System reliability and systems and standards stakeholders
transportation, buildings resiliency against severe Support for low-income
and processes weather impacts customers Employee recruitment,
training and retention
7
Regulatory
C A N A D A H A S A S T R O N G R E G U L A T O R Y E N V I R O N M E N T.
• Canada’s Multi-Jurisdictional Enviro • Canada’s Regulatory Regime • Regulations to Address GHG

nment • The Integrated North-American Grid
• Electricity Structures Market in Can
ada
8
Canada’s Multi-Jurisdictional Environment
Jurisdictional Division of Responsibility
Provincial/Territorial Governments Federal Government
• Resource management on frontier lands

• Resource management within provincial
• Nuclear safety
boundaries
• Inter-provincial and international trade
• Intra-provincial trade and commerce • Trans-boundary environmental impacts
• Environmental impacts where federal lands,
• Intra-provincial environmental impacts
investment or powers apply
• Generation and transmission of electrical
• Codes, standards and labeling relating to conservation
energy and demand
• Other policies of national interest
• Conservation and demand response policies
9
Electricity Market Structure in Canada
Alberta Nova Scotia Québec

• Mandatory Power Pool • Wholesale open access • Wholesale open access
• Wholesale & retail open access (2001) • Investor-owned utility regulated • Vertically-integrated Crown
• Fully competitive wholesale market on cost-of-service corporation
• Expanding IPP development
BC Nunavut
• Wholesale and industrial open
• Vertically-integrated Crown
Corporation.
Saskatchewan
access
• Wholesale open access
Corporation serves 94% of NWT • Vertically-integrated Crown corporation
customers • Vertically-integrated Crown
Corporation. Yukon
Manitoba • Investor-owned distribution utility
provides service in several
• Wholesale open access Corporation.
communities.
• Vertically-integrated Crown • Investor-owned distribution
corporation utility provides service in
Ontario several communities.
New Brunswick • Industry unbundling (1998)
• Wholesale & retail open
• Wholesale open access
• access (2002)
corporation • Hybrid regulation and competition model
Newfoundland PEI
• Vertically-integrated Crown • Procures electricity from New
Corporation and investor-owned England market and long-term
distribution utility. contracts with New Brunswick.
10
Canada’s Regulatory Regime for Large Energy Projects
Planning Environmental Assessment Process Permitting Follow-up
Canadian Environmental Assessment Act - CEA Agency*

National Energy Board Act - NEB*
Nuclear Safety and Control Act - CNSC*
Impact reviews (YESAA, MVRMA Land Claim / CEAA)
Land use plans Innuvialuit Final Agreement - INAC* Management Boards
Territorial Lands / Water Act
Species at Risk Act - EC/DFO
Metal Mining Effluent Regulations - EC/DFO

Explosives Act - NRCan
Fisheries Act - DFO
NWPA - TC
Others: MBCA / IBWTA / CPRA / Offshore Accords / CEPA
* Permits required under other Acts trigger CEAA OGD participants | Illustrative – some components would not apply to same project
NWPA – Navigable Waters Protection Act / YESAA – Yukon Environmental and Socio-Economic Assessment Act
MVRMA – Mackenzie Valley Resource Management Act / MBCA - Migratory Birds Convention Act /
IBWTA – International Boundary Waters Treaty Act / CPRA – Canadian Petroleum Resource Act /
11 Offshore Accords – Canada - NS and NFLD Offshore Accords / CEPA – Canadian Environmental Protection Act
The Integrated North American Grid
Details: Lines shown are 345kV and

above. Transmission Lines under
345KV do not appear on this map.
12
North American Electric Reliability
Corporation Regions (NERC)
13 Source: NERC
Regulations to Address GHG emissions from
Coal-fired Electricity (2012)
• Establish an emissions performance standard of 420 tonnes of CO 2 per gigawatt hour of electricity produced
for new coal-fired electricity generation units (those commissioned after July 1,2015), and units that have
reached the end of their life.
• The proposed Regulations are to be promulgated under the Canadian Environmental Protection Act (CEPA)
and are set to come into effect on July 1, 2015.
• Existing and new units may apply for a deferral in meeting the performance standard until January 1, 2025, if
the technology for Carbon Capture and Storage (CCS) is incorporated.
• The regulation will be effective only if compliance is achievable.
• Compliance will contribute to clarity and stability for industry that will enable investment in electricity
infrastructure to flow.
• Cumulative reduction in GHG emissions of approximately 214 megatonnes and cumulative health benefits
of $4.2 billion expected in the first 21 years.
• Some jurisdictions will be more heavily impacted than others.
14 Source: Environment Canada

Industry
THIS INDUSTRY EMPLOYS OVER 80,000 PEOPLE.
• Industry Overview • Electricity Consumption with H

• Labour Statistics uman Development Index
15
Industry Overview
Electricity
Electricity supports quality of life, economic well-being,
and a clean environment.
98,465 $34.9 Billion

Employed GDP
641 TW.h 99.90% CANADIAN
Generation Customer Reliability ELECTRICITY
INDUSTRY
CO2
47.1 TW.h 1.9 Billion
Net Exports Net Trade Revenue
Over 80% 47%

Non-Emitting GHG Emissions
Reduction Since
2000
16
Industry Labour Statistics in Canada
2018: 98,465
Electric Power (Generation, Transmission and Distribution)

120,000
100,000
80,000
People
60,000
40,000
20,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Excludes consultants, vendors and related manufacturers

dedicated to the industry.
17 Source: Statistics Canada. Table 36-10-0489-01 Labour statistics consistent with the System of National Accounts (SNA), by job category and industry
Data Retrieved: June 2020; Visual Created by the Canadian Electricity Association
Customer Reliability in Canada
Canadian Index of Reliability (IoR) (2009-2019)

99.98%
99.96%
99.94%
99.92%
99.90%
99.88%
2013 Ice Storm, 2013 Alberta and 2019 Hurricane Dorian and
99.86% Toronto Floods major windstorms
99.84%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
IOR (All Events) IoR (Significant events removed)
Significant Events are catastrophic events that are outside

the control of the utility and impact the Canadian Index.
Source: Canadian Electricity Association, Service Continuity Committee

18 Data Retrieved: June 2019; Visual Created by the Canadian Electricity Association
Electricity Consumption Benefit
Data Source: HDI data, HDI Definition: United Nations; and Energy Consumption: EIA, World Energy Statistics 2018
19 Data Retrieved: June 2019; Visual Created by the Canadian Electricity Association.
Trade
ELECTRICITY TRADING BETWEEN CANADA AND THE USA
BEGAN IN 1901.
• Major Canada-US Transmission Interc • National Trade Volume Trends

onnections • Trade Prices Trends
• Canadian Electricity Exports/Imports • Trade Revenue Trends
by Province
20
Major Canada-U.S.
Transmission Interconnections
Data Source: Canada Energy Regulator (CER).

21 Data Retrieved: July 2016.
Canadian Electricity Imports and Exports by Region (2019)
CANADA
EXP 60,410
IMP 13,334
NET 47,076
NL
EXP 1,128
IMP 1
NET 1,127
BC
EXP 6,818
IMP 11,197
MB NB
NET -4,380 AB
EXP 7,680 EXP 1,378
EXP 356 SK QC
IMP 447 ON IMP 115
IMP 1,176 EXP 47 EXP 25,945 NS
NET 7,233 EXP 17,030 NET 1,263
NET –820 IMP 60 IMP 115 EXP 30
IMP 168
NET –13 NET 16,863 NET 25,830 IMP 56
NET –26
Notes: (1) Data in gigawatt-hours; (2) Provincial numbers may not sum up to total due to rounding.
22 Data Source: Canada Energy Regulator (CER).
Data Retrieved: July 2020.
Trade Volume
80
Canada-U.S. Electricity Trade Volume (1990-2019)
70
60
50
TWh
40
30
20
10
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Exports (TWh) Imports (TWh) Net Exports (TWh)

Trade Prices
Canada - U.S. Electricity Trade Prices (1997-2019)

120
Exports (CDN$/MWh)
Imports (CDN$/MWh)
100
80
CDN$/MWh
60
40
20
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Trade Revenue
Canada - U.S. Trade Revenue (1990 -2019)

6.0
California Energy Crisis Global Financial Crisis

(2000 – 2001) (2009)
5.0
4.0
Billion CDN$
3.0
2.0
1.0
0.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Exports Imports Net

Supply & Demand
A R E S U M E O F A N A LY T I C S F R O M M AY 2 0 1 4 T O M AY 2 0 1 5
• Generation Capacity (US and Canada) • Electricity Generation Outlook (2040) • World Electricity by Fuel Source
• Electricity Demand in Canada (1 year) • Electricity Generation Breakdown Compa
• Electricity Demand in Canada (1990-2015 rison (2015
) )
• Electricity Generation by Fuel (1995-2015 Generation by Province (2016)
) • Canada’s Wind Capacity (2016)
26
Annual Supply and Disposition of Electricity Generation in Canada, 2018
660,000
640,000
620,000
59585.779 -61,401
600,000
13194.693
580,000
560,000
591,881
540,000 580501.338
520,000
500,000
Generation Exports Imports Available for Domestic Use
Electric Utilities Industry Series3 Imports Exports
Data Source: Statistics Canada, Table 25-10-0021-01.

Generating Capacity
Canada, 2017 United States, 2018
Solar/Tidal Geothermal
1.6% 0.3%
Wind Conventional Steam Turbine
8.5% Other
Biomass
14.7% Solar 1.3% 0.5%
2.7%
Wind
Combustion Turbine 7.9% Coal
9.1% 22.1%
Hydro
8.5%
Petroleum
Internal Combustion Turbine 3.1%
Hydro 0.8%
55.6% Nuclear
8.7%
Nuclear
9.7%
Natural Gas
44.9%
Generating Capacity Generating Capacity

145 GW 1,196 GW
28 Data Source: Canadian data from Statistics Canada, Table 25-10-0022-01; U.S. data from the U.S. Energy Information Administration.
Electricity Demand by Sector, 1990 -2018
Total Electricity Demand in Canada for 2018 = 551.3 TWh

600
500
400
300
TWh
200
100
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Industrial Residential Commercial & Institutional
Transportation Public Administration Agriculture
Data Source: Statistics Canada, Table 25-10-0030-01.

Electricity Demand in Canada by Sector
(sectoral demand as a share of total demand)
100% Electricity Demand By Sector In Canada (2015)
90%
20% 23% 24%
80% 25%
% of total demand
70%
60% 29%
32% 33% 31%
50%
40%
30%
45%
20% 40% 38% 38%
10%
0%
2005 2010 2015 2018
Industrial Residential Commercial and Institutional Public Administration Agriculture Transportation
30 Data Source: CEA calculations based on Statistics Canada data, Table 25-10-0030-01.
Electricity Generation by Fuel Type, 1995-2018
700
600
500
400
TWh
300
200
100
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Hydro Nuclear Coal and Coke Natural Gas Oil and Diesel Biomass Solar Wind Tidal
Steam from Waste Heat
Data Source: Statistics Canada, Tables 25-10-0020-01 and 25-10-0028-01 .

Electricity Generation Outlook by Fuel Type
800
700
600
500
TWh
400
300
200
100
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Hydro Nuclear Coal and Petroleum Coke Natural Gas Other Renewables Refined Petroleum Products
Data Source: Canada Energy Regulator (CER). Energy Supply and Demand Projections to 2040.
Generation Mix in Canada, 2005-2018
(generation type as a share of total generation)
100%
5% 5% 6%
6%
90% 7% 7%
% of total generation by electric utilities
18% 14% 11% 9%

80%
70% 16% 17% 16%
16%
60%
50%
40%
30% 59% 59% 60% 61%
20%
10%
0%
2005 2010 2015 2018
Hydro Nuclear Coal and Petroleum Coke Natural Gas Other Renewables Refined Petroleum Products
Data Source: CEA calculations based on Statistics Canada data, Tables Table 25-10-0019-01 and 25-10-0020-01.
Data Retrieved: June 2019; Visual Created by the Canadian Electricity Association
33
Supply Industries and Utilities by Province
Data Source: StatsCan CANSIM Table 127-0001, 128-0014, 127-0007

World Electricity by Fuel Source
Source: IEA, World gross electricity production, by source, 2018, IEA, Paris
35 https://www.iea.org/data-and-statistics/charts/world-gross-electricity-production-by-source-2018
Canada’s Wind Capacity (2019)
Source: CANWEA.
36
Environmental Sustainability
T H E E N V I R O N M E N T I S E V E RY T H I N G T H AT I S N ’ T M E .
A L B E R T E I N S T E I N
• Low Emissions and Sustainable Technologies • CO2 source by Economic Sector Trend
• Emissions - Sulphur Oxide • Factors on the Change in GHG Emissions
• Emissions - Nitrogen Oxide • Coal Fleet Profile
• Emissions – Mercury • NOx and Sox Reductions from CO2 regulation
• Emissions – Particulate Matter
37
Low Emission and Sustainable Technologies Used
for Electricity Generation in Canada
Resource Advantages Challenges
Less cost competitive than conventional energy source, variable

No fuel cost, no emissions or waste, renewable source of
Wind Power energy resource, transmission issues, environmental concerns with
energy, commercially viable source of power
regards to noise and interaction with birds, land use issues
Low capital costs, many potential sites in Canada, well

Regulatory approval can be costly and time consuming, access to
Small Hydro established technology, able to meet small incremental
grid, local opposition to new development
capacity needs, reduction in GHG emissions
Uses landfill gas, wood pellets, and waste products to create High capital equipment and fuel costs; produces some emissions;
Biomass
electricity, reduces greenhouse gas, high availability of sites access to transmission, competition for biomass materials use
Geothermal Reliable source of power, low fuel and operating costs, clean High capital costs, connecting to the grid can be difficult, few
Energy and renewable source of energy potential sites in Canada
Reliable, renewable energy source with zero emissions and Restrictive and lack of grid connection for remote areas, not cost
Solar PV silent operation, fuel is free, suitable for areas where fossil competitive, sun does not always shine and potential varies across
fuels are expensive or where there is no connection to the grid regions
Costs are expected to decline as technology develops, Potentially intrusive to marine life, investment is needed to promote
Ocean Energy
intermittent, but predictable source of green energy research and development
Highly efficient, potential for reduced greenhouse gas

Clean Coal High capital costs, lengthy start-up period
emissions
38
Sulphur Oxide (SOx) Emissions
Canadian Electricity Sector, 2000-2018
700
600
500
Kilotonnes (kt)
400
300
200
100
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Since 2000, the Canadian electricity industry has reduced its SOx emissions by 64%.
Data Source: Environment and Climate Change Canada, Air Pollutant Emissions Database.
Sulphur Oxide (SOx) Emissions in Canada by Source, 2018
Total Manufacturing
6%
Total Ores and Mineral Indus-

tries
32%
Total Electric Power Generation
27%
Total Oil and Gas Industry

32%
In 2018, SOx emissions in Canada totaled 811 kilotonnes.
Source: Environment and Climate Change Canada, Air Pollutant Emissions Database
Nitrogen Oxide (NOx) Emissions
350
300
250
Since 2000,
Kilotonnes (kt)
200 The
Canadian
150 electricity
sector has
100
reduced its
NOx
50
Emissions
0 by 51.25%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Since 2000, the Canadian electricity industry has reduced its NOx emissions by 61%.
Nitrogen Oxide (NOx) Emissions in Canada by Source, 2018
Total Ores and Mineral

Industries
Total Commercial/Residen- 5%
tial/Institutional
5%
Total Oil and Gas Industry

27%
In 2018, NOx
emissions in
Canada totaled
Total Transportation 1,784.51
51%
kilotonnes.
Total Electric Power Genera-

tion
7%
Total Manufacturing
4%
In 2018, NOx emissions in Canada totaled 1,768 kilotonnes.
Mercury (Hg) Emissions
3,000
2,500
2,000
Kilograms (kg)
1,500
1,000
500
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Since 2000, the Canadian electricity industry has reduced its Hg emissions by 71%.
Mercury (Hg) Emissions in Canada by Source, 2018
Total Incineration and Waste

15%
Total Commercial/Resi-
dential/Institutional
15% Total Ores and Mineral Indus-
tries
43%
Total Transportation
2%
Total Manufacturing
4%
Total Electric Power Genera-

tion Total Oil and Gas Industry
19% 2%
In 2018, Hg emissions in Canada totaled 3,112 kilograms.
Particulate Matter Emissions
25
20
Kilotonnes (kt)
15
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Since 2000, the Canadian electricity industry has reduced its particulate matter emissions by 86%.
Source: Environment and Climate Change Canada, Air Pollutant Emissions Database
45 Data Retrieved: July 2020; Visual Created by the Canadian Electricity Association
Particulate Matter Emissions in Canada by Source, 2018
Dust
58.6%
Ores and Mineral Industries

2.1%
Electric Power Generation

0.2%
In 2017, in
Canada PM2.5
emissions were
measured at
Transportation
2.3% 1,665.92
Agriculture kilotonnes
23.5%
Commercial/Residential/Institutional
11.2%
In 2018, particulate matter emissions in Canada totaled 3,223 kilotonnes.
47
Kilograms (kg) Kilotonnes (kt)
100
200
300
400
500
600
700
0
2000
500
1,000
1,500
2,000
2,500
3,000
0
2000 2001
2001 2002

2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008 2008
2009 2009
Mercury (Hg)
Sulphur Oxide (SOx)
2010 2010
2011 2011
2012 2012
2013 2013
2014 2014
2015 2015
2016 2016
2017 2017
2018 2018
Kilotonnes (kt) Kilotonnes (kt)

100
150
200
250
300
350
50
0
10
15
20
25
0
5
2000 2000
2001 2001
2002 2002
2003 2003
2004 2004
2005 2005
2006 2006
2007 2007
2008 2008
2009 2009
2010 2010
Particulate Matter
2011 2011
Nitrogen Oxide (NOx)
2012 2012
2013 2013
2014 2014
2015 2015
Canadian Electricity Sector Emissions Trends, 2000-2018
2016 2016
2017 2017
2018 2018
Greenhouse Gas (GHG) Emissions
140
Coal Natural gas Other
120
Megatonnes (Mt) of C02 Eq.
100
80
60
40
20
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Since 2000, the Canadian electricity industry has reduced its GHG emissions by 47%.
Greenhouse Gas (GHG) Emissions by Economic Sector in Canada, 2018
Waste & Others

6%
Agriculture
10%
Oil and Gas
26%
Buildings
13%
Electricity
9%
Heavy Industry
11%
Transportation
26%
In 2018, GHG emissions in Canada totaled 729 million tonnes.
Greenhouse Gas (GHG) Emissions by Economic Sector in Canada, 1990 - 2018
800
700
600
Megatonnes (Mt) of CO2 equivalent
500
400
300
200
100
0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Waste and others Agriculture Heavy industry Electricity Buildings Transportation Oil and gas
Data Source: Environment and Climate Change Canada. 2020. National Inventory Report.
50
Electricity Sector Leads In CO2 Eq. Reduction
Forecasted Change in Emissions by Sector 2005-2020
225
175
125
Mt CO2 Eq
75
25
Electricity Transportation Oil & Gas Buildings Emissions-inten- Agriculture Waste and Others
-25 sive & Trade ex-
posed
2005 121 168 159 84 89 68 47
2012 -75 86 165 173 80 78 69 47
2020 71 167 204 98 90 70 46
Change 2005 to 2020 -50 -1 45 14 1 2 -1
Source: Environment and Climate Change Canada, Canada‘s Emissions Trends 2014
Factors on the Change in GHG Emissions
1990 - 2015 2005 - 2015
Notes:
Demand – the level of electricity generation activity in the sector and consists of generation from combustion and non-combustion sources.
Generation mix – the relative share of combustion and non-combustion sources in generation activity.
Fuel mix (combustion generation) – the relative share of each fuel used to generate electricity.
Energy efficiency – the efficiency of the equipment used in combustion related generation of electricity.
Emission factors – The emission factor effect reflects changes to fuel energy content over time.
Source: UNFCCC, National Inventory Report for Canada, for 1990-2015

Coal Fleet Profile (MW)
Canadian coal electricity generation by region to 2040
Source: CER (Canada Energy Regulator)

53 Data Retrieved February 2020; Visual created by CER, https://www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/snpsht/2020/01-05cndrtrngcfpp-eng.html
NOx and SO2 Reductions from CO2 Regulation
Reduction in SO2 emission from 2002 levels: Reduction in NOx emissions from 2002 levels:
• 54% reduction by 2020 • 50% reduction by 2020
• 84% reduction by 2030 • 80% reduction by 2030
Source and assumptions: NPRI data was used for existing unit emissions, forecast based on 2009-2011 operation, coal unit retirement
from 45-50 years as outlined in the 2012 Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations
Source: NPRI data

54
Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association
U.S. Greenhouse Gas Emissions Trends (1990-2018)
Source: U.S. Environmental Protection Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990-2018), Figure ES-14.
55
Greenhouse Gas (GHG) Emissions by Economic Sector
Canada and United States Comparison, 2018
Canada
Transportation; Waste &
26% Buildings; 13% Others; 6%
Electricity ; 9% Emission
Total –
2018 Canada:
729 Mt
CO2 Eq.
Oil and Gas ; Heavy Industry; Agriculture;
26% 11% 10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
United States
U.S. Terri- Emission
Electricity
Generation; Industry; 22% Commercial;
tories; 1% Total –
27% 7% United
States:
2018 6,677 Mt
CO2 Eq.
Residential;
Transporta- Agriculture; 6%
tion; 29% 10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Data Source: (1) Environment and Climate Change Canada. 2020. National Inventory Report; (2) U.S. Environmental Protection Agency, Inventory of
U.S. Greenhouse Gas Emissions and Sinks (1990-2018).
56
Price & Customers
THERE IS A FUNDAMENTAL COST IN PROVISIONING
E L E CT R I C I TY FO R A N AT I O N .
• Canada’s Future Residential Electricity Needs • Multinational Comparisons • Electric Vehicle Penetration (Canada)
• Population Growth and Residential Residential Pricing (Bar chart)
Needs (BAU) • Multinational Comparisons
• Population Growth and Residential Residential Pricing (Bubble Chart)
Needs (Economic) • Pricing Canadian Urban Centres – Residential
• Household Spending
(1999-2015: Cumulative Change)
57
Canada’s Future Residential Electricity Needs
1990 2015 2040 2050
POPULATION POPULATION POPULATION POPULATION

27.79 Million 35.85 Million 44.05 Million 46.87 Million
RESIDENTIAL USAGE RESIDENTIAL USAGE RESIDENTIAL USAGE RESIDENTIAL USAGE

129,831 GWh/yr 169,016 GWh/yr 207,668 GWh/yr 220,953 GWh/yr
BUSINESS AS USUAL
SCENARIO
Demand with Moderate Economic Growth Residential Usage Residential Usage

350,660 GWh/yr 373,092 GWh/yr
Data Source: StatsCan, CANSIM Table 052-0005; Moderate Growth from Canada’s Energy Future 2016, Open Data Portal
Population Growth and Residential Needs
Forecasted Population Growth in Canada (2025 - 2055)
Electricity Needs Low Growth Moderate Growth High Growth
70000 250000
60000
200000
50000
Electricity Needs (GW.h/yr)

150000
40000
Persons (x1,000)
30000
100000
20000
50000
10000 Business as usual scenario.
Electricity Needs based on Moderate Population Growth.
0 0
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Data Source: StatsCan, CANSIM Table 052-0005

Population Growth and Residential Needs
Forecasted Population Growth in Canada (2025 - 2055)
Electricity Needs With Moderate Economic Growth Electricity Needs (BAU)

Low Growth Moderate Growth
High Growth
70000 450000
400000
60000
350000
50000
300000
Electricity Needs (GW.h/yr)

Persons (x1,000)
40000 250000
30000 200000
150000
20000
100000
10000 Moderate Economic and Population Growth and Energy prices.

Electricity needs are far superior. 50000
0 0
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Data Source: StatsCan, CANSIM Table 052-0005 , Moderate Growth from Canada’s Energy Future 2016, Open Data Portal
Household Spending (1999 - 2017)
Household Spending Cumulative Change from 1999-2017

300.00%
Electricity Water and Sewage
Property Taxes Internet Services

250.00% Cell Phone Public Transit
Cumulative
changes per
200.00%
Household
from
150.00% 1999-2017.
Internet
100.00% Services
245.22%
50.00%
Electricity
44.93%
0.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Data Source: StatsCan, Table: 11-10-0222-01 (formerly CANSIM 203-0021)

61 Retrieved: June 2019; Visual Created by the Canadian Electricity Association
Household Spending (1999 vs. 2017)
842.0%
133.5 TW.h
Residential Demand in 1999
839.5%
78.1% 82.3% 152.1%

55.3% 167.8 TW.h
Residential Demand in 2017
Data Description
Percentage increase in 2017 comparing against 1999 household spending levels.
Electricity Public Property Water Internet Cell

Transit Taxes and Services Phone
Sewage Services

Household Spending (2010 vs. 2017)
Spending Increases Per Household

Comparing 2017 to 2010.
Internet
Property Taxes
Services
23.88%
67.53%
Cell Phone
Services Electricity
65.80% 15.72%
Water and
Sewage Public Transit
34.88% 11.74%

Multinational Comparison (Residential Pricing)
Data Source: World Energy Statistics 2019, IEA

Multinational Comparison (Residential Pricing)
Shaded area
indicates top
quartile.
Data Source: World Energy Statistics 2019, IEA, and Open Data Portal, World Bank
Canadian Urban Centres Comparison
(Residential Pricing)
Pricing is impacted by time-of-use rates, consumption patterns, adjustment clauses.

This data is taken from Hydro-Québec price comparison study and is calculated
according to base rates.
Data Source: 2019 Edition Comparison of Electricity Prices in North America in Major North American Cities, Hydro-Québec
Multinational Comparison (Industrial Pricing)
Data Source: World Energy Statistics 2019, IEA

Multinational Comparison (Industrial Pricing)
Shaded area
indicates top
quartile.
Data Source: World Energy Statistics 2019, IEA, and Open Data Portal, World Bank
Electric Vehicle Sales (Canada)
Electric Vehicle Market Share and Sales Growth (2010-2018)

60 5.00%
50 2019 Total Sales: 4.00%
55,686 units (BEV and PHEV)

Total Sales in 000's (BEV and PHEV)
40 Or 3.00%
Automobile Market Share (%)

2.84% of market share (new vehicle sales)
30 2.00%
20 1.00%
10 0.00%
0 -1.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Automobile Market Share Total Sales
Data Source: Electric Mobility Canada. Electric Vehicle Sales in Canada.

Financials
IN 2016 THE ELECTRICITY INDUSTRY REPRESENTED 1.7%
O F T H E N AT I O N A L G D P .
• GDP Contribution
• Utility Investments
70
GDP Contribution
Electric Power(Generation, Transmission, Distribution) to Canada's GDP (2010-2019)
40,000,000,000
35,000,000,000
30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Electricity GDP (2012 Chained Dollars)
Data Source: Statistics Canada. Table 36-10-0434-06 Gross domestic product (GDP) at basic prices, by industry, annual average, industry detail (x 1,000,000)
Utility Investments
Annual Capital and Repair Expenditures

25,000
20,000
CDN dollars (x 1,000,000)
15,000
10,000
5,000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Power distribution networks Electric power infrastructure
Data Source: Statistics Canada. Table 34-10-0063-01 Capital expenditures, non-residential tangible assets, by type of asset and geography (x 1,000,000)
Infrastructure Projects
I N F R A ST R U CT U R E I S C R I T I C A L TO N AT I O N A L
S E CU R I TY AN D LO N G EV I TY .
• Known Generating Stations (Renew/MPMO) Slide 1 • Manitoba-Minnesota Transmission Project

• Known Generating Stations (Renew/MPMO) Slide 2 • Known Transmission Projects (Renew/MPMO)
73
Known Generation Projects (Renew/MPMO)
Estimated
Project
Project Name Description Proponent Location Value ($) Completion
Type
Amisk Hydroelectric Project 330 MW AHP Development Corp Hydro AB TBD TBD
Beauharnois Station Renovations Hydro-Quebec Hydro QC 1.6 2019

Refurbishment
Bruce Power Nuclear

Refurbishment 6,300 MW Bruce Power Nuclear ON 13B 2030
Chinook Power Station 350 MW SaskPower Natural Gas SK 0.68B 2019
Darlington Nuclear Refurbishment 3,512 MW OPG Nuclear ON 12.8B 2025
Genesee 4 and 5 Generation Units 1060 MW ENMAX, Capital Power Natural Gas AB 1.4B 2019
Gordon Shrum Power Station

Refurbishment Refurbishment BCHydro Hydro BC 0.6B 2022
Great Spirit Power Project 930 MW Focus Energy Group AB 1.5B TBD
Natural Gas
John Hart Generating Station

Replacement Project Refurbishment BCHydro Hydro BC 1.093B 2019
Data Source: MPMO Tracker, (Major Project Management Office), Renew Magazine Top 100 Projects List
Data Retrieved: May 2018,; Visual Created by the Canadian Electricity Association
74
Known Generation Projects (Renew/MPMO)
Project Name Description Proponent Project Type Location Value ($) Source
Keeyask Hydroelectric Keeyask Hydropower

Generation 695 MW Hydro MB 8.7B 2020
Limited Partnership
Lower Churchill Hydroelectric

Generation 3,074 MW Nalcor Energy Hydro NL TBD TBD
Milner Energy Centre 520 MW

Maxim Power Natural Gas AB 1B 2020
Expansion
Muskrat Falls Project Nalcor Energy ,

824 MW Hydro NL 12.7B 2020
Emera
Naikun Offshore Wind Energy 396 MW Naikun Wind Energy Wind BC TBD TBD
Rehabilitation of Robert
Bourassa Generating Units Refurbishment Hydro-Quebec Hydro QC 0.743B TBD
Romaine Complex 1,550 MW Hydro Quebec Hydro QC 6.5B 2020
Site C Clean Energy Hydroelectric

Generation 1,100 MW BC Hydro Hydro BC 9.385B 2024
Tazi Twe Hydroelectric Saskatchewan Power

Generation 50 MW Hydro SK 0.5B 2019
Corp.
75 Data Retrieved: May 2018,; Visual Created by the Canadian Electricity Association
Major Transmission Projects (MPMO/Renew)
MPMO Project Name Description Proponent Location Value ($) Estimated

Completion
Bipole III Transmission Line 1,384 km line Manitoba Hydro MB 5.04B 2018
Chamouchouane-Bout-de-l’Ile
Transmission Line 735 kV line (406 km) Hydro-Quebec QC 1.4B 2018
East-West Transmission Tie 230kV line NextEra Energy Canada/ Enbridge ON 0.6B 2020
Fort McMurray Transmission Line 500 kV AC line (over AESO AB 1.43B 2019
900km)
ITC Lake Erie Connector 50 kV International Power ITC Holdings Coporation ON TBD TBD
Line (IPL)
Juan de Fuca Power Cable 550 MW line Sea Breeze Power BC 0.665B TBD
Manitoba-Minnesota Transmission
Project 500 kV AC line Manitoba Hydro MB TBD TBD
Maritime Link Transmission 500-MW, +/- 200 to ENL Maritime Link Inc. NL/NS 1.577B 2018
250-kV HVDC & HVAC
Romaine 315kV and 735kV lines Hydro Quebec QC 1.3B 2020
Wakaynikaneyap Transmission
Project 1,800 km line FortisOntario ON 1.35B 2024
76 Data Retrieved: May 2018,; Visual Created by the Canadian Electricity Association
FOR MORE INFORMATION
CONTACT US
Canadian Electricity Association

275 Slater Street, Suite 1500
Ottawa, Ontario, K1P 5H9
613.230.9263
Twitter: @CDNElectricity
LinkedIn: https://www.linkedin.com/company-beta/370763/
Facebook: canadianelectricityassociation
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ELECTRICITY

• Vision and Mission

Generation Customer Power Marketers

LOW-CARBON INFRASTRUCTURE BUILDING RISK-MANAGEMENT BUSINESS

• Canada’s Multi-Jurisdictional Enviro • Canada’s Regulatory Regime • Regulations to Address GHG

Jurisdictional Division of Responsibility

Provincial/Territorial Governments Federal Government

• Resource management on frontier lands

Alberta Nova Scotia Québec

Planning Environmental Assessment Process Permitting Follow-up

Canadian Environmental Assessment Act - CEA Agency*

Metal Mining Effluent Regulations - EC/DFO

Details: Lines shown are 345kV and

• The regulation will be effective only if compliance is achievable.

• Some jurisdictions will be more heavily impacted than others.

14 Source: Environment Canada

• Industry Overview • Electricity Consumption with H

98,465 $34.9 Billion

Over 80% 47%

Electric Power (Generation, Transmission and Distribution)

Excludes consultants, vendors and related manufacturers

Canadian Index of Reliability (IoR) (2009-2019)

IOR (All Events) IoR (Significant events removed)

Significant Events are catastrophic events that are outside

Source: Canadian Electricity Association, Service Continuity Committee

• Major Canada-US Transmission Interc • National Trade Volume Trends

Data Source: Canada Energy Regulator (CER).

Data Source: Canada Energy Regulator (CER).

Canada - U.S. Electricity Trade Prices (1997-2019)

Canada - U.S. Trade Revenue (1990 -2019)

California Energy Crisis Global Financial Crisis

Data Source: Canada Energy Regulator (CER).

Electric Utilities Industry Series3 Imports Exports

Data Source: Statistics Canada, Table 25-10-0021-01.

Canada, 2017 United States, 2018

Generating Capacity Generating Capacity

Total Electricity Demand in Canada for 2018 = 551.3 TWh

Data Source: Statistics Canada, Table 25-10-0030-01.

Industrial Residential Commercial and Institutional Public Administration Agriculture Transportation

Data Source: Statistics Canada, Tables 25-10-0020-01 and 25-10-0028-01 .

18% 14% 11% 9%

Data Source: StatsCan CANSIM Table 127-0001, 128-0014, 127-0007

Resource Advantages Challenges

Less cost competitive than conventional energy source, variable

Low capital costs, many potential sites in Canada, well

Highly efficient, potential for reduced greenhouse gas

Total Ores and Mineral Indus-

Total Oil and Gas Industry

In 2018, SOx emissions in Canada totaled 811 kilotonnes.

Total Ores and Mineral

Total Oil and Gas Industry

Total Electric Power Genera-

In 2018, NOx emissions in Canada totaled 1,768 kilotonnes.

Total Incineration and Waste

Total Electric Power Genera-

In 2018, Hg emissions in Canada totaled 3,112 kilograms.

Ores and Mineral Industries

Electric Power Generation