Ontario Power Authority's "2012 technical report for the connection of remote First Nation communities in Northwest Ontario for the transmission planning committee"

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1.0 EXECUTIVE SUMMARY OF OPA’S TECHNICAL REPORT ON REMOTE COMMUNITY CONNECTION

This document summarizes the Ontario Power Authority's (“OPA”) technical report to the Northwest Ontario First Nation Transmission Planning Committee (the “Committee”). The OPA’s technical report provides a baseline of options for the remote community connection plan being developed by the Committee. The plan is intended to establish, at a planning level of certainty, the technical and economic viability of connecting remote First Nations communities to the provincial electricity grid.

There are 25 remote First Nations communities in northwestern Ontario. These communities are considered remote because they are not connected to the provincial electricity grid and because most do not have all-season road access. Electricity service within these communities is supplied by local diesel generators. Figure 1 shows the location of the northwest Ontario remote communities.

Diesel generation is in general the highest cost electricity generation resource currently supplying Ontario customers, typically costing 3 to 10 times more than the average cost of the provincial supply mix.

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Figure 1: Northwest Ontario Remote Communities

Existing Funding Structure

The parties who currently fund the electricity systems in these communities are, most notably, the federal government (Aboriginal Affairs and Northern Development Canada - AANDC), Ontario electricity customers (through Rural and Remote Rate Protection - RRRP) and the provincial government (through the payment of Standard-A Electricity Rates for provincial facilities located within the Remote Communities). The remaining revenue is paid by community members who are regular retail and commercial customers

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(non-standard A customers) and who pay rates similar to other Ontario rate payers. The 2 estimated current allocation of the expense by funding party is illustrated in Figure 2.

Note: Whitesand First Nation and the Town of Collins are connected to the generating station at Armstrong

Substantial near term investment will be required in order to realize the long term benefits of reduced diesel use in remote communities. In order to implement the project, the remote community funding parties as well as any industrial customers who wish to make use of the transmission assets will need to come to agreement on the allocation of project costs among them.



Economic Analysis

The OPA has developed a detailed economic analysis comparing the avoidable cost of continued diesel generation with the cost of transmission connection and supplying


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electricity to remote First Nations communities from the provincial generation fleet. This analysis indicates that there is a strong economic case at this time for connecting 20 of the 25 remote First Nations communities in northwest Ontario to the provincial electricity grid.

Avoidable costs of diesel operation are the generation related costs (fuel, variable operations and maintenance, variable overhead, etc.) that can reasonably be expected to be eliminated when an alternate supply source, such as a transmission connection, is used to supply electricity in remote communities.

Analysis indicates that there are also opportunities for sharing transmission facilities between industrial customers and these remote communities.

For the purpose of this plan, the following key assumptions underlie the OPA’s analysis:

• The nature of the power system remains the same as when the report was written
• An outlook or study period of 40 years (2013 to 2053);
• An average long-term inflation rate of 2%;
• Community annual electricity demand growth of 4% after 2015;
• Initially 50% of fuel will be delivered by winter road and 50% by air. Over the next 20 years the road delivered portion is assumed to decline to 40%;
• The OPA Ontario electricity price forecast (which is based on current energy sector
• plans and policies until 2031);
• A social discount rate of 4%, consistent with social-based analysis of this nature routinely conducted by the OPA.

To compare the cost of continued diesel generation with the cost of transmission connection for the group of 20 communities, the OPA forecasted the diesel generation costs that could be avoided after the 20 communities are connected to the provincial transmission system. Communities are assumed to begin connecting to the provincial electricity grid after 2016, at which time the savings in avoided diesel generation could begin.


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Transmission Supply Options

The OPA found that radial transmission configurations from Red Lake and Pickle Lake can best connect these communities, by providing the best overall balance of cost, operability and reliability. A radial transmission system is one where one or more customers (generators or load) are connected to a single point on an electricity system, which differs from a network system where there are multiple connection points. The six communities north of Red Lake can be served by a single radial 115 kV line from Red Lake and the 14 communities north and east of Pickle Lake can be served by several 115 kV lines from Pickle Lake.

The supply option from Red Lake is designed to serve the six communities north of Red Lake with a new 115 kV single-circuit line. This new 115 kV line would extend the existing transmission system at Red Lake Transmission Station (TS) north toward Pikangikum First Nation, then to North Spirit Lake First Nation, terminating at a new TS south east of Sandy Lake First Nation. Figure 3 shows this connection concept.

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Two potential configurations have been identified (shown in Figure 4) for the cluster of 14 communities north and east of Pickle Lake based on whether or not a new line from Pickle Lake will be built to supply potential mining developments at the Ring of Fire.



Scenario A, includes supplying all 14 remote communities north and east of Pickle Lake and the Ring of Fire from Pickle Lake. Scenario B includes only the 14 communities north and east of Pickle Lake and excludes connection at the Ring of Fire, which leads to a different connection configuration for the communities. This connection configuration is designed to minimize the cost for this scenario. With the connection of mines at the Ring of Fire, serving forecast load growth in Scenario A will require 230 kV supply at Pickle Lake.

Therefore the new line to supply Pickle Lake in this scenario will be 230 kV. The load forecast for the Pickle Lake area in Scenario B indicates that it can be adequately served by a new 115 kV line until about 2033 if 20 MW of load is transferred from Pickle Lake to Ear Falls via E1C after a new line is built from Dryden to Red Lake. However, pre-building the new line to Pickle Lake to 230 kV standards and operating it at 115 kV may be worthwhile as preserves the option for the line to be operated at 230 kV in the future to serve Pickle Lake area load instead of requiring load to be transferred to Ear Falls. This would provide incremental capacity at Ear Falls to serve load growth in the Red Lake area for the long term. Maintaining the option of upgrading Pickle Lake to 230 kV supply would also ensure that load growth in the Pickle Lake area beyond the 2033 or unforeseen load growth in the near or medium term (such as a new mine development requiring connection) can be served adequately without having to build an additional line.

Total capital costs for Scenario A are about $50 million higher than for Scenario B, however, the cost attributable to the remote connection plan for Scenario A is estimated to be about $150 million less than for Scenario B due to the potential for cost sharing with the industrial customers sharing the proposed new facilities.

For this assessment, costs were assumed to be attributed to each party in proportion to the relative magnitude of load each is assumed to connect to the system. This methodology is consistent with the Ontario Energy Board’s Cost Allocation Principles as defined in the Transmission System Code.

The scenarios identified in this plan require new transmission voltage lines (230 kV and 115 kV), new distribution lines (44 kV and lower) as well as 230 kV and 115 kV transformer stations. Table 1 summarizes the line distances and the number of transformer stations required for each remote community cluster and scenario.

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Based on the line distances and the number of required station facilities identified in Table 2 1, the OPA developed a forecast of project capital costs using unit costs developed by an experienced third party engineering consultant (cost forecast is summarized in Table 2). Scenario A is forecast to cost approximately $1.3 billion, of which about $900 million is attributable to the connection of remote communities, while the remainder is assumed to be covered by participating industrial customers. Scenario B is forecast to cost approximately $1.2 billion, of which about $1 billion is attributable to the remote community connection project.

Based on the direct avoidable diesel costs assessed and the total cost of transmission connection, the combined connection project is expected to break-even 20-25 years after all of the communities are connected. The cost of connecting these communities is estimated to be 20% to 30% lower than the avoidable cost of continuing to power them with diesel generation until 2053. Figure 5 shows the cumulative costs of continued diesel supply, and the transmission connection scenarios.

A payback period of this duration (20-25 years) is reasonable for electricity infrastructure assets that are expected to last at least 50 years before requiring substantial reinvestment or refurbishment. In this area, transmission assets can last in excess of 80 years with proper operations and maintenance.


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The business case for transmission connection developed by the OPA is based solely upon direct avoided diesel costs and does not reflect the additional economic, social, developmental and environmental benefits that would also arise with transmission connection of remote First Nation communities, including: reduced infrastructure barriers to growth, increased economic development opportunities (both within the remote communities as well as regionally), improved social and living conditions for remote community residents, cleaner air and reduced greenhouse gas emissions, reduced future environmental remediation liabilities associated with diesel fuel spills, and improved reliability of electricity supply.

To determine the degree to which the findings within this analysis are robust, the OPA conducted an uncertainty analysis. This analysis provides a statistical representation of the net present value of the business case over a wide range of assumptions for several key variables which were found to be the primary drivers for determining the outcomes. To conduct this analysis the OPA used a standard uncertainty analysis methodology (Monte Carlo Simulation) which is commonly used in business case analysis when there is uncertainty in the input assumptions of a model.

The range of costs for each transmission scenario is compared with the diesel case in Figure 6 below.

These findings indicate that under a wide range of probable input assumptions, both scenarios (A and B) are expected to cost less than diesel in about 75% of the scenarios tested. This finding is a strong indicator that net economic benefits will materialize before 2053 if transmission connection is pursued.

A third strategic supply option that was evaluated for supplying remote communities was the utilization of the existing diesel generators in the communities integrated with local renewable resources, and battery storage, to minimize the use of diesel. In all cases diesel generation would still be needed to meet demand when variable


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renewable resources are insufficient or unavailable, such as when run of river hydro sites have insufficient flow to meet demand or wind is not available. Therefore continued investment in diesel capacity will be required to match load growth in each community.

The OPA has found it unlikely that all communities could be served economically by renewable generation integrated with diesel. However, in communities that are not currently economic to connect, renewable generation can economically reduce diesel consumption, improving local electricity supply and reducing the economic and environmental costs of diesel generation. Table 3 shows a cost comparison of the renewable supply options with diesel generation and transmission connection.

Transmission connection of Ontario’s remote northwestern First Nation communities would avoid the loss of $430M to $580M in diesel costs that will otherwise be spent over the 40 year study period, while providing a cleaner and more reliable electricity supply, which in turn reduces environmental risks. Transmission connection will also improve the living conditions within the communities by removing barriers to community development. This includes enabling increases to the housing stock, expansion of community services and the


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development / expansion of local businesses. These factors are critical to capturing business opportunities as the mining sector expands in this area.

The financial benefits of connecting remote communities will accrue to the parties who currently fund their electricity systems, most notably the Federal Government and Ontario electricity customers. Discussions toward a funding agreement may find a starting point in the notion that costs ought to be borne proportionally to use. Extensive and early engagement among the negotiating parties will be essential to achieve a firm agreement on cost sharing and allocation that will enable this project to be realized.



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6.0 PLAN FOR REMOTE COMMUNITIES IDENTIFIED AS UNECONOMIC TO CONNECT AT THIS TIME

As noted in section 4.1, five remote First Nation communities have been identified as uneconomic to connect at this time: Whitesand, Kiashke Zaaging Anishinaabek (also known as Gull Bay), Marten Falls, Fort Severn and Peawanuk. The OPA will work with each of these communities on an individual basis to identify their unique and individual needs and help them to develop solutions that will assist in cost effectively reducing diesel consumption in their communities.

The OPA will seek to work directly with community members to assess how future energy needs can be met in these five communities. The OPA will support community meetings and planning sessions, as well as collecting, presenting and processing baseline information required to proceed with integrated resource planning (“IRP”). Options assessed within the IRP process include conservation and renewable micro-generation projects.

It is important to note that preliminary studies indicate that maintaining a reliable electrical supply source to these five communities will require retaining diesel generation as the primary supply source. Wind and solar resources are intermittent in nature, and their operating profiles do not match well with community demand needs. However, the analysis indicates that properly sized renewable generation, coupled with battery storage, can be
used to economically displace some diesel generation.

Table 17 provides the results of a preliminary cost benefit analysis, which shows that the cost of integrating renewable generation and storage with existing diesel systems is likely to be more cost effective than continuing to operate solely with diesel generation. The analysis shown in Table 17 found that the resource combinations of wind/diesel and hydro/diesel, are the most cost effective and provide the greatest reduction in diesel consumption. There would also be environmental advantages to making this change, which are not captured in this preliminary cost benefit analysis below.


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There are a number of remote First Nation communities with small renewable generation units currently operating that help to reduce diesel consumption:

• Kasabonika Lake First Nation (wind turbines)
• Deer Lake First Nation (Shoulder Blade Falls GS)
• Kitchenuhmaykoosib Inninuwug First Nation (wind turbines)

Through the operating history of these projects, a significant amount of experience has been gained regarding the technical requirements, performance and community participation in renewable energy projects in remote communities. These learnings, along with those of similar successful projects in Canada and other countries, should be leveraged to ensure best practices are adopted in future projects.

The OPA is also aware that Whitesand First Nation is investigating development of a bio-mass based co-generation unit. The unit is planned to use local biomass resources and waste from its host saw mill to generate electricity that could substantially offset diesel use at the local diesel generation station in Armstrong. Progress associated with this project will be monitored and included in future analysis depending on its economic feasibility. The project is expected to create jobs and economic development for the community of Whitesand First Nation, which may contribute to load growth, and ultimately affect the economics of transmission connection.



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It should be noted that the unique opportunities and resources available in each community will determine the solution that will best fit a particular community's electricity needs.

Whitesand First Nation’s biomass proposal might be effective given the resource
availability, road access, connections to the non-First Nation communities of Collins and Armstrong, and a need for power supply driven by economic development activities being undertaken in the region. However, similar opportunities may not be available or effective for other remote First Nation communities. Each community will need a specific study tailored to its unique needs and opportunities.

7.0 CONNECTION PLAN FOR THE 20 REMOTE COMMUNITIES

The practical development of a staged connection plan must account for the geographic relationship between available supply points (Red Lake and Pickle Lake) and the various communities, the long-term load levels to be served as well as environmental challenges and land use constraints. This plan envisions line development being implemented in stages starting from Red Lake and Pickle Lake and moving north. As a transmission backbone is constructed, transformer stations and distribution feeders are assumed to be constructed to connect communities in the area. This allows for communities to be connected as transmission development progresses north along proposed corridors to the various communities.

The OPA in consultation with the Committee has considered and assessed a number of routing and line configuration options previously studied by Indian and Northern Affairs Canada (2001), the Waterpower Working Group (2009), the Central Corridor Energy Group. This plans leverages many of the same principles employed in those previous studies, while improving the balance between cost, reliability and operability.
The connection options identified in this plan have attempted to satisfy and balance the following criteria:

Feasibility, the ability to meet long-term electricity demand growth while meeting relevant technical criteria;

• Reliability, meeting the requirements of the Ontario Resource and Transmission
• Assessment Criteria (“ORTAC”);
• Cost;

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• Flexibility, including consideration of connecting future renewable generation sites
• and potential commercial/industrial customers that enhance economic opportunities;
• Environmental Performance; and
• Societal Acceptance.

7.1 Connection Configuration Options

The OPA has considered and assessed both radial and interconnected line configurations to connect the communities. This assessment concluded that a radial system will provide the most long-term value, while meeting system performance requirements. It should also be noted that the IESO's Ontario Resource and Transmission Assessment Criteria (Section 7.1 Load Security Criteria), allows for loads up to 150 MW to be served by single circuit radial lines.

The OPA has investigated the technical and economic feasibility of an interconnected system to connect the 20 remote communities north of Red Lake and Pickle Lake. The assessment identified a number of issues that make such an interconnection technically and economically infeasible:

• Neither Red Lake nor Pickle Lake are technically capable of supplying a majority of the communities should supply from one of these sources not be available;
• Reliability is likely to be lower, as the interconnected system would be more exposed to weather systems and related outages;
• Higher cost, as more high voltage transmission line would be required relative to a radial system, and there would be a much larger need for voltage control devices; and
• Fewer cost economies from sharing centrally located transmission stations among communities.

To maintain reliability in the remote communities this plan recommends that the diesel fleet currently operating in the communities be maintained in full operable condition, so that it will be available to supply the communities during planned and unplanned transmission outages. It is expected that the current installed capacity of the fleet would be sufficient to supply local community needs in emergency situations until at least 2030. This approach


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should ensure supply availability under most contingencies and has been used successfully by Five Nations Energy Inc. in supplying their communities for almost 10 years.

7.2 Geographic Configuration of the 20 Communities

The 20 communities are arranged in two natural clusters north of Red Lake and around Pickle Lake based on geography and technical challenges as shown in Figure 14 below.


Figure 14: Red Lake and Pickle Lake Remote Clusters



Six communities are located along a corridor north of the Town of Red Lake. These communities are Pikangikum First Nation, Poplar Hill First Nation, North Spirit Lake First Nation, Deer Lake First Nation, Sandy Lake First Nation, and Keewaywin First Nation.

These communities have an existing load of 6 MW, which is forecast to grow to 13 MW by 2033 and 29 MW by 2053.


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North of Pickle Lake, 14 communities form a 450 km arc extending from Sachigo Lake First Nation (300 km northwest of Pickle Lake) to Eabametoong First Nation (160 km east of Pickle Lake). These communities are Eabametoong First Nation, Neskantaga First Nation, Webequie First Nation, Nibinamik First Nation, Wunnumin Lake First Nation, Kingfisher Lake First Nation, Wawakapewin First Nation, Kasabonika Lake First Nation, Wapekeka First Nation, Kitchenuhmaykoosib Inninuwug First Nation, Bearskin Lake First Nation, Sachigo Lake First Nation, Muskrat Dam First Nation, and North Caribou Lake First Nation. These communities have an existing load of 9.5 MW which is forecast to grow to about 20 MW by 2033 and 44 MW by 2053.

It is expected that each radial line system from Red Lake and Pickle Lake can be developed independently allowing the opportunity for multiple lines to be developed and built at the same time. This may reduce the overall time to completion. The OPA has developed a preferred connection option for the Red Lake Cluster (Figure 15), while there are two connection configurations for the Pickle Lake Cluster (Figure 16 and Figure 17). The Pickle Lake Cluster configurations are differentiated by whether or not the Ring of Fire is to be supplied from Pickle Lake. In Scenario A, 4 remote communities are shown to connect to a proposed new line from Pickle Lake to the Ring of Fire. If the Ring of Fire is supplied from Pickle Lake, then a new 230 kV supply at Pickle Lake would be required. In Scenario B, the four communities are connected using two separate lines. These line connection configurations were developed in consideration of the planning criteria mentioned above.


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7.3 Red Lake Radial System

Figure 15: Connection Configuration for Red Lake Remote Cluster



The supply option from Red Lake is designed to serve the six communities north of Red Lake with a new 115 kV single-circuit line. This new 115 kV line would extend the existing transmission system at Red Lake TS north toward Pikangikum First Nation, then to North Spirit Lake First Nation, and would terminate at a new TS south east of Sandy Lake First Nation. To supply these communities step-down transformer stations (“TS”) are planned close to Pikangikum First Nation, North Spirit Lake First Nation and a third at the end of the line south east of Sandy Lake First Nation. Each community is assumed to be connected to the closest TS with a distribution feeder (44 kV or 25 kV). Pikangikum First Nation, and Poplar Hill First Nation would be supplied by the first TS. Deer Lake First Nation and North Spirit Lake First Nation would be supplied by the second TS while Sandy Lake First Nation and Keewaywin First Nation would be supplied by the station south of Sandy Lake.

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The project could begin construction once the supply reinforcements for Red Lake are completed (current expectation is for Red Lake to be reinforced by 2016 or 2017). It is expected that construction and commissioning of this project would take three to four years.

7.4 Pickle Lake Cluster

As mentioned earlier, scenarios for the Pickle Lake Cluster are differentiated by a new line from Pickle Lake to the Ring of Fire being developed and the 4 remote communities that are situated along the route being able to connect to the line.

A radial system to supply the Pickle Lake Cluster may be developed in four to five sections. The project could begin construction as soon as the new line reinforcement to Pickle Lake is completed (expected to be completed in 2015). It is expected that construction and commissioning of all of the sections could take about five years.

7.4.1 Pickle Lake Cluster Configuration for Scenario A (with Ring of Fire Supply Line)

With a 230 kV supply available at Pickle Lake, the Pickle Lake cluster of remote communities and up to 30 MW of future load at the Ring of Fire can be supplied from Pickle Lake. This configuration optimizes the connection arrangement of the 4 remote communities between Pickle Lake and the Ring of Fire by sharing the capacity and cost of their connection with customers to be served at the Ring of Fire. Figure 16 shows how connection of this cluster of 14 remote communities (10 north of Pickle Lake and 4 east of Pickle Lake) could be configured.

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The line to supply the Ring of Fire from Pickle Lake may be able to follow a proposed transportation/utility corridor between Pickle Lake and the Ring of Fire. A transmission line following this potential transportation/utility corridor could more economically connect the 4 remote communities in the area (Eabametoong, Neskantaga, Nibinamik, and Webequie), compared to Scenario B which is discussed below. There are also a number of potential hydro sites in the area, which range in potential size up to about 30 MW. These sites could be developed at a larger scale and thus be more economic to develop if transmission is available in the area. The future development of new hydro projects in northwest Ontario would be subject to a separate decision process and is not considered in this connection plan. However, generation in this area could provide incremental load serving capacity to the area, by providing both energy and reactive power locally. Developing these sites may also reduce the need for dedicated equipment that might otherwise be needed to maintain voltage and stabilize the system.

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Pickle Lake to Kingfisher Junction

A new 180 km, 115 kV single-circuit line is expected to extend from Pickle Lake to a new station that is expected to be built about 30 km south of Kingfisher Lake First Nation following existing all-season and winter roads where possible. The new station is assumed to have switching facilities to supply the following lines:

Kingfisher Junction to Muskrat Dam Line; and
Kingfisher Junction to Wapekeka Line.

To maintain system voltage stability on these lines reactive compensation devices (series capacitors or an SVC) would need to be placed at this station where they would be able to manage voltage centrally for all of the other radial lines.

Kingfisher Junction to Muskrat Dam Line


A new 115 kV single-circuit line from Kingfisher Junction is planned to extend 160 km northwest from Kingfisher Jct. to Muskrat Dam First Nation on a route passing North Caribou Lake First Nation. New TS are planned at North Caribou Lake First Nation and at Muskrat Dam First Nation. From the new Muskrat Dam TS, two distribution feeders would run north. One feeder would connect Sachigo Lake First Nation and the other to connect Bearskin Lake First Nation. This feeder is capable of connecting potential hydro generation sites along the Severn river system that First Nation in the area have identified as having high potential for development.

Kingfisher Junction to Wapekeka Line

A new 145 km, 115 kV single-circuit line is planned to extend from Kingfisher Junction to Wapekeka First Nation. A new TS could be located at Kingfisher Lake First Nation and at Wapekeka First Nation. Kingfisher TS would supply Kingfisher Lake First Nation and Wunnumin Lake First Nation through and new distribution feeder. Distribution feeders from Wapekeka TS would supply Kasabonika Lake First Nation, Wawakapewin First Nation and Kitchenuhmaykoosib Inninuwug First Nation.

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Pickle Lake to the Ring of Fire via Webequie Junction

To supply industrial customers at the Ring of Fire as well as Eabametoong First Nation, Neskantaga First Nation, Nibinamik First Nation, and Webequie First Nation a new 370 km, single-circuit 115 kV transmission line would be built from Pickle Lake to the McFaulds Lake area. Routing would be optimized to minimize the connection costs for these First Nation, while also following a potential transportation corridor currently being planned from the McFaulds Lake area to Pickle Lake via Webequie. There are both cost and line performance synergies created by connecting these four communities to a line supplying the Ring of Fire. Wunnumin Lake First Nation can also be connected more economically to Kingfisher TS by a distribution feeder, than in the alternative in Scenario B.

The OPA's load forecast for Ring of Fire anticipates about 25 MW by 2020, growing to 35 MW by 2030. There is a possibility that demand could grow further to about 60 MW by the mid 2030s. The OPA plans to monitor growth in the area over the medium and long term and propose additional future plans as needed.

A single-circuit 115 kV line from Pickle Lake to the Ring of Fire would have sufficient capacity to serve the forecast load of 5 MW in the four First Nation communities and approximately 35 MW of industrial load at the Ring of Fire. There are upgrades that could be done to expand this line's capacity somewhat. However, if more than 35 MW of load is expected to be served in the Ring of Fire area, then either an additional 115 kV line or an upgrade of the first 115 kV line to 230 kV operation would be required.

The current mine development timelines suggest that a transmission line to the Ring of Fire could be required as early as 2016 , which would require co-development of this facility with a new 230 kV Supply to Pickle Lake.

A cost sharing arrangement based on proportional use (in the long-term) would suggest that approximately 15% of the cost of the line (based on 5 MW of load) could be allocated to the remote community connection plan, while the mining customers at the Ring of Fire are assumed to contribute approximately 85%. The remote connection plan would also be responsible for the cost of the connection facilities (transmission stations, distribution lines,

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and distribution stations) where required to connect the communities to the transmission line.

7.4.2 Pickle Lake Cluster Configuration for Scenario B (without Ring of Fire Supply Line) This configuration for connecting the 14 communities north and east of Pickle Lake does not include or assume any supply to the Ring of Fire from Pickle Lake. As such Eabametoong and Neskantaga and the three communities east of Kingfisher Jct. are shown connected in a different configuration which requires incremental transmission line which would not be shared with industrial customers. The resulting cost to connect these communities in this configuration is expected to be higher than in Scenario A. Figure 17 shows this alternate connection configuration.



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Without the additional capacity required for the Ring of Fire, both 115 kV and 230 kV reinforcement of Pickle Lake would be sufficient to meet the anticipated demand growth in the Pickle Lake area including connecting and supplying the forecast load growth of the remote communities north of Pickle Lake until 2033. It is expected that a 115 kV Supply to Pickle Lake would reach its capacity to serve load around 2035 based on long-term growth expectations for loads that would be connected to it. Serving expected load levels after 2035 would require a new transmission line. A 115 kV line would also not have sufficient capability to supply resource developments at the Ring of Fire. However, there is the possibility that existing or future customers supplied from Pickle Lake could reduce their load on these facilities and free up capacity before 2035 which could be used to supply the remote community load growth after 2035. There is also potential for new mines or remote community load growth to increase demand on Pickle Lake beyond what the forecast, which would lead to supply limitations in the area before 2035.

The lines from Pickle Lake to Kingfisher Junction and Kingfisher Junction to Muskrat Dam are the same in Scenario B as in Scenario A and thus their description is not repeated.

Kingfisher Junction to Wapekeka LineA new 145 km, 115 kV single-circuit line is planned to extend from Kingfisher Junction to Wapekeka First Nation. New TS could be located at Kingfisher Lake First Nation and at Wapekeka First Nation. Kingfisher TS would supply Kingfisher Lake First Nation and Wunnumin Lake First Nation through and new distribution feeder. Distribution feeders from Wapekeka TS would supply Kasabonika First Nation, Wawakapewin First Nation and Kitchenuhmaykoosib Inninuwug First Nation.

Kingfisher Junction to Webequie Line

A new 195 km 115 kV single-circuit line from Kingfisher Junction to Webequie First Nation passing near Wunnumin Lake First Nation and Nibinamik First Nation is planned to terminate at a new TS near Webequie First Nation. New TS are also planned to be built near Wunnumin Lake First Nation, and Nibinamik First Nation to supply those communities.

Eabametoong - Neskantaga Line

A new 120 km 115 kV single-circuit line is planned to be tapped off of the Pickle Lake to Kingfisher Junction line at a point approximately 55 km northeast of Pickle Lake. This new

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line would run east to a point between Eabametoong First Nation and Neskantaga First Nation where it would terminate at a new TS. From this new TS, feeders would extend to Neskantaga First Nation and Eabametoong First Nation. The feeders to both communities would be between 70 km and 100 km.

Table 18 summarizes the line distances and costs for each of the line projects under both scenarios A and B. As noted elsewhere, each of these scenarios is dependent on upgrades to the existing system in the Red Lake and Pickle Lake areas.



8.0 INTERIM SOLUTIONS FOR ALL NORTHWEST ONTARIO REMOTE FIRST NATION COMMUNITIES

The OPA will work with the remote communities beyond Pickle Lake through the Committee and with others that are not included in this connection plan through a process to develop interim solutions to cost effectively reduce their reliance on diesel generation.

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The Feed-in-Tariff Program Two Year Review Report, released in March of 2012, stated that the government should explore potential partnership opportunities for renewable energy projects in off-grid remote Aboriginal communities. Partnerships between and among entities such as private sector renewable energy companies, interested remote communities and the parties who currently fund their energy infrastructure could enable participating communities to come up with innovative solutions to reduce some of their use of high-cost, high-emissions diesel generation. Evaluation of such interim solutions should include consideration for the sizes and scales of deployments appropriate to ensure the value of the long-term transmission solution.

9.0 DEVELOPMENT WORK REQUIRED AND TIMELINES

The following tasks will be necessary to develop the lines in this plan:

• Identification of a transmitter for project development;
• Detailed technical system studies;
• Route and site identification and assessment;
• Preliminary engineering;
• Preparation and submission of EA Terms of Reference;
• EA studies and field work, EA approval; and
• Preparation and submission of Leave to Construct application.

Delays in commencing and/or completing any of the tasks will lead to delays in the timing of some or all of the communities being connected. An additional factor not discussed in detail in this plan is the process and framework for arranging financing for these projects.

Substantial near term investment will be required in order to realize the long term benefits of reducing diesel use for electricity generation. To ensure successful project implementation, these investments should be made by the parties that stand to benefit, and should reflect the expected changes in those benefits over time. As discussed in Section 5, in order to implement a plan for transmission connection, the federal government, the province (representing both the rate base and tax base), the remote communities included in this plan for connection and any participating industrial customers will need to come to agreement on the extent of costs to be shared and the allocation of those costs among them.

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The Far North Act, being implemented by Ontario Ministry of Natural Resources, requires that all communities conduct land use planning prior to commencing the development of new transmission facilities; thus, the development timelines identified in this plan to connect remote communities may be affected by the progress communities make in completing their land use plans.