DELIVERING VALUE
to Canadians
2015 SUSTAINABLE ELECTRICITY™ ANNUAL REPORT
FIND OUT MORE
Copyright © 2015 by the Canadian Electricity Association.
All rights reserved.
“Sustainable Electricity” and “Sustainable Electricity
Company” are trademarks of the Canadian Electricity
Association.
Sustainable Electricity™ is a mandatory sustainability
program developed and implemented by Corporate Utility
Members of the Canadian Electricity Association (CEA).
The goals of the program are to integrate sustainability
in company operations; foster continuous performance
improvement; and advance the public acceptance
and support for utility operations through meaningful
engagement, collaboration, transparency, and
accountability. In that context, this report provides
an overview of the sustainability performance
of CEA Corporate Utility Members in 2014.
Thank you to the Sustainable Electricity Steering
Committee Members for their support in making
this report possible. CEA kindly asks that you read this
report electronically rather than from a printed copy.
When you see bold underlined text be sure to click for
more information. Find out more about CEA and the
Sustainable Electricity program here:
www.electricity.ca
www.SustainableElectricity.ca
www.SustainableElectricityCompany.ca
Discover how the electricity sector is delivering value to Canadians.HOME PAGE
Leading Through Pivotal Times Performance Transparency
Joint Executive Message
Letter from the Public Advisory Panel
Industry Roundtable
Materiality Assessment
Performance Highlights
Sustainable Development Index
ENVIRONMENTAL
PERFORMANCE 
Managing Impacts
decrease in total
SO2 emissions
9.7%
SOCIAL
PERFORMANCE 
Building Relationships
of CEA Members
have a stakeholder
engagement policy
90%
ECONOMIC
PERFORMANCE 
Powering Canada’s
Economy
investment made by CEA
Corporate Utility Members
in generation, transmission,
and distribution
$13B
INITIATIVES
Driving Environmental
Change
INITIATIVES
Achieving Results
Through Collaboration
INITIATIVES
Delivering Value
to Communities
ACHIEVEMENTS ASSURANCE
JOINT EXECUTIVE MESSAGE
We are pleased to report on the progress
made by CEA Corporate Utility Members
towards sustainability in 2014. These are
pivotal times for Canada’s electricity
sector. The infrastructure that sustains
the current electricity system is aging
and is in the process of being renewed
and modernized. A large portion of our
highly skilled workforce is preparing
to head into retirement over the next
five years as we manage through this
knowledge transfer and transition the
new workforce to meet the challenges
of the future. The energy relationship
between utilities and their customers
is also evolving from a one-way flow
of electricity to a more complex two-way
energy flow, challenging traditional
utility business models. In addition,
regulatory barriers to advancing
sustainability and innovation persist.
How utilities respond to these
challenges will ultimately define
the future of the electricity sector.
In order to deliver sustainable, reliable,
and cost-effective energy services to
Canadians, it will be vital for the sector
to address these challenges head on.
That means reducing its environmental
footprint; renewing and modernizing the
electricity system; tapping into colleges
and universities for skilled workers; and
collaborating at an even greater level
with policy makers, regulators, Aboriginal
Peoples, and local communities.
Last year’s sustainability performance
exemplifies the commitment and
perseverance of CEA Corporate Utility
Members to addressing these challenges
through innovative solutions. On
environmental performance, utilities
continued to achieve reductions in
GHG and air emissions, adding to
the substantial reductions achieved
over the last decade. The electricity
sector is projected to achieve further
air emission reductions in the next
five years as utilities invest in new
technologies, including carbon capture
and sequestration, higher efficiency gas
turbines, and renewable energy sources
such as wind, solar, and biomass.
CEA members are equally committed
to advancing the social and economic
aspects of sustainability. We’re pleased
to see that utilities are increasingly
engaging local communities and
Aboriginal Peoples in project planning
through formal stakeholder initiatives.
Employee health and safety is another
on-going priority, although challenges in
this area remain. While there were
improvements in the overall number
of injuries and their severity in 2014,
unfortunately, there were a few tragic
employee and public fatalities. The
safety of employees, contractors, and
the public is of paramount importance
to member companies, and they are
committed to greater vigilance and
performance improvement. On the
economic front, utilities are investing
billions of dollars in infrastructure
renewal and modernization to maintain
reliability and better serve customers.
In responding to the challenges of
today, it is important to recognize that
the efforts of utilities alone will not be
sufficient to drive sustainable outcomes.
Innovation needs partners. Collaboration
needs partners. We want our stakeholders,
including governments and regulators, to
partner with us to drive the change that
will deliver value to Canadians across
the country.
We are also grateful to the Sustainable
Electricity Public Advisory Panel
members for their review of utility
performance and their valuable advice.
In their 2015 annual letter to the CEA
Board (published in this report) they
noted several areas for performance
improvement and policy positioning,
notably on carbon pricing and
electrification of transportation. Both
of these policy suggestions are also
consistent with CEA’s Vision 2050.
CEA and its members look forward
to discussing these suggestions with
the Panel as part of the journey on
continuous improvement.
As you review the sustainability
performance of CEA Corporate
Utility Members outlined in this
report, we hope you will also share
your thoughts on how the sector
can create a stronger, more efficient
electricity system that delivers
environmental, social, and economic
benefits to all Canadian communities.
Anthony M. Haines,
President and Chief Executive Officer,
Toronto Hydro Corporation,
Chair, CEA Board of Directors	
Max Cananzi,
President and Chief Executive Officer,
Horizon Utilities Corporation,
Chair, CEA Board Committee on Sustainability	
Hon. Sergio Marchi,
President and Chief Executive Officer,
Canadian Electricity Association
The Executives from left to right:
Anthony M. Haines, Max Cananzi,
and the Hon. Sergio Marchi.
4HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
LETTER FROM THE PUBLIC
ADVISORY PANEL
The members of the Sustainable
Electricity program’s Public Advisory
Panel are pleased to submit this annual
letter of advice to the CEA Board of
Directors. Our role is to provide the
perspective of informed public
representatives on the environmental,
social, and economic performance
of Canada’s electricity industry as
measured against the principles and
indicators of the program.
The Panel continues to be pleased
with the progress made by CEA
members in 2014 on several fronts,
including reductions of greenhouse
gases, sulphur dioxide, and nitrogen
oxides. Good progress continues to
be made on the implementation
of environmental management
systems, while public and stakeholder
engagement is also improving. Health
and safety performance is another area
in which some progress is being made
in terms of total number and severity
of injuries, but we note that there were
a few tragic employee and public
fatalities in 2014.
The main area in which performance
has slipped is priority spills, which
has increased in each of the past
two years and continues to require
focused attention. We also note that
further progress must be made on
developing more meaningful
performance metrics related to
Aboriginal relations and workplace
diversity issues, and we encourage
CEA members to focus on these
areas in the coming year.
We observe that investment in
infrastructure decreased slightly in
2014 despite the need for sustained
effort in this regard. It is crucial that the
sector continues to invest in infrastructure
to ensure system reliability. At the same
time, it must also consider issues
such as climate change adaptation in
investment planning. We understand
that energy regulatory agencies across
Canada may not accept the critical
need by CEA members for funds to
support both infrastructure renewal and
climate change adaptation planning and
implementation. This continues to be
a barrier to CEA members fulfilling
their Sustainable Electricity program
commitments and will ultimately cost
Canadians in the long run if the necessary
investments are not made.
As CEA members pursue Vision 2050
over the coming decades, the Panel
expects to see concentrated efforts to
improve performance in all areas of
the Sustainable Electricity program
and related indicators, and hence
improvement in the Sustainable
Development Index. Further, we expect
to see all CEA member companies
branded as Sustainable Electricity
Companies, a designation that has
already been achieved by several
leading utilities. We also publicly
encourage non-member companies
to consider voluntarily reporting their
sustainability information to CEA on an
annual basis and to also seek the
Sustainable Electricity Company
designation, which is available to them
irrespective of CEA membership. Our
desire is to see all electricity companies
in Canada demonstrating holistic and
integrated approaches to sustainability
and, in turn, for Canada to become
recognized as the world leader in this
regard. We believe that this goal is
within reach.
Finally, the Panel urges CEA members
to develop and agree upon a clear
policy statement or declaration on
carbon pricing. This has become a
significant issue in Canada and requires
policy makers to work together to
implement pricing in a manner that
properly serves Canadians and the
world. We also believe CEA members
should work together on a clear policy
statement on the role the electrification
of transportation will play in the evolution
of the electricity sector in Canada.
Hon. Mike Harcourt,
Chair, Public Advisory Panel,
CEA Sustainable Electricity program
The Hon. Mike Harcourt
Public Advisory Panel Members
Mr. Anthony M. Haines
President and Chief Executive Officer,
Toronto Hydro Corporation
Chair, CEA Board of Directors
5HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
INDUSTRY ROUNDTABLE:
PERSPECTIVES ON
SUSTAINABILITY
CEA invited four senior electricity sector leaders to share their thoughts on
what it will take to build a sustainable electricity system that can reliably
meet the current and future energy needs of all Canadians.
Q: 	What is the most important thing for Canadians to understand about
the future of the country’s electricity system?
LETHBRIDGE: Renewing and modernizing
the electricity system will require a
meaningful conversation about how
electricity rates are set, and the role
that governments and regulators play
in the process. We want to ensure policy
and regulatory decisions allow for
greater innovation and sustainability
that will benefit our customers over
the long term.
CLARK: Canada has an electricity
system that ranks among the best in
the world, powering our society and
our economy. Yet the existing electricity
supply and delivery infrastructure is
aging and new facilities are needed
to meet changing demands. More
than ever, the well-being of Canada
will depend on a secure, reliable,
sustainable supply of electricity.
FREHLICH: The role of the electricity
system is evolving faster than ever
before. In the past, it was relatively
straightforward: generating power in
central locations and transmitting that
power through wires to customers. It
was a one-way network from supplier
to consumer. That is quickly changing
to become a two-way, consumer-
oriented “Internet of electricity” that
is giving Canadians greater choices
and control over how power is supplied
and consumed.
ARSENAULT: Canadians should know
that the electricity system of the future
will be an intelligent, end-to-end system
that leverages many new technologies.
It will also require utilities to work in
partnership with their customers. An
engaged customer who looks beyond
their own bill will be key to shaving
peaks, offsetting new builds, and
enhancing renewable integration.
Ave Lethbridge,
Executive Vice President and
Chief Human Resources and
Safety Officer, Toronto Hydro
Corporation
Colin Clark,
Chief Technical Officer,
Brookfield Renewable
Energy Group
Dennis Frehlich,
Executive Vice President and
Chief Operating Officer, AltaLink
Lynn E. Arsenault,
Vice President of Customer
Service, New Brunswick
Power Corporation
What do you expect from
your electricity company?
Share your thoughts @CDNelectricity.
6HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
Q: 	What is being done — or needs to be done — to help facilitate that conversation with your customers?
CLARK: Considering the complexity of
the electricity system, which can be
quite mysterious to the public and
government alike, making a case for
renewed investment can be difficult. To
tackle that problem, the sector needs to
use solid facts and communicate
effectively, engaging in a two-way
dialogue with all of our stakeholders to
ensure the future of the industry is
directly informed by public opinion.
FREHLICH: Because it’s easy to take
electricity for granted, the sector needs
to do a better job explaining the value of
electricity and how the grid will deliver
that value by enabling a different future.
As we begin to decide how sustainable
we want our electricity to be, the choices
made today will define the role of the
grid for decades to come.
ARSENAULT: At the same time, we
have to recognize that value will not
be the same for everyone. The sector
will need to better understand what
different types of customers value
in order to provide choices that are
easy to access and understand.
Q: What regulatory or policy changes will be needed for the system to evolve and accommodate new
technologies and new business models?
CLARK: As the environmental, social,
and economic landscape changes,
utilities can no longer apply the
traditional model upon which we built
the system. New policies must take into
account longer development lead times
and the increased cost of investment.
New business models must balance the
advantages of new technologies with
the remaining value of existing systems.
Regulators must also weigh the overall
benefits of prudent investment against
the overall cost impact on customers.
FREHLICH: The challenge will be to
make regulatory and policy changes in
a way that both enables the future and
respects past investment decisions.
Changes will need to be integrated
across supply, consumption, and
transportation; policy will need to
provide consumers with greater choice
and flexibility, and encourage and help
industry to work out the technical and
economic value of new technologies.
ARSENAULT: What will need to
be considered and enhanced is
performance-based regulation that
ensures utilities are remunerated for
the efforts to leverage energy efficiency,
demand response, and distributed
generation to their maximum potential.
The regulators’ support will be key to
shifting our business model to become
energy service providers that empower
people’s lives.
7HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
Q: How is the CEA’s Sustainable Electricity program contributing to the achievement of the above?
LETHBRIDGE: I love the notion of the
triple bottom line: providing economic,
environmental, and social benefits, without
having to trade one for the other. That
speaks to innovation in a way everybody
can recognize, leading to better decision-
making. CEA’s Sustainable Electricity
program provides a unified platform for
starting a strategic conversation with
stakeholders. Utilities can learn from
each other and compare best practices,
which raises the bar for the entire sector
and benefits all Canadians.
CLARK: The Sustainable Electricity
program is particularly effective because
it provides guiding principles for
sustainability that are reinforced
by key sustainability performance
indicators, reviewed by an independent
Public Advisory Panel, and verified
by an external verifier. Sustainable
development is an imperative for every
enterprise in Canada. The electricity
sector cannot expect to meet the
challenges of the future without
addressing sustainability and working
in partnership with its stakeholders.
FREHLICH: It’s keeping our industry
focused on the long-term goal of
sustainability by setting out a balanced
path of social, environmental, and
economic measures. Our collective
commitment to progressing as an
industry and challenging ourselves
to demonstrate measurable progress
in these areas will continue to drive
us toward achieving a sustainable
electricity grid into the future.
Q: In what ways do you think the electricity sector is delivering value to Canadians?
LETHBRIDGE: Today, there’s the core
work that utilities do: keeping the lights
on and delivering a safe, reliable supply
of electricity right to our customers’
doors. We do that really well. Where we
will bring the most value to Canadians,
though, is by looking at the longer term
and planning to meet the electricity
needs of both today and tomorrow in
a sustainable way.
FREHLICH: The electricity sector delivers
real value to Canadians every second
of every day. It will be instrumental
in delivering value into the future by
providing lower carbon electricity, more
options to use greener transportation
such as electric vehicles, and the ability
to store electricity when the price is low
and use it later when needed. I’m sure
there is untapped value we haven’t even
dreamed of yet.
ARSENAULT: We’re delivering value by
providing reliable electricity at low rates
from mostly non-emitting sources.
Unfortunately, most of this is taken
for granted as an invisible commodity.
8HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
MATERIALITY ASSESSMENT
OF SUSTAINABILITY ISSUES
2014 marked the five-year anniversary of the Sustainable Electricity program, providing an opportunity to
reflect on the foundations of the program and work to further consolidate the achievements and improve
its core elements. This review included the commissioning of a materiality assessment to ensure the focus
of the program and the Annual Report reflect the sustainability issues that are most important to national
electricity sector stakeholders. Based on stakeholder input, the following material sustainability issues were
identified for the sector (Figure 1).
IncreasingStakeholderImportance
Increasing Business Impact
Water
quality
Air
emissions
Waste
Community
development
and investment
Employee
health
and safety
Public health
and safety
Land and
biodiversity Employee
relations
and
recruitment
Water availability
Governance
Business model
pressures
Stakeholder
engagement and
communication
Electricity demand
Aboriginal
relations
Climate
change
adaptation
GHG
emissions Infrastructure,
renewal and
grid modernization
Environment Social Economic
Figure 1  Materiality Matrix
The matrix provides guidance on
the most important sustainability
issues to stakeholders and the
business impacts of those issues.
CEA used this matrix to further
refine the program’s Sustainable
Development—Corporate
Responsibility Policy and the
performance indicators. Some
of the new performance indicators
emerging from the materiality
assessment are still being
developed and will be reported
on in future years.
New Sustainable
Development—Corporate
Responsibility Policy
9HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
NET GENERATION BY FUEL TYPE (GIGAWATT-HOURS)
–
2014 2013 PERCENTAGE
DIFFERENCE
Coal 39,099 42,868
Oil 2,099 1,994
Diesel 308 283
Natural gas2
13,724 13,946
Hydroelectric 165,607 171,641
Nuclear 52,786 48,815
Other renewables 4,901 4,585
TOTAL NET
GENERATION 278,525 284,133
Renewable energy
purchased from non-CEA
member companies 7,409 5,707
Non-renewable energy
purchased from non-CEA
member companies 11,580 –
5.3%
-8.8%
-1.6%
-3.5%
8.8%
8.1%
6.9%
-2.0%
29.8%
2014 2013 PERCENTAGE
DIFFERENCE
Total length of
distribution lines 714,836 705,807
Total length of
transmission lines 117,936 117,569
TRANSMISSION AND DISTRIBUTION LINES (KILOMETRES)
1.3%
0.3%
CEA MEMBER PERFORMANCE HIGHLIGHTS¹
¹	 Some 2013 performance data may have changed from the previous annual report due to
changes submitted by members in 2014. In addition, some indicators may have changed
based on the materiality assessment.
10HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
-9.7%
-3.4%
-8.2%
-4.3%
-2.7%
-15.6%
-8.7%
-13.9%
1.1%
2014 2013 PERCENTAGE
DIFFERENCE
Total gross annual sulphur dioxide
emissions (thousand tonnes)2, 3
218.05 241.52
Sulphur dioxide net fossil intensity
(tonnes/GWh)4
3.95 4.09
Sulphur dioxide net system intensity
(tonnes/GWh)3, 4
0.78 0.85
Total gross annual nitrogen oxide
emissions (thousand tonnes)2, 3
101.10 105.63
Nitrogen oxide net fossil intensity
(tonnes/GWh)4
1.81 1.79
Nitrogen oxide net system intensity
(tonnes/GWh)3, 4
0.36 0.37
Total gross annual mercury
emissions (kg) 567.84 672.69
Mercury net coal-fired intensity
(kg/TWh)4
14.33 15.69
Mercury net system
intensity (kg/TWh)4
2.04 2.37
2014 2013 PERCENTAGE
DIFFERENCE
Total gross annual direct carbon dioxide
equivalent emissions from fossil
generation (million tonnes)2, 3
47.26 50.16
Carbon dioxide equivalent net
fossil intensity (tonnes/GWh)4
855.70 848.88
Carbon dioxide equivalent
net system intensity
(tonnes/GWh)3, 4
170.00 176.54
Number of priority spills3
151 129
Total sulphur hexafluoride used
for maintenance purposes
(kilograms)3
4,673 6,617
Companies with an ISO 14001:2004
consistent environmental
management systems (per cent)3
87 87
-3.7%
-29.4%
-5.8%
0.8%
0%
17.1%
ENVIRONMENT
Improved
performance
Decreased
performance
No change
²	 The 2014 natural gas generation and SO2, NOx, and CO2 emissions include 50 per cent ownership
share of Ontario Power Generation Inc. in Portlands Energy Centre (Toronto) and Brighton Beach
(Windsor). Other owners, TransCanada (Portlands) and ATCO Power (Brighton) did not report the
remaining 50 per cent of generation and associated air emissions.
³	 These indicators are included in the Sustainable Development Index (SDI).
4	 Intensity calculations are based on total emissions divided by net fossil and system generation.
11HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
2014 2013 PERCENTAGE
DIFFERENCE
All injury/illness frequency rate
(injuries per 200,000 hours)3, 5
1.59 1.72
Lost-time injury frequency rate
(lost-time injuries per 200,000 hours)3, 5
0.70 0.73
Lost-time injury severity rate (calendar
days lost per 200,000 hours)3, 5
16.73 19.49
Companies with a commitment to
non-discrimination (per cent) 97 –
Companies with a formal stakeholder
engagement policy (per cent)3
90 77
Companies with diversity programs
(per cent) 57 37
Companies that report on sustainability
performance (per cent)3
67 57
Companies with procedures requiring
early consultation or engagement with
Aboriginal communities (per cent)3
100 100
Companies with procedures for ensuring
training and employment opportunities
are provided to Aboriginal employees
(per cent)3
67 63
2014 2013 PERCENTAGE
DIFFERENCE
Total value of company charitable
donations ($ millions)3
27.517 33.696
Total capital expenditures on
new/refurbished generation
infrastructure ($ billions)3
4.104 5.246
Total capital expenditures on
new/refurbished transmission
infrastructure ($ billions)3
6.034 5.704
Total capital expenditures on
new/refurbished distribution
infrastructure ($ billions)3
2.988 3.295
System Average Interruption Duration
Index (SAIDI) excluding significant
weather events (duration in hours)3, 6
5.1 5.9
System Average Interruption
Frequency Index (SAIFI) excluding
significant weather events
(interruptions per customer)3, 6
2.3 2.5
Total energy saved through energy
conservation initiatives (MWh) 1,087,445 1,688,946
SOCIETY ECONOMY
–
-7.6%
-4.1%
-14.2%
6.4%
0%
16.9%
54.1%
17.5%
-18.3%
-21.8%
-9.3%
-13.6%
-8.0%
-35.6%
5.8%
5	 These figures also include Hydro Quebec’s safety performance related to generation, transmission,
and distribution operations.
6	 These figures also include data from the City of Red Deer Electric Light and Power, Enersource Hydro
Mississauga, Hydro-Québec, Newmarket-Tay Power Distribution Ltd., Northland Utilities, Oshawa PUC
Networks, PowerStream Inc., St. Thomas Energy Inc., Veridian Connections, Waterloo North Hydro,
ATCO Electric Yukon, and London Hydro.
12HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
0
25
50
75
100
Overall
SDIIndicatorScore
Environment Social Economic
20142013201220112010
SUSTAINABLE DEVELOPMENT INDEX (SDI)
CEA uses an innovative Sustainable Development
Index (SDI) to measure the overall sustainability
performance of its Corporate Utility Members. The
SDI provides a high-level overview of sustainability
performance for the last five years against a baseline
of 2008–2009. The SDI is calculated as a score
between -100 and +100, determined by the level of
performance in the three sustainability pillars
(environmental, social, and economic) relative to
the baseline. While the individual sustainability
trends have fluctuated over the years, the overall
performance of CEA Corporate Utility Members
continues to stay in the positive score range of
the SDI as shown in Figure 2 below.
SDI
Figure 2  Sustainable Development Index, 2010–2014 Performance Relative to 2008–2009 Baseline
View of Brookfield Renewable Energy
Group’s Aubrey Hydro Station in Ontario.
Photo courtesy of Brookfield Renewable
Energy Group.
13HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
SDI PERFORMANCE SUMMARY (2010–2014)
Environment
CEA members’ environmental performance over
the last five years has been generally positive,
driven primarily by continued emissions
reductions through decommissioning of coal
units in several provinces, shift to high-efficiency
natural gas fired facilities, and investments in
renewable sources such as wind, solar, and
biomass. As shown in Table 1, one area that
continues to have a negative impact on the SDI
is priority spills, although the majority of these
spills are limited to a few member companies.
While these companies take immediate action
to clean-up affected areas, there are on-going
challenges, including aging equipment, severe
weather, and in some cases, vandalism. These
companies are working to reduce the number
of priority spills through new investments, including
in secondary spill containment systems.
Social
Of the three pillars, CEA members’ performance
since 2010 has been strongest in the social pillar
of the SDI, except for brief decline in performance
in 2013. Performance in this area rebounded in
2014 due to a reduction in the number of
employee-related injuries and the severity of those
injuries. Formalized commitments to engaging
Aboriginal communities and stakeholders also
helped improve the overall score in the social
category of the SDI.
Economic
CEA members’ economic performance has seen
the greatest fluctuation over the last five years,
primarily due to the unpredictable frequency
and duration of outages, as well as varying
levels of investment in new and refurbished
infrastructure based on project cycles. While
outage frequency and duration have had a
significant impact on the economic score of
the SDI in previous years, both frequency
and duration levels improved in 2014 over
the previous year, but compared to the SDI
baseline, the performance still had a negative
contribution (Table 1).
Table 1  Sample of Performance Indicators with Greatest Positive and Negative Contribution to the Sustainable Development Index
2010 2011 2012 2013 2014
Metrics with the Greatest
Positive Contribution
Engagement with
Aboriginal Communities
during Project Planning
and Development
Sulphur Dioxide
Emissions
Charitable Donations Sulphur Dioxide
Emissions
Sulphur Dioxide
Emissions
Investment in Generation
Infrastructure
Investment in Generation
Infrastructure
Investment in Generation
Infrastructure
Investment in Generation
Infrastructure
All Injury/Illness
Frequency Rate
Metrics with the Greatest
Negative Contribution
Priority Spills System Average
Interruption Duration
Index
ISO Consistent EMS Priority Spills Priority Spills
Formal Stakeholder
Engagement Policy
System Average
Interruption Frequency
Index
System Average
Interruption Frequency
Index
System Average
Interruption Duration
Index
System Average
Interruption Duration
Index
Note: Since the previous report, the SDI baseline of 2007–2008 has been changed to 2008–2009 to better reflect the sector’s sustainability performance over the last five years.
14HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
9.7%DECREASE
in total SO2 emissions
4.3%DECREASE
in total NOX emissions
5.8%DECREASE
in total CO2eq
emissions from fossil
generation
15.6%DECREASE
in total mercury
emissions
ENVIRONMENTAL
PERFORMANCE
Delivering value by mitigating
environmental impacts
CEA members are committed to reducing adverse
environmental impacts by investing in emission
abatement technologies, renewable energy sources,
ecosystem management, and enhanced environmental
management practices. These measures, along with
partnerships with stakeholders, can lead to positive
outcomes for communities and their environment.
15HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
CAPITAL POWER
From coal mine to farmland: Delivering value through reclamation
The Genesee Mine near Warburg,
Alberta, has fuelled Capital Power
Corporation’s coal-fired Genesee
Generating Station for more than two
decades. As portions of the mine reach
their end of life, Capital Power is committed
to returning the land to a mix of productive
farmland and wildlife habitat, restoring the
local landscape to pre-mining conditions
so that it can be used once again by
people and animals alike.
Capital Power’s ongoing reclamation plan
for the mine includes not only reforestation
but also the re-establishment of wetlands
and creeks, the creation of wildlife corridors,
and the renting of reclaimed land to local
farmers. The biggest challenge facing this
project, however, is the fact that the mine
was built on former farmland: its previous
agricultural use introduced a number
of undesirable weed species, which
can hinder the success of large-scale
tree plantation.
To address this challenge, Capital Power
began co-funding reforestation research
and tree-planting projects at the University
of Alberta in 2008. That investment paid off
last year with the establishment of the East
Wetland: a native-species wetlands area
within the reclaimed portion of Genesee
Mine, where more than 30,500 trees have
been planted on 7.5 hectares of land.
The East Wetland also serves as a field
trial for adapting various reforestation
systems to the unique soil conditions
around the mine, important research
vital to creating a natural area that will
one day develop into a native forest.
Treatments being tested include weed-
suppressing ground cover (such as
wood mulch salvaged from land-clearing
operations and biodegradable horticultural
film mulch) and the use of large planting
stock such as poplar poles and bare-
root aspens.
After the first growing season in 2014,
the trees have established very well.
Clear differences have also been noted
among the tested treatments, with the
salvaged wood mulch providing both
the best weed suppression and the
most natural-looking soil surface.
Mother Nature also helped.
“We had good conditions and consistent
rains throughout the summer,” says
Eckehart Marenholtz, Registered
Professional Forester and a Capital
Power reforestation consultant. “By fall,
there were encouraging signs that the
aspens had established on site and
would continue to grow.”
Going forward, the East Wetland will
provide valuable information for
developing a natural-area reforestation
system at Genesee Mine as well as other
similar reclamation projects across the
country. What’s more, as wildlife returns
to the area and local farmers are able to
use the reclaimed land to grow crops
such as canola, barley, wheat, and alfalfa,
this project will deliver increasing value
to the area’s ecosystems and economy.
“By fall, there were encouraging signs that the aspens had
established on site and would continue to grow.”
Eckehart Marenholtz
Registered Professional Forester
Over 30,500 trees were planted onto
lowlands and uplands surrounding a lake
as part of Capital Power’s Genesee Mine
Reclamation project. A salvaged wood mulch
plot with the lake in the background shows
the aspen and white spruce trees one month
after planting. Photo courtesy of Capital
Power Corporation.
A tree planter from Chickadee Reclamation
plants bare-root aspen saplings as part
of Capital Power’s innovative reclamation
initiatives (Genesee Generating Station is
shown in the background). Photo courtesy
of Capital Power Corporation.
16HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 1:
ENVIRONMENTAL STEWARDSHIP
Manage facilities and operations through a risk-based
approach that avoids or minimizes impacts on the
environment (air, land, and water), and supports ecosystem
protection and conservation of biological diversity.
Environmental Management
Systems and Regulatory
Compliance
Implementation of Environmental
Management Systems (EMS) consistent with
IS0 14001:2004 is a mandatory requirement
of the CEA Sustainable Electricity program
given it is an effective framework for
identifying and managing environmental
impacts of the sector. By the end of 2014,
87 per cent of CEA Corporate Utility Members
had an EMS in place that conformed to the ISO
14001:2004 standard—the same percentage
as reported in 2013 (Table 2). CEA members
without a fully conformant EMS are either
fine-tuning their existing system or working
to implement a new system. CEA expects
the remaining companies to fully implement
their new systems in the next few years.
An EMS also provides a framework for
identifying legal environmental requirements.
In 2014, only one CEA member company
reported a non-compliance fine for violating
federal/provincial/territorial laws and
regulations. However, several member
companies received an additional nine
non-compliance notices and orders for
minor infractions, which they took immediate
action to rectify.
Air Emissions
The electricity sector’s contribution to
national air emissions is steadily declining,
helping to reduce smog and its associated
health impacts. Relative to 2000, the
electricity sector’s sulphur dioxide (SO2),
nitrogen oxide (NOX), and mercury emissions
have all declined by just over 50 per cent.
As of 2013 (latest available data from
Table 2  Implementation of ISO 14001:2004-consistent
Environmental Management Systems
Figure 3  SO2 Emissions and Intensity
2013 2014
CEA Corporate Utility
Members with ISO 14001:
2004-consistent EMS
87 % 87 %
Absolute Emissions Fossil Intensity Net System Intensity
ThousandsofTonnes
0
50
100
150
200
250
300
20142013201220112010
0
1
2
3
4
5
6
266.73
239.73
248.03
241.52
218.05
3.954.094.043.924.14
0.780.850.870.850.99
Tonnes/GWh
17
PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION
AND ADAPTATION
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
Environment Canada), the electricity
sector was responsible for 22.6 per cent
of SO2 emissions (277.90 thousand
tonnes), 7.8 per cent of NOX emissions
(161.02 thousand tonnes), and 22.6 per cent
of mercury emissions (895.08 kg) in Canada.7
In 2014, CEA Corporate Utility Members
were responsible for 218.05 thousand tonnes
of SO2, 101.10 thousand tonnes of NOX
and 567.84 kg of mercury, a reduction of
9.7 per cent, 4.3 per cent, and 15.6 per cent
relative to 2013 performance levels, respectively
(Figures 3, 4, and 5). The net system intensity
(all generation types) also dropped slightly
for all air emissions, although NOX fossil
intensity increased slightly due to use of
higher-emission intensive units for meeting
peak demand.
The continued decline in air emissions is a
result of a number of factors, including the
decommissioning of coal-fired units in
several provinces (with Ontario making the
largest contribution), increased use of natural
gas in Alberta, Ontario, and Nova Scotia, and
greater integration of renewables into the
overall national fuel mix. CEA and its electricity
generation members are continuing to
work with federal, provincial, and territorial
governments to further strengthen the
regulatory framework for air emissions.
As existing plants are retired and new
technologies become more economically
viable, utilities will begin investing in
advanced facilities and processes to further
reduce their emissions. Ontario Power
Generation Inc. (OPG), for example,
converted two of its coal-fired plants to
biomass, which releases approximately
75 per cent less NOX than coal and produces
virtually no SO2 emissions. Others, such as
ATCO Power, continue to deliver incremental
emission reductions at existing operations
through combustion optimization projects
while continuing to evaluate optimal future
power generation solutions.
Ecosystem Protection and
Biological Diversity
CEA Corporate Utility Members are taking
proactive action to understand, minimize, and
manage the potential environmental impacts
associated with their operations through
collaboration with government, conservation
authorities, Aboriginal groups, academia, and
other stakeholders. In 2014, this included
implementing avian protection plans to reduce
bird collisions with power lines, partnering
Figure 4  NOx Emissions and Intensity
Figure 5  Mercury Emissions and Intensity
Absolute Emissions Fossil Intensity Net System Intensity
ThousandsofTonnes
0
20
40
60
80
100
120
140
160
180
200
20142013201220112010
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
118.41
109.04
107.04
105.63
101.10
1.811.79
1.74
1.781.84
0.360.370.380.390.44
Tonnes/GWh
Absolute Emissions Fossil Intensity Net System Intensity
Kilograms
0
200
400
600
800
1,000
1,200
1,400
20142013201220112010
0
5
10
15
20
25
1,235.07
846.79
739.80
672.69
567.84
14.33
15.69
17.22
19.65
23.72
2.042.372.592.99
4.57
Kg/TWh
7	 Environment Canada, National Pollutant Release Inventory (NPRI), http://www.ec.gc.ca/npri.
18
PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION
AND ADAPTATION
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
with conservation groups such as Ducks
Unlimited Canada to restore wetlands
and other wildlife habitats, and using
innovative new construction techniques
to reduce the space and structures
required for transmission line rights-of-
way. Along with these efforts, CEA and
its members continue to work closely
with the federal government and other
stakeholders to improve the regulatory
framework around species conservation
and environmental assessment.
Priority Spills
Priority spills are defined as a petroleum
spill that is over 500 litres, contains over
one gram of polychlorinated biphenyls
(PCBs), and any volume of petroleum-
based or PCB-contaminated substance
that enters a water body. Given their
potential for adverse environmental
impacts, CEA closely tracks the number
of spills reported by its members each
year and the actions taken to remediate
them. As Figure 6 shows, a total of
151 priority spills were reported in 2014,
an increase of 17.1 per cent over 2013.
As these spills can result from a wide
variety of causes ranging from aging
transformers and leaking equipment to
weather-related incidents and acts of
vandalism, preventing them entirely
remains a challenge despite the use of
proactive inspections and assessments.
Fortunately, the majority of these spills
are contained to just a few member
companies and, in every instance, these
companies respond according to all
applicable procedures and regulatory
requirements to ensure a proper cleanup
and minimize any adverse environmental
impacts. To reduce the total number
of spills and mitigate their impacts,
CEA members are phasing out older
equipment, investing in emergency spills
response training, and installing secondary
liquid containment systems.
Figure 6  Annual Priority Spills
NumberofSpills
0
20
40
60
80
100
120
140
160
20142013201220112010
151
129
102
97
107
Ontario Power Generation’s Atikokan Biomass Station is the largest capacity 100 per cent biomass fueled plant in
North America. Photo courtesy of Ontario Power Generation Inc.
19
PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION
AND ADAPTATION
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 2:
CLIMATE CHANGE MITIGATION
AND ADAPTATION
Mitigate greenhouse gas emissions from facilities
and operations, and adapt to the adverse effects
of climate change on electricity infrastructure.
Greenhouse Gas Emissions
Currently responsible for approximately
12 per cent of GHG emissions in Canada,
the electricity sector has reduced its carbon
footprint significantly—about 45 million
tonnes (Mt) since 2000.8 The elimination of
more than 7,000 MW of coal-fired electricity
by OPG alone has helped the sector reduce
nearly 25 Mt of GHG emissions per year,
making it one of the largest climate change
initiatives ever undertaken in North America.
In fact, 99.7 per cent of the electricity OPG
produces now is free of GHG and air
pollutants, helping to maintain the emission
reductions achieved through its coal-plant
retirement strategy. OPG and other member
utilities from across the country are also
making significant investments in new
generation facilities, including large as well
as run-of-river hydro, wind, solar, biomass,
natural gas, and carbon capture to reduce
their overall carbon footprint. For instance,
SaskPower’s 120 MW Boundary Dam Carbon
Capture and Storage (CCS) facility came
into operation in 2014, which also helped
decommission an aging 65 MW Unit at
the Boundary Dam Station.
In 2014, CO2eq emissions from CEA
Corporate Utility Members decreased to
47.26 Mt, a reduction of 5.8 per cent from 2013
(Figure 7). The CO2eq net system intensity also
decreased to 170.00 tonnes/GWh from 2013
levels, a reduction of 3.7 per cent. However, the
CO2eq net fossil intensity increased slightly
(0.8 per cent) to 855.70 tonnes/GWh from
2013 levels. While the year-over-year trend
will continue to fluctuate in the short term,
new investments in low-emitting generation,
purchase of renewable energy from other
suppliers, combined with plant retirements
will further reduce the sector’s contribution
to GHG emissions.
Figure 7  CO2eq Emissions and Intensity
Absolute Emissions Fossil Intensity Net System Intensity
MillionsofTonnes
0
10
20
30
40
50
60
70
20142013201220112010
0
100
200
300
400
500
600
700
800
900
1,000
60.63
54.41
51.97
50.16
47.26
855.70848.88846.39
890.59
941.31
170.00176.54182.29192.30224.26
Tonnes/GWh
8	 Environment Canada, National Inventory Report 1990-2013: Greenhouse Gas Sources and Sinks in Canada, www.ec.gc.ca.
Seven Sisters Generating Station on the Winnipeg River.
Photo courtesy of Manitoba Hydro.
20
PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION
AND ADAPTATION
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
Climate Change Adaptation
Climate change and extreme weather events
will continue to have a profound impact on
the long-term reliability and resiliency of
Canada’s electricity generation, transmission,
and distribution networks. Specifically, seasonal
variability in precipitation, temperature,
evaporation, and lake levels—and their
divergences from normal ranges—are the key
elements of concern. In 2014, 63 per cent of
CEA members identified climate change as
an enterprise risk issue.
To address this issue, CEA members are
currently working on a sector-specific template
for developing climate change adaptation plans.
Several member companies also took steps in
2014 to assess the potential vulnerabilities
unique to their own operations, such as the
increased risk of declining glaciers and
snowpack in British Columbia or more severe
winter storms in the Atlantic provinces. In
addition, some members are working with
government and academic partners to
research various climate change scenarios
and their implications for future energy
demand in their service areas.
Hydro Ottawa employee works to safely remove tree branches that have fallen on power
line wires. Photo courtesy of Hydro Ottawa.
21
PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION
AND ADAPTATION
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
A progressive approach
to vegetation clearing at
Columbia Power
When a transmission line is cleared, vegetation is
typically cut to ground level, leaving only grassland
behind. For the Waneta Expansion Project, Columbia
Power Corporation cleared the 10-km line in a way
to directly benefit local wildlife and species at risk.
Instead of clearing all trees and shrubs, only the
largest trees were removed and the shrub layer was
left largely intact across the length of the line. Wildlife
trees were either retained or created wherever
possible. This approach ensured habitat for a number
of rare species in the Waneta area including yellow-
breasted chats, western skinks, and rubber boas.
As an added bonus, all listed plant species were
flagged prior to clearing and protected during
construction, resulting in no-net-loss to the number
of rare plants along the line.
NEW INITIATIVES
Rubber boa, a listed reptile, on the Waneta Expansion
transmission line. Photo courtesy of Wendy Horan.
Ontario Power Generation
makes a substantial commitment
to bio-energy
Ontario Power Generation Inc. (OPG) is leading the
way in generating energy from renewable, plant-
based biomass. The Atikokan Generating Station
was converted from coal to biomass in July 2014—
making it the largest 100 per cent biomass-fuelled
plant in North America—followed by the Thunder
Bay Generating Station in January 2015. OPG also
invested in the new BioEnergy Learning and Research
Centre at Confederation College in Thunder Bay,
which provides renewable power to the college
while offering opportunities for hands-on training
and applied research in bio-energy.
The Ontario Power Generation BioEnergy Learning and Research
Centre, the first of its kind in Ontario, provides bio-energy
students at Confederation College with hands-on training in
their field. Photo courtesy of Ontario Power Generation Inc.
Making history with SaskPower’s
carbon capture and storage project
The carbon capture and storage (CCS) project at
SaskPower’s Boundary Dam Power Station is the
world’s first commercial-scale CCS process installed
in a coal-fired plant. By taking an old facility nearing
its end of life and rebuilding it with CCS technology,
SaskPower can produce electricity that is 10 times
cleaner than traditional coal plants. As the CCS
process ramps up to full operation, it will capture
90 per cent of carbon dioxide and 100 per cent of
sulphur dioxide, which can then be re-used for
industrial and research purposes.
Interior of SaskPower’s carbon capture and storage (CCS) facility,
Boundary Dam Power Station. Photo courtesy of SaskPower.
22HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
REAL OUTCOMES
ENMAX achieves emission
reductions through
investments in solar
photovoltaic power
As of December 2014, ENMAX
Corporation has installed more than
1,600 kW of solar power capacity on
homes and businesses across Alberta—
that’s over a quarter of all grid-connected
solar in the province (by capacity)
according to Alberta Electric System
Operator (AESO) tracking. With the
commercial and residential projects
deployed to date, it is estimated that
over 36,000 tonnes of CO2e reductions
will be achieved across the province over
the combined lifetime of these systems.
EPCOR takes extra
measures to safeguard
rare bird species
Before construction began on upgrades
to Lambton Substation, an environmental
assessment discovered something
unexpected: the nearby wetlands were
home to pied-billed grebes, a protected
species. To ensure the birds’ safety,
EPCOR Utilities Inc. worked with
environment, regulatory, and engineering
teams to develop and enforce certain
measures during construction, including
completing disruptive activities during
mandated periods, eliminating the use
of loud diesel generators, and creating
a spotting program for employees to
report any interactions with the birds.
Relocating an entire
FortisAlberta power
line to protect greater
sage-grouse
For the greater sage-grouse, power
lines pose a grave threat: they provide
perches for predatory raptors, which
drive the grouse out of its natural habitat.
To support grouse conservation and
recovery efforts, when individual poles
near the town of Manyberries needed
replacement, FortisAlberta Inc. took the
extra step to completely relocate and
rebuild the entire power line—118 poles
and 15.4 km of line —out of the grouse’s
critical habitat and to the nearby roadside.
Manitoba Hydro conducts
research on Lake Sturgeon
Manitoba Hydro’s Lake Sturgeon
Stewardship and Enhancement Program
helps protect this species by increasing
knowledge of populations affected by
hydroelectric development, advancing
understanding of sturgeon ecology, and
studying the effectiveness of conservation
efforts. In 2014, the program supported a
stocking program in the Nelson River
and conducted studies on the survival
of stocked sturgeon. Manitoba Hydro
also funded research on sturgeon habitat
suitability, juvenile movement, and
area requirements.
Saint John Energy
implements new system
to guard against oil spills
To reduce the risk of a major spill,
Saint John Energy installed a new oil
containment system during the
refurbishment of its Union Street
Substation. While water can pass through
the polyvinyl blanket and barrier boom
system, hydrocarbons are immediately
captured and solidified upon contact.
The system is capable of holding
125 per cent of the volume of oil
housed in the company’s largest power
transformer, allowing for greater flexibility
when retrofitting existing substations.
A wetland assessment led to the discovery of a protected bird
species at EPCOR’s Lambton Substation. Photo courtesy of
EPCOR Utilities Inc.
Manitoba Hydro conducts research on Lake Sturgeon.
Photo courtesy of Manitoba Hydro.
23HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
STAKEHOLDER AND COMMUNITY ENGAGEMENT
FortisBC goes above and
beyond in responding to
priority spills
In September 2014, a tractor-trailer hit one
of FortisBC Inc.’s distribution poles, spilling
110 litres of non-PCB transformer oil onto
an organic apple orchard in the heart of the
Okanagan. Although it was a third-party
incident, the utility responded quickly to dig
out the contaminated area, replace the soil,
and plant five new trees. Throughout the
process, it worked closely with the farm’s
owner to ensure the remediation efforts
would still allow the orchard to meet the
strict requirements for organic certification.
Cutting emissions through
Horizon Utilities’ Smart
Commute program
For Horizon Utilities Corporation, reducing
emissions starts at home by encouraging its
employees to walk, cycle, carpool, and take
public transit through its Smart Commute
program. In 2014, it introduced dedicated
carpool parking spots, built three new bicycle
shelters, and installed three electric charging
stations to support the increasing number
of electric and hybrid vehicles in its fleet.
As a result of these efforts, employees
avoided 46,757 kg of emissions and
saved $138,000 in commuting costs.
Newfoundland Power
relocates osprey nests
from power lines
Newfoundland Power Inc. is dedicated
to reducing the impact of its operations on
local wildlife and their habitat. This can be
seen, for example, in its treatment of ospreys
that occasionally construct nests on its utility
poles. After employees found several nests
during transmission line maintenance in
2014, the company worked closely with
local wildlife officials to construct dedicated
platforms and relocate the nests to these
safer locations.
TransCanada assesses
environmental impact
of Energy East pipeline
To better understand the potential
environmental impact of a project the
size and scope of its proposed Energy
East pipeline, TransCanada performed
fieldwork and analysis in 180 municipalities
across six provinces, involving more than
900 specialists including wildlife biologists,
vegetation ecologists, atmospheric scientists,
archaeologists, and soils scientists. In addition
to contributing to its own environmental
assessment, the data was also provided
to provincial databases so it can be used
by other scientists and researchers
across Canada.
Left to right: Joseph Almeida, Director, Supply Chain Management at
Horizon Utilities Corporation, accepts the Metrolinx Smart Commute
Employer of the Year 2014 Award from Adam Arnold, Smart Commute
Hamilton. Photo courtesy of Horizon Utilities Corporation.
Additional CEA Member Initiatives
24HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
14.2%DECREASE
in lost-time injury
severity rate
7.6%DECREASE
in all injury/illness
frequency rate
90%of CEA members
have a stakeholder
engagement policy
100%of CEA members have
procedures to engage
Aboriginal Communities
SOCIAL PERFORMANCE
Delivering value by building stronger, healthier communities
As responsible corporate citizens, CEA members deliver real value to their people
and communities by creating diverse and respectful workplaces, promoting employee
well-being, and providing opportunities for skills development and training. Engaging
directly and transparently with stakeholders, including Aboriginal Peoples, also helps
ensure CEA members have a positive social impact wherever they do business.
25HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
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HYDRO OTTAWA
Where retirement marks the start of something new:
Creating opportunities for older workers
Over the next decade, the electricity
sector will face an unprecedented
wave of retirements. Hydro Ottawa, for
example, expects more than 40 per cent
of its workforce to retire by 2024. To retain
the knowledge and experience of its older
workers (who often have specialized skills
and add value to customer relationships),
the utility created a program to engage
those employees after retirement. Doing
so ensures operational capacity and
ongoing value to customers in the face
of shifting workforce demographics.
The Retiree and Older Worker
Engagement Program, also known
throughout Hydro Ottawa as the Prime
Time Program, was launched in 2014.
Embracing older workers’ growing interest
in redefining the latter stages of their
careers, the program helps individuals
make a positive transition into retirement
while also identifying ways for retirees to
keep contributing to Hydro Ottawa. Among
other elements, the Prime Time Program:
•	 equips managers to talk openly and
honestly with their teams about
retirement plans and shaping the
last years of their careers;
•	 gives greater clarity about how to
transfer knowledge before employees
retire (e.g., by allowing for a transition
period of up to six months where
departing employees work closely
with the people replacing them); and
•	 provides information sessions for
future retirees on financial planning,
post-retirement benefit coverage and
other topics, as well as opportunities
for workers to discuss retirement-
related concerns and explore their
readiness for retirement from a
psychological and social transition
perspective.
The Prime Time Program was recognized
with a 2014 Best Employers Award for
50-Plus Canadians from the Workplace
Institute. That year, 29 per cent of the
utility’s temporary and part-time positions
were filled by returning retirees with the
skills necessary to immediately perform
an operational or supporting role. This
includes, for example, having retired
power line technicians work as
instructors as part of Hydro Ottawa’s
partnership with Algonquin College.
Jeff Meek is one such instructor.
The Hydro Ottawa retiree has returned
to teach in Algonquin’s Power line
Technician Diploma Program, and says
his new role is a rewarding one.
“It is extremely fulfilling to share my
knowledge of the trade and the electrical
industry with the next generation,”
he says.
“It is extremely fulfilling to share my knowledge of the trade and the
electrical industry with the next generation”.
Jeff Meek
Retired Hydro Ottawa power line technician
Hydro Ottawa partners with Algonquin College
to deliver the Power line Technician Diploma
Program. Photo courtesy of Hydro Ottawa.
Picture snapped at a Hydro Ottawa Prime
Time Program meeting. Photo courtesy of
Hydro Ottawa.
26HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 3:
EMPLOYEE, CONTRACTOR, AND
PUBLIC HEALTH AND SAFETY
Provide a safe and healthy workplace for employees
and contractors, and promote public safety.
Employee Safety
CEA members have a long-standing
commitment to continually improve their
safety performance and protect the well-
being of employees and contractors.
While challenges remain, they strive to
create an injury-free workplace through
the following strategies:
•	 maintaining health and safety
management systems consistent with
international and national standards
such as Occupational Health and Safety
Assessment Series (OHSAS) 18001;
CAN/ULC S801: Standard on Electric Utility
Workplace Electrical Safety for Generation,
Transmission, and Distribution; and
CSA Z1000.
•	 building a strong safety culture among
all employees, with a focus on improving
communications and incident investigation
processes to promote lessons learned.
•	 working together through the CEA
Occupational Health and Safety
Committee to develop new strategies for
improving workplace health and safety,
including the development of leading
indicators to further minimize or prevent
safety incidents.
These strategies have helped reduce the
overall number of safety injuries within CEA
member companies. As Figure 8 shows, the
all injury/illness frequency rate improved for
the fifth consecutive year in 2014, decreasing
by 25.7 per cent from 2010. The lost-time injury
frequency rate (Figure 8), and the lost-time
injury severity rate (Figure 9) also improved,
Figure 8  All Injury/Illness and Lost-Time Injury
	 Frequency Rates
Figure 9  Lost-Time Injury Severity Rate
All Injuries/Illness Lost-Time Injuries
Per200,000Hours
0
1
2
3
4
5
20142013201220112010
1.59
1.721.77
1.96
2.14
0.700.730.790.760.68
CalendarDaysLostPer200,000Hours
0
5
10
15
20
25
20142013201220112010
16.73
19.49
15.49
14.9113.84
27
PRINCIPLE 3: EMPLOYEE,
CONTRACTOR, AND PUBLIC
HEALTH AND SAFETY
PRINCIPLE 4: HUMAN RESOURCES
AND WORKPLACE
PRINCIPLE 5: STAKEHOLDER
ENGAGEMENT AND TRANSPARENCY
PRINCIPLE 6: ABORIGINAL
ENGAGEMENT
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
with the latter improving by 14.2 per cent relative to
2013. Many of the injuries that do occur are related to
over-exertion (resulting in musculoskeletal disorders),
falls from elevation, and being struck by objects.
Prevention programs to address these risk areas
are being put in place.
While performance in these areas is moving in the
right direction, unfortunately, there were two tragic
employee fatalities in 2014. One employee came into
electrical contact while working on a downed power
line and another was involved in a vehicle collision.
The affected companies are working to further
strengthen their safety procedures in order to
prevent these tragic incidents.
Public Safety
CEA members are committed to reducing the risks of
public contact with power lines and other electrical
equipment. In 2014, this included developing power
line safety training programs for first responders,
delivering electrical safety seminars to local
businesses, hosting workplace safety sessions with
local high school students, and promoting emergency
preparedness in communities. However, there were
six public fatalities in 2014. These were related to
workers from other sectors (e.g. construction) coming
into electrical contact during projects as well as
individuals attempting to steal copper from electrical
facilities. CEA member companies are committed to
preventing public fatalities and have taken steps to
educate and raise awareness of electrical safety.
Capital Power Corporation’s Island Generation Facility is located
in Campbell River, British Columbia. The 275 megawatt combined
cycle natural-gas fired facility is the single-largest power generation
facility located on Vancouver Island. Photo courtesy of Capital
Power Corporation.
CEA tracks and monitors the safety record of its member utilities
and recognizes their achievements through the annual CEA
Occupational Health and Safety Awards. CEA also recognizes
any employee of a CEA member utility who was involved in
a lifesaving attempt or acted to prevent further harm to someone
who was injured or in need of immediate help with the Lifesaver
Awards. In this picture, Erik Tippett (middle), of ENMAX, is
presented his CEA Lifesaver Award by Members of Parliament,
the Honourable Deepak Obhrai (left), and the Honourable Jason
Kenney (right). Mr. Tippett was awarded for saving an elderly
woman who had fallen, was in a state of shock, and was stuck
outside in freezing weather.
28
PRINCIPLE 3: EMPLOYEE,
CONTRACTOR, AND PUBLIC
HEALTH AND SAFETY
PRINCIPLE 4: HUMAN RESOURCES
AND WORKPLACE
PRINCIPLE 5: STAKEHOLDER
ENGAGEMENT AND TRANSPARENCY
PRINCIPLE 6: ABORIGINAL
ENGAGEMENT
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 4:
HUMAN
RESOURCES
AND WORKPLACE
Support fair recruitment, training,
and talent retention processes
that meet the needs of company
operations while ensuring ongoing
employee satisfaction, well-being,
and diversity.
Workplace Diversity
CEA Corporate Utility Members are committed to
workplace diversity and creating an environment
where all employees are treated with respect and
without discrimination, harassment, and violence.
In 2014, 57 per cent of member companies
reported having diversity programs, and
97 per cent reported a commitment to non-
discriminatory employee practices. However,
member companies do recognize that they still
have a long way to go in terms of improving
the representation of women in management
and governance bodies, and improving the
tracking and measuring of visible minorities
in the workplace.
Employee Health
and Well-Being
Through the implementation of a wide range
of health promotion, disease prevention, and
crisis intervention programs—in 2014, these
included ‘active living’ campaigns, employee
alcohol and drug programs, confidential
counselling and support for employees and
their families, and mental health awareness
initiatives—CEA members continue to help
their people achieve healthier, more sustainable
lifestyles, ultimately reducing the financial
burden associated with healthcare costs
and lost productivity.
Training and
Apprenticeships
As the electricity sector’s business model continues
to evolve in response to new technologies and
customer requirements, employee training and
development remain critically important for both
individual and company success. To build up the
skills of their current teams as well as those of
the next generation of electricity workers, in 2014
CEA members continued to rely on apprenticeship
and youth mentorship programs, personal
development plans, professional accreditation
opportunities, scholarships and tuition subsidies,
and partnerships with post-secondary institutions,
with a particular focus on attracting women and
Aboriginal Peoples to the trades.
Board of Directors First-Level ManagementSenior Executives
Men Women
75%
25%
Men Women
78%
22%
Men Women
75%
25%
29
PRINCIPLE 3: EMPLOYEE,
CONTRACTOR, AND PUBLIC
HEALTH AND SAFETY
PRINCIPLE 4: HUMAN RESOURCES
AND WORKPLACE
PRINCIPLE 5: STAKEHOLDER
ENGAGEMENT AND TRANSPARENCY
PRINCIPLE 6: ABORIGINAL
ENGAGEMENT
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 5:
STAKEHOLDER ENGAGEMENT
AND TRANSPARENCY
Communicate and engage with stakeholders and
partners in an open and transparent manner for all
proposed and established operations and activities.
Engaging with stakeholders on issues that
directly affect them in an open and transparent
manner is of paramount importance to CEA
Corporate Utility Members. These utilities are
now engaging customers, communities and
stakeholders on a variety of issues ranging
from new infrastructure projects, energy
conservation, environmental impact mitigation,
community development, and public electrical
safety. For instance, recognizing the importance
of consulting with their communities and sharing
information about the potential environmental,
social, and economic impacts of new
infrastructure developments, 90 per cent of
CEA members now have a formal policy in
place for stakeholder engagement, up from
77 per cent in 2013. Whether through public
meetings, classroom presentations, facility
tours, social media, or traditional marketing
(including corporate annual reports), CEA
members are constantly improving the
way they communicate with customers,
landowners, suppliers, community leaders,
non-governmental organizations, and other
key stakeholders. Furthermore, 67 per cent
of CEA members reported on sustainability
performance, either through an annual report
or online, in 2014, up from 57 per cent
in 2013 (Table 3).
TransCanada is one member company that continues to demonstrate a
commitment to strengthening Community, Aboriginal and Native American
Relations. Photo courtesy of TransCanada.
Table 3  Stakeholder Engagement
2013 2014
The company has a formal
stakeholder engagement
policy, including a process
for identifying stakeholder
concerns and opportunities
77% 90%
The company reports on
sustainability performance,
either through an annual
report or online
57% 67%
30
PRINCIPLE 3: EMPLOYEE,
CONTRACTOR, AND PUBLIC
HEALTH AND SAFETY
PRINCIPLE 4: HUMAN RESOURCES
AND WORKPLACE
PRINCIPLE 5: STAKEHOLDER
ENGAGEMENT AND TRANSPARENCY
PRINCIPLE 6: ABORIGINAL
ENGAGEMENT
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 6:
ABORIGINAL ENGAGEMENT
Build mutually beneficial relationships with
Aboriginal Peoples and communities based
on trust and respect.
CEA members are working to build positive
relationships with Aboriginal communities.
While the degree to which this collaboration
occurs differs from company to company,
these relationships often result in mutual
benefits and innovative solutions, including
the creation of joint business ventures that
ensure Aboriginal communities and businesses
directly benefit from infrastructure development
projects. Utilities also continue to invest in
training and apprenticeship opportunities for
Aboriginal students, sustainable procurement
strategies, and the use of traditional knowledge
in project planning and construction. These
partnerships will continue to grow as CEA
members further invest in infrastructure renewal
and modernization across the country.
Of the 83 per cent of CEA members that
identified Aboriginal relations as a relevant
issue for their operations in 2014, all of them
have procedures to engage Aboriginal
communities during project planning and
development, and two-thirds have policies
ensuring Aboriginal employees are given
equal access to training and employment
opportunities (Table 4). Based on the materiality
assessment that was commissioned in 2014,
CEA is currently working with members to
develop new performance indicators in this
area to better communicate member efforts
on Aboriginal engagement.
9	 CEA uses the term Aboriginal to refer to First Nations, Métis, Inuit, Cree, and
other indigenous peoples within Canada.
10	 Figures are based on 83 per cent and 77 per cent of companies that indicated
Aboriginal engagement to be a relevant issue for company activities in 2014
and 2013, respectively.
Table 4  Aboriginal Engagement9
2013 2014
Aboriginal relations a relevant
issue for the company
77% 83%
The company has procedures
for engaging with Aboriginal
communities during project
planning and development10
100% 100%
The company has procedures
to ensure training and
employment opportunities
are provided to Aboriginal
employees10
63% 67%
31
PRINCIPLE 3: EMPLOYEE,
CONTRACTOR, AND PUBLIC
HEALTH AND SAFETY
PRINCIPLE 4: HUMAN RESOURCES
AND WORKPLACE
PRINCIPLE 5: STAKEHOLDER
ENGAGEMENT AND TRANSPARENCY
PRINCIPLE 6: ABORIGINAL
ENGAGEMENT
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
NEW INITIATIVES
Siksika Nation partners with
ATCO Electric on youth
mentorship program
In 2014, ATCO Electric worked with Siksika First
Nation to develop and implement a year-long pilot
project to provide Aboriginal youth with real-life work
experience. ATCO Electric trained Siksika Nation’s
chosen candidates to safely erect structures, operate
and repair equipment, and perform other tasks critical
to building and maintaining transmission infrastructure.
After the pilot program was completed, the company
hired two of the participants on a temporary,
full-time basis.
Hydro One introduces Women in
Engineering scholarship
Hydro One Inc. has a long history of supporting young
women wishing to pursue studies in Science, Technology,
Engineering, and Mathematics (STEM). In 2014, this
support grew even further with the launch of the
new Women in Engineering scholarship, which is
open to all female engineering students attending
a university in Ontario. A total of 13 students received
$5,000 scholarships last year, which also includes a
co-op work term.
Building a stronger workplace
safety culture at EPCOR Utilities
In 2014, EPCOR Utilities Inc. refocused its efforts to
ensure safety is always top of mind. To change unsafe
behaviours and promote a culture of safety, it created
a recognition program awarding points (which can be
redeemed online for gifts) to employees demonstrating
safe work practices. To further engage employees,
EPCOR now encourages frontline workers to participate
in incident investigations. It also hosted more than
300 employees and contractors for a workshop on
working safely with underground infrastructure.
EPCOR demonstrates safety
techniques at its Underground
Hazard Awareness Day. Photo
courtesy of EPCOR Utilities Inc.
Labourer Daniel Spring Chief
was one of two participants in
ATCO Electric’s pilot program
who has now joined ATCO
Electric for the long term. Photo
courtesy of ATCO Electric.
Improving worker safety at Toronto
Hydro with infrared cameras
In 2014, Toronto Hydro Corporation sought to improve
the way its workers assess hazards and risks before
entering confined spaces (for example, by determining
the likelihood a spliced power line will produce a
dangerous arc flash). After reviewing best practices
across North America, it opted to incorporate
forward-looking infrared cameras into all confined
entry space tests, working with a forensic laboratory
to calibrate the infrared images and train its crews on
how to use the new equipment.
Employee uses the infrared detector. Photo courtesy of Toronto
Hydro Corporation.
32HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
REAL OUTCOMES
Using drones to make inspections
safer for BC Hydro engineers
Inspecting the canal that diverts water to the
Kootenay Canal Generating Station used to involve
lowering an engineer down with ropes or flying over
it with a helicopter. That changed in September 2014,
when BC Hydro and Power Authority began using
drones to take detailed video and photos of the
canal’s entire length. In addition to eliminating safety
risks to execute this hazardous work, drones also
make it easier and more affordable to inspect other
assets such as dams and power poles.
Strengthening the Northern
workforce through Northwest
Territories Power Corporation
apprenticeships
Northern Canada faces a shortage of local skilled
workers, creating significant competition for trades
and technical resources as well as a smaller pool
of local candidates for employers such as the
Northwest Territories Power Corporation (NTPC).
To promote skills development and help create a
sustainable Northern workforce for the long term,
NTPC has invested $1 million in a new apprenticeship
program and provides valuable work experience
opportunities by hiring summer students in various
departments throughout the territory.
Oakville Enterprises boosts
public awareness of electricity
safety risks
Oakville Enterprises Corporation’s safety program
focuses on both employee and public safety. In 2014,
it co-presented a power line safety seminar for
local businesses and trades, highlighting hazards,
regulations, and guidelines to help prevent injuries
when working near electrical equipment; and worked
with the non-profit MySafeWork to co-host three
young worker safety awareness sessions at area
high schools. For its own employees, Oakville
Enterprises often brings in guest speakers as part of
its Stayin’ Alive program to reinforce the importance
of injury prevention.
Capital Power facilitates safety
rescue training in Campbell River
Capital Power Corporation has formed a unique
partnership with the Campbell River Fire Department
to improve each other’s safety rescue skills. In the
massive turbine hall at the Island Generation facility,
firefighting crews work with Capital Power’s
Emergency Response Team to practice rescue
manoeuvres that would be enacted in an emergency
situation. In turn, the firefighters can also work on
their tie-offs, harnessing, and other technical skills
that they can apply to other rescue scenarios
throughout the community.
Campbell River Fire Department crews tie-off to the structural
members above the catwalk handrail as they increase their
familiarity with their Fall Protection gear and High Angle Rescue
techniques. Photo courtesy of Capital Power Corporation.
33HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
STAKEHOLDER AND COMMUNITY ENGAGEMENT
AltaLink sponsors initiative to
repatriate Blackfoot regalia
For more than 110 years, the regalia of Chief Crowfoot
of the Blackfoot Nation, including his deerskin jacket,
leggings, ceremonial knife, and bow and arrow, has
been on display in the Royal Albert Memorial Museum
in Exeter, England. In 2014, AltaLink donated $25,000
to an initiative led by Siksika First Nation to bring
these historic and culturally significant treasures back
home to Alberta, where they will eventually be
displayed at Blackfoot Crossing Historical Park.
ATCO Power works to promote
watershed management through
collaboration and transparency
ATCO Power’s approach to multi-stakeholder
engagement is based on long-term collaboration
and transparency. It has participated in the Stakeholder
Advisory Group of the Battle River Watershed Alliance
since its inception, set up as an inclusive, collaborative
and consensus-based community partnership to
strike a balance between a healthy aquatic
ecosystem, a vibrant economy, and sustainable
communities. Based upon the recommendations of
this group, an approved Water Management Plan for
the Battle River Basin was released in 2014 by
the Alberta government.
NB Power seeks unprecedented
public input on future of
Mactaquac Dam
New Brunswick Power Corporation (NB Power) is
ensuring the community has a say in the future of the
Mactaquac Dam. At a public meeting in November 2014,
NB Power presented three options for the dam, which
was followed by a lively discussion with area residents
on the environmental and social implications of each.
The final decision will be strongly informed by that
input along with feedback gathered from a broader
engagement program rolled out later this year.
Giving customers a voice in Nova
Scotia Power’s long-term plan
A long-term integrated resource plan was developed
by Nova Scotia Power in 2014 to enable the company
to meet future energy needs in a cost-effective
and reliable manner. More than 20 community
engagement sessions were held across the province
to gather the input of customers on four key topics:
cost, innovation, energy sources, and reliability.
Comments were also solicited through the
TomorrowsPower.ca customer-focused website.
SaskPower raises the bar for
on-reserve recycling initiatives
SaskPower has partnered with Black Lake First Nation
to create Northern Saskatchewan’s first-ever appliance
recycling program. This year, the program collected
and transported 26 tonnes of appliances and
hazardous materials (e.g., halocarbons, petrochemicals)
to Regina to be recycled. Every effort was made to
maximize the benefits to the community, with local
labour and suppliers engaged whenever possible.
The success of the Black Lake Hazardous Waste
Removal Project has since sparked interest from
other remote Aboriginal communities.
Construction of Muskrat Falls Project’s Vac Transmission
line. Photo courtesy of Nalcor Energy.
Great turn out at a Nova
Scotia Power’s community
engagement sessions.
Photo courtesy of Nova
Scotia Power.
Additional CEA Member Initiatives
34HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
$2.988BILLION
in distribution
$6.034BILLION
in transmission
$4.104BILLION
in generation
$27.517MILLION
in 2014 charitable
donations
ECONOMIC PERFORMANCE
Delivering value by powering Canada’s economy
Canada’s economy depends on a strong electricity sector. CEA members are delivering
real economic value to Canadian communities through a variety of means, including
generating the energy that powers businesses and making significant charitable
contributions. They also continue to invest in energy conservation programs and
new infrastructure, ensuring the supply of power remains dependable and
cost-effective in the years to come.
In 2014, CEA members invested approximately
13 billion in infrastructure to meet the needs of
current and future generations.
35HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
BROOKFIELD RENEWABLE ENERGY GROUP
Diversifying the local economy with an innovative partnership
Northeastern Vancouver Island is
known for its traditional resource
industries such as forestry, mining,
and fishing. When those started to
decline, Brookfield Renewable Energy
Group saw an opportunity to deliver
real value to the local economy through
the construction of a 45 MW hydroelectric
facility on the Kokish River.
The Kokish facility is located on the
traditional lands of the ’Namgis First
Nation. Brookfield worked with the
’Namgis to form Kwagis Power LP,
a joint partnership that allowed both
parties to be equally involved in all
aspects of the project, from planning
and permitting to construction and
operations. Now that the facility is fully
commissioned, a portion of the revenue
generated by its operations will be
directed into a ’Namgis Community
Benefit Fund.
“We believe in the power of partnerships
built on shared values. In Brookfield, we
found a partner who supports our vision
of environmental and social responsibility,”
says Debra Hanuse, Chief of the ’Namgis
First Nation. “This partnership and the
resulting Kokish River project allows us
to share in the benefits derived from our
ancestral lands.”
The project provided substantial economic
benefits through job creation and spending
on local goods and services. Approximately
250 people were employed during the
two-year construction period (including
12 ’Namgis members), with local
subcontractors hired to work on-site.
Of the total capital cost of approximately
$200 million, about $30 million was
spent locally on heavy industry, food,
and accommodations.
Completed in April 2014, the Kokish facility
now generates enough clean, renewable
energy to power 13,000 households each
year. Through a 40-year electricity purchase
agreement with BC Hydro and Power
Authority, it will provide sustainable,
long-term economic activity for the
region for years to come.
Brookfield and the ’Namgis are truly proud
of the Kokish River facility. The project not
only demonstrated the seamless integration
of sustainability concerns but also serves as
a great model of how the public sector,
private sector, and First Nation communities
can work together to improve Canada’s
energy infrastructure.
“In Brookfield Renewable Energy Group we found a partner who
supports our vision of environmental and social responsibility.”
Debra Hanuse
Chief of the ’Namgis First Nation
Brookfield Renewable Energy Group and the ’Namgis First Nation at the
ribbon-cutting ceremony for the opening of the Kokish River hydroelectric facility.
Photo courtesy of Brookfield Renewable Energy Group.
36HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 7:
ECONOMIC VALUE AND
COMMUNITY INVESTMENTS
Provide economic benefits to shareholders,
communities, and regions in which the
industry operates.
The electricity sector is a major contributor to
the economic growth of Canadian communities.
From facilitating uninterrupted operation of
commercial and public sector services to
everyday consumer electronics, CEA member
utilities provide an essential service to the
communities in which they operate. They
also add value to their communities in other
ways, from sourcing practices that promote
and support local businesses to investor and
government dividends, all of which inject
money back into the local economy.
In 2014, CEA members contributed
$27.517 million in charitable donations
(Figure 10) and supported numerous
organizations and initiatives including
national charities such as the United Way
and the Heart and Stroke Foundation,
local food banks, community facilities,
and health and safety campaigns.
Figure 10  Annual Charitable Donations
MillionsofDollars
$0
$5
$10
$15
$20
$25
$30
$35
$40
20142013201220112010
$26.027
$24.529
$35.768
$33.696
$27.517
Workers pause on the Lower Mattagami Hydroelectric Project –
Kipling Generating Station. Photo courtesy of Ontario Power
Generation Inc.
37
PRINCIPLE 7: ECONOMIC VALUE AND
COMMUNITY INVESTMENTS
PRINCIPLE 8: ELECTRICITY DEMAND,
EFFICIENCY, AND CONSERVATION
PRINCIPLE 9: INFRASTRUCTURE
RENEWAL AND MODERNIZATION
PRINCIPLE 10: BUSINESS MODEL
PRESSURES
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 8:
ELECTRICITY DEMAND,
EFFICIENCY, AND CONSERVATION
Produce, deliver, and use electricity in an efficient manner
while promoting energy conservation programs.
CEA Corporate Utility Members are committed
to creating a culture of energy efficiency and
conservation in the communities in which they
operate. Some of the initiatives conducted
over the past year include appliance removal
and exchange programs, coaching and
auditing services to help small businesses
better manage their energy consumption,
and rebates and incentives to encourage
homeowners and businesses to install
energy efficient technologies. By reducing
the amount of energy consumed, initiatives
like these are crucial to moderating the
investment required for new infrastructure,
reducing customer electricity bills, and
benefiting the environment. The ongoing
implementation of smart meters and smart
grid technologies will further accelerate
the development of innovative new
energy conservation programs, including
time-of-use pricing and hour-by-hour
consumption monitoring.
In 2014, CEA Corporate Utility Members with
energy conservation programs reported
1,087 GWh of energy savings, a reduction
of 35.6 per cent form 2013. While external
conservation efforts decreased, CEA members
realized an additional 78 GWh in efficiency
savings from their own generation stations and
equipment, an increase of 8.6 per cent over 2013.
Bighorn sheep visit the reclamation area at the Arrow Lakes Generating
Station. Columbia Power Corporation has completed extensive rehabilitation
work at the reclamation site to make the area attractive to birds and wildlife.
Photo courtesy of Columbia Power Corporation.
38
PRINCIPLE 7: ECONOMIC VALUE AND
COMMUNITY INVESTMENTS
PRINCIPLE 8: ELECTRICITY DEMAND,
EFFICIENCY, AND CONSERVATION
PRINCIPLE 9: INFRASTRUCTURE
RENEWAL AND MODERNIZATION
PRINCIPLE 10: BUSINESS MODEL
PRESSURES
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 9:
INFRASTRUCTURE RENEWAL
AND MODERNIZATION
Invest in the renewal and modernization of generation,
transmission, and distribution systems to meet current
and future energy needs in a safe, reliable, and
cost-effective manner.
Many of Canada’s electricity assets are reaching
the end of their lifecycle, which can range from
30 years for a utility pole to as much as a century
for a hydroelectric power plant. Much of the
system built a generation ago now needs to
be replaced or refurbished. To ensure a
reliable, cost-effective supply of electricity,
utilities must maintain their existing assets
while also investing in and developing new
infrastructure. As Figure 11 shows, since 2010,
CEA members have invested $58.912 billion
in generation, transmission, and distribution
equipment; in 2014, they invested $13.127
billion in new and refurbished infrastructure.
While this is a decrease of approximately
$1 billion compared to 2013, it is a reflection
of the cyclical nature of new investments
and construction.
From year to year, investment trends fluctuate
as some projects are completed and others
begin preliminary planning and assessment.
For example, in December 2014, the BC
Government approved BC Hydro and Power
Authority’s proposed $8.8 billion Site C Clean
Energy Project on the Peace River that will
provide 1,100 MW of capacity and produce
about 5,100 GWh of electricity each year
when completed in 2024.
As CEA Corporate Utility Members invest in
new infrastructure, they are considering a
range of conventional and non-conventional
technologies including large hydro projects
similar to Site C, small-scale run-of-river hydro,
nuclear, gas, coal with carbon capture and
storage, and renewable technologies, such as
wind, solar and biomass. In 2014, installed wind
capacity for instance in Canada accounted for
about 9,700 MW, with Ontario leading in terms
of that existing capacity, followed by Quebec
and Alberta.11 CEA members also either
generated or purchased nearly 12,310 GWh
of electricity from wind and other renewable
sources, including solar, biomass, tidal and
biofuel. Although technologies such as wind
are becoming cost-competitive, there are still
barriers to market integration, including public
support, intermittency, and transmission
inter-connections.
Figure 11  Investments in New and Refurbished Infrastructure
BillionsofDollars
$0
$1
$2
$3
$4
$5
$6
$7
20142013201220112010
$4.050
$4.455
$5.246
$4.104
$4.482
$2.618
$2.623
$2.585
$3.332
$3.295
$2.988
$3.105
$4.290
$5.704
$6.034
Generation Transmission Distribution
11	 Source: Canadian Wind Energy Association, www.canwea.ca.
.
12,310 GWhof renewables generated or
purchased by CEA members
39
PRINCIPLE 7: ECONOMIC VALUE AND
COMMUNITY INVESTMENTS
PRINCIPLE 8: ELECTRICITY DEMAND,
EFFICIENCY, AND CONSERVATION
PRINCIPLE 9: INFRASTRUCTURE
RENEWAL AND MODERNIZATION
PRINCIPLE 10: BUSINESS MODEL
PRESSURES
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
PRINCIPLE 10:
BUSINESS MODEL PRESSURES
Engage and work collaboratively with utility regulators, policy makers,
stakeholders, technology providers, and supply chain partners to meet
evolving customer expectations and business requirements.
Canadian Utility
Appreciation Day
During a keynote speech in
Toronto, New Jersey Governor
Chris Christie signed a proclamation
declaring December 5, 2014, as
Canadian Utility Appreciation Day.
Three CEA members (Hydro One
Inc., Hydro Ottawa, and Toronto
Hydro Corporation) were among
the electric and natural gas utilities
recognized for the assistance and
expertise they provided during the
emergency response and recovery
efforts following Hurricane Sandy
in October 2012. CEA was also
recognized by Governor Christie
for the participation of former
President and Chief Executive
Officer, Jim R. Burpee in daily
teleconferences with key U.S. utility
leaders and government officials
during the power-restoration period.
System Reliability
More than ever, Canadians depend
on electricity to power their daily
lives. As severe weather events
become more common, utilities are
under increasing pressure to prevent
and respond to power outages.
In 2014, both the frequency and
duration of service interruptions
improved (both including and
excluding significant weather
events) compared to the previous
year (Figures 12 and 13). Specifically,
the frequency of outages (excluding
significant events) declined by
8.0 per cent while the duration of
the outages (excluding significant
events) declined by 13.6 per cent.
Tree contacts contributed to the
majority of these power outages.
Supply Chain
Management
To meet their business requirements
in a more cost-effective way, CEA
members are constantly working
to identify supply chain efficiencies
and reduce their purchasing costs.
Manitoba Hydro, for example,
launched the first implementation
phase of its multi-year Supply
Chain Performance Enhancement
Program, which focuses on ways to
reduce costs and increase
operational capacity through
strategic sourcing, inventory
management optimization, and
reducing the total cost ownership
of its fleet. Other CEA members,
such as TransCanada, are
improving their procurement
policies, processes, systems, and
tools to make it easier for local
labour and suppliers to contribute
to infrastructure renewal
development projects.
Figure 12  System Average Interruption
	 Duration Index (SAIDI)
Figure 13  System Average Interruption
	 Frequency Index (SAIFI)
Duration(hours)
0
2
4
6
8
10
20142013201220112010
6.4
5.1
9.5
5.9
4.7
4.4
6.2
5.1
5.2
4.3
CEA Canadian Composite CEA Canadian Composite
(Excluding Significant Events)
Interruptions(percustomer)
0
1
2
3
20142013201220112010
2.4
2.3
2.7
2.5
2.5
2.5
2.6
2.52.1
2.1
CEA Canadian Composite CEA Canadian Composite
(Excluding Significant Events)
40
PRINCIPLE 7: ECONOMIC VALUE AND
COMMUNITY INVESTMENTS
PRINCIPLE 8: ELECTRICITY DEMAND,
EFFICIENCY, AND CONSERVATION
PRINCIPLE 9: INFRASTRUCTURE
RENEWAL AND MODERNIZATION
PRINCIPLE 10: BUSINESS MODEL
PRESSURES
HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
NEW INITIATIVES
ATCO Electric designs the
next-generation substation
ATCO Electric has established an in-house think tank
called Project Innovate to develop more cost-effective,
sustainable energy infrastructure. One of its first
successes is the ‘Next Generation Substation’ design,
which reduces construction costs for a 144-25 kV
substation by 46 per cent and the time to build one
by three months. The new design also decreases
substation size, reducing environmental footprint by
as much as 55 per cent while also cutting material,
labour, and equipment costs during construction
and commissioning.
In 2014, ATCO Electric’s Transmission Division designed a Next
Generation Substation. Photos courtesy of ATCO Electric.
BC Hydro powers the
Northern economy with
new transmission line
BC Hydro and Power Authority’s 344-km Northwest
Transmission Line came into service in July 2014,
pushing the transmission grid further north through
some of the province’s most remote terrain. The line
will deliver affordable, reliable power to new mining
and clean energy developments, which will greatly
stimulate the region’s economy. In December, the line
was extended a further 90 km to the community of Iskut,
which will help its residents reduce their reliance on local
diesel generation.
Ontario Power Generation
completes Northern Ontario’s
biggest hydro project in 50 years
Ontario Power Generation Inc. (OPG) in partnership
with the Moose Cree First Nation completed the
Lower Mattagami River Hydroelectric Project in
January 2015. The largest hydro infrastructure
investment in Northern Ontario in the past half-
century, this $2.6 billion project added 438 MW of
renewable hydro capacity across four generating
stations. Over the course of the project, $1 billion
in contracts were awarded to Ontario businesses,
including more than $350 million spent in the North.
The project also provided over 400 person years of
employment for First Nations and Métis people and
25 First Nation businesses provided services.
New biogas facility adds
generation to Saskatoon
Light  Power’s mix
Saskatoon Light  Power, a municipal distribution
utility, has built its first new generation facility in more
than 100 years. Completed in March 2014, the Landfill
Gas Collection System captures methane-rich gas
from Saskatoon’s landfill and uses it to fuel two
generators that produce 13 GWh each year, which
is enough energy to power 1,300 homes. The facility
will also become a new revenue source for the City
once its initial investment is repaid.
Saskatoon Light  Power’s landfill gas collection facility.
Photo courtesy of Saskatoon Light  Power.
41HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
REAL OUTCOMES
Decreasing construction times
and costs at AltaLink
By using screwpiles rather than traditional concrete
caissons in the construction of its power line towers,
AltaLink is realizing substantial project cost and time
savings. Literally screwing the foundation into the
ground means less soil needs to be displaced, which
minimizes tower footprint, uses fewer raw materials,
and requires smaller crews and less heavy equipment.
It also provides greater certainty in project delivery:
three tower bases can be prepared each day
compared to one per month when using caissons.
Improving technician collaboration
through the FortisAlberta
Control Centre
The new FortisAlberta Inc. Control Centre, completed
in May 2014, allows power line technicians across the
province to work collaboratively with system operators
to enhance the quality of service provided to customers.
In addition to constructing a state-of-the-art facility, this
mega-project involved the implementation of outage
management, data acquisition, and other technologies,
all of which will be built upon in the years to come to
meet evolving service demands.
Hydro Ottawa cuts municipal
energy consumption with
LED streetlights
In 2014, Hydro Ottawa demonstrated its commitment
to energy efficiency by completing an ambitious
project to convert 740 high-pressure sodium
streetlights to light-emitting diode (LED) streetlights
along one of the City of Ottawa’s major traffic arteries.
The new lighting system includes adaptive controls
that allow streetlights to be dimmed to exact levels
when necessary, which will help the City decrease its
energy consumption by 650,000 kWh per year while
also significantly reducing maintenance costs.
Newfoundland and Labrador
Hydro promotes energy efficiency
in isolated communities
Newfoundland and Labrador Hydro (NL Hydro), a
Nalcor Energy Company, uses the Isolated Systems
Community Energy Efficiency Program to promote
energy efficiency to residential and commercial
customers in communities served by diesel generation.
In 2014 alone, it installed over 23,000 free energy
saving products for 1,081 customers, helping them
realize 1,357 MWh in annual energy savings. The
company also provides free facility audits, technical
support, and financial assistance to help businesses
identify and implement efficiency retrofits and other
capital upgrades. By the end of 2014 the program has
been offered in 42 remote communities, installed
47,312 energy efficient products in 269 businesses
and 3,582 homes and saved 4.04 GWh of electricity.
View of the Lower Mattagami Hydroelectric
Project – Kipling Generating Station. Photo
courtesy of Ontario Power Generation Inc.
Newfoundland and
Labrador Hydro employee,
Lori O’Brien is a community
representative who helps
educate people on energy
use and energy efficient
products. Photo courtesy
of Newfoundland and
Labrador Hydro,
a Nalcor Company.
42HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
ENMAX brightening the lives
of vulnerable Albertans
In 2014, ENMAX Corporation launched the
Lighting Up Alberta campaign to raise funds
for Habitat for Humanity and Homeless
Foundations of Edmonton and Calgary. In
addition to the campaign, ENMAX donated
$45,000 to the Calgary Homeless Foundation
to light up 22 of their buildings with energy
efficient lighting, and $100,000 to Habitat for
Humanity to install energy efficient lighting,
programmable thermostats and other energy
management tools at their Neufeld Landing
Development in Edmonton.
Building stronger, safer
communities with the
Hydro One PowerPlay
program
Hydro One Inc. is dedicated to enabling
healthy, active, and safe lifestyles for children
and youth. Through its PowerPlay program,
it supports the development of recreational
facilities and equipment in the communities
in which it operates. In 2014, Hydro One
funded 48 community projects across
Ontario, distributing $625,000 to help build
18 playgrounds, four skateboard parks,
heating and lighting for six community
facilities, and many other projects.
Maritime Electric reduces
peak load during the holidays
Through its Holiday Light Exchange Program,
Maritime Electric Company, Limited, offered
$5 in cash to customers who turned in an old
(but still working) set of incandescent holiday
light strings. More than 4,300 sets of lights
were exchanged in 2014; by decreasing the
number of inefficient bulbs in use, the program
saved more than 76,000 kWh and helped
reduce overall peak load during this past
holiday season.
STAKEHOLDER AND COMMUNITY ENGAGEMENT
Children pose for a picture of one of the playground projects
supported through Hydro One Inc.’s PowerPlay program.
Photo courtesy of Hydro One Inc.
43HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
Northwest Territories Power
Corporation gives customers
the tools to make smarter
energy choices
To help its customers save money on
their bills, the Northwest Territories Power
Corporation launched a new education
campaign called PowerWise. On the
PowerWise website, customers can
find energy saving tips for household
appliances as well as an energy calculator to
determine their total energy usage
per room. The website is part of a larger
campaign that also includes posters and press
releases to encourage people to manage their
power usage in smarter ways.
SaskPower promotes
community electricity
literacy and support for
infrastructure investment
through an innovative Power
to Grow outreach campaign
SaskPower is working to ensure that the
electricity system that creates and delivers
power to communities is ready to support
growth and change in Saskatchewan—today
and into the future. The Power to Grow
public outreach tour travels to communities
throughout Saskatchewan. It features a
futuristic inflatable tent that provides a
360-degree experience, an electric vehicle
fully wrapped in graphics that illustrates
Saskatchewan’s power sources, interactive
displays that show the aging system and how
difficult it is to generate power, and an ‘ideal
home’ which illustrates the growing demand
for power and energy saving tips.
A focus on using local
suppliers at TransCanada
In 2014, TransCanada started developing a
new Supplier Diversity and Local Participation
Program to help the communities adjacent
to or affected by its business realize greater
economic benefits. In addition to providing an
integrated approach for creating opportunities
for qualified local suppliers to participate on
TransCanada projects, this initiative will also
support targeted community investments in
education and training programs to help
develop the skills, knowledge, and capacity
of local businesses and contractors.
TransCanada developed a Supplier Diversity and Local Participation
Program to help its communities realize greater economic benefits.
Photo courtesy of TransCanada.
Additional CEA Member Initiatives
SaskPower employees poised to answer customer questions
at a Power to Grow event. Photo courtesy of SaskPower.
44HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
KEY ACHIEVEMENTS
Sustainable Electricity Company™ designation
Two more companies received the Sustainable Electricity Company designation over the
past year: Toronto Hydro Corporation became the third utility to do so in June 2014, followed
by Hydro One Inc. in January 2015. This designation is given to utilities that meet the
additional criteria developed by CEA to demonstrate their commitment to sustainability.
“Our commitment to sustainability
is really a commitment to our
community, employees, and
stakeholders. As an overarching
driver, sustainability plays a key
role in our success.”
Anthony Haines,
President and Chief Executive Officer,
Toronto Hydro Corporation
“This designation recognizes the
outstanding job our employees
do in delivering electricity in
a socially responsible and
sustainable manner, and in
meeting the high expectations
of the people of Ontario.”
Carmine Marcello,
President and Chief Executive Officer,
Hydro One Inc.
	
   	
  
Left to right: Scott
Martin, Senior Vice
President, Business and
Administrative Services
at Ontario Power
Generation Inc.; Nicole
Wershler, Manager of
Strategy and Planning
for Energy Operations at
TransCanada; and Felipe
Pinel, Chief Executive
Officer, North America
at Brookfield Renewable
Energy Group.
2015 Sustainable Electricity
Award winners
Environmental Commitment Award –
ONTARIO POWER GENERATION INC.
In recognition of the Biomass Conversion Initiative
Social Responsibility Award –
BROOKFIELD RENEWABLE ENERGY GROUP
In recognition of the Kokish Hydroelectric Facility Partnership with
the ’Namgis First Nations
Certificate of Recognition for Sustainability
Leadership –
TRANSCANADA
In recognition of social and economic initiatives related to the
training of Energy Operations employees, and the promotion of
local procurement and supplier diversity
2015 Sustainable Electricity
Award Winners
45HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
July 16, 2015
Re: Sustainable Electricity Independent Verification Assurance Statement
As part of the Sustainable Electricity program, all CEA Corporate
Utility Members are verified once every four-to-five years on
sustainability performance and reporting by an independent
verifier in accordance with the CEA independent verification
protocols. This assurance letter is to attest that Duerden 
Keane Environmental Inc. (DK) successfully completed on-site
independent verification of the following companies in 2014
and 2015 calendar years:
•	 Brookfield Renewable Energy Group, Hydro Ottawa,
Maritime Electric Company, Limited, Nalcor Energy,
New Brunswick Power Corporation, Newfoundland Power Inc.,
Nova Scotia Power Inc., Oakville Enterprises Corporation,
Ontario Power Generation Inc., and Saint John Energy.
SCOPE OF THE VERIFICATION:
•	 The degree of adherence to the CEA Sustainable
Development—Corporate Responsibility Policy
•	 Consistency and accuracy of information provided to
CEA on key performance indicators
•	 Conformance with CEA’s requirement for an ISO 14001:2004
consistent Environmental Management System (EMS)
VERIFIER CONCLUSIONS:
•	 A good understanding and commitment to the principles
of the Sustainable Electricity program by senior company
executives and staff
•	 High level of consistency between information provided
to CEA and information published in other reports
•	 Some minor discrepancies in annual performance reporting
and need for corrective action
•	 Significant conformity with CEA’s EMS requirement
26 Forest Road  B3A 2M3
Tel.: 902 435 7562
Fax: 902 484 7639
Email: dandk@duerdenandkeane.com
www.duerdenandkeane.com
For Duerden  Keane Environmental Inc.,
Colin Duerden	
B.Sc., Ph.D., EP-EMS(LA), EP-CEA
Sue Keane
B.Sc., M.Eng., EP-EMS(LA), EP-CEA
VERIFICATION STATEMENT
46HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
GLOSSARY OF KEY TERMS
All Injury Frequency (AIF) Rate is
based on the total number of Fatalities
and Lost-Time Injuries, plus the total
number of Medical Treatment Injuries
which occurred in the calendar year.
All Injury Frequency Rate = [(No. of
Fatalities + No. of Lost-Time Injuries +
No. of Medical Treatment Injuries) x
200,000] / Exposure Hours.
Biodiversity includes the diversity
of ecosystems, of the species within
those ecosystems, and the genetic
diversity that exists within species.
It is a holistic concept referring to
the entire ecosphere, including all
of its ecosystems and the evolutionary
processes that allow it to function
and evolve.
Capital expenditure refers to the cost
of construction for new generation,
transmission, and distribution facilities
(units, plants, lines, substations, etc.);
the cost of refurbished generation,
transmission, and distribution facilities
(e.g. betterments and replacements
of existing generating units); and
expenditures for the purchase or
acquisition of pre-existing facilities.
Carbon dioxide equivalent (CO2eq) is
a universal measure of global warming
potential for GHGs. Carbon dioxide is
used as a reference gas against which
the other GHGs are measured since
it has the smallest global warming
potential. The global warming impact
of all GHGs is measured in terms of
equivalency to the impact of CO2 via
global warming potentials.
Climate Change Adaptation refers
to an adjustment in natural or human
systems in response to actual or
expected climatic stimuli or their
effects, which moderates harm or
exploits beneficial opportunities.
Lost-Time Injury Frequency Rate
is based on the total number of
Lost-Time Injuries or illnesses, which
occurred in the calendar year. Lost-
Time Injury Frequency Rate = (Number
of Lost-Time Injuries x 200,000) /
Exposure Hours.
Lost-Time Injury Severity Rate is
calculated using the following formula:
Lost Time Injury Severity Rate =
(Number of Lost Days x 200,000) /
Exposure Hours.
Non-compliance fine refers to a
monetary penalty for a major or a
minor infraction of existing federal/
provincial/municipal laws and
regulations.
Priority spills refers to petroleum spill
that is over 500 litres, contains over
one gram of polychlorinated biphenyls
(PCBs), and any volume of petroleum-
based or PCB-contaminated substance
that enters a water body.
SF6 (Sulphur hexafluoride) is a
colourless, odourless, non-toxic
non-flammable gas with very low
reaction chemistry. It is used by the
electricity industry as a gaseous
insulator for high-voltage circuit
breakers, switchgear, and other
electrical equipment, often replacing
harmful PCBs.
System Average Interruption
Duration Index (SAIDI) is defined
as the system average interruption
duration for customers served per
year. SAIDI = Total Customer-Hours of
Interruptions / Total Customers Served.
System Average Interruption
Frequency Index (SAIFI) is defined
as the average number of interruptions
per customer served per year.
SAIFI = Total Customer-Interruptions /
Total Customers Served.
Workplace diversity refers to the
variety of differences between people
in an organization, including race,
gender, ethnic group, age, tenure,
organizational function, education,
and background.
47HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE
FOR SUSTAINABLE ELECTRICITYTM
PROGRAM INQUIRIES
Channa Perera,
Director, Sustainable Development
Tel.: 613 230 9527
Email: perera@electricity.ca
Sandra Schwartz,
Vice President, Public Affairs
Tel.: 613 230 9876
Email: schwartz@electricity.ca
www.electricity.ca
www.SustainableElectricity.ca
www.SustainableElectricityCompany.ca
48HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC
ACHIEVEMENTS
AND ASSURANCE

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Final_2015 SE_Annual Report_full-interactive_e13

  • 1. DELIVERING VALUE to Canadians 2015 SUSTAINABLE ELECTRICITY™ ANNUAL REPORT
  • 2. FIND OUT MORE Copyright © 2015 by the Canadian Electricity Association. All rights reserved. “Sustainable Electricity” and “Sustainable Electricity Company” are trademarks of the Canadian Electricity Association. Sustainable Electricity™ is a mandatory sustainability program developed and implemented by Corporate Utility Members of the Canadian Electricity Association (CEA). The goals of the program are to integrate sustainability in company operations; foster continuous performance improvement; and advance the public acceptance and support for utility operations through meaningful engagement, collaboration, transparency, and accountability. In that context, this report provides an overview of the sustainability performance of CEA Corporate Utility Members in 2014. Thank you to the Sustainable Electricity Steering Committee Members for their support in making this report possible. CEA kindly asks that you read this report electronically rather than from a printed copy. When you see bold underlined text be sure to click for more information. Find out more about CEA and the Sustainable Electricity program here: www.electricity.ca www.SustainableElectricity.ca www.SustainableElectricityCompany.ca
  • 3. Discover how the electricity sector is delivering value to Canadians.HOME PAGE Leading Through Pivotal Times Performance Transparency Joint Executive Message Letter from the Public Advisory Panel Industry Roundtable Materiality Assessment Performance Highlights Sustainable Development Index ENVIRONMENTAL PERFORMANCE  Managing Impacts decrease in total SO2 emissions 9.7% SOCIAL PERFORMANCE  Building Relationships of CEA Members have a stakeholder engagement policy 90% ECONOMIC PERFORMANCE  Powering Canada’s Economy investment made by CEA Corporate Utility Members in generation, transmission, and distribution $13B INITIATIVES Driving Environmental Change INITIATIVES Achieving Results Through Collaboration INITIATIVES Delivering Value to Communities ACHIEVEMENTS ASSURANCE
  • 4. JOINT EXECUTIVE MESSAGE We are pleased to report on the progress made by CEA Corporate Utility Members towards sustainability in 2014. These are pivotal times for Canada’s electricity sector. The infrastructure that sustains the current electricity system is aging and is in the process of being renewed and modernized. A large portion of our highly skilled workforce is preparing to head into retirement over the next five years as we manage through this knowledge transfer and transition the new workforce to meet the challenges of the future. The energy relationship between utilities and their customers is also evolving from a one-way flow of electricity to a more complex two-way energy flow, challenging traditional utility business models. In addition, regulatory barriers to advancing sustainability and innovation persist. How utilities respond to these challenges will ultimately define the future of the electricity sector. In order to deliver sustainable, reliable, and cost-effective energy services to Canadians, it will be vital for the sector to address these challenges head on. That means reducing its environmental footprint; renewing and modernizing the electricity system; tapping into colleges and universities for skilled workers; and collaborating at an even greater level with policy makers, regulators, Aboriginal Peoples, and local communities. Last year’s sustainability performance exemplifies the commitment and perseverance of CEA Corporate Utility Members to addressing these challenges through innovative solutions. On environmental performance, utilities continued to achieve reductions in GHG and air emissions, adding to the substantial reductions achieved over the last decade. The electricity sector is projected to achieve further air emission reductions in the next five years as utilities invest in new technologies, including carbon capture and sequestration, higher efficiency gas turbines, and renewable energy sources such as wind, solar, and biomass. CEA members are equally committed to advancing the social and economic aspects of sustainability. We’re pleased to see that utilities are increasingly engaging local communities and Aboriginal Peoples in project planning through formal stakeholder initiatives. Employee health and safety is another on-going priority, although challenges in this area remain. While there were improvements in the overall number of injuries and their severity in 2014, unfortunately, there were a few tragic employee and public fatalities. The safety of employees, contractors, and the public is of paramount importance to member companies, and they are committed to greater vigilance and performance improvement. On the economic front, utilities are investing billions of dollars in infrastructure renewal and modernization to maintain reliability and better serve customers. In responding to the challenges of today, it is important to recognize that the efforts of utilities alone will not be sufficient to drive sustainable outcomes. Innovation needs partners. Collaboration needs partners. We want our stakeholders, including governments and regulators, to partner with us to drive the change that will deliver value to Canadians across the country. We are also grateful to the Sustainable Electricity Public Advisory Panel members for their review of utility performance and their valuable advice. In their 2015 annual letter to the CEA Board (published in this report) they noted several areas for performance improvement and policy positioning, notably on carbon pricing and electrification of transportation. Both of these policy suggestions are also consistent with CEA’s Vision 2050. CEA and its members look forward to discussing these suggestions with the Panel as part of the journey on continuous improvement. As you review the sustainability performance of CEA Corporate Utility Members outlined in this report, we hope you will also share your thoughts on how the sector can create a stronger, more efficient electricity system that delivers environmental, social, and economic benefits to all Canadian communities. Anthony M. Haines, President and Chief Executive Officer, Toronto Hydro Corporation, Chair, CEA Board of Directors Max Cananzi, President and Chief Executive Officer, Horizon Utilities Corporation, Chair, CEA Board Committee on Sustainability Hon. Sergio Marchi, President and Chief Executive Officer, Canadian Electricity Association The Executives from left to right: Anthony M. Haines, Max Cananzi, and the Hon. Sergio Marchi. 4HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 5. LETTER FROM THE PUBLIC ADVISORY PANEL The members of the Sustainable Electricity program’s Public Advisory Panel are pleased to submit this annual letter of advice to the CEA Board of Directors. Our role is to provide the perspective of informed public representatives on the environmental, social, and economic performance of Canada’s electricity industry as measured against the principles and indicators of the program. The Panel continues to be pleased with the progress made by CEA members in 2014 on several fronts, including reductions of greenhouse gases, sulphur dioxide, and nitrogen oxides. Good progress continues to be made on the implementation of environmental management systems, while public and stakeholder engagement is also improving. Health and safety performance is another area in which some progress is being made in terms of total number and severity of injuries, but we note that there were a few tragic employee and public fatalities in 2014. The main area in which performance has slipped is priority spills, which has increased in each of the past two years and continues to require focused attention. We also note that further progress must be made on developing more meaningful performance metrics related to Aboriginal relations and workplace diversity issues, and we encourage CEA members to focus on these areas in the coming year. We observe that investment in infrastructure decreased slightly in 2014 despite the need for sustained effort in this regard. It is crucial that the sector continues to invest in infrastructure to ensure system reliability. At the same time, it must also consider issues such as climate change adaptation in investment planning. We understand that energy regulatory agencies across Canada may not accept the critical need by CEA members for funds to support both infrastructure renewal and climate change adaptation planning and implementation. This continues to be a barrier to CEA members fulfilling their Sustainable Electricity program commitments and will ultimately cost Canadians in the long run if the necessary investments are not made. As CEA members pursue Vision 2050 over the coming decades, the Panel expects to see concentrated efforts to improve performance in all areas of the Sustainable Electricity program and related indicators, and hence improvement in the Sustainable Development Index. Further, we expect to see all CEA member companies branded as Sustainable Electricity Companies, a designation that has already been achieved by several leading utilities. We also publicly encourage non-member companies to consider voluntarily reporting their sustainability information to CEA on an annual basis and to also seek the Sustainable Electricity Company designation, which is available to them irrespective of CEA membership. Our desire is to see all electricity companies in Canada demonstrating holistic and integrated approaches to sustainability and, in turn, for Canada to become recognized as the world leader in this regard. We believe that this goal is within reach. Finally, the Panel urges CEA members to develop and agree upon a clear policy statement or declaration on carbon pricing. This has become a significant issue in Canada and requires policy makers to work together to implement pricing in a manner that properly serves Canadians and the world. We also believe CEA members should work together on a clear policy statement on the role the electrification of transportation will play in the evolution of the electricity sector in Canada. Hon. Mike Harcourt, Chair, Public Advisory Panel, CEA Sustainable Electricity program The Hon. Mike Harcourt Public Advisory Panel Members Mr. Anthony M. Haines President and Chief Executive Officer, Toronto Hydro Corporation Chair, CEA Board of Directors 5HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 6. INDUSTRY ROUNDTABLE: PERSPECTIVES ON SUSTAINABILITY CEA invited four senior electricity sector leaders to share their thoughts on what it will take to build a sustainable electricity system that can reliably meet the current and future energy needs of all Canadians. Q: What is the most important thing for Canadians to understand about the future of the country’s electricity system? LETHBRIDGE: Renewing and modernizing the electricity system will require a meaningful conversation about how electricity rates are set, and the role that governments and regulators play in the process. We want to ensure policy and regulatory decisions allow for greater innovation and sustainability that will benefit our customers over the long term. CLARK: Canada has an electricity system that ranks among the best in the world, powering our society and our economy. Yet the existing electricity supply and delivery infrastructure is aging and new facilities are needed to meet changing demands. More than ever, the well-being of Canada will depend on a secure, reliable, sustainable supply of electricity. FREHLICH: The role of the electricity system is evolving faster than ever before. In the past, it was relatively straightforward: generating power in central locations and transmitting that power through wires to customers. It was a one-way network from supplier to consumer. That is quickly changing to become a two-way, consumer- oriented “Internet of electricity” that is giving Canadians greater choices and control over how power is supplied and consumed. ARSENAULT: Canadians should know that the electricity system of the future will be an intelligent, end-to-end system that leverages many new technologies. It will also require utilities to work in partnership with their customers. An engaged customer who looks beyond their own bill will be key to shaving peaks, offsetting new builds, and enhancing renewable integration. Ave Lethbridge, Executive Vice President and Chief Human Resources and Safety Officer, Toronto Hydro Corporation Colin Clark, Chief Technical Officer, Brookfield Renewable Energy Group Dennis Frehlich, Executive Vice President and Chief Operating Officer, AltaLink Lynn E. Arsenault, Vice President of Customer Service, New Brunswick Power Corporation What do you expect from your electricity company? Share your thoughts @CDNelectricity. 6HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 7. Q: What is being done — or needs to be done — to help facilitate that conversation with your customers? CLARK: Considering the complexity of the electricity system, which can be quite mysterious to the public and government alike, making a case for renewed investment can be difficult. To tackle that problem, the sector needs to use solid facts and communicate effectively, engaging in a two-way dialogue with all of our stakeholders to ensure the future of the industry is directly informed by public opinion. FREHLICH: Because it’s easy to take electricity for granted, the sector needs to do a better job explaining the value of electricity and how the grid will deliver that value by enabling a different future. As we begin to decide how sustainable we want our electricity to be, the choices made today will define the role of the grid for decades to come. ARSENAULT: At the same time, we have to recognize that value will not be the same for everyone. The sector will need to better understand what different types of customers value in order to provide choices that are easy to access and understand. Q: What regulatory or policy changes will be needed for the system to evolve and accommodate new technologies and new business models? CLARK: As the environmental, social, and economic landscape changes, utilities can no longer apply the traditional model upon which we built the system. New policies must take into account longer development lead times and the increased cost of investment. New business models must balance the advantages of new technologies with the remaining value of existing systems. Regulators must also weigh the overall benefits of prudent investment against the overall cost impact on customers. FREHLICH: The challenge will be to make regulatory and policy changes in a way that both enables the future and respects past investment decisions. Changes will need to be integrated across supply, consumption, and transportation; policy will need to provide consumers with greater choice and flexibility, and encourage and help industry to work out the technical and economic value of new technologies. ARSENAULT: What will need to be considered and enhanced is performance-based regulation that ensures utilities are remunerated for the efforts to leverage energy efficiency, demand response, and distributed generation to their maximum potential. The regulators’ support will be key to shifting our business model to become energy service providers that empower people’s lives. 7HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 8. Q: How is the CEA’s Sustainable Electricity program contributing to the achievement of the above? LETHBRIDGE: I love the notion of the triple bottom line: providing economic, environmental, and social benefits, without having to trade one for the other. That speaks to innovation in a way everybody can recognize, leading to better decision- making. CEA’s Sustainable Electricity program provides a unified platform for starting a strategic conversation with stakeholders. Utilities can learn from each other and compare best practices, which raises the bar for the entire sector and benefits all Canadians. CLARK: The Sustainable Electricity program is particularly effective because it provides guiding principles for sustainability that are reinforced by key sustainability performance indicators, reviewed by an independent Public Advisory Panel, and verified by an external verifier. Sustainable development is an imperative for every enterprise in Canada. The electricity sector cannot expect to meet the challenges of the future without addressing sustainability and working in partnership with its stakeholders. FREHLICH: It’s keeping our industry focused on the long-term goal of sustainability by setting out a balanced path of social, environmental, and economic measures. Our collective commitment to progressing as an industry and challenging ourselves to demonstrate measurable progress in these areas will continue to drive us toward achieving a sustainable electricity grid into the future. Q: In what ways do you think the electricity sector is delivering value to Canadians? LETHBRIDGE: Today, there’s the core work that utilities do: keeping the lights on and delivering a safe, reliable supply of electricity right to our customers’ doors. We do that really well. Where we will bring the most value to Canadians, though, is by looking at the longer term and planning to meet the electricity needs of both today and tomorrow in a sustainable way. FREHLICH: The electricity sector delivers real value to Canadians every second of every day. It will be instrumental in delivering value into the future by providing lower carbon electricity, more options to use greener transportation such as electric vehicles, and the ability to store electricity when the price is low and use it later when needed. I’m sure there is untapped value we haven’t even dreamed of yet. ARSENAULT: We’re delivering value by providing reliable electricity at low rates from mostly non-emitting sources. Unfortunately, most of this is taken for granted as an invisible commodity. 8HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 9. MATERIALITY ASSESSMENT OF SUSTAINABILITY ISSUES 2014 marked the five-year anniversary of the Sustainable Electricity program, providing an opportunity to reflect on the foundations of the program and work to further consolidate the achievements and improve its core elements. This review included the commissioning of a materiality assessment to ensure the focus of the program and the Annual Report reflect the sustainability issues that are most important to national electricity sector stakeholders. Based on stakeholder input, the following material sustainability issues were identified for the sector (Figure 1). IncreasingStakeholderImportance Increasing Business Impact Water quality Air emissions Waste Community development and investment Employee health and safety Public health and safety Land and biodiversity Employee relations and recruitment Water availability Governance Business model pressures Stakeholder engagement and communication Electricity demand Aboriginal relations Climate change adaptation GHG emissions Infrastructure, renewal and grid modernization Environment Social Economic Figure 1  Materiality Matrix The matrix provides guidance on the most important sustainability issues to stakeholders and the business impacts of those issues. CEA used this matrix to further refine the program’s Sustainable Development—Corporate Responsibility Policy and the performance indicators. Some of the new performance indicators emerging from the materiality assessment are still being developed and will be reported on in future years. New Sustainable Development—Corporate Responsibility Policy 9HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 10. NET GENERATION BY FUEL TYPE (GIGAWATT-HOURS) – 2014 2013 PERCENTAGE DIFFERENCE Coal 39,099 42,868 Oil 2,099 1,994 Diesel 308 283 Natural gas2 13,724 13,946 Hydroelectric 165,607 171,641 Nuclear 52,786 48,815 Other renewables 4,901 4,585 TOTAL NET GENERATION 278,525 284,133 Renewable energy purchased from non-CEA member companies 7,409 5,707 Non-renewable energy purchased from non-CEA member companies 11,580 – 5.3% -8.8% -1.6% -3.5% 8.8% 8.1% 6.9% -2.0% 29.8% 2014 2013 PERCENTAGE DIFFERENCE Total length of distribution lines 714,836 705,807 Total length of transmission lines 117,936 117,569 TRANSMISSION AND DISTRIBUTION LINES (KILOMETRES) 1.3% 0.3% CEA MEMBER PERFORMANCE HIGHLIGHTS¹ ¹ Some 2013 performance data may have changed from the previous annual report due to changes submitted by members in 2014. In addition, some indicators may have changed based on the materiality assessment. 10HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 11. -9.7% -3.4% -8.2% -4.3% -2.7% -15.6% -8.7% -13.9% 1.1% 2014 2013 PERCENTAGE DIFFERENCE Total gross annual sulphur dioxide emissions (thousand tonnes)2, 3 218.05 241.52 Sulphur dioxide net fossil intensity (tonnes/GWh)4 3.95 4.09 Sulphur dioxide net system intensity (tonnes/GWh)3, 4 0.78 0.85 Total gross annual nitrogen oxide emissions (thousand tonnes)2, 3 101.10 105.63 Nitrogen oxide net fossil intensity (tonnes/GWh)4 1.81 1.79 Nitrogen oxide net system intensity (tonnes/GWh)3, 4 0.36 0.37 Total gross annual mercury emissions (kg) 567.84 672.69 Mercury net coal-fired intensity (kg/TWh)4 14.33 15.69 Mercury net system intensity (kg/TWh)4 2.04 2.37 2014 2013 PERCENTAGE DIFFERENCE Total gross annual direct carbon dioxide equivalent emissions from fossil generation (million tonnes)2, 3 47.26 50.16 Carbon dioxide equivalent net fossil intensity (tonnes/GWh)4 855.70 848.88 Carbon dioxide equivalent net system intensity (tonnes/GWh)3, 4 170.00 176.54 Number of priority spills3 151 129 Total sulphur hexafluoride used for maintenance purposes (kilograms)3 4,673 6,617 Companies with an ISO 14001:2004 consistent environmental management systems (per cent)3 87 87 -3.7% -29.4% -5.8% 0.8% 0% 17.1% ENVIRONMENT Improved performance Decreased performance No change ² The 2014 natural gas generation and SO2, NOx, and CO2 emissions include 50 per cent ownership share of Ontario Power Generation Inc. in Portlands Energy Centre (Toronto) and Brighton Beach (Windsor). Other owners, TransCanada (Portlands) and ATCO Power (Brighton) did not report the remaining 50 per cent of generation and associated air emissions. ³ These indicators are included in the Sustainable Development Index (SDI). 4 Intensity calculations are based on total emissions divided by net fossil and system generation. 11HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 12. 2014 2013 PERCENTAGE DIFFERENCE All injury/illness frequency rate (injuries per 200,000 hours)3, 5 1.59 1.72 Lost-time injury frequency rate (lost-time injuries per 200,000 hours)3, 5 0.70 0.73 Lost-time injury severity rate (calendar days lost per 200,000 hours)3, 5 16.73 19.49 Companies with a commitment to non-discrimination (per cent) 97 – Companies with a formal stakeholder engagement policy (per cent)3 90 77 Companies with diversity programs (per cent) 57 37 Companies that report on sustainability performance (per cent)3 67 57 Companies with procedures requiring early consultation or engagement with Aboriginal communities (per cent)3 100 100 Companies with procedures for ensuring training and employment opportunities are provided to Aboriginal employees (per cent)3 67 63 2014 2013 PERCENTAGE DIFFERENCE Total value of company charitable donations ($ millions)3 27.517 33.696 Total capital expenditures on new/refurbished generation infrastructure ($ billions)3 4.104 5.246 Total capital expenditures on new/refurbished transmission infrastructure ($ billions)3 6.034 5.704 Total capital expenditures on new/refurbished distribution infrastructure ($ billions)3 2.988 3.295 System Average Interruption Duration Index (SAIDI) excluding significant weather events (duration in hours)3, 6 5.1 5.9 System Average Interruption Frequency Index (SAIFI) excluding significant weather events (interruptions per customer)3, 6 2.3 2.5 Total energy saved through energy conservation initiatives (MWh) 1,087,445 1,688,946 SOCIETY ECONOMY – -7.6% -4.1% -14.2% 6.4% 0% 16.9% 54.1% 17.5% -18.3% -21.8% -9.3% -13.6% -8.0% -35.6% 5.8% 5 These figures also include Hydro Quebec’s safety performance related to generation, transmission, and distribution operations. 6 These figures also include data from the City of Red Deer Electric Light and Power, Enersource Hydro Mississauga, Hydro-Québec, Newmarket-Tay Power Distribution Ltd., Northland Utilities, Oshawa PUC Networks, PowerStream Inc., St. Thomas Energy Inc., Veridian Connections, Waterloo North Hydro, ATCO Electric Yukon, and London Hydro. 12HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 13. 0 25 50 75 100 Overall SDIIndicatorScore Environment Social Economic 20142013201220112010 SUSTAINABLE DEVELOPMENT INDEX (SDI) CEA uses an innovative Sustainable Development Index (SDI) to measure the overall sustainability performance of its Corporate Utility Members. The SDI provides a high-level overview of sustainability performance for the last five years against a baseline of 2008–2009. The SDI is calculated as a score between -100 and +100, determined by the level of performance in the three sustainability pillars (environmental, social, and economic) relative to the baseline. While the individual sustainability trends have fluctuated over the years, the overall performance of CEA Corporate Utility Members continues to stay in the positive score range of the SDI as shown in Figure 2 below. SDI Figure 2  Sustainable Development Index, 2010–2014 Performance Relative to 2008–2009 Baseline View of Brookfield Renewable Energy Group’s Aubrey Hydro Station in Ontario. Photo courtesy of Brookfield Renewable Energy Group. 13HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 14. SDI PERFORMANCE SUMMARY (2010–2014) Environment CEA members’ environmental performance over the last five years has been generally positive, driven primarily by continued emissions reductions through decommissioning of coal units in several provinces, shift to high-efficiency natural gas fired facilities, and investments in renewable sources such as wind, solar, and biomass. As shown in Table 1, one area that continues to have a negative impact on the SDI is priority spills, although the majority of these spills are limited to a few member companies. While these companies take immediate action to clean-up affected areas, there are on-going challenges, including aging equipment, severe weather, and in some cases, vandalism. These companies are working to reduce the number of priority spills through new investments, including in secondary spill containment systems. Social Of the three pillars, CEA members’ performance since 2010 has been strongest in the social pillar of the SDI, except for brief decline in performance in 2013. Performance in this area rebounded in 2014 due to a reduction in the number of employee-related injuries and the severity of those injuries. Formalized commitments to engaging Aboriginal communities and stakeholders also helped improve the overall score in the social category of the SDI. Economic CEA members’ economic performance has seen the greatest fluctuation over the last five years, primarily due to the unpredictable frequency and duration of outages, as well as varying levels of investment in new and refurbished infrastructure based on project cycles. While outage frequency and duration have had a significant impact on the economic score of the SDI in previous years, both frequency and duration levels improved in 2014 over the previous year, but compared to the SDI baseline, the performance still had a negative contribution (Table 1). Table 1  Sample of Performance Indicators with Greatest Positive and Negative Contribution to the Sustainable Development Index 2010 2011 2012 2013 2014 Metrics with the Greatest Positive Contribution Engagement with Aboriginal Communities during Project Planning and Development Sulphur Dioxide Emissions Charitable Donations Sulphur Dioxide Emissions Sulphur Dioxide Emissions Investment in Generation Infrastructure Investment in Generation Infrastructure Investment in Generation Infrastructure Investment in Generation Infrastructure All Injury/Illness Frequency Rate Metrics with the Greatest Negative Contribution Priority Spills System Average Interruption Duration Index ISO Consistent EMS Priority Spills Priority Spills Formal Stakeholder Engagement Policy System Average Interruption Frequency Index System Average Interruption Frequency Index System Average Interruption Duration Index System Average Interruption Duration Index Note: Since the previous report, the SDI baseline of 2007–2008 has been changed to 2008–2009 to better reflect the sector’s sustainability performance over the last five years. 14HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 15. 9.7%DECREASE in total SO2 emissions 4.3%DECREASE in total NOX emissions 5.8%DECREASE in total CO2eq emissions from fossil generation 15.6%DECREASE in total mercury emissions ENVIRONMENTAL PERFORMANCE Delivering value by mitigating environmental impacts CEA members are committed to reducing adverse environmental impacts by investing in emission abatement technologies, renewable energy sources, ecosystem management, and enhanced environmental management practices. These measures, along with partnerships with stakeholders, can lead to positive outcomes for communities and their environment. 15HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 16. CAPITAL POWER From coal mine to farmland: Delivering value through reclamation The Genesee Mine near Warburg, Alberta, has fuelled Capital Power Corporation’s coal-fired Genesee Generating Station for more than two decades. As portions of the mine reach their end of life, Capital Power is committed to returning the land to a mix of productive farmland and wildlife habitat, restoring the local landscape to pre-mining conditions so that it can be used once again by people and animals alike. Capital Power’s ongoing reclamation plan for the mine includes not only reforestation but also the re-establishment of wetlands and creeks, the creation of wildlife corridors, and the renting of reclaimed land to local farmers. The biggest challenge facing this project, however, is the fact that the mine was built on former farmland: its previous agricultural use introduced a number of undesirable weed species, which can hinder the success of large-scale tree plantation. To address this challenge, Capital Power began co-funding reforestation research and tree-planting projects at the University of Alberta in 2008. That investment paid off last year with the establishment of the East Wetland: a native-species wetlands area within the reclaimed portion of Genesee Mine, where more than 30,500 trees have been planted on 7.5 hectares of land. The East Wetland also serves as a field trial for adapting various reforestation systems to the unique soil conditions around the mine, important research vital to creating a natural area that will one day develop into a native forest. Treatments being tested include weed- suppressing ground cover (such as wood mulch salvaged from land-clearing operations and biodegradable horticultural film mulch) and the use of large planting stock such as poplar poles and bare- root aspens. After the first growing season in 2014, the trees have established very well. Clear differences have also been noted among the tested treatments, with the salvaged wood mulch providing both the best weed suppression and the most natural-looking soil surface. Mother Nature also helped. “We had good conditions and consistent rains throughout the summer,” says Eckehart Marenholtz, Registered Professional Forester and a Capital Power reforestation consultant. “By fall, there were encouraging signs that the aspens had established on site and would continue to grow.” Going forward, the East Wetland will provide valuable information for developing a natural-area reforestation system at Genesee Mine as well as other similar reclamation projects across the country. What’s more, as wildlife returns to the area and local farmers are able to use the reclaimed land to grow crops such as canola, barley, wheat, and alfalfa, this project will deliver increasing value to the area’s ecosystems and economy. “By fall, there were encouraging signs that the aspens had established on site and would continue to grow.” Eckehart Marenholtz Registered Professional Forester Over 30,500 trees were planted onto lowlands and uplands surrounding a lake as part of Capital Power’s Genesee Mine Reclamation project. A salvaged wood mulch plot with the lake in the background shows the aspen and white spruce trees one month after planting. Photo courtesy of Capital Power Corporation. A tree planter from Chickadee Reclamation plants bare-root aspen saplings as part of Capital Power’s innovative reclamation initiatives (Genesee Generating Station is shown in the background). Photo courtesy of Capital Power Corporation. 16HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 17. PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP Manage facilities and operations through a risk-based approach that avoids or minimizes impacts on the environment (air, land, and water), and supports ecosystem protection and conservation of biological diversity. Environmental Management Systems and Regulatory Compliance Implementation of Environmental Management Systems (EMS) consistent with IS0 14001:2004 is a mandatory requirement of the CEA Sustainable Electricity program given it is an effective framework for identifying and managing environmental impacts of the sector. By the end of 2014, 87 per cent of CEA Corporate Utility Members had an EMS in place that conformed to the ISO 14001:2004 standard—the same percentage as reported in 2013 (Table 2). CEA members without a fully conformant EMS are either fine-tuning their existing system or working to implement a new system. CEA expects the remaining companies to fully implement their new systems in the next few years. An EMS also provides a framework for identifying legal environmental requirements. In 2014, only one CEA member company reported a non-compliance fine for violating federal/provincial/territorial laws and regulations. However, several member companies received an additional nine non-compliance notices and orders for minor infractions, which they took immediate action to rectify. Air Emissions The electricity sector’s contribution to national air emissions is steadily declining, helping to reduce smog and its associated health impacts. Relative to 2000, the electricity sector’s sulphur dioxide (SO2), nitrogen oxide (NOX), and mercury emissions have all declined by just over 50 per cent. As of 2013 (latest available data from Table 2  Implementation of ISO 14001:2004-consistent Environmental Management Systems Figure 3  SO2 Emissions and Intensity 2013 2014 CEA Corporate Utility Members with ISO 14001: 2004-consistent EMS 87 % 87 % Absolute Emissions Fossil Intensity Net System Intensity ThousandsofTonnes 0 50 100 150 200 250 300 20142013201220112010 0 1 2 3 4 5 6 266.73 239.73 248.03 241.52 218.05 3.954.094.043.924.14 0.780.850.870.850.99 Tonnes/GWh 17 PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 18. Environment Canada), the electricity sector was responsible for 22.6 per cent of SO2 emissions (277.90 thousand tonnes), 7.8 per cent of NOX emissions (161.02 thousand tonnes), and 22.6 per cent of mercury emissions (895.08 kg) in Canada.7 In 2014, CEA Corporate Utility Members were responsible for 218.05 thousand tonnes of SO2, 101.10 thousand tonnes of NOX and 567.84 kg of mercury, a reduction of 9.7 per cent, 4.3 per cent, and 15.6 per cent relative to 2013 performance levels, respectively (Figures 3, 4, and 5). The net system intensity (all generation types) also dropped slightly for all air emissions, although NOX fossil intensity increased slightly due to use of higher-emission intensive units for meeting peak demand. The continued decline in air emissions is a result of a number of factors, including the decommissioning of coal-fired units in several provinces (with Ontario making the largest contribution), increased use of natural gas in Alberta, Ontario, and Nova Scotia, and greater integration of renewables into the overall national fuel mix. CEA and its electricity generation members are continuing to work with federal, provincial, and territorial governments to further strengthen the regulatory framework for air emissions. As existing plants are retired and new technologies become more economically viable, utilities will begin investing in advanced facilities and processes to further reduce their emissions. Ontario Power Generation Inc. (OPG), for example, converted two of its coal-fired plants to biomass, which releases approximately 75 per cent less NOX than coal and produces virtually no SO2 emissions. Others, such as ATCO Power, continue to deliver incremental emission reductions at existing operations through combustion optimization projects while continuing to evaluate optimal future power generation solutions. Ecosystem Protection and Biological Diversity CEA Corporate Utility Members are taking proactive action to understand, minimize, and manage the potential environmental impacts associated with their operations through collaboration with government, conservation authorities, Aboriginal groups, academia, and other stakeholders. In 2014, this included implementing avian protection plans to reduce bird collisions with power lines, partnering Figure 4  NOx Emissions and Intensity Figure 5  Mercury Emissions and Intensity Absolute Emissions Fossil Intensity Net System Intensity ThousandsofTonnes 0 20 40 60 80 100 120 140 160 180 200 20142013201220112010 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 118.41 109.04 107.04 105.63 101.10 1.811.79 1.74 1.781.84 0.360.370.380.390.44 Tonnes/GWh Absolute Emissions Fossil Intensity Net System Intensity Kilograms 0 200 400 600 800 1,000 1,200 1,400 20142013201220112010 0 5 10 15 20 25 1,235.07 846.79 739.80 672.69 567.84 14.33 15.69 17.22 19.65 23.72 2.042.372.592.99 4.57 Kg/TWh 7 Environment Canada, National Pollutant Release Inventory (NPRI), http://www.ec.gc.ca/npri. 18 PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 19. with conservation groups such as Ducks Unlimited Canada to restore wetlands and other wildlife habitats, and using innovative new construction techniques to reduce the space and structures required for transmission line rights-of- way. Along with these efforts, CEA and its members continue to work closely with the federal government and other stakeholders to improve the regulatory framework around species conservation and environmental assessment. Priority Spills Priority spills are defined as a petroleum spill that is over 500 litres, contains over one gram of polychlorinated biphenyls (PCBs), and any volume of petroleum- based or PCB-contaminated substance that enters a water body. Given their potential for adverse environmental impacts, CEA closely tracks the number of spills reported by its members each year and the actions taken to remediate them. As Figure 6 shows, a total of 151 priority spills were reported in 2014, an increase of 17.1 per cent over 2013. As these spills can result from a wide variety of causes ranging from aging transformers and leaking equipment to weather-related incidents and acts of vandalism, preventing them entirely remains a challenge despite the use of proactive inspections and assessments. Fortunately, the majority of these spills are contained to just a few member companies and, in every instance, these companies respond according to all applicable procedures and regulatory requirements to ensure a proper cleanup and minimize any adverse environmental impacts. To reduce the total number of spills and mitigate their impacts, CEA members are phasing out older equipment, investing in emergency spills response training, and installing secondary liquid containment systems. Figure 6  Annual Priority Spills NumberofSpills 0 20 40 60 80 100 120 140 160 20142013201220112010 151 129 102 97 107 Ontario Power Generation’s Atikokan Biomass Station is the largest capacity 100 per cent biomass fueled plant in North America. Photo courtesy of Ontario Power Generation Inc. 19 PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 20. PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION Mitigate greenhouse gas emissions from facilities and operations, and adapt to the adverse effects of climate change on electricity infrastructure. Greenhouse Gas Emissions Currently responsible for approximately 12 per cent of GHG emissions in Canada, the electricity sector has reduced its carbon footprint significantly—about 45 million tonnes (Mt) since 2000.8 The elimination of more than 7,000 MW of coal-fired electricity by OPG alone has helped the sector reduce nearly 25 Mt of GHG emissions per year, making it one of the largest climate change initiatives ever undertaken in North America. In fact, 99.7 per cent of the electricity OPG produces now is free of GHG and air pollutants, helping to maintain the emission reductions achieved through its coal-plant retirement strategy. OPG and other member utilities from across the country are also making significant investments in new generation facilities, including large as well as run-of-river hydro, wind, solar, biomass, natural gas, and carbon capture to reduce their overall carbon footprint. For instance, SaskPower’s 120 MW Boundary Dam Carbon Capture and Storage (CCS) facility came into operation in 2014, which also helped decommission an aging 65 MW Unit at the Boundary Dam Station. In 2014, CO2eq emissions from CEA Corporate Utility Members decreased to 47.26 Mt, a reduction of 5.8 per cent from 2013 (Figure 7). The CO2eq net system intensity also decreased to 170.00 tonnes/GWh from 2013 levels, a reduction of 3.7 per cent. However, the CO2eq net fossil intensity increased slightly (0.8 per cent) to 855.70 tonnes/GWh from 2013 levels. While the year-over-year trend will continue to fluctuate in the short term, new investments in low-emitting generation, purchase of renewable energy from other suppliers, combined with plant retirements will further reduce the sector’s contribution to GHG emissions. Figure 7  CO2eq Emissions and Intensity Absolute Emissions Fossil Intensity Net System Intensity MillionsofTonnes 0 10 20 30 40 50 60 70 20142013201220112010 0 100 200 300 400 500 600 700 800 900 1,000 60.63 54.41 51.97 50.16 47.26 855.70848.88846.39 890.59 941.31 170.00176.54182.29192.30224.26 Tonnes/GWh 8 Environment Canada, National Inventory Report 1990-2013: Greenhouse Gas Sources and Sinks in Canada, www.ec.gc.ca. Seven Sisters Generating Station on the Winnipeg River. Photo courtesy of Manitoba Hydro. 20 PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 21. Climate Change Adaptation Climate change and extreme weather events will continue to have a profound impact on the long-term reliability and resiliency of Canada’s electricity generation, transmission, and distribution networks. Specifically, seasonal variability in precipitation, temperature, evaporation, and lake levels—and their divergences from normal ranges—are the key elements of concern. In 2014, 63 per cent of CEA members identified climate change as an enterprise risk issue. To address this issue, CEA members are currently working on a sector-specific template for developing climate change adaptation plans. Several member companies also took steps in 2014 to assess the potential vulnerabilities unique to their own operations, such as the increased risk of declining glaciers and snowpack in British Columbia or more severe winter storms in the Atlantic provinces. In addition, some members are working with government and academic partners to research various climate change scenarios and their implications for future energy demand in their service areas. Hydro Ottawa employee works to safely remove tree branches that have fallen on power line wires. Photo courtesy of Hydro Ottawa. 21 PRINCIPLE 1: ENVIRONMENTAL STEWARDSHIP PRINCIPLE 2: CLIMATE CHANGE MITIGATION AND ADAPTATION HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 22. A progressive approach to vegetation clearing at Columbia Power When a transmission line is cleared, vegetation is typically cut to ground level, leaving only grassland behind. For the Waneta Expansion Project, Columbia Power Corporation cleared the 10-km line in a way to directly benefit local wildlife and species at risk. Instead of clearing all trees and shrubs, only the largest trees were removed and the shrub layer was left largely intact across the length of the line. Wildlife trees were either retained or created wherever possible. This approach ensured habitat for a number of rare species in the Waneta area including yellow- breasted chats, western skinks, and rubber boas. As an added bonus, all listed plant species were flagged prior to clearing and protected during construction, resulting in no-net-loss to the number of rare plants along the line. NEW INITIATIVES Rubber boa, a listed reptile, on the Waneta Expansion transmission line. Photo courtesy of Wendy Horan. Ontario Power Generation makes a substantial commitment to bio-energy Ontario Power Generation Inc. (OPG) is leading the way in generating energy from renewable, plant- based biomass. The Atikokan Generating Station was converted from coal to biomass in July 2014— making it the largest 100 per cent biomass-fuelled plant in North America—followed by the Thunder Bay Generating Station in January 2015. OPG also invested in the new BioEnergy Learning and Research Centre at Confederation College in Thunder Bay, which provides renewable power to the college while offering opportunities for hands-on training and applied research in bio-energy. The Ontario Power Generation BioEnergy Learning and Research Centre, the first of its kind in Ontario, provides bio-energy students at Confederation College with hands-on training in their field. Photo courtesy of Ontario Power Generation Inc. Making history with SaskPower’s carbon capture and storage project The carbon capture and storage (CCS) project at SaskPower’s Boundary Dam Power Station is the world’s first commercial-scale CCS process installed in a coal-fired plant. By taking an old facility nearing its end of life and rebuilding it with CCS technology, SaskPower can produce electricity that is 10 times cleaner than traditional coal plants. As the CCS process ramps up to full operation, it will capture 90 per cent of carbon dioxide and 100 per cent of sulphur dioxide, which can then be re-used for industrial and research purposes. Interior of SaskPower’s carbon capture and storage (CCS) facility, Boundary Dam Power Station. Photo courtesy of SaskPower. 22HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 23. REAL OUTCOMES ENMAX achieves emission reductions through investments in solar photovoltaic power As of December 2014, ENMAX Corporation has installed more than 1,600 kW of solar power capacity on homes and businesses across Alberta— that’s over a quarter of all grid-connected solar in the province (by capacity) according to Alberta Electric System Operator (AESO) tracking. With the commercial and residential projects deployed to date, it is estimated that over 36,000 tonnes of CO2e reductions will be achieved across the province over the combined lifetime of these systems. EPCOR takes extra measures to safeguard rare bird species Before construction began on upgrades to Lambton Substation, an environmental assessment discovered something unexpected: the nearby wetlands were home to pied-billed grebes, a protected species. To ensure the birds’ safety, EPCOR Utilities Inc. worked with environment, regulatory, and engineering teams to develop and enforce certain measures during construction, including completing disruptive activities during mandated periods, eliminating the use of loud diesel generators, and creating a spotting program for employees to report any interactions with the birds. Relocating an entire FortisAlberta power line to protect greater sage-grouse For the greater sage-grouse, power lines pose a grave threat: they provide perches for predatory raptors, which drive the grouse out of its natural habitat. To support grouse conservation and recovery efforts, when individual poles near the town of Manyberries needed replacement, FortisAlberta Inc. took the extra step to completely relocate and rebuild the entire power line—118 poles and 15.4 km of line —out of the grouse’s critical habitat and to the nearby roadside. Manitoba Hydro conducts research on Lake Sturgeon Manitoba Hydro’s Lake Sturgeon Stewardship and Enhancement Program helps protect this species by increasing knowledge of populations affected by hydroelectric development, advancing understanding of sturgeon ecology, and studying the effectiveness of conservation efforts. In 2014, the program supported a stocking program in the Nelson River and conducted studies on the survival of stocked sturgeon. Manitoba Hydro also funded research on sturgeon habitat suitability, juvenile movement, and area requirements. Saint John Energy implements new system to guard against oil spills To reduce the risk of a major spill, Saint John Energy installed a new oil containment system during the refurbishment of its Union Street Substation. While water can pass through the polyvinyl blanket and barrier boom system, hydrocarbons are immediately captured and solidified upon contact. The system is capable of holding 125 per cent of the volume of oil housed in the company’s largest power transformer, allowing for greater flexibility when retrofitting existing substations. A wetland assessment led to the discovery of a protected bird species at EPCOR’s Lambton Substation. Photo courtesy of EPCOR Utilities Inc. Manitoba Hydro conducts research on Lake Sturgeon. Photo courtesy of Manitoba Hydro. 23HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 24. STAKEHOLDER AND COMMUNITY ENGAGEMENT FortisBC goes above and beyond in responding to priority spills In September 2014, a tractor-trailer hit one of FortisBC Inc.’s distribution poles, spilling 110 litres of non-PCB transformer oil onto an organic apple orchard in the heart of the Okanagan. Although it was a third-party incident, the utility responded quickly to dig out the contaminated area, replace the soil, and plant five new trees. Throughout the process, it worked closely with the farm’s owner to ensure the remediation efforts would still allow the orchard to meet the strict requirements for organic certification. Cutting emissions through Horizon Utilities’ Smart Commute program For Horizon Utilities Corporation, reducing emissions starts at home by encouraging its employees to walk, cycle, carpool, and take public transit through its Smart Commute program. In 2014, it introduced dedicated carpool parking spots, built three new bicycle shelters, and installed three electric charging stations to support the increasing number of electric and hybrid vehicles in its fleet. As a result of these efforts, employees avoided 46,757 kg of emissions and saved $138,000 in commuting costs. Newfoundland Power relocates osprey nests from power lines Newfoundland Power Inc. is dedicated to reducing the impact of its operations on local wildlife and their habitat. This can be seen, for example, in its treatment of ospreys that occasionally construct nests on its utility poles. After employees found several nests during transmission line maintenance in 2014, the company worked closely with local wildlife officials to construct dedicated platforms and relocate the nests to these safer locations. TransCanada assesses environmental impact of Energy East pipeline To better understand the potential environmental impact of a project the size and scope of its proposed Energy East pipeline, TransCanada performed fieldwork and analysis in 180 municipalities across six provinces, involving more than 900 specialists including wildlife biologists, vegetation ecologists, atmospheric scientists, archaeologists, and soils scientists. In addition to contributing to its own environmental assessment, the data was also provided to provincial databases so it can be used by other scientists and researchers across Canada. Left to right: Joseph Almeida, Director, Supply Chain Management at Horizon Utilities Corporation, accepts the Metrolinx Smart Commute Employer of the Year 2014 Award from Adam Arnold, Smart Commute Hamilton. Photo courtesy of Horizon Utilities Corporation. Additional CEA Member Initiatives 24HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 25. 14.2%DECREASE in lost-time injury severity rate 7.6%DECREASE in all injury/illness frequency rate 90%of CEA members have a stakeholder engagement policy 100%of CEA members have procedures to engage Aboriginal Communities SOCIAL PERFORMANCE Delivering value by building stronger, healthier communities As responsible corporate citizens, CEA members deliver real value to their people and communities by creating diverse and respectful workplaces, promoting employee well-being, and providing opportunities for skills development and training. Engaging directly and transparently with stakeholders, including Aboriginal Peoples, also helps ensure CEA members have a positive social impact wherever they do business. 25HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 26. HYDRO OTTAWA Where retirement marks the start of something new: Creating opportunities for older workers Over the next decade, the electricity sector will face an unprecedented wave of retirements. Hydro Ottawa, for example, expects more than 40 per cent of its workforce to retire by 2024. To retain the knowledge and experience of its older workers (who often have specialized skills and add value to customer relationships), the utility created a program to engage those employees after retirement. Doing so ensures operational capacity and ongoing value to customers in the face of shifting workforce demographics. The Retiree and Older Worker Engagement Program, also known throughout Hydro Ottawa as the Prime Time Program, was launched in 2014. Embracing older workers’ growing interest in redefining the latter stages of their careers, the program helps individuals make a positive transition into retirement while also identifying ways for retirees to keep contributing to Hydro Ottawa. Among other elements, the Prime Time Program: • equips managers to talk openly and honestly with their teams about retirement plans and shaping the last years of their careers; • gives greater clarity about how to transfer knowledge before employees retire (e.g., by allowing for a transition period of up to six months where departing employees work closely with the people replacing them); and • provides information sessions for future retirees on financial planning, post-retirement benefit coverage and other topics, as well as opportunities for workers to discuss retirement- related concerns and explore their readiness for retirement from a psychological and social transition perspective. The Prime Time Program was recognized with a 2014 Best Employers Award for 50-Plus Canadians from the Workplace Institute. That year, 29 per cent of the utility’s temporary and part-time positions were filled by returning retirees with the skills necessary to immediately perform an operational or supporting role. This includes, for example, having retired power line technicians work as instructors as part of Hydro Ottawa’s partnership with Algonquin College. Jeff Meek is one such instructor. The Hydro Ottawa retiree has returned to teach in Algonquin’s Power line Technician Diploma Program, and says his new role is a rewarding one. “It is extremely fulfilling to share my knowledge of the trade and the electrical industry with the next generation,” he says. “It is extremely fulfilling to share my knowledge of the trade and the electrical industry with the next generation”. Jeff Meek Retired Hydro Ottawa power line technician Hydro Ottawa partners with Algonquin College to deliver the Power line Technician Diploma Program. Photo courtesy of Hydro Ottawa. Picture snapped at a Hydro Ottawa Prime Time Program meeting. Photo courtesy of Hydro Ottawa. 26HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 27. PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY Provide a safe and healthy workplace for employees and contractors, and promote public safety. Employee Safety CEA members have a long-standing commitment to continually improve their safety performance and protect the well- being of employees and contractors. While challenges remain, they strive to create an injury-free workplace through the following strategies: • maintaining health and safety management systems consistent with international and national standards such as Occupational Health and Safety Assessment Series (OHSAS) 18001; CAN/ULC S801: Standard on Electric Utility Workplace Electrical Safety for Generation, Transmission, and Distribution; and CSA Z1000. • building a strong safety culture among all employees, with a focus on improving communications and incident investigation processes to promote lessons learned. • working together through the CEA Occupational Health and Safety Committee to develop new strategies for improving workplace health and safety, including the development of leading indicators to further minimize or prevent safety incidents. These strategies have helped reduce the overall number of safety injuries within CEA member companies. As Figure 8 shows, the all injury/illness frequency rate improved for the fifth consecutive year in 2014, decreasing by 25.7 per cent from 2010. The lost-time injury frequency rate (Figure 8), and the lost-time injury severity rate (Figure 9) also improved, Figure 8  All Injury/Illness and Lost-Time Injury Frequency Rates Figure 9  Lost-Time Injury Severity Rate All Injuries/Illness Lost-Time Injuries Per200,000Hours 0 1 2 3 4 5 20142013201220112010 1.59 1.721.77 1.96 2.14 0.700.730.790.760.68 CalendarDaysLostPer200,000Hours 0 5 10 15 20 25 20142013201220112010 16.73 19.49 15.49 14.9113.84 27 PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY PRINCIPLE 6: ABORIGINAL ENGAGEMENT HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 28. with the latter improving by 14.2 per cent relative to 2013. Many of the injuries that do occur are related to over-exertion (resulting in musculoskeletal disorders), falls from elevation, and being struck by objects. Prevention programs to address these risk areas are being put in place. While performance in these areas is moving in the right direction, unfortunately, there were two tragic employee fatalities in 2014. One employee came into electrical contact while working on a downed power line and another was involved in a vehicle collision. The affected companies are working to further strengthen their safety procedures in order to prevent these tragic incidents. Public Safety CEA members are committed to reducing the risks of public contact with power lines and other electrical equipment. In 2014, this included developing power line safety training programs for first responders, delivering electrical safety seminars to local businesses, hosting workplace safety sessions with local high school students, and promoting emergency preparedness in communities. However, there were six public fatalities in 2014. These were related to workers from other sectors (e.g. construction) coming into electrical contact during projects as well as individuals attempting to steal copper from electrical facilities. CEA member companies are committed to preventing public fatalities and have taken steps to educate and raise awareness of electrical safety. Capital Power Corporation’s Island Generation Facility is located in Campbell River, British Columbia. The 275 megawatt combined cycle natural-gas fired facility is the single-largest power generation facility located on Vancouver Island. Photo courtesy of Capital Power Corporation. CEA tracks and monitors the safety record of its member utilities and recognizes their achievements through the annual CEA Occupational Health and Safety Awards. CEA also recognizes any employee of a CEA member utility who was involved in a lifesaving attempt or acted to prevent further harm to someone who was injured or in need of immediate help with the Lifesaver Awards. In this picture, Erik Tippett (middle), of ENMAX, is presented his CEA Lifesaver Award by Members of Parliament, the Honourable Deepak Obhrai (left), and the Honourable Jason Kenney (right). Mr. Tippett was awarded for saving an elderly woman who had fallen, was in a state of shock, and was stuck outside in freezing weather. 28 PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY PRINCIPLE 6: ABORIGINAL ENGAGEMENT HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 29. PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE Support fair recruitment, training, and talent retention processes that meet the needs of company operations while ensuring ongoing employee satisfaction, well-being, and diversity. Workplace Diversity CEA Corporate Utility Members are committed to workplace diversity and creating an environment where all employees are treated with respect and without discrimination, harassment, and violence. In 2014, 57 per cent of member companies reported having diversity programs, and 97 per cent reported a commitment to non- discriminatory employee practices. However, member companies do recognize that they still have a long way to go in terms of improving the representation of women in management and governance bodies, and improving the tracking and measuring of visible minorities in the workplace. Employee Health and Well-Being Through the implementation of a wide range of health promotion, disease prevention, and crisis intervention programs—in 2014, these included ‘active living’ campaigns, employee alcohol and drug programs, confidential counselling and support for employees and their families, and mental health awareness initiatives—CEA members continue to help their people achieve healthier, more sustainable lifestyles, ultimately reducing the financial burden associated with healthcare costs and lost productivity. Training and Apprenticeships As the electricity sector’s business model continues to evolve in response to new technologies and customer requirements, employee training and development remain critically important for both individual and company success. To build up the skills of their current teams as well as those of the next generation of electricity workers, in 2014 CEA members continued to rely on apprenticeship and youth mentorship programs, personal development plans, professional accreditation opportunities, scholarships and tuition subsidies, and partnerships with post-secondary institutions, with a particular focus on attracting women and Aboriginal Peoples to the trades. Board of Directors First-Level ManagementSenior Executives Men Women 75% 25% Men Women 78% 22% Men Women 75% 25% 29 PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY PRINCIPLE 6: ABORIGINAL ENGAGEMENT HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 30. PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY Communicate and engage with stakeholders and partners in an open and transparent manner for all proposed and established operations and activities. Engaging with stakeholders on issues that directly affect them in an open and transparent manner is of paramount importance to CEA Corporate Utility Members. These utilities are now engaging customers, communities and stakeholders on a variety of issues ranging from new infrastructure projects, energy conservation, environmental impact mitigation, community development, and public electrical safety. For instance, recognizing the importance of consulting with their communities and sharing information about the potential environmental, social, and economic impacts of new infrastructure developments, 90 per cent of CEA members now have a formal policy in place for stakeholder engagement, up from 77 per cent in 2013. Whether through public meetings, classroom presentations, facility tours, social media, or traditional marketing (including corporate annual reports), CEA members are constantly improving the way they communicate with customers, landowners, suppliers, community leaders, non-governmental organizations, and other key stakeholders. Furthermore, 67 per cent of CEA members reported on sustainability performance, either through an annual report or online, in 2014, up from 57 per cent in 2013 (Table 3). TransCanada is one member company that continues to demonstrate a commitment to strengthening Community, Aboriginal and Native American Relations. Photo courtesy of TransCanada. Table 3  Stakeholder Engagement 2013 2014 The company has a formal stakeholder engagement policy, including a process for identifying stakeholder concerns and opportunities 77% 90% The company reports on sustainability performance, either through an annual report or online 57% 67% 30 PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY PRINCIPLE 6: ABORIGINAL ENGAGEMENT HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 31. PRINCIPLE 6: ABORIGINAL ENGAGEMENT Build mutually beneficial relationships with Aboriginal Peoples and communities based on trust and respect. CEA members are working to build positive relationships with Aboriginal communities. While the degree to which this collaboration occurs differs from company to company, these relationships often result in mutual benefits and innovative solutions, including the creation of joint business ventures that ensure Aboriginal communities and businesses directly benefit from infrastructure development projects. Utilities also continue to invest in training and apprenticeship opportunities for Aboriginal students, sustainable procurement strategies, and the use of traditional knowledge in project planning and construction. These partnerships will continue to grow as CEA members further invest in infrastructure renewal and modernization across the country. Of the 83 per cent of CEA members that identified Aboriginal relations as a relevant issue for their operations in 2014, all of them have procedures to engage Aboriginal communities during project planning and development, and two-thirds have policies ensuring Aboriginal employees are given equal access to training and employment opportunities (Table 4). Based on the materiality assessment that was commissioned in 2014, CEA is currently working with members to develop new performance indicators in this area to better communicate member efforts on Aboriginal engagement. 9 CEA uses the term Aboriginal to refer to First Nations, Métis, Inuit, Cree, and other indigenous peoples within Canada. 10 Figures are based on 83 per cent and 77 per cent of companies that indicated Aboriginal engagement to be a relevant issue for company activities in 2014 and 2013, respectively. Table 4  Aboriginal Engagement9 2013 2014 Aboriginal relations a relevant issue for the company 77% 83% The company has procedures for engaging with Aboriginal communities during project planning and development10 100% 100% The company has procedures to ensure training and employment opportunities are provided to Aboriginal employees10 63% 67% 31 PRINCIPLE 3: EMPLOYEE, CONTRACTOR, AND PUBLIC HEALTH AND SAFETY PRINCIPLE 4: HUMAN RESOURCES AND WORKPLACE PRINCIPLE 5: STAKEHOLDER ENGAGEMENT AND TRANSPARENCY PRINCIPLE 6: ABORIGINAL ENGAGEMENT HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 32. NEW INITIATIVES Siksika Nation partners with ATCO Electric on youth mentorship program In 2014, ATCO Electric worked with Siksika First Nation to develop and implement a year-long pilot project to provide Aboriginal youth with real-life work experience. ATCO Electric trained Siksika Nation’s chosen candidates to safely erect structures, operate and repair equipment, and perform other tasks critical to building and maintaining transmission infrastructure. After the pilot program was completed, the company hired two of the participants on a temporary, full-time basis. Hydro One introduces Women in Engineering scholarship Hydro One Inc. has a long history of supporting young women wishing to pursue studies in Science, Technology, Engineering, and Mathematics (STEM). In 2014, this support grew even further with the launch of the new Women in Engineering scholarship, which is open to all female engineering students attending a university in Ontario. A total of 13 students received $5,000 scholarships last year, which also includes a co-op work term. Building a stronger workplace safety culture at EPCOR Utilities In 2014, EPCOR Utilities Inc. refocused its efforts to ensure safety is always top of mind. To change unsafe behaviours and promote a culture of safety, it created a recognition program awarding points (which can be redeemed online for gifts) to employees demonstrating safe work practices. To further engage employees, EPCOR now encourages frontline workers to participate in incident investigations. It also hosted more than 300 employees and contractors for a workshop on working safely with underground infrastructure. EPCOR demonstrates safety techniques at its Underground Hazard Awareness Day. Photo courtesy of EPCOR Utilities Inc. Labourer Daniel Spring Chief was one of two participants in ATCO Electric’s pilot program who has now joined ATCO Electric for the long term. Photo courtesy of ATCO Electric. Improving worker safety at Toronto Hydro with infrared cameras In 2014, Toronto Hydro Corporation sought to improve the way its workers assess hazards and risks before entering confined spaces (for example, by determining the likelihood a spliced power line will produce a dangerous arc flash). After reviewing best practices across North America, it opted to incorporate forward-looking infrared cameras into all confined entry space tests, working with a forensic laboratory to calibrate the infrared images and train its crews on how to use the new equipment. Employee uses the infrared detector. Photo courtesy of Toronto Hydro Corporation. 32HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 33. REAL OUTCOMES Using drones to make inspections safer for BC Hydro engineers Inspecting the canal that diverts water to the Kootenay Canal Generating Station used to involve lowering an engineer down with ropes or flying over it with a helicopter. That changed in September 2014, when BC Hydro and Power Authority began using drones to take detailed video and photos of the canal’s entire length. In addition to eliminating safety risks to execute this hazardous work, drones also make it easier and more affordable to inspect other assets such as dams and power poles. Strengthening the Northern workforce through Northwest Territories Power Corporation apprenticeships Northern Canada faces a shortage of local skilled workers, creating significant competition for trades and technical resources as well as a smaller pool of local candidates for employers such as the Northwest Territories Power Corporation (NTPC). To promote skills development and help create a sustainable Northern workforce for the long term, NTPC has invested $1 million in a new apprenticeship program and provides valuable work experience opportunities by hiring summer students in various departments throughout the territory. Oakville Enterprises boosts public awareness of electricity safety risks Oakville Enterprises Corporation’s safety program focuses on both employee and public safety. In 2014, it co-presented a power line safety seminar for local businesses and trades, highlighting hazards, regulations, and guidelines to help prevent injuries when working near electrical equipment; and worked with the non-profit MySafeWork to co-host three young worker safety awareness sessions at area high schools. For its own employees, Oakville Enterprises often brings in guest speakers as part of its Stayin’ Alive program to reinforce the importance of injury prevention. Capital Power facilitates safety rescue training in Campbell River Capital Power Corporation has formed a unique partnership with the Campbell River Fire Department to improve each other’s safety rescue skills. In the massive turbine hall at the Island Generation facility, firefighting crews work with Capital Power’s Emergency Response Team to practice rescue manoeuvres that would be enacted in an emergency situation. In turn, the firefighters can also work on their tie-offs, harnessing, and other technical skills that they can apply to other rescue scenarios throughout the community. Campbell River Fire Department crews tie-off to the structural members above the catwalk handrail as they increase their familiarity with their Fall Protection gear and High Angle Rescue techniques. Photo courtesy of Capital Power Corporation. 33HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 34. STAKEHOLDER AND COMMUNITY ENGAGEMENT AltaLink sponsors initiative to repatriate Blackfoot regalia For more than 110 years, the regalia of Chief Crowfoot of the Blackfoot Nation, including his deerskin jacket, leggings, ceremonial knife, and bow and arrow, has been on display in the Royal Albert Memorial Museum in Exeter, England. In 2014, AltaLink donated $25,000 to an initiative led by Siksika First Nation to bring these historic and culturally significant treasures back home to Alberta, where they will eventually be displayed at Blackfoot Crossing Historical Park. ATCO Power works to promote watershed management through collaboration and transparency ATCO Power’s approach to multi-stakeholder engagement is based on long-term collaboration and transparency. It has participated in the Stakeholder Advisory Group of the Battle River Watershed Alliance since its inception, set up as an inclusive, collaborative and consensus-based community partnership to strike a balance between a healthy aquatic ecosystem, a vibrant economy, and sustainable communities. Based upon the recommendations of this group, an approved Water Management Plan for the Battle River Basin was released in 2014 by the Alberta government. NB Power seeks unprecedented public input on future of Mactaquac Dam New Brunswick Power Corporation (NB Power) is ensuring the community has a say in the future of the Mactaquac Dam. At a public meeting in November 2014, NB Power presented three options for the dam, which was followed by a lively discussion with area residents on the environmental and social implications of each. The final decision will be strongly informed by that input along with feedback gathered from a broader engagement program rolled out later this year. Giving customers a voice in Nova Scotia Power’s long-term plan A long-term integrated resource plan was developed by Nova Scotia Power in 2014 to enable the company to meet future energy needs in a cost-effective and reliable manner. More than 20 community engagement sessions were held across the province to gather the input of customers on four key topics: cost, innovation, energy sources, and reliability. Comments were also solicited through the TomorrowsPower.ca customer-focused website. SaskPower raises the bar for on-reserve recycling initiatives SaskPower has partnered with Black Lake First Nation to create Northern Saskatchewan’s first-ever appliance recycling program. This year, the program collected and transported 26 tonnes of appliances and hazardous materials (e.g., halocarbons, petrochemicals) to Regina to be recycled. Every effort was made to maximize the benefits to the community, with local labour and suppliers engaged whenever possible. The success of the Black Lake Hazardous Waste Removal Project has since sparked interest from other remote Aboriginal communities. Construction of Muskrat Falls Project’s Vac Transmission line. Photo courtesy of Nalcor Energy. Great turn out at a Nova Scotia Power’s community engagement sessions. Photo courtesy of Nova Scotia Power. Additional CEA Member Initiatives 34HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 35. $2.988BILLION in distribution $6.034BILLION in transmission $4.104BILLION in generation $27.517MILLION in 2014 charitable donations ECONOMIC PERFORMANCE Delivering value by powering Canada’s economy Canada’s economy depends on a strong electricity sector. CEA members are delivering real economic value to Canadian communities through a variety of means, including generating the energy that powers businesses and making significant charitable contributions. They also continue to invest in energy conservation programs and new infrastructure, ensuring the supply of power remains dependable and cost-effective in the years to come. In 2014, CEA members invested approximately 13 billion in infrastructure to meet the needs of current and future generations. 35HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 36. BROOKFIELD RENEWABLE ENERGY GROUP Diversifying the local economy with an innovative partnership Northeastern Vancouver Island is known for its traditional resource industries such as forestry, mining, and fishing. When those started to decline, Brookfield Renewable Energy Group saw an opportunity to deliver real value to the local economy through the construction of a 45 MW hydroelectric facility on the Kokish River. The Kokish facility is located on the traditional lands of the ’Namgis First Nation. Brookfield worked with the ’Namgis to form Kwagis Power LP, a joint partnership that allowed both parties to be equally involved in all aspects of the project, from planning and permitting to construction and operations. Now that the facility is fully commissioned, a portion of the revenue generated by its operations will be directed into a ’Namgis Community Benefit Fund. “We believe in the power of partnerships built on shared values. In Brookfield, we found a partner who supports our vision of environmental and social responsibility,” says Debra Hanuse, Chief of the ’Namgis First Nation. “This partnership and the resulting Kokish River project allows us to share in the benefits derived from our ancestral lands.” The project provided substantial economic benefits through job creation and spending on local goods and services. Approximately 250 people were employed during the two-year construction period (including 12 ’Namgis members), with local subcontractors hired to work on-site. Of the total capital cost of approximately $200 million, about $30 million was spent locally on heavy industry, food, and accommodations. Completed in April 2014, the Kokish facility now generates enough clean, renewable energy to power 13,000 households each year. Through a 40-year electricity purchase agreement with BC Hydro and Power Authority, it will provide sustainable, long-term economic activity for the region for years to come. Brookfield and the ’Namgis are truly proud of the Kokish River facility. The project not only demonstrated the seamless integration of sustainability concerns but also serves as a great model of how the public sector, private sector, and First Nation communities can work together to improve Canada’s energy infrastructure. “In Brookfield Renewable Energy Group we found a partner who supports our vision of environmental and social responsibility.” Debra Hanuse Chief of the ’Namgis First Nation Brookfield Renewable Energy Group and the ’Namgis First Nation at the ribbon-cutting ceremony for the opening of the Kokish River hydroelectric facility. Photo courtesy of Brookfield Renewable Energy Group. 36HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 37. PRINCIPLE 7: ECONOMIC VALUE AND COMMUNITY INVESTMENTS Provide economic benefits to shareholders, communities, and regions in which the industry operates. The electricity sector is a major contributor to the economic growth of Canadian communities. From facilitating uninterrupted operation of commercial and public sector services to everyday consumer electronics, CEA member utilities provide an essential service to the communities in which they operate. They also add value to their communities in other ways, from sourcing practices that promote and support local businesses to investor and government dividends, all of which inject money back into the local economy. In 2014, CEA members contributed $27.517 million in charitable donations (Figure 10) and supported numerous organizations and initiatives including national charities such as the United Way and the Heart and Stroke Foundation, local food banks, community facilities, and health and safety campaigns. Figure 10  Annual Charitable Donations MillionsofDollars $0 $5 $10 $15 $20 $25 $30 $35 $40 20142013201220112010 $26.027 $24.529 $35.768 $33.696 $27.517 Workers pause on the Lower Mattagami Hydroelectric Project – Kipling Generating Station. Photo courtesy of Ontario Power Generation Inc. 37 PRINCIPLE 7: ECONOMIC VALUE AND COMMUNITY INVESTMENTS PRINCIPLE 8: ELECTRICITY DEMAND, EFFICIENCY, AND CONSERVATION PRINCIPLE 9: INFRASTRUCTURE RENEWAL AND MODERNIZATION PRINCIPLE 10: BUSINESS MODEL PRESSURES HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 38. PRINCIPLE 8: ELECTRICITY DEMAND, EFFICIENCY, AND CONSERVATION Produce, deliver, and use electricity in an efficient manner while promoting energy conservation programs. CEA Corporate Utility Members are committed to creating a culture of energy efficiency and conservation in the communities in which they operate. Some of the initiatives conducted over the past year include appliance removal and exchange programs, coaching and auditing services to help small businesses better manage their energy consumption, and rebates and incentives to encourage homeowners and businesses to install energy efficient technologies. By reducing the amount of energy consumed, initiatives like these are crucial to moderating the investment required for new infrastructure, reducing customer electricity bills, and benefiting the environment. The ongoing implementation of smart meters and smart grid technologies will further accelerate the development of innovative new energy conservation programs, including time-of-use pricing and hour-by-hour consumption monitoring. In 2014, CEA Corporate Utility Members with energy conservation programs reported 1,087 GWh of energy savings, a reduction of 35.6 per cent form 2013. While external conservation efforts decreased, CEA members realized an additional 78 GWh in efficiency savings from their own generation stations and equipment, an increase of 8.6 per cent over 2013. Bighorn sheep visit the reclamation area at the Arrow Lakes Generating Station. Columbia Power Corporation has completed extensive rehabilitation work at the reclamation site to make the area attractive to birds and wildlife. Photo courtesy of Columbia Power Corporation. 38 PRINCIPLE 7: ECONOMIC VALUE AND COMMUNITY INVESTMENTS PRINCIPLE 8: ELECTRICITY DEMAND, EFFICIENCY, AND CONSERVATION PRINCIPLE 9: INFRASTRUCTURE RENEWAL AND MODERNIZATION PRINCIPLE 10: BUSINESS MODEL PRESSURES HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 39. PRINCIPLE 9: INFRASTRUCTURE RENEWAL AND MODERNIZATION Invest in the renewal and modernization of generation, transmission, and distribution systems to meet current and future energy needs in a safe, reliable, and cost-effective manner. Many of Canada’s electricity assets are reaching the end of their lifecycle, which can range from 30 years for a utility pole to as much as a century for a hydroelectric power plant. Much of the system built a generation ago now needs to be replaced or refurbished. To ensure a reliable, cost-effective supply of electricity, utilities must maintain their existing assets while also investing in and developing new infrastructure. As Figure 11 shows, since 2010, CEA members have invested $58.912 billion in generation, transmission, and distribution equipment; in 2014, they invested $13.127 billion in new and refurbished infrastructure. While this is a decrease of approximately $1 billion compared to 2013, it is a reflection of the cyclical nature of new investments and construction. From year to year, investment trends fluctuate as some projects are completed and others begin preliminary planning and assessment. For example, in December 2014, the BC Government approved BC Hydro and Power Authority’s proposed $8.8 billion Site C Clean Energy Project on the Peace River that will provide 1,100 MW of capacity and produce about 5,100 GWh of electricity each year when completed in 2024. As CEA Corporate Utility Members invest in new infrastructure, they are considering a range of conventional and non-conventional technologies including large hydro projects similar to Site C, small-scale run-of-river hydro, nuclear, gas, coal with carbon capture and storage, and renewable technologies, such as wind, solar and biomass. In 2014, installed wind capacity for instance in Canada accounted for about 9,700 MW, with Ontario leading in terms of that existing capacity, followed by Quebec and Alberta.11 CEA members also either generated or purchased nearly 12,310 GWh of electricity from wind and other renewable sources, including solar, biomass, tidal and biofuel. Although technologies such as wind are becoming cost-competitive, there are still barriers to market integration, including public support, intermittency, and transmission inter-connections. Figure 11  Investments in New and Refurbished Infrastructure BillionsofDollars $0 $1 $2 $3 $4 $5 $6 $7 20142013201220112010 $4.050 $4.455 $5.246 $4.104 $4.482 $2.618 $2.623 $2.585 $3.332 $3.295 $2.988 $3.105 $4.290 $5.704 $6.034 Generation Transmission Distribution 11 Source: Canadian Wind Energy Association, www.canwea.ca. . 12,310 GWhof renewables generated or purchased by CEA members 39 PRINCIPLE 7: ECONOMIC VALUE AND COMMUNITY INVESTMENTS PRINCIPLE 8: ELECTRICITY DEMAND, EFFICIENCY, AND CONSERVATION PRINCIPLE 9: INFRASTRUCTURE RENEWAL AND MODERNIZATION PRINCIPLE 10: BUSINESS MODEL PRESSURES HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 40. PRINCIPLE 10: BUSINESS MODEL PRESSURES Engage and work collaboratively with utility regulators, policy makers, stakeholders, technology providers, and supply chain partners to meet evolving customer expectations and business requirements. Canadian Utility Appreciation Day During a keynote speech in Toronto, New Jersey Governor Chris Christie signed a proclamation declaring December 5, 2014, as Canadian Utility Appreciation Day. Three CEA members (Hydro One Inc., Hydro Ottawa, and Toronto Hydro Corporation) were among the electric and natural gas utilities recognized for the assistance and expertise they provided during the emergency response and recovery efforts following Hurricane Sandy in October 2012. CEA was also recognized by Governor Christie for the participation of former President and Chief Executive Officer, Jim R. Burpee in daily teleconferences with key U.S. utility leaders and government officials during the power-restoration period. System Reliability More than ever, Canadians depend on electricity to power their daily lives. As severe weather events become more common, utilities are under increasing pressure to prevent and respond to power outages. In 2014, both the frequency and duration of service interruptions improved (both including and excluding significant weather events) compared to the previous year (Figures 12 and 13). Specifically, the frequency of outages (excluding significant events) declined by 8.0 per cent while the duration of the outages (excluding significant events) declined by 13.6 per cent. Tree contacts contributed to the majority of these power outages. Supply Chain Management To meet their business requirements in a more cost-effective way, CEA members are constantly working to identify supply chain efficiencies and reduce their purchasing costs. Manitoba Hydro, for example, launched the first implementation phase of its multi-year Supply Chain Performance Enhancement Program, which focuses on ways to reduce costs and increase operational capacity through strategic sourcing, inventory management optimization, and reducing the total cost ownership of its fleet. Other CEA members, such as TransCanada, are improving their procurement policies, processes, systems, and tools to make it easier for local labour and suppliers to contribute to infrastructure renewal development projects. Figure 12  System Average Interruption Duration Index (SAIDI) Figure 13  System Average Interruption Frequency Index (SAIFI) Duration(hours) 0 2 4 6 8 10 20142013201220112010 6.4 5.1 9.5 5.9 4.7 4.4 6.2 5.1 5.2 4.3 CEA Canadian Composite CEA Canadian Composite (Excluding Significant Events) Interruptions(percustomer) 0 1 2 3 20142013201220112010 2.4 2.3 2.7 2.5 2.5 2.5 2.6 2.52.1 2.1 CEA Canadian Composite CEA Canadian Composite (Excluding Significant Events) 40 PRINCIPLE 7: ECONOMIC VALUE AND COMMUNITY INVESTMENTS PRINCIPLE 8: ELECTRICITY DEMAND, EFFICIENCY, AND CONSERVATION PRINCIPLE 9: INFRASTRUCTURE RENEWAL AND MODERNIZATION PRINCIPLE 10: BUSINESS MODEL PRESSURES HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 41. NEW INITIATIVES ATCO Electric designs the next-generation substation ATCO Electric has established an in-house think tank called Project Innovate to develop more cost-effective, sustainable energy infrastructure. One of its first successes is the ‘Next Generation Substation’ design, which reduces construction costs for a 144-25 kV substation by 46 per cent and the time to build one by three months. The new design also decreases substation size, reducing environmental footprint by as much as 55 per cent while also cutting material, labour, and equipment costs during construction and commissioning. In 2014, ATCO Electric’s Transmission Division designed a Next Generation Substation. Photos courtesy of ATCO Electric. BC Hydro powers the Northern economy with new transmission line BC Hydro and Power Authority’s 344-km Northwest Transmission Line came into service in July 2014, pushing the transmission grid further north through some of the province’s most remote terrain. The line will deliver affordable, reliable power to new mining and clean energy developments, which will greatly stimulate the region’s economy. In December, the line was extended a further 90 km to the community of Iskut, which will help its residents reduce their reliance on local diesel generation. Ontario Power Generation completes Northern Ontario’s biggest hydro project in 50 years Ontario Power Generation Inc. (OPG) in partnership with the Moose Cree First Nation completed the Lower Mattagami River Hydroelectric Project in January 2015. The largest hydro infrastructure investment in Northern Ontario in the past half- century, this $2.6 billion project added 438 MW of renewable hydro capacity across four generating stations. Over the course of the project, $1 billion in contracts were awarded to Ontario businesses, including more than $350 million spent in the North. The project also provided over 400 person years of employment for First Nations and Métis people and 25 First Nation businesses provided services. New biogas facility adds generation to Saskatoon Light Power’s mix Saskatoon Light Power, a municipal distribution utility, has built its first new generation facility in more than 100 years. Completed in March 2014, the Landfill Gas Collection System captures methane-rich gas from Saskatoon’s landfill and uses it to fuel two generators that produce 13 GWh each year, which is enough energy to power 1,300 homes. The facility will also become a new revenue source for the City once its initial investment is repaid. Saskatoon Light Power’s landfill gas collection facility. Photo courtesy of Saskatoon Light Power. 41HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 42. REAL OUTCOMES Decreasing construction times and costs at AltaLink By using screwpiles rather than traditional concrete caissons in the construction of its power line towers, AltaLink is realizing substantial project cost and time savings. Literally screwing the foundation into the ground means less soil needs to be displaced, which minimizes tower footprint, uses fewer raw materials, and requires smaller crews and less heavy equipment. It also provides greater certainty in project delivery: three tower bases can be prepared each day compared to one per month when using caissons. Improving technician collaboration through the FortisAlberta Control Centre The new FortisAlberta Inc. Control Centre, completed in May 2014, allows power line technicians across the province to work collaboratively with system operators to enhance the quality of service provided to customers. In addition to constructing a state-of-the-art facility, this mega-project involved the implementation of outage management, data acquisition, and other technologies, all of which will be built upon in the years to come to meet evolving service demands. Hydro Ottawa cuts municipal energy consumption with LED streetlights In 2014, Hydro Ottawa demonstrated its commitment to energy efficiency by completing an ambitious project to convert 740 high-pressure sodium streetlights to light-emitting diode (LED) streetlights along one of the City of Ottawa’s major traffic arteries. The new lighting system includes adaptive controls that allow streetlights to be dimmed to exact levels when necessary, which will help the City decrease its energy consumption by 650,000 kWh per year while also significantly reducing maintenance costs. Newfoundland and Labrador Hydro promotes energy efficiency in isolated communities Newfoundland and Labrador Hydro (NL Hydro), a Nalcor Energy Company, uses the Isolated Systems Community Energy Efficiency Program to promote energy efficiency to residential and commercial customers in communities served by diesel generation. In 2014 alone, it installed over 23,000 free energy saving products for 1,081 customers, helping them realize 1,357 MWh in annual energy savings. The company also provides free facility audits, technical support, and financial assistance to help businesses identify and implement efficiency retrofits and other capital upgrades. By the end of 2014 the program has been offered in 42 remote communities, installed 47,312 energy efficient products in 269 businesses and 3,582 homes and saved 4.04 GWh of electricity. View of the Lower Mattagami Hydroelectric Project – Kipling Generating Station. Photo courtesy of Ontario Power Generation Inc. Newfoundland and Labrador Hydro employee, Lori O’Brien is a community representative who helps educate people on energy use and energy efficient products. Photo courtesy of Newfoundland and Labrador Hydro, a Nalcor Company. 42HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 43. ENMAX brightening the lives of vulnerable Albertans In 2014, ENMAX Corporation launched the Lighting Up Alberta campaign to raise funds for Habitat for Humanity and Homeless Foundations of Edmonton and Calgary. In addition to the campaign, ENMAX donated $45,000 to the Calgary Homeless Foundation to light up 22 of their buildings with energy efficient lighting, and $100,000 to Habitat for Humanity to install energy efficient lighting, programmable thermostats and other energy management tools at their Neufeld Landing Development in Edmonton. Building stronger, safer communities with the Hydro One PowerPlay program Hydro One Inc. is dedicated to enabling healthy, active, and safe lifestyles for children and youth. Through its PowerPlay program, it supports the development of recreational facilities and equipment in the communities in which it operates. In 2014, Hydro One funded 48 community projects across Ontario, distributing $625,000 to help build 18 playgrounds, four skateboard parks, heating and lighting for six community facilities, and many other projects. Maritime Electric reduces peak load during the holidays Through its Holiday Light Exchange Program, Maritime Electric Company, Limited, offered $5 in cash to customers who turned in an old (but still working) set of incandescent holiday light strings. More than 4,300 sets of lights were exchanged in 2014; by decreasing the number of inefficient bulbs in use, the program saved more than 76,000 kWh and helped reduce overall peak load during this past holiday season. STAKEHOLDER AND COMMUNITY ENGAGEMENT Children pose for a picture of one of the playground projects supported through Hydro One Inc.’s PowerPlay program. Photo courtesy of Hydro One Inc. 43HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 44. Northwest Territories Power Corporation gives customers the tools to make smarter energy choices To help its customers save money on their bills, the Northwest Territories Power Corporation launched a new education campaign called PowerWise. On the PowerWise website, customers can find energy saving tips for household appliances as well as an energy calculator to determine their total energy usage per room. The website is part of a larger campaign that also includes posters and press releases to encourage people to manage their power usage in smarter ways. SaskPower promotes community electricity literacy and support for infrastructure investment through an innovative Power to Grow outreach campaign SaskPower is working to ensure that the electricity system that creates and delivers power to communities is ready to support growth and change in Saskatchewan—today and into the future. The Power to Grow public outreach tour travels to communities throughout Saskatchewan. It features a futuristic inflatable tent that provides a 360-degree experience, an electric vehicle fully wrapped in graphics that illustrates Saskatchewan’s power sources, interactive displays that show the aging system and how difficult it is to generate power, and an ‘ideal home’ which illustrates the growing demand for power and energy saving tips. A focus on using local suppliers at TransCanada In 2014, TransCanada started developing a new Supplier Diversity and Local Participation Program to help the communities adjacent to or affected by its business realize greater economic benefits. In addition to providing an integrated approach for creating opportunities for qualified local suppliers to participate on TransCanada projects, this initiative will also support targeted community investments in education and training programs to help develop the skills, knowledge, and capacity of local businesses and contractors. TransCanada developed a Supplier Diversity and Local Participation Program to help its communities realize greater economic benefits. Photo courtesy of TransCanada. Additional CEA Member Initiatives SaskPower employees poised to answer customer questions at a Power to Grow event. Photo courtesy of SaskPower. 44HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 45. KEY ACHIEVEMENTS Sustainable Electricity Company™ designation Two more companies received the Sustainable Electricity Company designation over the past year: Toronto Hydro Corporation became the third utility to do so in June 2014, followed by Hydro One Inc. in January 2015. This designation is given to utilities that meet the additional criteria developed by CEA to demonstrate their commitment to sustainability. “Our commitment to sustainability is really a commitment to our community, employees, and stakeholders. As an overarching driver, sustainability plays a key role in our success.” Anthony Haines, President and Chief Executive Officer, Toronto Hydro Corporation “This designation recognizes the outstanding job our employees do in delivering electricity in a socially responsible and sustainable manner, and in meeting the high expectations of the people of Ontario.” Carmine Marcello, President and Chief Executive Officer, Hydro One Inc.     Left to right: Scott Martin, Senior Vice President, Business and Administrative Services at Ontario Power Generation Inc.; Nicole Wershler, Manager of Strategy and Planning for Energy Operations at TransCanada; and Felipe Pinel, Chief Executive Officer, North America at Brookfield Renewable Energy Group. 2015 Sustainable Electricity Award winners Environmental Commitment Award – ONTARIO POWER GENERATION INC. In recognition of the Biomass Conversion Initiative Social Responsibility Award – BROOKFIELD RENEWABLE ENERGY GROUP In recognition of the Kokish Hydroelectric Facility Partnership with the ’Namgis First Nations Certificate of Recognition for Sustainability Leadership – TRANSCANADA In recognition of social and economic initiatives related to the training of Energy Operations employees, and the promotion of local procurement and supplier diversity 2015 Sustainable Electricity Award Winners 45HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 46. July 16, 2015 Re: Sustainable Electricity Independent Verification Assurance Statement As part of the Sustainable Electricity program, all CEA Corporate Utility Members are verified once every four-to-five years on sustainability performance and reporting by an independent verifier in accordance with the CEA independent verification protocols. This assurance letter is to attest that Duerden Keane Environmental Inc. (DK) successfully completed on-site independent verification of the following companies in 2014 and 2015 calendar years: • Brookfield Renewable Energy Group, Hydro Ottawa, Maritime Electric Company, Limited, Nalcor Energy, New Brunswick Power Corporation, Newfoundland Power Inc., Nova Scotia Power Inc., Oakville Enterprises Corporation, Ontario Power Generation Inc., and Saint John Energy. SCOPE OF THE VERIFICATION: • The degree of adherence to the CEA Sustainable Development—Corporate Responsibility Policy • Consistency and accuracy of information provided to CEA on key performance indicators • Conformance with CEA’s requirement for an ISO 14001:2004 consistent Environmental Management System (EMS) VERIFIER CONCLUSIONS: • A good understanding and commitment to the principles of the Sustainable Electricity program by senior company executives and staff • High level of consistency between information provided to CEA and information published in other reports • Some minor discrepancies in annual performance reporting and need for corrective action • Significant conformity with CEA’s EMS requirement 26 Forest Road  B3A 2M3 Tel.: 902 435 7562 Fax: 902 484 7639 Email: dandk@duerdenandkeane.com www.duerdenandkeane.com For Duerden Keane Environmental Inc., Colin Duerden B.Sc., Ph.D., EP-EMS(LA), EP-CEA Sue Keane B.Sc., M.Eng., EP-EMS(LA), EP-CEA VERIFICATION STATEMENT 46HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 47. GLOSSARY OF KEY TERMS All Injury Frequency (AIF) Rate is based on the total number of Fatalities and Lost-Time Injuries, plus the total number of Medical Treatment Injuries which occurred in the calendar year. All Injury Frequency Rate = [(No. of Fatalities + No. of Lost-Time Injuries + No. of Medical Treatment Injuries) x 200,000] / Exposure Hours. Biodiversity includes the diversity of ecosystems, of the species within those ecosystems, and the genetic diversity that exists within species. It is a holistic concept referring to the entire ecosphere, including all of its ecosystems and the evolutionary processes that allow it to function and evolve. Capital expenditure refers to the cost of construction for new generation, transmission, and distribution facilities (units, plants, lines, substations, etc.); the cost of refurbished generation, transmission, and distribution facilities (e.g. betterments and replacements of existing generating units); and expenditures for the purchase or acquisition of pre-existing facilities. Carbon dioxide equivalent (CO2eq) is a universal measure of global warming potential for GHGs. Carbon dioxide is used as a reference gas against which the other GHGs are measured since it has the smallest global warming potential. The global warming impact of all GHGs is measured in terms of equivalency to the impact of CO2 via global warming potentials. Climate Change Adaptation refers to an adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Lost-Time Injury Frequency Rate is based on the total number of Lost-Time Injuries or illnesses, which occurred in the calendar year. Lost- Time Injury Frequency Rate = (Number of Lost-Time Injuries x 200,000) / Exposure Hours. Lost-Time Injury Severity Rate is calculated using the following formula: Lost Time Injury Severity Rate = (Number of Lost Days x 200,000) / Exposure Hours. Non-compliance fine refers to a monetary penalty for a major or a minor infraction of existing federal/ provincial/municipal laws and regulations. Priority spills refers to petroleum spill that is over 500 litres, contains over one gram of polychlorinated biphenyls (PCBs), and any volume of petroleum- based or PCB-contaminated substance that enters a water body. SF6 (Sulphur hexafluoride) is a colourless, odourless, non-toxic non-flammable gas with very low reaction chemistry. It is used by the electricity industry as a gaseous insulator for high-voltage circuit breakers, switchgear, and other electrical equipment, often replacing harmful PCBs. System Average Interruption Duration Index (SAIDI) is defined as the system average interruption duration for customers served per year. SAIDI = Total Customer-Hours of Interruptions / Total Customers Served. System Average Interruption Frequency Index (SAIFI) is defined as the average number of interruptions per customer served per year. SAIFI = Total Customer-Interruptions / Total Customers Served. Workplace diversity refers to the variety of differences between people in an organization, including race, gender, ethnic group, age, tenure, organizational function, education, and background. 47HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE
  • 48. FOR SUSTAINABLE ELECTRICITYTM PROGRAM INQUIRIES Channa Perera, Director, Sustainable Development Tel.: 613 230 9527 Email: perera@electricity.ca Sandra Schwartz, Vice President, Public Affairs Tel.: 613 230 9876 Email: schwartz@electricity.ca www.electricity.ca www.SustainableElectricity.ca www.SustainableElectricityCompany.ca 48HOME OVERVIEW SECTOR INSIGHT ENVIRONMENT SOCIAL ECONOMIC ACHIEVEMENTS AND ASSURANCE