Hydro-Québec Utility update

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1 Hydro-Québec Utility update PPDIUC May 2017 Cordova, Alaska Anne Malenfant, ing 30 april 2017

2 Presentation plan Organization (Non integrated network) Remote communities Off-grid systems Strategic plan

3 3 Organization (Non integrated network)

4 Organization (Non integrated network) Hydro-Quebec PDG : Éric Martel (july 2015) Hydro-Quebec Distribution President : David Murray (sept. 2016) VP Réseau Distribution (main distribution network) Direction Réseau distribution Matapédia (main network) et réseaux non reliés (non integrated network) 4

5 Organization (Non integrated network) Section RNR (non integrated network) - Plan and Technical expertise production and transport - Technical support - Plan and project - Energy efficiency - Installations BOR et génératrices; - Exploitation, distribution & maintenance - Installations IDLM - Exploitation & maintenance - Schefferville 5

6 6 Remote communities

7 Remote communities Population : Customers: Various autochthone communities Atikamekw, Cree, Innu, Inuit, Naskapi 24 off-grid systems 5 geographic regions Nunavik Schefferville Basse Côte-Nord Haute-Mauricie Îles-de-la-Madeleine 7

8 8 Off-grid systems

9 Generation Installations Boréal et génératrices: Boréal: Over clients; Maintenance and exploitation; 20 diesel power houses 56,2 MW» Akulivik : new diesel powerhouse of 2 MW (3 units, commissioned in 2015) 2 Back-up plants 11,6 MW» St-Augustin Bach-up plant dismantled in Hydro plant 21,6 MW 9

10 Generation Installations Boréal et génératrices: Génératrices (BDI) : Maintenance and exploitation; 50 mobile units (12 to 2000 kw) 10

11 Generation IDLM Installations Over clients 2 diesel power houses 68,4 MW 1 Heavy fuel 67,2 MW Schefferville Over 600 clients Powered by Hydro plant 17 MW Menihek (Labrador, with NALCOR) 1 back-up diesel powerhouse of 5,1 MW (4 units, commissioning 2017) in Schefferville 11

12 Transport and Distribution 7 transport stations (BCN and IDLM) 69 to 25kV Distribution mostly at 4 kv; 25 kv in Kuujjuaq 600V in Île-d Entrée and Tasiujaq Native Operators/linemen in Nunavik Transport and distribution maintenance in Basse Côte-Nord and IDLM done by other Directions 12

13 Environment August 2015 : spill at Ivujivik Leak of liters of diesel fuel Ground and water stream contaminated Total of 605 m³ of contaminated soil treated Site restauration : Sept : spill at IDLM Leak of liters of diesel fuel Ground and water contaminated Site restauration :

14 Financial Cost : 230 M$ (51,6 /kwh) Revenue : 40 M$ (9,0 /kwh) Deficit : 190 M$ (42,6 /kwh) - Social pact : Same rates everywhere for HQ customers - Dissuasive rates (electric heating, north of 53rd) - Commercial programs - Energy efficiency programs GHG emissions The Quebec cap-and-trade system Emission rights = 2M$ in 2016 (IDLM) Emission unit price scheduled to increase : 5% plus inflation every year 14

15 15 Strategic plan

16 Strategic plan Progressively convert off-grid systems to cleaner, less expensive energy sources Launch requests for proposals (RFPs) for all systems by 2020 Partnerships between project proponents ans communities Competitive bidding Consideration : particularities of each system and needs of each community to choose the most appropriate technological solution 16

17 Conversion - ongoing IDLM Phase 1 RFP october MW wind power Commissionning 2020 Phase 2 RFP 2018 All energy source Commissioning 2023 In competition with connection to main grid La Romaine Connecting to main grid Commissioning 2019 Obedjiwan RFP november 2016 Energy generated by forest biomass Commissioning 2020 Tasiujaq EOI november 2016 RFP third quarter of 2017 New power plant (renewable encouraged) Commissioning

18 Conversion - planned Nunavik phase 1 (Hudson Bay) RFP Third quarter of 2017 All energy sources Nunavik phase 2 (Ungava Bay) RFP Third quarter of 2018 All energy sources All other systems RFP second quarter of 2019 All energy sources Aupaluk Kangiqsualujjuaq Kangiqsujuaq Kangirsuk Kuujjuaq Quaqtaq 18 Akulivik Inukjuaq Ivujivik Kuujjuarapik Puvirnituq Salluit Umiujaq Clova Île-d Entrée Port Menier

19 Energy efficiency and conservation program 19 Energy efficient measures: Compact fluorescent and LED lighting Roof insulation Water and energy conservation kits Block-heater timers Energy efficiency and conservation awareness Load reduction Interruptible electricity option Promotion of reduced-load water heaters (3 elements) End-use efficiency (fuel based space and water heating) Peak winter load awareness campaign Private generators

20 Thank you for your attention! Questions? PPDIUC May 2017 Cordova, Alaska

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