Generation. Generations

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1 The Sunny Experience Generation for 24Oct2017 TJ Esquiro and Peter Kirby XEITL LIMITED PARTNERSHIP

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4 Combining 3 Important Goals The TRTFN is actively building a working model that can help sustain our people for many generations to come. 1. Revival of cultural values and sustenance 2. Responsible management of resources 3. Sustainable economic development s are a critical component of achieving this vision:

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9 Sustainable Development Sunny Hydro: Economic & Social Benefits

10 Economic Development Goals Create a Source of Our Own Money Create Employment Training & Capacity Building Use Local Natural Resources Environmentally Beneficial Stop $ Leakage from Community (locally owned projects do all of the above)

11 A little Background 100 years ago

12 Existing Background Existing 2.1 MW plant on Pine Creek owed by the Xeitl Limited Partnership (XLP) which is in turned 100% owned by TRTFN The plant began commercial production April 2009, so has been operating for over 8 years XLP has a 25-year contract to sell the power that needs to BC Hydro XLP negotiated the price of the power at a level designed to pay the operating costs, pay off the debt needed to build the plant, and still have some extra money each year to benefit the TRTFN

13 Hydro Expansion Background Tlingit Homeland Energy Limited (THEL) has begun planning to expand its existing hydro plant to sell the power via a new transmission line to the Yukon s electrical grid There are a number of ways to generate more power from Pine Creek both upstream and downstream from the existing power plant Up to 46,000 MWh of power could be produced for export if all the potential from the creek is tapped

14 Predicting Social and Economic Benefits It s easy for proponents to be overoptimistic when predicting the benefits of a project, they want it to succeed It s also easy to be cynical about predicted benefits, dismissing them as pie-in-the-sky But for the hydro expansion we have a way to avoid both over-optimism and cynicism by carefully comparing what benefits were predicted for the original hydro project with what actually happened

15 Original Predicted and Actual Benefits In March 2006 the XEITL LP commissioned a report to predict the expected economic benefits to the TRT and its citizens from the hydro project then being planned A comparison of predicted to actual benefits shows both how the TRT and its business arms did not over-promise what local benefits would be and how successful they have been in providing those benefits through the original hydro project

16 Original Predicted and Actual Benefits cont Employment benefits for TRT citizens during construction of the original hydro project exceeded both predicted hours of work and dollar value of benefits by approximately 58% Actual hours of employment for TRT citizens during construction totaled 13,680 hours and a value of $333,204 Although the 2006 report concerned itself solely with TRT employment benefits, the construction of original hydro project also provided significant employment benefits to non-trt residents, 26,480 hours valued at $644,973

17 Original Predicted and Actual Benefits cont The dividend benefit is defined as the annual cash flow after all expenses, taxes and loan repayments The 2006 report forecast that the annual dividend to the TRT would total $965,000 over the first four years of operations. The actual average annual benefit (taken in a variety of forms) has been 88% higher than predicted.

18 Hydro Expansion Benefits: Construction What benefits are reasonable to expect from the expansion project? The original hydro plant cost $16.6m to build and 2.0% ($333,200) went to TRT citizens pay cheques and 3.9% ($645,000) went to non-trt pay cheques The construction budget for the expansion (not including transmission line) is estimated at the prefeasibility stage to be $79.7 million. If the percentages stay the same: $1.6 million will go to TRT citizens pay cheques $3.1 million will go to non-trt pay cheques

19 What have we done since 2009 TRTFN, through its development corporations has Used hydro revenues as seed capital to raise training funds To date we have allocated over $500,000 of hydro revenues to capacity development We have doubled that with Government of Canada and Government of BC funds With OUR money the only reporting requirements are to our citizens, who assess us by their success and their family member s successes

20 What have we done since 2009 We have developed a Skills Training Employment Program (STEP) This program meets people where they are in their personal development and aspirations Relationship is vital, trust is vital, WE do this ourselves We do this ourselves because we now have money to allow that

21 What can we do moving forward Like any community, only as much as we are empowered to do To develop our expansion project it will take a concerted effort by us, by Yukon, by BC, and by Canada Reconciliation is a great word, a great idea, and empowerment is a great way to reconcile our collective history

22 Developing Projects in Small Northern Aboriginal Communities

23 Challenges in Small Northern Aboriginal Communities Limited financial and human resource capacity Same people wear many hats Each new project has it s own specific learning curve Employee & volunteer burn-out is a concern and affects projects High costs to bring in technical expertise

24 Challenges in Small Northern Aboriginal Communities Lack of investment equity available within the First Nation, or in Reliance on building in-kind equity to leverage financial resources Reliance on government assistance during development of projects IT DOESN T MATTER - YOU STILL CAN DO IT!

25 Contact Information: TJ Esquiro and Peter Kirby Phone: Xeitl Limited Partnership Box 408, BC, V0W1A0