1 Transformation Presentation to the Public Sector Management Workshop June 1,

2 “Climate change” includes operations New legislative requirements are applying pressure to change. Financial markets are tightening; Demand from customers is more complex; An aging workforce is about to retire en masse. 2

3 Electrical issues on public agenda The Saskatchewan government is leading a province-wide discussion about the feasibility of nuclear power. This fall the government will lead a second set of discussions on environmentally and economically sustainable power. 3

4 SaskPower unveils new vision SaskPower’s vision is: People, Innovation and Partnerships…powering Saskatchewan to a bright future. SaskPower has also adopted five strategic priorities that guide and focus our daily work. 4

5 Strategic Priority Number 1 SaskPower’s first priority is: proud and productive employees. A Respectful Workplace Policy stresses workplace values such as trust. A Diversity Strategy helps SaskPower be an employer of choice for all potential employees. 5

6 Strategic Priority Number 2 SaskPower’s second strategic priority is: Loyal and satisfied customers. Service Delivery Renewal redesigns how we interact with customers. SaskPower Eneraction offers a suite of energy efficiency and conservation programs. 6

7 Strategic Priority Number 3 SaskPower’s third strategic priority is: Dependable and secure infrastructure. In the next 20 years, decisions will be required on a large portion of generation supply. Load growth is poised to more than double when we look ahead. 7

8 Revitalization underway SaskPower must revitalize its power supply, transmission and distribution channel systems, and service delivery channels. Capital spending totals $919 million in Capital spending projected at $8 billion over next decade. 8

9 Clean coal studied SaskPower is looking to use carbon capture and sequestration technology to rebuild a unit at Boundary Dam Power Station. This unit will produce more than 100 megawatts of baseload power by Saskatchewan has a 300-year supply of lignite coal. 9

10 Saskatchewan/Montana agreement Goals include construction of a technology-neutral carbon dioxide capture reference plant at an existing coal-fired generating station in Saskatchewan. Goals include construction of a North American CO2 storage facility in eastern Montana. 10

11 Wind capabilities studied The Wind Power Integration and Development Unit has studied the effect of wind power on the provincial grid. SaskPower is working toward a wind power deployment strategy in

12 Hydro projects discussed Preliminary talks are underway on two possible hydro projects in the north. Hydro is appealing because it is a zero-emission generation source. The impact of hydro projects on land and traditional fishing areas must be considered. 12

13 Generation purchases pursued SaskPower’s old model of building, owning and operating generating facilities is not necessarily how the corporation will proceed in the future. 13

14 Alternative power purchased NRGreen Power completed construction of four waste heat recovery units on Alliance’s natural gas pipeline. Red Lily Wind Power will generate 25 megawatts from a facility to be constructed near Moosomin. 14

15 Nuclear power investigated SaskPower considers nuclear power to be an option for providing electricity in the future and is studying the subject. SaskPower is providing information to the public consultation process occurring in Saskatchewan. 15

16 Long-term supply planning underway SaskPower is evaluating all feasible supply alternatives and creating a new long-term Supply Development Plan. SaskPower is taking into account emerging federal and provincial guidelines and standards for air emissions. 16

17 Strategic Priority Number 4 SaskPower’s fourth strategic priority is: strong environmental stewardship and performance. Emissions Control Research Facility at Poplar River Power Station received national award. SaskPower has a leadership role in a number of research partnerships. 17

18 Strategic Priority Number 5 SaskPower’s fifth strategic priority is: prudent financial management and growth. Regular, moderate rate increases will be sought to help maintain a strong debt-to-equity ratio. Over 90 per cent of SaskPower’s revenue comes from Saskatchewan sales. NorthPoint Energy Solutions is an energy trader looking to grow its work. 18

19 Transformation underway SaskPower’s challenge is more than the need to generate and deliver electricity throughout Saskatchewan. The corporation has a once-in-a-generation opportunity to shape the province’s future path. Decisions will be made that support the province’s economy and its environment. 19

20 Questions? 20