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From Monday's Globe and Mail -

Natives hold key to Ontario power - A proposed east-west energy grid can't proceed without their support
KAREN HOWLETT - Posted ON 02/04/07

Native leaders are sharply divided over a proposed transmission link that would import electricity from Manitoba to power-hungry Ontario, potentially throwing a wrench into the Harper government's green plan.

Prime Minister Stephen Harper has earmarked $586-million of the $1.5-billion Canada EcoTrust Fund to help Ontario reduce greenhouse-gas emissions and fight climate change by building the so-called east-west link. Manitoba has an abundance of hydroelectric power, so the grid could supply Ontario with a clean source of power and help the province phase out its pollution-spewing coal plants. But the link cannot go ahead without the support of native communities in Northern Ontario because it would run through their traditional territories.

Native leaders in 19 of the 49 Northern Ontario reserves represented by the Nishnawbe-Aski Nation agreed late Thursday night to have their communities push ahead with the project and seek an ownership interest in it. But leaders of the remaining 30 communities said they could not throw their support behind the project until the Ontario government outlines its stand on broader economic development issues.

They want a revenue-sharing agreement with the government and a commitment on how the grid can become a springboard for other economic development initiatives.

"I don't think the chiefs are saying outright 'no,' " deputy Grand Chief Alvin Fiddler said in an interview. "We need to know exactly what the full picture is before we can even begin to reach a decision."

Steve Erwin, a spokesman for Ontario Energy Minister Dwight Duncan, said the government is encouraged by the first nations' interest in the proposed project. But some of the NAN leaders are anxious to move faster.

The Wabun and Matawa tribal councils, which represent communities near Timmins and Thunder Bay, set up the First Nations Energy Alliance last week to explore having the reserves' own equity in the transmission line, said Harvey Yesno, head of the NAN steering committee for the project.

"They said, 'Enough is enough. We want to create jobs and business opportunities,' " he said.

A source close to the federal government said Indian Affairs Minister Jim Prentice is equally keen to get the project up and running. Not only is it a key part of the Harper government's newfound commitment to cleaning up the environment. The project has the added advantage of potentially doing something positive for aboriginals, who have felt slighted by the Harper government, the source said.

"Minister Prentice has been clear that he encourages economic development for aboriginals," said Deirdre McCracken, a spokeswoman for the minister. "But as for anything related to the east-west power grid, for the time being it's very much up in the air."

The project would involve spending about $10-billion to develop a 1,250-megawatt hydro dam known as Conawapa on the Nelson River in northeastern Manitoba. A high- voltage transmission line from the dam to James Bay in Northern Ontario and south to Timmins and Sudbury would cost another $1.5-billion.

The megaproject would take at least a decade to complete. But it is expected to run into stiff opposition from environmentalists, who will see the transmission line as a significant threat to the boreal forest. The project will not proceed until the Ontario government signs a long-term agreement with Manitoba to purchase the electricity produced at Conawapa. Talks are under way between the two provinces.

The Ontario government is counting on the project to help address the province's looming electricity shortage. By 2015, demand is forecast to exceed supply.

For their part, native leaders are trying to find a way to work together on the project rather than split off into different groups. NAN leaders signed a resolution at 10:30 Thursday night endorsing the continuation of discussions with the provincial government.

Hydro power megaproposal

The Conawapa Generating Station would be capable of producing 1,340 megawatts of electricity on the Lower Nelson River, 28 kilometres downstream from the existing Limestone Generating Station. Conawapa would require no significant water storage upstream, since flooding would be contained almost entirely within the natural banks of the Nelson River.

Ontario's existing installed generation capacity

includes nuclear, coal, oil, gas, hydroelectric, wood and waste-fuelled generation, which results in a total installed capacity of approximately 30,000 MW.

Coal: 21.4%
Oil and gas: 16.5%
Hydro: 25.8%
Nuclear: 36.1%
Other: 0.2%

A massive new east-west power grid could both help burnish the Harper government's image as environmentally friendly and help Ontario address its looming electricity crisis. But the proposed Conawapa project -- a $10-billion dam on the Nelson River and a $1.5-billion transmission line that would take 10 years to build -- faces numerous hurdles.

The four routes

The location of the transmission line is an open question. The Ontario government is studying four route options, all of which would affect a number of native communities.

DIRECT ROUTE: 1,750 kilometres from the proposed Conawapa dam to Sudbury. In a 2006 study for the Ontario government, favoured "from a technical, economic and environmental perspective" by consultants SNC-Lavalin Inc. and McLeod Wood Associates.

THUNDER BAY ROUTE: 1,750 kilometres from Conawapa southeast to Thunder Bay and then east to Sudbury.

WINNIPEG ROUTE: 2,400 kilometres from Conawapa to the Winnipeg area, then through the Thunder Bay area to Sudbury.

FAR NORTH ROUTE: 1,750 kilometres from Conawapa toward James Bay, then south through Kapuskasing to Timmins and Sudbury. Favoured by consultant's report from an environmental perspective.

Native bands Manitoba

The provincial government is promoting a partnership with native bands that would see these communities borrow a third of the project's financing costs in return for a share of the revenue from the project. The government also signed an agreement with Fox Lake Cree Nation in Gilliam to bring the community in as a partner. In addition, it paid the Cree group restitution for earlier projects that flooded the Fox Lake territory.

Ontario

The Nishnawbe-Aski Nation, which represents 49 communities in Northern Ontario, will not throw their support behind the transmission line until the provincial government outlines its position on broader economic development issues. NAN also wants a revenue-sharing agreement with the province and an ownership stake in the project.