Salary review before Hydro One gets CEO

By Toronto Star


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Multi-million dollar compensation packages for top executives at Ontario Power Generation and Hydro One are too high for government-owned utilities, Ontario Energy Minister Dwight Duncan said today as he announced a review of the way salary levels are set at provincial energy agencies.

DuncanÂ’s move comes after former Hydro One CEO Tom Parkinson walked away with $3 million in severance in December when he quit amid criticism of expense account irregularities and his $1.6 million salary and bonus.

In appointing a four-member panel to recommend new methods of determining executive compensation for energy officials, Duncan said the pay should “reflect the public service nature of their mandates.”

He said public utilities should not be trying to compete with private-sector salaries on Bay Street.

The Liberals claim salaries at Hydro One, Ontario Power Generation (OPG) and other agencies rose after the previous Conservative government tried — and failed — to privatize Ontario’s electricity market, but the Tories point out it was the Liberals that agreed to Parkinson’s lucrative compensation package.

In addition to Hydro One and OPG, the panel will look at the compensation levels for executives at the Ontario Power Authority, the Independent Electricity System Operator and the Ontario Energy Board.

Critics point out the salaries of Parkinson and Ontario Power Generation CEO Jim Hankinson, who also pulls in about $1.6 million a year, dwarf the $480,000 paid to the head of Hydro Quebec and the $405,000 earned by the president of B.C. Hydro — both of which are combined generation and transmission utilities.

ParkinsonÂ’s predecessor as Hydro One CEO, Eleanor Clitheroe, was fired in 2002 for lavish spending on top of her $2.2 million annual pay package, but launched a $30 million lawsuit against the province that is still before the courts.

Duncan also announced Monday the government will not appoint a new CEO of Hydro One, the giant transmission utility, until the salary review is completed in late spring.

Laura Formusa, who was appointed to replace Parkinson on an interim basis recently, will remain interim CEO of Hydro One until the review is complete and a full-time successor is named.

The panel will also look at areas of overlap between the various provincial agencies involved in the generation, transmission, regulation and marketing of electricity, but Duncan said it wonÂ’t be looking to recreate a single generation and transmission utility like the old Ontario Hydro.

“This is about continuing to strengthen the electricity sector and ensuring our energy agencies continue to focus on delivering our priorities,” Duncan said in a statement.

“We want stability for the sector. We want to keep our agencies in public hands.”

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IAEA Warns of Nuclear Risks from Russian Attacks on Ukraine Power Grids

Ukraine nuclear safety risks escalate as IAEA warns of power grid attacks threatening reactor cooling, diesel generators, and Zaporizhzhia oversight, prompting UN calls for demilitarized zones to prevent radioactive releases and accidents.

 

Key Points

Escalating threats from grid attacks and outages that jeopardize reactor cooling, IAEA oversight, and public safety.

✅ Power grid strikes threaten reactor cooling systems.

✅ Emergency diesel generators are last defense lines.

✅ Calls grow for demilitarized zones around plants.

 

In early February 2025, Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA), expressed grave concerns regarding the safety of Ukraine's nuclear facilities amid ongoing Russian attacks on the country's power grids, as Kyiv warned of a difficult winter without power after deadly strikes on energy infrastructure. Grossi's warnings highlight the escalating risks to nuclear safety and the potential for catastrophic accidents.

The Threat to Nuclear Safety

Ukraine's nuclear infrastructure, including the Zaporizhzhia Nuclear Power Plant—the largest in Europe—relies heavily on a stable power supply to maintain critical cooling systems and other safety measures. Russian military operations targeting Ukraine's energy infrastructure have led to power outages, and created hazards akin to those highlighted in downed power line safety guidance during emergency repairs, jeopardizing the safe operation of these facilities. Grossi emphasized that such disruptions could result in severe nuclear accidents if cooling systems fail.

IAEA's Response and Actions

In response to these threats, the IAEA has been actively involved in monitoring and assessing the situation. Grossi visited Kyiv to inspect electrical substations and discuss safety measures with Ukrainian officials. He underscored the necessity of ensuring uninterrupted power to nuclear plants and the critical role of emergency diesel generators as a last line of defense, and noted that maintaining staffing continuity, including measures such as staff living on site at critical facilities, may be necessary. The IAEA has also postponed the rotation of its mission at the Zaporizhzhia plant due to security concerns, as reported by Reuters.

International Concerns and Diplomatic Efforts

The international community has expressed deep concern over the potential for nuclear accidents in Ukraine, echoing earlier grid overseer warnings about systemic risks in other crises that stress energy systems. The United Nations and various countries have called for the establishment of a demilitarized zone around nuclear facilities to prevent military activities that could compromise their safety. Diplomatic efforts are ongoing to facilitate dialogue between Russia and Ukraine, aiming to ensure the protection of nuclear sites and the safety of surrounding populations.

The Zaporizhzhia Nuclear Power Plant

The Zaporizhzhia Nuclear Power Plant, located in southeastern Ukraine, has been under Russian control since early in the conflict, with Rosatom cooperation agreements reflecting broader nuclear policy priorities that frame Moscow's approach to the sector. The plant consists of six reactors and has been a focal point of international concern due to its size and the potential consequences of any incident. The IAEA has been working to maintain oversight and ensure the plant's safety amid the ongoing conflict.

Potential Consequences of Nuclear Accidents

A nuclear accident at any of Ukraine's nuclear facilities could have catastrophic consequences, including the release of radioactive materials, displacement of populations, and long-term environmental damage, with communities potentially facing weeks without electricity and basic services in the aftermath. The proximity of these plants to densely populated areas further amplifies the risks. The international community continues to monitor the situation closely, emphasizing the need for immediate action to safeguard nuclear facilities.

The ongoing conflict in Ukraine has introduced unprecedented challenges to nuclear safety. The IAEA's warnings and actions underscore the critical need for international cooperation to protect nuclear facilities from the dangers posed by military activities. Ensuring the safety of these sites is paramount to prevent potential disasters that could have far-reaching humanitarian and environmental impacts, and sustained attention to nuclear workers' safety concerns helps maintain operational readiness under strain.

 

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First US coal plant in years opens where no options exist

Alaska Coal-Fired CHP Plant opens near Usibelli mine, supplying electricity and district heat to UAF; remote location without gas pipelines, low wind and solar potential, and high heating demand shaped fuel choice.

 

Key Points

A 17 MW coal CHP at UAF producing power and campus heat, chosen for remoteness and lack of gas pipelines.

✅ 17 MW generator supplying electricity and district heat

✅ Near Usibelli mine; limited pipeline access shapes fuel

✅ Alternative options like LNG, wind, solar not cost-effective

 

One way to boost coal in the US: Find a spot near a mine with no access to oil or natural gas pipelines, where it’s not particularly windy and it’s dark much of the year.

That’s how the first coal-fired plant to open in the U.S. since 2015 bucked the trend in an industry that’s seen scores of facilities close in recent years. A 17-megawatt generator, built for $245 million, is set to open in April at the University of Alaska Fairbanks, just 100 miles from the state’s only coal mine.

“Geography really drove what options are available to us,” said Kari Burrell, the university’s vice chancellor for administrative services, in an interview. “We are not saying this is ideal by any means.”

The new plant is arriving as coal fuels about 25 percent of electrical generation in the U.S., down from 45 percent a decade earlier, even as some forecasts point to a near-term increase in coal-fired generation in 2021. A near-record 18 coal plants closed in 2018, and 14 more are expected to follow this year, according to BloombergNEF.

The biggest bright spot for U.S. coal miners recently has been exports to overseas power plants. At home, one of the few growth areas has been in pizza ovens.

There are a handful of other U.S. coal power projects that have been proposed, including plans to build an 850 megawatt facility in Georgia and an 895 megawatt plant in Kansas, even as a Minnesota utility reports declining coal returns across parts of its portfolio. But Ashley Burke, a spokeswoman for the National Mining Association, said she’s unaware of any U.S. plants actively under development besides the one in Alaska.

 

Future of power

“The future of power in the U.S. does not include coal,” Tessie Petion, an analyst for HSBC Holdings Plc, said in a research note, a view echoed by regions such as Alberta retiring coal power early in their transition.

Fairbanks sits on the banks of the Chena River, amid the vast subarctic forests in the heart of Alaska. The oil and gas fields of the state’s North slope are 500 miles north. The nearest major port is in Anchorage, 350 miles south.

The university’s new plant is a combined heat and power generator, which will create steam both to generate electricity and heat campus buildings. Before opting for coal, the school looked into using liquid natural gas, wind and solar, bio-mass and a host of other options, as new projects in Southeast Alaska seek lower electricity costs across the region. None of them penciled out, said Mike Ruckhaus, a senior project manager at the university.

The project, financed with university and state-municipal bonds, replaces a coal plant that went into service in 1964. University spokeswoman Marmian Grimes said it’s worth noting that the new plant will emit fewer emissions.

The coal will come from Usibelli Coal Mine Inc., a family-owned business that produces between 1.2 and 2 million tons per year from a mine along the Alaska railroad, according to the company’s website.

While any new plant is good news for coal miners, Clarksons Platou Securities Inc. analyst Jeremy Sussman said this one is "an isolated situation."

“We think the best producers can hope for domestically is a slow down in plant closures,” he said, even as jurisdictions like Alberta close their last coal plant entirely.

 

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Maryland’s renewable energy facilities break pollution rules, say groups calling for enforcement

Maryland Renewable Energy Violations highlight RPS compliance gaps as facilities selling renewable energy certificates, including waste-to-energy, biomass, and paper mills, face emissions and permit issues, prompting PSC and Attorney General scrutiny of environmental standards.

 

Key Points

Alleged RPS noncompliance by REC-eligible plants, prompting PSC review and potential decertification under Maryland law.

✅ Complaint targets waste-to-energy, biomass plants, and paper mills

✅ Facilities risk loss of REC certification for environmental violations

✅ PSC may investigate nonreporting; AG reviewing evidence

 

Many facilities that supply Maryland with renewable energy have exceeded pollution limits or otherwise broken environmental rules, violating a state law, according to a complaint sent by environmental groups to state energy and law enforcement officials.

Maryland law says that any company that contributes to a state renewable energy goal — half the state’s energy portfolio must come from renewable sources by 2030 — must “substantially comply” with rules on air and water quality and waste management. The complaint says more than two dozen power generators, including paper mills and trash incinerators, have records of formal or informal enforcement actions by environmental authorities.

For years, environmental groups have criticized Maryland policy that counts power plants that produce planet-warming carbon dioxide and health-threatening pollution as “renewable” energy generation, and similar tensions have emerged in California’s reliance on fossil fuels despite ambitious targets, but lawmakers concerned about protecting industrial jobs have resisted reforms. The renewable label qualifies the companies for subsidies drawn from energy bills across the state.

In a complaint filed this week, the groups asked the attorney general and Public Service Commission to step in.

“We’re subsidizing companies to produce dirty energy, but we’re also using ratepayer money to support companies that in many instances are paying environmental fines or just flouting the law,” said Timothy Whitehouse, executive director of Public Employees for Environmental Responsibility. “There’s no one to hold them to account in Maryland.”

A spokeswoman for Attorney General Brian Frosh said his office would review the complaint, which was signed by Whitehouse and Mike Ewall, executive director of the Energy Justice Network.

Public Service Commission officials said the facilities must notify them if found out of compliance with environmental rules, while at the federal level FERC action on aggregated DERs is shaping market participation, and the commission can then revoke certification under the state renewable energy program. In a statement, commission officials said they would launch an investigation if any facility had failed to notify them of any environmental violations, and encouraged anyone with evidence of such a transgression to file a complaint.

Companies named in the document accused the groups of painting an inaccurate picture.

“This complaint is based on misleading arguments designed to halt waste-to-energy practices that have clear environmental benefits recognized by the global scientific community,” said Jim Connolly, vice president of environment, health and safety for Wheelabrator, which owns a Baltimore trash incinerator.

Maryland launched its renewable energy program in 2004, diversifying the state’s energy portfolio with more environmentally friendly sources of power, even as regional debates over a Maine-Québec transmission line highlight cross-border impacts. Under the program, separate from the electricity they generate and sell to the grid, renewable power facilities can sell what are known as renewable energy certificates. Utilities such as Baltimore Gas and Electric Co. are required to buy a growing number of the certificates each year, essentially subsidizing the renewable energy facilities with money from ratepayer bills.

A dozen types of power generation qualify to sell the certificates: Solar, wind, geothermal and hydroelectric plants, as well as “biomass” facilities that burn wood and other organic matter, waste-to-energy plants that burn household trash and paper mills that burn a byproduct known as black liquor.

The complaint focuses on waste incinerators, biomass plants and paper mills, all of which environmental groups have cast as counter to the renewable energy program’s environmental goals, even as ACORE criticized a coal and nuclear subsidy proposal in federal proceedings.

“By subsidizing these corporations, Maryland is diverting the hard-earned income of Maryland ratepayers to wealthy corporations with poor environmental compliance records and undermining the state’s transition to clean renewable energy,” Whitehouse and Ewall wrote.

For example, they note that the Wheelabrator plant in Southwest Baltimore has been fined for exceeding mercury limits in the past. That occurred in 2011, when the plant settled with state regulators for violations in 2010 and 2009.

Connolly said there is “no question” the facility complies with Maryland’s renewable energy law.

Incinerators in Montgomery County and in Fairfax County, Virginia, that are owned by Covanta and sell the energy certificates in Maryland have been cited for accidental fires inside both facilities. The Maryland incinerator violated emissions rules in 2014, the same year that New Jersey forbade the Virginia facility from selling energy certificates into that state’s renewable energy program over concerns it wasn’t following ash testing regulations.

James Regan, a spokesman for Covanta, said both facilities “have excellent compliance records and they operate well below their permitted limits.” He said the Virginia facility is complying with ash testing requirements, and that both facilities emit far lower levels of pollutants such as particulate matter than vehicles do.

“It’s clear to us there’s a lot of misleading and wrong information in this document," Regan said.

The Environmental Protection Agency endorsed waste-to-energy facilities under former President Barack Obama because, while burning household trash emits carbon dioxide, scientists said that still had a smaller impact on global warming than sending trash to landfills, even as industry groups have backed the EPA in a legal challenge to the ACE rule as regulatory approaches shifted.

Environmentalists and community groups say the facilities still are harmful because they emit high levels of pollutants such as mercury, nitrogen oxides and lead. The concerns prompted Baltimore City Council to pass an ordinance in February that tightened emissions limits on the Wheelabrator facility, even as the new EPA pollution limits for coal and gas plants are being proposed, so dramatically that the company said it would no longer be able to operate once the rules go into effect in 2022.

The complaint does not mention the century-old Luke paper mill in Western Maryland that long faced criticism for its participation in the renewable energy program, but which owner Verso Co. closed this year.

It does say several of paper company WestRock’s mills in North Carolina and Virginia have faced both formal and informal EPA enforcement actions for violation of the Clean Water Act, including evolving EPA wastewater limits for power plants and other facilities, and the Clean Air Act. A WestRock spokesperson could not be reached for comment.

The complaint also says a large biomass facility in South Boston, Virginia, owned by the Northern Virginia Electric Cooperative has a record of noncompliance with the Clean Air Act over three years.

John Rainey, the plant’s operations director, said it “experienced some small exceedances to its permit limits,” but that it addressed the issues with Virginia environmental officials and has installed new technology.

All those plants have sold credits in Maryland.

Whitehouse said the environmental groups’ goal is to clean up Maryland’s renewable energy program. They did not file a lawsuit because he said there was no clear cause of action to take the state to court, but said he hopes the complaint nonetheless spurs action.

“It’s not acceptable in a clean energy program that we’re subsidizing some of the most dirty sources of energy,” he said. “Those sources aren’t even in compliance with the law, and no one seems to care.”

 

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Japan's power demand hit by coronavirus outbreak: industry head

Japan Power Demand Slowdown highlights reduced electricity consumption as industrial activity stalls amid the coronavirus pandemic, pressuring utilities, the grid, and manufacturing, with economic impacts monitored by Chubu Electric and the federation of electric utilities.

 

Key Points

A drop in Japan's electricity use as industrial activity slows during the coronavirus pandemic, pressuring utilities.

✅ Industrial slowdown cuts electricity consumption

✅ Utilities monitor grid stability and demand trends

✅ Pandemic-linked economic risks weigh on power sector

 

Japan's power demand has been hit by a slowdown in industrial activity due to the coronavirus outbreak, reflecting broader shifts in electricity demand worldwide, Japanese utilities federation's head said on Friday, without giving specific figures.

Electricity load profiles during lockdowns revealed changes in daily routines, as shown by lockdown electricity data across multiple regions.

Analysts have identified key shifts in U.S. electricity consumption patterns that mirror industrial slowdowns.

"We are closely watching development of the pandemic, underscoring the need for electricity during such crises, as further reduction in corporate and economic activities would lead to serious impacts," Satoru Katsuno, the chairman of Japan's federation of electric utilities and president of Chubu Electric Power Co Inc, told a news conference.

In parallel, the power industry has intensified coordination with federal partners to sustain grid reliability and protect critical workers.

Some governments, including Brazil, considered emergency loans for the power sector to stabilize utilities amid revenue pressures.

Consumer advocates warned that pandemic-related electricity shut-offs and bill burdens could exacerbate energy insecurity for vulnerable households.

 

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California Halts Energy Rebate Program Amid Trump Freeze

California energy rebate freeze disrupts heat pump incentives, HVAC upgrades, and climate funding, as federal uncertainty stalls Inflation Reduction Act support, delaying home electrification, energy efficiency gains, and greenhouse gas emissions reductions statewide.

 

Key Points

A statewide pause on $290M incentives for heat pumps and HVAC upgrades due to federal climate funding uncertainty.

✅ $290M program paused amid federal funding freeze

✅ Heat pump, HVAC, electrification upgrades delayed

✅ Previously approved rebates honored; new apps halted

 

California’s push for a more energy-efficient future has hit a significant roadblock as the state pauses a $290 million rebate program aimed at helping homeowners replace inefficient heating and cooling systems with more energy-efficient alternatives. The California Energy Commission announced the suspension of the program, citing uncertainty stemming from President Donald Trump’s decision to freeze funding for various climate-related initiatives.

The Halted Program

The energy rebate program, which utilizes federal funding to encourage the use of energy-efficient appliances such as heat pumps, was a crucial part of California’s efforts to reduce energy consumption and greenhouse gas emissions. By providing financial incentives for homeowners to upgrade to more efficient heating and cooling systems, the program aimed to make green energy solutions more accessible and affordable to residents. The rebate program had been popular, with many homeowners eager to participate in the initiative to lower their energy costs and improve the sustainability of their homes.

However, due to the uncertainty surrounding federal funding, the California Energy Commission announced on Monday that it would no longer be accepting new applications for the program. The agency did clarify that it would continue to honor rebates for applications that had already been approved. The pause will remain in effect until the Trump administration provides more clarity regarding the program's future funding.

The Trump Administration’s Role

This move highlights a broader issue regarding access to federal funding for state-level energy programs. The Trump administration’s decision to freeze funding for climate-related initiatives has left many states in limbo, as previously approved federal money has not been distributed as expected. Despite federal court rulings directing the Trump administration to restore these funds, states like California are still struggling to navigate the uncertainty of climate-related financial support from the federal government.

California’s decision to pause the rebate program comes after similar actions by other states. Arizona paused a similar program just a week prior, and Rhode Island had already paused new applications earlier this year. These states are all recipients of funding from a larger $4.3 billion initiative under the Inflation Reduction Act, which is designed to help homeowners purchase energy-efficient appliances like heat pumps, water heaters, and electric cooktops.

Impact of the Freeze

The pause of California's rebate program has serious implications for both consumers and the state’s energy goals. For residents, the halt means delays in the ability to upgrade to more energy-efficient home systems, which could lead to higher energy costs in the short term, a concern amid soaring electricity prices across the state.

The $290 million program was a significant step in encouraging homeowners to invest in energy efficiency, and its suspension leaves a gap in the availability of resources for those who were hoping to make energy-saving upgrades. Many of these upgrades are not just beneficial to homeowners, but they also contribute to the state’s overall energy efficiency goals, helping to reduce reliance on non-renewable energy sources, even as California's dependence on fossil fuels persists, and decrease greenhouse gas emissions.

Federal and State Tensions

The freeze in funding is just one of many points of tension between the Trump administration and states like California, which have pursued aggressive environmental policies aimed at reducing emissions and combating climate change. California has often found itself at odds with the federal government on environmental issues, especially under the leadership of President Trump. The state’s ambitious environmental policies have sometimes clashed with the federal government's approach, including efforts to wind down its fossil fuel industry in line with climate goals.

In this case, the freeze on climate-related funding appears to be part of a broader strategy by the Trump administration to limit federal spending on environmental programs, and as regulators weigh whether the state may need more power plants, planning remains complex. While the freeze impacts states that are working to transition to clean energy, critics argue that such moves undermine efforts to tackle climate change and could slow down progress toward a greener future.

The Path Forward

For California, the next steps will depend heavily on the actions of the federal government. While the state can continue to push for climate funding in the courts, the lack of clarity around the release of federal funds creates uncertainty for state programs that rely on these resources. As California continues to navigate this funding freeze, it will need to explore alternative solutions to keep its energy efficiency programs on track, such as efforts to revamp electricity rates to clean the grid, even in the face of federal challenges.

In the meantime, California residents and homeowners who were hoping to take advantage of the rebate program may have to wait until further clarification from the federal government is provided, even as officials warn of a looming electricity shortage in coming years. Whether the program can be restored or expanded in the future remains to be seen, but for now, the pause serves as a reminder of the ongoing struggles that states face when dealing with shifting federal priorities.

As the issue unfolds, other states facing similar challenges may take cues from California’s actions, and with California exporting energy policies to Western states, broader conversations about how federal and state governments can collaborate to ensure that energy efficiency initiatives and climate goals are not sidelined due to political or budgetary differences.

California’s decision to pause its $290 million energy rebate program is a significant development in the ongoing struggle between state and federal governments over climate-related funding. The uncertainty created by the Trump administration’s freeze on energy efficiency programs has led to disruptions in state-level efforts to promote sustainability and reduce emissions. As the situation continues to evolve, both California and other states will need to consider how to move forward without relying on federal funding that may or may not be available in the future.

 

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Told "no" 37 times, this Indigenous-owned company brought electricity to James Bay anyway

Five Nations Energy Transmission Line connects remote First Nations to the Ontario power grid, delivering clean, reliable electricity to Western James Bay through Indigenous-owned transmission infrastructure, replacing diesel generators and enabling sustainable community growth.

 

Key Points

An Indigenous-owned grid link providing reliable power to Western James Bay First Nations, replacing polluting diesel.

✅ Built by five First Nations; fully Indigenous-owned utility

✅ 270 km line connecting remote James Bay communities

✅ Ended diesel dependence; enabled sustainable development

 

For the Indigenous communities along northern Ontario’s James Bay — the ones that have lived on and taken care of the lands as long as anyone can remember — the new millenium marked the start of a diesel-less future, even as Ontario’s electricity outlook raised concerns about getting dirtier in policy debates. 

While the southern part of the province took Ontario’s power grid for granted, despite lessons from Europe’s power crisis about reliability, the vast majority of these communities had never been plugged in. Their only source of power was a handful of very loud diesel-powered generators. Because of that, daily life in the Attawapiskat, Kashechewan and Fort Albany First Nations involved deliberating a series of tradeoffs. Could you listen to the radio while toasting a piece of bread? How many Christmas lights could you connect before nothing else was usable? Was there enough power to open a new school? 

The communities wanted a safe, reliable, clean alternative, with Manitoba’s clean energy illustrating regional potential, too. So did their chiefs, which is why they passed a resolution in 1996 to connect the area to Ontario’s grid, not just for basic necessities but to facilitate growth and development, and improve their communities’ quality of life. 

The idea was unthinkable at the time — scorned and dismissed by those who held the keys to Ontario’s (electrical) power, much like independent power projects can be in other jurisdictions. Even some in the community didn’t fully understand it. When the idea was first proposed at a gathering of Nishnawbe Aski Nation, which represents 49 First Nations, one attendee said the only way he could picture the connection was as “a little extension cord running through the bush from Moosonee.” 

But the leadership of Attawapiskat, Kashechewan and Fort Albany First Nations had been dreaming and planning. In 1997, along with members of Taykwa Tagamou and Moose Cree First Nations, they created the first, and thus far only, fully Indigenous-owned energy company in Canada: Five Nations Energy Inc., as partnerships like an OPG First Nation hydro project would later show in action, too. 

Over the next five years, the organization built Omushkego Ishkotayo, the Cree name for the Western James Bay transmission line: “Omushkego” refers to the Swampy Cree people, and “Ishkotayo” to hydroelectric power, while other regions were commissioning new BC generating stations in parallel. The 270-kilometre-long transmission line is in one of the most isolated regions of Ontario, one that can only be accessed by plane, except for a few months in winter when ice roads are strong enough to drive on. The project went online in 2001, bringing reliable power to over 7,000 people who were previously underserved by the province’s energy providers. It also, somewhat controversially, enabled Ontario’s first diamond mine in Attawapiskat territory.

The future the First Nations created 25 years ago is blissfully quiet, now that the diesel generators are shut off. “When the power went on, you could hear the birds,” Patrick Chilton, the CEO of Five Nations Energy, said with a smile. “Our communities were glowing.”

Power, politics and money: Five Nations Energy needed government, banks and builders on board
Chilton took over in 2013 after the former CEO, his brother Ed, passed away. “This was all his idea,” Chilton told The Narwhal in a conversation over Zoom from his office in Timmins, Ont. The company’s story has never been told before in full, he said, because he felt “vulnerable” to the forces that fought against Omushkego Ishkotayo or didn’t understand it, a dynamic underscored by Canada’s looming power problem reporting in recent years. 

The success of Five Nations Energy is a tale of unwavering determination and imagination, Chilton said, and it started with his older brother. “Ed was the first person who believed a transmission line was possible,” he said.

In a Timmins Daily Press death notice published July 2, 2013, Ed Chilton is described as having “a quiet but profound impact on the establishment of agreements and enterprises benefitting First Nations peoples and their lands.” Chilton doesn’t describe him that way, exactly. 

“If you knew my brother, he was very stubborn,” he said. A certified engineering technologist, Ed was a visionary whose whole life was defined by the transmission line. He was the first to approach the chiefs with the idea, the first to reach out to energy companies and government officials and the one who persuaded thousands of people in remote, underserved communities that it was possible to bring power to their region.

After that 1996 meeting of Nishnawbe Aski Nation, there came a four-year-long effort to convince the rest of Ontario, and the country, the project was possible and financially viable. The chiefs of the five First Nations took their idea to the halls of power: Queen’s Park, Parliament Hill and the provincial power distributor Hydro One (then Ontario Hydro). 

“All of them said no,” Chilton said. “They saw it as near to impossible — the idea that you could build a transmission line in the ‘swamp,’ as they called it.” The Five Nations Energy team kept a document at the time tracking how many times they heard no; it topped out at 37. 

One of the worst times was in 1998, at a meeting on the 19th floor of the Ontario Hydro building in the heart of downtown Toronto. There, despite all their preparation and planning, a senior member of the Ontario Hydro team told Chilton, Martin and other chiefs “you’ll build that line over my dead body,” Chilton recalled. 

At the time, Chilton said, Ontario Hydro was refusing to cooperate: unwilling to let go of its monopoly over transmission lines, but also saying it was unable to connect new houses in the First Nations to diesel generators it said were at maximum capacity. (Ontario Hydro no longer exists; Hydro One declined to comment.)

“There’s always naysayers no matter what you’re doing,” Martin said. “What we were doing had never been done before. So of course people were telling us how we had never managed something of this size or a budget of this size.” 

“[Our people] basically told them to blow it up your ass. We can do it,” Chilton said.

So the chiefs of the five nations did something they’d never done before: they went to all of the big banks and many, many charitable foundations trying to get the money, a big ask for a project of this scale, in this location. Without outside support, their pitch was that they’d build it themselves.

This was the hardest part of the process, said Lawrence Martin, the former Grand Chief of Mushkegowuk Tribal Council and a member of the Five Nations Energy board. “We didn’t know how to finance something like this, to get loans,” he told The Narwhal. “That was the toughest task for all of us to achieve.”

Eventually, they got nearly $50 million in funding from a series of financial organizations including the Bank of Montreal, Pacific and Western Capital, the Northern Ontario Heritage Fund Corporation (an Ontario government agency) and the engineering and construction company SNC Lavalin, which did an assessment of the area and deemed the project viable. 

And in 1999, Ed Chilton, other members of the Chilton family and the chiefs were able to secure an agreement with Ontario Hydro that would allow them to buy electricity from the province and sell it to their communities. 

 

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