Qulliq Energy Corp., General Rate Application 2010

QULLIQ ENERGY CORPORATION
on behalf of
Nunavut Power Corporation
2010/11General Rate Application
September 2010
QEC 2010/11 Phase I General Rate Application September 2010
TABLE OF CONTENTS
1.0 CORPORATE OVERVIEW .................................................................................. 1-1

1.1 INTRODUCTION ................................................................................................. 1-1
1.2 OVERVIEW OF THE CORPORATION .................................................................... 1-1
1.3 CHALLENGES AND OPPORTUNITIES FACING THE CORPORATION ..................... 1-2
1.4 MEASURES TAKEN TO MITIGATE IMPACTS ON CUSTOMERS .............................. 1-2
1.5 RATE PROPOSAL SUMMARY ............................................................................... 1-4
2.0 SYSTEM SALES AND GENERATION REQUIREMENTS ........................................ 2-1
2.1 INTRODUCTION ................................................................................................. 2-1
2.2 SYSTEM OVERVIEW AND COMPARISON OF 2004/05 AND 2010/11
FORECASTS ........................................................................................................ 2-1
2.2.1 Facilities ........................................................................................................ 2-1
2.2.2 System Trends Since the Previous GRA............................................................. 2-1
2.2.3 Fuel Efficiency ................................................................................................ 2-5
2.2.4 Non-Electricity Revenues ................................................................................. 2-5
2.3 FORECAST METHODS FOR 2010/11 ................................................................... 2-6
2.3.1 Sales Forecast................................................................................................ 2-7
2.3.2 Customer Forecast ......................................................................................... 2-8
2.3.3 Revenue Forecast Results .............................................................................. 2-10
2.3.4 Losses and Station Service Forecast ................................................................ 2-10
2.3.5 Generation ................................................................................................... 2-11
2.3.6 Fuel Requirements ........................................................................................ 2-11
2.3.7 Non-electricity Revenue Forecast .................................................................... 2-11
3.0 REVENUE REQUIREMENT................................................................................. 3-1
3.1 INTRODUCTION ................................................................................................. 3-1
3.2 REVENUE REQUIREMENT CHANGES SINCE THE 2004/05 GRA .......................... 3-2
3.3 NON-FUEL OPERATING AND MAINTENANCE EXPENSES .................................... 3-3
3.3.1 Salaries and Wages ........................................................................................ 3-4
3.3.2 Supplies and Services ..................................................................................... 3-6
3.3.3 Travel and Accommodation ............................................................................. 3-9
3.4 PRODUCTION FUEL ............................................................................................ 3-9
3.5 AMORTIZATION ............................................................................................... 3-10
3.6 RETURN ON RATE BASE ................................................................................... 3-12
Page i
3.7 ACCOUNTING CHANGES ................................................................................... 3-15

4.0 SHORTFALL FROM REVENUES AT EXISTING RATES ........................................ 4-1
4.1 INTRODUCTION ................................................................................................. 4-1
4.2 CORPORATE-WIDE SHORTFALL FROM REVENUES AT EXISTING RATES ............ 4-1
4.3 SHORTFALL ARISING FROM ITEMS OTHERWISE COLLECTED VIA RIDERS ........ 4-3
5.0 RATE BASE ...................................................................................................... 5-1
5.1 INTRODUCTION ................................................................................................. 5-1
5.2 GROSS PLANT IN SERVICE................................................................................. 5-1
5.3 ACCUMULATED AMORTIZATION ........................................................................ 5-2
5.4 CUSTOMER CONTRIBUTIONS............................................................................. 5-2
5.5 WORKING CAPITAL............................................................................................ 5-3
6.0 RESPONSE TO URRC DIRECTIVES ................................................................... 6-1
6.1 INTRODUCTION ................................................................................................. 6-1
6.2 RESPONSE TO URRC DIRECTIVES ...................................................................... 6-1
6.2.1 Community Consultations ................................................................................ 6-1
6.2.2 Exclude $1.745 Mil from Plant in Service ........................................................... 6-2
6.2.3 Software Cost ................................................................................................ 6-2
6.2.4 Lead Lag Study .............................................................................................. 6-3
6.2.5 Reserve for injuries and damages (uninsured losses) ......................................... 6-3
6.2.6 Rate Hearing Reserve ..................................................................................... 6-4
6.2.7 Amortization Study (including Asset Retirement Obligation Study) ....................... 6-5
6.2.8 Amortization Rate........................................................................................... 6-5
6.2.9 Alternative Energy Study ................................................................................. 6-5
6.2.10 Future Removal and Site Restoration Expenditures ............................................ 6-7
6.2.11 Rate Stabilization Fund ................................................................................... 6-7
6.2.12 Follow-up with External Review ....................................................................... 6-9
6.2.13 Rate Averaging or Levelizing Rates ................................................................. 6-11
6.2.14 Capital Stabilization Fund ............................................................................... 6-16
6.2.15 Rate Averaging in Respite to the Capital Stabilization Fund ................................ 6-17
6.2.16 Cost of Service Study ..................................................................................... 6-17
6.2.17 Two Phase Application ................................................................................... 6-17
6.2.18 Customer Deposits ........................................................................................ 6-18
6.2.19 Service Connection Fee .................................................................................. 6-19
6.2.20 Reliability Statistics (Planned and Unplanned Outage Report) ............................ 6-19
6.2.21 Reliability Measures ....................................................................................... 6-19
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6.2.22 Customer Complaints ..................................................................................... 6-20

6.2.23 Service Quality Measures and Reporting (Industry Standards) ........................... 6-21
6.2.26 District Heating Cost Study ............................................................................. 6-22
6.2.27 Treatment of Future Industrial Customers........................................................ 6-23
LIST OF TABLES
Table 2.1 System Sales – 2004/05 GRA Forecast Compared to 2010/11 ......................................... 2-2
Table 2.2 Forecast Electricity Revenues at Existing Rates 2004/05 GRA Compared to 2010/11 ......... 2-4
Table 2.3 Generation, Losses and Station Service - 2004/05 GRA forecast compared to 2010/11 ...... 2-5
Table 2.4 Non-Electrical Revenue - 2004/05 GRA Forecast compared to 2010/11 ............................ 2-6
Table 3.1 2010/11 Revenue Requirement ($000s) ......................................................................... 3-1
Table 3.2 Revenue Requirement – 2004/05 GRA Forecast Compared to 2010/11 Forecast ............... 3-3
Table 3.3 O&M Expense – 2004/05 GRA Forecast Compared to 2010/11 ($000s) ............................ 3-3
Table 3.4 Generation, Fuel Consumption and Fuel Cost – 2004/05 GRA Forecast Compared to 2010/11
Forecast .................................................................................................................................. 3-10
Table 3.5 Amortization Expense – 2004/05 GRA Forecast Compared to 2010/11 Forecast ............. 3-12
Table 3.6 Return on Ratebase – 2004/05 GRA Forecast Compared to 2010/11 Forecast ............... 3-13
Table 4.1 Shortfall from Revenues at Existing Rates 2010/11 ($000s) ............................................. 4-2
Table 4.2 Shortfall from Revenues at Existing Rates 2004/05 GRA Forecast Compared to 2010/11
($000s) ..................................................................................................................................... 4-3
Table 4.3 Shortfall from Revenues at Existing Rates Less: fuel expense otherwise recovered by riders
2010/11 ($000s) ......................................................................................................................... 4-4
Table 6.1 Software Costs Included in QEC’s 2010/11 Plant-in-Service ($000s) .................................. 6-3
Table 6.2 Reserve for Injuries and Damages Continuity Schedule ($000) ......................................... 6-4
Table 6.3 Hearing Reserve Continuity Schedule ($000).................................................................. 6-5
Table 6.4 Rate Stabilization Fund Application Filing Dates ................................................................. 9
Table 6.5 2010/11 Gross Plant in Service and Accumulated Amortization Adjustment To Residual Heat
Assets Exclusion ($000s) ............................................................................................................. 22
Table 6.6 2010/11 Forecast O&M Budget Adjustment for Residual Heat Related Expenses ($000s) .... 23
Page iii
LIST OF SCHEDULES
Schedule 1.1.1 Qulliq Energy Corporation 2010/11 General Rate Application Base Rate Change
Schedule 1.2.1 Qulliq Energy Corporation 2010/11 General Rate Application Proof of Revenue:
Forecast Electricity Sales (MWh)
Proposed Base Rate (cents/KWh)
Revenue Forecast from Electricity Sales at Proposed Rates ($000)
Schedule 1.3.1 Qulliq Energy Corporation 2010/11 General Rate Application Proposed Interim Rates
Schedule 1.3.5 Qulliq Energy Corporation 2010/11 General Rate Application Proposed Interim
Rates: Streetlights ($/month)
Schedule 2.1 Qulliq Energy Corporation 2010/11 General Rate Application Summary of
Generation, Sales and Revenue
Schedule 2.2 Qulliq Energy Corporation 2010/11 General Rate Application Fuel Efficiency Forecast
for 2009/10 and 2010/11
Schedule 3.1 Qulliq Energy Corporation 2010/11 General Rate Application Revenue Requirement
Schedule 3.2.1 Qulliq Energy Corporation 2010/11 General Rate Application 2007/08 Actual
Production Fuel Cost
Schedule 3.2.2 Qulliq Energy Corporation 2010/11 General Rate Application 2008/09 Actual
Schedule 3.2.3 Qulliq Energy Corporation 2010/11 General Rate Application 2009/10 Forecast
Schedule 3.2.4 Qulliq Energy Corporation 2010/11 General Rate Application 2010/11 Forecast
Schedule 3.3 Qulliq Energy Corporation 2010/11 General Rate Application Amortization Provision
by Functions
Schedule 3.4 Qulliq Energy Corporation 2010/11 General Rate Application Return on Rate Base –
Mid Year
Schedule 3.5 Qulliq Energy Corporation 2010/11 General Rate Application Capitalization – Mid
Year
Schedule 3.6 Qulliq Energy Corporation 2010/11 General Rate Application Cost of Long-Term Debt
Schedule 5.1 Qulliq Energy Corporation 2010/11 General Rate Application Rate Base (in
thousands of dollars)
Schedule 5.2 Qulliq Energy Corporation 2010/11 General Rate Application Gross Plant in Service
(in thousands of dollars)
Schedule 5.3 Qulliq Energy Corporation 2010/11 General Rate Application Accumulated
Amortization (in thousands of dollars)
Schedule 5.4 Qulliq Energy Corporation 2010/11 General Rate Application Customer Contributions
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Schedule 5.5 Qulliq Energy Corporation 2010/11 General Rate Application Working Capital
Requirement (in thousands of dollars)
Schedule 5.6 Qulliq Energy Corporation 2010/11 General Rate Application 2007/08 Actual Cash
Working Capital (in thousands of dollars)
Schedule 5.7 Qulliq Energy Corporation 2010/11 General Rate Application 2008/09 Actual Cash
Schedule 5.8 Qulliq Energy Corporation 2010/11 General Rate Application 2009/10 Forecast Cash
Schedule 5.9 Qulliq Energy Corporation 2010/11 General Rate Application 2010/11 Forecast Cash
LIST OF APPENDICES
APPENDIX – A: SUMMARY OF GENERATION, SALES AND REVENUE

APPENDIX – B: CAPITAL ADDITIONS
APPENDIX – C: AMORTIZATION STUDY REPORT
APPENDIX – D: LEAD LAG STUDY
APPENDIX – E: FORECASTING METHOD ILLUSTRATION
APPENDIX – F: CUSTOMER DEPOSIT INVESTMENT OPTIONS
APPENDIX – G: PLANNED AND UNPLANNED OUTAGES REPORT
APPENDIX – H: CUSTOMER COMPLAINT FORM
APPENDIX – I: GLOSSARY OF TERMS
Page v
1 1.0 CORPORATE OVERVIEW
2 1.1 INTRODUCTION
3 This chapter sets out an overview of the Qulliq Energy Corporation (“QEC” or the
4 “Corporation”), its operating environment, and the challenges and opportunities facing
5 the Corporation today and in the future:
6  Overview of the Corporation
7  Challenges and Opportunities facing the Corporation
8  Measures Taken to mitigate Impacts on Customers
9 1.2 OVERVIEW OF THE CORPORATION
10 On April 1, 2001, Nunavut Power Corporation took up the mandate to supply electricity
11 to communities in the Nunavut Territory. Renamed Qulliq Energy Corporation in 2003,
12 the Corporation is 100% owned by the Government of Nunavut.
13 Qulliq Energy Corporation is incorporated and operates under the Qulliq Energy Act.
14 Rates for its electricity service are approved by the responsible Minister who receives
15 advice from the Utility Rates Review Council (“URRC”) pursuant to the Utility Rate
16 Review Council Act. The Corporation operates under two trades names:
17  Nunavut Power generates and supplies electricity; and
18  Qulliq Energy provided core services to the corporate functions.
Chapter 1: Corporate Overview Page 1-1

1 These two divisions share a single Board, common financial statements and a unified
2 corporate structure.
3 QEC is the sole generator and transmitter of electricity in Nunavut and serves
4 approximately 12,800 electricity customers. The Corporation generates and distributes
5 electricity to Nunavummiut through the operation of 27 diesel plants in 25 stand alone
6 communities having generating capacities ranging from 15MW at Iqaluit to 400KW at
7 Grise Fiord. The Corporation provides mechanical, electrical and line maintenance from
8 three regional centers and administers the Corporation’s business activities from a
9 headquarters in Baker Lake and executive offices in Iqaluit.
10 1.3 CHALLENGES AND OPPORTUNITIES FACING THE CORPORATION
11 The Corporation’s systems serve a population of approximately 33,000 located in an
12 area of 2.1 million square kilometers. As these systems are isolated and unconnected,
13 each must be planned for and operated independently.
14 The Corporation exists in a unique operating environment. Extremely low customer
15 densities, harsh climate and the consequential logistics challenges, as well as the lack
16 of an integrated transmission system set the Corporation apart from most utilities. The
17 unique environment within which the Corporation operates has a profound impact on
18 the Corporation’s operations throughout its service area.
19 1.4 MEASURES TAKEN TO MITIGATE IMPACTS ON CUSTOMERS
20 In order to aid customers in addressing current rate levels, as well as ongoing rate
21 pressures (such as from increasing fuel prices), QEC has undertaken a number of
22 programs to help customers manage their energy consumption and minimize the impact

1 they see on their bills. In 2005 the Nunavut Energy Centre (NEC) was established as a
2 not-for-profit division of QEC to develop and enhance energy efficiency and support
3 initiatives to reduce greenhouse gases across Nunavut. The Corporation managed and
4 provided the large majority of the annual budget for NEC, which was located in Iqaluit. It
5 worked to reduce energy use through a public outreach program on energy
6 management, efficiency, conservation, and technology deployment; NEC also provided
7 data collection, analysis, and reporting and information service on energy use.
8 Programs that QEC engaged in through NEC include the following:
9  Energy Audit for Home Owners: Two NEC staff received training to become
10 Energy Advisors and obtained certification to conduct home energy evaluations.
11 NEC staff performed numerous evaluations throughout Nunavut for homeowners
12 interested in improving the energy efficiency of their homes. Once completed,
13 these evaluations allowed homeowners the opportunity to access Federal rebate
14 programs. Also, in 2009, the NEC delivered an Energy Advisors Workshop where
15 four participants received the training required to become certified Energy
16 Advisors.
17  Public Information Campaign: A broad Public Information Campaign was
18 delivered throughout Nunavut with both general and specific information on
19 energy use and conservation. It included advertising through the media,
20 community consultations and brochure distribution. A great deal of effort was
21 made to ensure all information was translated and delivered in the official
22 Nunavut languages.

1  Community Energy Profile Development: NEC developed and distributed
2 energy profiles to all 25 Nunavut communities. A Community Energy Profile
3 shows how a community uses energy for a certain year. It describes: the different
4 fuels a community uses to produce energy; how much money a community
5 spends on energy; how much greenhouse gases each fuel produces; how much
6 energy a community uses in homes, other community buildings, and for transport
7 within the community; and some basic ideas a community can explore to use
8 less energy, produce less greenhouse gases, and save money. An Energy
9 Profile is a useful tool for communities to engage in community energy planning.
10 NEC drafted a guide for the communities to assist them in developing
11 Community Energy Plans.
12 In 2009, the Government of Nunavut mandated a collective approach to a more cost
13 effective delivery of energy conservation programs and services. Within the context of
14 this work, the Nunavut Energy Centre would no longer be a part of QEC. Decisions
15 were made to close NEC and their responsibilities be transferred to the Government of
16 Nunavut - Energy Secretariat. QEC continues to assist in the transfer of knowledge and
17 resources to the GN Energy Secretariat and has a representative participating on the
18 GN Interdepartmental Energy Working Group.
19 1.5 RATE PROPOSAL SUMMARY
20 Schedules 1.1.1 through 1.1.5 provide a summary of the proposed base energy rate
21 changes. The Corporation has calculated these rate changes to recover the revenue
22 requirement described in Chapter 3 and the shortfall described in Chapter 4. QEC is
23 proposing to apply the required rate increase on an equal percentage basis to the

1 energy rate in all communities and customers classes. QEC is not proposing changes to
2 the demand charges or customer charges.
3 The proof or revenue at proposed base rates is provided in Schedules 1.2.1 through
4 1.2.3.
5 With respect to interim rates, QEC is proposing at this time to implement 50% of the
6 proposed base rate changes on an interim and refundable basis. The resulting
7 proposed interim rates are summarised in Schedules 1.3.1 through 1.3.5.

1 Schedule 1.1.1
2 Qulliq Energy Corporation 2010/11 General Rate Application
3 Base Rate Change – Domestic Non-Government
4
Domestic - Non-Government
Existing rates Proposed Rates Increase
Total
Total existing
Plant No. Plant Name Base rate Fuel rider Base rate Fuel rider proposed
rates (cent/KWh) (%)
rates
(cent/KWh) (cent/KWh) (cent/KWh) (cent/KWh) (cent/KWh) (cent/KWh)
A B C D E F G H
A+B D+E F-C G/C
501 Cambridge Bay 51.78 4.68 56.46 67.38 0.00 67.38 10.92 19.3%
502 Gjoa Haven 62.30 4.68 66.98 79.94 0.00 79.94 12.96 19.3%
503 Taloyoak 69.30 4.68 73.98 88.29 0.00 88.29 14.31 19.3%
504 Kugaaruk 81.72 4.68 86.40 103.11 0.00 103.11 16.71 19.3%
505 Kugluktuk 65.34 4.68 70.02 83.57 0.00 83.57 13.55 19.3%
601 Rankin Inlet 40.91 4.68 45.59 54.41 0.00 54.41 8.82 19.3%
602 Baker Lake 47.26 4.68 51.94 61.99 0.00 61.99 10.05 19.3%
603 Arviat 54.20 4.68 58.88 70.27 0.00 70.27 11.39 19.3%
604 Coral Harbour 66.39 4.68 71.07 84.82 0.00 84.82 13.75 19.3%
605 Chesterfield Inlet 68.65 4.68 73.33 87.52 0.00 87.52 14.19 19.3%
606 Whale Cove 63.06 4.68 67.74 80.84 0.00 80.84 13.10 19.3%
607 Repulse Bay 58.85 4.68 63.53 75.82 0.00 75.82 12.29 19.3%
701 Iqaluit 39.39 4.68 44.07 52.60 0.00 52.60 8.53 19.3%
702 Pangnirtung 43.67 4.68 48.35 57.70 0.00 57.70 9.35 19.3%
703 Cape Dorset 45.91 4.68 50.59 60.38 0.00 60.38 9.79 19.3%
704 Resolute Bay 71.65 4.68 76.33 91.10 0.00 91.10 14.77 19.3%
705 Pond Inlet 62.69 4.68 67.37 80.40 0.00 80.40 13.03 19.3%
706 Igloolik 41.70 4.68 46.38 55.35 0.00 55.35 8.97 19.3%
707 Hall Beach 61.97 4.68 66.65 79.54 0.00 79.54 12.89 19.3%
708 Qikiqtarjuaq 53.24 4.68 57.92 69.13 0.00 69.13 11.21 19.3%
709 Kimmirut 73.52 4.68 78.20 93.33 0.00 93.33 15.13 19.3%
710 Arctic Bay 61.06 4.68 65.74 78.46 0.00 78.46 12.72 19.3%
711 Clyde River 53.45 4.68 58.13 69.38 0.00 69.38 11.25 19.3%
712 Grise Fiord 64.37 4.68 69.05 82.41 0.00 82.41 13.36 19.3%
5 713 Sanikiluaq 56.64 4.68 61.32 73.18 0.00 73.18 11.86 19.3%
6

1 Schedule 1.1.2
3 Base Rate Change – Domestic Government
4
Domestic - Government
Total
Total existing
rates
A B C D E F G H
A+B D+E F-C G/C
501 Cambridge Bay 51.78 4.68 56.46 67.38 0.00 67.38 10.92 19.3%
502 Gjoa Haven 64.52 4.68 69.20 82.59 0.00 82.59 13.39 19.3%
503 Taloyoak 75.66 4.68 80.34 95.88 0.00 95.88 15.54 19.3%
504 Kugaaruk 81.72 4.68 86.40 103.11 0.00 103.11 16.71 19.3%
505 Kugluktuk 69.55 4.68 74.23 88.59 0.00 88.59 14.36 19.3%
601 Rankin Inlet 40.91 4.68 45.59 54.41 0.00 54.41 8.82 19.3%
602 Baker Lake 47.26 4.68 51.94 61.99 0.00 61.99 10.05 19.3%
603 Arviat 54.20 4.68 58.88 70.27 0.00 70.27 11.39 19.3%
604 Coral Harbour 66.39 4.68 71.07 84.82 0.00 84.82 13.75 19.3%
606 Whale Cove 105.78 4.68 110.46 131.83 0.00 131.83 21.37 19.3%
607 Repulse Bay 58.85 4.68 63.53 75.82 0.00 75.82 12.29 19.3%
701 Iqaluit 39.39 4.68 44.07 52.60 0.00 52.60 8.53 19.3%
702 Pangnirtung 47.12 4.68 51.80 61.82 0.00 61.82 10.02 19.3%
703 Cape Dorset 48.49 4.68 53.17 63.46 0.00 63.46 10.29 19.3%
704 Resolute Bay 73.06 4.68 77.74 92.78 0.00 92.78 15.04 19.3%
705 Pond Inlet 68.46 4.68 73.14 87.29 0.00 87.29 14.15 19.3%
706 Igloolik 41.70 4.68 46.38 55.35 0.00 55.35 8.97 19.3%
707 Hall Beach 64.56 4.68 69.24 82.63 0.00 82.63 13.39 19.3%
708 Qikiqtarjuaq 61.72 4.68 66.40 79.25 0.00 79.25 12.85 19.3%
709 Kimmirut 73.35 4.68 78.03 93.13 0.00 93.13 15.10 19.3%
710 Arctic Bay 61.06 4.68 65.74 78.46 0.00 78.46 12.72 19.3%
711 Clyde River 53.83 4.68 58.51 69.83 0.00 69.83 11.32 19.3%
712 Grise Fiord 79.07 4.68 83.75 99.95 0.00 99.95 16.20 19.3%
5 713 Sanikiluaq 56.64 4.68 61.32 73.18 0.00 73.18 11.86 19.3%
6

1 Schedule 1.1.3
3 Base Rate Change – Commercial Non-Government
4
Commercial - Non-Government
Total
Total existing
rates
A B C D E F G H
A+B D+E F-C G/C
501 Cambridge Bay 43.93 4.68 48.61 58.01 0.00 58.01 9.40 19.3%
502 Gjoa Haven 59.56 4.68 64.24 76.67 0.00 76.67 12.43 19.3%
503 Taloyoak 68.06 4.68 72.74 86.81 0.00 86.81 14.07 19.3%
504 Kugaaruk 71.98 4.68 76.66 91.49 0.00 91.49 14.83 19.3%
505 Kugluktuk 60.53 4.68 65.21 77.83 0.00 77.83 12.62 19.3%
601 Rankin Inlet 35.27 4.68 39.95 47.68 0.00 47.68 7.73 19.3%
602 Baker Lake 43.95 4.68 48.63 58.04 0.00 58.04 9.41 19.3%
603 Arviat 50.18 4.68 54.86 65.47 0.00 65.47 10.61 19.3%
604 Coral Harbour 60.46 4.68 65.14 77.74 0.00 77.74 12.60 19.3%
606 Whale Cove 79.37 4.68 84.05 100.31 0.00 100.31 16.26 19.3%
607 Repulse Bay 51.18 4.68 55.86 66.67 0.00 66.67 10.81 19.3%
701 Iqaluit 31.84 4.68 36.52 43.59 0.00 43.59 7.07 19.3%
702 Pangnirtung 38.11 4.68 42.79 51.07 0.00 51.07 8.28 19.3%
703 Cape Dorset 42.68 4.68 47.36 56.52 0.00 56.52 9.16 19.3%
704 Resolute Bay 68.08 4.68 72.76 86.84 0.00 86.84 14.08 19.3%
705 Pond Inlet 57.14 4.68 61.82 73.78 0.00 73.78 11.96 19.3%
706 Igloolik 37.87 4.68 42.55 50.78 0.00 50.78 8.23 19.3%
707 Hall Beach 59.52 4.68 64.20 76.62 0.00 76.62 12.42 19.3%
708 Qikiqtarjuaq 50.21 4.68 54.89 65.51 0.00 65.51 10.62 19.3%
709 Kimmirut 60.92 4.68 65.60 78.29 0.00 78.29 12.69 19.3%
710 Arctic Bay 54.07 4.68 58.75 70.12 0.00 70.12 11.37 19.3%
711 Clyde River 46.75 4.68 51.43 61.38 0.00 61.38 9.95 19.3%
712 Grise Fiord 75.24 4.68 79.92 95.38 0.00 95.38 15.46 19.3%
5 713 Sanikiluaq 54.10 4.68 58.78 70.15 0.00 70.15 11.37 19.3%
6
7

1 Schedule 1.1.4
3 Base Rate Change – Commercial Government
4
Commercial - Government
Total
Total existing
rates
A B C D E F G H
A+B D+E F-C G/C
501 Cambridge Bay 43.93 4.68 48.61 58.01 0.00 58.01 9.40 19.3%
502 Gjoa Haven 59.56 4.68 64.24 76.67 0.00 76.67 12.43 19.3%
503 Taloyoak 68.06 4.68 72.74 86.81 0.00 86.81 14.07 19.3%
504 Kugaaruk 71.98 4.68 76.66 91.49 0.00 91.49 14.83 19.3%
505 Kugluktuk 60.53 4.68 65.21 77.83 0.00 77.83 12.62 19.3%
601 Rankin Inlet 39.67 4.68 44.35 52.93 0.00 52.93 8.58 19.3%
602 Baker Lake 43.95 4.68 48.63 58.04 0.00 58.04 9.41 19.3%
603 Arviat 50.18 4.68 54.86 65.47 0.00 65.47 10.61 19.3%
604 Coral Harbour 60.46 4.68 65.14 77.74 0.00 77.74 12.60 19.3%
606 Whale Cove 88.43 4.68 93.11 111.12 0.00 111.12 18.01 19.3%
607 Repulse Bay 51.18 4.68 55.86 66.67 0.00 66.67 10.81 19.3%
701 Iqaluit 32.91 4.68 37.59 44.86 0.00 44.86 7.27 19.3%
702 Pangnirtung 42.51 4.68 47.19 56.32 0.00 56.32 9.13 19.3%
703 Cape Dorset 48.49 4.68 53.17 63.46 0.00 63.46 10.29 19.3%
704 Resolute Bay 68.08 4.68 72.76 86.84 0.00 86.84 14.08 19.3%
705 Pond Inlet 57.14 4.68 61.82 73.78 0.00 73.78 11.96 19.3%
706 Igloolik 37.87 4.68 42.55 50.78 0.00 50.78 8.23 19.3%
707 Hall Beach 59.52 4.68 64.20 76.62 0.00 76.62 12.42 19.3%
708 Qikiqtarjuaq 61.72 4.68 66.40 79.25 0.00 79.25 12.85 19.3%
709 Kimmirut 61.26 4.68 65.94 78.70 0.00 78.70 12.76 19.3%
710 Arctic Bay 54.07 4.68 58.75 70.12 0.00 70.12 11.37 19.3%
711 Clyde River 46.75 4.68 51.43 61.38 0.00 61.38 9.95 19.3%
712 Grise Fiord 75.24 4.68 79.92 95.38 0.00 95.38 15.46 19.3%
5 713 Sanikiluaq 54.10 4.68 58.78 70.15 0.00 70.15 11.37 19.3%
6
7

1 Schedule 1.1.5
3 Base Rate Change - Streetlights
4
Streetlights ($/month)
HPS 100 watt (30 watt Ballast) MV 175 watt (30 watt Ballast) MV 250 watt (35 watt ballast) HP 250 watt (44 watt ballast) MV 400 watt ( 55 watt ballast)
Increase Increase Increase Increase Increase
Existing Proposed Existing Proposed Existing Proposed Existing Proposed Existing Proposed
Plant No. Plant Name (%) (%) (%) (%) (%)
A B C D E F G H I J K L M N O
B/A E/D H/G K/J N/M
501 Cambridge Bay 30.79 36.75 19.3% 30.79 36.75 19.3% 38.16 45.54 19.3% 50.40 60.15 19.3% 50.40 60.15 19.3%
502 Gjoa Haven 34.07 40.66 19.3% 34.07 40.66 19.3% 42.19 50.35 19.3% 55.71 66.49 19.3% 55.71 66.49 19.3%
503 Taloyoak 46.50 55.50 19.3% 46.50 55.50 19.3% 57.59 68.73 19.3% 76.06 90.77 19.3% 76.06 90.77 19.3%
504 Kugaaruk 38.37 45.79 19.3% 38.37 45.79 19.3% 47.51 56.70 19.3% 62.76 74.90 19.3% 62.76 74.90 19.3%
505 Kugluktuk 48.59 57.99 19.3% 48.59 57.99 19.3% 60.21 71.86 19.3% 79.51 94.89 19.3% 79.51 94.89 19.3%
601 Rankin Inlet 28.51 34.03 19.3% 28.51 34.03 19.3% 35.32 42.15 19.3% 46.65 55.67 19.3% 46.65 55.67 19.3%
602 Baker Lake 28.75 34.31 19.3% 28.75 34.31 19.3% 35.63 42.52 19.3% 47.04 56.14 19.3% 47.04 56.14 19.3%
603 Arviat 25.20 30.08 19.3% 25.20 30.08 19.3% 31.21 37.25 19.3% 41.23 49.21 19.3% 41.23 49.21 19.3%
604 Coral Harbour 45.81 54.67 19.3% 45.81 54.67 19.3% 56.76 67.74 19.3% 74.96 89.46 19.3% 74.96 89.46 19.3%
605 Chesterfield Inlet 47.46 56.64 19.3% 47.46 56.64 19.3% 58.82 70.20 19.3% 77.68 92.71 19.3% 77.68 92.71 19.3%
606 Whale Cove 52.06 62.13 19.3% 52.06 62.13 19.3% 64.49 76.97 19.3% 85.18 101.66 19.3% 85.18 101.66 19.3%
607 Repulse Bay 39.63 47.30 19.3% 39.63 47.30 19.3% 49.09 58.59 19.3% 64.84 77.38 19.3% 64.84 77.38 19.3%
701 Iqaluit 27.61 32.95 19.3% 27.61 32.95 19.3% 34.21 40.83 19.3% 45.18 53.92 19.3% 45.18 53.92 19.3%
702 Pangnirtung 26.06 31.10 19.3% 26.06 31.10 19.3% 32.30 38.55 19.3% 42.64 50.89 19.3% 42.64 50.89 19.3%
703 Cape Dorset 34.17 40.78 19.3% 34.17 40.78 19.3% 42.33 50.52 19.3% 55.87 66.68 19.3% 55.87 66.68 19.3%
704 Resolute Bay 67.00 79.96 19.3% 67.00 79.96 19.3% 83.01 99.07 19.3% 109.62 130.83 19.3% 109.62 130.83 19.3%
705 Pond Inlet 49.22 58.74 19.3% 49.22 58.74 19.3% 60.97 72.77 19.3% 80.52 96.10 19.3% 80.52 96.10 19.3%
706 Igloolik 34.40 41.05 19.3% 34.40 41.05 19.3% 42.61 50.85 19.3% 56.28 67.17 19.3% 56.28 67.17 19.3%
707 Hall Beach 46.89 55.96 19.3% 46.89 55.96 19.3% 58.10 69.34 19.3% 76.70 91.54 19.3% 76.70 91.54 19.3%
708 Qikiqtarjuaq 39.21 46.80 19.3% 39.21 46.80 19.3% 48.57 57.97 19.3% 64.15 76.56 19.3% 64.15 76.56 19.3%
709 Kimmirut 50.25 59.97 19.3% 50.25 59.97 19.3% 62.25 74.29 19.3% 82.21 98.11 19.3% 82.21 98.11 19.3%
710 Arctic Bay 39.43 47.06 19.3% 39.43 47.06 19.3% 48.85 58.30 19.3% 64.52 77.00 19.3% 64.52 77.00 19.3%
711 Clyde River 46.18 55.11 19.3% 46.18 55.11 19.3% 57.22 68.29 19.3% 75.55 90.17 19.3% 75.55 90.17 19.3%
712 Grise Fiord 56.21 67.08 19.3% 56.21 67.08 19.3% 69.64 83.11 19.3% 91.95 109.74 19.3% 91.95 109.74 19.3%
5 713 Saniqiluaq 39.66 47.33 19.3% 39.66 47.33 19.3% 49.15 58.66 19.3% 64.91 77.47 19.3% 64.91 77.47 19.3%
6
7
8
9
10
11
12

1 Schedule 1.2.1
3 Proof of Revenue: Forecast Electricity Sales (MWh)
4
By Rate Class
Plant Domestic Commercial Streetlights Total Sales

Plant Name
No. Non- Non-
Government Total Government Total
Government Government
A B C=A+B D E F=D+E G H=C+F+G
501 Cambridge Bay 1,703 1,507 3,210 2,661 2,794 5,455 118 8,783
502 Gjoa Haven 522 1,291 1,813 806 1,196 2,002 77 3,892
503 Taloyoak 303 1,071 1,374 603 816 1,419 56 2,849
504 Kugaaruk 337 670 1,007 484 744 1,228 31 2,266
505 Kugluktuk 934 1,381 2,315 1,014 1,653 2,667 65 5,047
601 Rankin Inlet 3,163 2,069 5,233 4,227 4,842 9,069 150 14,451
602 Baker Lake 1,232 1,911 3,143 1,696 2,234 3,930 115 7,189
603 Arviat 1,498 1,810 3,308 1,890 2,411 4,301 97 7,705
604 Coral Harbour 485 771 1,256 708 909 1,616 54 2,926
605 Chesterfield Inlet 198 399 597 607 511 1,119 28 1,744
606 Whale Cove 174 386 560 354 494 848 34 1,442
607 Repulse Bay 314 920 1,234 792 672 1,465 32 2,731
701 Iqaluit 12,582 4,805 17,387 21,919 13,408 35,327 424 53,138
702 Pangnirtung 883 1,751 2,634 1,636 1,809 3,445 148 6,227
703 Cape Dorset 702 1,564 2,265 1,088 1,720 2,808 79 5,153
704 Resolute Bay 351 336 687 942 1,431 2,373 40 3,101
705 Pond Inlet 799 1,540 2,339 1,182 1,812 2,994 114 5,447
706 Igloolik 846 1,596 2,442 1,078 1,846 2,924 98 5,464
707 Hall Beach 262 860 1,123 546 759 1,305 42 2,469
708 Qikiqtarjuaq 268 671 939 565 611 1,176 32 2,147
709 Kimmirut 272 503 775 504 582 1,086 35 1,896
710 Arctic Bay 478 896 1,375 545 637 1,183 34 2,591
711 Clyde River 403 1,058 1,461 606 820 1,426 26 2,913
712 Grise Fiord 145 173 318 220 419 639 23 980
713 Sanikiluaq 260 1,038 1,297 281 1,122 1,402 34 2,733
5 Total 29,114 30,977 60,091 46,954 46,253 93,208 1,985 155,283

1 Schedule 1.2.2
3 Proof of Revenue: Proposed Base Rates (cents/kWh)
4
Domestic Commercial Streetlights ($ per month per bulb)
HPS 100 watt MV 175 watt MV 250 watt HP 250 watt MV 400 watt (
Plant Non- Non-
Plant Name Government Government (30 watt (30 watt (35 watt (44 watt 55 watt
No. Government Government
Ballast) Ballast) ballast) ballast) ballast)
A B C D E F G H I
501 Cambridge Bay 67.38 67.38 58.01 58.01 36.75 36.75 45.54 60.15 60.15
502 Gjoa Haven 79.94 82.59 76.67 76.67 40.66 40.66 50.35 66.49 66.49
503 Taloyoak 88.29 95.88 86.81 86.81 55.50 55.50 68.73 90.77 90.77
504 Kugaaruk 103.11 103.11 91.49 91.49 45.79 45.79 56.70 74.90 74.90
505 Kugluktuk 83.57 88.59 77.83 77.83 57.99 57.99 71.86 94.89 94.89
601 Rankin Inlet 54.41 54.41 47.68 52.93 34.03 34.03 42.15 55.67 55.67
602 Baker Lake 61.99 61.99 58.04 58.04 34.31 34.31 42.52 56.14 56.14
603 Arviat 70.27 70.27 65.47 65.47 30.08 30.08 37.25 49.21 49.21
604 Coral Harbour 84.82 84.82 77.74 77.74 54.67 54.67 67.74 89.46 89.46
605 Chesterfield Inlet 87.52 87.52 81.53 81.53 56.64 56.64 70.20 92.71 92.71
606 Whale Cove 80.84 131.83 100.31 111.12 62.13 62.13 76.97 101.66 101.66
607 Repulse Bay 75.82 75.82 66.67 66.67 47.30 47.30 58.59 77.38 77.38
701 Iqaluit 52.60 52.60 43.59 44.86 32.95 32.95 40.83 53.92 53.92
702 Pangnirtung 57.70 61.82 51.07 56.32 31.10 31.10 38.55 50.89 50.89
703 Cape Dorset 60.38 63.46 56.52 63.46 40.78 40.78 50.52 66.68 66.68
704 Resolute Bay 91.10 92.78 86.84 86.84 79.96 79.96 99.07 130.83 130.83
705 Pond Inlet 80.40 87.29 73.78 73.78 58.74 58.74 72.77 96.10 96.10
706 Igloolik 55.35 55.35 50.78 50.78 41.05 41.05 50.85 67.17 67.17
707 Hall Beach 79.54 82.63 76.62 76.62 55.96 55.96 69.34 91.54 91.54
708 Qikiqtarjuaq 69.13 79.25 65.51 79.25 46.80 46.80 57.97 76.56 76.56
709 Kimmirut 93.33 93.13 78.29 78.70 59.97 59.97 74.29 98.11 98.11
710 Arctic Bay 78.46 78.46 70.12 70.12 47.06 47.06 58.30 77.00 77.00
711 Clyde River 69.38 69.83 61.38 61.38 55.11 55.11 68.29 90.17 90.17
712 Grise Fiord 82.41 99.95 95.38 95.38 67.08 67.08 83.11 109.74 109.74
5 713 Sanikiluaq 73.18 73.18 70.15 70.15 47.33 47.33 58.66 77.47 77.47
6
7
8
9
10

1 Schedule 1.2.3
3 Proof of Revenue: Revenue Forecast from Electricity Sales at Proposed Rates ($000)
4
By Rate Class Customer Charges and Demand Revenue
Domestic Commercial
Plant Customer Demand Total
Plant Name Non- Non- Streetlights Total
No. Government Total Government Total Charges Revenue
Government Government
A B C=A+B D E F=D+E G H I J=H+I K=C+F+G+J
501 Cambridge Bay 1,147 1,016 2,163 1,544 1,621 3,164 84 116 105 222 5,633
502 Gjoa Haven 418 1,066 1,484 618 917 1,535 70 63 43 106 3,194
503 Taloyoak 268 1,026 1,294 523 708 1,232 58 46 47 93 2,676
504 Kugaaruk 347 691 1,038 442 681 1,123 29 38 27 65 2,255
505 Kugluktuk 780 1,223 2,004 789 1,287 2,076 73 91 62 153 4,306
601 Rankin Inlet 1,721 1,126 2,847 2,015 2,563 4,578 104 174 99 273 7,802
602 Baker Lake 764 1,185 1,948 984 1,297 2,281 81 121 80 201 4,511
603 Arviat 1,052 1,272 2,324 1,238 1,578 2,816 71 120 61 181 5,393
604 Coral Harbour 411 654 1,065 550 706 1,257 64 49 37 86 2,471
605 Chesterfield Inlet 174 349 523 495 417 912 33 25 26 51 1,518
606 Whale Cove 141 509 650 355 549 904 45 22 22 44 1,643
607 Repulse Bay 238 697 936 528 448 976 33 39 23 63 2,008
701 Iqaluit 6,618 2,527 9,145 9,553 6,015 15,568 232 594 317 910 25,855
702 Pangnirtung 509 1,083 1,592 836 1,019 1,855 97 96 53 149 3,693
703 Cape Dorset 424 992 1,416 615 1,092 1,707 75 87 52 139 3,336
704 Resolute Bay 320 312 632 818 1,243 2,061 54 21 55 76 2,823
705 Pond Inlet 642 1,344 1,987 872 1,337 2,209 118 80 53 133 4,447
706 Igloolik 468 884 1,352 548 937 1,485 67 87 56 143 3,047
707 Hall Beach 209 711 919 418 581 1,000 43 39 30 69 2,031
708 Qikiqtarjuaq 185 531 717 370 484 855 37 37 35 72 1,679
709 Kimmirut 254 468 723 394 458 853 42 28 25 53 1,671
710 Arctic Bay 375 703 1,078 382 447 829 39 44 29 73 2,019
711 Clyde River 279 739 1,018 372 503 875 34 48 28 76 2,003
712 Grise Fiord 119 173 292 210 400 610 30 12 20 33 965
713 Sanikiluaq 190 760 949 197 787 984 33 45 37 82 2,048
Total 18,055 22,041 40,096 25,668 28,075 53,743 1,644 2,124 1,421 3,544 99,027
2010/11 Revenue Requirement 101,173

Less: 2010/11 Non-electricity Revenue 2,146
2010/11 Firm Rate Revenue Requirement 99,027
5 Shortfall/Surplus at Proposed Rates 0
6
7
8

1 Schedule 1.3.1
3 Proposed Interim Rates – Domestic Non-Government
4
Domestic - Non-Government
Existing rates Proposed Rates Proposed Interim Rates
Proposed interim Proposed Proposed

Total existing Proposed base Proposed increase from existing
Base rate Fuel rider rates (incl. Fuel interim base interim base
Plant No. Plant Name rates rates rates
Rider) rates rates increase
(cent/KWh) (cent/KWh) (cent/KWh) (cent/KWh) (cent/KWh) % (cent/KWh) (cent/KWh) %
A B C=A+B D E=D-C F=E/C G=C+(E*50%) H=G-B I=H/A-100%
501 Cambridge Bay 51.78 4.68 56.46 67.38 10.92 19.3% 61.92 57.24 10.5%
502 Gjoa Haven 62.30 4.68 66.98 79.94 12.96 19.3% 73.46 68.78 10.4%
503 Taloyoak 69.30 4.68 73.98 88.29 14.31 19.3% 81.14 76.46 10.3%
504 Kugaaruk 81.72 4.68 86.40 103.11 16.71 19.3% 94.76 90.08 10.2%
505 Kugluktuk 65.34 4.68 70.02 83.57 13.55 19.3% 76.79 72.11 10.4%
601 Rankin Inlet 40.91 4.68 45.59 54.41 8.82 19.3% 50.00 45.32 10.8%
602 Baker Lake 47.26 4.68 51.94 61.99 10.05 19.3% 56.96 52.28 10.6%
603 Arviat 54.20 4.68 58.88 70.27 11.39 19.3% 64.58 59.90 10.5%
604 Coral Harbour 66.39 4.68 71.07 84.82 13.75 19.3% 77.94 73.26 10.4%
605 Chesterfield Inlet 68.65 4.68 73.33 87.52 14.19 19.3% 80.42 75.74 10.3%
606 Whale Cove 63.06 4.68 67.74 80.84 13.10 19.3% 74.29 69.61 10.4%
607 Repulse Bay 58.85 4.68 63.53 75.82 12.29 19.3% 69.68 65.00 10.4%
701 Iqaluit 39.39 4.68 44.07 52.60 8.53 19.3% 48.33 43.65 10.8%
702 Pangnirtung 43.67 4.68 48.35 57.70 9.35 19.3% 53.03 48.35 10.7%
703 Cape Dorset 45.91 4.68 50.59 60.38 9.79 19.3% 55.48 50.80 10.7%
704 Resolute Bay 71.65 4.68 76.33 91.10 14.77 19.3% 83.71 79.03 10.3%
705 Pond Inlet 62.69 4.68 67.37 80.40 13.03 19.3% 73.89 69.21 10.4%
706 Igloolik 41.70 4.68 46.38 55.35 8.97 19.3% 50.87 46.19 10.8%
707 Hall Beach 61.97 4.68 66.65 79.54 12.89 19.3% 73.10 68.42 10.4%
708 Qikiqtarjuaq 53.24 4.68 57.92 69.13 11.21 19.3% 63.52 58.84 10.5%
709 Kimmirut 73.52 4.68 78.20 93.33 15.13 19.3% 85.76 81.08 10.3%
710 Arctic Bay 61.06 4.68 65.74 78.46 12.72 19.3% 72.10 67.42 10.4%
711 Clyde River 53.45 4.68 58.13 69.38 11.25 19.3% 63.75 59.07 10.5%
712 Grise Fiord 64.37 4.68 69.05 82.41 13.36 19.3% 75.73 71.05 10.4%
713 Sanikiluaq 56.64 4.68 61.32 73.18 11.86 19.3% 67.25 62.57 10.5%
5
6
7

1 Schedule 1.3.2
3 Proposed Interim Rates – Domestic Government
4
Domestic - Government
Proposed interim Proposed interim

Total existing Proposed base Proposed increase from existing Proposed interim
Base rate Fuel rider rates (incl. Fuel base rates
Plant No. Plant Name rates rates rates base rates
Rider) increase
501 Cambridge Bay 51.78 4.68 56.46 67.38 10.92 19.3% 61.92 57.24 10.5%
502 Gjoa Haven 64.52 4.68 69.20 82.59 13.39 19.3% 75.89 71.21 10.4%
503 Taloyoak 75.66 4.68 80.34 95.88 15.54 19.3% 88.11 83.43 10.3%
504 Kugaaruk 81.72 4.68 86.40 103.11 16.71 19.3% 94.76 90.08 10.2%
505 Kugluktuk 69.55 4.68 74.23 88.59 14.36 19.3% 81.41 76.73 10.3%
601 Rankin Inlet 40.91 4.68 45.59 54.41 8.82 19.3% 50.00 45.32 10.8%
602 Baker Lake 47.26 4.68 51.94 61.99 10.05 19.3% 56.96 52.28 10.6%
603 Arviat 54.20 4.68 58.88 70.27 11.39 19.3% 64.58 59.90 10.5%
604 Coral Harbour 66.39 4.68 71.07 84.82 13.75 19.3% 77.94 73.26 10.4%
606 Whale Cove 105.78 4.68 110.46 131.83 21.37 19.3% 121.14 116.46 10.1%
607 Repulse Bay 58.85 4.68 63.53 75.82 12.29 19.3% 69.68 65.00 10.4%
701 Iqaluit 39.39 4.68 44.07 52.60 8.53 19.3% 48.33 43.65 10.8%
702 Pangnirtung 47.12 4.68 51.80 61.82 10.02 19.3% 56.81 52.13 10.6%
703 Cape Dorset 48.49 4.68 53.17 63.46 10.29 19.3% 58.31 53.63 10.6%
704 Resolute Bay 73.06 4.68 77.74 92.78 15.04 19.3% 85.26 80.58 10.3%
705 Pond Inlet 68.46 4.68 73.14 87.29 14.15 19.3% 80.21 75.53 10.3%
706 Igloolik 41.70 4.68 46.38 55.35 8.97 19.3% 50.87 46.19 10.8%
707 Hall Beach 64.56 4.68 69.24 82.63 13.39 19.3% 75.94 71.26 10.4%
708 Qikiqtarjuaq 61.72 4.68 66.40 79.25 12.85 19.3% 72.82 68.14 10.4%
709 Kimmirut 73.35 4.68 78.03 93.13 15.10 19.3% 85.58 80.90 10.3%
710 Arctic Bay 61.06 4.68 65.74 78.46 12.72 19.3% 72.10 67.42 10.4%
711 Clyde River 53.83 4.68 58.51 69.83 11.32 19.3% 64.17 59.49 10.5%
712 Grise Fiord 79.07 4.68 83.75 99.95 16.20 19.3% 91.85 87.17 10.2%
713 Sanikiluaq 56.64 4.68 61.32 73.18 11.86 19.3% 67.25 62.57 10.5%
5
6
7

1 Schedule 1.3.3
3 Proposed Interim Rates – Commercial Non-Government
4
Commercial - Non-Government
Proposed interim Proposed Proposed

Total existing Proposed base Proposed increase from existing
Base rate Fuel rider rates (incl. Fuel interim base interim base
Plant No. Plant Name rates rates rates
Rider) rates rates increase
501 Cambridge Bay 43.93 4.68 48.61 58.01 9.40 19.3% 53.31 48.63 10.7%
502 Gjoa Haven 59.56 4.68 64.24 76.67 12.43 19.3% 70.45 65.77 10.4%
503 Taloyoak 68.06 4.68 72.74 86.81 14.07 19.3% 79.78 75.10 10.3%
504 Kugaaruk 71.98 4.68 76.66 91.49 14.83 19.3% 84.08 79.40 10.3%
505 Kugluktuk 60.53 4.68 65.21 77.83 12.62 19.3% 71.52 66.84 10.4%
601 Rankin Inlet 35.27 4.68 39.95 47.68 7.73 19.3% 43.81 39.13 11.0%
602 Baker Lake 43.95 4.68 48.63 58.04 9.41 19.3% 53.33 48.65 10.7%
603 Arviat 50.18 4.68 54.86 65.47 10.61 19.3% 60.17 55.49 10.6%
604 Coral Harbour 60.46 4.68 65.14 77.74 12.60 19.3% 71.44 66.76 10.4%
606 Whale Cove 79.37 4.68 84.05 100.31 16.26 19.3% 92.18 87.50 10.2%
607 Repulse Bay 51.18 4.68 55.86 66.67 10.81 19.3% 61.26 56.58 10.6%
701 Iqaluit 31.84 4.68 36.52 43.59 7.07 19.3% 40.05 35.37 11.1%
702 Pangnirtung 38.11 4.68 42.79 51.07 8.28 19.3% 46.93 42.25 10.9%
703 Cape Dorset 42.68 4.68 47.36 56.52 9.16 19.3% 51.94 47.26 10.7%
704 Resolute Bay 68.08 4.68 72.76 86.84 14.08 19.3% 79.80 75.12 10.3%
705 Pond Inlet 57.14 4.68 61.82 73.78 11.96 19.3% 67.80 63.12 10.5%
706 Igloolik 37.87 4.68 42.55 50.78 8.23 19.3% 46.67 41.99 10.9%
707 Hall Beach 59.52 4.68 64.20 76.62 12.42 19.3% 70.41 65.73 10.4%
708 Qikiqtarjuaq 50.21 4.68 54.89 65.51 10.62 19.3% 60.20 55.52 10.6%
709 Kimmirut 60.92 4.68 65.60 78.29 12.69 19.3% 71.95 67.27 10.4%
710 Arctic Bay 54.07 4.68 58.75 70.12 11.37 19.3% 64.43 59.75 10.5%
711 Clyde River 46.75 4.68 51.43 61.38 9.95 19.3% 56.40 51.72 10.6%
712 Grise Fiord 75.24 4.68 79.92 95.38 15.46 19.3% 87.65 82.97 10.3%
713 Sanikiluaq 54.10 4.68 58.78 70.15 11.37 19.3% 64.47 59.79 10.5%
5
6
7
8

1 Schedule 1.3.4
3 Proposed Interim Rates – Commercial Government
4
Commercial - Government
Proposed interim Proposed interim

Total existing Proposed base Proposed increase from existing Proposed interim
Base rate Fuel rider rates (incl. Fuel base rates
Plant No. Plant Name rates rates rates base rates
Rider) increase
501 Cambridge Bay 43.93 4.68 48.61 58.01 9.40 19.3% 53.31 48.63 10.7%
502 Gjoa Haven 59.56 4.68 64.24 76.67 12.43 19.3% 70.45 65.77 10.4%
503 Taloyoak 68.06 4.68 72.74 86.81 14.07 19.3% 79.78 75.10 10.3%
504 Kugaaruk 71.98 4.68 76.66 91.49 14.83 19.3% 84.08 79.40 10.3%
505 Kugluktuk 60.53 4.68 65.21 77.83 12.62 19.3% 71.52 66.84 10.4%
601 Rankin Inlet 39.67 4.68 44.35 52.93 8.58 19.3% 48.64 43.96 10.8%
602 Baker Lake 43.95 4.68 48.63 58.04 9.41 19.3% 53.33 48.65 10.7%
603 Arviat 50.18 4.68 54.86 65.47 10.61 19.3% 60.17 55.49 10.6%
604 Coral Harbour 60.46 4.68 65.14 77.74 12.60 19.3% 71.44 66.76 10.4%
606 Whale Cove 88.43 4.68 93.11 111.12 18.01 19.3% 102.12 97.44 10.2%
607 Repulse Bay 51.18 4.68 55.86 66.67 10.81 19.3% 61.26 56.58 10.6%
701 Iqaluit 32.91 4.68 37.59 44.86 7.27 19.3% 41.23 36.55 11.0%
702 Pangnirtung 42.51 4.68 47.19 56.32 9.13 19.3% 51.75 47.07 10.7%
703 Cape Dorset 48.49 4.68 53.17 63.46 10.29 19.3% 58.31 53.63 10.6%
704 Resolute Bay 68.08 4.68 72.76 86.84 14.08 19.3% 79.80 75.12 10.3%
705 Pond Inlet 57.14 4.68 61.82 73.78 11.96 19.3% 67.80 63.12 10.5%
706 Igloolik 37.87 4.68 42.55 50.78 8.23 19.3% 46.67 41.99 10.9%
707 Hall Beach 59.52 4.68 64.20 76.62 12.42 19.3% 70.41 65.73 10.4%
708 Qikiqtarjuaq 61.72 4.68 66.40 79.25 12.85 19.3% 72.82 68.14 10.4%
709 Kimmirut 61.26 4.68 65.94 78.70 12.76 19.3% 72.32 67.64 10.4%
710 Arctic Bay 54.07 4.68 58.75 70.12 11.37 19.3% 64.43 59.75 10.5%
711 Clyde River 46.75 4.68 51.43 61.38 9.95 19.3% 56.40 51.72 10.6%
712 Grise Fiord 75.24 4.68 79.92 95.38 15.46 19.3% 87.65 82.97 10.3%
713 Sanikiluaq 54.10 4.68 58.78 70.15 11.37 19.3% 64.47 59.79 10.5%
5
6
7
8

1 Schedule 1.3.5
3 Proposed Interim Rates: Streetlights ($/month)
4
HPS 100 watt (30 watt Ballast) MV 175 watt (30 watt Ballast) MV 250 watt (35 watt ballast) HP 250 watt (44 watt ballast) MV 400 watt ( 55 watt ballast)
Proposed Proposed Proposed Proposed

Existing Increase Existing Proposed Increase Existing Increase Existing Increase Existing Increase
Interim Interim Interim Interim
Plant No. Plant Name Rates (%) Rates Interim Rates (%) Rates (%) Rates (%) Rates (%)
Rates Rates Rates Rates
C=B/A- F=E/D- O=N/M-

A B D E G H I=H/G-100% J K L=K/J-100% M N
100% 100% 100%
501 Cambridge Bay 30.79 33.77 9.7% 30.79 33.77 9.7% 38.16 41.85 9.7% 50.40 55.28 9.7% 50.40 55.28 9.7%
502 Gjoa Haven 34.07 37.37 9.7% 34.07 37.37 9.7% 42.19 46.27 9.7% 55.71 61.10 9.7% 55.71 61.10 9.7%
503 Taloyoak 46.50 51.00 9.7% 46.50 51.00 9.7% 57.59 63.16 9.7% 76.06 83.42 9.7% 76.06 83.42 9.7%
504 Kugaaruk 38.37 42.08 9.7% 38.37 42.08 9.7% 47.51 52.11 9.7% 62.76 68.83 9.7% 62.76 68.83 9.7%
505 Kugluktuk 48.59 53.29 9.7% 48.59 53.29 9.7% 60.21 66.03 9.7% 79.51 87.20 9.7% 79.51 87.20 9.7%
601 Rankin Inlet 28.51 31.27 9.7% 28.51 31.27 9.7% 35.32 38.74 9.7% 46.65 51.16 9.7% 46.65 51.16 9.7%
602 Baker Lake 28.75 31.53 9.7% 28.75 31.53 9.7% 35.63 39.08 9.7% 47.04 51.59 9.7% 47.04 51.59 9.7%
603 Arviat 25.20 27.64 9.7% 25.20 27.64 9.7% 31.21 34.23 9.7% 41.23 45.22 9.7% 41.23 45.22 9.7%
604 Coral Harbour 45.81 50.24 9.7% 45.81 50.24 9.7% 56.76 62.25 9.7% 74.96 82.21 9.7% 74.96 82.21 9.7%
605 Chesterfield Inlet 47.46 52.05 9.7% 47.46 52.05 9.7% 58.82 64.51 9.7% 77.68 85.19 9.7% 77.68 85.19 9.7%
606 Whale Cove 52.06 57.10 9.7% 52.06 57.10 9.7% 64.49 70.73 9.7% 85.18 93.42 9.7% 85.18 93.42 9.7%
607 Repulse Bay 39.63 43.46 9.7% 39.63 43.46 9.7% 49.09 53.84 9.7% 64.84 71.11 9.7% 64.84 71.11 9.7%
701 Iqaluit 27.61 30.28 9.7% 27.61 30.28 9.7% 34.21 37.52 9.7% 45.18 49.55 9.7% 45.18 49.55 9.7%
702 Pangnirtung 26.06 28.58 9.7% 26.06 28.58 9.7% 32.30 35.42 9.7% 42.64 46.76 9.7% 42.64 46.76 9.7%
703 Cape Dorset 34.17 37.48 9.7% 34.17 37.48 9.7% 42.33 46.42 9.7% 55.87 61.27 9.7% 55.87 61.27 9.7%
704 Resolute Bay 67.00 73.48 9.7% 67.00 73.48 9.7% 83.01 91.04 9.7% 109.62 120.22 9.7% 109.62 120.22 9.7%
705 Pond Inlet 49.22 53.98 9.7% 49.22 53.98 9.7% 60.97 66.87 9.7% 80.52 88.31 9.7% 80.52 88.31 9.7%
706 Igloolik 34.40 37.73 9.7% 34.40 37.73 9.7% 42.61 46.73 9.7% 56.28 61.72 9.7% 56.28 61.72 9.7%
707 Hall Beach 46.89 51.43 9.7% 46.89 51.43 9.7% 58.10 63.72 9.7% 76.70 84.12 9.7% 76.70 84.12 9.7%
708 Qikiqtarjuaq 39.21 43.00 9.7% 39.21 43.00 9.7% 48.57 53.27 9.7% 64.15 70.36 9.7% 64.15 70.36 9.7%
709 Kimmirut 50.25 55.11 9.7% 50.25 55.11 9.7% 62.25 68.27 9.7% 82.21 90.16 9.7% 82.21 90.16 9.7%
710 Arctic Bay 39.43 43.24 9.7% 39.43 43.24 9.7% 48.85 53.58 9.7% 64.52 70.76 9.7% 64.52 70.76 9.7%
711 Clyde River 46.18 50.65 9.7% 46.18 50.65 9.7% 57.22 62.75 9.7% 75.55 82.86 9.7% 75.55 82.86 9.7%
712 Grise Fiord 56.21 61.65 9.7% 56.21 61.65 9.7% 69.64 76.38 9.7% 91.95 100.84 9.7% 91.95 100.84 9.7%
5 713 Saniqiluaq 39.66 43.50 9.7% 39.66 43.50 9.7% 49.15 53.90 9.7% 64.91 71.19 9.7% 64.91 71.19 9.7%
6
7

1 2.0 SYSTEM SALES AND GENERATION REQUIREMENTS
2 2.1 INTRODUCTION
3
4 QEC’s 2010/11 Phase I GRA reflects a Revenue Requirement based on the costs to
5 operate the QEC system and to serve the loads expected to arise in the test year.
6 This section sets out specific details on the QEC system, loads, generation
7 requirements and fuel requirements including:
8  System Overview and Comparison of 2004/05 and 2010/11 Forecasts; and
9  Forecast Methods for 2010/11.
10 Schedule 2.1 sets out corporate-wide sales, revenue, losses, generation and fuel
11 requirements for the actual years 2007/08 and 2008/09 as well as forecasts for 2009/10
12 and 2010/11. Community-by-community detail is provided in Appendix A.
13 2.2 SYSTEM OVERVIEW AND COMPARISON OF 2004/05 AND 2010/11 FORECASTS
14 2.2.1 FACILITIES
15 QEC is the sole generator and distributor of power in Nunavut. QEC provides
16 generation and distribution services to retail customers in 25 communities. Currently,
17 QEC has no industrial or wholesale customers. All 25 communities are supplied by
18 diesel generation.
19 2.2.2 SYSTEM TRENDS SINCE THE PREVIOUS GRA
20 Since the 2004/2005 GRA, the system has experienced a number of changes in loads
21 and generation.
Chapter 2: System Sales and Generation Requirements Page 2-1

1 Sales
2 Total Sales for 2010/2011 compared to the 2004/2005 GRA are shown in Table 2.1.
3 Table 2.1
4 System Sales – 2004/05 GRA Forecast Compared to 2010/111
5
2004/05 2010/11 Average Annual
GRA Forecast Forecast Growth
Sales by Rate Class (MWh)
Domestic 52,021 60,091 2.4%
Commercial 81,439 93,208 2.3%
Streetlights 1,868 1,985 1.0%
6 Total Sales 135,329 155,283 2.3%
7
8 Total forecast sales for 2010/11 are higher than the 2004/05 GRA forecast with a
9 forecast average annual increase of 2.3%. A substantial portion of this increase is
10 driven by Iqaluit. Domestic sales in Iqaluit in 2010/11 are forecast at a 2,784 MW.h
11 increase over 2004/05 forecasts (34% of the total Corporate-wide domestic sale
12 increase).
13 Other communities having material contribution to domestic sales growth are Arviat
14 (737 MW.h increase over 2004/05 forecasts, or 9% of the total Corporate-wide domestic
15 sale increase) and Cambridge Bay (571 MW.h increase over 2004/05 forecasts, or 7%
16 of the total Corporate-wide domestic sale increase).
17 The high growth in these communities relative to 2004/05 GRA forecast is in line with
18 the growth in population and housing development. Average annual population growth
1
Appendix M of 2004/05 GRA incorrectly shows total streetlight sales at 2,014 MWh due to arithmetical error in the summation of
streetlight sales for Qikiqtaaluk region. Correct summation should be 1,076 MWh for Qikiqtaaluk region and 1,868 MWh for total
Nunavut.

1 in Nunavut from 2005 to 2009 was 1.5%. Average annual population growth was 2% in
2 Iqaluit (27.9% of total population increase in 2009 relative to 2005), 1.9% in Cambridge
3 Bay (6.3% of total change), and 1.3% in Arviat (6.1% of total change).2 In Iqaluit, a new
4 NCC 24-plex building is being constructed with the projected completion date in
5 2010/11. Since 2007, under the Nunavut Housing Trust, the Nunavut Housing
6 Corporation has constructed 735 public housing units across Nunavut. In 2010, in
7 addition to building 285 new houses throughout the territory, the Nunavut Housing
8 Corporation will construct 62 new staff housing units.3
9 Commercial sales in Iqaluit in 2010/11 are forecast at a 4,350 MW.h increase over
10 2004/05 forecasts (37% of the total Corporate-wide commercial sale increase).
11 Commercial sales growth are also driven by Rankin Inlet (1,776 MW.h increase over
12 2004/05 forecasts, or 15% of the total Corporate-wide commercial sale increase) and
13 Pond Inlet (826 MW.h increase over 2004/05 forecasts, or 7% of the total Corporate-
14 wide commercial sale increase).
15 Since 2004/05 GRA, Iqaluit has been experiencing a number of large scale commercial
16 developments, which include Nunavut Arctic College student accommodations,
17 Inuksugait Plaza, Qitiqtani General Hospital, RCMP building, Canadian North Hanger,
18 First Air Hanger Renovation, Nova Hotel and Kamotiq. Building projects like the
19 Nunavut Research Institute included in the Government of Nunavut’s 2010/11 budget
20 are expected to be completed in 2010/11.4 In Rankin Inlet, the Nunavut Trades Training
2
Source: Nunavut Bureau of Statistics http://www.gov.nu.ca/eia/stats/
3
Northern News Services: http://www.nnsl.com/frames/newspapers/2010-03/mar22_10hs.html
4
Government of Nunavut Department of Finance: http://www.finance.gov.nu.ca.

1 Center is projected to be completed in April of 2010 and the Government of Nunavut is
2 financing the development of the Correctional Center and Staff Housing. 5 Similarly, a
3 new hotel was built in Pond Inlet in 2009 and a Community Learning Center
4 Replacement is included in the Government of Nunavut budget for 2009/10 and
5 2010/11.
6 Electricity Revenues at Existing Rates
7 Forecast electricity revenues at existing rates for 2004/05 compared to 2010/11 are
8 shown in Table 2.2. Electricity revenue forecasts at existing rates are higher for 2010/11
9 compared to 2004/05, generally matching the trends in sales (MW.h) increases.
10 Table 2.2
11 Forecast Electricity Revenues at Existing Rates
12 2004/05 GRA Compared to 2010/11
13
Revenue by Rate Class (000$)
Domestic 28,220 32,908 2.6%
Commercial 38,588 42,090 1.5%
Streetlights 1,220 1,284 0.9%
14 Total Sales 68,028 76,282 1.9%
5
Government of Nunavut Department of Finance: http://www.finance.gov.nu.ca.

1 Generation, Losses and Station Service
2 Forecasts for corporate wide generation, line losses and station service are shown in
3 Table 2.3. Forecast total generation on a MWh basis has increased from 2004/05 to
4 2010/11 mirroring sales forecast increases. Line losses and station service have also
5 increased on an absolute basis. However it is important to note that as a percentage of
6 generation, line losses and station service have decreased, reflecting QEC’s improved
7 operational efficiency.
8 Table 2.3
9 Generation, Losses and Station Service -
10 2004/05 GRA forecast compared to 2010/11
11
Generation (MWh) 150,331 171,037 2.2%
Losses (MWh) 9,220 9,726 0.9%

Losses as % of Generation 6.1% 5.7%
Station service (MWh) 5,783 6,028 0.7%
12 Station Service as % of Generation 3.8% 3.5%
13
14 2.2.3 FUEL EFFICIENCY
15 At a Corporate wide level, Schedule 2.1 indicates that the forecast efficiency has
16 increased from 3.65 kW.h/litre in 2004/05 to 3.69 kW.h/litre in 2010/11.
17 2.2.4 NON-ELECTRICITY REVENUES
18 Forecast non-electricity revenues from 2004/05 GRA compared to 2010/11 are shown
19 in Table 2.4.

1 Table 2.4
2 Non-Electrical Revenue -
3 2004/05 GRA Forecast compared to 2010/11
4
Revenue ($000)
Description GRA Forecast1 Forecast Growth
Joint Use 300 340

Miscellaneous Charges 475 1,245
Time and Materials 80 561
Total 855 2,146 16.6%
Note:
1
5 Net of Residual Heat revenue
6
7 In the 2004/05 GRA forecast the Corporation included residual heat revenue in the non-
8 electricity revenue. During the GRA process, the URRC considered electrical customers
9 should not cross subsidize district heating customers and district heating customers
10 should not cross subsidize electrical service customers.6 Following this principle, the
11 forecast 2010/11 non-electricity revenue is prepared exclusive of residual heat revenue.
12 Therefore for comparative purposes, in Table 2.4 the 2004/05 GRA forecast non-
13 electricity revenue is taken net of residual heat revenue.
14 2.3 FORECAST METHODS FOR 2010/11
15 This section provides an overview of the methods used to develop the 2010/11 GRA
16 forecasts.
6
Page 87 of the URRC Final Report to the Minister on the 2004/05 GRA by the QEC.

1 2.3.1 SALES FORECAST
2 QEC used a linear regression model based on weather and trend to prepare its 2010/11
3 load forecast. Preparation of the forecast based on the regression model was
4 considered as an appropriate approach given that the modeling takes into account long-
5 term historical data on weather and consumption to investigate the existing relationship
6 between them and to come up with their robust projection into the near future. The
7 model assumes the following relationship between the load and the demand factors
8 (weather, trend):
9  Electricity sales increase with the colder temperature. In addition, every
10 incremental drop in the temperature has an exponential impact on the increase in
11 sales to appropriately capture the impact of very cold weather on the demand for
12 electricity.
13  Electricity sales also increase with the population growth and technological
14 development. This relationship is captured through using the trend variable as a
15 proxy for the population growth and technological development.
16 Based on the relationship assumed above, the model is specified to have weather,
17 weather squared and trend as explanatory variables for the sales forecast. The
18 following data were used to run the model and estimate the forecast load in 2010/11:
19  Billing data by rate class (domestic and commercial) since 1994 is used for the
20 historical sales. These data were adjusted to account for the billing lag factor. For
21 example, in the first month the customer reading may be low, while the next
22 month it may be high, depending on when the read was taken. To minimize the

1 impact of such outliers on the regression results, the peaks and troughs are
2 adjusted to 15% maximum deviation from the previous year.
3  Monthly Heating Degree Days (HDD) – an indicator of building heating needs – is
4 used as a proxy for the weather data. These data were taken from Environment
5 Canada for each region. Cambridge Bay HDD data is used for Kitikmeot region,
6 Rankin Inlet HDD data is used for Kivalliq region, and Iqaluit HDD data is used
7 for the Baffin region.
8  The model also uses twelve dummy variables that represent each month of the
9 year to capture the cyclical sales factor impact in the model.
10 The model was run for every community. The regression analysis and forecasting
11 methods are illustrated in Appendix E.
12 The resulting regression estimates for each rate class by community are used as the
13 forecast 2010/11 domestic and commercial sales.
14 Streetlight sales are forecast at the actual 2008/09 level with a slight adjustment to
15 reflect increase in the number of streetlights in Chesterfield Inlet, Iqaluit, Pangnirtung
16 and Igloolik (11.9 MWh increase in total).
17 2.3.2 CUSTOMER FORECAST
18 Customer number forecast is prepared separately for domestic and commercial rate
19 classes. The forecasting approach is based on the following method:

1 1. Customer count data for 2009/10 was obtained through the meter read sheets,
2 which are used by the QEC linesmen to identify the current customers who have
3 meters to be read. These meter read sheets contain customer information only
4 for active accounts. They are updated and generated on a monthly basis by
5 inputting the work orders into the billing system.
6 2. The customer count information from the meter read sheets was compared to the
7 actual billing data information from 2008/09 for consistency, as they can be
8 broken down to the same level of detail.
9 The analysis showed a consistent reasonable growth trend within the rate
10 classes between both data files (about 1% for domestic customers and 4% for
11 commercial customers). Comparison of about 2,250 customer accounts between
12 these data files revealed 101 new accounts and 28 missing accounts in the
13 meter read sheets – all other accounts exist in both data files.
14 For this reason, it is considered the meter read sheets data represent a
15 reasonable estimate of the existing customer numbers by the rate class in
16 2009/10.
17 3. The forecast 2010/11 customer numbers is then built off the 2009/10 customer
18 numbers per meter read sheets projected at the rate of forecast increase in sales
19 by community and by rate class.
20 Total forecast 2010/11 customer numbers are 9,833 for domestic class (2% higher than
21 in 2009/10) and 2,960 for commercial class (3% higher than in 2009/10).

1 2.3.3 REVENUE FORECAST RESULTS
2 Energy sales revenue forecast is prepared by multiplying the forecast sales by the rates
3 class by existing base rates. Considering that base rates in Nunavut are set separately
4 for government and non-government customers, the forecast sales were split between
5 government and non-government customers based on the actual sales breakdown from
6 the 2008/09 billing data.
7 Fixed charge revenue forecast is prepared by multiplying the forecast number of
8 customers by rate class by annual customer and demand charges (monthly $18 charge
9 for domestic customers and $40 charge for commercial customers multiplied by 12).
10 Corporate wide sales revenues at existing rates are forecast to grow by 2.5% in
11 2010/11 over 2009/10, reflecting higher overall revenue from both domestic (2%) and
12 commercial sales (3%). This is due primarily to continued growth in sales in Iqaluit and
13 several other communities, as discussed in section 2.1.2.
14 2.3.4 LOSSES AND STATION SERVICE FORECAST
15 Due to metering problems actual line losses for the following communities in some
16 years were showing up as negative or very low numbers: 2006/07 – Taloyoak, Iqaluit,
17 Pangnirtung, 2007/08 Coral Harbour, Chesterfield Inlet, 2008/09 – Arviat, Sanikiluaq. All
18 negative line losses were adjusted by taking previous 5-year actual average of losses
19 as a percentage of sales. Also, Gjoa Haven actual line losses for 2008/09 were capped
20 at previous 5-year actual average (7.2%), as the reported number was too high at 17%.
21 For forecasting purposes, line losses were assumed at the actual 2008/09 level as a
22 percentage of sales by community.

1 There were no issues identified with actual station service data, therefore there were no
2 adjustments to station service numbers. For forecasting purposes, station service
3 numbers are set at the absolute actual 2008/09 level by community.
4 2.3.5 GENERATION
5 Generation forecast were prepared by taking the sum of electricity sales, line losses and
6 station service. For 2010/11 all generation is forecast to be provided by diesel
7 generation.
8 2.3.6 FUEL REQUIREMENTS
9 Schedule 2.2 shows the calculation of the forecast fuel efficiency for 2010/11. The
10 forecast efficiency is calculated by taking the actual efficiency for the 3 most recent
11 actual years (2006/07, 2007/08 and 2008/09) and calculating a weighted average. The
12 year with the highest efficiency is given a weighting of 3, the second highest year a
13 weighting of 2 and the lowest efficiency year a weighting of 1. The volume of fuel
14 required in each community was forecast by taking the forecast generation and dividing
15 it by the forecast fuel efficiency.
16 2.3.7 NON-ELECTRICITY REVENUE FORECAST
17 Forecast non-electricity revenue is prepared by three categories – Joint Use,
18 Miscellaneous Charges, and Project Time and Materials. Forecast Joint Use and
19 Miscellaneous Charges are based on average actual revenue for the 3 most recent
20 years (actual 2007/08, 2008/09 and forecast 2009/10). Material increase in
21 Miscellaneous Charges relative to the 2004/05 GRA forecast is due to Arrears Interest
22 & Adjustments, forecasted at $850,000 in 2010/11.

1 Project Time and Materials include forecast revenue in 2010/11 from the work done by
2 QEC for other companies, equipment rental as well as recovery of time and materials
3 on small scale repair works (broken pole replacements, lighting installations, etc.).

1 Schedule 2.1
3 Summary of Generation, Sales and Revenue
4
QEC Summary
2009/10 2010/11 2010/11

Line 2004/05 2007/08 2008/09 Forecast @ Forecast @ Forecast @
no. Description GRA Forecast Actual Actual Existing Rates Existing Rates Proposed Rates
SALES AND REVENUE
Domestic
1 Sales (MWh) 52,021 56,736 57,096 58,897 60,091 60,091
2 Customers 9,840 9,163 9,554 9,639 9,833 9,833
3 Av. MWh Sales/Cust. 5.29 6.19 5.98 6.11 6.11 6.11
4 Revenue (000s) 28,220 30,844 31,215 32,282 32,908 42,219
5 Cents/kWh 54.25 54.36 54.67 54.81 54.76 70.26
Commercial
6 Sales (MWh) 81,439 83,210 86,328 90,429 93,208 93,208
7 Customers 2,935 2,674 2,756 2,875 2,960 2,960
8 Av. MWh Sales/Cust. 27.75 31.12 31.32 31.45 31.49 31.49
9 Revenue (000s) 38,588 39,772 40,762 40,868 42,090 55,164
10 Cents /kWh 47.38 47.80 47.22 45.19 45.16 59.18
Streetlights
11 Sales (MWh) 1,868 1,966 1,973 1,985 1,985 1,985
12 Revenue (000s) 1,220 1,271 1,272 1,271 1,284 1,644
13 Cents /kWh 65.29 64.65 64.49 64.06 64.71 82.82
Total
14 Sales (MWh) 135,329 141,913 145,397 151,311 155,283 155,283
15 Customers 12,775 11,836 12,310 12,514 12,792 12,792
16 Revenue (000s) 68,028 71,887 73,250 74,422 76,282 99,027
17 Cents /kWh 50.27 50.66 50.38 49.18 49.12 63.77
GENERATION (MWh)
18 Total Station Service 5,783 5,972 6,028 6,028 6,028 6,028
19 Total Losses 9,220 9,481 9,101 9,477 9,726 9,726
20 Losses - % of Gen. 6.1% 6.0% 5.7% 5.7% 5.7% 5.7%
21 Total Generation 150,331 157,366 160,526 166,815 171,037 171,037
Source
22 Diesel Generation (MWh) 150,331 157,366 160,526 166,815 171,037 171,037
23 Diesel Efficiency (KWh/L) 3.65 3.63 3.63 3.69 3.69 3.69
24 Liters (000s) 41,238 43,401 44,287 45,275 46,415 46,415
Peak
25 Peak Load (KW) 28,792 29,473 30,140 31,264 32,046 32,046
5 26 Load Factor 60% 61% 61% 61% 61% 61%
6
7
8
9
10
11
12
13
14
15

1 Schedule 2.2
3 Fuel Efficiency Forecast for 2009/10 and 2010/11
Line 2006/07 2007/08 2008/09 Weighted Fuel Efficiency Weighted
Fuel Fuel Fuel Fuel Fuel Fuel Average Fuel
PLANT # PLANT NAME Generation Generation Generation
consump. Efficiency consump. Efficiency consump. Efficiency Efficiency
(KWh) (KWh) (KWh)
No. (Litre) (kWh/L) (Litre) (kWh/L) (Litre) (kWh/L) 3 2 1 (kWh/L)
A B C=A/B D E F=D/E G H I=G/H J=MAX(C,F,I)x3 K=MED(C,F,I)x2 L=MIN(C,F,I)x1 M=(J+K+L)/6
1 501 Cambridge Bay 8,369,869 2,269,199 3.69 8,745,803 2,408,194 3.63 9,148,477 2,598,730 3.52 11.07 7.26 3.52 3.64
2 502 Gjoa Haven 3,839,206 1,054,636 3.64 4,008,240 1,094,191 3.66 4,099,276 1,239,366 3.31 10.99 7.28 3.31 3.60
3 503 Taloyoak 2,835,587 787,071 3.60 2,901,800 804,161 3.61 3,001,800 862,129 3.48 10.83 7.21 3.48 3.59
4 504 Kugaaruk 2,194,408 592,864 3.70 2,369,288 677,702 3.50 2,394,153 686,834 3.49 11.10 6.99 3.49 3.60
5 505 Kugluktuk 5,032,492 1,355,685 3.71 5,352,764 1,479,743 3.62 5,494,575 1,521,869 3.61 11.14 7.23 3.61 3.66
6 601 Rankin Inlet 14,501,716 3,936,378 3.68 14,546,028 3,946,121 3.69 14,843,729 3,954,329 3.75 11.26 7.37 3.68 3.72
7 602 Baker Lake 6,964,042 1,735,941 4.01 7,516,303 1,966,049 3.82 7,716,132 2,037,992 3.79 12.04 7.65 3.79 3.91
8 603 Arviat 7,041,027 1,892,515 3.72 7,332,516 2,103,205 3.49 7,651,239 2,044,841 3.74 11.23 7.44 3.49 3.69
9 604 Coral Harbour 3,066,400 885,060 3.46 3,089,000 917,929 3.37 3,113,400 941,429 3.31 10.39 6.73 3.31 3.41
10 605 Chesterfield Inlet 1,834,650 561,217 3.27 1,922,749 578,987 3.32 1,817,550 595,634 3.05 9.96 6.54 3.05 3.26
11 606 Whale Cove 1,687,115 508,081 3.32 1,661,437 488,586 3.40 1,630,711 489,274 3.33 10.20 6.67 3.32 3.36
12 607 Repulse Bay 2,650,893 722,230 3.67 2,714,358 757,986 3.58 2,791,564 768,764 3.63 11.01 7.26 3.58 3.64
13 701 Iqaluit 50,546,130 13,273,102 3.81 52,260,250 13,993,565 3.73 53,258,690 14,071,687 3.78 11.42 7.57 3.73 3.79
14 702 Pangnirtung 7,198,392 1,679,111 4.29 6,315,994 1,757,827 3.59 6,238,545 1,702,749 3.66 12.86 7.33 3.59 3.96
15 703 Cape Dorset 5,285,829 1,552,268 3.41 5,184,175 1,500,539 3.45 5,384,329 1,626,483 3.31 10.36 6.81 3.31 3.41
16 704 Resolute Bay 3,861,979 1,110,019 3.48 4,107,034 1,124,378 3.65 4,082,016 1,193,592 3.42 10.96 6.96 3.42 3.56
17 705 Pond Inlet 5,445,142 1,529,315 3.56 5,532,376 1,665,576 3.32 5,580,315 1,666,407 3.35 10.68 6.70 3.32 3.45
18 706 Igloolik 5,179,455 1,497,645 3.46 5,309,204 1,506,386 3.52 5,542,881 1,581,815 3.50 10.57 7.01 3.46 3.51
19 707 Hall Beach 2,560,789 720,427 3.55 2,687,204 767,238 3.50 2,673,042 770,184 3.47 10.66 7.00 3.47 3.52
20 708 Qikiqtarjuak 2,269,800 611,781 3.71 2,328,000 674,461 3.45 2,345,400 718,992 3.26 11.13 6.90 3.26 3.55
21 709 Kimmirut 1,917,891 514,118 3.73 2,080,353 583,437 3.57 2,002,710 544,601 3.68 11.19 7.35 3.57 3.69
22 710 Arctic Bay 2,492,610 719,782 3.46 2,616,134 712,806 3.67 2,690,846 739,696 3.64 11.01 7.28 3.46 3.62
23 711 Clyde River 2,894,150 769,064 3.76 2,969,749 795,933 3.73 2,893,535 802,152 3.61 11.29 7.46 3.61 3.73
24 712 Grise Fiord 1,158,381 327,307 3.54 1,086,793 329,785 3.30 1,098,750 315,693 3.48 10.62 6.96 3.30 3.48
25 713 Sanikiluaq 2,634,138 725,665 3.63 2,728,909 766,186 3.56 3,032,768 811,801 3.74 11.21 7.26 3.56 3.67
4 26 TOTAL 153,462,091 41,330,480 157,366,461 43,400,970 160,526,433 44,287,043

1 3.0 REVENUE REQUIREMENT
2 3.1 INTRODUCTION
3 QEC’s Revenue Requirement for 2010/2011 reflects the forecast cost of providing
4 service in the test year, including a fair return on equity. The Revenue Requirement is
5 recovered by way of rates charged for electrical services, as well as non-electrical
6 revenues such as revenue from pole rentals. This section reviews the QEC Revenue
7 Requirement in the test year 2010/11. Chapter 4 compares this Revenue Requirement
8 to the Revenues from Existing Rates (set out in Chapter 2) to calculate the QEC
9 shortfall in the 2010/11 test year.
10 This chapter sets out specific details on the QEC revenue requirement for the test year.
11 Table 3.1 summarizes the 2010/11 Revenue Requirement and indicates where more
12 detail on each topic may be found. Further detail on the forecast 2010/11 Revenue
13 Requirement and comparisons with other years are available in Schedule 3.1.
14 Table 3.1
15 2010/11 Revenue Requirement ($000s)
2010/11
Forecast
Non-Fuel O&M (section 3.3) 44,383

Production Fuel (section 3.4) 42,874
Amortization (section 3.5) 6,721
Return on Rate Base (section 3.6) 7,195
16 Revenue Requirement 101,173
17
18
19
20
Chapter 3: Revenue Requirement Page 3-1

1 This chapter is organized under the following headings:
2  Revenue Requirement Changes since 2004/05: Provides an overview of the
3 key drivers of revenue requirement changes since the 2004/05.
4  Non-Fuel Operations and Maintenance Costs: Reviews non-production fuel
5 expenses including salaries and wages, supplies and services.
6  Production Fuel: Provides an overview of forecast fuel volumes and prices for
7 the test year.
8  Amortization Expense: Reviews fixed asset amortization expense, including
9 proposed changes to amortization rates, as well as proposed changes to other
10 amortization.
11  Return on Ratebase: Discusses the forecast capital structure as well as interest
12 expense and return on equity in the test year.
13  Accounting changes: Reviews in more detail the proposed accounting
14 changes.
15 3.2 REVENUE REQUIREMENT CHANGES SINCE THE 2004/05 GRA
16 A comparison of the 2004/05 and 2010/11 test year revenue requirements is
17 shown in Table 3.2.
18

1 Table 3.2
2 Revenue Requirement –
3 2004/05 GRA Forecast Compared to 2010/11 Forecast ($000s)
4
2004/05 2010/11
GRA Forecast Forecast
Non-Fuel O&M 29,139 44,383

Production Fuel 26,739 42,874
Fixed Asset Amortization 6,282 6,721
Other Amortization 250
Return on Rate Base 6,643 7,195
5 Revenue Requirement 69,053 101,173
6
7
8 The 2010/11 test year forecast shows upward pressure on most categories of
9 revenue requirement. Further details on these cost pressures are provided in the
10 following sections.
11 3.3 NON-FUEL OPERATING AND MAINTENANCE EXPENSES
12 QEC's forecasts for total operating and maintenance expenses for 2010/11 are set out
13 in Table 3.3.
14 Table 3.3
15 Non-Fuel O&M Expense – 2004/05 GRA Forecast Compared to 2010/11 ($000s)
16
2004/05 2010/11
Salaries and Wages 15,432 22,294

Supplies and Services, total 11,250 18,035
includes:
Supplies and Services 17,924
Site Restoration expense 161
Corporate donations (50)
Travel and Accommodation 2,457 4,054
17 Total Non-Fuel O&M Expense 29,139 44,383

18
19

1 Overall, the Corporation’s non-fuel O&M expenses for the GRA have increased by
2 $15.244 million or an average annual increase of 7.3%. Average annual inflation for
3 Nunavut for 2004/05-2009/10 fiscal period was 2.2%7, therefore in real terms, the
4 average annual increase of non-fuel O&M expenses is 5.1%. Overall the changes in
5 QEC’s O&M expense reflect the Corporation’s priorities on safety, reliability, efficiency
6 and responsiveness to and respect for stakeholders.
7 3.3.1 SALARIES AND WAGES
8 Salaries and wages expense includes all salaries, wages, overtime, standby pay and
9 call back pay for full time and casual employees. Salaries and wages expense also
10 includes related benefits such as Employment Insurance, Canada Pension Plan
11 contributions and Northern Living Allowance.
12 Forecast salaries and wages expense of $22.294 million for 2010/11 reflect a number of
13 strategic priorities for the Corporation. The $6.862 million increase in salaries and
14 wages expense compared to the 2004/05 GRA forecast reflects average annual
15 increases resulting from the collective agreements in place over the last several years;
16 annual experience increments for employees; and changes to staff complement in
17 response to a number of strategic priorities for the Corporation. Average annual cost of
18 living allowance increase over this period was 3.5%8, which is equivalent to $3.538
19 million (or 52% of the total increase). Notable components of this increase are as
20 follows:
7
Source: Statistics Canada www.statcan.gc.ca. data for Iqaluit, Nunavut. The 2.2% is average of 5-year fiscal year CPI increase
(1.7% in 2005/06 over 2004/05, 2% in 2006/07 over 2005/06, 3.1% in 2007/08 over 2006/07, 3% in 2008/09 over 2007/08 and 1.2%
in 2009/10 over 2008/09).
8
Source: Collective Agreement between Qulliq Energy Corporation and Nunavut Employees Union. Expires December 31, 2010.

1  Apprenticeship Program ($1.739 million): In order to assist in the development
2 and retention of tradespeople in high demand positions, the Corporation has
3 undertaken an apprenticeship program adding six linesmen, six electricians and
4 five mechanic positions resulting in an additional $1.739 million in salaries and
5 wages expense. The Apprenticeship Program is key to ensuring the Corporation
6 has qualified, highly skilled employees in these high demand positions and is in
7 line with QEC’s Corporate Human Resources Strategy of refining the Inuit
8 Employment Program to develop internal and external Inuit resources to assume
9 responsibilities at all levels and positions in the organization.
10  Corporate Functional Review ($2.245 million): In 2009 the Corporation
11 undertook a review of departmental functions and staffing. The review identified
12 workload and staffing issues in a number of departments as well as the need for
13 HR resource training and change initiatives. In response to these needs, the
14 Corporation added several new positions to the HR, IT, Finance and Operations
15 departments and is implementing a number of process improvements across
16 departments and functions in the Corporation. Implementing these changes
17 resulted in an additional $2.245 million in salaries and wages expense.
18 Absent these factors, the increase in Salaries and Wages from 2004/05 GRA forecast is
19 $2.878 million, or 2.9% average annual growth per year, which is below the average
20 annual cost of living allowance increase of 3.5% over this period.

1 Overall, number of FTEs increased from 151 in 2004/05 to forecast of 1779 in 2010/11.
2 Annual salaries and wages per FTE have increased from $102,000 in the 2004/05 GRA
3 to $126,000, or an average annual increase of 3.6%, which is close to average annual
4 cost of living allowance increase over this period.
5 3.3.2 SUPPLIES AND SERVICES
6 Supplies and services expense represent the cost of maintaining the Corporation’s plant
7 and equipment. This includes supplies, contractors, freight and other administrative
8 expenses. Forecast costs for supplies and services are $18.035 million in 2010/11. Key
9 factors contributing to the increase in supplies and services relative to 2004/05 GRA are
10 itemized below.
11  Maintenance Requirements and Emergency Fund ($1.922 million over
12 actual 2008/09): The Corporation has been operating below the operational
13 standards for several past years, and the efforts to bring it back to normal
14 operational expectations has increased the supplies and services expenses.
15 Routine maintenance requirements are currently behind schedule. QEC also
16 intends to institute preventative maintenance to reduce/prevent capital asset
17 degradation and repair by actively maintaining the existing assets, which also
18 requires additional materials. Furthermore, by having the vacant positions filled
19 and 17 new apprentices, more in-house work will be conducted versus
20 contracting out. In addition $500,000 was budgeted for emergency fund, whereas
21 in previous years no allowance was made for this expense. The increases in
9
Forecast 2010/11 FTE of 193 adjusted for 3-year average vacancy rate of 8.4%.

1 materials purchased resulted in higher forecast for freight (sealift) expenses of
2 $340,000.
3  Tools, Furniture and Equipment ($0.470 million over actual 2008/09): The
4 addition of new positions, filling vacant positions and the apprenticeship program
5 require the purchase of more tools, furniture and equipment. Some tools and
6 equipment also need to be replaced in response to maintenance requirements.
7  Clothing and Safety Equipment ($0.346 million over actual 2008/09):
8 Increases in the number of staff and maintenance also require the purchase of
9 additional clothing and safety equipment.
10  Building Rental (Housing) ($0.272 million over actual 2008/09): The
11 Corporation provides a housing support for its employees and increases in
12 housing rentals are related to increases in the number of employees.
13  Training ($0.251 million over actual 2008/09): Training expenses are projected
14 to increase due mainly to the increase in the number of staff, and in particular the
15 number of new apprentices with QEC. Trades apprentices are required to
16 engage in annual training sessions as they work to obtain certification. In
17 addition, due to the reorganization and introduction of more advanced operations
18 and financial recording, monitoring and reporting systems training is required for
19 existing employees as well.
20  Computer Hardware and Licensing ($0.288 million over actual 2008/09):
21 There are currently 52 computers and 10 servers out of warranty and unable to

1 meet the hardware requirements for Windows 7 and Windows Server 2008 which
2 will be upgraded in the test year. The Corporation also needs to provide 17
3 apprentices with computers and software licenses.
4  Consulting Expenses ($0.492 million over actual 2008/09): The increase in
5 consulting expenses is related to a combination of services to address the
6 following: environmental work to meet safety and health requirements, GRA
7 Filing and Review, and for the development and implementation of programs
8 coming from the Organization Restructuring.
9  Bad Debt Expense ($0.500 million): This expense was recorded as negative
10 miscellaneous revenue in previous years. Following the Auditor General’s (OAG)
11 recommendation, this expense will be recorded as an O&M expense from this
12 year onwards.
13  Site Restoration Expense ($0.161 million): This expense category is related to
14 the Corporation’s transition to PSA standards and discussed in detail in section
15 3.5.
16 Absent these factors, the increase in supplies and services relative to 2004/05 is $2.083
17 million, or 2.9% annual average increase. This increase is driven in part by electricity
18 sales growth (2.3% average per year relative to the 2004/05 GRA) and partly by
19 inflation (2.2% average per year relative to 2004/05 GRA).

1 3.3.3 TRAVEL AND ACCOMMODATION
2 Travel and Accommodation expense includes all of the costs associated with travel,
3 meals and accommodation for operational and professional development activities.
4 Forecast travel costs of $4.054 million in 2010/11 are an increase of $1.597 million
5 compared to the 2004/05 GRA forecasts. This increase represents inflationary
6 increases as well as the following drivers:
7  Business Travel / Accommodations and Overhauls ($0.868 million over
8 actual 2008/09): In 2010/11 QEC is budgeting to hire 17 apprentices to different
9 positions in the Operations department. The related expenses for apprentices’
10 travels have been reflected in Business Travels and Accommodations, which is
11 the major driver in the travel and accommodation budget increase of $0.868
12 million.
13  Training Travel / Accommodations ($0.282 million over actual 2008/09): As
14 discussed in section 3.2.2, reorganization and introduction of more advanced
15 operations and financial systems, requires training to update the existing
16 employees. Travel related expenses of this training result in the increase of
17 $0.282 million in Travels and Accommodation.
18 The remaining increase of $0.447 (or about 2.8% average annual increase) is
19 approximately equal to overall inflation over this period.
20 3.4 PRODUCTION FUEL
21 QEC’s forecast production fuel costs for 2010/11 are set out in Schedule 3.2.4. Forecast
22 production fuel expenses in 2010/11 have increased $16.440 million relative to 2004/05.

1 This represents an increase due to fuel volume of $3.471 million (Table 3.4) and an
2 increase of $12.969 million due to price increases. Fuel price forecasts are based on
3 the most recent prices available from Petroleum Products Division (PPD), the sole
4 provider of fuel to the Corporation.
5 Table 3.4
6 Generation, Fuel Consumption and Fuel Cost10 –
7 2004/05 GRA Forecast Compared to 2010/11 Forecast
8
Generation (MWh) 150,331 171,037 2.2%
Fuel consumption (L 000) 40,957 46,415 2.1%

Fuel efficiency (KWh/L) 3.67 3.69
9 Fuel cost at 2004/05 GRA fuel price ($000) 25,860 29,330 2.1%
10
11 3.5 AMORTIZATION
12 Amortization expense comprises the sum of fixed asset amortization and amortization of
13 deferred charges. Table 3.5 shows changes to amortization expense from 2004/05 to
14 the 2010/11 forecast. Changes reflect a number of factors including:
15  Fixed Asset Amortization Rate Changes: In preparation for the transition to
16 PSA standards, QEC commissioned a new amortization study. A copy of the
17 study is provided in Appendix C. The primary change related to the transition to
18 PSA is to remove the provision for net salvage from the calculation of the
19 amortization rates. QEC is proposing to roll-up existing amounts in the Reserve
10
Fuel cost at 2004/05 GRA fuel price – URRC report 2006-02 to the Minister Responsible for the Qulliq Energy Corporation, July
28, 2006.

1 for Future Removal and Site Restoration into Fixed Asset Amortization. Salvage
2 and site restoration costs will no longer be charged to the amortization provision
3 but will be expensed in the year incurred. In order to ensure QEC’s operating
4 budget is sufficient to recover these expenses, a provision for site restoration
5 expenses has been included in the Corporation’s GRA O&M budget beginning in
6 2010/11 (row 4 of Schedule 3.1).
7  Asset Retirement Obligation: With the removal of the provision for net salvage
8 from amortization expense, the Corporation is investigating the potential need to
9 include an Asset Retirement Obligation (“ARO”) related to potential
10 environmental liabilities. The Corporation will be undertaking analyses related to
11 the potential magnitude of environmental liabilities and the appropriate
12 accounting treatment for such liabilities as part of the transition to Public Sector
13 Accounting.
14 No amounts related to an ARO have been included in the 2010/11 test year at
15 present. However, QEC may need to include a provision for an ARO related to
16 environmental liabilities in future rate applications.
17 Removal of Provision for Deferred Charges: In its 2004/05 report to the Minister,
18 the URRC included a provision for appropriations to a Rate Hearing Reserve and a
19 Reserve for Injuries and Damages (RFID). However, QEC has not maintained these
20 accounts for financial reporting purposes. In order to simplify the transition to PSA,
21 QEC is proposing to remove appropriations for these funds from its test year
22 revenue requirement. Amounts set aside to date for regulatory accounting purposes

1 have been included as no cost capital. The Rate Hearing Reserve is anticipated to
2 have a negative balance at the end of 2010/11 while the RFID is expected to have a
3 positive balance. QEC is proposing to retain these balances for regulatory purposes
4 and to draw down amounts over the period until the next General Rate Application.
5 Table 3.5
6 Amortization Expense –
8
2004/05 2010/11
Capital asset amortization 6,411 6,952

Less: Amortization of contributions (378) (480)
Add: Amortization of Deferred Charges 250
Financing cost amortization 249 249
9 Total 6,532 6,721

10
11
12 3.6 RETURN ON RATE BASE
13 The 2010/11 return on ratebase reflects the costs to the Corporation of maintaining
14 long-term debt to finance assets that are used, useful and in service, as well as a fair
15 return on equity. The Corporation’s capital structure, ratebase and return on ratebase
16 for 2010/11 compared to the 2004/05 test year is shown in Table 3.6.

1 Table 3.6
2 Return on Ratebase –
2004/05 2010/11
Mid-Year Net Plant in Service 91,911 97,791

Working Capital 8,984 13,633
Customer Contributions (6,496) (12,275)
Mid Year Rate Base 94,399 99,149
Average Rate of Return on Rate Base 7.04% 7.26%
4 Return on Rate Base 6,643 7,195

5
6 With respect to the proposed capital structure for 2010/11, QEC notes the URRC in its
7 2005 report to the Minister respecting QEC’s 2004/05 GRA recommended approval of a
8 capital structure of approximately 75:25 debt to equity for 2004/05. In its report, the
9 URRC noted this capital structure was based on the actual and forecast equity balance
10 for 2004/05. The URRC also noted this ratio was consistent with the minimum 75:25
11 debt equity ratio required by legislation and the existing debt covenants 11. Section 25 of
12 the Qulliq Energy Corporation Act requires the Corporation’s borrowings not to exceed
13 three times its equity at any time. For the 2010/11 test year, QEC’s proposed capital
14 structure reflects forecasts for long-term debt; no-cost capital and equity for the 2010/11
15 test year while also considering the requirements of legislation and existing debt
16 covenants.
17 With respect to return on equity (“ROE”), QEC notes the URRC recommended approval
18 of a 9.6% return on equity for the 2004/05 test year with reference to the Alberta Energy
11
Page 26, URRC Report to the Minister Responsible for the Qulliq Energy Corporation, February 18, 2005.

1 and Utilities Board (“AEUB”) approved ROE for 2005. The URRC noted this ROE
2 provided a coverage ratio of approximately 1.512.
3 In developing its ROE proposal for the current GRA, QEC reviewed the following
4 information:
5 1. QEC reviewed the current approach to ROE in Alberta. QEC notes the Alberta
6 Utilities Commission (“AUC”) (formerly the AEUB) conducted a review of its
7 approach to the setting of a generic ROE leading to AUC Decision 2009-216. In
8 that Decision, the AUC suspended the application of its previous ROE
9 adjustment formula and set a generic ROE for 2009 and 2010 of 9.0 per cent. In
10 the same Decision the AUC established an interim ROE for 2011 of 9.0 per cent.
11 2. QEC reviewed the most recently approved ROE for the Northwest Territories
12 Power Corporation (“NTPC”). In Decision 13-2007 the Northwest Territories
13 Public Utilities Board approved a ROE of 9.25 per cent for NTPC’s 2007/08 test
14 year.
15 QEC operates in a harsher environment than NTPC or Alberta based utilities due to the
16 isolated nature of its communities (i.e. no road or rail interconnections with southern
17 jurisdictions); the smaller size of its communities and the lack of access to hydro-electric
18 or natural gas generation. Therefore QEC believes its ROE should at a minimum be
19 consistent with the levels approved for NTPC or Alberta based utilities, and that there
20 likely could be an argument that its business risks would support a higher ROE.
12
Page 31, URRC Report to the Minister Responsible for the Qulliq Energy Corporation, February 18, 2005.

1 Based on this, QEC’s proposed ROE for the 2010/11 test year is 9.25% - consistent
2 with the most recently approved ROE for the Northwest Territories Power Corporation
3 and marginally higher than the AUC approved generic ROE for 2010 and the interim
4 ROE for 2011. The proposed ROE is also consistent with the 1.5 coverage ratio
5 referenced by the URRC in its 2005 Report to the Minister.
6 3.7 ACCOUNTING CHANGES
7 As noted in section 3.5, QEC is in the process of transitioning its financial statement
8 accounting to PSA. This transition is being made to improve consistency in financial
9 reporting with other territorial agencies. At present, QEC has not completed its transition
10 to PSA and is in the process of developing a transition plan. For the most part, the
11 revenue requirement for the 2010/11 test year has been prepared based on budgets
12 consistent with Canadian GAAP. However, QEC is proposing to adopt the following
13 changes to its accounting practices in this GRA to better align its financial reporting with
14 PSA:
15 1. QEC is proposing to adopt revised amortization rates that do not include a
16 provision for net salvage. In order to address potential environmental liabilities
17 QEC is also proposing to adopt an ARO related to those potential environmental
18 liabilities.
19 2. Since QEC’s amortization rates will no longer include a provision for net
20 negative salvage, these costs will be expensed in the year incurred. QEC has
21 included a provision for these expenses in its revenue requirement.

1 3. QEC is proposing to roll-up the deferral accounts related to the rate hearing
2 reserve and the reserve for injuries and damages. QEC has not included a
3 provision for deferred cost amortization for these items in its 2010/11 revenue
4 requirement. QEC is proposing to retain these balances for regulatory purposes
5 and to draw down amounts over the period until the next General Rate
6 Application.

1 Schedule 3.1
3 Revenue Requirement
Line 2007/08 2008/09 2009/10 2010/11

No. Actual Actual Forecast Forecast
1 Operation & Maintenance Expense
2 Salaries and Wages $ 17,747 $ 18,933 $ 21,134 $ 22,294
3 Supplies and Services 15,694 13,279 16,962 17,924
4 Site Restoration Expense 161
5 Travel and Accommodation 3,332 3,412 3,207 4,054
6 Non-Fuel Operation & Maintenance Expense 36,773 35,624 41,302 44,433
7 Less: Corporate Donations (5) (45) (1) (50)

8 Non-Fuel Operation & Maintenance Expense for GRA 36,768 35,580 41,301 44,383
9 Fuel and Lubricants Expense 37,664 44,834 39,495 42,874
10 Amortization
11 Fixed Asset Amortization 6,679 5,814 8,478 6,952
12 Less: Amortization of Customer Contributions (566) (619) (679) (480)
13 Add: Amortization of Deferred Charges 250 250 250
14 Financing Cost Amortization 249 249 249 249
15 Total Amortization Expense 6,612 5,694 8,298 6,721
16 Total Return on Rate Base 7,483 7,429 7,203 7,195
17 Total Revenue Requirement 88,526 93,536 96,296 101,173

4
5
6
7

1 Schedule 3.2.1
3 2007/08 Actual Production Fuel Cost
AVERAGE
ANNUAL
Line PLANT PLANT ACTUAL PLANT FUEL FUEL FUEL LUBE FUEL & LUBE
No. No. NAME GENERATION EFFICIENCY CONSUMPTION PRICE COST COST COST
(MWh) (kWh/L) (000 L) ($/L) (000$) (000$) (000$)
1 501 Cambridge Bay 8,746 3.63 2,408 1.23 2,973 26.5 3,000
2 502 Gjoa Haven 4,008 3.66 1,094 1.05 1,146 8.4 1,154
3 503 Taloyoak 2,902 3.61 804 1.23 990 3.9 994
4 504 Kugaaruk 2,369 3.50 678 1.10 743 4.3 747
5 505 Kugluktuk 5,353 3.62 1,480 1.19 1,755 21.8 1,776
6 601 Rankin Inlet 14,546 3.69 3,946 0.81 3,215 103.6 3,319
7 602 Baker Lake 7,516 3.82 1,966 0.93 1,828 18.5 1,846
8 603 Arviat 7,333 3.49 2,103 0.82 1,732 27.2 1,759
9 604 Coral Harbour 3,089 3.37 918 0.92 843 -6.8 837
10 605 Chesterfield Inlet 1,923 3.32 579 0.96 556 12.6 568
11 606 Whale Cove 1,661 3.40 489 0.90 441 3.4 445
12 607 Repulse Bay 2,714 3.58 758 0.91 689 5.8 695
13 701 Iqaluit 52,260 3.73 13,994 0.76 10,644 55.1 10,699

14 702 Pangnirtung 6,316 3.59 1,758 0.77 1,351 29.3 1,380
15 703 Cape Dorset 5,184 3.45 1,501 0.75 1,129 12.6 1,141
16 704 Resolute Bay 4,107 3.65 1,124 0.84 944 13.3 957
17 705 Pond Inlet 5,532 3.32 1,666 0.78 1,296 27.0 1,323
18 706 Igloolik 5,309 3.52 1,506 0.79 1,197 14.4 1,212
19 707 Hall Beach 2,687 3.50 767 0.80 610 8.4 619
20 708 Qikiqtarjuak 2,328 3.45 674 0.75 507 6.3 513
21 709 Kimmirut 2,080 3.57 583 0.76 446 0.5 447
22 710 Arctic Bay 2,616 3.67 713 0.88 628 8.6 637
23 711 Clyde River 2,970 3.73 796 0.76 605 8.2 613
24 712 Grise Fiord 1,087 3.30 330 0.80 265 -1.9 263
25 713 Sanikiluaq 2,729 3.56 766 0.93 710 9.2 719
4 26 TOTAL 157,366 3.63 43,401 0.86 37,245 420 37,664

5

1 Schedule 3.2.2
3 2008/09 Actual Production Fuel Cost
AVERAGE
ANNUAL
Line PLANT PLANT ACTUAL PLANT FUEL FUEL FUEL LUBE FUEL & LUBE
No. No. NAME GENERATION EFFICIENCY CONSUMPTION PRICE COST COST COST
(MWh) (kWh/L) (000 L) ($/L) (000$) (000$) (000$)
1 501 Cambridge Bay 9,148 3.52 2,599 1.10 2,871 26.9 2,898
2 502 Gjoa Haven 4,099 3.31 1,239 1.22 1,508 7.0 1,515
3 503 Taloyoak 3,002 3.48 862 1.11 959 20.6 980
4 504 Kugaaruk 2,394 3.49 687 1.26 865 12.8 878
5 505 Kugluktuk 5,495 3.61 1,522 1.10 1,681 -2.8 1,678
6 601 Rankin Inlet 14,844 3.75 3,954 1.15 4,556 93.4 4,649
7 602 Baker Lake 7,716 3.79 2,038 1.09 2,230 25.0 2,255
8 603 Arviat 7,651 3.74 2,045 1.04 2,119 36.5 2,155
9 604 Coral Harbour 3,113 3.31 941 1.09 1,024 17.4 1,041
11 606 Whale Cove 1,631 3.33 489 1.05 515 1.4 516
12 607 Repulse Bay 2,792 3.63 769 1.06 816 10.1 826
13 701 Iqaluit 53,259 3.78 14,072 0.89 12,528 146.8 12,675

14 702 Pangnirtung 6,239 3.66 1,703 0.93 1,587 14.9 1,602
15 703 Cape Dorset 5,384 3.31 1,626 0.92 1,493 23.7 1,517
16 704 Resolute Bay 4,082 3.42 1,194 1.00 1,194 15.0 1,209
17 705 Pond Inlet 5,580 3.35 1,666 0.94 1,559 19.4 1,579
18 706 Igloolik 5,543 3.50 1,582 0.96 1,524 24.5 1,548
19 707 Hall Beach 2,673 3.47 770 0.96 742 0.5 742
20 708 Qikiqtarjuak 2,345 3.26 719 0.91 654 4.8 658
21 709 Kimmirut 2,003 3.68 545 0.91 497 8.1 505
22 710 Arctic Bay 2,691 3.64 740 0.95 704 15.0 719
23 711 Clyde River 2,894 3.61 802 0.94 751 6.5 757
24 712 Grise Fiord 1,099 3.48 316 0.91 287 3.0 290
25 713 Sanikiluaq 3,033 3.74 812 1.09 885 11.5 897
4 26 TOTAL 160,526 3.63 44,287 1.00 44,235 550 44,785

1 Schedule 3.2.3
3 2009/10 Forecast Production Fuel Cost
Line PLANT PLANT FORECAST PLANT FUEL FUEL FUEL LUBE FUEL & LUBE
No. No. NAME GENERATION EFFICIENCY REQUIRED PRICE COST COST COST
(MWh) (kWh/L) (000 L) ($/L) (000$) (000$) (000$)
1 501 Cambridge Bay 9,295 3.64 2,552 0.72 1,842 26.9 1,869
2 502 Gjoa Haven 4,209 3.60 1,170 1.18 1,376 7.0 1,383
3 503 Taloyoak 2,989 3.59 834 0.70 586 20.6 606
4 504 Kugaaruk 2,427 3.60 675 1.23 828 12.8 841
5 505 Kugluktuk 5,525 3.66 1,508 1.31 1,972 21.8 1,994
6 601 Rankin Inlet 15,108 3.72 4,062 0.80 3,241 93.4 3,334
7 602 Baker Lake 7,704 3.91 1,970 1.07 2,102 25.0 2,127
8 603 Arviat 7,897 3.69 2,139 0.77 1,650 36.5 1,687
9 604 Coral Harbour 3,101 3.41 911 1.07 972 17.4 989
11 606 Whale Cove 1,627 3.36 484 1.04 502 1.4 504
12 607 Repulse Bay 2,832 3.64 777 0.91 710 10.1 720
13 701 Iqaluit 57,401 3.79 15,153 0.74 11,250 146.8 11,397

14 702 Pangnirtung 6,610 3.96 1,668 0.89 1,486 14.9 1,501
15 703 Cape Dorset 5,432 3.41 1,591 0.88 1,396 23.7 1,420
16 704 Resolute Bay 4,073 3.56 1,145 0.97 1,109 15.0 1,124
17 705 Pond Inlet 5,930 3.45 1,719 0.90 1,548 19.4 1,567
18 706 Igloolik 5,648 3.51 1,611 0.92 1,484 24.5 1,508
19 707 Hall Beach 2,746 3.52 780 0.93 721 0.5 722
20 708 Qikiqtarjuak 2,387 3.55 673 0.88 590 4.8 595
21 709 Kimmirut 2,071 3.69 562 0.91 509 8.1 518
22 710 Arctic Bay 2,754 3.62 760 0.90 687 15.0 702
23 711 Clyde River 3,145 3.73 844 0.72 608 6.5 614
24 712 Grise Fiord 1,167 3.48 335 0.95 317 3.0 320
25 713 Sanikiluaq 2,882 3.67 785 1.06 829 11.5 840
4 26 TOTAL 166,815 3.69 45,275 0.86 38,920 574 39,495

1
2 Schedule 3.2.4
4 2010/11 Forecast Production Fuel Cost
Line PLANT PLANT FORECAST PLANT FUEL FUEL FUEL LUBE FUEL & LUBE
No. No. NAME GENERATION EFFICIENCY REQUIRED PRICE COST COST COST
(MWh) (kWh/L) (000 L) ($/L) (000$) (000$) (000$)
1 501 Cambridge Bay 9,569 3.64 2,628 0.72 1,899 26.9 1,925
2 502 Gjoa Haven 4,288 3.60 1,192 1.17 1,400 7.0 1,407
3 503 Taloyoak 3,025 3.59 844 0.70 592 20.6 613
4 504 Kugaaruk 2,501 3.60 695 1.22 851 12.8 864
5 505 Kugluktuk 5,595 3.66 1,527 1.31 1,996 21.8 2,018
6 601 Rankin Inlet 15,458 3.72 4,156 0.80 3,310 93.4 3,403
7 602 Baker Lake 7,903 3.91 2,021 1.06 2,134 25.0 2,159
8 603 Arviat 8,152 3.69 2,208 0.89 1,961 36.5 1,997
9 604 Coral Harbour 3,148 3.41 924 1.05 966 17.4 984
11 606 Whale Cove 1,652 3.36 491 1.04 510 1.4 511
12 607 Repulse Bay 2,913 3.64 800 1.06 851 10.1 861
13 701 Iqaluit 59,121 3.79 15,607 0.87 13,562 146.8 13,709

14 702 Pangnirtung 6,779 3.96 1,710 0.89 1,523 14.9 1,538
15 703 Cape Dorset 5,551 3.41 1,626 0.88 1,426 23.7 1,450
16 704 Resolute Bay 4,165 3.56 1,171 0.97 1,131 15.0 1,146
17 705 Pond Inlet 6,095 3.45 1,767 0.90 1,587 19.4 1,606
18 706 Igloolik 5,758 3.51 1,642 0.92 1,511 24.5 1,536
19 707 Hall Beach 2,794 3.52 793 0.92 731 0.5 731
20 708 Qikiqtarjuak 2,428 3.55 684 0.88 600 4.8 605
21 709 Kimmirut 2,105 3.69 571 0.89 509 8.1 517
22 710 Arctic Bay 2,823 3.62 779 0.90 703 15.0 718
23 711 Clyde River 3,208 3.73 861 0.85 732 6.5 739
24 712 Grise Fiord 1,183 3.48 340 0.95 322 3.0 325
25 713 Sanikiluaq 2,943 3.67 802 1.05 845 11.5 856
5 26 TOTAL 171,037 3.69 46,415 0.91 42,300 574 42,874

1
2 Schedule 3.3
4 Amortization Provision by Functions
Line Amortization Provision by 2007/08 2008/09 2009/10 2010/11

No. Major FERC Category Actual Actual Forecast Forecast
1 Diesel Plant
2 Amortization 5,127 5,143 6,069 5,582
3 Add (Less): Accumulated Reserve Variance 0 -1 0 0
4 Total Diesel Plant Amortization 5,127 5,142 6,069 5,582
5 Distribution Plant
6 Amortization 787 744 1,141 511
7 Add (Less): Accumulated Reserve Variance 0 0 0 0
8 Total Distribution Plant Amortization 787 744 1,141 511
9 General Plant
10 Amortization 777 805 1,225 913
11 Add (Less): Accumulated Reserve Variance 0 -830 0 0
12 Total General Plant Amortization 777 -25 1,225 913
13 Energy Utilization Group

14 Amortization 65 31 121 23
16 Total EUG Amortization 65 31 121 23
17 Insurance Proceeds
18 Amortization -78 -78 -78 -78
20 Total Insurance Proceeds Amortization -78 -78 -78 -78
21 Total Rate Base Amortization 6,679 5,814 8,478 6,952
22 Add: Financing Cost Amortization 249 249 249 249

23 Less: Customer contributions 566 619 679 480
24 Add: Amortization of Deferred Charges 250 250 250
5 24 Total Amortization 6,612 5,694 8,298 6,721

1 Schedule 3.4
3 Return on Rate Base – Mid Year
Line Mid-Year Mid-Year Mid-Year Rate Mid-Year Cost

No. Capitalization Capital Ratios Base Rate Return
2007/08 Actual
1 Common Equity 48,757 39.87% 39,943 9.60% 3,834

2 Long Term Debt 67,705 55.37% 55,466 6.58% 3,648
3 No Cost Capital 5,821 4.76% 4,769 0.00% 0
4 TOTAL $ 122,283 100.00% $ 100,177 7.469% $ 7,483
2008/09 Actual
5 Common Equity 50,093 40.42% 40,703 9.60% 3,907

6 Long Term Debt 68,282 55.09% 55,482 6.35% 3,521
7 No Cost Capital 5,561 4.49% 4,519 0.00% 0
8 TOTAL $ 123,936 100.00% $ 100,704 7.377% $ 7,429
2009/10 Forecast
9 Common Equity 50,089 41.70% 41,369 9.60% 3,971

10 Long Term Debt 64,796 53.95% 53,516 6.04% 3,231
11 No Cost Capital 5,219 4.35% 4,310 0.00% 0
12 TOTAL $ 120,104 100.00% $ 99,196 7.261% $ 7,203
2010/11 Forecast
13 Common Equity 51,152 43.85% 43,474 9.25% 4,021

14 Long Term Debt 61,173 52.44% 51,991 6.11% 3,174
15 No Cost Capital 4,334 3.72% 3,683 0.00% 0
4 16 TOTAL $ 116,659 100.00% $ 99,149 7.257% $ 7,195

1 Schedule 3.5
3 Capitalization – Mid Year
Line 2007/08 2008/09 2009/10 2010/11

1 COMMON EQUITY
2 Opening Balance 48,841 48,672 51,514 48,664
3 Net Income/Loss -169 729 -3,590 4,976
4 Dividends/Contributions 0 2,113 740 0
5 Closing Balance 48,672 51,514 48,664 53,640
6 Mid Year Balance [(L2+L5)/2] 48,757 50,093 50,089 51,152
7 DEBT - LONG TERM

8 Opening Balance 65,419 69,991 66,572 63,020
9 Issue 8,000 0 0 0
10 Repayment (3,428) (3,419) (3,552) (3,694)
11 Closing Balance 69,991 66,572 63,020 59,326
13 NO COST CAPITAL
GN No-Cost Loan
14 Opening Balance 4,601 4,091 3,581 3,071
15 Issue 0 0 0 0
16 Repayment (510) (510) (510) (510)
17 Closing Balance 4,091 3,581 3,071 2,561
Hearing Reserve
19 Opening Balance 600 700 800 736
20 Additions 100 100 100
21 Use 0 0 (164) (836)
22 Closing Balance 700 800 736 (100)
23 Mid Year Balance [(L24+L27)/2] 650 750 768 318
Reserve for Injuries and Damages

24 Opening Balance 750 900 1,050 1,200
25 Additions 150 150 150
26 Use 0 0 0 0
27 Closing Balance 900 1,050 1,200 1,200
28 Mid Year Balance [(L29+L32)/2] 825 975 1,125 1,200
29 No Cost Capital Mid Year Balance 5,821 5,561 5,219 4,334

[L18+L23+L28]
30 TOTAL MID YEAR CAPITALIZATION

4 31 [L6+L12+L29] 122,283 123,936 120,104 116,659
5
6

1 Schedule 3.6
3 Cost of Long – Term Debt
Line 2007/08 2008/09 2009/10 2010/11

1 MID-YEAR DEBT BALANCE (MAD) 67,705 68,282 64,796 61,173
2 INTEREST EXPENSE
Interest on Long Term Debt
$61m Debenture debt (6.809%) 3,895 3,776 3,645 3,503
$7m Capital loan facility (floating rate) 405 251 118 102
$8m Capital loan facility (floating rate) 153 307 149 130
Total Interest Expense 4,453 4,334 3,912 3,735
4 3 EFFECTIVE COST OF LONG TERM DEBT (L2/L1) 6.577% 6.347% 6.038% 6.105%

1 4.0 SHORTFALL FROM REVENUES AT EXISTING RATES
2 4.1 INTRODUCTION
3 QEC’s 2010/11 revenue requirement (as set out in Chapter 3) results in a shortfall
4 compared to revenues at existing rates (as set out in Chapter 2).
5 This section reviews the shortfall in the test years on a Corporate-wide basis by two
6 components:
7  Shortfalls related to fuel price differences otherwise collected by riders:
8 QEC recovers changes in fuel expense relative to 2004/05 GRA prices by way of
9 a fuel rider. A portion of the apparent shortfalls from existing rates reflect the
10 incorporation of these costs into QEC’s base rates.
11  “Core” shortfalls not otherwise addressed by way of riders: Outside of the
12 fuel expenses, QEC’s base rates are insufficient to collect the revenue
13 requirement as set out in Chapter 3.
14 4.2 CORPORATE-WIDE SHORTFALL FROM REVENUES AT EXISTING RATES
15 QEC’s revenue requirement and revenues at existing rates are set out in Table 4.1,
16 indicating the shortfall that arises in the 2010/11 test year.
Chapter 4: Shortfall from Revenues at Existing Rates Page 4-1

1 Table 4.1
2 Shortfall from Revenues at Existing Rates 2010/11 ($000s)
2010/11
Forecast
Non-Fuel O&M 44,383

Production Fuel 42,874
Fixed Asset Amortization 6,721
Other Amortization
Return on Rate Base 7,195
Revenue Requirement 101,173
less: Non-Electrical Revenues 2,146

Revenues at Existing Rates 76,282
Shortfall (22,745)
MW.h sales 155,283

Shortfall (cents per kW.h) 14.65
Shortfall as % of Existing Revenues 29.8%
3 Mid-Year Rate Base 99,149

4
5
6 Table 4.1 indicates a shortfall from revenues at existing rates of $22.745 million in
7 2010/11, incorporating all elements of the revenue requirement described in Chapter 3.
8 As a percentage of existing rate revenues this reflects a shortfall of 29.8% or 14.65
9 cents/kW.h.
10 Table 4.2 provides a comparison of revenue requirement, revenues and shortfalls
11 between 2004/05 and 2010/11 test year forecasts. Compared to the 2004/05 GRA
12 forecast, the shortfall reflects cost pressures in most areas of the revenue requirement,
13 offset in part by modest revenue growth (both rate revenue and non-rate revenue).

1 Table 4.2
2 Shortfall from Revenues at Existing Rates
3 2004/05 GRA Forecast Compared to 2010/11 ($000s)
4
2004/05 2010/11 Changes 2004/05
GRA Forecast Forecast to 2010/11
Non-Fuel O&M 29,139 44,383 15,244

Production Fuel 26,739 42,874 16,135
Fixed Asset Amortization 6,282 6,721 439
Other Amortization 250 (250)
Return on Rate Base 6,643 7,195 552
Revenue Requirement 69,053 101,173 32,120
Add: Bad Debt Expense 130

Less: Non-Electrical Revenues 1,155 2,146 991
Revenues at Existing Rates 68,028 76,282 8,254
Shortfall 0 (22,745) (22,745)
MW.h sales 135,474 155,283 19,809

Shortfall (cents per kW.h) 0.00 14.65 14.65
Shortfall as % of Existing Revenues 0% 29.8%
5 Note: 2004/05 GRA forecast is per URRC Report 2006-02 from July 28, 2006 on QEC Base Rate Adjustment Application.
6
7
8 4.3 SHORTFALL ARISING FROM ITEMS OTHERWISE COLLECTED VIA RIDERS
9 QEC’s revenue requirement and shortfall includes fuel expenses that, absent a GRA
10 test year, would otherwise be collected by way of a fuel rider. QEC’s shortfall absent
11 these extra fuel expenses is set out in Table 4.3.

1 Table 4.3
2 Shortfall from Revenues at Existing Rates
3 Less: fuel expense otherwise recovered by riders 2010/11 ($000s)
4
2010/11 Rider 2010/11
Forecast Item Forecast
Non-Fuel O&M 44,383 44,383

Production Fuel 42,874 12,969 29,905
Amortization Expense 6,721 6,721
Return on Rate Base 7,195 7,195
Revenue Requirement 101,173 88,204
Less: Non-Electrical Revenues 2,146 2,146

Revenues at Existing Electricity Rates 76,282 76,282
Shortfall (22,745) (12,969) (9,775)
MW.h sales 155,283 155,283

Shortfall (cents per kW.h) 14.65 6.30
5 Shortfall as % of Existing Revenues 29.8% 12.8%

6
7
8 As illustrated in Table 4.3, $12.969 million, approximately 57%, of the 2010/11 shortfall
9 relates to incorporating fuel expenses into base rates that would otherwise be collected
10 by way of a rate rider. The remaining core shortfall of approximately $9.775 million
11 represents an increase to existing base rates of approximately 12.8%.

1 5.0 RATE BASE
2 5.1 INTRODUCTION
3 This chapter sets out the calculation of the Corporation’s actual Mid-Year Rate Base for
4 the 2007/08 and 2008/09 fiscal years as well as forecasts for 2009/10 and the 2010/11
5 test year. Specifically this chapter addresses the following topics:
6  Gross Plant in Service, including capital additions and disposals;
7  Accumulated Amortization (amortization expense is discussed in more detail in
8 Chapter 3);
9  Customer Contributions; and
10  Working Capital.
11 The Calculation of the Corporation’s Mid-Year Ratebase is forecast to be $99.149
12 million for the 2010/11 test year.
13 5.2 GROSS PLANT IN SERVICE
14 Gross Plant in Service represents the accounting cost of all QEC assets in service
15 related to the provision of electricity service. Each year the Gross Plant in Service
16 calculation considers the opening balance, plus capital additions, less disposals to
17 arrive at the ending balance. The Mid-Year Gross Plant figures are the simple average
18 of the Opening Gross Plant Balance and the Ending Gross Plant Balance. Gross Plant
19 in Service calculations for 2007/08 through 2010/11 are set out in Schedule 5.2. Actual
20 and forecast capital additions, as well as descriptions of capital additions greater than
21 $100,000 are set out in Appendix B.
Chapter 5: Rate Base Page 5-1

1 5.3 ACCUMULATED AMORTIZATION
2 Accumulated Amortization represents the collected amortization related to all QEC
3 assets in service related to the provision of electricity service. For each year from
4 2007/08 through 2009/10 the Accumulated Amortization calculation considers the
5 opening balance, plus amortization expense, less disposals and site restoration
6 spending to arrive at the ending balance. For 2010/11, QEC is proposing to adopt new
7 amortization rates that result in the following changes to the calculation of accumulated
8 amortization:
9 1. Amortization rates will no longer include a provision for site restoration expenses.
10 QEC is proposing to roll-up amounts accumulated in the Reserve for Future
11 Removal and Site Restoration into Fixed Asset Amortization.
12 2. As a result, from 2010/11 forward, costs related to site restoration would not be
13 charged against Accumulated Amortization, but would be expensed in the year
14 incurred.
15 Further details on these changes are described in Chapter 3.
16 Schedule 5.3 sets out the calculation of the Mid-Year Accumulated Amortization.
17 5.4 CUSTOMER CONTRIBUTIONS
18 Customer contributions represent the portion of assets that were directly recovered from
19 the Corporation’s customers at the time the asset was constructed as well as portions of
20 assets directly financed by the Government of Nunavut. Schedule 5.4 shows the actual

1 Net Mid-Year Customer Contributions for 2007/08 and 2008/09 as well as forecasts for
2 2009/10 and the test year 2010/11.
3 5.5 WORKING CAPITAL
4 Cash working capital has been calculated based on a lead-lag study completed for this
5 GRA. Included in the calculation of working capital are the operational revenue and
6 expense leads and lags and the GST lead/lag calculation. The weighted average
7 expense lag is determined for each major expense category. The revenue lag is
8 calculated for each type of customer and weighted according to the revenues for those
9 customers. The lead-lag study is included in Appendix D.
10 The Corporation’s lead-lag study returned a result of 14.63 net lag days. The net lag
11 days figure is multiplied by the daily expenses and added to the impact of GST lag to
12 provide a cash working capital provision for each year.
13 Other components of working capital are supplies inventory, fuel inventory and pre-
14 payments of rent and insurance. Schedule 5.5 shows the calculation of the working
15 capital provision for 2007/08 through 2010/11. Schedules 5.6 through 5.9 set out the
16 calculation of cash working capital for each year.

1 Schedule 5.1
3 Rate Base
Line 2007/08 2008/09 2009/10 2010/11

1 Gross Plant in Service

2 Beginning of Year 181,689 187,797 193,146 202,169
3 Add: Additions and Adjustments 6,109 7,261 9,023 9,971
4 Less: Disposals and Transfers 0 (1,912) 0 0
5 End of Year 187,797 193,146 202,169 212,140
6 Mid Year Balance =(L2+L5)/2 184,743 190,472 197,657 207,154
7 Accumulated Amortization
9 Add: Amortization Expense and True-Up 6,679 6,645 8,478 6,952
10 Less: Disposals and Transfers 0 (831) 0 0
11 Less: Site Restoration Expenses (460) (115) (166) 0
12 End of Year 91,877 97,576 105,888 112,839
13 Mid Year Balance = (L8+L12)/2 88,768 94,726 101,732 109,363
14 Mid Year Net Plant in Service (L6 - L13) 95,975 95,745 95,926 97,791
15 Add: Mid-Year Working Capital 12,499 13,553 13,208 13,633
16 Less: Mid Year Customer Contributions 8,298 8,595 9,937 12,275
17 Mid Year Rate Base 100,177 100,704 99,196 99,149
Notes
1. Gross Plant in Service and Accumulated amortization are net of Residual Heat.
2. Gross Plant in Service and Accumulated amortization reflect exclusion of the disallowed amount of $1.745 million from
4 utility plant in service per the URRC directive from the Final Report on QEC’s 2004/05 GRA.
5
1 Schedule 5.2
4
Line 2007/08 2008/09 2009/10 2010/11

No. Gross Plant by Major FERC Category Actual Actual Forecast Forecast
1 Diesel Plant
3 Add: Additions 2,272 2,928 8,458 8,539
4 Add/Less: Adjustments (3) (25) 0 0
5 Less: Disposals and Transfers 0 (1) 0 0
6 End of Year 145,784 148,686 157,144 165,683
9 Add: Additions 430 1,697 0 42
10 Add/Less: Adjustments 0 0 0 0
11 Less: Disposals and Transfers 0 0 0 0
12 End of Year 25,331 27,028 27,028 27,070
13 General Plant
15 Add: Additions 3,418 2,664 565 1,390
16 Add/Less: Adjustments (7) (3) 0 0
17 Less: Disposals and Transfers 0 (1,911) 0 0
18 End of Year 18,426 19,176 19,741 21,132

21 Add: Additions 0 0 0 0
22 Add/Less: Adjustments (1) 0 0 0
24 End of Year 1,211 1,211 1,211 1,211
26 Beginning of Year (2,956) (2,956) (2,956) (2,956)
27 Add: Additions 0 0 0 0
28 Add/Less: Adjustments 0 0 0 0
30 End of Year (2,956) (2,956) (2,956) (2,956)
31 Total Beginning of Year Gross Plant in Service 181,689 187,797 193,146 202,169
32 Total End of Year Gross Plant in Service 187,797 193,146 202,169 212,140
33 Total Mid-Year Gross Plant in Service 184,743 190,472 197,657 207,154
Notes
1. Gross Plant in Service is net of Residual Heat.
2. Gross Plant in Service reflects exclusion of the disallowed amount of $1.745 million from utility plant in service per the URRC directive from the Final Report on
5 QEC’s 2004/05 GRA.
6
7

1 Schedule 5.3
3 Accumulated Amortization
Line 2007/08 2008/09 2009/10 2010/11

No. Accumulated Amortization by Major FERC Category Actual Actual Forecast Forecast
1 Diesel Plant
3 Add: Amortization 5,127 5,143 6,069 5,582
4 Less: Disposals, Transfers and True ups 0 -1 0 0
5 Less: Site Restoration Expenses -339 -85 -123
6 End of Year 68,047 73,104 79,050 84,632
9 Add: Amortization 787 744 1,141 511
10 Less: Disposals, Transfers and True ups 0 0 0 0
11 Less: Site Restoration Expenses -78 -19 -28 0
12 End of Year 14,922 15,647 16,760 17,271
13 General Plant
15 Add: Amortization 777 805 1,225 913
16 Less: Disposals, Transfers and True ups 0 -830 0 0
17 Less: Site Restoration Expenses -43 -11 -15 0
18 End of Year 8,590 8,554 9,763 10,676

21 Add: Amortization 65 31 121 23
23 Less: Site Restoration Expenses 0 0 0 0
24 End of Year 1,115 1,147 1,268 1,291
26 Beginning of Year -719 -797 -875 -953
27 Add: Amortization -78 -78 -78 -78
29 End of Year -797 -875 -953 -1,031
30 Total Beginning of Year Accumulated Amortization 85,658 91,877 97,576 105,888
31 Total End of Year Accumulated Amortization 91,877 97,576 105,888 112,839
32 Total Mid-Year Accumulated Amortization 88,768 94,726 101,732 109,363
Notes
1. Accumulated amortization is net of Residual Heat.
2. Accumulated amortization reflects exclusion of amortization expenses of the disallowed amount of $1.745 million from utility plant in service per the URRC directive from the
4 Final Report on QEC’s 2004/05 GRA.

1
2 Schedule 5.4
4 Customer Contributions
5
Line 2007/08 2008/09 2009/10 2010/11

1 Customer Contributions Gross Plant
3 Add: Additions 444 1,336 2,647 3,188
5 End of Year 14,355 15,692 18,339 21,527
6 Customer Contributions Accumulated Amortization

8 Add: Amortization 566 619 679 480
9 Less: True-Up and Transfers 0 0 0 0
10 End of Year 6,119 6,738 7,418 7,897
11 Net Opening Customer Contribution 8,359 8,236 8,953 10,921
12 Net Ending Customer Contribution 8,236 8,953 10,921 13,630
13 Net Mid-Year Customer Contribution 8,298 8,595 9,937 12,275
Note
6 1. Customer Contributions and Accumulated Amortization of Customer Contributions are net of Residual Heat.
7
8
9

1 Schedule 5.5
3 Working Capital Requirement
4
Line 2007/08 2008/09 2009/10 2010/11

1 Cash Working Capital 3,014 3,257 3,263 3,529
2 Less: Mid-Year Deposits -762 -766 -764 -764
3 Add: Supplies Inventory

4 Beginning of Year 947 1,073 1,047 1,068
5 End of Year 1,073 1,047 1,068 1,089

6 Mid-Year Balance 1,010 1,060 1,057 1,079
7 Fuel Average Monthly Balance 8,468 9,292 8,880 9,086
8 Mid-Year Rent Prepayment 375 343 402 345
9 Mid-Year Insurance Prepayment 395 367 370 359
5 10 Total Mid-Year Working Capital Requirement 12,499 13,553 13,208 13,633

6
7
8

Schedule 5.6
1 Schedule 5.6
2 Qulliq Energy Corporation
2010/11 GENERAL 2010/11
RATEGeneral Rate Application
APPLICATION
3 2007/08
2007/08 Actual CASH
ACTUAL Cash Working
WORKING Capital
CAPITAL
4 (in thousands of dollars)
Line Year End Daily Net Lag Cash Working

No. Balance Expense Days Capital
1 Salaries and Wages 17,747 49 14.63 711

2 Fuel and Lubricants 37,664 103 14.63 1,510
3 Supplies and Services 14,155 39 14.63 567
4 Travel and Accomodation 3,332 9 14.63 134
5 Total 2007/08 Actual Expenses 72,899 200 2,922
6 GST Expenditure Lag 3,171 9 14.87 129

7 GST Remittance Lag 4,134 11 (3.30) -37
8 Total 2007/08 Actual GST 92
9 Total Cash Working Capital 3,014

5

1 Schedule 5.7 Schedule 5.7

2 QULLIQ ENERGY
Qulliq Energy Corporation CORPORATION
2010/11 General Rate Application
2010/11 GENERAL RATE APPLICATION
3 2008/09 Actual Cash Working Capital
2008/09 ACTUAL CASH WORKING CAPITAL
4 (in(in
thousands of of
thousands dollars)
dollars)


5 Total 2008/09 Expenses 79,038 217 3,168

8 Total 2008/09 GST 89
9 Total Cash Working Capital 3,257

1 Schedule 5.8
3 2009/10 Forecast Cash Working Capital


5 Total 2009/10 Forecast Expenses 79,254 217 3,177

8 Total 2009/10 Forecast GST 86
4 9 Total Cash Working Capital 3,263

1 Schedule 5.9
3 2010/11 Forecast Cash Working Capital


5 Total 2010/11 Forecast Expenses 85,900 235 3,434

8 Total 2010/11 Forecast GST 95
4 9 Total Cash Working Capital 3,529

5

1 6.0 RESPONSE TO URRC DIRECTIVES
2 6.1 INTRODUCTION
3 This chapter sets out QEC’s responses to Directives issued to QEC by the URRC as
4 part of the 2004/05 GRA that were to be completed before or at the time of the next
5 GRA.
6 A summary of each of the URRC’s Directives is provided along with the Corporation’s
7 Responses.
8 6.2 RESPONSE TO URRC DIRECTIVES
9 6.2.1 COMMUNITY CONSULTATIONS
10 The URRC expects that prior to QEC filing its next GRA, QEC will have
11 community consultations with its customers and directs QEC to provide, as part
12 of its next GRA, commentary concerning the process and results of these
13 community consultations.
14 QEC recognizes the importance of undertaking consultation with its customers in
15 advance of the GRA filing and developed a communication plan. The purpose of the
16 communication plan was to provide information on the Application to the public and
17 provide an opportunity for interested parties to ask questions about the process. The
18 communication plan included in the following elements:
19 On December 14, 2009, QEC published a press release giving advance notice that a
20 GRA would be filed in 2010. Within this press release, QEC informed the public of the
21 following:
Chapter 6: Response to URRC Directives Page 6-1

1  An information letter will be included in the next month’s power bills;
2  A GRA webpage has been established on QEC’s website at
3 www.nunavutpower.com; and
4  A “one point of contact” has been established for GRA related issues
5 - GRA Contact: Darryl Taylor 867-979-7527
6 Email: GRA@npc.nu.ca
7 On May 14, 2010, QEC delivered a presentation on the GRA Process at the AGM of the
8 Baffin Region Chamber of Commerce.
9 In early June 2010, QEC published a Q&A segment on the GRA in local newspapers.
10 6.2.2 EXCLUDE $1.745 MIL FROM PLANT IN SERVICE
11 QEC is directed to exclude the disallowed amount of $1.745 million from utility
12 plant in service, in future General Rate Applications.
13 These amounts have been excluded from the calculation of QEC’s ratebase, as
14 reflected in schedules 5.1-5.3.
15 6.2.3 SOFTWARE COST
16 However, QEC is directed to address the prudence of all software costs included
17 in plant in service at the time of the next GRA.
18 The software costs included in the Corporation’s plant in-service in 2010/11 test year
19 are provided in Table 6.1 below.

2 Table 6.1
3 Software Costs Included in QEC’s 2010/11 Plant-in-Service ($000s)
4
In-Service Accumulated
Description FERC Cost Closing NBV
Date Amortization
Engineering Software 391 31/03/2004 38.2 21.5 16.7

Great Plains Software 391 31/03/2005 594.6 289.9 304.7
Penny B.L. Payroll Software 391 31/03/2009 178.2 33.5 145.0
HR Software 391 31/03/2009 23.2 4.3 18.8
5 Electronic Document Management System 391 31/03/2011 350.0 0.0 350.0
7 Software included in ratebase is in-service, used and useful in the test-year.
8 Engineering Software is used for power generation monitoring; Great Plains is the
9 finance accounting software; Penny B.L and HR software are the Corporation’s payroll
10 and benefits software. Electronic Document Management System is software which will
11 be used in streamlining and management of the Corporation’s electronic documents.
12 6.2.4 LEAD LAG STUDY
13 Accordingly, QEC is directed to file a lead lag study supporting the cash expense
14 component of working capital at the next GRA. This study should reflect QEC’s
15 best practice policies regarding management of working capital.
16 The lead lag study is provided in Appendix D. The study reflects QEC’s practices with
17 respect to managing working capital.
18 6.2.5 RESERVE FOR INJURIES AND DAMAGES (UNINSURED LOSSES)
19 The URRC directs QEC to adopt the above definition for uninsured losses for the
20 purposes of recording uninsured losses.

1 For Financial Reporting purposes, the Corporation has not been maintaining a deferral
2 account for reserve for injuries and damages (RFID). With the impending transition to
3 PSA, the Corporation is not applying to continue the RFID. For the purposes of this
4 GRA, the Corporation is providing a continuity schedule in Table 6.2 showing the
5 balances arising from the 2004/05 GRA.
6 Table 6.2
7 Reserve for Injuries and Damages Continuity Schedule ($000s)
8
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
Beginning of Year 300 450 600 750 900 1050 1200
Addition 150 150 150 150 150 150
Actual/Forecast Expense
9 Closing Balance 450 600 750 900 1050 1200 1200

10
11 6.2.6 RATE HEARING RESERVE
12 The Corporation is directed to record all external hearing costs incurred with
13 respect to these proceedings against the reserve when they become known.
14 For Financial Reporting purposes, the Corporation has not been maintaining a deferral
15 account for the rate hearing reserve. With the impending transition to PSA, the
16 Corporation is not applying to continue the Rate Hearing Reserve. For the purposes of
17 this GRA, the Corporation is providing a continuity schedule in Table 6.3 showing the
18 balances arising from the 2004/05 GRA. The Corporation estimates that GRA costs for
19 the 2010/11 GRA will amount to approximately $1.0 million. These amounts have not
20 been included in O&M expenses for the 2010/11 GRA, but instead will be charged, for

1 regulatory purposes, to the Rate Hearing Reserve. The Corporation has not included
2 any allowance for an appropriation to the Rate Hearing Reserve in the 2010/11 GRA.
3 Table 6.3
4 Hearing Reserve Continuity Schedule ($000s)
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
Beginning of Year 300 400 500 600 700 800 736
Addition 100 100 100 100 100 100
Actual/Forecast Expense -164 -836
5 Closing Balance 400 500 600 700 800 736 -100

6
7 6.2.7 AMORTIZATION STUDY (INCLUDING ASSET RETIREMENT OBLIGATION

8 STUDY)
9 The URRC directs that QEC conduct an amortization study prior to the end of
10 March 31, 2006 for presentation in the next GRA. The amortization study should
11 specifically include factors that are common to QEC’s operating territory in the
12 determination of the proposed lives and net salvage.
13 The amortization study report is provided in Appendix C.
14 6.2.8 AMORTIZATION RATE
15 However the URRC directs QEC to use the correct amortization rate for
16 contributions at the time of the next GRA.
17 The calculation of QEC’s ratebase in the current application reflects the correct
18 amortization rate for contributions.
19 6.2.9 ALTERNATIVE ENERGY STUDY
20 The following directions are therefore provided for the treatment of the cost of
21 funding alternative energy studies:

1  QEC should develop policies and guidelines specifying the nature of
2 studies that will qualify as alternate energy studies, consistent with the
3 purposes of QEC as a regulated utility providing electricity and heat
4 services.
5  Prudent expenditures on alternative energy projects may be treated as part
6 of the corporation’s regulated costs for ratemaking purposes.
7  AFUDC may be earned by the Corporation on the mid year balance of
8 prudent expenditures charged to the alternative energy deferral account if
9 the project extends beyond one year.
10  If a project that is investigated proves viable the costs should be added to
11 the capital cost of the relevant alternative energy project.
12  If a project that is investigated proves not viable the costs should be
13 amortized over a reasonable period.
14 QEC’s practice since the last GRA with respect to accounting for alternative energy
15 studies is as follows:
16 1. If the project proves viable and results in a capital project, the costs of the
17 feasibility study are capitalized as part of the project costs.
18 2. If the project does not proceed to a capital project, amounts related feasibility
19 studies are expensed (i.e. not capitalized).

1 6.2.10 FUTURE REMOVAL AND SITE RESTORATION EXPENDITURES
2 The URRC directs QEC to provide a detailed study of the potential liability on the
3 part of QEC with respect to future removal and site restoration expenditures,
4 including a risk assessment of unknown contingencies, at the time of the next
5 GRA.
6 With the impending transition to PSA, QEC’s amortization study does not reflect an
7 allowance for future removal and site restoration expenses. QEC prepared a preliminary
8 assessment of a potential Asset Retirement Obligation (“ARO”) for diesel fuel
9 contamination but has not included any associated costs in the calculation of its
10 revenue requirement for 2010/11.
11 6.2.11 RATE STABILIZATION FUND
12 QEC is directed to adopt the following procedures with respect to implementation
13 of the rate stabilization fund and adjustment mechanism:
14  The balance in the rate stabilization fund as of April 1, 2005 shall be zero;
15  The amount charged or credited in each month to the fund will reflect the
16 following adjustment formula for each community:
17 - Actual or forecast generation in Kwh/Last URRC approved efficiencies
18 in Kwh per liter* (Actual price per liter-forecast price per liter);
19  Interest shall be charged or deducted from the rate stabilization fund
20 balance based on short term interest rates;

1  If at any point in time the forecasts indicate the fund balance will exceed
2 the threshold of plus or minus $1 million within a six month period the
3 Corporation shall apply to the Responsible Minister for approval of a
4 Nunavut wide fuel rider designed to recover or refund the balance in the
5 fund over a suitable period targeting a zero balance at the end of the above
6 mentioned six month period, when recovery or refund is complete; and
7  To the extent accommodated by the corporation’s billing system, the
8 Nunavut wide fuel rider shall be an across the board percent rider. This will
9 provide for a proportionate increase or decrease in costs for all
10 communities and rate classes.
11 QEC regularly files with the URRC the Rate Stabilization Fund application consistent
12 with the above procedures. The past filing dates of the application are provided in Table
13 6.4 below.

1 Table 6.4
2 Rate Stabilization Fund Application Filing Dates
3
Filing Date Cover Period Rider Approved
February 17, 2006 Apr. 1, 2006 - Sep. 30, 2006 3.98 Cents
September 20, 2006 Oct. 1, 2006 – Nov. 31, 2006 3.98 Cents
October 26, 2006 Nov. 1, 2006 - Mar. 31, 2007 7.87 Cents
March 2, 2007 Apr. 1, 2007 - Oct. 31, 2007 6.65 Cents
October 23, 2007 Nov. 1, 2007 - Oct. 31, 2008 6.40 Cents
June 19, 2008 Jul. 1, 2008 - Jan. 31, 2009 12.52 Cents
January 16, 2009 Feb. 1, 2009 - Jun. 30, 2009 12.52 Cents
Jul. 1, 2009 - Sep.30, 2009 7.96 Cents
June 17, 2009
Oct. 1, 2009 - Dec. 31, 2009 4.68 Cents
4 December 17, 2009 Jan.1, 2010 - Sep. 30, 2010 4.68 Cents
5
6 6.2.12 FOLLOW-UP WITH EXTERNAL REVIEW
7 Accordingly the URRC directs QEC to provide the following information on or
8 before September 30, 2005 following completion of the review referred to in
9 section 6.1.2 of this Report:
10  Detailed report on the corporation’s financing plan following
11 implementation of the 15% increase in rates recommended herein and an
12 assessment of the corporation’s financial position in 2005/06 assuming the
13 increases determined in this report on a preliminary basis are
14 implemented.
15  Detailed report of forecast salaries and wages by function (Finance,
16 Engineering, Operations etc) for 2004/05 and 2005/06 budgets, providing
17 budget type justification for the prudent level of FTEs by category (Union,

1 Excluded, Beneficiaries under the Land Claims Agreement) and the prudent
2 levels of regular salaries and wages, overtime, casual labour, charged out
3 labour (including capitalized labour) and fringe benefits required for the
4 provision of electricity and residual heat services in Nunavut in an efficient
5 and cost effective manner. In discussing fringe benefits and beneficiary
6 employment the matter of any shared responsibility on the part of other
7 levels of Government must be addressed. The report should identify
8 charges to affiliates if QEC employees perform services for affiliates of the
9 corporation.
10  A detailed report of supplies and services providing an overview of the
11 elements comprising this expense category including planned
12 maintenance, other maintenance and housing expense for 2004/05 and
13 2005/06 budgets. More specific details should be provided on the following:
14 a) A detailed report on planned maintenance expenditures carried
15 out/forecast in accordance with maintenance cycles on diesel plant and
16 distribution plant in each year from 2001/02 to 2004/05, 2005/06 budgets.
17 The report should identify any planned maintenance deferred from one
18 year to the next. The planned maintenance report should address how
19 the deterioration in reliability levels discussed in section 14.1 of this
20 report will be addressed.
21 b) A detailed report of housing expenditures explaining the relationship
22 between housing expense and staffing levels and further explaining the

1 changes in the level of this category of expense from year to year from
2 2001/02 to 2004/05 and 2005/06 budgets.
3  A detailed report of travel and accommodations expense, explaining the
4 changes in the components of this category of expense from year to year,
5 from 2001/02 to 2004/05 and 2005/06 budgets. The report should address
6 the prudent level of medical travel expense in light of any contributory
7 responsibility on the part of the territorial or Federal Governments.
8 In response to the above directives, the Corporation filed an Application on May 8,
9 2006.
10 6.2.13 RATE AVERAGING OR LEVELIZING RATES
11 The URRC considers further study and assessment of rate averaging
12 mechanisms is needed and therefore directs QEC to address alternative
13 mechanisms for rate averaging or levelizing rates at the next GRA. In responding
14 to this direction QEC should specifically address how any potential rate shock to
15 customers as a result of this move to averaging of costs among communities will
16 be mitigated. QEC should also have regard to community and customer input
17 when responding to this direction.
18 Since the Division from the Northwest Territories, QEC’s base rates have been adjusted
19 three times. Two of these rate adjustments were applied as across-the-board
20 percentage increases to customer classes across communities:

1  A 16.51% increase to residential, 16.49% increase to commercial and 15.0%
2 increase to streetlight base energy rates implemented effective April 1, 2005
3 following the Corporation’s 2004/05 GRA.
4  A 5.91% increase to base energy rates for Residential and Commercial
5 customers and a 5.44% increase to street lighting customers effective October 1,
6 2006.
7 Certain adjustments to base rates were implemented on November 1, 2005 in order to
8 address substantially higher than average capital costs in Kimmirut and Whale Cove. 13
9 In its final report to the Minister on QEC’s 2004/05 General Rate Application, the URRC
10 stated:
11 “The URRC considers it appropriate to move towards some form of rate
12 averaging among communities so as to minimize the rate impact on smaller
13 communities when their plant needs to be upgraded or replaced. However, the
14 URRC also believes the relationship between costs incurred at the community
15 level and the rates should not be completely obscured by any rate averaging
16 mechanism. In other words the price signals to customers for electricity service
17 should, among other rate design criteria, reflect the costs of producing and
18 distributing that service”14.
13
URRC Report to the Minister Responsible for the Qulliq Energy Corporation. September 29, 2005.
14
Page 75. URRC Report to the Minister Responsible for the Qulliq Energy Corporation. February 18, 2005.

1 In preparing its Phase I Application, QEC conducted a review of rate averaging and rate
2 levelization mechanisms in other jurisdictions in Canada, focussing on vertically
3 integrated Crown utilities and utilities that serve isolated diesel communities. Results of
4 this investigation are summarized below:
5 Yukon Energy Corporation provides service to customers in the same class at the
6 same rates throughout the territory for the first 1000 kW.h per month for residential
7 customers and 2000 kW.h per month for commercial customers.
8 Northwest Territories Power Corporation at present maintains a community based
9 rate structure. However, the Government of the Northwest Territories has indicated its
10 intent to implement a zoned rate structure based on generation source. Within each rate
11 zone, rates would be the same for non-government customers in the same class in all
12 communities. The transition to this rate structure is expected to be completed in 2010.
13 BC Hydro charges levelized rates for all customers throughout the interconnected
14 service area. Residential customers in Zone II (the Non-Integrated Area) are charged
15 energy rates for a first block of power that are approximately 16 per cent higher than the
16 integrated service area rates, but still substantially lower than the full embedded cost of
17 diesel generation. There is no difference in commercial rates for a first block of power
18 for customers in Zone I and Zone II.
19 SaskPower in Saskatchewan maintains two rate categories – urban and rural. The
20 difference in the residential rates from urban to rural is $7.25 in the basic monthly
21 charge and $0.0027/kW.h in the energy charge. However, the rural category applies to
22 all residential customers not in an urban area without distinction as to grid-serviced or

1 diesel-serviced for the first 650 kW.h, with balance being charged at a $0.2785/kW.h
2 higher energy rate for customers in diesel-serviced areas. For commercial customers
3 not in an urban area, the rural category applies without distinction as to grid-serviced or
4 diesel-serviced area.
5 Manitoba Hydro has uniform rates for residential and general service customers
6 throughout its interconnected service area as required by legislation. Customers in
7 remote diesel communities are charged the same rates as interconnected customers for
8 the first (900 kW.h) and second (next 1,100 kW.h) blocks for residential class and for
9 the first 2,000 kW.h per month for commercial class.
10 Hydro-Quebec offers the same rates to customers in the same class without distinction
11 as to interconnected or non-interconnected systems.
12 New Brunswick Power maintains an urban/rural rate; however the only difference is
13 $1.9 in the basic monthly charge (rural is $1.9 higher per month higher than urban).
14 NALCOR (formerly Newfoundland and Labrador Hydro) provides service to residential
15 and commercial customers in its isolated communities at the same rates as customers
16 in the interconnected communities for the first 1000 kW.h in December, January and
17 February, 900 kW.h in March, April and November, 800 kW.h in May, June and
18 October, and 700 kW.h in July, August and September.
19 Based on this review, QEC notes that most Crown utilities in Canada maintain a rate
20 structure that levelizes rates for service throughout their service area (both
21 interconnected and non-interconnected) for at least a portion of each customer’s

1 electricity use. As a result of this review, QEC elected to review two potential rate
2 averaging mechanisms for implementation at the time of QEC’s Phase II rate
3 application:
4 1. Transition to Territory-wide Levelized Rates – This would involve transition to
5 a single rate schedule for all customers in the same rate class.
6 2. Community Based Rates with a Capital-Asset Based Averaging Mechanism
7 - Similar to the method used for implementing the November 2005 rate
8 adjustments.
9 In evaluating each of these potential rate design options, QEC considered three primary
10 criteria:
11 1. Fairness to Customers: In QEC’s view, access to electricity is a basic need for
12 customers in Nunavut. Levelized rates would better reflect the role of electricity in
13 Nunavut.
14 2. Consistency with Other Jurisdictions: Based on its review, QEC notes that
15 most regulated Crown utilities in Canada maintain some form of levelized rates
16 for at least a portion of the customer’s load. By contrast, QEC is not aware of any
17 other regulated Crown utility in Canada that implements a rate similar to the
18 capital-based averaging mechanism.
19 3. Administrative Ability to Implement: At present, QEC’s accounting system is
20 not set up to track common costs (such as engineering salaries for positions
21 located in Iqaluit) separately from plant specific costs (such as plant operator

1 positions located in Iqaluit). This imposes a major limitation on QEC’s ability to
2 implement a community-based cost-of-service study. In QEC’s view the cost to
3 undertake a community-based cost-of-service study would be prohibitive and not
4 provide substantial benefits to customers.
5 4. Price Signals to Customers: It is generally accepted that community-specific
6 rates provide an enhanced price-signal to customers. However, this is valuable
7 only to the extent that customers are able to respond to the price signal.
8 Based on this evaluation, QEC’s preferred rate design would be to transition to
9 Territory-wide Levelized Rates. Regardless of the rate design method chosen, QEC
10 notes that the revenue requirement increases requested in this application make it
11 impractical to undertake rate rebalancing at the same time as implementing the overall
12 higher level of rates. QEC therefore seeks a recommendation from the URRC to the
13 Minister that QEC, as part of its Phase II rate application, develop a plan to transition to
14 Territory-wide Levelized Rates.
15 6.2.14 CAPITAL STABILIZATION FUND
16 Accordingly, the URRC directs QEC to propose a capital stabilization fund as an
17 interim mechanism for the purpose of mitigating the high rates for certain
18 communities resulting from the community based rate structure. The fund
19 mechanics should be worked out by QEC and forwarded to the Minister for
20 approval within 90 days of the release of this Report. URRC notes this fund
21 adjustment will result in somewhat higher than average increases for customers
22 in certain communities.

1 In response to the above directive, the Corporation filed a Capital Stabilization Fund
2 application on May 30, 2005. The URRC final report on the Application was issued on
3 December 16, 2005.
4 6.2.15 RATE AVERAGING IN RESPITE TO THE CAPITAL STABILIZATION FUND
5 As part of the response to the direction concerning a capital stabilization fund
6 QEC is also directed to address, taking into account the URRC’s comments in
7 this section concerning rate averaging, the approach to adjusting rates if an
8 additional increase as discussed in section 12.1, effective April 1, 2006, were to
9 be recommended by the URRC and approved by the responsible Minister.
10 In response to the above directive, the Corporation filed a Capital Stabilization Fund
11 application on May 30, 2005. The URRC final report on the Application was issued on
12 December 16, 2005.
13 6.2.16 COST OF SERVICE STUDY
14 However, URRC considers a fully allocated cost of service study should be
15 provided as part of the next GRA and directs QEC to do so.
16 QEC will address matters related to a cost-of-service study as part of its Phase II
17 Application.
18 6.2.17 TWO PHASE APPLICATION
19 The URRC recognizes a fully allocated cost of service study cannot be
20 meaningfully examined until there is resolution on the issue of rate averaging
21 among communities. To address this matter the URRC recommends the following
22 sequencing of the next GRA. The response to the URRC’s direction on rate

1 averaging options should be provided as part of a separate phase I application
2 for consideration of revenue requirement and rate averaging mechanisms. The
3 revenue requirement and rate averaging mechanism approved by the URRC in
4 phase I will then form the basis for cost allocations to customer classes and rate
5 design in a phase II application. Accordingly, the URRC directs QEC to follow the
6 above sequence of proceedings for the next GRA.
7 QEC has outlined a recommended rate design approach in section 6.1.13 above. QEC
8 expects that a Phase II application could be completed approximately 6 months after a
9 final report from the URRC on QEC’s Phase I application is received.
10 6.2.18 CUSTOMER DEPOSITS
11 However, the URRC directs QEC to address the appropriateness and feasibility of
12 investing customer deposits in commercial paper short term investments at the
13 time of the next GRA. At the same time QEC should address the appropriate rate
14 of interest to be paid on customer deposits and the appropriate working capital
15 treatment of deposits.
16 In the Corporation’s view, customer deposits are relatively small amounts, which range
17 from $150 to $300. The daily interest savings rate is more appropriate to these amounts
18 than a commercial paper short term interest rate. QEC deposits the security deposits in
19 the Corporation’s receipts account and uses them as cash flow from operations. In
20 QEC’s view the costs to manage these deposits through a short-term paper investment
21 would heavily out-weight any potential benefit to ratepayers. QEC did make inquiries
22 and the possible investment options offered are outlined in the Appendix F. However,

1 QEC is not proposing any changes to its current practice with respect to customer
2 deposits.
3 6.2.19 SERVICE CONNECTION FEE
4 The URRC directs QEC to address the cost basis for service connection fees at
5 the time of the next GRA.
6 QEC will address matters related to service connection fees as part of its Phase II
7 Application.
8 6.2.20 RELIABILITY STATISTICS (PLANNED AND UNPLANNED OUTAGE REPORT)
9 The URRC directs QEC to immediately commence collecting quarterly statistics,
10 by region and by community, for both planned and unplanned outages and report
11 those statistics collected to the point in time of the filing of their next GRA.
12 6.2.21 RELIABILITY MEASURES
13 Accordingly, the URRC directs QEC to recommend appropriate target measures
14 for reliability having regard to industry standards, at the next GRA.
15 The Corporation has started collecting quarterly statistics for both planned and
16 unplanned outages per the above directive. Quarterly statistics and report by region and
17 by community for both planned and unplanned outages for the period of 2005/06-
18 2008/09 is provided in Appendix G.

1 6.2.22 CUSTOMER COMPLAINTS
2 Accordingly, QEC is directed to commence maintaining a complaints log for
3 recording customer complaints by complaint category and explain how each
4 complaint was resolved.
5 QEC is committed to providing excellent service to its customers. In order to ensure
6 customer comments are addressed, QEC has established the following comments
7 tracking protocol:
8 A 1-800 phone number has been established that appears on all customer utility bills
9 and reads “IF YOU HAVE ANY QUESTIONS PLEASE CALL: 1-866-710-4200”. To help
10 the proper flow of customer comments, QEC has set up the following procedure:
11 1. QEC has designated one person in the Baker Lake Office who will be directly
12 responsible for the complaints log. This is our first response member to a
13 complaint.
14 2. The 1-800 number is answered by the front desk receptionist. If a customer has
15 a complaint and asked for a specific person, the receptionist will forward it. This
16 person will log the complaint with comments on it, how it was handled and
17 resolved. The receptionist will then forward a copy to the Complaints Coordinator
18 (above) who will log it into the register. This form is available on the Intranet.
19 3. If a customer calls in and does not ask for a specific person; the front desk
20 receptionist will forward it directly to the Customer Service Complaints

1 Coordinator who will follow the above procedure and help rectify the problem or
2 handle the complaint.
3 4. This procedure has been documented, discussed with the staff and now is part of
4 our every day responsibilities.
5 The “Customer Complaint Form” is provided in Appendix H.
6 6.2.23 SERVICE QUALITY MEASURES AND REPORTING (INDUSTRY STANDARDS)
7 The URRC directs QEC to institute the above service quality measures for
8 monitoring and reporting service quality and customer satisfaction levels, as
9 soon as possible and in any event no later than April 1, 2006.
11 QEC is directed to report to the URRC at the time of the next GRA on the service
12 quality and customer satisfaction measures so implemented and the date
13 implemented.
15 QEC is also directed to recommend appropriate targets for performance and
16 service quality measures having regard to industry standards, at the next GRA.
17 QEC understands the importance of service quality measurement and reporting. To
18 date QEC has not undertaken or implemented a service quality monitoring and reporting
19 program as contemplated by the URRC. QEC plans to undertake an initial study of
20 measurement and reporting done by other Northern utilities and based on the findings
21 will consider developing a Service Quality measurement plan.

1 6.2.26 DISTRICT HEATING COST STUDY
2 Accordingly, the URRC directs QEC to prepare a fully allocated cost study at the
3 time of the next GRA, showing the costs applicable to district heating and those
4 applicable to electrical service customers in those communities where district
5 heating service is offered.
6 QEC has developed an approach for this Phase I GRA to segregate out district heating
7 expenses from the revenue requirement for the electricity operations as follows:
8 1. District Heating or Residual Heat assets have been separately coded in QEC’s
9 code of accounts. Residual heat assets have been excluded from the calculation
10 of QEC’s rate base, as outlined in Table 6.5 below.
11 Table 6.5
12 2010/11 Gross Plant in Service and Accumulated Amortization
13 Adjustment To Residual Heat Assets Exclusion ($000s)
14
2010/11 Less: 2010/11
Forecast Residual Forecast Mid-Year
Mid-Year * Heat Net of Residual Heat
Gross Plant in Service 221,447 14,292 207,154
Accumulated Amortization 115,133 5,770 109,363
Net Gross Plant in Service 106,314 8,523 97,791
Note:
* 2010/11 Forecast Mid-Year Gross Plant in Service and Accumulated Amortization reflect exclusion of the disallowed
amount of $1.745 million from utility plant in service per the URRC directive from the Final Report on QEC’s 2004/05
15 GRA.
16
17 2. QEC has prepared estimates of operations and maintenance expenses related to
18 residual heat operations for the 2010/11. These amounts have been excluded

1 from the calculation of QEC’s revenue requirement as illustrated in Table 6.6
2 below.
3 Table 6.6
4 2010/11 Forecast O&M Budget Adjustment
5 for Residual Heat Related Expenses ($000s)
6
2010/11 Less: 2010/11
Budget Residual Heat Forecast
Forecast O&M Net of Residual Heat
Salaries and Wages 22,387 94 22,294

Supplies and Services 18,065 30 18,035
Travel and Accommodation 4,054 0 4,054
7 Total O&M Expense 44,506 124 44,383
8
9 6.2.27 TREATMENT OF FUTURE INDUSTRIAL CUSTOMERS
10 The URRC also considers, consistent with the practice in other jurisdictions, the
11 revenues and costs resulting from industrial contracts should be included in the
12 corporation’s revenue requirement and revenues, and must be subject to review
13 at the time of QEC’s subsequent GRAs. The URRC considers any contractual
14 rates established with large industrial customers should reflect the principles of
15 cost causation including an allocation of shared costs. QEC is directed to reflect
16 the foregoing principles in any future filings and in contractual arrangements with
17 large industrial customers.
18 At present QEC does not have any industrial customers and none are forecast for the
19 test period.

APPENDIX A
SUMMARY OF GENERATION, SALES AND REVENUE

Schedule A-1
Qulliq Energy Corporation
Summary of Generation, Sales, and Revenue
500 Total of Kitikmeot Area
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 8,110 9,393 9,630 9,574 9,718 9,718
2 Customers 1,786 1,562 1,586 1,617 1,641 1,641
3 Av. MWh Sales/Cust. 4.54 6.01 6.07 5.92 5.92 5.92
4 Revenue (000s) 5,437 6,231 6,349 6,489 6,588 8,337
5 Cents/kWh 67.04 66.34 65.93 67.78 67.79 85.79
Commercial
6 Sales (MWh) 11,346 11,877 12,078 12,419 12,770 12,770
7 Customers 491 501 518 575 590 590
8 Av. MWh Sales/Cust. 23.11 23.71 23.32 21.60 21.64 21.64
9 Revenue (000s) 6,648 6,995 7,070 7,145 7,336 9,413
10 Cents /kWh 58.59 58.90 58.54 57.53 57.44 73.71
Streetlights
11 Sales (MWh) 338 348 348 348 348 348
12 Revenue (000s) 231 247 242 247 247 314
13 Cents /kWh 68.51 70.99 69.67 70.99 70.92 90.23
Total
14 Sales (MWh) 19,794 21,617 22,055 22,341 22,836 22,836
15 Customers 2,277 2,063 2,104 2,192 2,232 2,232
16 Revenue (000s) 12,316 13,473 13,661 13,881 14,171 18,064
17 Cents /kWh 62.22 62.32 61.94 62.13 62.05 79.10
GENERATION (MWh)
18 Total Station Service 393 480 500 500 500 500
19 Total Losses 1,416 1,281 1,583 1,604 1,641 1,641
20 Losses - % of Gen. 6.6% 5.5% 6.6% 6.6% 6.6% 6.6%
Source
24 Liters (000s) 5,907 6,464 6,909 6,739 6,886 6,886
Peak
25 Peak Load (KW) 4,363 4,507 4,890 4,952 5,061 5,061
26 Load Factor 57% 59% 56% 56% 56% 56%
Appendix A-1
Schedule A-1.1
501 Cambridge Bay
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,639 3,092 3,143 3,162 3,210 3,210
2 Customers 632 515 518 531 539 539
3 Av. MWh Sales/Cust. 4.18 6.00 6.07 5.95 5.95 5.95
4 Revenue (000s) 1,492 1,723 1,760 1,752 1,779 2,279
5 Cents/kWh 56.54 55.72 55.99 55.41 55.41 71.01
Commercial
6 Sales (MWh) 4,784 4,985 5,129 5,247 5,455 5,455
7 Customers 175 191 201 211 219 219
8 Av. MWh Sales/Cust. 27.34 26.10 25.52 24.87 24.87 24.87
9 Revenue (000s) 2,238 2,364 2,418 2,406 2,501 3,270
10 Cents /kWh 46.77 47.43 47.15 45.86 45.86 59.94
Streetlights
11 Sales (MWh) 106 118 118 118 118 118
12 Revenue (000s) 57 65 65 65 65 84
13 Cents /kWh 54.17 54.76 54.76 54.76 54.76 70.94
Total
14 Sales (MWh) 7,529 8,195 8,390 8,526 8,783 8,783
15 Customers 807 706 719 742 758 758
16 Revenue (000s) 3,787 4,152 4,243 4,223 4,345 5,633
17 Cents /kWh 50.30 50.66 50.57 49.52 49.47 64.14
GENERATION (MWh)
18 Station Service 99 185 156 156 156 156
19 Losses 466 365 603 612 631 631
20 Losses - % of Gen. 5.8% 4.2% 6.6% 6.6% 6.6% 6.6%
Source
24 Liters (000s) 2,194 2,408 2,599 2,552 2,628 2,628
Peak
25 Peak Load (KW) 1,629 1,564 1,790 1,819 1,872 1,872
26 Load Factor 57% 64% 58% 58% 58% 58%
Appendix A-2
Schedule A-1.2
502 Gjoa Haven
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,460 1,742 1,803 1,789 1,813 1,813
2 Customers 313 276 281 287 291 291
3 Av. MWh Sales/Cust. 4.66 6.31 6.42 6.24 6.24 6.24
4 Revenue (000s) 974 1,142 1,165 1,205 1,221 1,546
5 Cents/kWh 66.72 65.53 64.65 67.34 67.34 85.29
Commercial
6 Sales (MWh) 1,609 1,880 1,837 1,952 2,002 2,002
7 Customers 79 72 75 87 89 89
8 Av. MWh Sales/Cust. 20.36 26.12 24.49 22.44 22.44 22.44
9 Revenue (000s) 1,013 1,171 1,129 1,204 1,235 1,578
10 Cents /kWh 62.95 62.28 61.45 61.70 61.70 78.81
Streetlights
11 Sales (MWh) 72 77 77 77 77 77
12 Revenue (000s) 53 55 51 55 55 70
13 Cents /kWh 73.64 71.74 65.76 71.74 71.74 91.20
Total
14 Sales (MWh) 3,140 3,700 3,717 3,819 3,892 3,892
15 Customers 392 348 356 374 380 380
16 Revenue (000s) 2,039 2,368 2,345 2,465 2,512 3,194
17 Cents /kWh 64.95 64.00 63.09 64.55 64.53 82.07
GENERATION (MWh)
18 Station Service 96 124 115 115 115 115
19 Losses 341 184 268 275 281 281
20 Losses - % of Gen. 9.5% 4.6% 6.5% 6.5% 6.5% 6.5%
Source
24 Liters (000s) 975 1,094 1,239 1,170 1,192 1,192
Peak
25 Peak Load (KW) 712 720 800 821 837 837
26 Load Factor 57% 64% 58% 58% 58% 58%
Appendix A-3
Schedule A-1.3
503 Taloyoak
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,099 1,310 1,367 1,353 1,374 1,374
2 Customers 234 210 211 211 214 214
3 Av. MWh Sales/Cust. 4.70 6.23 6.48 6.41 6.41 6.41
4 Revenue (000s) 813 952 1,003 1,050 1,066 1,340
5 Cents/kWh 73.98 72.70 73.37 77.62 77.62 97.58
Commercial
6 Sales (MWh) 1,380 1,312 1,403 1,405 1,419 1,419
7 Customers 65 73 74 96 97 97
8 Av. MWh Sales/Cust. 21.23 17.97 18.96 14.64 14.64 14.64
9 Revenue (000s) 982 960 1,021 1,003 1,012 1,278
10 Cents /kWh 71.16 73.18 72.77 71.34 71.34 90.09
Streetlights
11 Sales (MWh) 57 56 56 56 56 56
12 Revenue (000s) 39 46 46 46 46 58
13 Cents /kWh 68.46 81.04 81.04 81.04 81.04 102.30
Total
14 Sales (MWh) 2,536 2,678 2,827 2,815 2,849 2,849
15 Customers 299 283 285 307 311 311
16 Revenue (000s) 1,834 1,958 2,070 2,099 2,124 2,676
17 Cents /kWh 72.32 73.11 73.23 74.55 74.56 93.94
GENERATION (MWh)
18 Station Service 51 60 72 72 72 72
19 Losses 104 164 103 103 104 104
20 Losses - % of Gen. 3.9% 5.6% 3.4% 3.4% 3.4% 3.4%
Source
24 Liters (000s) 741 804 862 834 844 844
Peak
25 Peak Load (KW) 525 610 650 647 655 655
26 Load Factor 59% 54% 53% 53% 53% 53%
Appendix A-4
Schedule A-1.4
504 Kugaaruk
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 798 973 996 981 1,007 1,007
2 Customers 157 143 154 170 175 175
3 Av. MWh Sales/Cust. 5.08 6.81 6.47 5.77 5.77 5.77
4 Revenue (000s) 683 826 790 838 860 1,076
5 Cents/kWh 85.55 84.89 79.29 85.46 85.46 106.86
Commercial
6 Sales (MWh) 1,067 1,148 1,140 1,186 1,228 1,228
7 Customers 48 50 52 54 56 56
8 Av. MWh Sales/Cust. 22.23 22.97 21.92 21.96 21.96 21.96
9 Revenue (000s) 806 855 855 880 911 1,150
10 Cents /kWh 75.54 74.46 74.97 74.17 74.17 93.68
Streetlights
11 Sales (MWh) 30 31 31 31 31 31
12 Revenue (000s) 22 23 23 23 23 29
13 Cents /kWh 73.79 71.95 71.95 71.95 71.95 91.45
Total
14 Sales (MWh) 1,896 2,153 2,168 2,198 2,266 2,266
15 Customers 205 193 206 224 230 230
16 Revenue (000s) 1,511 1,704 1,667 1,740 1,794 2,255
17 Cents /kWh 79.73 79.14 76.91 79.17 79.15 99.50
GENERATION (MWh)
18 Station Service 42 57 40 40 40 40
19 Losses 152 160 186 189 194 194
20 Losses - % of Gen. 7.3% 6.8% 7.8% 7.8% 7.8% 7.8%
Source
24 Liters (000s) 590 678 687 675 695 695
Peak
25 Peak Load (KW) 431 586 630 639 658 658
26 Load Factor 55% 46% 43% 43% 43% 43%
Appendix A-5
Schedule A-1.5
505 Kugluktuk
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,114 2,276 2,320 2,289 2,315 2,315
2 Customers 450 418 422 418 423 423
3 Av. MWh Sales/Cust. 4.70 5.45 5.50 5.48 5.48 5.48
4 Revenue (000s) 1,475 1,588 1,630 1,643 1,662 2,095
5 Cents/kWh 69.76 69.78 70.27 71.80 71.80 90.51
Commercial
6 Sales (MWh) 2,507 2,551 2,569 2,629 2,667 2,667
7 Customers 124 115 116 127 129 129
8 Av. MWh Sales/Cust. 20.21 22.18 22.15 20.70 20.70 20.70
9 Revenue (000s) 1,609 1,644 1,648 1,652 1,676 2,138
10 Cents /kWh 64.21 64.46 64.13 62.85 62.85 80.14
Streetlights
11 Sales (MWh) 72 65 65 65 65 65
12 Revenue (000s) 60 59 59 59 58 73
13 Cents /kWh 82.27 90.44 90.44 90.44 90.09 113.10
Total
14 Sales (MWh) 4,693 4,891 4,954 4,983 5,047 5,047
15 Customers 574 533 538 545 552 552
16 Revenue (000s) 3,144 3,291 3,336 3,354 3,397 4,306
17 Cents /kWh 66.99 67.28 67.35 67.32 67.30 85.32
GENERATION (MWh)
18 Station Service 104 54 118 118 118 118
19 Losses 351 407 422 425 430 430
20 Losses - % of Gen. 6.8% 7.6% 7.7% 7.7% 7.7% 7.7%
Source
24 Liters (000s) 1,407 1,480 1,522 1,508 1,527 1,527
Peak
25 Peak Load (KW) 1,066 1,027 1,020 1,026 1,039 1,039
26 Load Factor 55% 59% 61% 61% 61% 61%
Appendix A-6
Schedule A-2
600 Total of Kivalliq Area
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 13,294 14,904 14,921 15,057 15,331 15,331
2 Customers 2,691 2,421 2,457 2,503 2,548 2,548
3 Av. MWh Sales/Cust. 4.94 6.16 6.07 6.02 6.02 6.02
4 Revenue (000s) 7,299 8,147 8,229 8,309 8,457 10,843
5 Cents/kWh 54.91 54.67 55.15 55.19 55.17 70.73
Commercial
6 Sales (MWh) 19,532 20,577 21,270 21,677 22,348 22,348
7 Customers 760 675 683 703 724 724
8 Av. MWh Sales/Cust. 25.70 30.48 31.14 30.83 30.85 30.85
9 Revenue (000s) 9,920 10,350 10,848 10,481 10,802 14,072
10 Cents /kWh 50.79 50.30 51.00 48.35 48.33 62.97
Streetlights
11 Sales (MWh) 455 510 509 509 509 509
12 Revenue (000s) 300 327 328 327 337 431
13 Cents /kWh 65.98 64.11 64.42 64.23 66.27 84.67
Total
14 Sales (MWh) 33,281 35,991 36,700 37,243 38,187 38,187
15 Customers 3,451 3,096 3,140 3,206 3,273 3,273
16 Revenue (000s) 17,520 18,824 19,405 19,117 19,596 25,346
17 Cents /kWh 52.64 52.30 52.87 51.33 51.32 66.37
GENERATION (MWh)
19 Total Losses 2,406 1,433 1,512 1,529 1,568 1,568
20 Losses - % of Gen. 6.5% 3.7% 3.8% 3.8% 3.8% 3.8%
Source
24 Liters (000s) 10,376 10,759 10,832 10,911 11,177 11,177
Peak
25 Peak Load (KW) 7,363 7,419 7,390 7,490 7,672 7,672
26 Load Factor 57% 60% 61% 61% 61% 61%
Appendix A-7
Schedule A-2.1
601 Rankin Inlet
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 4,888 5,004 5,011 5,152 5,233 5,233
2 Customers 963 800 800 795 807 807
3 Av. MWh Sales/Cust. 5.08 6.25 6.26 6.48 6.48 6.48
4 Revenue (000s) 2,188 2,237 2,233 2,279 2,315 3,021
5 Cents/kWh 44.75 44.70 44.55 44.24 44.24 57.74
Commercial
6 Sales (MWh) 7,292 8,498 8,697 8,812 9,069 9,069
7 Customers 240 200 193 200 206 206
8 Av. MWh Sales/Cust. 30.38 42.49 45.06 44.06 44.06 44.06
9 Revenue (000s) 2,924 3,470 3,600 3,411 3,510 4,677
10 Cents /kWh 40.09 40.84 41.39 38.71 38.71 51.57
Streetlights
11 Sales (MWh) 107 150 150 150 150 150
12 Revenue (000s) 58 80 80 80 80 104
13 Cents /kWh 54.08 53.72 53.72 53.72 53.72 69.69
Total
14 Sales (MWh) 12,288 13,651 13,858 14,113 14,451 14,451
15 Customers 1,203 1,000 993 995 1,013 1,013
16 Revenue (000s) 5,169 5,787 5,913 5,771 5,906 7,802
17 Cents /kWh 42.07 42.39 42.66 40.89 40.87 53.99
GENERATION (MWh)
18 Station Service 444 464 476 476 476 476
19 Losses 897 431 510 519 531 531
20 Losses - % of Gen. 6.6% 3.0% 3.4% 3.4% 3.4% 3.4%
Source
24 Liters (000s) 3,644 3,946 3,954 4,062 4,156 4,156
Peak
25 Peak Load (KW) 2,563 2,693 2,722 2,771 2,835 2,835
26 Load Factor 61% 62% 62% 62% 62% 62%
Appendix A-8
Schedule A-2.2
602 Baker Lake
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,698 3,100 3,141 3,081 3,143 3,143
2 Customers 577 518 522 549 560 560
3 Av. MWh Sales/Cust. 4.68 5.99 6.02 5.61 5.61 5.61
4 Revenue (000s) 1,389 1,588 1,642 1,575 1,607 2,069
5 Cents/kWh 51.46 51.23 52.28 51.11 51.11 65.84
Commercial
6 Sales (MWh) 3,677 3,760 3,758 3,807 3,930 3,930
7 Customers 189 147 155 161 166 166
8 Av. MWh Sales/Cust. 19.46 25.58 24.25 23.65 23.65 23.65
9 Revenue (000s) 1,748 1,793 1,859 1,751 1,807 2,361
10 Cents /kWh 47.52 47.69 49.46 45.98 45.98 60.07
Streetlights
11 Sales (MWh) 147 116 115 115 115 115
12 Revenue (000s) 60 52 57 52 62 81
13 Cents /kWh 41.25 44.81 49.39 44.90 53.88 69.89
Total
14 Sales (MWh) 6,522 6,976 7,015 7,004 7,189 7,189
15 Customers 766 665 677 710 726 726
16 Revenue (000s) 3,197 3,433 3,558 3,377 3,476 4,511
17 Cents /kWh 49.01 49.22 50.72 48.22 48.35 62.75
GENERATION (MWh)
18 Station Service 243 180 209 209 209 209
19 Losses 627 361 493 492 505 505
20 Losses - % of Gen. 8.5% 4.8% 6.4% 6.4% 6.4% 6.4%
Source
24 Liters (000s) 2,194 1,966 2,038 1,970 2,021 2,021
Peak
25 Peak Load (KW) 1,430 1,450 1,447 1,445 1,482 1,482
26 Load Factor 59% 59% 61% 61% 61% 61%
Appendix A-9
Schedule A-2.3
603 Arviat
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,571 3,172 3,118 3,225 3,308 3,308
2 Customers 528 524 534 543 557 557
3 Av. MWh Sales/Cust. 4.87 6.05 5.84 5.94 5.94 5.94
4 Revenue (000s) 1,497 1,839 1,857 1,865 1,913 2,444
5 Cents/kWh 58.22 57.98 59.55 57.84 57.84 73.91
Commercial
6 Sales (MWh) 4,429 3,589 4,003 4,136 4,301 4,301
7 Customers 137 118 114 122 127 127
8 Av. MWh Sales/Cust. 32.33 30.41 35.12 33.90 33.90 33.90
9 Revenue (000s) 2,321 1,926 2,141 2,134 2,219 2,877
10 Cents /kWh 52.41 53.68 53.48 51.60 51.60 66.89
Streetlights
11 Sales (MWh) 69 98 97 97 97 97
12 Revenue (000s) 41 55 50 55 55 71
13 Cents /kWh 58.60 56.40 52.16 56.90 56.90 73.49
Total
14 Sales (MWh) 7,069 6,859 7,218 7,458 7,705 7,705
15 Customers 665 642 648 665 684 684
16 Revenue (000s) 3,858 3,821 4,048 4,054 4,187 5,393
17 Cents /kWh 54.58 55.70 56.08 54.36 54.34 69.98
GENERATION (MWh)
18 Station Service 135 243 240 240 240 240
19 Losses 479 231 193 200 206 206
20 Losses - % of Gen. 6.2% 3.1% 2.5% 2.5% 2.5% 2.5%
Source
24 Liters (000s) 2,111 2,103 2,045 2,139 2,208 2,208
Peak
25 Peak Load (KW) 1,639 1,321 1,305 1,347 1,390 1,390
26 Load Factor 54% 63% 67% 67% 67% 67%
Appendix A-10
Schedule A-2.4
604 Coral Harbour
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,100 1,258 1,257 1,237 1,256 1,256
2 Customers 217 213 218 223 227 227
3 Av. MWh Sales/Cust. 5.07 5.92 5.76 5.55 5.55 5.55
4 Revenue (000s) 773 873 878 869 883 1,114
5 Cents/kWh 70.24 69.40 69.83 70.29 70.29 88.71
Commercial
6 Sales (MWh) 1,425 1,597 1,582 1,590 1,616 1,616
7 Customers 73 76 77 75 76 76
8 Av. MWh Sales/Cust. 19.53 21.01 20.55 21.20 21.20 21.20
9 Revenue (000s) 917 1,027 985 997 1,014 1,293
10 Cents /kWh 64.31 64.33 62.25 62.72 62.72 80.01
Streetlights
11 Sales (MWh) 49 54 54 54 54 54
12 Revenue (000s) 44 51 51 51 51 64
13 Cents /kWh 88.69 94.62 94.47 94.47 94.47 118.33
Total
14 Sales (MWh) 2,575 2,909 2,892 2,880 2,926 2,926
15 Customers 290 289 295 298 303 303
16 Revenue (000s) 1,733 1,951 1,913 1,917 1,948 2,471
17 Cents /kWh 67.31 67.08 66.14 66.56 66.55 84.45
GENERATION (MWh)
18 Station Service 176 155 145 145 145 145
19 Losses 123 25 76 76 77 77
20 Losses - % of Gen. 4.3% 0.8% 2.5% 2.5% 2.5% 2.5%
Source
24 Liters (000s) 831 918 941 911 924 924
Peak
25 Peak Load (KW) 608 660 620 618 627 627
26 Load Factor 54% 53% 57% 57% 57% 57%
Appendix A-11
Schedule A-2.5
605 Chesterfield Inlet
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 576 617 598 598 597 597
2 Customers 140 109 113 114 114 114
3 Av. MWh Sales/Cust. 4.12 5.66 5.29 5.24 5.24 5.24
4 Revenue (000s) 423 447 434 435 434 547
5 Cents/kWh 73.48 72.49 72.56 72.77 72.77 91.63
Commercial
6 Sales (MWh) 831 1,059 1,055 1,091 1,119 1,119
7 Customers 43 53 53 53 54 54
8 Av. MWh Sales/Cust. 19.32 19.99 19.91 20.58 20.58 20.58
9 Revenue (000s) 559 714 715 720 738 938
10 Cents /kWh 67.28 67.36 67.77 65.96 65.96 83.86
Streetlights
11 Sales (MWh) 24 27 28 28 28 28
12 Revenue (000s) 23 26 26 26 26 33
13 Cents /kWh 97.31 96.32 96.01 94.42 94.42 118.27
Total
14 Sales (MWh) 1,431 1,704 1,681 1,717 1,744 1,744
15 Customers 183 162 166 167 168 168
16 Revenue (000s) 1,006 1,187 1,176 1,181 1,199 1,518
17 Cents /kWh 70.28 69.68 69.94 68.79 68.74 87.07
GENERATION (MWh)
18 Station Service 96 101 97 97 97 97
19 Losses 103 119 40 41 41 41
20 Losses - % of Gen. 6.3% 6.2% 2.2% 2.2% 2.2% 2.2%
Source
24 Liters (000s) 517 579 596 569 577 577
Peak
25 Peak Load (KW) 342 345 350 357 362 362
26 Load Factor 54% 64% 59% 59% 59% 59%
Appendix A-12
Schedule A-2.6
606 Whale Cove
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 538 575 583 556 560 560
2 Customers 114 98 100 101 102 102
3 Av. MWh Sales/Cust. 4.72 5.88 5.83 5.50 5.50 5.50
4 Revenue (000s) 458 432 433 536 540 671
5 Cents/kWh 85.11 75.01 74.17 96.41 96.41 119.89
Commercial
6 Sales (MWh) 736 779 804 828 848 848
7 Customers 43 40 45 45 46 46
8 Av. MWh Sales/Cust. 17.12 19.47 17.88 18.41 18.41 18.41
9 Revenue (000s) 838 713 804 723 740 926
10 Cents /kWh 113.81 91.53 99.96 87.25 87.25 109.22
Streetlights
11 Sales (MWh) 40 34 34 34 34 34
12 Revenue (000s) 47 37 37 37 37 45
13 Cents /kWh 118.62 107.37 108.74 108.74 108.74 135.37
Total
14 Sales (MWh) 1,314 1,388 1,421 1,418 1,442 1,442
15 Customers 157 138 145 146 148 148
16 Revenue (000s) 1,343 1,181 1,273 1,295 1,316 1,643
17 Cents /kWh 102.20 85.07 89.58 91.35 91.31 113.97
GENERATION (MWh)
18 Station Service 148 146 132 132 132 132
19 Losses 52 127 77 77 78 78
20 Losses - % of Gen. 3.5% 7.7% 4.7% 4.7% 4.7% 4.7%
Source
24 Liters (000s) 445 489 489 484 491 491
Peak
25 Peak Load (KW) 326 370 365 364 370 370
26 Load Factor 53% 51% 51% 51% 51% 51%
Appendix A-13
Schedule A-2.7
607 Repulse Bay
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 923 1,177 1,213 1,208 1,234 1,234
2 Customers 152 159 170 178 182 182
3 Av. MWh Sales/Cust. 6.07 7.39 7.14 6.79 6.79 6.79
4 Revenue (000s) 572 731 753 750 765 975
5 Cents/kWh 62.00 62.12 62.05 62.03 62.03 79.00
Commercial
6 Sales (MWh) 1,140 1,296 1,369 1,412 1,465 1,465
7 Customers 35 41 46 47 49 49
8 Av. MWh Sales/Cust. 32.57 31.61 29.77 30.05 30.05 30.05
9 Revenue (000s) 614 706 745 745 773 1,000
10 Cents /kWh 53.84 54.46 54.40 52.78 52.78 68.26
Streetlights
11 Sales (MWh) 19 32 32 32 32 32
12 Revenue (000s) 27 26 26 26 26 33
13 Cents /kWh 143.24 81.54 81.54 81.54 81.54 102.90
Total
14 Sales (MWh) 2,082 2,505 2,615 2,653 2,731 2,731
15 Customers 187 200 216 225 230 230
16 Revenue (000s) 1,213 1,463 1,524 1,521 1,565 2,008
17 Cents /kWh 58.26 58.41 58.29 57.34 57.30 73.52
GENERATION (MWh)
18 Station Service 76 70 54 54 54 54
19 Losses 123 140 123 125 129 129
20 Losses - % of Gen. 5.4% 5.1% 4.4% 4.4% 4.4% 4.4%
Source
24 Liters (000s) 634 758 769 777 800 800
Peak
25 Peak Load (KW) 455 580 581 589 606 606
26 Load Factor 57% 53% 55% 55% 55% 55%
Appendix A-14
Schedule A-3
700 Total of Qikiqtaaluk area
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 30,616 32,440 32,545 34,266 35,043 35,043
2 Customers 5,363 5,180 5,511 5,519 5,643 5,643
3 Av. MWh Sales/Cust. 5.71 6.26 5.91 6.21 6.21 6.21
4 Revenue (000s) 15,484 16,465 16,638 17,485 17,862 23,039
5 Cents/kWh 50.57 50.76 51.12 51.03 50.97 65.75
Commercial
6 Sales (MWh) 50,561 50,756 52,980 56,333 58,089 58,089
7 Customers 1,684 1,498 1,555 1,597 1,645 1,645
8 Av. MWh Sales/Cust. 30.02 33.89 34.07 35.27 35.31 35.31
9 Revenue (000s) 22,021 22,427 22,844 23,242 23,953 31,679
10 Cents /kWh 43.55 44.19 43.12 41.26 41.23 54.53
Streetlights
11 Sales (MWh) 1,076 1,109 1,116 1,128 1,128 1,128
12 Revenue (000s) 688 698 702 698 700 899
13 Cents /kWh 63.98 62.91 62.91 61.85 62.10 79.69
Total
14 Sales (MWh) 82,253 84,304 86,641 91,727 94,260 94,260
15 Customers 7,047 6,677 7,066 7,116 7,288 7,288
16 Revenue (000s) 38,193 39,590 40,184 41,424 42,516 55,617
17 Cents /kWh 46.43 46.96 46.38 45.16 45.11 59.00
GENERATION (MWh)
19 Total Losses 5,398 6,767 6,007 6,344 6,517 6,517
20 Losses - % of Gen. 5.9% 7.1% 6.2% 6.2% 6.2% 6.2%
Source
24 Liters (000s) 24,955 26,178 26,546 27,624 28,352 28,352
Peak
25 Peak Load (KW) 17,066 17,547 17,860 18,822 19,313 19,313
26 Load Factor 61% 62% 62% 62% 62% 62%
Appendix A-15
Schedule A-3.1
701 Iqaluit
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 14,603 15,373 15,349 16,879 17,387 17,387
2 Customers 2,582 2,421 2,689 2,668 2,748 2,748
3 Av. MWh Sales/Cust. 5.66 6.35 5.71 6.33 6.33 6.33
4 Revenue (000s) 6,249 6,601 6,645 7,225 7,443 9,739
5 Cents/kWh 42.79 42.94 43.29 42.80 42.80 56.01
Commercial
6 Sales (MWh) 30,976 30,105 31,879 34,222 35,327 35,327
7 Customers 673 587 632 639 660 660
8 Av. MWh Sales/Cust. 46.03 51.32 50.44 53.56 53.56 53.56
9 Revenue (000s) 10,846 10,969 11,290 11,342 11,708 15,885
10 Cents /kWh 35.01 36.44 35.41 33.14 33.14 44.97
Streetlights
11 Sales (MWh) 379 407 413 424 424 424
12 Revenue (000s) 172 174 177 174 174 232
13 Cents /kWh 45.31 42.84 42.88 41.08 41.08 54.61
Total
14 Sales (MWh) 45,959 45,884 47,641 51,526 53,138 53,138
15 Customers 3,255 3,007 3,321 3,307 3,408 3,408
16 Revenue (000s) 17,266 17,744 18,112 18,741 19,325 25,855
17 Cents /kWh 37.57 38.67 38.02 36.37 36.37 48.66
GENERATION (MWh)
18 Station Service 2,566 2,421 2,460 2,460 2,460 2,460
19 Losses 2,276 3,955 3,158 3,415 3,522 3,522
20 Losses - % of Gen. 4.5% 7.6% 5.9% 5.9% 6.0% 6.0%
Source
24 Liters (000s) 13,369 13,994 14,072 15,153 15,607 15,607
Peak
25 Peak Load (KW) 8,687 8,940 8,938 9,633 9,922 9,922
26 Load Factor 67% 67% 68% 68% 68% 68%
Appendix A-16
Schedule A-3.2
702 Pangnirtung
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,657 2,475 2,468 2,585 2,634 2,634
2 Customers 476 447 448 438 446 446
3 Av. MWh Sales/Cust. 5.58 5.54 5.51 5.90 5.90 5.90
4 Revenue (000s) 1,262 1,189 1,193 1,283 1,307 1,688
5 Cents/kWh 47.49 48.03 48.34 49.62 49.62 64.10
Commercial
6 Sales (MWh) 2,914 3,004 3,089 3,332 3,445 3,445
7 Customers 151 103 105 106 110 110
8 Av. MWh Sales/Cust. 19.30 29.16 29.42 31.43 31.43 31.43
9 Revenue (000s) 1,304 1,334 1,352 1,398 1,445 1,907
10 Cents /kWh 44.75 44.42 43.76 41.95 41.95 55.35
Streetlights
11 Sales (MWh) 106 147 148 148 148 148
12 Revenue (000s) 55 75 75 75 75 97
13 Cents /kWh 51.80 50.79 50.71 50.41 50.41 65.75
Total
14 Sales (MWh) 5,677 5,626 5,705 6,065 6,227 6,227
15 Customers 627 550 553 544 556 556
16 Revenue (000s) 2,621 2,598 2,620 2,755 2,827 3,693
17 Cents /kWh 46.16 46.18 45.92 45.43 45.40 59.30
GENERATION (MWh)
18 Station Service 114 340 336 336 336 336
19 Losses 450 350 197 209 215 215
20 Losses - % of Gen. 7.2% 5.5% 3.2% 3.2% 3.2% 3.2%
Source
24 Liters (000s) 1,696 1,758 1,703 1,668 1,710 1,710
Peak
25 Peak Load (KW) 1,294 1,276 1,359 1,440 1,477 1,477
26 Load Factor 55% 57% 52% 52% 52% 52%
Appendix A-17
Schedule A-3.3
703 Cape Dorset
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,047 2,182 2,191 2,226 2,265 2,265
2 Customers 380 375 384 395 402 402
3 Av. MWh Sales/Cust. 5.39 5.82 5.71 5.63 5.63 5.63
4 Revenue (000s) 1,019 1,087 1,098 1,147 1,167 1,503
5 Cents/kWh 49.77 49.83 50.12 51.52 51.52 66.34
Commercial
6 Sales (MWh) 2,487 2,526 2,725 2,736 2,808 2,808
7 Customers 139 103 105 106 109 109
8 Av. MWh Sales/Cust. 17.89 24.52 25.95 25.81 25.81 25.81
9 Revenue (000s) 1,272 1,260 1,353 1,316 1,351 1,759
10 Cents /kWh 51.14 49.88 49.66 48.10 48.10 62.63
Streetlights
11 Sales (MWh) 94 79 79 79 79 79
12 Revenue (000s) 48 59 59 59 59 75
13 Cents /kWh 50.92 74.22 74.22 74.22 74.22 94.17
Total
14 Sales (MWh) 4,628 4,787 4,996 5,041 5,153 5,153
15 Customers 519 478 489 501 511 511
16 Revenue (000s) 2,338 2,406 2,510 2,522 2,577 3,336
17 Cents /kWh 50.53 50.26 50.25 50.02 50.01 64.74
GENERATION (MWh)
18 Station Service 103 97 105 105 105 105
19 Losses 404 300 284 287 293 293
20 Losses - % of Gen. 7.9% 5.8% 5.3% 5.3% 5.3% 5.3%
Source
24 Liters (000s) 1,414 1,501 1,626 1,591 1,626 1,626
Peak
25 Peak Load (KW) 1,045 1,017 1,108 1,118 1,142 1,142
26 Load Factor 56% 58% 55% 55% 55% 55%
Appendix A-18
Schedule A-3.4
704 Resolute Bay
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 619 646 668 674 687 687
2 Customers 82 93 93 96 98 98
3 Av. MWh Sales/Cust. 7.55 6.92 7.19 7.02 7.02 7.02
4 Revenue (000s) 459 503 519 509 518 653
5 Cents/kWh 74.18 77.87 77.68 75.42 75.42 95.00
Commercial
6 Sales (MWh) 2,319 2,311 2,324 2,311 2,373 2,373
7 Customers 103 115 109 112 115 115
8 Av. MWh Sales/Cust. 22.51 20.09 21.32 20.63 20.63 20.63
9 Revenue (000s) 1,663 1,655 1,685 1,627 1,671 2,116
10 Cents /kWh 71.72 71.63 72.50 70.41 70.41 89.16
Streetlights
11 Sales (MWh) 42 39 40 40 40 40
12 Revenue (000s) 69 43 43 43 43 54
13 Cents /kWh 163.30 110.80 107.14 107.14 107.14 133.45
Total
14 Sales (MWh) 2,980 2,996 3,033 3,025 3,101 3,101
15 Customers 185 208 202 208 213 213
16 Revenue (000s) 2,191 2,201 2,247 2,179 2,232 2,823
17 Cents /kWh 73.52 73.48 74.10 72.01 71.99 91.03
GENERATION (MWh)
18 Station Service 371 411 385 385 385 385
19 Losses 564 700 664 663 679 679
20 Losses - % of Gen. 14.4% 17.1% 16.3% 16.3% 16.3% 16.3%
Source
24 Liters (000s) 1,070 1,124 1,194 1,145 1,171 1,171
Peak
25 Peak Load (KW) 646 684 889 887 907 907
26 Load Factor 69% 69% 52% 52% 52% 52%
Appendix A-19
Schedule A-3.5
705 Pond Inlet
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,992 2,245 2,243 2,294 2,339 2,339
2 Customers 332 359 357 365 372 372
3 Av. MWh Sales/Cust. 6.00 6.25 6.28 6.28 6.28 6.28
4 Revenue (000s) 1,330 1,501 1,515 1,604 1,636 2,067
5 Cents/kWh 66.77 66.88 67.54 69.93 69.93 88.37
Commercial
6 Sales (MWh) 2,168 2,619 2,612 2,886 2,994 2,994
7 Customers 138 101 101 106 110 110
8 Av. MWh Sales/Cust. 15.71 25.93 25.86 27.23 27.23 27.23
9 Revenue (000s) 1,347 1,629 1,534 1,700 1,764 2,262
10 Cents /kWh 62.12 62.20 58.72 58.90 58.90 75.54
Streetlights
11 Sales (MWh) 119 114 114 114 114 114
12 Revenue (000s) 89 93 93 93 93 118
13 Cents /kWh 74.82 81.83 81.83 81.83 81.83 103.25
Total
14 Sales (MWh) 4,280 4,978 4,969 5,294 5,447 5,447
15 Customers 470 460 458 471 482 482
16 Revenue (000s) 2,766 3,224 3,142 3,397 3,493 4,447
17 Cents /kWh 64.64 64.76 63.24 64.17 64.12 81.63
GENERATION (MWh)
18 Station Service 159 227 238 238 238 238
19 Losses 395 327 374 399 410 410
20 Losses - % of Gen. 8.2% 5.9% 6.7% 6.7% 6.7% 6.7%
Source
24 Liters (000s) 1,409 1,666 1,666 1,719 1,767 1,767
Peak
25 Peak Load (KW) 1,021 1,100 1,070 1,137 1,169 1,169
26 Load Factor 54% 57% 60% 60% 60% 60%
Appendix A-20
Schedule A-3.6
706 Igloolik
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 2,318 2,396 2,418 2,428 2,442 2,442
2 Customers 424 384 392 402 404 404
3 Av. MWh Sales/Cust. 5.47 6.25 6.17 6.04 6.04 6.04
4 Revenue (000s) 1,048 1,063 1,101 1,099 1,106 1,439
5 Cents/kWh 45.24 44.35 45.52 45.28 45.28 58.93
Commercial
6 Sales (MWh) 2,125 2,502 2,740 2,831 2,924 2,924
7 Customers 125 108 109 113 117 117
8 Av. MWh Sales/Cust. 17.00 23.17 25.14 25.05 25.05 25.05
9 Revenue (000s) 892 1,037 1,106 1,126 1,163 1,541
10 Cents /kWh 41.97 41.44 40.35 39.79 39.79 52.70
Streetlights
11 Sales (MWh) 99 97 98 98 98 98
12 Revenue (000s) 51 52 52 52 52 67
13 Cents /kWh 51.55 53.31 53.29 52.74 52.74 68.53
Total
14 Sales (MWh) 4,541 4,996 5,256 5,357 5,464 5,464
15 Customers 549 492 501 515 521 521
16 Revenue (000s) 1,991 2,151 2,258 2,277 2,321 3,047
17 Cents /kWh 43.85 43.07 42.97 42.51 42.47 55.77
GENERATION (MWh)
18 Station Service 128 114 117 117 117 117
19 Losses 187 200 170 174 177 177
20 Losses - % of Gen. 3.8% 3.8% 3.1% 3.1% 3.1% 3.1%
Source
24 Liters (000s) 1,395 1,506 1,582 1,611 1,642 1,642
Peak
25 Peak Load (KW) 987 1,042 1,100 1,121 1,143 1,143
26 Load Factor 56% 58% 58% 58% 58% 58%
Appendix A-21
Schedule A-3.7
707 Hall Beach
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 902 1,170 1,150 1,107 1,123 1,123
2 Customers 161 160 177 177 180 180
3 Av. MWh Sales/Cust. 5.60 7.31 6.50 6.25 6.25 6.25
4 Revenue (000s) 591 758 740 746 757 958
5 Cents/kWh 65.53 64.72 64.39 67.41 67.41 85.37
Commercial
6 Sales (MWh) 1,328 1,209 1,165 1,276 1,305 1,305
7 Customers 53 58 63 62 63 63
8 Av. MWh Sales/Cust. 25.06 20.85 18.50 20.59 20.59 20.59
9 Revenue (000s) 828 764 735 789 807 1,030
10 Cents /kWh 62.32 63.15 63.11 61.85 61.85 78.95
Streetlights
11 Sales (MWh) 50 42 42 42 42 42
12 Revenue (000s) 36 34 34 34 34 43
13 Cents /kWh 71.32 80.68 80.68 80.68 80.68 101.87
Total
14 Sales (MWh) 2,281 2,421 2,357 2,425 2,469 2,469
15 Customers 214 218 240 239 243 243
16 Revenue (000s) 1,455 1,555 1,510 1,569 1,597 2,031
17 Cents /kWh 63.79 64.21 64.05 64.71 64.70 82.26
GENERATION (MWh)
18 Station Service 111 116 126 126 126 126
19 Losses 125 150 190 196 199 199
20 Losses - % of Gen. 5.0% 5.6% 7.1% 7.1% 7.1% 7.1%
Source
24 Liters (000s) 721 767 770 780 793 793
Peak
25 Peak Load (KW) 484 538 536 551 560 560
26 Load Factor 59% 57% 57% 57% 57% 57%
Appendix A-22
Schedule A-3.8
708 Qikiqtarjuaq
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 815 958 932 931 939 939
2 Customers 192 166 170 168 169 169
3 Av. MWh Sales/Cust. 4.25 5.77 5.48 5.54 5.54 5.54
4 Revenue (000s) 479 557 537 588 593 753
5 Cents/kWh 58.69 58.11 57.58 63.20 63.20 80.26
Commercial
6 Sales (MWh) 1,097 1,141 1,108 1,147 1,176 1,176
7 Customers 63 66 70 71 73 73
8 Av. MWh Sales/Cust. 17.42 17.28 15.82 16.16 16.16 16.16
9 Revenue (000s) 658 670 716 679 696 890
10 Cents /kWh 59.98 58.72 64.64 59.16 59.16 75.62
Streetlights
11 Sales (MWh) 29 33 32 32 32 32
12 Revenue (000s) 27 26 29 26 29 37
13 Cents /kWh 92.00 77.72 92.12 81.47 92.12 115.53
Total
14 Sales (MWh) 1,942 2,132 2,071 2,110 2,147 2,147
15 Customers 255 232 240 239 242 242
16 Revenue (000s) 1,163 1,253 1,282 1,293 1,318 1,679
17 Cents /kWh 59.92 58.75 61.88 61.28 61.41 78.23
GENERATION (MWh)
18 Station Service 100 72 83 83 83 83
19 Losses 198 124 191 195 198 198
20 Losses - % of Gen. 8.8% 5.3% 8.1% 8.2% 8.2% 8.2%
Source
24 Liters (000s) 713 674 719 673 684 684
Peak
25 Peak Load (KW) 463 440 420 427 435 435
26 Load Factor 55% 60% 64% 64% 64% 64%
Appendix A-23
Schedule A-3.9
709 Kimmirut
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 665 779 765 771 775 775
2 Customers 128 125 128 129 130 130
3 Av. MWh Sales/Cust. 5.20 6.25 5.98 5.98 5.98 5.98
4 Revenue (000s) 631 595 584 594 597 751
5 Cents/kWh 94.84 76.37 76.31 77.02 77.02 96.81
Commercial
6 Sales (MWh) 885 1,068 1,000 1,058 1,086 1,086
7 Customers 40 50 49 51 52 52
8 Av. MWh Sales/Cust. 22.11 21.37 20.41 20.74 20.74 20.74
9 Revenue (000s) 734 693 643 671 689 878
10 Cents /kWh 83.03 64.82 64.30 63.42 63.42 80.82
Streetlights
11 Sales (MWh) 32 35 35 35 35 35
12 Revenue (000s) 33 34 34 34 34 42
13 Cents /kWh 102.32 97.18 97.18 97.18 97.18 121.57
Total
14 Sales (MWh) 1,582 1,882 1,800 1,864 1,896 1,896
15 Customers 168 175 177 180 182 182
16 Revenue (000s) 1,398 1,321 1,261 1,299 1,320 1,671
17 Cents /kWh 88.39 70.19 70.04 69.68 69.60 88.11
GENERATION (MWh)
18 Station Service 125 92 79 79 79 79
19 Losses 95 106 123 128 130 130
20 Losses - % of Gen. 5.3% 5.1% 6.2% 6.2% 6.2% 6.2%
Source
24 Liters (000s) 496 583 545 562 571 571
Peak
25 Peak Load (KW) 389 451 396 409 416 416
26 Load Factor 53% 53% 58% 58% 58% 58%
Appendix A-24
Schedule A-3.10
710 Arctic Bay
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,237 1,266 1,309 1,350 1,375 1,375
2 Customers 198 188 192 200 204 204
3 Av. MWh Sales/Cust. 6.25 6.73 6.82 6.75 6.75 6.75
4 Revenue (000s) 793 828 851 867 883 1,122
5 Cents/kWh 64.10 65.39 64.97 64.26 64.26 81.66
Commercial
6 Sales (MWh) 1,020 1,112 1,124 1,142 1,183 1,183
7 Customers 45 52 54 58 60 60
8 Av. MWh Sales/Cust. 22.68 21.38 20.82 19.70 19.70 19.70
9 Revenue (000s) 586 633 627 646 668 858
10 Cents /kWh 57.38 56.98 55.75 56.51 56.51 72.55
Streetlights
11 Sales (MWh) 32 34 34 34 34 34
12 Revenue (000s) 29 31 31 31 31 39
13 Cents /kWh 92.92 90.47 90.47 90.47 90.47 113.56
Total
14 Sales (MWh) 2,289 2,412 2,468 2,526 2,591 2,591
15 Customers 243 240 246 258 264 264
16 Revenue (000s) 1,408 1,492 1,508 1,544 1,582 2,019
17 Cents /kWh 61.50 61.87 61.12 61.11 61.07 77.92
GENERATION (MWh)
18 Station Service 53 53 48 48 48 48
19 Losses 182 151 175 179 184 184
20 Losses - % of Gen. 7.2% 5.8% 6.5% 6.5% 6.5% 6.5%
Source
24 Liters (000s) 721 713 740 760 779 779
Peak
25 Peak Load (KW) 549 555 537 550 563 563
26 Load Factor 52% 54% 57% 57% 57% 57%
Appendix A-25
Schedule A-3.11
711 Clyde River
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,334 1,400 1,406 1,437 1,461 1,461
2 Customers 191 208 211 220 224 224
3 Av. MWh Sales/Cust. 6.99 6.72 6.66 6.53 6.53 6.53
4 Revenue (000s) 749 807 813 819 833 1,067
5 Cents/kWh 56.16 57.65 57.84 57.03 57.03 73.01
Commercial
6 Sales (MWh) 1,311 1,288 1,189 1,392 1,426 1,426
7 Customers 55 57 58 56 57 57
8 Av. MWh Sales/Cust. 23.84 22.59 20.50 24.86 24.86 24.86
9 Revenue (000s) 648 644 571 678 694 903
10 Cents /kWh 49.46 50.04 48.05 48.68 48.68 63.31
Streetlights
11 Sales (MWh) 24 26 26 26 26 26
12 Revenue (000s) 26 27 25 27 27 34
13 Cents /kWh 108.13 105.96 97.13 105.96 105.96 132.04
Total
14 Sales (MWh) 2,670 2,713 2,621 2,855 2,913 2,913
15 Customers 246 265 269 276 281 281
16 Revenue (000s) 1,424 1,479 1,410 1,524 1,555 2,003
17 Cents /kWh 53.35 54.50 53.78 53.40 53.37 68.78
GENERATION (MWh)
18 Station Service 119 70 73 73 73 73
19 Losses 264 186 199 217 222 222
20 Losses - % of Gen. 8.6% 6.3% 6.9% 6.9% 6.9% 6.9%
Source
24 Liters (000s) 903 796 802 844 861 861
Peak
25 Peak Load (KW) 665 650 620 674 687 687
26 Load Factor 52% 52% 53% 53% 53% 53%
Appendix A-26
Schedule A-3.12
712 Grise Fiord
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 264 306 309 313 318 318
2 Customers 58 60 60 57 58 58
3 Av. MWh Sales/Cust. 4.55 5.12 5.15 5.50 5.50 5.50
4 Revenue (000s) 186 228 228 239 242 305
5 Cents/kWh 70.58 74.56 73.94 76.29 76.29 95.88
Commercial
6 Sales (MWh) 611 563 575 630 639 639
7 Customers 37 35 36 42 43 43
8 Av. MWh Sales/Cust. 16.51 16.10 15.97 14.99 14.99 14.99
9 Revenue (000s) 483 446 443 494 501 630
10 Cents /kWh 79.05 79.21 77.11 78.44 78.44 98.58
Streetlights
11 Sales (MWh) 19 23 23 23 23 23
12 Revenue (000s) 20 24 24 24 24 30
13 Cents /kWh 104.67 106.85 106.85 106.85 106.85 133.10
Total
14 Sales (MWh) 894 893 907 966 980 980
15 Customers 95 95 96 99 100 100
16 Revenue (000s) 689 699 696 757 768 965
17 Cents /kWh 77.09 78.31 76.78 78.41 78.40 98.51
GENERATION (MWh)
18 Station Service 72 58 47 47 47 47
19 Losses 59 137 145 154 157 157
20 Losses - % of Gen. 5.7% 12.6% 13.2% 13.2% 13.2% 13.2%
Source
24 Liters (000s) 296 330 316 335 340 340
Peak
25 Peak Load (KW) 233 224 291 309 313 313
26 Load Factor 50% 55% 43% 43% 43% 43%
Appendix A-27
Schedule A-3.13
713 Sanikiluaq
2009/10 2010/11 2010/11

SALES AND REVENUE
Domestic
1 Sales (MWh) 1,163 1,242 1,336 1,271 1,297 1,297
2 Customers 159 194 210 204 208 208
3 Av. MWh Sales/Cust. 7.31 6.41 6.36 6.23 6.23 6.23
4 Revenue (000s) 688 748 813 764 780 994
5 Cents/kWh 59.18 60.23 60.87 60.11 60.11 76.65
Commercial
6 Sales (MWh) 1,320 1,308 1,449 1,370 1,402 1,402
7 Customers 62 63 64 75 77 77
8 Av. MWh Sales/Cust. 21.29 20.76 22.64 18.27 18.27 18.27
9 Revenue (000s) 760 693 788 777 796 1,021
10 Cents /kWh 57.61 52.96 54.41 56.73 56.73 72.78
Streetlights
11 Sales (MWh) 49 34 34 34 34 34
12 Revenue (000s) 33 26 26 26 26 33
13 Cents /kWh 67.36 77.22 78.10 78.10 76.34 96.70
Total
14 Sales (MWh) 2,532 2,584 2,819 2,675 2,733 2,733
15 Customers 221 257 274 279 285 285
16 Revenue (000s) 1,481 1,467 1,628 1,567 1,601 2,048
17 Cents /kWh 58.52 56.77 57.76 58.60 58.57 74.91
GENERATION (MWh)
18 Station Service 50 64 79 79 79 79
19 Losses 200 81 135 128 131 131
20 Losses - % of Gen. 7.2% 3.0% 4.5% 4.4% 4.4% 4.4%
Source
24 Liters (000s) 752 766 812 785 802 802
Peak
25 Peak Load (KW) 603 630 596 566 578 578
26 Load Factor 53% 49% 58% 58% 58% 58%
Appendix A-28
APPENDIX B
CAPITAL ADDITIONS
1 B.1 INTRODUCTION
2 This appendix summarizes capital spending for 2007/08, 2008/09 and forecasts for the
3 Test Years 2009/10 and 2010/11. The Corporation has provided additional detail for
4 those projects over $100,000 including those projects previously approved by the Board
5 through Major Project Permit Applications.
6 B.2 2007/08 ACTUAL CAPITAL PROJECTS OVER $100,000
7 The following is a summary description of the capital additions over $100,000 for
8 2007/08. Schedule B.1 contains a breakdown of all capital additions for 2007/08.
9 Cambridge Bay Genset Replacement/
10 Plant Upgrade $1,170,000
11 This project involved replacement of one CAT D399 diesel engine with the new unit
12 (CAT 3508).
13 The project provides the following operational benefits:
14 1. The new engine increases overall fuel efficiency of the plant.
15 2. Installed new emissions friendly engine is more environmentally friendly then the
16 previous 27-year-old engine.
17 Kugaaruk Transient Accommodation $210,000
18 This project involved purchasing a prefabricated accommodation trailer to replace the
19 existing unit in Kugaaruk. Maintenance and construction crews (usually 2 or more
Appendix B: Capital Additions Page B-1

1 persons) are frequently required to go to Kugaaruk to perform routine and emergency
2 repairs to maintain service reliability and safety. This onsite maintenance could last
3 anywhere from one to six weeks in duration.
4 The old accommodations in Kugaaruk consisted of an old ATCO trailer. These quarters
5 were small and combined with the office. They were adequate for two people for a few
6 days, but in the occurrence that more than 2 people were on site, or for longers stays,
7 those accommodations were unsuitable.
8 This project addresses the need for suitable accommodations and standard of living for
9 employees who must work outside of their resident community.
10 Chesterfield Inlet Transient Accommodation $136,000
11 This project involved purchasing a prefabricated accommodation trailer to replace the
12 existing unit in Chesterfield Inlet.
13 Maintenance and construction crews (usually 2 or more persons) are frequently
14 required to go to Chesterfield Inlet to perform routine and emergency repairs to maintain
15 service reliability and safety. This onsite maintenance could last anywhere from one to
16 six weeks in duration.
17 This project was required to provide suitable accommodations and standard of living for
18 employees who must work outside of their resident community.
19 Iqaluit Fuel System Upgrade $365,000

1 This project was performed to address the operational and environmental contamination
2 issues.
3 The fuel oil supply line connects to the Uqsuq pipe line and is used for fuel oil transfers
4 from supply ships and the PPD tank farm. The support structures were aging and
5 failing, leaving a considerable portion of the pine line in contact with the ground. Such
6 situation increases the risk of accelerated corrosion of the pipelines and increases the
7 potential of environmental contamination.
8 The installation of a new support system increases the life expectancy of the pipeline
9 and reduces any risk of damage that could result in an environmental contamination.
10 Iqaluit Fuel System Upgrade –
11 Fed Plant $254,000
12 This project was performed to address the concerns identified in the report prepared in
13 2004 by the risk services division of the Zurich Insurance Company with respect to the
14 Iqaluit federal plant.
15 The report identified that the fuel system had several components that were in violation
16 of National Fire Code, National Building Code, CSA regulations, and the impending
17 CCME Fuel Code. The upgrades had to be made to prevent potential fire hazards and
18 fuel spills.
19 The project involved installing a new fuel system inside the plant to meet all applicable
20 codes and standards. The new fuel system includes a new pump module, level

1 standpipe control, ULC approved day tanks, control panel, fire valves, critical low temp
2 rated valves, etc. The new fuel system increases reliability and decreases risks of
3 environmental and safety hazards.
4 Pangnirtung Fuel System Upgrade $331,000
5 This project involved the installation of a new fuel transfer and distribution system to
6 address existed code violations and deficiencies that jeopardized reliability and
7 personnel and environmental safety.
8 The Power Plant in Pangnirtung received an electrical upgrade and one new generator
9 set in the 2003/04 fiscal year. At this time there were no upgrades made to the fuel
10 system. The fuel system had ongoing maintenance problems for operations and
11 maintenance personnel. The fuel system had several components that are in violation of
12 current National Fire Code and CSA regulations involving fuel storage, fire valves and
13 venting.
14 The upgrades were made to prevent potential fire hazards and fuel spills. These
15 precautions included installation of critical low temperature valves on all outside piping,
16 ULC approved day tanks, day tank level control panel, shutoff devices, fire valves,
17 proper ventilation and fuel coolers.
18 B.3 2008/09 ACTUAL CAPITAL PROJECTS OVER $100,000
19 The following is a summary description of the capital additions over $100,000 for
20 2008/09. Schedule B.2 contains a breakdown of all capital additions for 2008/09.

1 Taloyoak Ventilation System Upgrade $179,000
2 This project upgraded the ventilation system of the Taloyoak generation station, which
3 was constructed in 1972. The original ventilation system included 2 forced-air supply
4 fans and 1 passive exhaust opening. The original generator-sets have all been replaced
5 with larger units. The ventilation equipment had not been upgraded to handle the
6 additional generator-sets combustion air and thermal load requirements.
7 High building temperatures were adverse operating environments for personnel and
8 equipment. Doorways were often left ajar to promote natural airflow through the
9 machine hall. Consequently, dust infiltration increased during the summer months.
10 The ventilation system was not designed for the current operating conditions in
11 Taloyoak. It required an upgrade to satisfy the existing generator-sets combustion and
12 cooling air requirements.
13 New ventilation equipment included larger supply and exhaust fan assemblies and
14 ancillary equipment. Fan and damper motors are temperature-controlled.
15 Baker Lake Five-Plex Housing Unit $1,231,000
16 This project involved a purchase of a five-plex housing unit in Baker Lake for the needs
17 of the Corporation.
18 Until the purchase the Corporation was renting a four-plex unit in Baker Lake for staff
19 housing. Baker Lake is experiencing growth due to mining activities and pressure on
20 housing prices is driving rents upward.

1 The Corporation has a long term commitment to Baker Lake operations and does not
2 want to develop operational risk from a lack of housing or from rising prices. Having its
3 head office located in Baker Lake, renting housing units for the Corporation’s housing
4 needs did not offer a long term solution to the Corporation’s operational risks related to
5 housing issues. In order to provide a long term solution for housing issues and to
6 increase stability and predictability of its operations costs, the Corporation decided to
7 purchase a five-plex housing unit in Baker Lake.
8 Baker Lake Payroll Software System Implementation Penny B.L. $178,000
9 This project involved the purchase, installation, equipment upgrades of the Penny
10 Software System, and related training.
11 When the Corporation purchased Great Plains financial software several modules were
12 not implemented due to resource constraints. One of the modules not implemented
13 was the Payroll software and in the interim the Corporation continued to utilize its ABRA
14 payroll suite. This also meant that the Corporation continued to pay maintenance fees
15 for ABRA and costs associated with continuous upgrades. The ABRA software utilized
16 a separate database from the core financial software requiring an interface to be
17 maintained to port data from ABRA into the general ledger.
18 Implementing Great Plains software eliminated the maintenance and upgrade fees for
19 software which did not work directly with the general ledger. The Great Plains software
20 also enabled the Corporation to activate its Human Resources Information System
21 (HRIS) software enabling HR to produce essential employee reports for management.
22 The Great Plains payroll software also enabled the use of Penny time sheet software

1 which improved the efficiency of payroll while enabling employees to track their leave
2 and attendance credits online without contacting payroll. Accountability for time sheet
3 reporting was transferred to the Supervisor responsible for the employees.
4 Coral Harbour Line Distribution $218,000
5 This project was performed at the request of NAV Canada and has an offsetting
6 customer contribution against it from NAV Canada in the amount of $216,000.
7 The work required under this project was:
8 (a) Decommissioning of an existing underground power supply to the NAV Canada
9 transmitter and receiver sites;
10 (b) Installation of approximately 8 kilometers of overhead line utilizing 135 poles; and
11 (c) String and sag 20 kilometers of #1/0 primary conductor.
12 Repulse Bay Capacity Increase $1,678,000
13 This project involved the installation of two new generator sets at the power plant in
14 Repulse Bay to increase the firm capacity in the plant to meet current and future
15 projected load requirements.
16 Prior to the project implementation, the plant in Repulse Bay consisted of one Detroit
17 Diesel and two Caterpillar Generator sets. The existed generator set line-up offered the
18 plant a firm capacity of 630kW. The 06/07 actual peak was at 564kW; therefore a firm
19 capacity of 620kW was required (peak plus 10%). To meet the firm capacity

1 requirement for the next five years, it was decided that the firm capacity in the plant
2 should be increased to at least 830kW based on the current load forecast.
3 This project considered the replacement of the Cat 3412 and D3406 with new units
4 rated at 550-600 kW. Therefore the plant firm capacity increased to 880kW.
5 The project has the following advantages and benefits:
6 1. Increased firm capacity;
7 2. Increased reliability; and
8 3. Increased fuel efficiency.
9 Iqaluit Air System Improvement $110,000
10 In recent years there have been several projects at the power plant in Iqaluit which have
11 increased the demand on the compressed air system, including upgrades to the 12V32
12 and exhaust gas heat recovery units. The compressed air system had to be upgraded
13 as a result of these increased demands.
14 For instance, the receiver size on the 12V32 needed to be increased to allow for more
15 starting attempts. The previous installation allowed for only one short starting attempt,
16 then the operator had to wait for the compressors to fill the receivers again before
17 making another attempt. In one situation it took nearly six hours to start the Wartsila
18 12V32 after a shutdown.
19 The exhaust gas recovery units installed as part of 2008/09 year’s upgrade require
20 compressed air to blow down and clean tube fins in the heat exchanger. This system

1 requires large amounts of air to provide the proper cleaning. Also, the Wartsila 9R32
2 sits on air bags for isolators from the floor which required air. All systems require some
3 sort of air filtration which was not in place prior to the project’s implementation. Some of
4 the air system equipment was installed in 1969 and needed to be inspected and/or
5 replaced before there was a failure. The air system in Iqaluit operates at 250psi at the
6 air receivers.
7 Addition of air filters and auto drains improved air quality and reduced maintenance
8 costs on the system. Replacement of some of the older equipment improved the safety
9 of the system.
10 Iqaluit Emergency Gensets $611,000
11 This project involved purchase of a new 1000kw Continuously Rated generator set for
12 emergency standby use.
13 The Plant in Iqaluit needed a capacity increase in order to meet firm capacity
14 requirements by year 2009. However, with plans for a hydro project in the near future it
15 may not be feasible to move forward with a building addition with a new large generator
16 set for standby use in the future. This project considered purchasing a 1000kW unit to
17 be held in Iqaluit until the hydro project is online. The unit is enclosed in a trailer
18 package with breaker, radiator, and fuel supply. Once they are not required in Iqaluit
19 they may be shipped to other communities where they may be required for standby use.
20 Iqaluit Line Distribution $274,000

1 This project was performed for the Plateau Subdivision Upper development. The project
2 has an offsetting customer contribution against it in the amount of $274,000.
4 (a) Setting 35 poles for the power distribution in the sub-division;
5 (b) String & sag 9 km of #1/0 primary conductor; and
6 (c) Installation of pole-mounted transformers.
7 Iqaluit Building 1352 $499,000
8 QEC is a major Crown corporation in Nunavut and responsible for generation and
9 distribution of electrical power as essential service. Prior to the project implementation,
10 the set up of leased offices in town was far from normal situation which prohibited the
11 Corporation to operate efficiently. In addition to this, annual lease increases in Iqaluit
12 are very material every year, which drives up the Corporation’s operations cost.
13 The Operations Department is reasonably accommodated at the power plant site, but
14 the Corporate Office, Energy Center and Engineering Department were in different
15 locations, which did not help with cooperation and staff morale. The building and facility
16 conditions of leased spaces by these departments were as follows:
17 • Corporate Office – was located on the main floor of Parnaivik building. Office
18 space was poorly designed, and was not functioning properly. There was some
19 pressure from GN to vacate space for another GN use, even though the

1 corporation had sub-lease agreement until 2011. In addition, the lease was very
2 expensive.
3 • Energy Center – was located in an older converted house with good public
4 access and location. The lease was expiring in the fall of 2007, which was
5 expensive and the decision had to be made soon to either extend the lease or
6 find another space.
7 • Engineering Department – was leasing a space of approximately 60x70 ft. of a
8 heated warehouse. The space was poorly utilized and most of the space was
9 used for glycol and oil barrels, generator parts, furniture, office supplies, etc
10 The Corporation believed that immediate solutions were needed to resolve this
11 situation. In order to offer a long term solution to these problems, the Corporation
12 decided to purchase building No.1352 in Iqaluit.
13 Pangnirtung Feeder $119,000
14 This project was implemented to complete the replacement of the underground feeder
15 section located under the airport runway. The project involved the design/construction of
16 approximately 8 spans of overhead primary feeder line around the airport property to
17 supply the lower town site and retirement of the existing underground feeder cable and
18 duct.
19 The previous feeder #2 in the hamlet of Pangnirtung ran underground for approximately
20 200 meters and fed the lower side of town, with a peak load of 200 kilowatts. The
21 underground cable had a vintage of 20 years and the feeder line experienced

1 occasional outages due to blown fuse protection on the underground cable section.
2 Through field inspections, it indicated that the cable insulation was slowly deteriorating
3 over time, causing short duration cable faults during periods of peak load and high
4 neutral return currents.
5 This upgrade increases the reliability of the feeder and eliminates failure maintenance
6 trips associated with the current condition of the cable.
7 Resolute Bay South Camp Voltage Conversion $251,000
8 The South Camp section of the Resolute Bay System was the oldest and the most
9 problematic section within the Baffin region. The area was fed from a vintage 5 kV
10 substation and supply’s 2,400 volt, 3 phase delta was connected to the feeder from the
11 existing main 12.5 kV trunk line supplying the town site.
12 This project included completion of the following work:
13 (a) Upgrade the South Camp Section of the Resolute Bay System to current QEC
14 distribution standards;
15 (b) Replace deteriorated wood pole structures; and
16 (c) Convert the primary voltage to 12.5 kV, and decommission the existed 5 kV
17 substation located in the south camp area.
18 This project improved climbing safety and removed problematic unsafe transformers
19 from service.
20 Qikiqtarjuak Line Distribution $373,000

1 This project was performed for the Water Fill Station Line and has a customer
2 contribution against it in the amount of $373,000.
4 (a) Installation of 3 kilometers of distribution line utilizing 52 poles;
5 (b) String & sag 15 kilometers of #1/0 primary conductor; and
6 (c) Installation of a 15 kva pole-mounted transformer bank.
7 B.4 2009/10 FORECASTED CAPITAL PROJECTS OVER $100,000
8 The following is a summary description of the forecasted capital additions over
9 $100,000 for 2009/10. Schedule B.3 contains a breakdown of all forecast capital
10 additions for 2009/10.
11 Cambridge Bay Genset Replacement $1,546,000
12 This is a two year project, part of which will be capitalized in the 2010/11 fiscal year.
13 The project involves replacing two of the existing generator sets in Cambridge Bay. The
14 project has a customer contribution in 2009/10 in the form of Government funding
15 against it in the amount of $492,000.
16 One of these generators has reached its life expectancy and the other unit is required to
17 increase the firm capacity.

1 Of the two engines ordered for Cambridge Bay, one was installed in 2009/10 fiscal year,
2 with the in-service date of March 2010. The second unit will be installed in September-
3 November of 2010/11 fiscal year and will be capitalized in that year.
4 The project has the following advantages and benefits:
5 1. Firm capacity increase for foreseeable future;
6 2. Increased reliability; and
7 3. Increased fuel savings due to higher fuel efficiency.
8 Gjoa Haven Capacity Increase $1,070,000 (total $1,878,000)
9 This is a two year project and the first year was approved and carried in the 2008/09
10 fiscal year. The project spending in 2008/09 was $808,000 and the remainder
11 $1,070,000 is budgeted for 2009/10. The project has a customer contribution in the form
12 of Government funding against it in the amount of $225,000 in 2009/10 and $271,000 in
13 2010/11.
14 This project involves replacement of two generator sets in the Gjoa Haven plant; one
15 generator to increase the firm capacity and meet projected load requirements and,
16 another replacement to increase reliability. Installation of these new engines will require
17 some minor upgrades in the plant including the 24 VDC charging and distribution
18 system – new model generator sets place an increased demand on the 24 VDC system
19 as a result of the onboard electronics.
20 Rankin Inlet Emergency Generator Installation $520,000

1 This project involves placing the 850 kW emergency generator set in Rankin Inlet in a
2 mobile self contained building and connecting it to the current switchgear line-up for
3 emergency purposes. The building will be mobile by ground or sealift only, as it is not
4 practical to install this size of generator in a building that would be mobile by aircraft.
5 The project has a customer contribution in the form of Government funding against it in
6 the amount of $246,000 in 2009/10 and 296,000 in 2010/11.
7 Presently, the plant in Rankin Inlet consists of four generator sets. In the winter of 2008
8 there was a power outage as result of two consecutive engine failures in the power
9 house; both EMD engines had major failures. An emergency unit was purchased and
10 temporary connected to the switchgear in place of one of the failed engines to help
11 provide power to the town. Since then the failed engine was repaired, put back in
12 service and the emergency engine has been disconnected. The purpose of this project
13 is to install this engine in a prefabricated building near the plant with its own fuel supply
14 and cooling capabilities for the use in emergency situations. The generator set will be
15 electrically connected to the plant for exercise and immediate availability during
16 emergency situations.
17 Rankin Inlet Generator Replacement $1,200,000
18 This project involves replacing one of the existing generator sets in Rankin Inlet with a
19 larger capacity unit. One of generators is near its life expectancy and a firm capacity
20 increase is required to meet future forecasted load requirements.

2 the amount of $553,000.
3 Presently, the plant in Rankin Inlet consists of four generator sets. Unit 3031903 (Cat
4 3516) has accumulated 92566 hours of operation which is near its life expectancy. The
5 life expectancy of a 1200 rpm engine is approximately 100,000 hrs. This engine has had
6 several minor failures in recent years and we should expect to see a higher frequency of
7 failures as the service time reaches and extends past 100,000 hrs.
8 Considering firm capacity in this situation, by replacing the 950 kW unit with a 1500 kW
9 unit, firm capacity is increased to 3890 kW. Therefore, firm capacity requirements will be
10 met until past 2013-14 based on current load forecasts.
11 Baker Lake Fuel Cooling Radiators - Nunavut $150,000
12 The majority of all fuel oil cooling radiators historically have been installed without the
13 requirement of any spill containment. In the event of a ruptured line fuel, environmental
14 contamination will be the end result.
15 Due to new regulations for environmental protection, all plants are required to have spill
16 containment provided, so that in the event of any spillage the impact on the
17 environmental is greatly reduced. Therefore the Corporation is working towards
18 ensuring this issue is addressed and has relocated the radiators at Iqaluit and Arctic
19 Bay this year.
20 Baker Lake Fire Alarm System - Nunavut $150,000

1 This project is a mandate to upgrading and installing a Fire Alarm System in two Power
2 Plants this year. The plants will be identified by availability of the electrical contractors in
3 communities to minimize price for mobilization.
4 Currently there are several plants within QEC’s organization that do not have fire
5 detection and alarm systems. As well, there are plants with fire detection and alarm
6 systems that require modifications and/or upgrade. The project will permit the
7 Corporation to have a standard fire detection and alarm system installed in plants as per
8 National Fire Protection Act codes. Systems have been installed in Rankin Inlet and
9 Chesterfield Inlet.
10 Resolute Bay Capacity Increase $816,000 (total $1,506,000)
11 This is a two year project and the first year was approved and carried in the 2008/09
12 fiscal year. The project spending in 2008/09 was $690,000 and the remainder $816,000
13 is budgeted for 2009/10. This project involves replacement of two Waukesha generator
14 sets at the power plant in Resolute Bay to increase the firm capacity to meet current
15 and future projected load requirements. One of the generators to be replaced is
16 currently out of service and one is unreliable. There are no replacement parts for these
17 generators, because Waukesha diesel engines are discontinued..
19 the amount of $260,000 in 2009/10 and $313,000 in 2010/11.
20 Pond Inlet Capacity Increase $1,140,000

1 This project involves replacement of two generator sets at the power plant in Pond Inlet
2 to increase the firm capacity, reliability and to meet current and future projected load
3 requirements. Installation of an air start system for all engines will also take place to
4 improve reliability of starting and reduce maintenance costs.
6 the amount of $229,000 in 2009/10 and $275,000 in 2010/11.
7 With this option firm capacity requirements would be met until 2016 or 2017 based on
8 the estimated future load forecast. There will see increase in fuel savings as result of
9 replacing older diesel generator sets with new fuel efficient generator sets.
10 This project has the following advantages and benefits:
11 1. Increased firm capacity
12 2. Increased reliability
13 3. Increased fuel efficiency
14 4. The two new engines will utilize the same spare parts and consumables and next
15 firm capacity upgrade will not be not required for 7-8 years.
16 Arctic Bay Fuel Cooler Moved Inside Berm $105,000
17 This project involves relocating fuel coolers from outside the fenced area to inside the
18 containment berm which is also within a fenced area.

1 Currently the fuel coolers are located outside the fenced area near the plant. There are
2 reports of children playing around the coolers and associated valves and piping. This
3 could pose a safety threat to children, and also an environmental concern if there is
4 damage to the equipment resulting in a fuel spill.
5 Relocating the fuel coolers to inside the fenced area will add security as the general
6 public will not have access to the equipment. Also the coolers will be relocated to inside
7 the berm so that in the event of a failure any spill could be contained inside the berm,
8 which increases the safety and has less environmental risk.
9 Grise Ford Transient Unit / Office $150,000
10 This project involves purchasing a prefabricated accommodation trailer to replace the
11 existing unit in Grise Fiord.
12 The Corporation’s office in Grise Fiord was located in a government building which was
13 closed down. The transient trailer in Grise Fiord was converted to an office for the Plant
14 Superintendent and the Assistant Operator. The trailer has been used as an office for
15 about a year and a half.
16 The local hotel has six rooms and many times it is completely booked. This affects the
17 ability to effectively schedule maintenance and overhauls in the Grise Fiord plant.
18 Being Canada’s most northerly community and at times difficult to get into because of
19 aircraft restrictions (only Twin Otter), having a crew trailer in Grise Fiord would be a
20 valuable asset.

1 This option proposes the installation of a prefabricated accommodation trailer in Grise
2 Ford. This option would provide comfortable and safe living conditions for QEC
3 employees while working outside of their home community, as well as permit reliable
4 scheduling of maintenance and repair work.
5 B.5 2010/11 FORECASTED CAPITAL PROJECTS OVER $100,000
6 The following is a summary description of the forecasted capital additions over
7 $100,000 for 2010/11. Schedule B.4 contains a breakdown of all forecast capital
8 additions for 2010/11.
9 Cambridge Bay Genset Replacement $650,000
10 This is a two year project, part of which was implemented in 2009/10 fiscal year. The
11 project involves replacing two of the existing generator sets in Cambridge Bay. One of
12 these generators has reached its life expectancy and the other unit is required to
13 increase the firm capacity.
14 Of the two engines ordered for Cambridge Bay, one was installed in 2009/10 fiscal year,
15 with the in-service date of March 2010. The second unit will be installed in September-
16 November of 2010/11 fiscal year and will be capitalized in that year.
17 Rankin Inlet Genset Replacement $1,700,000
18 This project involves replacing one of the existing generator sets in Rankin Inlet with a
19 larger capacity unit. The engine was purchased in 2009/10 and will be installed
20 2010/11.

2 the amount of $666,000.
3 One of generators is near its life expectancy and a firm capacity increase is required to
4 meet future forecasted load requirements. Unit 3031903 (Cat 3516) has accumulated
5 92566 hours of operation which is near its life expectancy. The life expectancy of a
6 1200 rpm engine is approximately 100,000 hrs. This engine has had several minor
7 failures in recent years and the Corporation’s specialists expect to see a higher
8 frequency of failures as the service time reaches and extends past 100,000 hrs.
9 Considering firm capacity in this situation, by replacing the 950 kW unit with a 1500 kW
10 unit, firm capacity is increased to 3890 kW. Therefore, based on current load forecasts,
11 firm capacity requirements will be met until 2013-14. With the existing configuration,
12 based on current load forecasts, the plant will be exceeding the minimum firm capacity
13 requirement in the winter of 2010.
14 Baker Lake Capacity Increase $624,000
15 This Project involves installing an additional generator set to increase the firm capacity
16 to meet present and projected future load requirements. The engine will be installed in
17 an empty bay at the Baker Lake plant and no modifications to the plant are necessary.
18 Baker Lake has seen a significant growth in recent years and plans for a new 50
19 building lot subdivision for this year. This is partially a result of the increased mining
20 activity taking place nearby, increasing demand for the power plant.

1 The new power plant in Bake Lake was completed in 2005, at which time two new
2 generator sets were installed and one existing generator set was relocated from the old
3 plant. The existing generator set line-up offers the plant a firm capacity of 1610kW. The
4 08/09 actual peak was 1467kW and a firm capacity of 1614kW was needed as the
5 requirement is firm capacity must meet projected peak plus 10%. The purchase of a
6 new generator at 550 kW will increase the firm capacity to 2160kW.
7 Baker Lake Nunavut wide – Electronic Document Management System $350,000
8 The Corporation currently has no formal document management system in place.
9 Documents are currently stored in various locations across the territory:
10  Baker Lake 2 Locations
11  Cambridge Bay 3 Locations
12  Iqaluit 7 Locations
13  Rankin Inlet 3 Locations
14 Each location represents a separate building within the community. Within each
15 location documents may exist in filing cabinets, shelves, offices, boxes, sea-cans,
16 employee computers or network storage locations.
17 This has left the Corporation in the position of having information fragmented across the
18 territory and throughout communities making the searching and retrieval of information
19 costly, time consuming and difficult.

1 The situation is often times made worse when employees leave the company with the
2 knowledge of where specific information is located.
3 QEC considers purchasing an electronic document management system to ensure that
4 all corporate information is stored in an electronic format and is easily accessible
5 through the central repository.
6 Arviat Fuel Oil System Upgrade $290,000
7 In August 2004 a new power plant addition was constructed at the Arviat facilities. The
8 new construction involved the installation of a new engine (G-4). The existing fuel oil
9 supply was connected to the new engine. Approximate length from the existing fuel oil
10 system to the new engine is 20-25m and a lift of 2-3m.
11 It was noticed by the Corporation’s specialists after some time that they were having
12 problems running the engine at full rated load. Other engine defects were suspected as
13 being the result of higher than normal operating vacuum on the fuel oil supply line to the
14 engine. The engine had to be de-rated from 860kW to 800 kW.
15 This project will conduct upgrades to reduce the vacuum within normal operating limits
16 as recommended by the manufacturer and then the engine can run at original intended
17 load. This would require the installation of a new self containing day tank, day tank level
18 and pump control panel, transfer pump, shutoff devices, fire valves and fuel cooler. As
19 the main fuel oil supply line from the bulk tank is nearby, connection to it would be a
20 possibility. This project will also increase the reliability.
21 Arviat D398 Genset Replacement $774,000 (total $1,224,000)

1 This project is a two year project which totals $1.224 million budgeting $450,000 for
2 2009/10 and the remainder $774,000 for 2010/11. The project has a customer
3 contribution in the form of Government funding against it in the amount total of $511,600
4 ($232,086 in 2009/10 and $279,514 in 2010/11).
5 It involves replacing one of the existing generators sets in Arviat because it is past its
6 life expectancy and addresses a requirement to meet future forecasted load of in
7 2010/11.
8 The unit being replaced, Unit 3031220 (Cat 398) has accumulated over 101,658 hours
9 of operation which is past its life expectancy of a 1200 rpm engine (with life expectancy
10 of approximately 100,000 hours). This engine has had several minor failures in recent
11 years and the Corporations expects to see a higher frequency of failures as the service
12 time is past 100,000 hours. This engine failed during the commissioning of another
13 engine and was repaired, but at present time it is unable to operate beyond ½ of its
14 capacity.
15 Considering firm capacity in this situation, firm capacity will increase to 3890 kW by
16 replacing the 950 kW unit with a 1500 kW unit. Therefore, firm capacity requirements
17 will be met until past 2013/14 based on current load forecasts. The engine was
18 purchased in 2009/10 and will be installed 2010/11.
19 Arviat Radiators/ Structure 3512/398 $292,000 (total $486,000)
20 This project is a two year project which totals $0.486 million budgeting $194,000 for
21 2009/10 and the remainder $292,000 for 2010/11.

1 This project involves upgrading the radiators/structure on the G-1 (D3512 and G-3
2 (D3516) engines in Arviat. These engines are currently using a radiator bank that was
3 left from a previous installation. It was installed in place of two removed D353’s that
4 were installed prior to 1979. Records indicate that the existing radiators were designed
5 for an ambient temperature of 17 degrees Celsius. Because the ambient temperature
6 exceeds well above the 170C design temperature in summer time and given that there
7 is some fouling on the radiators, the 3512 rejects more heat than the current setup can
8 dissipate. Therefore, the engine is unable to carry full load as a result of this problem
9 and the engine had to be de-rated.
10 In addition to this problem, there is some movement in the existing radiator structures
11 (jack piles) which is placing unnecessary strain on the cooling system piping.
12 This project will review the current system and more cooling capacity will be added. A
13 new radiator will be added to each of the existing banks increasing their capacity. Also,
14 the cooling system will be flushed to allow more efficient operation. In addition, a
15 concrete pad will be installed under G-1 radiator structure to stabilize any movement
16 caused by jacking piles.
17 The benefits of this project are as follows:
18 1. There will be an increased reliability with reduced risk;
19 2. Firm capacity will not have to take into account de-rated engines; and
20 3. Increased fuel efficiency, as engines will be able to operate at recommended
21 loads.

1 Chesterfield Inlet Capacity Increase $920,000 (total $1,615,000)
2 This project is a two year project which totals $1,615 million budgeting $695,000 for
3 2009/10 and the remainder $920,000 for 2010/11. The project has a customer
4 contribution in the form of Government funding against it in the amount total of $361,100
5 ($163,800 in 2009/10 and $197,300 in 2010/11).
6 This project involves the replacement of two generator sets at the power plant to
7 increase the firm capacity in the plant to meet current and future projected load
8 requirements.
9 Presently the plant in Chesterfield Inlet consists of two Caterpillar and one Detroit Diesel
10 Generator sets. The existing generator set line-up offers the plant a firm capacity of 500
11 kW (total plant capacity minus that of the largest unit). The 06/07 actual peak was at
12 380 kW; therefore a firm capacity of 418 kW is required (projected peak plus 10%). The
13 required firm capacity is still sufficient for next few years but the engine D3412 is
14 reaching the end of its lifecycle.
15 To meet firm capacity requirements until 2012/13 the Corporation needs to replace the
16 generators (D3412 300 kW) and (S50 200 kW) with two new S60 320 kW generator
17 sets. This project considers replacement of two generator sets with the new units rated
18 at 320 kW. Therefore the plant firm capacity will be increased to 640 kW. Firm capacity
19 requirements will be met beyond year 2012/13.
20 Whale Cove Capacity Increase $485,000 (total $815,000)

1 This project is a two year project which totals $815,000 budgeting $330,000 for 2009/10
2 and the remainder $485,000 for 2010/11. The project has a customer contribution in the
3 form of Government funding against it in the amount total of $543,200 ($246,420 in
4 2009/10 and $296,780 in 2010/11).
5 This project involves adding one generator set in an existing bay at the power plant in
6 Whale Cove to increase the firm capacity and meet current and future projected load
7 requirements. It also involves relocation of a surplus 320 kW Detroit Diesel S60 from
8 Gjoa Haven.
9 Presently the plant in Whale Cove consists of three Caterpillar Diesel Generator sets.
10 The existing generator set line-up offers the plant a firm capacity of 450 kW (total plant
11 capacity minus that of the largest unit). The 06/07 actual peak was at 370 kW; therefore
12 a firm capacity of 407 kW is required (projected peak plus 10%). The required firm
13 capacity will need to be increased in 2008/09 to meet the 2009/10 forecast. To meet
14 firm capacity requirements beyond 2009/10 the Corporation will install a 300 - 350 kW
15 generator set.
16 The plant in Whale Cove was built in 1991 and constructed with four engine bays. At
17 that time, there was a requirement to only install three Generator sets, but
18 considerations were taken when installing the switchgear to accommodate a future
19 fourth generator set. Therefore, it is much more economical to add a fourth engine now
20 than replace one of the existing engines. Firm capacity requirements will be met well
21 beyond five years in the future. The given estimate is based on a relocation cost
22 estimate of $50,000 to transport the generator set from Gjoa Haven to Whale Cove.

1 This project has the following advantages and benefits:
2 1. Increased firm capacity and reliability;
3 2. Reusing an existing engine from Gjoa Haven instead of selling it as surplus; and
4 3. Meeting future firm capacity requirements.
5 Iqaluit Air System Compressor $322,000
6 The Main Power Plant air system consists of three electric air compressors, one
7 emergency diesel powered air compressor and eight 400 gallon air receivers. Previous
8 upgrades to the plant air receivers system have left the plant with insufficient
9 compressor capacity to meet the new air receiver volumes.
10 The previous air receiver system consisted of three 400 gallon for the Cat engines and
11 three 200 gallon for the Wartsilla engines. All engines require air for starting and two of
12 which require a continuous air supply to run.
13 Due to limited space in the power plant the air compressors are located up on the
14 mezzanine above the fuel room. At this location the air temperature is around the 400C
15 range and above the manufacturers recommended operating temperature. Relocation
16 of the air compressors to a different location is not a feasible option.
17 This project involves the engineering deigning and construction of an enclosure that will
18 provide temperature controls for the air compressors and installing new air compressors
19 to meet capacity requirements.
20 Pangnirtung Installation of Transient Unit $173,000

1 This project proposes the procurement of one transient unit for Pangnirtung.
2 The local hotels in the community many times are completely booked. This affects the
3 ability to effectively schedule maintenance and overhauls in the communities. At times it
4 can be difficult to get into the community because of aircraft restrictions, and therefore
5 having a transient unit in the communities would be a valuable asset.
6 On many occasions the Corporation’s personnel have had to share rooms with non-
7 Corporation personnel and on several emergency situations personal have had to sleep
8 in the plants. There have been other instances where the hotel was overbooked and the
9 Corporation personnel had to return to Iqaluit.
10 The availability of transient accommodations could also reduce the cost of QEC
11 contracts with private contractors as accommodations could be provided.
12 Cape Dorset Boom Truck $173,000
13 This project proposes purchase of a used Radial Boom Derrick Truck (RBD). This will
14 provide a serviceable working vehicle that will meet the working requirements of the
15 Line Group and the various other work groups visiting the community. The
16 manufacturers of these trucks often have demonstrator or returned from lease models
17 available. The option offers the advantage of lower initial cost over purchasing new
18 while having the entire new vehicle nuisance repairs already completed. The cost of a
19 new truck is estimated at $288,000.
20 Like many of the communities in Nunavut, Cape Dorset is growing and maintenance is
21 taking longer. The average estimated cost to set a pole using current methods is in the

1 order of $3,500 per unit. The same installation using a RBD truck is estimated at
2 $1,100.
3 The RBD truck has a combination of features such as a working platform (manlift),
4 auger and crane. In addition to reducing the amount of pole climbing, RBDS are used to
5 drill pole and anchor holes and lift and set heavy objects such as poles, transformers
6 and switchgear.
7 Kimmirut Installation of Transient Unit $173,000
8 This project proposes the procurement of one transient unit for Kimmirut.
9 The local hotels in the community many times are completely booked. This affects the
10 ability to effectively schedule maintenance and overhauls in the communities. At times it
11 can be difficult to get into the community because of aircraft restrictions, and therefore
12 having a transient unit in the communities would be a valuable asset.
13 On many occasions the Corporation’s personnel have had to share rooms with non-
14 Corporation personnel and on several emergency situations personal have had to sleep
15 in the plants. There have been other instances where the hotel was overbooked and the
16 Corporation personnel had to return to Iqaluit.
17 The availability of transient accommodations could also reduce the cost of QEC
18 contracts with private contractors as accommodations could be provided.

1 Kimmirut has the highest priority for transient unit installation because of a planned
2 capacity increase for 2012/2013, which will create a major requirement for
3 accommodations for the work crews.

Appendix B-1
ACTUAL CAPITAL ADDITIONS FOR 2007/08
Energy
Plant # Plant name Project # Description FERC Code Diesel Plant Distribution General Plant Utilization Total Plant Total
Group
501 Cambridge Bay 5240 Gen set Replace/Plant Upgrade 343 1,170 1,170
Capital Additions Less Than $50,000 44 44
1,213
504 Kugaaruk 5285 Transient Accomodation 390 210 210

210
505 Kugluktuk 5289 Radial boom truck 392 55 55

59
602 Baker Lake Capital Additions Less Than $50,000 60 60

60
603 Arviat 5257 Fuel system upgrade 342 60 60

60
604 Coral Harbour Capital Additions Less Than $50,000 13 13

13
605 Chesterfield Inlet 5293 Transient Accomodation 390 136 136

5286 Radial boom truck 392 73 73
209
607 Repulse Bay 5298 Man lift 392 37 37

37
701 Iqaluit 5266 Fuel system upgrade - Fed plant 342 254 254
5268 Fuel system upgrade 342 365 365
6151 Distribution Line Project 365 54 54
Capital Additions Less Than $50,000 22 129 151
824
702 Pangnirtung 5270 Fuel system upgrade 342 331 331

392
QEC 2010/11 General Rate Application

Appendix B-32
Appendix B-1
Energy
Group
703 Cape Dorset Capital Additions Less Than $50,000 19 19

19
704 Resolute Bay Capital Additions Less Than $50,000 38 38

38
705 Pond Inlet 6120 Distribution Line Project 365 83 83

5304 Radial boom truck 392 57 57
183
706 Igloolik Capital Additions Less Than $50,000 37 37

37
710 Arctic Bay Capital Additions Less Than $50,000 12 12

12
711 Clyde River 6183 Distribution Line Project 365 50 50

50
713 Sanikiluaq Capital Additions Less Than $50,000 22 22

22
Subtotal 2,272 430 735 0 3,437 3,437
Significant Spare Parts 399 0 0 2,683 0 2,683 2,683
Total 2,272 430 3,418 0 6,120 6,120

Appendix B-33
Appendix B-2
Energy
Group
501 Cambridge Bay 5281 System Ground Study/Upgrade Cam Bay 341 100 100
100
502 Gjoa Haven Capital Additions Less Than $50,000 60 60

60
503 Taloyoak 5279 Ventilation System Upgrade Taloyoak 346 179 179
179
602 Baker Lake 5313 QEC 5-plex Unit Bakr Lake 390 1,231 1,231
5314 Payroll Software System Impl Penny B.L. 391 178 178
1,441
603 Arviat Capital Additions Less Than $50,000 14 14

14
604 Coral Harbour 6169 Line Distribution 365 218 218

218
605 Chesterfield Inlet Capital Additions Less Than $50,000 32 32

32
606 Whale Cove Capital Additions Less Than $50,000 15 15

15
607 Repulse Bay 5294 Capacity Increase, Repulse Bay 343 1,678 1,678
1,724
701 Iqaluit 5301 Air System Improve., Iqaluit 342 110 110
5295 Emergency Genset Iqaluit 344 611 611
6163 Line Distribution 365 274 274
5310 Building 1352 Iqaluit 390 499 499
1,876

Appendix B-34
Appendix B-2
Energy
Group
702 Pangnirtung 5269 Feeder Pangnirtung 365 119 119

150
703 Cape Dorset Capital Additions Less Than $50,000 49 49

49
704 Resolute Bay 5303 South Camp Voltage Conv., Resolute 345 251 251
262
705 Pond Inlet Capital Additions Less Than $50,000 33 33

33
706 Igloolik 6188 Line Distribution 365 53 53

107
708 Qikiqtarjuaq 6164 Line Distribution 365 373 373

385
709 Kimmirut Capital Additions Less Than $50,000 13 13

13
710 Arctic Bay Capital Additions Less Than $50,000 27 27

27
711 Clyde River Capital Additions Less Than $50,000 8 8

8
Subtotal 2,928 1,696 2,067 0 6,691 6,691
Significant Spare Parts 399 597 597 597
Total 2,928 1,696 2,664 0 7,288 7,288

Appendix B-35
Appendix B-3
FORECAST CAPITAL ADDITIONS FOR 2009/10
Energy Utilization
Plant # Plant name Description FERC Code Diesel Plant Distribution General Plant Total Plant Total
Group
501 Cambridge Bay Genset Replacement 343 1,546 1,546

1,586
502 Gjoa Haven Capacity Increase 343 1,878 1,878

1,878
505 Kugluktuk Capital Additions Less Than $50,000 45 45

45
601 Rankin Emergency Generator Installation 343 520 520

Generator Replacement 343 1,200 1,200
1,720
602 Baker Lake Fuel Cooling Rads-Pond Inlet 343 150 150
Fire Alarm -Coral Harbour Repulse 346 150 150
340
605 Chesterfield Inlet Capital Additions Less Than $50,000 28 45 73

73
606 Whale Cove Capital Additions Less Than $50,000 45 45

45
701 Iqaluit Cat 3612 Lifting Device 343 75 75

Alternator for Series 60 344 50 50
245
704 Resolute Bay Capacity Increase 343 1,506 1,506
1,506
705 Pond Inlet Capacity Increase 343 1,140 1,140

1,185
707 Hall Beach Protective Relay Upgrade 395 100 100

100

Appendix B-36
Appendix B-3
Energy Utilization
Group
710 Arctic Bay Fuel Coolers moved inside berm 343 105 105
150
712 Grise Fiord Transient Unit / Office 390 150 150

150
Total 8,458 0 565 0 9,023 9,023

Appendix B-37
Appendix B-4
Energy Utilization
Group
501 Cambridge Bay Genset Replacement 343 650 650

695
503 Taloyoak Fuel Cooling Rads 343 89 89

Environmental Delineation Study 399 63 63
153
601 Rankin Inlet Genset Replacement 343 1,700 1,700

1,763
602 Baker Lake Capacity Increase 343 624 624

Electronic Document Management System 391 350 350
974
603 Arviat Fuel Oil system Upgrade 342 290 290

D398 Genset Replacement 343 1,224 1,224
Radiators/Structure 3512 / 398 343 486 486
Fuel Cooling Rads 343 89 89
2,130
604 Coral Harbour Fire Alarm System 346 89 89

89
605 Chesterfield Inlet Capacity Increase 343 1,615 1,615

1,615
606 Whale Cove Capacity Increase 343 815 815

878
607 Repulse Bay Fire Alarm System 346 89 89

89

Appendix B-38
Appendix B-4
Energy Utilization
Group
701 Iqaluit Air System Compressors Iqaluit Main Plant 343 322 322
Vehicle Replacement #40 392 50 50
Diesel / Water Seperator 396 57 57
474
702 Pangnirtung Fire Alarm System 346 89 89

Transient Unit 390 173 173
262
703 Cape Dorset Short Term Capacity Increase 343 100 100
Boom Truck 392 173 173
273
707 Hall Beach Fuel Cooling Rads 343 89 89

135
708 Qikiqtarjuaq Capital Additions Less Than $50,000 45 45

45
709 Kimmirut Fuel Cooling Rads 343 89 89

Fire Alarm System 346 89 89
Transient Unit 390 173 173
396
Total 8,539 42 1,390 - 9,971 9,971

Appendix B-39

APPENDIX C
AMORTIZATION STUDY

Iqaluit, Nunavut
DEPRECIATION STUDY
CALCULATED ANNUAL DEPRECIATION ACCRUAL RATES
APPLICABLE TO PLANT IN SERVICE
AT MARCH 31, 2008
Harrisburg, Pennsylvania Calgary, Alberta Valley Forge, Pennsylvania
Appendix C-1
GANNETT FLEMING, INC.

Suite 277
200 Rivercrest Drive SE
Calgary, Alberta T2C 2X5
Office: (403) 257-5946
Fax: (403) 257-5947
www.gannettfleming.com
June 30, 2010

P.O Box 250
Iqaluit, NU X0A 0H0
Attention: Mr. Darryl Taylor

Regulatory Analyst
Pursuant to your request, we have conducted a depreciation study related to the

electric generation, and distribution system of Qulliq Energy Corporation as of March
31, 2008. Our report presents a description of the methods used in the estimation of
depreciation, the statistical analyses of service life and the summary and detailed
tabulations of annual and accrued depreciation.
The depreciation study includes the development of depreciation rate for a

number of new accounts to comply with the provisions of Public Sector Accounting
Standards (“PSA”).
The calculated annual depreciation accrual rates presented in the report are
applicable to plant in service as of March 31, 2008. The depreciation rates are based
on the straight-line whole life method using the average service life, with any
accumulated depreciation variances in excess of 5% amortized over the estimated
remaining life of the assets. An annual review of the depreciation rates using the same
estimates and methods is recommended.
Respectfully submitted,
GANNETT FLEMING VALUATION

AND RATE CONSULTANTS, INC.
LEK:hac LARRY E. KENNEDY

Project: 051626 Director, Canadian Operations
Appendix C-2
CONTENTS
PART I. INTRODUCTION
Scope ................................................................................................................... I-2

Basis of the Study ................................................................................................ I-3
Depreciation ............................................................................................. I-3
Service Life and Net Salvage Estimates .................................................... I-3
Recommendations ............................................................................................... I-4
PART II METHODS USED IN THE ESTIMATION OF DEPRECIATION
Depreciation ................................................................................................................. II-2

Estimation of Survivor Curves ...................................................................................... II-3
Survivor Curves ................................................................................................. II-3
Retirement Rate Method of Analysis ................................................................. II-4
Survivor Curve Judgments ................................................................................ II-5
Estimation of Net Salvage ............................................................................................ II-9
Calculation of Annual and Accrued Depreciation ....................................................... II-10
Group Depreciation Procedures ...................................................................... II-10
Calculation of Annual and Accrued Amortization ....................................................... II-14
Monitoring of Book Accumulated Depreciation ........................................................... II-15
PART III RESULTS OF STUDY
Qualification of Results................................................................................................ III-2

Description of Detailed Tabulations ............................................................................. III-2
Table 1 Summary of Original Cost, Calculated Annual

Depreciation and Annual Provision for True-Up
Related to Property Group balances at
March 31, 2008 ............................................................................................ III-3
Table 2 Estimated Survivor Curves, Net Salvage, Original Cost
and Calculated Annual Depreciation as of
March 31, 2008 ............................................................................................ III-4
Table 3 Calculated Accrued Depreciation, Book Accumulated
Depreciation and Determination of Annual Provision
for True-Up Related to Original Cost as at
March 31, 2008 ............................................................................................ III-5
Detailed Depreciation Calculations – Calculated Annual and

Accrued Depreciation ................................................................................... III-6
Appendix C-3
Appendix C-4
DEPRECIATION STUDY
SCOPE
This report sets forth the results of the depreciation study conducted for the
electric generation, distribution and general plant assets of Qulliq Energy Corporation
(“Qulliq” or “QEC”) to determine the annual depreciation accrual rates and amounts for
ratemaking purposes applicable to the original cost of plant at March 31, 2008.
The depreciation accrual rates presented herein are based on generally-
accepted methods and procedures for calculating depreciation. The estimated survivor
curves and estimated net salvage percents used in this report are based on studies
incorporating data through 2008 for most accounts and incorporate the results of an a
review of operational practices and accounting procedures.
Gannett Fleming has been advised that Qulliq will be adopting standards and
practices consistent with Public Sector Accounting (“PSA”). In accordance with these
practices, this depreciation study makes no provision for the recovery of future net
salvage costs. Under PSA standards, all costs of removal are charged to the income
statement in the year of the expenditure of the funds. As such, there is no requirement
for the recovery of costs of removal through the depreciation rate. Part I, Introduction,
contains statements with respect to the scope of the report and the basis of the study.
Part II, Methods Used in the Estimation of Depreciation, presents the methods used in
the estimation of average service lives, survivor curves and in the calculation of
depreciation. Part III, Results of Study, presents a summary of annual depreciation,
and the detailed tabulations of annual depreciation.
Appendix C-5
BASIS OF THE STUDY
Depreciation. The annual depreciation accrual and the related calculated
requirement for accumulated depreciation were calculated using the straight line
method, the whole life basis and the average service life (“ASL”) procedure. The
calculation was based on the attained ages and estimated service life and net salvage
characteristics for each depreciable group of assets.
Service Life Estimates. The average service life estimates for each depreciable
were primarily based on the professional judgment of Gannett Fleming. In selecting the
average service lives, Gannett Fleming gave consideration to the average service lives
selected for a peer group of electric utilities, the experience of Gannett Fleming in
selecting average service lives for similar plant, the general condition of the utility plant
as observed by Gannett Fleming, and on the comments and views of internal Qulliq
experts.
RECOMMENDATIONS
The calculated annual depreciation accrual and cost of removal rates set forth
herein apply specifically to plant in service as of March 31, 2008. Continued
surveillance and periodic revisions are normally required to maintain continued use of
appropriate depreciation rates.
The depreciation rates should be reviewed annually to reflect the changes that
result from plant and reserve account activity. A depreciation reserve deficiency or
surplus will develop if future capital expenditures vary significantly from those
anticipated in this study.
Appendix C-6
The survivor curves, net salvage percents, and amortization periods used in this
study should be the basis for annual recalculations. Complete depreciation studies,
which re-evaluate these parameters, should be performed every three to five years.
Appendix C-7
PART II. METHODS USED IN THE

ESTIMATION OF DEPRECIATION
Appendix C-8
PART II. METHODS USED IN THE

ESTIMATION OF DEPRECIATION
DEPRECIATION
Depreciation, in public utility regulation, is the loss in service value not restored
by current maintenance, incurred in connection with the consumption or prospective
retirement of transportation plant in the course of service from causes which are known
to be in current operation and against which the utility is not protected by insurance.
Among causes to be given consideration are wear and tear, deterioration, action of the
elements, inadequacy, obsolescence, changes in the art, changes in demand, and the
requirements of public authorities.
Depreciation, as used in accounting, is a method of distributing fixed capital
costs, less net salvage, over a period of time by allocating annual amounts to expense.
Each annual amount of such depreciation expense is part of that year's total cost of
providing electric distribution service. Normally, the period of time over which the fixed
capital cost is allocated to the cost of service is equal to the period of time over which
an item renders service, that is, the item's service life. The most prevalent method of
allocation is to distribute an equal amount of cost to each year of service life. This
method is known as the straight-line method of depreciation.
The calculation of annual and accrued depreciation based on the straight line
method requires the estimation of survivor curves and the selection of group
depreciation procedures. These subjects are discussed in the sections that follow.
Appendix C-9
ESTIMATION OF SURVIVOR CURVES
Survivor Curves. The use of an average service life for a property group implies
that the various units in the group have different lives. Thus, the average life may be
obtained by determining the separate lives of each of the units, or by constructing a
survivor curve by plotting the number of units which survive at successive ages. A
discussion of the general concept of survivor curves is presented. Also, the Iowa type
survivor curves are reviewed.
The survivor curve graphically depicts the amount of property existing at each
age throughout the life of an original group. From the survivor curve, the average life of
the group, the remaining life expectancy, the probable life, and the frequency curve can
be calculated. In Figure 1, a typical smooth survivor curve and the derived curves are
illustrated. The average life is obtained by calculating the area under the survivor curve,
from age zero to the maximum age, and dividing this area by the ordinate at age zero.
The remaining life expectancy at any age can be calculated by obtaining the area under
the curve, from the observation age to the maximum age, and dividing this area by the
percent surviving at the observation age. For example, in Figure 1, the remaining life at
age 30 is equal to the crosshatched area under the survivor curve divided by 29.5
percent surviving at age 30. The probable life at any age is developed by adding the
age and remaining life. If the probable life of the property is calculated for each year of
age, the probable life curve shown in the chart can be developed. The frequency curve
presents the number of units retired in each age interval and is derived by obtaining the
differences between the amount of property surviving at the beginning and at the end of
each interval.
Appendix C-10
Iowa Type Curves The range of survivor characteristics usually experienced by
utility and industrial properties is encompassed by a system of generalized survivor
curves known as the Iowa type curves. There are four families in the Iowa system,
labeled in accordance with the location of the modes of the retirements in relationship to
the average life and the relative height of the modes. The left moded curves, presented
in Figure 2, are those in which the greatest frequency of retirement occurs to the left of,
or prior to, average service life. The symmetrical moded curves, presented in Figure 3,
are those in which the greatest frequency of retirement occurs at average service life.
The right moded curves, presented in Figure 4, are those in which the greatest
frequency occurs to the right of, or after, average service life. The origin moded curves,
presented in Figure 5, are those in which the greatest frequency of retirement occurs at
the origin, or immediately after age zero. The letter designation of each family of curves
(L, S, R or O) represents the location of the mode of the associated frequency curve
with respect to the average service life. The numbers represent the relative heights of
the modes of the frequency curves within each family.
Appendix C-11
Appendix C-12
The Iowa curves were developed at the Iowa State College Engineering Experiment
Station through an extensive process of observation and classification of the ages at
which industrial property had been retired. A report of the study which resulted in the
classification of property survivor characteristics into 18 type curves, which constitute
three of the four families, was published in 1935 in the form of the Experiment Station’s
Bulletin 125.1 These type curves have also been presented in subsequent Experiment
Station bulletins and in the text, "Engineering Valuation and Depreciation." 2 In 1957,
Frank V. B. Couch, Jr., an Iowa State College graduate student, submitted a thesis 3
presenting his development of the fourth family consisting of the four O type survivor
curves.
1
Winfrey, Robley. Statistical Analyses of Industrial Property Retirements. Iowa
State College, Engineering Experiment Station, Bulletin 125. 1935.
2
Marston, Anson, Robley Winfrey and Jean C. Hempstead. Engineering
Valuation and Depreciation, 2nd Edition. New York, McGraw-Hill Book Company.
1953.
3
Couch, Frank V. B., Jr. "Classification of Type O Retirement Characteristics of
Industrial Property." Unpublished M.S. thesis (Engineering Valuation). Library, Iowa
State College, Ames, Iowa. 1957.
Appendix C-13
Appendix C-14
Appendix C-15
Appendix C-16
Appendix C-17
Survivor Curve Judgments. In this study the survivor curve estimates were based on
judgment which considered a number of factors. The primary factors were the
approved average service life estimates of peer electric utilities; current policies and
outlook as determined through conversations with operations and management
personnel, and on the experience of Gannett Fleming.
The basis for selection of a peer group of comparable electric utilities considered a
number of specific factors In order to ensure that the resultant average service life
recommendations are reasonable. The factors considered included the following:
Location -Electric generation facilities from the Canadian Northern areas
were specifically considered as a valid comparable;
Nature of the Utility – Multi discipline electric utilities that have both
generation and distribution functions were included;
Operating History – Electric Utilities that have evolved from similar histories
were considered as comparable; and
Familiarity – Studies completed by Gannett Fleming provide for an
understanding of the comparability of operating practices and procedures.
Based on the above considerations, Gannett Fleming reviewed the average
service life recommendations from the following companies for each account , as
applicable:
Northwest Territories Power Corporation (“NWTPC”)
Yukon Electric Company Limited (“YECL”)
Yukon Energy Corporation (“YEC”)
Northland Utilities (Yellowknife) Ltd
Appendix C-18
Northland Utilities (NWT) Ltd
ATCO Electric
Manitoba Hydro
The average service lives from each of the above utilities were considered in light of the
specific Qulliq capitalization and operating policies. Additionally, the comments from
Qulliq operating and management staff were also considered. Table 3 in the Results
section of this report provides a summary of the average service life recommendations
for each of the peer utilities and also provides the recommendation of Gannett Fleming
for this current depreciation study.
CALCULATION OF ANNUAL AND ACCRUED DEPRECIATION
Group Depreciation Procedures. When more than a single item of property is
under consideration, a group procedure for depreciation is appropriate because normally
all of the items within a group do not have identical service lives, but have lives that are
dispersed over a range of time. There are two primary group procedures, namely,
average service life and equal life group.
In the average service life procedure, the rate of annual depreciation is based on
the average life or average service life of the group, and this rate is applied to the
surviving balances of the group's cost. A characteristic of this procedure is that the cost
of plant retired prior to average life is not fully recouped at the time of retirement,
whereas the cost of plant retired subsequent to average life is more than fully recouped.
Over the entire life cycle, the portion of cost not recouped prior to average life is
balanced by the cost recouped subsequent to average life. In this procedure, the
accrued depreciation is based on the average service life of the group and the average
Appendix C-19
remaining life of each vintage within the group derived from the area under the survivor
curve between the attained age of the vintage and the maximum age.
In the equal life group procedure, the property group is subdivided according to
service life. That is, each equal life group includes that portion of the property which
experiences the life of that specific group. The relative size of each equal life group is
determined from the property's life dispersion curve. The calculated depreciation for the
property group is the summation of the calculated depreciation based on the service life
of each equal life group.
It is the view of Gannett Fleming that the ELG procedure provides a superior
match of the consumption of service values of the assets in service to the depreciation
expense. However, the ASL procedure is widely used throughout Northern Canadian
electric utilities and throughout North America. Gannett Fleming has incorporated the
use of the ASL procedure in the calculation of the depreciation accrual rates in this
depreciation study.
CALCULATION OF ANNUAL AND ACCRUED AMORTIZATION
Amortization is the gradual extinguishment of an amount in an account by
distributing such amount over a fixed period, over the life of the asset or liability to which
it applies, or over the period during which it is anticipated the benefit will be realized.
Normally, the distribution of the amount is in equal amounts to each year of the
amortization period.
The calculation of annual and accrued amortization requires the selection of an
amortization period. The amortization periods used in this report were based on
judgment which incorporated a consideration of the period during which the assets will
Appendix C-20
render most of their service, the amortization period and service lives used by other
utilities, and the service life estimates previously used for the asset under depreciation
accounting.
Amortization accounting is proposed for certain General Plant accounts that
represent numerous units of property, but a very small portion of depreciable gas plant
in service. The accounts and their amortization periods for the general plant accounts
are as follows:
Amortization
Period,
Account Years
390 Office Furniture & Equipment 5

394 Tools, Shop and Garage Equipment 15
395 Laboratory Equipment 20
398 Miscellaneous Equipment 15
For the purpose of calculating annual amortization amounts as of March 31,
2008, the book depreciation reserve for each plant account or subaccount is assigned
or allocated to vintages. The book reserve assigned to vintages with an age greater
than the amortization period is equal to the vintage’s original cost. The remaining book
reserve is allocated among vintages with an age less than the amortization period in
proportion to the calculated accrued amortization. The calculated accrued amortization
is equal to the original cost multiplied by the ratio of the vintage’s age to its amortization
period. The annual amortization amount is determined by dividing the future
amortizations (original cost less allocated book reserve) by the remaining period of
amortization for the vintage.
Appendix C-21
MONITORING OF BOOK ACCUMULATED DEPRECIATION
The calculated accrued depreciation or amortization represents that portion of
the depreciable cost which will not be allocated to expense through future depreciation
accruals, if current forecasts of service life characteristics and net salvage materialize
and are used as a basis for depreciation accounting. Thus, the calculated accrued
depreciation provides a measure of the book accumulated depreciation. The use of this
measure is recommended in the amortization of book accumulated depreciation
variances to insure complete recovery of capital over the life of the property.
In accordance with commonly accepted regulatory policy, the recommended
amortization of the variance between the book accumulated depreciation and the
calculated accrued depreciation is based on an amortization period equal to the
composite remaining life for each property group where the variance exceeds five
percent of the calculated accrued depreciation. In order to reduce large fluctuations of
the true-up provision from report to report, a minimal 5 year remaining life period has
been incorporated into the true-up calculations, where the average service life estimate
is at least 5 years.
The composite remaining life for use in the reducing accumulated depreciation
variances is derived by composting the individual equal life group remaining lives in
accordance with the following equation:
Book Cost
( x Remaining Life)
Composite Remaining Life = Life .
Book Cost
Life
Appendix C-22
The book costs and lives of the several equal life groups, which are summed in the
foregoing equation, are defined by the estimated future survivor curve.
Inasmuch as book cost divided by life equals the whole life annual accrual, the
foregoing equation reduces to the following form:
Whole Life Future Accruals

Composite Remaining Life =
Whole Life Annual Accruals
or
Book Cost - Calc. Reserve

Composite Remaining Life = .
Whole Life Annual Accrual
Appendix C-23
PART III. RESULTS OF STUDY
Appendix C-24
PART III. RESULTS OF STUDY
QUALIFICATION OF RESULTS
The calculated annual and accrued depreciation related to investment (and
separately for cost of removal) and the annual provisions for true-up (amortization of the
accumulated depreciation variance) are the principal results of the study. Continued
surveillance and periodic revisions are normally required to maintain continued use of
appropriate annual depreciation accrual rates. An assumption that accrual rates can
remain unchanged over a long period of time implies a disregard for the inherent
variability in service lives and for the change of the composition of property in service.
The annual accrual rates and the accrued depreciation were calculated in accordance
with the straight line method, using the average service life procedure based on
estimates which reflect considerations of current historical evidence and expected future
conditions.
DESCRIPTION OF DETAILED TABULATIONS
The service life estimates were based on judgment that analysis of the average
service lives of a peer group of electric utilities, discussions with management and on
the judgment of Gannett Fleming.
The tables of the calculated annual depreciation applicable to plant as of March
31, 2008 are presented in account sequence starting at page III-3. The tables indicate
the estimated average survivor curves used in the calculations. The tables set forth, for
each installation year, the original cost, calculated accrued depreciation, and the
calculated annual accrual.
Appendix C-25
TABLE 1. ESTIMATED SURVIVOR CURVES, NET SALVAGE PERCENTS, ORIGINAL COST AND ANNUAL ACCRUALS
FOR THE TWELVE MONTHS ENDED MARCH 31, 2008
Estimated Estimated Surviving Annual

Survivor Net Original Cost Calculated Annual Accrual Provision Total Depreciation
Description Curve Salvage at 03/31/08 Amount Rate (%) For True-Up Expense Rate (%)
(1) (2) (3) (4) (5) (6)=(5)/(4) (7) (8)=(5)+(7) (9)=(8)/(4)
Wind Turbines
121 Wind Turbines 40-R3 0 14,442,330.34 361,058 2.50 (47,737) 313,321 2.17
131 Residual Heating systems 25-R2 0 1,063,923.38 42,557 4.00 (36,979) 5,578 0.52
Other Production (Diesel)
340 Land and Land Rights Non-Depreciable 422,704.84 -
341 Structures and Improvements 35-R2.5 0 35,753,314.64 1,022,545 2.86 (38,075) 984,470 2.75
342 Fuel Holders, Producers and Accessories 20-R2 0 14,265,106.45 711,755 4.99 (170,678) 541,077 3.79
343 Prime Movers 25-R1.5 0 47,742,293.05 1,908,492 4.00 (424,405) 1,484,087 3.11
344 Generators 27-R2.5 0 21,026,988.57 777,999 3.70 67,622 845,621 4.02
345 Accessory Electrical Equipment 25-R2 0 19,306,604.89 772,264 4.00 - 772,264 4.00
346 Miscellaneous Power Plant Equipment 20-R3 0 9,290,987.93 464,549 5.00 39,037 503,586 5.42
Distribution Plant
360 Land and Land Rights Non-Depreciable 21,804.52 0.00 - - 0.00
361 Structures and Improvements 40-R2 0 391,328.46 9,783 2.50 (494) 9,289 2.37
362 Station Equipment 35-S3 0 401,356.22 11,479 2.86 (11,479) (0) 0.00
363 Storage Battery Equipment 15-R3 0 9,972.62 665 6.67 349 1,014 10.17
364 Poles, Towers, and Fixtures 38-R3 0 10,517,212.34 276,603 2.63 (115,803) 160,800 1.53
365 Overhead Conductor and Devices 40-R3 0 8,857,935.09 221,448 2.50 (32,185) 189,263 2.14
366 Underground Conduit 25-R3 0 36,287.44 1,452 4.00 (143) 1,309 3.61
367 Underground conductor and Devices 25-R3 0 100,316.77 4,013 4.00 (1,394) 2,619 2.61
368 Line Transformers 35-R2 0 2,890,449.48 82,667 2.86 (17,005) 65,662 2.27
369 Services 40-R3 0 970,470.13 24,262 2.50 (10,592) 13,670 1.41
370 Meters 25-S2 0 888,851.95 35,554 4.00 (6,739) 28,815 3.24
371 Meter Installations 25-S2 0 28,113.22 1,125 4.00 69 1,194 4.25
373 Street Lighting and Signal Systems 35-S1.5 0 217,160.71 6,211 2.86 (864) 5,347 2.46
General Plant
389 Land and Land Rights Non-Depreciable 7,107.50 -
390 Structures and Improvements 45-R3 0 6,081,003.18 134,998 2.22 (28,622) 106,376 1.75
(Largely company residences)
391 Office Furniture and Equipment 5-SQ 0 2,053,483.76 133,793 6.52 198,149 331,942 16.16
(Both furniture & computer equipment)
392 Transportation Equipment 12-L1.5 0 4,390,689.16 365,744 8.33 (50,470) 315,274 7.18
393 Stores Equipment 25-R3 0 39,648.62 1,586 4.00 (1,586) (0) 0.00
394 Tools, Shop, and Garage Equipment 15-SQ 0 154,292.77 8,177 5.30 - 8,177 5.30
395 Laboratory Equipment 20-SQ 0 27,831.62 - 0.00 - - 0.00
396 Power Operated Equipment 20-L1 0 143,146.73 7,157 5.00 (5,379) 1,778 1.24
397 Communication Equipment 25-R3 0 1,899,858.35 75,994 4.00 (1,610) 74,384 3.92
398 Miscellaneous Equipment 15-SQ 0 869,308.03 57,775 6.65 (43,153) 14,622 1.68
399 Other (mostly LHI) 0.00 0.00 - - 0.00
TOTAL PLANT 204,311,882.76 7,521,705.26 114.45 (740,166.00) 6,781,539.26
Appendix C-26
TABLE 2. CALCULATED ACCRUED DEPRECIATION, BOOK ACCUMULATED DEPRECIATION AND DETERMINATION OF ANNUAL PROVISION FOR TRUE-UP
FOR THE TWELVE MONTHS ENDED MARCH 31, 2008
Surviving Calculated Book Accumulated Depreciation Probable Annual

Original Cost Accrued Accumulated Variance Remaining Provision
Description at 03/31/2008 Depreciation Depreciation Amount Percent Life(*) for True-Up (**)
(1) (2) (3) (4) (5) = (3)-(4) (6) = (5)/(3) (7) (8)=(5)/(7)
Wind Turbines
121 Wind Turbines 14,442,330.34 1,226,867 2,993,136 (1,766,269) -143.97 37.0 (47,737)
131 Residual Heating systems 1,063,923.38 382,807 981,867 (599,060) -156.49 16.2 (36,979)

340 Land and Land Rights 422,704.84 N/D - 0.00 - -
341 Structures and Improvements 35,753,314.64 12,984,898 13,856,825 (871,927) -6.71 22.9 (38,075)
342 Fuel Holders, Producers and Accessories 14,265,106.45 8,383,916 10,107,761 (1,723,845) -20.56 10.1 (170,678)
343 Prime Movers 47,742,293.05 21,489,628 28,152,781 (6,663,153) -31.01 15.7 (424,405)
344 Generators 21,026,988.57 6,123,763 4,852,477 1,271,286 20.76 18.8 67,622
345 Accessory Electrical Equipment 19,306,604.89 8,700,249 9,115,455 (415,206) -4.77 14.2 -
346 Miscellaneous Power Plant Equipment 9,290,987.93 3,170,694 2,682,726 487,968 15.39 12.5 39,037
Distribution Plant
361 Structures and Improvements 391,328.46 127,066 140,466 (13,400) -10.55 27.1 (494)
362 Station Equipment 401,356.22 264,030 325,890 (61,860) -23.43 5.0 (12,372)
363 Storage Battery Equipment 9,972.62 7,799 6,053 1,746 22.39 5.0 349
364 Poles, Towers, and Fixtures 10,517,212.34 5,153,641 8,037,148 (2,883,507) -55.95 24.9 (115,803)
365 Overhead Conductor and Devices 8,857,935.09 2,487,399 3,555,934 (1,068,535) -42.96 33.2 (32,185)
366 Underground Conduit 36,287.44 14,098 16,296 (2,198) -15.59 15.4 (143)
367 Underground Conductor and Devices 100,316.77 57,243 73,413 (16,170) -28.25 11.6 (1,394)
368 Line Transformers 2,890,449.48 1,007,284 1,439,213 (431,929) -42.88 25.4 (17,005)
369 Services 970,470.13 574,643 796,019 (221,376) -38.52 20.9 (10,592)
370 Meters 888,851.95 575,014 651,843 (76,829) -13.36 11.4 (6,739)
371 Meter Installations 28,113.22 12,780 11,835 945 7.39 13.6 69
373 Street Lighting and Signal Systems 217,160.71 94,023 112,079 (18,056) -19.20 20.9 (864)
General Plant
390 Structures and Improvements (Largely company residences) 6,081,003.18 2,885,407 3,620,998 (735,591) -25.49 25.7 (28,622)
391 Office Furniture and Equipment (both furniture and computer Equipment) 2,053,483.76 1,965,520 974,774 990,746 50.41 5.0 198,149
392 Transportation Equipment 4,390,689.16 2,010,245 2,373,629 (363,384) -18.08 7.2 (50,470)
393 Stores Equipment 39,648.62 31,166 39,649 (8,483) -27.22 5.0 (1,697)
394 Tools, Shop, and Garage Equipment 154,292.77 80,161 77,480 2,681 3.34 8.9 -
395 Laboratory Equipment 27,831.62 27,832 27,757 75 0.27 5.0 -
396 Power Operated Equipment 143,146.73 79,882 139,054 (59,172) -74.07 11.0 (5,379)
397 Communication Equipment 1,899,858.35 473,731 503,997 (30,266) -6.39 18.8 (1,610)
398 Miscellaneous Equipment 869,308.03 395,791 766,909 (371,118) -93.77 8.6 (43,153)
399 Other (mostly LHI) 0.00 - 0.00 5.0 -
TOTAL DEPRECIABLE PLANT 204,311,882.76 80,787,577.00 96,433,464.00 (15,645,887.00) (741,170.00)
(*) A 5 year minimum period was used in the true up calculations

(**) True up is only calculated when the amount of accumulated depreciation variance is greater than +/- 5%
Appendix C-27

TABLE 3 - AVERAGE SERVICE LIFE COMPARISON
Orginal Yukon Yukon Northland Northland ATCO Manitoba

Account Description Cost NWTPC Electric Energy Corp (Yellowknife) (NWT) Electric Hydro RECOMMENDATION
Wind Turbines
121 Wind Turbines 14,442,330.34 40‐R3 40‐R3
131 Residual Heating systems 1,063,923.38 35‐R2.5 25‐R2

340 Land and Land Rights 422,704.84 ND ND
341 Structures and Improvements 35,753,314.64 30‐L2.5 40‐R2.5 40‐R2.5 50‐S1.5 18‐R2 35‐R2.5
342 Fuel Holders, Producers and Accessories 14,265,106.45 20‐S2 35‐R4 25‐R2 20‐R2.5 20‐R2
343 Prime Movers 47,742,293.05 18‐R2.5 27‐R2.5 30‐R2 25‐R1.5 25‐R1.5
344 Generators 21,026,988.57 30‐R3 27‐R2.5 30‐R2 25‐R1.5 27‐R2.5
345 Accessory Electrical Equipment 19,306,604.89 20‐S2.5 35‐R3 45‐R3 25‐R1.5 14‐R2.5 25‐R2
346 Miscellaneous Power Plant Equipment 9,290,987.93 15‐R3 35‐R3 30‐R2 25‐R1.5 20‐R3
Distribution Plant
360 Land and Land Rights 21,804.52 ND 75‐R3 75‐R3 75‐R3 75‐R3 75‐SQ ND
361 Structures and Improvements 391,328.46 40‐R1.5 45‐R2 40‐R2
362 Station Equipment 401,356.22 35‐S3 35‐R3 40‐R2.5 31‐R3 45‐R2 35‐S3
363 Storage Battery Equipment 9,972.62 15‐R3
364 Poles, Towers, and Fixtures 10,517,212.34 35‐R3 40‐R3 35‐R2 45‐R4 40‐R3 40‐R2.5 31‐R2 38‐R3
365 Overhead Conductor and Devices 8,857,935.09 40‐R3 40‐R3 40‐R2 40‐R4 45‐R3 50‐R2.5 31‐R2 40‐R3
366 Underground Conduit 36,287.44 25‐R3 50‐R4 40‐R2.5 40‐R3 54‐R3 55‐R4 45‐R3 25‐R3
367 Underground Conductor and Devices 100,316.77 25‐R3 40‐‐R4 40‐R2.5 50‐R3 54‐R3 55‐R4 45‐R3 25‐R3
368 Line Transformers 2,890,449.48 45‐S2.5 35‐R3 40‐R2.5 35‐S2.5 30‐R2.5 37‐R2 20‐R1.5 35‐R2
369 Services 970,470.13 45‐R3 40‐R3 40‐R2 40‐R3 40‐S4 50‐R3 28‐R2 40‐R3
370 Meters 888,851.95 30‐R2.5 25‐S2 30‐R2 20‐L0.5 20‐L0.5 22‐R1.5 29‐R3 25‐S2
371 Meter Installations 28,113.22 30‐R2.5 25‐S2 30‐R2 20‐L0.5 20‐L0.5 22‐R1.5 2‐‐R3 25‐S2
373 Street Lighting and Signal Systems 217,160.71 40‐S1.5 25‐R3 40‐R2 35‐S2.5 35‐S2 43‐R3 36‐R1.5 35‐S1.5
General Plant
389 Land and Land Rights 7,107.50 ND 50‐R2 ND
390 Structures and Improvements 6,081,003.18 100‐R2 (Int) 40‐R3 30‐R3 38‐S2 45‐R3 13‐L0 60‐R2.5 45‐R3
(Largely company residences)
391 Office Furniture and Equipment 2,053,483.76 5 &15‐SQ 5 &15‐SQ 5 & 20‐SQ 5 &15‐S4 15‐S4 5‐S0.5 15‐S4 5 &15‐SQ 5 &15‐SQ
(Both furniture & computer equipment)
392 Transportation Equipment 4,390,689.16 17‐L1.5 10‐R0.5 7‐L2 7‐L2 11‐L2 8‐L1.5 9‐R3 12‐L1.5
393 Stores Equipment 39,648.62 25‐R3 25‐R3
394 Tools, Shop, and Garage Equipment 154,292.77 15‐SQ 15‐SQ 20‐SQ 10‐S3 10‐S3 10‐S3 15‐SQ 15‐SQ
395 Laboratory Equipment 27,831.62 20‐SQ 20‐SQ
396 Power Operated Equipment 143,146.73 25‐S1.5 10‐R0.5 25‐R1.5 26‐R3 11‐L2 23‐S1 22‐L0.5 20‐L1
397 Communication Equipment 1,899,858.35 30‐R3 10‐SQ 20‐L4 20‐L3 20‐S2.5 17‐R2 25‐R3
398 Miscellaneous Equipment 869,308.03 15‐SQ 25‐R3 15‐SQ
399 Other (mostly LHI) 286,962.54 20‐SQ
204,598,845.30
Appendix C-28
DETAILED DEPRECIATION CALCULATIONS
Appendix C-29

RELATED TO ORIGINAL COST AS OF MARCH 31, 2008
ACCOUNT 121.00 -PRODUCTION EQUIPMENT - WIND TURBINES
CALCULATED ANNUAL AND ACCRUED DEPRECIATION
ORIGINAL AVG. --ANNUAL ACCRUAL-- --ACCRUED DEPREC.--

YEAR COST LIFE RATE AMOUNT EXP. FACTOR AMOUNT
(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 40-R3
1997 581,179.74 40.00 2.50 14,529.49 28.06 0.2985 173,482
1998 80,229.49 40.00 2.50 2,005.74 28.98 0.2755 22,103
2000 626,200.45 40.00 2.50 15,655.01 30.83 0.2293 143,556
2001 594,270.86 40.00 2.50 14,856.77 31.77 0.2058 122,271
2007 12,427,511.95 40.00 2.50 310,687.80 37.55 0.0613 761,185
2008 132,937.85 40.00 2.50 3,323.45 38.53 0.0368 4,885
14,442,330.34 361,058.26 1,227,482
COMPOSITE ANNUAL ACCRUAL RATE, PERCENT.. 2.50
Appendix C-30

ACCOUNT 131.00 -PRODUCTION EQUIPMENT - RESIDUAL HEATING SYSTEMS

(1) (2) (3) (4) (5) (6) (7) (8)
1998 209,801.24 25.00 4.00 8,392.05 15.36 0.3856 80,899
1999 836,066.72 25.00 4.00 33,442.67 16.13 0.3548 296,636
2001 18,055.42 25.00 4.00 722.22 17.70 0.2920 5,272
1,063,923.38 42,556.94 382,807
Appendix C-31

ACCOUNT 341.00 - DIESEL PRODUCTION -STRUCTURE AND IMPROVEMENTS

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 35-R2.5
1964 45,000.00 35.00 2.86 1,287.00 4.77 0.8637 38,867
1966 1,425,681.94 35.00 2.86 40,774.50 5.30 0.8486 1,209,791
1968 371,023.61 35.00 2.86 10,611.28 5.89 0.8317 308,584
1971 243,134.13 35.00 2.86 6,953.64 6.91 0.8026 195,132
1972 400,316.04 35.00 2.86 11,449.04 7.29 0.7917 316,934
1973 75,310.31 35.00 2.86 2,153.87 7.70 0.7800 58,742
1974 376,157.27 35.00 2.86 10,758.10 8.14 0.7674 288,674
1975 569,900.64 35.00 2.86 16,299.16 8.60 0.7543 429,870
1976 370,743.39 35.00 2.86 10,603.26 9.08 0.7406 274,561
1977 97,000.00 35.00 2.86 2,774.20 9.59 0.7260 70,422
1978 7,086.90 35.00 2.86 202.69 10.12 0.7109 5,038
1979 261,888.17 35.00 2.86 7,490.00 10.68 0.6949 181,976
1980 484,996.91 35.00 2.86 13,870.91 11.26 0.6783 328,969
1982 461,682.71 35.00 2.86 13,204.13 12.48 0.6434 297,061
1983 203,400.52 35.00 2.86 5,817.25 13.12 0.6251 127,154
1984 131,822.62 35.00 2.86 3,770.13 13.77 0.6066 79,960
1985 212,387.18 35.00 2.86 6,074.27 14.45 0.5871 124,701
1986 31,360.18 35.00 2.86 896.90 15.14 0.5674 17,795
1987 1,127,144.07 35.00 2.86 32,236.32 15.85 0.5471 616,706
1988 272,322.36 35.00 2.86 7,788.42 16.58 0.5263 143,321
1989 304,305.56 35.00 2.86 8,703.14 17.32 0.5051 153,717
1990 511,904.05 35.00 2.86 14,640.46 18.07 0.4837 247,613
1991 4,497,460.27 35.00 2.86 128,627.36 18.84 0.4617 2,076,522
1992 2,575,305.00 35.00 2.86 73,653.72 19.62 0.4394 1,131,666
1993 345,807.68 35.00 2.86 9,890.10 20.41 0.4169 144,153
1994 529,360.75 35.00 2.86 15,139.72 21.22 0.3937 208,415
1995 1,469,203.51 35.00 2.86 42,019.22 22.04 0.3703 544,031
1996 1,145,906.59 35.00 2.86 32,772.93 22.87 0.3466 397,137
1997 238,688.06 35.00 2.86 6,826.48 23.71 0.3226 76,994
1998 717,558.83 35.00 2.86 20,522.18 24.56 0.2983 214,041
1999 836,570.32 35.00 2.86 23,925.91 25.43 0.2734 228,743
2000 2,228,239.33 35.00 2.86 63,727.64 26.30 0.2486 553,873
2001 3,876,989.39 35.00 2.86 110,881.90 27.18 0.2234 866,236
2002 1,543,632.10 35.00 2.86 44,147.88 28.08 0.1977 305,192
2003 338,210.16 35.00 2.86 9,672.81 28.98 0.1720 58,172
2006 6,241,715.25 35.00 2.86 178,513.06 31.72 0.0937 584,911
2007 1,184,098.84 35.00 2.86 33,865.23 32.65 0.0671 79,500
35,753,314.64 1,022,544.81 12,985,174
Appendix C-32

ACCOUNT 342.00 - DIESEL PRODUCTION -FUEL HOLDERS, PRODUCERS AND ACCESSORIES

(1) (2) (3) (4) (5) (6) (7) (8)
1966 30,000.00 20.00 5.00 .00 0.00 1.0000 30,000
1973 30,000.00 20.00 5.00 1,500.00 0.16 0.9920 29,760
1974 70,000.00 20.00 5.00 3,500.00 0.42 0.9790 68,530
1975 148,540.69 20.00 5.00 7,427.03 0.69 0.9655 143,416
1976 345,953.12 20.00 5.00 17,297.66 0.96 0.9520 329,347
1977 286,452.64 20.00 5.00 14,322.63 1.25 0.9375 268,549
1978 20,648.82 20.00 5.00 1,032.44 1.53 0.9235 19,069
1979 24,000.00 20.00 5.00 1,200.00 1.82 0.9090 21,816
1980 300,647.29 20.00 5.00 15,032.36 2.11 0.8945 268,929
1984 120,768.61 20.00 5.00 6,038.43 3.34 0.8330 100,600
1986 86,241.63 20.00 5.00 4,312.08 4.05 0.7975 68,778
1987 66,298.43 20.00 5.00 3,314.92 4.44 0.7780 51,580
1988 431,349.59 20.00 5.00 21,567.48 4.85 0.7575 326,747
1989 289,012.80 20.00 5.00 14,450.64 5.30 0.7350 212,424
1990 1,617,716.68 20.00 5.00 80,885.83 5.77 0.7115 1,151,005
1991 2,760,164.99 20.00 5.00 138,008.25 6.28 0.6860 1,893,473
1992 486,120.92 20.00 5.00 24,306.05 6.81 0.6595 320,597
1994 618,281.76 20.00 5.00 30,914.09 7.97 0.6015 371,896
1995 3,111,453.70 20.00 5.00 155,572.68 8.59 0.5705 1,775,084
1996 626,806.28 20.00 5.00 31,340.31 9.24 0.5380 337,222
1997 5,641.58 20.00 5.00 282.08 9.91 0.5045 2,846
1998 118,455.10 20.00 5.00 5,922.76 10.60 0.4700 55,674
1999 323,857.83 20.00 5.00 16,192.89 11.32 0.4340 140,554
2000 57,540.30 20.00 5.00 2,877.02 12.06 0.3970 22,843
2001 129,467.86 20.00 5.00 6,473.39 12.82 0.3590 46,479
2003 3,936.29 20.00 5.00 196.81 14.40 0.2800 1,102
2004 1,021,329.83 20.00 5.00 51,066.49 15.22 0.2390 244,098
2007 111,907.75 20.00 5.00 5,595.39 17.77 0.1115 12,478
2008 1,022,511.96 20.00 5.00 51,125.60 18.65 0.0675 69,020
14,265,106.45 711,755.31 8,383,916
Appendix C-33

ACCOUNT 343.00 - DIESEL PRODUCTION - PRIME MOVERS

(1) (2) (3) (4) (5) (6) (7) (8)
1957 30,000.00 25.00 4.00 .00 0.00 1.0000 30,000
1972 776,273.30 25.00 4.00 31,050.93 3.55 0.8580 666,042
1973 739,966.04 25.00 4.00 29,598.64 3.83 0.8468 626,603
1974 62,560.07 25.00 4.00 2,502.40 4.13 0.8348 52,225
1975 792,950.74 25.00 4.00 31,718.03 4.43 0.8228 652,440
1976 824,512.10 25.00 4.00 32,980.48 4.74 0.8104 668,185
1977 266,473.63 25.00 4.00 10,658.95 5.07 0.7972 212,433
1978 266,423.11 25.00 4.00 10,656.92 5.41 0.7836 208,769
1979 524,471.01 25.00 4.00 20,978.84 5.76 0.7696 403,633
1980 833,347.52 25.00 4.00 33,333.90 6.13 0.7548 629,011
1981 269,490.10 25.00 4.00 10,779.60 6.52 0.7392 199,207
1982 385,378.28 25.00 4.00 15,415.13 6.93 0.7228 278,551
1983 504,523.25 25.00 4.00 20,180.93 7.36 0.7056 355,992
1984 548,107.84 25.00 4.00 21,924.31 7.80 0.6880 377,098
1986 1,131,785.72 25.00 4.00 45,271.43 8.76 0.6496 735,208
1987 186,240.19 25.00 4.00 7,449.61 9.28 0.6288 117,108
1988 901,864.04 25.00 4.00 36,074.56 9.81 0.6076 547,973
1989 1,754,613.37 25.00 4.00 70,184.53 10.36 0.5856 1,027,502
1991 836,539.13 25.00 4.00 33,461.57 11.52 0.5392 451,062
1992 8,138,990.29 25.00 4.00 325,559.61 12.13 0.5148 4,189,952
1993 207,429.97 25.00 4.00 8,297.20 12.76 0.4896 101,558
1994 5,165,094.80 25.00 4.00 206,603.79 13.41 0.4636 2,394,538
1995 3,028,121.44 25.00 4.00 121,124.86 14.07 0.4372 1,323,895
1996 3,320,406.01 25.00 4.00 132,816.24 14.74 0.4104 1,362,695
1997 692,967.88 25.00 4.00 27,718.72 15.43 0.3828 265,268
1998 2,294,777.53 25.00 4.00 91,791.10 16.14 0.3544 813,269
1999 138,315.72 25.00 4.00 5,532.63 16.85 0.3260 45,091
2000 1,828,305.47 25.00 4.00 73,132.22 17.58 0.2968 542,641
2001 6,614,597.08 25.00 4.00 264,583.88 18.32 0.2672 1,767,420
2002 631,831.61 25.00 4.00 25,273.26 19.07 0.2372 149,870
2003 33,250.65 25.00 4.00 1,330.03 19.83 0.2068 6,876
2007 2,815,275.55 25.00 4.00 112,611.02 22.97 0.0812 228,600
2008 1,197,409.61 25.00 4.00 47,896.38 23.77 0.0492 58,913
47,742,293.05 1,908,491.70 21,489,628
Appendix C-34

ACCOUNT 344.00 -DIESEL PRODUCTION - GENERATORS

(1) (2) (3) (4) (5) (6) (7) (8)
1976 8,860.75 27.00 3.70 327.85 4.10 0.8482 7,515
1985 402,683.61 27.00 3.70 14,899.29 7.70 0.7148 287,842
1986 34,610.30 27.00 3.70 1,280.58 8.25 0.6944 24,035
1989 397,621.09 27.00 3.70 14,711.98 10.08 0.6267 249,177
1990 658,956.99 27.00 3.70 24,381.41 10.74 0.6022 396,837
1992 755,440.37 27.00 3.70 27,951.29 12.13 0.5507 416,051
1993 53,983.00 27.00 3.70 1,997.37 12.85 0.5241 28,291
1994 1,021,198.89 27.00 3.70 37,784.36 13.59 0.4967 507,199
1995 889,270.43 27.00 3.70 32,903.01 14.36 0.4682 416,312
1996 1,376,159.39 27.00 3.70 50,917.90 15.13 0.4396 605,001
1997 400,746.11 27.00 3.70 14,827.61 15.93 0.4100 164,306
1998 5,966.83 27.00 3.70 220.77 16.74 0.3800 2,267
1999 1,010,797.19 27.00 3.70 37,399.50 17.57 0.3493 353,031
2000 609,172.72 27.00 3.70 22,539.39 18.41 0.3182 193,808
2001 820,100.04 27.00 3.70 30,343.70 19.27 0.2863 234,795
2002 1,488,996.23 27.00 3.70 55,092.86 20.14 0.2541 378,309
2003 4,482,886.89 27.00 3.70 165,866.81 21.02 0.2215 992,870
2004 471,760.45 27.00 3.70 17,455.14 21.92 0.1882 88,762
2005 1,798,373.58 27.00 3.70 66,539.82 22.82 0.1548 278,406
2006 3,567,230.77 27.00 3.70 131,987.54 23.73 0.1211 432,027
2007 772,172.94 27.00 3.70 28,570.40 24.66 0.0867 66,924
21,026,988.57 777,998.58 6,123,765
Appendix C-35

ACCOUNT 345.00 - DIESEL PRODUCTION - ACCESSORY ELECTRICAL EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1966 96,300.87 25.00 4.00 3,852.03 0.76 0.9696 93,373
1968 6,405.77 25.00 4.00 256.23 1.31 0.9476 6,070
1971 105,480.32 25.00 4.00 4,219.21 2.17 0.9132 96,325
1972 134,273.30 25.00 4.00 5,370.93 2.46 0.9016 121,061
1973 111,540.07 25.00 4.00 4,461.60 2.75 0.8900 99,271
1974 104,798.18 25.00 4.00 4,191.93 3.05 0.8780 92,013
1975 324,854.73 25.00 4.00 12,994.19 3.35 0.8660 281,324
1976 179,202.88 25.00 4.00 7,168.12 3.65 0.8540 153,039
1977 749,663.04 25.00 4.00 29,986.52 3.97 0.8412 630,617
1978 127,938.92 25.00 4.00 5,117.56 4.30 0.8280 105,933
1979 195,460.75 25.00 4.00 7,818.43 4.65 0.8140 159,105
1980 57,148.47 25.00 4.00 2,285.94 5.01 0.7996 45,696
1981 120,142.06 25.00 4.00 4,805.68 5.39 0.7844 94,239
1982 320,888.28 25.00 4.00 12,835.53 5.80 0.7680 246,442
1983 47,379.53 25.00 4.00 1,895.18 6.23 0.7508 35,573
1984 24,608.93 25.00 4.00 984.36 6.68 0.7328 18,033
1986 58,673.33 25.00 4.00 2,346.93 7.66 0.6936 40,696
1987 66,797.03 25.00 4.00 2,671.88 8.18 0.6728 44,941
1988 266,170.98 25.00 4.00 10,646.84 8.73 0.6508 173,224
1989 96,014.45 25.00 4.00 3,840.58 9.30 0.6280 60,297
1990 812,007.73 25.00 4.00 32,480.31 9.89 0.6044 490,777
1992 1,746,835.74 25.00 4.00 69,873.43 11.14 0.5544 968,446
1993 629,417.66 25.00 4.00 25,176.71 11.80 0.5280 332,333
1994 2,371,952.37 25.00 4.00 94,878.09 12.47 0.5012 1,188,823
1995 1,453,496.73 25.00 4.00 58,139.87 13.17 0.4732 687,795
1996 791,365.97 25.00 4.00 31,654.64 13.88 0.4448 352,000
1997 777,553.84 25.00 4.00 31,102.15 14.61 0.4156 323,151
1998 198,926.95 25.00 4.00 7,957.08 15.36 0.3856 76,706
1999 1,137,739.85 25.00 4.00 45,509.59 16.13 0.3548 403,670
2000 1,004,212.31 25.00 4.00 40,168.49 16.91 0.3236 324,963
2001 1,957,634.62 25.00 4.00 78,305.38 17.70 0.2920 571,629
2002 204,176.01 25.00 4.00 8,167.04 18.51 0.2596 53,004
2003 15,811.70- 25.00 4.00 632.47- 19.34 0.2264 3,580-
2006 1,778,025.85 25.00 4.00 71,121.03 21.89 0.1244 221,186
2007 1,228,800.65 25.00 4.00 49,152.03 22.76 0.0896 110,101
2008 36,528.42 25.00 4.00 1,461.14 23.65 0.0540 1,973
19,306,604.89 772,264.18 8,700,249
Appendix C-36

ACCOUNT 346.00 - DIESEL PRODUCTION - MISCELLANEOUS POWER PLANT EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1976 4,113.50 20.00 5.00 205.68 0.11 0.9945 4,091
1984 281,066.17 20.00 5.00 14,053.31 2.08 0.8960 251,835
1986 127,716.99 20.00 5.00 6,385.85 2.67 0.8665 110,667
1988 63,826.37 20.00 5.00 3,191.32 3.38 0.8310 53,040
1989 135,972.79 20.00 5.00 6,798.64 3.81 0.8095 110,070
1992 10,111.36 20.00 5.00 505.57 5.36 0.7320 7,402
1995 138,582.49 20.00 5.00 6,929.12 7.30 0.6350 88,000
1996 117,643.22 20.00 5.00 5,882.16 8.02 0.5990 70,468
1997 77,228.27 20.00 5.00 3,861.41 8.76 0.5620 43,402
1998 249,213.96 20.00 5.00 12,460.70 9.54 0.5230 130,339
1999 7,003.68 20.00 5.00 350.18 10.35 0.4825 3,379
2000 11,175.24 20.00 5.00 558.76 11.18 0.4410 4,928
2001 71,520.35 20.00 5.00 3,576.02 12.03 0.3985 28,501
2002 2,931,411.86 20.00 5.00 146,570.59 12.91 0.3545 1,039,186
2003 2,338,288.88 20.00 5.00 116,914.44 13.80 0.3100 724,870
2004 417,680.41 20.00 5.00 20,884.02 14.72 0.2640 110,268
2006 2,279,037.07 20.00 5.00 113,951.85 16.60 0.1700 387,436
2007 13,426.77 20.00 5.00 671.34 17.56 0.1220 1,638
2008 15,968.55 20.00 5.00 798.43 18.53 0.0735 1,174
9,290,987.93 464,549.39 3,170,694
Appendix C-37

ACCOUNT 361.00 - DISTRIBUTION PLANT - STRUCTURES AND IMPROVEMENTS

(1) (2) (3) (4) (5) (6) (7) (8)
1991 183,922.68 40.00 2.50 4,598.07 24.50 0.3875 71,270
1994 4,849.95 40.00 2.50 121.25 26.82 0.3295 1,598
1995 57,126.85 40.00 2.50 1,428.17 27.61 0.3098 17,695
1996 48,111.53 40.00 2.50 1,202.79 28.41 0.2898 13,940
1997 36,306.89 40.00 2.50 907.67 29.21 0.2698 9,794
1999 29,201.29 40.00 2.50 730.03 30.86 0.2285 6,672
2000 21,863.14 40.00 2.50 546.58 31.69 0.2078 4,542
2001 1,073.36 40.00 2.50 26.83 32.54 0.1865 200
2002 7,500.00 40.00 2.50 187.50 33.39 0.1653 1,239
2006 1,372.77 40.00 2.50 34.32 36.87 0.0783 107
391,328.46 9,783.21 127,057
Appendix C-38

ACCOUNT 362.00 - DISTRIBUTION PLANT -STATION EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 35-S3
1975 195,392.87 35.00 2.86 5,588.24 7.11 0.7969 155,701
1976 25,000.00 35.00 2.86 715.00 7.51 0.7854 19,636
1983 93,911.81 35.00 2.86 2,685.88 11.07 0.6837 64,208
1985 20,001.65 35.00 2.86 572.05 12.35 0.6471 12,944
1996 1,905.08 35.00 2.86 54.49 21.58 0.3834 730
1997 3,569.93 35.00 2.86 102.10 22.55 0.3557 1,270
1998 8,809.90 35.00 2.86 251.96 23.53 0.3277 2,887
1999 4,547.60 35.00 2.86 130.06 24.52 0.2994 1,362
2000 5,146.53 35.00 2.86 147.19 25.51 0.2711 1,395
2001 3,296.74 35.00 2.86 94.29 26.50 0.2429 801
2006 8,741.04 35.00 2.86 249.99 31.50 0.1000 874
2007 31,033.07 35.00 2.86 887.55 32.50 0.0714 2,217
401,356.22 11,478.80 264,025
Appendix C-39

ACCOUNT 363.00 -DISTRIBUTION PLANT - STORAGE BATTERY EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1995 9,972.62 15.00 6.67 665.17 3.27 0.7820 7,799
9,972.62 665.17 7,799
Appendix C-40

ACCOUNT 364.00 -DISTRIBUTION PLANT - POLES, TOWERS AND FIXTURES

(1) (2) (3) (4) (5) (6) (7) (8)
1961 17,724.50 38.00 2.63 466.15 3.94 0.8963 15,887
1962 2,279.95 38.00 2.63 59.96 4.22 0.8890 2,027
1963 13,896.23 38.00 2.63 365.47 4.50 0.8816 12,251
1964 300.26 38.00 2.63 7.90 4.80 0.8737 262
1966 61,423.09 38.00 2.63 1,615.43 5.45 0.8566 52,614
1968 17,543.29 38.00 2.63 461.39 6.17 0.8376 14,695
1970 19,558.52 38.00 2.63 514.39 6.99 0.8161 15,961
1971 186,400.85 38.00 2.63 4,902.34 7.43 0.8045 149,954
1972 445,983.19 38.00 2.63 11,729.36 7.90 0.7921 353,268
1973 135,611.98 38.00 2.63 3,566.60 8.40 0.7790 105,635
1974 249,399.68 38.00 2.63 6,559.21 8.92 0.7653 190,856
1975 488,018.91 38.00 2.63 12,834.90 9.46 0.7511 366,527
1976 308,873.83 38.00 2.63 8,123.38 10.03 0.7361 227,347
1977 97,104.21 38.00 2.63 2,553.84 10.62 0.7205 69,966
1978 106,887.10 38.00 2.63 2,811.13 11.24 0.7042 75,271
1979 199,440.05 38.00 2.63 5,245.27 11.87 0.6876 137,141
1980 272,229.71 38.00 2.63 7,159.64 12.53 0.6703 182,465
1981 105,952.90 38.00 2.63 2,786.56 13.21 0.6524 69,120
1982 140,763.24 38.00 2.63 3,702.07 13.90 0.6342 89,273
1983 110,695.29 38.00 2.63 2,911.29 14.61 0.6155 68,136
1984 164,285.52 38.00 2.63 4,320.71 15.34 0.5963 97,967
1985 189,666.71 38.00 2.63 4,988.23 16.08 0.5768 109,407
1986 316,287.34 38.00 2.63 8,318.36 16.84 0.5568 176,121
1987 472,701.59 38.00 2.63 12,432.05 17.62 0.5363 253,519
1988 398,929.00 38.00 2.63 10,491.83 18.41 0.5155 205,660
1989 494,010.80 38.00 2.63 12,992.48 19.21 0.4945 244,274
1990 128,008.92 38.00 2.63 3,366.63 20.03 0.4729 60,534
1991 654,084.98 38.00 2.63 17,202.43 20.86 0.4511 295,025
1992 333,361.87 38.00 2.63 8,767.42 21.70 0.4290 142,996
1993 322,922.60 38.00 2.63 8,492.86 22.56 0.4063 131,210
1994 267,411.42 38.00 2.63 7,032.92 23.42 0.3837 102,600
1995 721,339.22 38.00 2.63 18,971.22 24.30 0.3605 260,064
1996 693,204.23 38.00 2.63 18,231.27 25.19 0.3371 233,686
1997 346,457.04 38.00 2.63 9,111.82 26.09 0.3134 108,587
1998 480,801.43 38.00 2.63 12,645.08 27.00 0.2895 139,178
1999 974,589.54 38.00 2.63 25,631.70 27.92 0.2653 258,520
2000 423,205.87 38.00 2.63 11,130.31 28.85 0.2408 101,904
2001 155,857.48 38.00 2.63 4,099.05 29.79 0.2161 33,673
10,517,212.34 276,602.65 5,153,581
Appendix C-41

ACCOUNT 365.00 -DISTRIBUTION PLANT - OVERHEAD CONDUCTORS AND DEVICES

(1) (2) (3) (4) (5) (6) (7) (8)
1961 8,862.25 40.00 2.50 221.56 4.87 0.8783 7,783
1962 1,139.98 40.00 2.50 28.50 5.18 0.8705 992
1963 6,948.12 40.00 2.50 173.70 5.50 0.8625 5,993
1964 150.13 40.00 2.50 3.75 5.83 0.8543 128
1966 30,711.55 40.00 2.50 767.79 6.57 0.8358 25,667
1968 8,771.64 40.00 2.50 219.29 7.39 0.8153 7,151
1970 9,779.26 40.00 2.50 244.48 8.31 0.7923 7,748
1971 93,200.44 40.00 2.50 2,330.01 8.80 0.7800 72,696
1972 222,991.60 40.00 2.50 5,574.79 9.32 0.7670 171,035
1973 67,805.99 40.00 2.50 1,695.15 9.86 0.7535 51,092
1974 124,699.85 40.00 2.50 3,117.50 10.42 0.7395 92,216
1975 244,009.46 40.00 2.50 6,100.24 11.01 0.7248 176,846
1976 139,779.05 40.00 2.50 3,494.48 11.62 0.7095 99,173
1977 41,725.93 40.00 2.50 1,043.15 12.25 0.6938 28,947
1978 97,894.56 40.00 2.50 2,447.36 12.89 0.6778 66,348
1979 99,720.05 40.00 2.50 2,493.00 13.56 0.6610 65,915
1980 136,114.83 40.00 2.50 3,402.87 14.25 0.6438 87,624
1981 52,976.44 40.00 2.50 1,324.41 14.95 0.6263 33,176
1982 70,381.64 40.00 2.50 1,759.54 15.67 0.6083 42,810
1983 55,347.64 40.00 2.50 1,383.69 16.40 0.5900 32,655
1984 82,142.79 40.00 2.50 2,053.57 17.15 0.5713 46,924
1985 118,421.79 40.00 2.50 2,960.54 17.91 0.5523 65,398
1986 123,924.69 40.00 2.50 3,098.12 18.69 0.5328 66,021
1987 223,980.00 40.00 2.50 5,599.50 19.48 0.5130 114,902
1988 62,149.87 40.00 2.50 1,553.75 20.29 0.4928 30,624
1989 172,322.06 40.00 2.50 4,308.05 21.10 0.4725 81,422
1990 39,647.17 40.00 2.50 991.18 21.93 0.4518 17,911
1991 271,866.17 40.00 2.50 6,796.65 22.78 0.4305 117,038
1992 60,876.12 40.00 2.50 1,521.90 23.63 0.4093 24,914
1993 256,607.28 40.00 2.50 6,415.18 24.49 0.3878 99,499
1994 20,211.35 40.00 2.50 505.28 25.37 0.3658 7,392
1995 154,140.34 40.00 2.50 3,853.51 26.26 0.3435 52,947
1996 178,290.20 40.00 2.50 4,457.26 27.15 0.3213 57,276
1997 174,829.02 40.00 2.50 4,370.73 28.06 0.2985 52,186
1998 159,972.66 40.00 2.50 3,999.32 28.98 0.2755 44,072
1999 177,926.96 40.00 2.50 4,448.17 29.90 0.2525 44,927
2000 83,440.33 40.00 2.50 2,086.01 30.83 0.2293 19,129
2001 45,833.61 40.00 2.50 1,145.84 31.77 0.2058 9,430
2003 724,979.56 40.00 2.50 18,124.49 33.68 0.1580 114,547
2004 487,047.54 40.00 2.50 12,176.19 34.64 0.1340 65,264
2005 642,607.01 40.00 2.50 16,065.18 35.60 0.1100 70,687
2006 1,245,183.24 40.00 2.50 31,129.58 36.57 0.0858 106,774
2007 1,408,815.43 40.00 2.50 35,220.39 37.55 0.0613 86,290
2008 429,709.49 40.00 2.50 10,742.74 38.53 0.0368 15,792
Appendix C-42

ACCOUNT 365.00 -DISTRIBUTION PLANT - OVERHEAD CONDUCTORS AND DEVICES

(1) (2) (3) (4) (5) (6) (7) (8)
8,857,935.09 221,448.39 2,487,361
Appendix C-43

ACCOUNT 366.00 -DISTRIBUTION PLANT - UNDERGROUND CONDUIT

(1) (2) (3) (4) (5) (6) (7) (8)
1995 8,481.13 25.00 4.00 339.25 11.83 0.5268 4,468
1999 8,979.12 25.00 4.00 359.16 15.15 0.3940 3,538
2001 18,827.19 25.00 4.00 753.09 16.91 0.3236 6,092
36,287.44 1,451.50 14,098
Appendix C-44

ACCOUNT 367.00 - DISTRIBUTION PLANT - UNDERGROUND CONDUCTOR AND DEVICES

(1) (2) (3) (4) (5) (6) (7) (8)
1989 38,890.00 25.00 4.00 1,555.60 7.53 0.6988 27,176
1995 42,637.50 25.00 4.00 1,705.50 11.83 0.5268 22,461
1997 2,979.64 25.00 4.00 119.19 13.45 0.4620 1,377
1999 15,809.63 25.00 4.00 632.39 15.15 0.3940 6,229
100,316.77 4,012.68 57,243
Appendix C-45

ACCOUNT 368.00 - DISTRIBUTION PLANT - - LINE TRANSFORMERS

(1) (2) (3) (4) (5) (6) (7) (8)
1962 6,642.79 35.00 2.86 189.98 4.93 0.8591 5,707
1963 1,445.13 35.00 2.86 41.33 5.24 0.8503 1,229
1964 2,274.75 35.00 2.86 65.06 5.56 0.8411 1,913
1965 397.01 35.00 2.86 11.35 5.88 0.8320 330
1966 12,265.01 35.00 2.86 350.78 6.22 0.8223 10,085
1968 4,486.94 35.00 2.86 128.33 6.94 0.8017 3,597
1969 7,104.28 35.00 2.86 203.18 7.32 0.7909 5,618
1970 9,908.08 35.00 2.86 283.37 7.71 0.7797 7,725
1971 33,820.18 35.00 2.86 967.26 8.12 0.7680 25,974
1972 10,548.70 35.00 2.86 301.69 8.55 0.7557 7,972
1973 31,272.14 35.00 2.86 894.38 8.99 0.7431 23,240
1974 59,389.41 35.00 2.86 1,698.54 9.45 0.7300 43,354
1975 75,444.97 35.00 2.86 2,157.73 9.92 0.7166 54,062
1976 82,940.46 35.00 2.86 2,372.10 10.41 0.7026 58,271
1977 18,742.41 35.00 2.86 536.03 10.92 0.6880 12,895
1978 22,062.98 35.00 2.86 631.00 11.45 0.6729 14,845
1979 14,050.29 35.00 2.86 401.84 11.99 0.6574 9,237
1980 15,414.29 35.00 2.86 440.85 12.56 0.6411 9,883
1989 47,256.87 35.00 2.86 1,351.55 18.29 0.4774 22,562
1990 36,397.90 35.00 2.86 1,040.98 19.00 0.4571 16,639
1991 148,735.72 35.00 2.86 4,253.84 19.72 0.4366 64,934
1992 40,468.82 35.00 2.86 1,157.41 20.46 0.4154 16,812
1993 177,229.89 35.00 2.86 5,068.77 21.20 0.3943 69,880
1994 135,747.61 35.00 2.86 3,882.38 21.96 0.3726 50,575
1995 255,143.48 35.00 2.86 7,297.10 22.73 0.3506 89,446
1996 268,830.62 35.00 2.86 7,688.56 23.51 0.3283 88,254
1997 170,401.31 35.00 2.86 4,873.48 24.30 0.3057 52,093
1998 155,418.54 35.00 2.86 4,444.97 25.11 0.2826 43,917
1999 370,324.25 35.00 2.86 10,591.27 25.92 0.2594 96,073
2000 183,539.62 35.00 2.86 5,249.23 26.74 0.2360 43,315
2001 104,007.14 35.00 2.86 2,974.60 27.57 0.2123 22,080
2006 388,737.89 35.00 2.86 11,117.90 31.87 0.0894 34,765
2,890,449.48 82,666.84 1,007,282
Appendix C-46

ACCOUNT 369.00 - DISTRIBUTION PLANT - SERVICES

(1) (2) (3) (4) (5) (6) (7) (8)
1961 2,954.08 40.00 2.50 73.85 4.87 0.8783 2,594
1962 379.99 40.00 2.50 9.50 5.18 0.8705 331
1963 2,316.03 40.00 2.50 57.90 5.50 0.8625 1,998
1964 50.04 40.00 2.50 1.25 5.83 0.8543 43
1966 10,237.18 40.00 2.50 255.93 6.57 0.8358 8,556
1968 2,923.88 40.00 2.50 73.10 7.39 0.8153 2,384
1970 3,259.76 40.00 2.50 81.49 8.31 0.7923 2,583
1971 31,066.81 40.00 2.50 776.67 8.80 0.7800 24,232
1972 74,330.53 40.00 2.50 1,858.26 9.32 0.7670 57,012
1973 22,602.00 40.00 2.50 565.05 9.86 0.7535 17,031
1974 41,566.62 40.00 2.50 1,039.17 10.42 0.7395 30,739
1975 81,336.50 40.00 2.50 2,033.41 11.01 0.7248 58,949
1976 46,593.01 40.00 2.50 1,164.83 11.62 0.7095 33,058
1977 13,908.66 40.00 2.50 347.72 12.25 0.6938 9,649
1978 17,814.53 40.00 2.50 445.36 12.89 0.6778 12,074
1979 33,240.05 40.00 2.50 831.00 13.56 0.6610 21,972
1980 45,371.61 40.00 2.50 1,134.29 14.25 0.6438 29,208
1981 17,658.82 40.00 2.50 441.47 14.95 0.6263 11,059
1982 23,460.57 40.00 2.50 586.51 15.67 0.6083 14,270
1983 18,449.21 40.00 2.50 461.23 16.40 0.5900 10,885
1984 27,380.90 40.00 2.50 684.52 17.15 0.5713 15,641
1985 31,611.13 40.00 2.50 790.28 17.91 0.5523 17,457
1986 41,308.22 40.00 2.50 1,032.71 18.69 0.5328 22,007
1987 95,480.06 40.00 2.50 2,387.00 19.48 0.5130 48,981
1988 39,127.31 40.00 2.50 978.18 20.29 0.4928 19,280
1989 80,961.25 40.00 2.50 2,024.03 21.10 0.4725 38,254
1991 105,903.19 40.00 2.50 2,647.58 22.78 0.4305 45,591
1992 31,710.74 40.00 2.50 792.77 23.63 0.4093 12,978
1997 9,700.00 40.00 2.50 242.50 28.06 0.2985 2,895
2000 7,590.45 40.00 2.50 189.76 30.83 0.2293 1,740
2001 2,620.42 40.00 2.50 65.51 31.77 0.2058 539
2006 7,556.58 40.00 2.50 188.91 36.57 0.0858 648
970,470.13 24,261.74 574,638
Appendix C-47

ACCOUNT 370.00 - DIUSTRIBUTION PLANT - METERS

(1) (2) (3) (4) (5) (6) (7) (8)
1967 7,096.67 25.00 4.00 283.87 1.43 0.9428 6,691
1974 6,900.00 25.00 4.00 276.00 3.02 0.8792 6,066
1975 9,965.60 25.00 4.00 398.62 3.28 0.8688 8,658
1976 51,340.94 25.00 4.00 2,053.64 3.55 0.8580 44,051
1977 7,182.75 25.00 4.00 287.31 3.83 0.8468 6,082
1978 184,684.89 25.00 4.00 7,387.40 4.12 0.8352 154,249
1979 24,450.65 25.00 4.00 978.03 4.42 0.8232 20,128
1980 125,613.53 25.00 4.00 5,024.54 4.73 0.8108 101,847
1981 95,329.54 25.00 4.00 3,813.18 5.06 0.7976 76,035
1983 12,273.98 25.00 4.00 490.96 5.76 0.7696 9,446
1995 4,659.14 25.00 4.00 186.37 11.90 0.5240 2,441
1996 11,346.34 25.00 4.00 453.85 12.62 0.4952 5,619
1997 3,557.63- 25.00 4.00 142.31- 13.37 0.4652 1,655-
1998 52,553.18 25.00 4.00 2,102.13 14.15 0.4340 22,808
1999 189,686.78 25.00 4.00 7,587.47 14.97 0.4012 76,102
2000 6,648.45 25.00 4.00 265.94 15.83 0.3668 2,439
2001 102,677.14 25.00 4.00 4,107.09 16.72 0.3312 34,007
888,851.95 35,554.09 575,014
Appendix C-48

ACCOUNT 371.00 - DISTRIBUTION PLANT - METER INSTALLATIONS

(1) (2) (3) (4) (5) (6) (7) (8)
1995 12,219.07 25.00 4.00 488.76 11.90 0.5240 6,403
1999 15,894.15 25.00 4.00 635.77 14.97 0.4012 6,377
28,113.22 1,124.53 12,780
Appendix C-49

ACCOUNT 373.00 DISTRIBUTION PLANT -- STREET LIGHTING AND SIGNAL SYSTEMS

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 35-S1.5
1969 2,546.42 35.00 2.86 72.83 8.04 0.7703 1,961
1971 3,424.25 35.00 2.86 97.93 8.74 0.7503 2,569
1974 10,350.00 35.00 2.86 296.01 9.86 0.7183 7,434
1975 6,261.18 35.00 2.86 179.07 10.25 0.7071 4,428
1976 1,628.65 35.00 2.86 46.58 10.66 0.6954 1,133
1979 11,917.27 35.00 2.86 340.83 11.98 0.6577 7,838
1980 20,215.56 35.00 2.86 578.17 12.44 0.6446 13,030
1988 6,650.96 35.00 2.86 190.22 16.81 0.5197 3,457
1989 16,361.87 35.00 2.86 467.95 17.45 0.5014 8,204
1991 10,573.09 35.00 2.86 302.39 18.78 0.4634 4,900
1996 35,834.10 35.00 2.86 1,024.86 22.51 0.3569 12,788
1997 19,316.76 35.00 2.86 552.46 23.33 0.3334 6,441
1998 23,335.54 35.00 2.86 667.40 24.16 0.3097 7,227
1999 19,846.44 35.00 2.86 567.61 25.02 0.2851 5,659
2000 7,086.58 35.00 2.86 202.68 25.90 0.2600 1,843
2001 21,812.04 35.00 2.86 623.82 26.80 0.2343 5,110
217,160.71 6,210.81 94,022
Appendix C-50

ACCOUNT 390.00 - GENERAL PLANT - STRUCTURES AND IMPROVEMENTS

(1) (2) (3) (4) (5) (6) (7) (8)
1966 2,883.00 45.00 2.22 64.00 9.81 0.7820 2,255
1968 140,756.69 45.00 2.22 3,124.80 10.85 0.7589 106,819
1971 63,125.07 45.00 2.22 1,401.38 12.57 0.7207 45,492
1972 45,152.24 45.00 2.22 1,002.38 13.19 0.7069 31,918
1973 457,512.28 45.00 2.22 10,156.77 13.82 0.6929 317,006
1974 166,447.42 45.00 2.22 3,695.13 14.46 0.6787 112,963
1975 369,814.60 45.00 2.22 8,209.88 15.13 0.6638 245,476
1976 378,284.42 45.00 2.22 8,397.91 15.81 0.6487 245,382
1977 469,838.97 45.00 2.22 10,430.43 16.51 0.6331 297,460
1978 9,152.28 45.00 2.22 203.18 17.22 0.6173 5,650
1981 53,420.40 45.00 2.22 1,185.93 19.44 0.5680 30,343
1984 1.00 45.00 2.22 .02 21.77 0.5162 1
1985 413,932.60 45.00 2.22 9,189.30 22.57 0.4984 206,321
1986 67,983.88 45.00 2.22 1,509.24 23.38 0.4804 32,662
1988 1,787,500.00 45.00 2.22 39,682.50 25.04 0.4436 792,864
1989 540,036.23 45.00 2.22 11,988.80 25.89 0.4247 229,337
1991 9,293.07 45.00 2.22 206.31 27.61 0.3864 3,591
1995 160,757.83 45.00 2.22 3,568.82 31.17 0.3073 49,406
1996 31,098.52 45.00 2.22 690.39 32.08 0.2871 8,929
1997 17,572.09 45.00 2.22 390.10 33.00 0.2667 4,686
1998 205,828.60 45.00 2.22 4,569.39 33.93 0.2460 50,634
1999 46,290.95 45.00 2.22 1,027.66 34.86 0.2253 10,431
2002 114,110.39 45.00 2.22 2,533.25 37.71 0.1620 18,486
2003 184,008.72 45.00 2.22 4,084.99 38.67 0.1407 25,885
2008 346,201.93 45.00 2.22 7,685.68 43.53 0.0327 11,310
6,081,003.18 134,998.24 2,885,307
Appendix C-51

ACCOUNT 391.00 - GENERAL PLANT - OFFICE FURNITURE AND EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. 5-SQUARE
1977 4,093.04 5.00 20.00 .00 0.00 1.0000 4,093
1988 6,000.00 5.00 20.00 .00 0.00 1.0000 6,000
1997 58,547.00 5.00 20.00 .00 0.00 1.0000 58,547
1998 206,919.51 5.00 20.00 .00 0.00 1.0000 206,920
1999 142,311.88 5.00 20.00 .00 0.00 1.0000 142,312
2000 233,987.53 5.00 20.00 .00 0.00 1.0000 233,988
2001 627,706.97 5.00 20.00 .00 0.00 1.0000 627,707
2004 104,952.17 5.00 20.00 .00 0.00 1.0000 104,952
2005 594,588.32 5.00 20.00 118,917.66 0.50 0.9000 535,129
2006 43,418.85 5.00 20.00 8,683.77 1.50 0.7000 30,393
2007 30,958.49 5.00 20.00 6,191.70 2.50 0.5000 15,479
2,053,483.76 133,793.13 1,965,520
Appendix C-52

ACCOUNT 392.00 - GENERAL PLANT - TRANSPORTATION EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 12-L1.5
1974 18,341.83 12.00 8.33 1,527.87 0.53 0.9558 17,532
1977 13,952.92 12.00 8.33 1,162.28 1.00 0.9167 12,790
1982 19,834.29 12.00 8.33 1,652.20 1.75 0.8542 16,942
1984 103,260.54 12.00 8.33 8,601.60 2.08 0.8267 85,362
1985 17,758.62 12.00 8.33 1,479.29 2.25 0.8125 14,429
1987 151,791.62 12.00 8.33 12,644.24 2.63 0.7808 118,523
1988 237,186.63 12.00 8.33 19,757.65 2.83 0.7642 181,251
1989 26,658.88 12.00 8.33 2,220.68 3.04 0.7467 19,905
1990 101,970.47 12.00 8.33 8,494.14 3.27 0.7275 74,184
1991 125,426.52 12.00 8.33 10,448.03 3.49 0.7092 88,949
1992 116,206.10 12.00 8.33 9,679.97 3.73 0.6892 80,086
1993 75,387.00 12.00 8.33 6,279.74 3.98 0.6683 50,383
1995 119,582.41 12.00 8.33 9,961.21 4.49 0.6258 74,838
1996 32,298.00 12.00 8.33 2,690.42 4.75 0.6042 19,513
1997 383,773.21 12.00 8.33 31,968.31 5.02 0.5817 223,229
1999 239,424.93 12.00 8.33 19,944.10 5.57 0.5358 128,291
2000 304,039.02 12.00 8.33 25,326.45 5.87 0.5108 155,312
2002 482,411.87 12.00 8.33 40,184.91 6.58 0.4517 217,891
2003 173,355.11 12.00 8.33 14,440.48 7.03 0.4142 71,798
2004 268,517.30 12.00 8.33 22,367.49 7.57 0.3692 99,129
2006 341,185.34 12.00 8.33 28,420.74 8.92 0.2567 87,572
2007 699,431.43 12.00 8.33 58,262.64 9.72 0.1900 132,892
2008 338,895.12 12.00 8.33 28,229.96 10.59 0.1175 39,820
4,390,689.16 365,744.40 2,010,621
Appendix C-53

ACCOUNT 393.00 - STORES EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1968 8,942.90 25.00 4.00 357.72 0.21 0.9916 8,868
1976 3,921.73 25.00 4.00 156.87 2.17 0.9132 3,581
1989 26,783.99 25.00 4.00 1,071.36 7.53 0.6988 18,717
39,648.62 1,585.95 31,166
Appendix C-54

ACCOUNT 394.00 - GENERAL PLANT - TOOLS, SHOP AND GARAGE EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1962 3,535.02 15.00 6.67 .00 0.00 1.0000 3,535
1975 8,375.00 15.00 6.67 .00 0.00 1.0000 8,375
1976 6,455.24 15.00 6.67 .00 0.00 1.0000 6,455
1977 2,971.76 15.00 6.67 .00 0.00 1.0000 2,972
1988 10,354.96 15.00 6.67 .00 0.00 1.0000 10,355
2000 39,444.81 15.00 6.67 2,630.97 5.50 0.6333 24,982
2001 29,845.98 15.00 6.67 1,990.73 6.50 0.5667 16,913
2002 3,110.00 15.00 6.67 207.44 7.50 0.5000 1,555
2008 50,200.00 15.00 6.67 3,348.34 13.50 0.1000 5,020
154,292.77 8,177.48 80,162
Appendix C-55

ACCOUNT 395.00 - LABORATORY EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1979 1,236.53 20.00 5.00 .00 0.00 1.0000 1,237
1983 5,470.37 20.00 5.00 .00 0.00 1.0000 5,470
1988 4,094.72 20.00 5.00 .00 0.00 1.0000 4,095
1989 17,030.00 20.00 5.00 .00 0.00 1.0000 17,030
27,831.62 .00 27,832
Appendix C-56

ACCOUNT 396.00 - GENERAL PLANT - POWER OPERATED EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
SURVIVOR CURVE.. IOWA 20-L1
1977 5,399.98 20.00 5.00 270.00 5.95 0.7025 3,793
1985 19,339.33 20.00 5.00 966.97 8.02 0.5990 11,584
1987 12,697.15 20.00 5.00 634.86 8.60 0.5700 7,237
1988 98,488.04 20.00 5.00 4,924.40 8.90 0.5550 54,661
1999 7,221.23 20.00 5.00 361.06 12.78 0.3610 2,607
2000 1.00 20.00 5.00 .05 13.22 0.3390 0
143,146.73 7,157.34 79,882
Appendix C-57

ACCOUNT 397.00 - GENERAL PLANT - COMMUNICATION EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1982 11,822.11 25.00 4.00 472.88 3.99 0.8404 9,935
2000 210,231.85 25.00 4.00 8,409.27 16.02 0.3592 75,515
2002 152,522.32 25.00 4.00 6,100.89 17.82 0.2872 43,804
2003 1,200,952.07 25.00 4.00 48,038.08 18.75 0.2500 300,238
2006 324,330.00 25.00 4.00 12,973.20 21.59 0.1364 44,239
1,899,858.35 75,994.32 473,731
Appendix C-58

ACCOUNT 398.00 - MISCELLANOUS EQUIPMENT

(1) (2) (3) (4) (5) (6) (7) (8)
1986 3,118.88 15.00 6.67 .00 0.00 1.0000 3,119
2002 307,227.41 15.00 6.67 20,492.07 7.50 0.5000 153,614
2003 535,410.24 15.00 6.67 35,711.86 8.50 0.4333 232,009
2005 23,551.50 15.00 6.67 1,570.89 10.50 0.3000 7,065
869,308.03 57,774.82 395,807
Appendix C-59

APPENDIX D
LEAD LAG STUDY

Appendix D
Working Capital Calculation
Line
No. Days
1 Average Lag in Revenue Collection 47.00
2 Less: Average Lag in Payment of Operating Expenses 32.37
3 Net Revenue Lag 14.63
Appendix D-1

Calculation of Average Revenue Lag
2008/09 Weighted
Actual Consumption Billing Payment Average
Line Revenue Revenue Lag Lag Lag Lag Notes Revenue
No. Source Days
1 Nunavut Housing Assoc. $ 14,552 15 2 30 47 1 $ 683,922
2 Territorial Subsidy $ 12,079 15 2 30 47 2 $ 567,707
3 Other - Domestic, $ 46,619 15 2 30 47 3 $ 2,191,104

Commercial & Streetlight
4 $ 73,250 47.00 $ 3,442,733
Notes:
1. Lag days for Nunanvut Housing Association is based on a 15 day consumption lag, followed by a 2 day billing lag and half of the maximum allowable time for payment prior to interest charges being applied.
2. Lag days for the Territorial Subsidy is based on half of the maximum allowable time for payment prior to interest charges plus a 15 consumption lag and a 2 day billing lag.
3. Lag days for Domestic and Commercial customers is based on a 15 day consumption lag, followed by a 2 day billing lag and half of the maximum allowable time for payment prior to interest charges.
Appendix D-2

Calculation of Average Expense Lag
2008/09 Weighted
Actual Average
Line Expense Expenses Consumption Payment Lag Notes Expense
No. Category Lag Lag Days
1 Salaries and Benefits $ 18,933 7.5 0 7.50 1 $ 141,998
2 Fuel 44,834 15 30 45.00 2 $ 2,017,512
3 Supplies and Services 11,859 15 10 25.00 3 $ 296,480
4 Travel and Accomodation 3,412 30 30.00 4 $ 102,360
5 $ 79,038 32.37 $ 2,558,350
Notes:
1. Assumes an average 7.5 day comsumption lag to reflect bi-weekly payment cycle. No lag assumed in payment.
2. Assumes a 15 day consumption lag, followed by a 30 day allowance to pay the invoice as per the contractual agreement with PPD.
3. Supplies and Serices exclude prepaid expenses (Rent prepayment and Insurance expense). Assumes a 15 consumption lag, followed by 10 day lag to pay the invoices.
4. Travel and accommodation expenses are paid in the same day with a credit card. Assume 30 day grace period prior to interest charges being applied.
Appendix D-3

Computation of Weighted Average GST Lag
Line Amount Payment/ Expenditure/ Net Lag Weighted Lag

No. ($000) Collection Remittance (Lead) Days
Lag Days Lag (Lead) (Lead) Days
Days
1 GST Expenditure Lag 3,005 -5.00 38.00 33.00 14.87
2 GST Remittance Lag 3,662 32.00 -38.00 -6.00 -3.30
3 Totals 6668 11.58
Appendix D-4
APPENDIX E
LOAD FORECAST METHOD ILLUSTRATION

APPENDIX E
1. Regression analysis by community and by rate class (Domestic, Commercial)
Actual Dependent Explanatory Regression

Adjustment
Load Data Variable Variables results
Intercept
HDD (94-2009) HDD
Square of HDD HDD2
Trend Trend
Dum 1 Dum 1
Monthly Dum 2 Dum 2
Adjusted
Billing Dum 3 Dum 3
Monthly
Coefficients
data Billing lag Dum 4 Dum 4
Sales (April,
(April, adjustment Dum 5 Dum 5
1994 -
1994 - (max 15 %) Dum 6 Dum 6
March,
March, Dum 7 Dum 7
2009)
2009) Dum 8 Dum 8
Dum 9 Dum 9
Dum 10 Dum 10
Dum 11 Dum 11
Dum 12 Dum 12
2. Sales Monthly Forecast

Regression results
Variables
Intercept Intercept
10-year average of HDD X HDD = HDD
Square of 10-y. av.HDD X HDD
2
= HDD
2
Trend X Trend = Trend

Dum 1 X Dum 1 = Dum 1
Dum 3 X Dum 3 = Dum 3 Monthly
Coefficients
Dum 4 X Dum 4 = Dum 4 Sales

Dum 5 X Dum 5 = Dum 5 Forecast
Notes:
1. Regression analysis, as well as sales forecasts are done separately for Domestic and Commercial sales.
2. Dummy variables represent each month of the year.
Appendix E-1

APPENDIX F
INVESTMENT OPTIONS
Appendix F-3
Memo
Date:June 10, 2010
To: Adrian de Machado
From: Renee Comeau Phone:(867)873-4452 x453
Dept:
Re: Short Term Investmetn Options
cc: Ernie Carmichael; Bob Pospisil
Good Afternoon Adrian,
As per your email request please see the recommended short term investment options.
Below I have listed GIC’s that I find to be attractive to our business clients; they are the
Bonus Rate GIC, and the Flexi GIC. I have also included rates for Treasury Bills and
Bankers Acceptances. I am still waiting for information on Commercial paper as not a lot
of our clients are investing in these instruments in this current economic climate.
The Bonus Rate GIC is a non-redeemable, non-registered GIC priced at a high

premium. The interest rate for $850k would be 0.30% for 180days, 0.35% for 270 days
and 1.10% for 12 months.
The Flexi GIC (FLGIC) is a redeemable, non-registered fixed rate investment with the
flexibility to withdraw funds any time, with interest after 29 days. The interest rate for
$850k would be 0.40%
*Please note Interest rates quoted are effective annual yields and are
subject to change without notice until confirmed by the bank.
Treasury Bill (T-Bill): The rates for $850k are 0.65% for 6 months, and 1.05% for 12
months.
Banker’s Acceptance (BA): The interest rates for $850k for 6 months would be
0.90%
Appendix F-1
Page 1
To summarize the Bonus Rate GIC paying 1.10% is the best option from an
administrative standpoint in terms of safety and ease of administration. At maturity if we
do not hear from you the funds will be automatically invested for a further year.
For the non-GIC options these are automatically redeemed at security and deposited into
the account requiring further instructions on your part for re-investment.
Please feel free to log onto www.cibc.com to view more information on the GIC’s. I look
forward to hearing from you once you have had a chance to review this information.
Sincerely,
Renee Comeau
FSABB to Ernie Carmichael
(867) 873-44562 x453
(867) 766-2771 F
renee.comeau@cibc.com
Appendix F-2
Page 2
APPENDIX G
PLANNED AND UNPLANNED OUTAGES REPORT

Total Time of Planned and Unplanned Outages (April - June 2005)
Time of Planned Unplanned Time of Unplanned Total Total Time of

Community Planned Outages Reliability
Outage (Minutes) Outages Outages (Minutes) Outages (Minutes)
Kitikmeot region
Cambridge Bay 2 210 0 0 2 210 99.84%
Gjoa Haven 3 90 3 365 6 455 99.65%
Taloyoak 1 15 1 45 2 60 99.95%
Kugaaruk 0 0 1 5 1 5 100.00%
Kugluktuk 0 0 0 0 0 0 100.00%
Total 6 315 5 415 11 730

Total Hours 5 7 12 99.889%
Kivalliq region
Rankin Inlet 0 0 0 0 0 0 100.00%
Baker Lake 0 0 1 75 1 75 99.94%
Arviat 1 45 11 135 12 180 99.86%
Coral Harbour 3 65 3 75 6 140 99.89%
Chesterfield Inlet 0 0 3 290 3 290 99.78%
Whale Cove 0 0 3 975 3 975 99.26%
Repulse Bay 0 0 4 69 4 69 99.95%
Total 4 110 25 1,619 29 1,729

Total Hours 2 27 29 99.812%
Qikiqtaaluk region
Iqaluit 0 0 3 80 3 80 99.94%
Pangnirtung 0 0 9 89 9 89 99.93%
Cape Dorset 4 44 2 29 6 73 99.94%
Resolute Bay 1 70 5 60 6 130 99.90%
Pond Inlet 3 102 1 20 4 122 99.91%
Igloolik 1 17 3 471 4 488 99.63%
Hall Beach 0 0 2 97 2 97 99.93%
Qikiqtarjuaq 2 67 1 83 3 150 99.89%
Kimmirut 0 0 0 0 0 0 100.00%
Arctic Bay 1 39 0 0 1 39 99.97%
Clyde River 1 30 0 0 1 30 99.98%
Grise Fiord 0 0 3 60 3 60 99.95%
Sanikiluaq 1 130 9 363 10 493 99.62%
Total 14 499 38 1,352 52 1,851

Total Hours 8 23 31 99.891%
Appendix G-1
Total Time of Planned and Unplanned Outages (July - September 2005)

Kitikmeot region
Cambridge Bay 2 310 3 32 5 342 99.74%
Gjoa Haven 2 20 5 301 7 321 99.76%
Taloyoak 1 105 0 0 1 105 99.92%
Kugaaruk 0 0 1 5 1 5 100.00%
Kugluktuk 0 0 2 10 2 10 99.99%
Total 5 435 11 348 16 783

Total Hours 7 6 13 99.882%
Kivalliq region
Rankin Inlet 4 720 1 10 5 730 99.45%
Baker Lake 0 0 2 1,228 2 1,228 99.07%
Arviat 6 3,000 4 160 10 3,160 97.61%
Coral Harbour 9 3,720 8 3,247 17 6,967 94.74%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 2 180 2 180 99.86%
Total 21 7,750 19 4,845 40 12,595

Total Hours 129 81 210 98.642%
Qikiqtaaluk region
Iqaluit 3 328 5 17 8 345 99.74%
Pangnirtung 0 0 5 51 5 51 99.96%
Cape Dorset 0 0 0 0 0 0 100.00%
Resolute Bay 0 0 3 152 3 152 99.89%
Pond Inlet 3 28 2 27 5 55 99.96%
Igloolik 3 134 5 773 8 907 99.32%
Hall Beach 1 12 5 113 6 125 99.91%
Qikiqtarjuaq 1 21 0 0 1 21 99.98%
Kimmirut 0 0 6 59 6 59 99.96%
Arctic Bay 3 80 10 49 13 129 99.90%
Clyde River 1 3 2 59 3 62 99.95%
Grise Fiord 0 0 1 6 1 6 100.00%
Sanikiluaq 6 265 0 0 6 265 99.80%
Total 21 871 44 1,306 65 2,177

Total Hours 15 22 36 99.874%
Appendix G-2
Total Time of Planned and Unplanned Outages (October - December 2005)

Kitikmeot region
Cambridge Bay 0 0 4 430 4 430 99.68%
Gjoa Haven 1 30 2 85 3 115 99.91%
Taloyoak 2 65 2 703 4 768 99.42%
Kugaaruk 0 0 1 10 1 10 99.99%
Kugluktuk 0 0 1 10 1 10 99.99%
Total 3 95 10 1,238 13 1,333

Total Hours 2 21 22 99.799%
Kivalliq region
Rankin Inlet 0 0 5 68 5 68 99.95%
Baker Lake 0 0 17 419 17 419 99.68%
Arviat 2 129 0 0 2 129 99.90%
Coral Harbour 2 100 8 777 10 877 99.34%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 10 508 10 508 99.62%
Total 6 394 41 2,432 47 2,826

Total Hours 7 41 47 99.695%
Qikiqtaaluk region
Iqaluit 0 0 6 246 6 246 99.81%
Pangnirtung 1 22 10 349 11 371 99.72%
Cape Dorset 0 0 0 0 0 0 100.00%
Resolute Bay 0 0 5 178 5 178 99.87%
Pond Inlet 5 54 4 1,400 9 1,454 98.90%
Igloolik 5 127 3 26 8 153 99.88%
Hall Beach 2 105 10 197 12 302 99.77%
Qikiqtarjuaq 1 38 2 67 3 105 99.92%
Kimmirut 1 16 0 0 1 16 99.99%
Arctic Bay 1 22 5 15 6 37 99.97%
Clyde River 0 0 1 10 1 10 99.99%
Grise Fiord 0 0 5 1,044 5 1,044 99.21%
Sanikiluaq 4 215 5 285 9 500 99.62%
Total 20 599 56 3,817 76 4,416

Total Hours 10 64 74 99.744%
Appendix G-3
Total Time of Planned and Unplanned Outages (January - March 2006)

Kitikmeot region
Cambridge Bay 0 0 3 494 3 494 99.62%
Gjoa Haven 0 0 0 0 0 0 100.00%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 0 0 0 0 0 0 100.00%
Total 0 0 3 494 3 494

Total Hours 0 8 8 99.924%
Kivalliq region
Rankin Inlet 1 9 2 725 3 734 99.43%
Baker Lake 0 0 5 70 5 70 99.95%
Arviat 0 0 0 0 0 0 100.00%
Coral Harbour 0 0 6 116 6 116 99.91%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 1 2 1 2 100.00%
Total 1 9 15 919 16 928

Total Hours 0 15 15 99.898%
Qikiqtaaluk region
Iqaluit 2 81 15 725 17 806 99.38%
Pangnirtung 1 25 3 420 4 445 99.66%
Cape Dorset 2 79 2 73 4 152 99.88%
Resolute Bay 2 65 5 213 7 278 99.79%
Pond Inlet 3 73 3 42 6 115 99.91%
Igloolik 1 31 3 25 4 56 99.96%
Hall Beach 1 15 3 101 4 116 99.91%
Qikiqtarjuaq 1 38 1 5 2 43 99.97%
Kimmirut 0 0 0 0 0 0 100.00%
Arctic Bay 0 0 0 0 0 0 100.00%
Clyde River 0 0 0 0 0 0 100.00%
Grise Fiord 1 23 6 239 7 262 99.80%
Sanikiluaq 1 125 21 21 22 146 99.89%
Total 15 555 62 1,864 77 2,419

Total Hours 9 31 40 99.856%
Appendix G-4

Kitikmeot region
Cambridge Bay 0 0 2 60 2 60 99.95%
Gjoa Haven 2 240 2 60 4 300 99.77%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 1 60 5 150 6 210 99.84%
Kugluktuk 0 0 1 30 1 30 99.98%
Total 3 300 10 300 13 600

Total Hours 5 5 10 99.908%
Kivalliq region
Rankin Inlet 0 0 2 15 2 15 99.99%
Baker Lake 0 0 6 35 6 35 99.97%
Arviat 0 0 2 50 2 50 99.96%
Coral Harbour 0 0 10 76 10 76 99.94%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 1 9 1 9 99.99%
Total 0 0 21 185 21 185

Qikiqtaaluk region
Iqaluit 4 120 1 3 5 123 99.91%
Pangnirtung 0 0 1 10 1 10 99.99%
Cape Dorset 1 50 4 535 5 585 99.55%
Resolute Bay 0 0 0 0 0 0 100.00%
Pond Inlet 0 0 3 255 3 255 99.81%
Igloolik 2 53 1 63 3 116 99.91%
Hall Beach 1 33 8 84 9 117 99.91%
Qikiqtarjuaq 1 19 3 75 4 94 99.93%
Kimmirut 0 0 5 90 5 90 99.93%
Arctic Bay 0 0 0 0 0 0 100.00%
Clyde River 2 47 2 24 4 71 99.95%
Grise Fiord 0 0 1 5 1 5 100.00%
Sanikiluaq 5 460 10 808 15 1,268 99.03%
Total 16 782 39 1,952 55 2,734

Total Hours 13 33 46 99.840%
Appendix G-5

Kitikmeot region
Cambridge Bay 0 30 1 0 1 30 99.98%
Gjoa Haven 0 0 1 0 1 0 100.00%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 3 270 0 0 3 270 99.79%
Total 3 300 2 0 5 300

Kivalliq region
Rankin Inlet 0 0 1 28 1 28 99.98%
Baker Lake 0 0 6 6 6 6 100.00%
Arviat 0 0 2 14 2 14 99.99%
Coral Harbour 0 0 6 36 6 36 99.97%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 3 48 3 48 99.96%
Total 3 288 20 148 23 436

Qikiqtaaluk region
Iqaluit 0 0 6 39 6 39 99.97%
Pangnirtung 1 82 11 103 12 185 99.86%
Cape Dorset 0 0 3 53 3 53 99.96%
Resolute Bay 2 406 3 40 5 446 99.66%
Pond Inlet 1 62 2 78 3 140 99.89%
Igloolik 1 34 7 87 8 121 99.91%
Hall Beach 1 139 4 127 5 266 99.80%
Qikiqtarjuaq 2 77 0 0 2 77 99.94%
Kimmirut 0 0 3 77 3 77 99.94%
Arctic Bay 1 28 1 2 2 30 99.98%
Clyde River 0 0 6 415 6 415 99.68%
Grise Fiord 3 121 1 18 4 139 99.89%
Sanikiluaq 8 690 2 130 10 820 99.37%
Total 20 1,639 49 1,169 69 2,808

Total Hours 27 19 47 99.835%
Appendix G-6

Kitikmeot region
Cambridge Bay 0 0 0 0 0 0 100.00%
Gjoa Haven 2 120 1 180 3 300 99.77%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 1 30 1 30 2 60 99.95%
Kugluktuk 1 30 0 0 1 30 99.98%
Total 4 180 2 210 6 390

Kivalliq region
Rankin Inlet 0 0 1 3 1 3 100.00%
Baker Lake 0 0 9 99 9 99 99.93%
Arviat 0 0 2 10 2 10 99.99%
Coral Harbour 0 0 6 1,447 6 1,447 98.91%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 0 0 0 0 100.00%
Total 1 5 19 1,569 20 1,574

Total Hours 0 26 26 99.830%
Qikiqtaaluk region
Iqaluit 0 0 3 125 3 125 99.91%
Pangnirtung 0 0 7 180 7 180 99.86%
Cape Dorset 0 0 2 823 2 823 99.38%
Resolute Bay 0 0 8 180 8 180 99.86%
Pond Inlet 4 124 7 153 11 277 99.79%
Igloolik 5 399 5 96 10 495 99.63%
Hall Beach 1 9 3 49 4 58 99.96%
Qikiqtarjuaq 2 41 2 12 4 53 99.96%
Kimmirut 0 0 0 0 0 0 100.00%
Arctic Bay 0 0 5 89 5 89 99.93%
Clyde River 0 0 0 0 0 0 100.00%
Grise Fiord 1 19 4 66 5 85 99.94%
Sanikiluaq 3 140 4 206 7 346 99.74%
Total 16 732 50 1,979 66 2,711

Total Hours 12 33 45 99.843%
Appendix G-7

Kitikmeot region
Cambridge Bay 1 150 3 210 4 360 99.72%
Gjoa Haven 2 60 6 270 8 330 99.75%
Taloyoak 1 60 2 90 3 150 99.88%
Kugaaruk 0 0 1 30 1 30 99.98%
Kugluktuk 0 0 2 60 2 60 99.95%
Total 4 270 14 660 18 930

Total Hours 5 11 16 99.856%
Kivalliq region
Rankin Inlet 0 0 11 102 11 102 99.92%
Baker Lake 0 0 5 62 5 62 99.95%
Arviat 0 0 4 14 4 14 99.99%
Coral Harbour 0 0 2 20 2 20 99.98%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 3 23 3 23 99.98%
Total 0 0 26 236 26 236

Qikiqtaaluk region
Iqaluit 0 0 3 85 3 85 99.93%
Pangnirtung 0 0 4 1,165 4 1,165 99.10%
Cape Dorset 0 0 2 250 2 250 99.81%
Resolute Bay 1 20 5 68 6 88 99.93%
Pond Inlet 1 28 8 216 9 244 99.81%
Igloolik 3 27 0 0 3 27 99.98%
Hall Beach 0 0 2 33 2 33 99.97%
Qikiqtarjuaq 4 73 1 4 5 77 99.94%
Kimmirut 2 76 1 20 3 96 99.93%
Arctic Bay 1 10 5 23 6 33 99.97%
Clyde River 0 0 2 86 2 86 99.93%
Grise Fiord 1 24 2 6 3 30 99.98%
Sanikiluaq 5 215 2 92 7 307 99.76%
Total 18 473 37 2,048 55 2,521

Total Hours 8 34 42 99.850%
Appendix G-8

Kitikmeot region
Cambridge Bay 1 30 0 0 1 30 99.98%
Gjoa Haven 1 30 2 60 3 90 99.93%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 1 30 2 60 3 90 99.93%
Total 3 90 4 120 7 210

Kivalliq region
Rankin Inlet 0 0 0 0 0 0 100.00%
Baker Lake 1 123 6 46 7 169 99.87%
Arviat 0 0 4 145 4 145 99.89%
Coral Harbour 0 0 5 25 5 25 99.98%
Whale Cove 1 180 0 0 1 180 99.86%
Repulse Bay 0 0 2 10 2 10 99.99%
Total 3 363 17 226 20 589

Total Hours 6 4 10 99.936%
Qikiqtaaluk region
Iqaluit 1 171 1 13 2 184 99.86%
Pangnirtung 1 1 3 17 4 18 99.99%
Cape Dorset 2 180 1 28 3 208 99.84%
Resolute Bay 2 222 9 140 11 362 99.72%
Pond Inlet 3 74 0 0 3 74 99.94%
Igloolik 0 0 0 0 0 0 100.00%
Hall Beach 3 68 2 8 5 76 99.94%
Qikiqtarjuaq 0 0 1 5 1 5 100.00%
Kimmirut 1 80 1 40 2 120 99.91%
Arctic Bay 0 0 11 48 11 48 99.96%
Clyde River 1 59 0 0 1 59 99.95%
Grise Fiord 2 81 1 1 3 82 99.94%
Sanikiluaq 1 1 10 668 11 669 99.49%
Total 17 937 40 968 57 1,905

Total Hours 16 16 32 99.888%
Appendix G-9

Kitikmeot region
Cambridge Bay 2 60 1 30 3 90 99.93%
Gjoa Haven 0 0 1 30 1 30 99.98%
Taloyoak 0 0 1 30 1 30 99.98%
Kugaaruk 3 390 3 90 6 480 99.64%
Kugluktuk 4 210 2 300 6 510 99.62%
Total 9 660 8 480 17 1,140

Total Hours 11 8 19 99.828%
Kivalliq region
Rankin Inlet 0 0 2 25 2 25 99.98%
Baker Lake 0 0 2 13 2 13 99.99%
Arviat 0 0 2 15 2 15 99.99%
Coral Harbour 0 0 1 7,200 1 7,200 94.57%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 7 56 7 56 99.96%
Total 0 0 15 7,369 15 7,369

Total Hours 0 123 123 99.205%
Qikiqtaaluk region
Iqaluit 3 597 5 289 8 886 99.33%
Pangnirtung 1 43 5 36 6 79 99.94%
Cape Dorset 0 0 5 607 5 607 99.54%
Resolute Bay 1 46 5 94 6 140 99.89%
Pond Inlet 4 150 2 234 6 384 99.71%
Igloolik 5 229 3 8 8 237 99.82%
Hall Beach 2 63 5 27 7 90 99.93%
Qikiqtarjuaq 0 0 2 33 2 33 99.98%
Kimmirut 4 34 12 544 16 578 99.56%
Arctic Bay 4 302 2 114 6 416 99.69%
Clyde River 0 0 1 28 1 28 99.98%
Grise Fiord 3 55 2 17 5 72 99.95%
Sanikiluaq 2 340 4 275 6 615 99.54%
Total 29 1,859 53 2,306 82 4,165

Total Hours 31 38 69 99.758%
Appendix G-10

Kitikmeot region
Cambridge Bay 3 270 4 150 7 420 99.68%
Gjoa Haven 3 390 9 420 12 810 99.39%
Taloyoak 0 0 0 0 0 0 100.00%
Kugaaruk 5 150 0 0 5 150 99.89%
Kugluktuk 3 120 0 0 3 120 99.91%
Total 14 930 13 570 27 1,500

Total Hours 16 10 25 99.774%
Kivalliq region
Rankin Inlet 1 120 4 40 5 160 99.88%
Baker Lake 1 47 12 101 13 148 99.89%
Arviat 0 0 6 67 6 67 99.95%
Coral Harbour 0 0 3 40 3 40 99.97%
Whale Cove 0 0 2 5,760 2 5,760 95.65%
Repulse Bay 0 0 16 99 16 99 99.93%
Total 2 167 49 6,182 51 6,349

Total Hours 3 103 106 99.315%
Qikiqtaaluk region
Iqaluit 1 68 2 44 3 112 99.92%
Pangnirtung 1 100 9 255 10 355 99.73%
Cape Dorset 0 0 0 0 0 0 100.00%
Resolute Bay 1 5 16 141 17 146 99.89%
Pond Inlet 2 61 1 63 3 124 99.91%
Igloolik 3 106 8 101 11 207 99.84%
Hall Beach 0 0 18 511 18 511 99.61%
Qikiqtarjuaq 2 145 6 59 8 204 99.85%
Kimmirut 4 72 3 10 7 82 99.94%
Arctic Bay 1 35 6 99 7 134 99.90%
Clyde River 3 161 0 0 3 161 99.88%
Grise Fiord 2 57 4 2,025 6 2,082 98.43%
Sanikiluaq 2 330 7 806 9 1,136 99.14%
Total 22 1,140 80 4,114 102 5,254

Total Hours 19 69 88 99.695%
Appendix G-11

Kitikmeot region
Cambridge Bay 0 0 4 95 4 95 99.93%
Gjoa Haven 3 60 4 60 7 120 99.91%
Taloyoak 0 0 2 45 2 45 99.97%
Kugaaruk 0 0 2 30 2 30 99.98%
Kugluktuk 0 0 2 45 2 45 99.97%
Total 3 60 14 275 17 335

Kivalliq region
Rankin Inlet 27 1,710 10 462 37 2,172 98.32%
Baker Lake 0 0 10 181 10 181 99.86%
Arviat 0 0 1 45 1 45 99.97%
Coral Harbour 0 0 3 45 3 45 99.97%
Whale Cove 0 0 0 0 0 0 100.00%
Repulse Bay 0 0 4 24 4 24 99.98%
Total 27 1,710 29 762 56 2,472

Total Hours 29 13 41 99.728%
Qikiqtaaluk region
Iqaluit 0 0 6 577 6 577 99.55%
Pangnirtung 0 0 8 107 8 107 99.92%
Cape Dorset 0 0 0 0 0 0 100.00%
Resolute Bay 0 0 8 130 8 130 99.90%
Pond Inlet 0 0 2 4 2 4 100.00%
Igloolik 0 0 5 58 5 58 99.96%
Hall Beach 0 0 11 156 11 156 99.88%
Qikiqtarjuaq 2 32 0 0 2 32 99.98%
Kimmirut 0 0 0 0 0 0 100.00%
Arctic Bay 2 79 11 68 13 147 99.89%
Clyde River 0 0 1 13 1 13 99.99%
Grise Fiord 3 121 8 52 11 173 99.87%
Sanikiluaq 0 0 13 430 13 430 99.67%
Total 7 232 73 1,595 80 1,827

Total Hours 4 27 30 99.892%
Appendix G-12

Kitikmeot region
Cambridge Bay 0 0 0 0 0 0 100.00%
Gjoa Haven 0 0 0 0 0 0 100.00%
Taloyoak 0 0 3 50 3 50 99.96%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 2 29 1 5 3 34 99.97%
Total 2 29 4 55 6 84
Kivalliq region
Rankin Inlet 1 200 0 0 0 200 99.85%
Baker Lake 0 0 4 30 0 30 99.98%
Arviat 0 0 1 45 9 115 99.91%
Coral Harbour 0 0 1 35 0 35 99.97%
Whale Cove 0 0 1 30 2 965 99.26%
Repulse Bay 0 0 0 0 0 0 100.00%
Total 1 200 9 157 14 1,635

Total Hours 3 3 27 99.822%
Qikiqtaaluk region
Iqaluit 0 0 1 28 1 28 99.98%
Pangnirtung 1 35 9 490 10 525 99.60%
Cape Dorset 0 0 2 28 2 28 99.98%
Resolute Bay 0 0 4 50 4 50 99.96%
Pond Inlet 2 137 0 0 2 137 99.90%
Igloolik 0 0 2 18 2 18 99.99%
Hall Beach 0 0 11 102 11 102 99.92%
Qikiqtarjuaq 2 65 1 16 3 81 99.94%
Kimmirut 0 0 2 26 2 26 99.98%
Arctic Bay 0 0 5 249 5 249 99.81%
Clyde River 0 0 0 0 0 0 100.00%
Grise Fiord 0 0 2 8 2 8 99.99%
Sanikiluaq 0 0 3 16 3 16 99.99%
Total 5 237 42 1,031 47 1,268

Total Hours 4 17 21 99.926%
Appendix G-13

Kitikmeot region
Cambridge Bay 0 0 4 31 4 31 99.98%
Gjoa Haven 0 0 1 45 1 45 99.97%
Taloyoak 0 0 2 38 2 38 99.97%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 0 0 0 0 0 0 100.00%
Total 0 0 7 114 7 114

Kivalliq region
Rankin Inlet 0 0 2 200 0 200 99.85%
Baker Lake 0 0 6 84 0 84 99.94%
Arviat 0 0 0 0 9 115 99.91%
Coral Harbour 0 0 3 10 0 10 99.99%
Whale Cove 0 0 0 0 2 965 99.27%
Repulse Bay 0 0 0 0 0 0 100.00%
Total 0 0 12 299 14 1,664

Total Hours 0 5 28 99.821%
Qikiqtaaluk region
Iqaluit 1 407 0 0 1 407 99.69%
Pangnirtung 4 138 5 88 9 226 99.83%
Cape Dorset 1 149 0 0 1 149 99.89%
Resolute Bay 7 253 9 592 16 845 99.36%
Pond Inlet 3 270 5 672 8 942 99.29%
Igloolik 5 157 7 135 12 292 99.78%
Hall Beach 0 0 19 3,155 19 3,155 97.62%
Qikiqtarjuaq 2 69 4 36 6 105 99.92%
Kimmirut 0 0 0 0 0 0 100.00%
Arctic Bay 1 98 4 62 5 160 99.88%
Clyde River 1 15 1 10 2 25 99.98%
Grise Fiord 1 18 1 20 2 38 99.97%
Sanikiluaq 0 0 5 114 5 114 99.91%
Total 26 1,574 60 4,884 86 6,458

Total Hours 26 81 108 99.625%
Appendix G-14

Kitikmeot region
Cambridge Bay 0 0 5 95 5 95 99.93%
Gjoa Haven 1 70 3 795 4 865 99.35%
Taloyoak 1 120 2 8 3 128 99.90%
Kugaaruk 0 0 0 0 0 0 100.00%
Kugluktuk 0 0 1 10 1 10 99.99%
Total 2 190 11 908 13 1,098

Total Hours 3 15 18 99.834%
Kivalliq region
Rankin Inlet 0 0 3 29 0 29 99.98%
Baker Lake 0 0 6 93 0 93 99.93%
Arviat 0 0 0 0 9 115 99.91%
Coral Harbour 0 0 8 55 0 55 99.96%
Whale Cove 0 0 0 0 2 965 99.27%
Repulse Bay 0 0 2 25 0 25 99.98%
Total 0 0 22 247 14 1,572

Total Hours 0 4 26 99.830%
Qikiqtaaluk region
Iqaluit 0 0 1 18 1 18 99.99%
Pangnirtung 3 131 5 46 8 177 99.87%
Cape Dorset 1 62 1 2 2 64 99.95%
Resolute Bay 1 30 3 57 4 87 99.93%
Pond Inlet 0 0 8 2,556 8 2,556 98.07%
Igloolik 1 29 3 75 4 104 99.92%
Hall Beach 1 16 13 121 14 137 99.90%
Qikiqtarjuaq 2 49 8 101 10 150 99.89%
Kimmirut 0 0 2 15 2 15 99.99%
Arctic Bay 2 165 0 0 2 165 99.88%
Clyde River 0 0 3 137 3 137 99.90%
Grise Fiord 3 175 2 1,987 5 2,162 98.37%
Sanikiluaq 0 0 4 50 4 50 99.96%
Total 14 657 53 5,165 67 5,822

Total Hours 11 86 97 99.662%
Appendix G-15

Kitikmeot region
Cambridge Bay 0 0 1 2 1 2 100.00%
Gjoa Haven 1 105 4 650 5 755 99.42%
Taloyoak 0 0 1 10 1 10 99.99%
Kugaaruk 8 550 2 6 10 556 99.57%
Kugluktuk 0 0 0 0 0 0 100.00%
Total 9 655 8 668 17 1,323

Total Hours 11 11 22 99.796%
Kivalliq region
Rankin Inlet 0 0 0 0 0 0 100.00%
Baker Lake 0 0 2 47 0 47 99.96%
Arviat 0 0 1 40 9 115 99.91%
Coral Harbour 0 0 2 7 0 7 99.99%
Whale Cove 0 0 2 30 2 965 99.26%
Repulse Bay 0 0 8 76 0 76 99.94%
Total 0 0 17 210 14 1,500

Total Hours 0 4 25 99.835%
Qikiqtaaluk region
Iqaluit 0 0 4 53 4 53 99.96%
Pangnirtung 0 0 3 24 3 24 99.98%
Cape Dorset 0 0 1 25 1 25 99.98%
Resolute Bay 0 0 26 402 26 402 99.69%
Pond Inlet 1 100 5 255 6 355 99.73%
Igloolik 0 0 5 17 5 17 99.99%
Hall Beach 0 0 6 63 6 63 99.95%
Qikiqtarjuaq 1 24 2 30 3 54 99.96%
Kimmirut 1 30 2 4 3 34 99.97%
Arctic Bay 2 99 6 53 8 152 99.88%
Clyde River 0 0 7 437 7 437 99.66%
Grise Fiord 0 0 2 31 2 31 99.98%
Sanikiluaq 0 0 7 35 7 35 99.97%
Total 5 253 76 1,429 81 1,682

Total Hours 4 24 28 99.900%
Appendix G-16
APPENDIX H
CUSTOMER COMPLAINT FORM

Appendix H
CUSTOMER COMPLAINT FORM Received by: _____________________
Qulliq Energy Corporation: Nunavut

Community: _______________________ Date Submitted: _______________________
Customer Name: _______________________ Phone: _______________________
Unit #: _______________________ Acct # _______________________
TYPE OF COMPLAINT _____ Customer Service _____ Billings
_____ Employee _____ Power
_____ Property Damage _____ Other
DETAILS:___________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
FINDINGS:__________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
ACTION TAKEN:______________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Appendix H-1

APPENDIX I
GLOSSARY OF TERMS

1 Allowance for Funds Used During Construction (AFUDC)
2 The amount a regulated entity is allowed to earn to recover its costs of financing assets
3 under construction.
4 Amortization
5 Represents the benefit the customers get each year from the use of plant and
6 equipment.
7 The benefit is calculated as a portion of the cost of the plant and equipment depending
8 on the estimated number of years that it will be of use to the customer.
9 Capacity
10 The load at which a generation unit, generation station, or other electrical apparatus is
11 rated either by the user or by the manufacturer.
12 Consumer Price Index (CPI)
13 A measure of the percentage change over time in the cost of purchasing a constant
14 “basket” of goods and services. The basket consists of items for which there are
15 continually measurable market prices, so that changes in the cost of the basket are due
16 only to price movements.
Appendix I: Glossary of Terms Page I-1

1 Commercial
2 Customer Classification for service other than Domestic or Street Lighting.
3 Corporation
4 Qulliq Energy Corporation
5 Cost of Service
6 The total cost to the Corporation of providing energy and related utility services to its
7 customers. Includes the cost of invested capital as well as operational costs.
8 Customer
9 Individual or entity that takes service from the utility. Similar customers are grouped into
10 Customer classes. Customer classes are usually differentiated from each other in terms
11 of the level and type of service they require from the utility.
12 Customer Class
13 A distinction between users of electrical energy.
14 Deferred Cost
15 Represents the benefit the customers get each year from the use of non-tangible assets
16 that have a future benefit in excess of one year and are recorded as a capital asset.

1 Degree- Day
2 A unit measuring the extent to which the outdoor mean daily temperature falls below or
3 rises above an assumed base. The base is normally taken at 18°C for heating and
4 cooling unless otherwise designated. One degree-day is counted for each degree of
5 deficiency below (for heating) or excess over (for cooling) the assumed base, for each
6 calendar day on which such deficiency or excess occurs.
7 Demand
8 The rate at which electric energy is delivered to or by a system, part of a system or a
9 piece of equipment; expressed in kilowatts, kilovolt-amperes, or other suitable unit at a
10 given instant or averages over any designated period of time. The primary source of
11 demand is the power-consuming equipment of the customers.
12 Demand Side Management (DSM)
13 Techniques designed to be used by the customer to reduce their consumption of
14 energy.
15 Distribution
16 The act or process of distributing electric energy from convenient points on the
17 transmission or bulk power system to the consumers.
18 Domestic
19 Single family residences or an individual apartment where electrical service is provided

1 through one meter, provided that the residence or apartment is not used for Commercial
2 purposes.
3 Efficiency
4 Engine efficiency; the amount of kilowatt-hours produced per litre of fuel.
5 Energy
6 a) Electricity;
7 b) Heat which is supplied through a district heating system by hot water, hot air or
8 steam; manufactured gas, liquefied petroleum gas, natural gas, oil or any other
9 combustible material which is supplied through a pipeline or any other distribution
10 system directly to a customer; or
11 c) Any prescribed matter pursuant to a regulation under the Qulliq Energy Act.
12 Energy Consumption
13 Use of electrical energy over time, typically measured in kilowatt-hours.
14 Equity
15 The portion of the Corporation's total capital contributed by the owner, as distinct from
16 borrowed capital, and normally represented by shares and retained earnings of the
17 Corporation.

1 FERC
2 Federal Energy Regulatory Commission
3 Fixed Asset
4 Tangible property used in the operations of regulated business, but not expected to be
5 consumed or converted into cash in the ordinary course of business.
6 Generation
7 This term refers to the act or process of transforming other forms of energy into electric
8 energy, or to the amount of electric energy so produced, expressed in kilowatt-hours
9 (kWh).
11 Represents the accounting cost of all regulated assets current used in ordinary course
12 of business.
13 Heating Degree Day (HDD)
14 A unit measuring the extent to which an outdoor dry-bulb temperature falls below an
15 assumed base (18°C). One HDD is counted for each degree of deficiency below the
16 assumed base, for each calendar day on which such a deficiency occurs.

1 Kilowatt (kW)
2 The measure of electrical capacity required by the customer at any instantaneous
3 moment. The kWh equates to power. One kilowatt equals 1,000 watts. One megawatt
4 (MW) equals 1,000 kWs.
5 Kilowatt-hour (kWh)
6 Basic unit of electric energy equal to one kilowatt of power supplied to or taken from an
7 electric circuit steadily for one hour.
8 Line Losses
9 Kilowatt-hours and kilowatts lost in transmission and distribution lines under specified
10 conditions.
11 Load
12 The amount of electric power delivered or required at any specific point or points on a
13 system. Load originates primarily at the power-consuming equipment of customers.
14 Load Forecast
15 An estimate of electrical demand or energy consumption at some future time.
16 Losses
17 Refers to the energy that is lost through transformation, transmission, and distribution.

1 Maintenance Expense
2 Direct and indirect expenses including labour, material and others incurred for
3 preserving the operation efficiency or physical condition of the utility plant used for
4 power production, transmission and distribution of energy, and administrative and
5 general operations.
6 O&M
7 Operating and Maintenance
8 Operating Expenses
9 Direct and indirect expenses, including labour, materials and others, incurred in the
10 production of electricity.
11 Outage
12 The period during which a generation unit, transmission line, or other facility is out of
13 service.
14 a) Unplanned Outage - The shutting down of a generating unit, transmission line, or
15 other facility, for emergency reasons; and
16 b) Planned Outage - The shutting down of a generating unit, transmission line; or other
17 facility, for inspection or maintenance in accordance with an advance schedule.
18 Plant
19 Means a facility or facilities for the generation, transmission, transformation, distribution,

1 delivery, supply or control of energy or for the distribution, delivery or supply of water
2 and sewerage services and includes the site of the facility or facilities, and all land,
3 water, rights to use water, buildings, works, machinery, installations, materials,
4 transmission lines, distribution lines, pipelines, furnishings and equipment, plant in
5 construction, stores and supplies acquired, constructed or used or adapted for or in
6 connection with the facility or facilities.
7 Power
8 The rate of generating, transferring, or use of electric energy, with respect to time,
9 usually expressed in kilowatts (kW).
10 PPD
11 Petroleum Products Division of the Government of the Northwest Territories.
12 Rate Base
13 The property of the Corporation used or required to be used to provide service to the
14 public within Nunavut.
15 Rate Hearing
16 The procedural process used by a regulatory authority so that a utility company may
17 present and justify its need for rate changes.

1 Rate of Return on Equity
2 An amount equal to the rate of return on equity earned by other utilities in situations of
3 similar risk to that of the Corporation.
4 Rates
5 The prices at which regulated services are provided.
6 Regulated
7 Aspects of the Corporation’s business subject to regulatory (PUB) approval.
8 Residual Heating System
9 Residual heat recovery involves capturing some of the excess heat from the diesel
10 engines.
11 Revenue Requirement
12 The revenue level necessary to meet the cost of providing service to the utility’s
13 customer.
14 RFID
15 Reserve for Injuries and Damages.
16 Station Service
17 The electric energy used by the Corporation in the course of business.

1 Transmission
2 The act or process of transferring electric energy in bulk from the point of generation to
3 the point of transformation for distribution.
4 URRC
5 Utility Rates Review Council

Qulliq Energy Corp., General Rate Application 2010

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Qulliq Energy Corp., General Rate Application 2010

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QULLIQ ENERGY CORPORATION

1.0 CORPORATE OVERVIEW .................................................................................. 1-1

3.7 ACCOUNTING CHANGES ................................................................................... 3-15

6.2.22 Customer Complaints ..................................................................................... 6-20

APPENDIX – A: SUMMARY OF GENERATION, SALES AND REVENUE

1 1.0 CORPORATE OVERVIEW

5 the Corporation today and in the future:

6  Overview of the Corporation

7  Challenges and Opportunities facing the Corporation

8  Measures Taken to mitigate Impacts on Customers

9 1.2 OVERVIEW OF THE CORPORATION

11 to communities in the Nunavut Territory. Renamed Qulliq Energy Corporation in 2003,

12 the Corporation is 100% owned by the Government of Nunavut.

17  Nunavut Power generates and supplies electricity; and

18  Qulliq Energy provided core services to the corporate functions.

Chapter 1: Corporate Overview Page 1-1

4 approximately 12,800 electricity customers. The Corporation generates and distributes

5 electricity to Nunavummiut through the operation of 27 diesel plants in 25 stand alone

6 communities having generating capacities ranging from 15MW at Iqaluit to 400KW at

9 headquarters in Baker Lake and executive offices in Iqaluit.

10 1.3 CHALLENGES AND OPPORTUNITIES FACING THE CORPORATION

11 The Corporation’s systems serve a population of approximately 33,000 located in an

13 each must be planned for and operated independently.

14 The Corporation exists in a unique operating environment. Extremely low customer

18 the Corporation’s operations throughout its service area.

19 1.4 MEASURES TAKEN TO MITIGATE IMPACTS ON CUSTOMERS

Chapter 1: Corporate Overview Page 1-2

5 worked to reduce energy use through a public outreach program on energy

6 management, efficiency, conservation, and technology deployment; NEC also provided

8 Programs that QEC engaged in through NEC include the following:

10 Energy Advisors and obtained certification to conduct home energy evaluations.

11 NEC staff performed numerous evaluations throughout Nunavut for homeowners

12 interested in improving the energy efficiency of their homes. Once completed,

13 these evaluations allowed homeowners the opportunity to access Federal rebate

15 four participants received the training required to become certified Energy

17  Public Information Campaign: A broad Public Information Campaign was

18 delivered throughout Nunavut with both general and specific information on

19 energy use and conservation. It included advertising through the media,

20 community consultations and brochure distribution. A great deal of effort was

Chapter 1: Corporate Overview Page 1-3

1  Community Energy Profile Development: NEC developed and distributed

2 energy profiles to all 25 Nunavut communities. A Community Energy Profile

4 fuels a community uses to produce energy; how much money a community

9 Profile is a useful tool for communities to engage in community energy planning.

10 NEC drafted a guide for the communities to assist them in developing

11 Community Energy Plans.

12 In 2009, the Government of Nunavut mandated a collective approach to a more cost

17 resources to the GN Energy Secretariat and has a representative participating on the

18 GN Interdepartmental Energy Working Group.

19 1.5 RATE PROPOSAL SUMMARY

22 requirement described in Chapter 3 and the shortfall described in Chapter 4. QEC is

Chapter 1: Corporate Overview Page 1-4

2 the demand charges or customer charges.

7 proposed interim rates are summarised in Schedules 1.3.1 through 1.3.5.

Chapter 1: Corporate Overview Page 1-5

A+B D+E F-C G/C

Chapter 1: Corporate Overview Page 1-6

A+B D+E F-C G/C

Chapter 1: Corporate Overview Page 1-7

Chapter 1: Corporate Overview Page 1-8

Chapter 1: Corporate Overview Page 1-9

B/A E/D H/G K/J N/M

Chapter 1: Corporate Overview Page 1-10

Plant Domestic Commercial Streetlights Total Sales