Empowering remote communities.

What began as a vision has now become a reality for three communities along the James Bay Coast.

Five Nations Energy Inc. (FNEI), a federally incorporated non-profit corporation, is the only Aboriginal-owned licensed regulated transmission company of the four that exist in Ontario. It is celebrating five years of its transmission lines in operation, providing reliable electricity from Moosonee to Fort Albany, Kashechewan, and Attawapiskat in the Far North.

Company president Mike Metatawabin recalled the idea as "far-fetched" when he first heard Chief Ignace Gull make the motion to carry out a project that would bring 115 kilovolt (kV) transmissions lines through 270 kilometres of muskeg.

"I never imagined the magnitude of the project until I began to witness it as it progressed when it was being constructed," says Metatawabin, who was chief of Fort Albany at the time.

Prior to the communities' connection to the provincial grid, they relied on diesel-generated power, described as unreliable, inefficient and at its maximum capacity. Now, they are reaping the benefits of cleaner air, economic development such as new residential subdivisions, schools and recreational facilities, as well as improved quality of life with a reliable supply of running water and heat source.

Project co-ordinator Ed Chilton says the proponents of the project were the chiefs of the communities, who were also the members on the board of directors. In 1997, FNEI became incorporated.

"It seemed the only way to allow the communities to grow and have sufficient electricity was to get off diesel where we weren't tied into the budgets of governments," Chilton says. "We did an energy study, and it showed the best way was to be connected to the transmission grid."

The project was also expected to save the federal and provincial governments a minimum of $150 to $200 million over an accounting life, according to a 2001 press release.

After convincing the government the merits of the project, financing became the greatest challenge. Applying for a loan as a new transmission company while the provincial government was restructuring Ontario Hydro increased those challenges. However, in the end, the federal government funded a portion of the project through Indian and Northern Affairs Canada, and the remainder of the financing was done through the Bank of Montreal, Pacific Western Capital and the Northern Ontario Heritage Fund Corporation. Chilton says they also sold some of their assets to Hydro One Networks, a transmission line company, to complete the financing.

In 2000, the $63 million project was contracted out to SNC-Lavalin Group Inc., an engineering and construction firm, and Powertel, a utility contract company from Whitefish. By the fall of 2001, Fort Albany was connected. By December of that same year, Kashechewan became part of the grid, and in December 2003, Attawapiskat became connected. The majority of the construction work was done in winter due to the nature of the land which was laden with swamp and muskeg. It was well timed for De Beers Canada Inc. as they built and connected their own transmission line from the Victor mine site to FNEI's substation in Attawapiskat. In order to have enough capacity once the mine is fully operational and avoid depleting future capacity for the communities, the Independent Electricity System Operators (IESO) directed the diamond company to twin the existing lines (add another 115 kV line) from the hydroelectric generation station in Otter Rapids (124 km south of Moosonee) up through Moosonee and on to Kashechewan.

Like the other transmission companies, FNEI is regulated through the Ontario Energy Board and receives its revenues via the IESO. The company currently has three full-time employees who have been working on capital upgrades to improve the facilities. This involves a $9 million investment in the installation of fibre optic cable, so they can monitor the substations and increase the reliability of service. At the same time, Chilton says there is an opportunity for others to improve the local network system whereby the communities can utilize the extra capacity on the cable and open the door to access modern telecommunications.

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"The Mushkegowuk Council is devising a business plan as to how to undertake that. It will be forthcoming in the next couple of years."

Other upgrades are preparing spare transformers to be ready and energized should one of the current transformers malfunction.

"We are bringing up our standards to the same level of standards that others (other companies) have in this province."

Considered a milestone for the Five Nations' chiefs and people that brought the project to fruition, Metatawabin says it is an example of a successful venture, showing that they are capable of managing their own affairs.

"I would like to remind people that you have an asset and it's very successful," he says. "Embrace it."

www.fivenations.ca

By ADELLE LARMOUR

Northern Ontario Business