THUNDER BAY, ON - July 7, 2009 – The Ontario Energy Board (OEB) has approved an increase in the
local delivery charge for Thunder Bay Hydro customers. The decision will raise the
Monthly Delivery Charge line of the bill by 76¢ or 3%. This has an impact of 0.69% on
the total bill paid by a residential customer using 1000 kWh per month.

As communicated previously, this increase in the distribution rates is necessary to allow
the utility to move forward with the rebuilding of Thunder Bay Hydro’s aging distribution
system to ensure a safe and reliable supply of electricity for our customers; the
recruitment of the next generation of skilled trades people; and to comply with the
government mandated installation of smart meters.

• Thunder Bay Hydro’s investment to replace and refurbish the electricity distribution
system is approximately $1.1 million more than in 2008 for a total of $4.1 million in
2009.

• Up to 50% of the utility’s skilled trades people are eligible to retire within a ten year
timeframe. Because it takes five years to complete an apprenticeship, hiring has
begun in order to transfer the knowledge and skills of the experienced workforce to
the new apprentices.

• The provincial Smart Meter Initiative has set $ 8.2 million in capital expenditures in
motion for installation of the new system. Over 35% of installations have been
completed to date.

Included in the OEB rate order, is an increase in the provincial transmission charge
delivery portion of the bill. This amount is collected by Thunder Bay Hydro and passed
through with no markup. This will result in an increase of $2.19 per month on a 1000
KWh per month residential bill.

A business customer consuming 2000 kWh each month will see a delivery charge
increase of $5.81 each month.

The new rates are effective May 1, 2009. Customers will see the impact of these
changes beginning with billing that takes place in the later part of July.