FAQ

What is the mandate of FNPA?

Facilitate First Nation Members’ involvement in the Power Generation Industry through the development of unique industry partnerships and enhanced procurement pathways.

What is unique about FNPA?

FNPA, a voluntary member-based organization, has a direct and ongoing working relationship with SaskPower for the specific purpose of developing First Nations-led power generation projects in Saskatchewan. FNPA is a first of its kind organization in Saskatchewan and across Canada, established for the specific purpose of facilitating opportunities for First Nations directly with the electricity purchaser. FNPA is positioned to produce optimal results for its stakeholders due to its input to the future supply planning process, access to information and a negotiated procurement process to advance First Nations-led power generation projects in Saskatchewan. Through FNPA, all First Nations, regardless of their experience with power project development, will have the same access to support.

Why is FNPA required?

The Saskatchewan Government wants to engage First Nations in the economic future of this province, but SaskPower does not have the resources or the mandate to support First Nations in the development of power projects in a manner that maximizes economic development objectives and ensures fair and equitable decision-making. As a result, First Nations that invest in power development projects face a number of obstacles, scrutiny and debate when negotiating a power purchase agreement.

FNPA provides First Nations with an effective foundation for SaskPower to engage with them in power development, reducing capital costs associated with building internal assets and ensuring a substantial long-term source of new power generation designed to align with SaskPower’s strategic power requirements.

Why is it Important to have First Nations involved in power production?

Many power project developments occur in the remote lands and traditional territories of First Nations. By working with the power developers, First Nations can create real value for their members through employment, infrastructure, new business opportunities, and genuine profit sharing.

How does my First Nation participate?

Saskatchewan First Nations interested in power generation opportunities will have the ability to hold membership in First Nations Power Authority.

First Nations developing a power generation project will be responsible for the design and development of their project and must ensure that the proposed generation solution is aligned with SaskPower’s strategic plan. FNPA will assist First Nations developing power generation projects and will provide knowledge, expertise, and contacts to First Nations and SaskPower in the development of power projects.

All power generation projects must be technically and economically viable, meet good performance standards and have acceptable environmental attributes. All projects must also meet SaskPower supply needs.

Does FNPA finance power development?

No. Project financing will be the sole responsibility of the power developer. A fund may be available in the future that would allow First Nations to access early-stage development funding to study and advance their projects.

How will FNPA assist in developing my power project?

FNPA has worked extensively with SaskPower to establish a Master Agreement, a framework that represents a legally binding commitment by SaskPower to procure power from First Nations-led independent power producers.

Now that this framework is developed, FNPA will serve to facilitate project development and relationship building for SaskPower and the First Nations-led power producers by providing current strategic procurement plan and requirements information and assisting First Nations in their work towards establishing First Nations Opportunity Agreements and, eventually, Power Purchase Agreements.

What does the Master Agreement give FNPA and its members?

The following is a summary of what the Master Agreement gives to FNPA and its members:

• SaskPower has declared its interest in procuring economically feasible electric power from First Nation generation projects that meet SaskPower’s supply development plans;
• FNPA has been formed to provide a unique point of contact with SaskPower and for First Nations to advance independent power generation projects;
• The Master Agreement is a legal, valid, and binding obligation that represents a ten-year commitment to working with FNPA;
• SaskPower and FNPA agree to collaborate to define mutually agreeable opportunities and work together to identify potential opportunities for First Nation Projects;
• FNPA has been given the role and responsibility of providing the required expertise to:
• Support the identification and screening of opportunities for First Nation Projects;
• Establish support mechanisms to facilitate First Nations achieving the greatest success in terms of risk mitigation, greater financial benefits and achievement of long-term economic development objectives;
• The process has been defined for developing First Nation project opportunities. An agreement between SaskPower and FNPA with respect to an opportunity for an Eligible First Nation Project will be effected through a First Nation Opportunity Agreement (FNOA). FNOA’s may include an allocation of portions of SaskPower’s renewable and non-renewable generation requirements to Eligible First Nation Projects;
• Shared communications and media output will increase FNPA exposure, attracting a greater number of potential members and assisting in FNPA’s long-term success.
• Unsolicited Proposal Process (UPP): SaskPower has an internal evaluation process for evaluating unsolicited proposals received from potential power developers. The FNPA UPP provides a unique service that requires SaskPower to respond in a matter of weeks or months – depending on the proposal stage.
• The Master Agreement also provides FNPA the opportunity to further negotiate and develop a number of future opportunities. These opportunities, if realized, represent a significant economic impact.

Who will operate First Nation-led independent power projects?

First Nation-led independent power projects will be operated by experienced power developers who have demonstrated a successful track record in power development and have met SaskPower’s technical and financial requirements.

Will FNPA assist in finding development partners?

Yes, FNPA is continually meeting and developing connections within the power industry and will strive to bring forth the best in class development partners for FNPA Members.

Does the FNPA represent deregulation or privatization of Saskatchewan’s power industry?

No. The SaskPower Act of Saskatchewan will remain fully intact and enforceable under this power arrangement with SaskPower remaining as the provincial crown corporation and utility company. Procurement of power through FNPA will be similar to the procurement of independent power projects currently contracted by SaskPower across the province today and projects will continue to be subject to technical, environmental and economic scrutiny by SaskPower.

If I’m not a First Nation, can I participate?

Any non-First Nation entity is welcome to partner with a First Nation to develop a viable power generation project. The location and type of generation is important when considering which First Nation to approach and under what commercial arrangement. FNPA will provide information and support to groups entering into discussions with First Nations and will work towards implementing a process to assist in the development of relationships between the Aboriginal peoples of Saskatchewan and SaskPower.