Thank you, Mr. Marchi.
It's a pleasure to be here today. ATCO is a proud member of CEA and has a long history in the north.
As mentioned by Mr. Marchi, ATCO and the three northern utility Crown corporations were actively involved in advancing the recommendations that Mr. Marchi just spoke to. ATCO is in complete agreement with the recommendations.
Our operations in the north face some challenges similar to what you've already heard here today. Our customer base is dispersed in small communities spread over a vast land base. We lack the industrial customers needed as anchor tenants for new electrical projects. Despite these challenges, we firmly believe that Canada's north deserves a better sustainable energy future.
To deliver this in the best possible way, and to better serve our customers who rely on us to heat their homes, power their businesses and move the economy forward in the north, we need to harness our collective strengths and collaborate for the benefit of all. From investor-owned utilities to Crown corporations, indigenous communities and all levels of government, now is the time to work together collaboratively to provide affordable, reliable and safe renewable energy sources to meet the needs of northerners.
ATCO serves several communities in Yukon and the Northwest Territories that rely solely on diesel generation for their electricity. We are working with the local indigenous communities, creating sincere, respectful and mutually beneficial partnerships that would see them as the owners and operators of local renewable energy generation projects that sell power back to the utility at the avoided cost of running our diesel facilities. But to ensure no increased cost to utility customers over the life of the project, financial support from government is critical.
This model is yielding positive results in Yukon. For example, ATCO and the Vuntut Gwitchin First Nation in Old Crow have executed an electricity purchase agreement for their solar project in the community of Old Crow. ATCO is also in advanced negotiations for an energy purchase agreement with the Kluane First Nation for their wind project in Burwash Landing. Work is also advancing in other communities served by diesel generation, including the development of transmission interconnection to existing hydroelectric generation for Fort Providence and Kakisa in the Northwest Territories.
ATCO is a strong advocate of the development of the vast hydroelectric potential in the north and the resulting transmission interconnections, both to power the region and to develop an export market to help reduce the use of thermal generation in southern Canada. It is our belief that this work will ultimately assist in reducing the cost of electricity in the north; but again, it requires true partnerships. Trust is the key and critical foundation to any lasting partnership, between not only indigenous communities and investor-owned utilities but with all partners involved, including Crown corporations and government. This requires patience, understanding, meaningful dialogue and the will to do the right thing, whereby all parties win.
We have a lot of work ahead of us. By fostering collaborative partnerships, we can face any challenge and be successful. We can show the many locations around the world that have similar weather and population densities how these challenges can be overcome, and we can do that together.
Thank you.