ANNUAL REPORT 2024-2025 www.qec.nu.ca

Annual Report 24-25 2 TABLE OF CONTENTS Letter of Transmittal ___________________________________________________________ 3 Chairperson’s Message _______________________________________________________ 4 President | CEO Message _____________________________________________________ 5 Corporate Overview __________________________________________________________ 7 Organizational Structure ______________________________________________________ 8 Board of Directors _____________________________________________________________ 9 Board Committees ___________________________________________________________ 13 The Revised Strategic Direction _______________________________________________ 14 QEC Highlights 2024-2025 _____________________________________________________ 21 Outlook for 2025-2026 ________________________________________________________ 23 Team Highlights ______________________________________________________________ 24 Corporate Affairs _________________________________________________________ 24 Operations & Engineering _________________________________________________ 28 Health Safety & Environment ______________________________________________ 42 Human Resources ________________________________________________________ 46 Information Technology ___________________________________________________ 52 Finance __________________________________________________________________ 54 Financial Statements _________________________________________________________ 59

Annual Report 24-25 3 LETTER OF TRANSMITTAL 243 Umiaq Crescent, Iqaluit, Nunavut, X0A 2H0 October 10, 2025 Honourable John Main Minister responsible for Qulliq Energy Corporation Legislative Assembly of Nunavut 926 Queen Elizabeth II Way PO Box 2410 Iqaluit, Nunavut X0A 0H0 Dear Minister Main: In accordance with

Section 100(1) of the Financial Administration Act, I hereby submit on behalf of the Board of Directors of Qulliq Energy Corporation the 24th Annual Report for the fiscal year ending March 31, 2025. Respectfully submitted, Keith Peterson Chairperson Board of Directors Qulliq Energy Corporation

Annual Report 24-25 4 CHAIRPERSON’S MESSAGE On behalf of the Board of Directors, I am pleased to present Qulliq Energy Corporation’s 2024–25 Annual Report. Over the past year, QEC continued to make steady progress toward delivering reliable, affordable, and increasingly sustainable energy across Nunavut. This work would not be possible without the commitment of our employees. Their professionalism, skill, and dedication ensure that communities have access to energy in all conditions. We also remain focused on strengthening QEC as a safe, respectful, and supportive workplace for all staff.

Several key projects advanced this year. Contracts were awarded for new power plants in Cambridge Bay, Gjoa Haven, and Igloolik. Equipment upgrades and genset replacements improved system reliability in communities with growing energy needs. At the same time, our renewable energy programs expanded, helping reduce diesel reliance and deliver long-term value to Nunavummiut. We also continued to build strong relationships with employees, community members, and partners. One example is the upcoming Ikajuuti Initiative, which will provide Elders and Seniors with energy- saving LED light bulbs and conservation tips.

Initiatives like this support energy literacy while helping us connect with the people we serve. To guide our path forward, QEC introduced a renewed strategic direction: Elevate, Energize, and Evolve. These pillars reflect our focus on people, innovation, and adaptability: three areas that will shape our work in the years ahead. As we look to the future, we know that challenges remain, but we are well positioned to address them.

With strong leadership, meaningful community engagement, and a continued focus on sustainability, QEC will continue to meet Nunavut’s energy needs and support a more resilient future for the territory. Sincerely, Keith Peterson Chair, Board of Directors Qulliq Energy Corporation Keith Peterson Chair, Board of Directors

Annual Report 24-25 5 PRESIDENT | CEO MESSAGE At Qulliq Energy Corporation, our people are our greatest strength. In 2024–25, we continued to elevate our employees by investing in training, wellness, and leadership development. From technical certification programs to the launch of QEC Connect, our first all-staff townhall series, every initiative this year has been focused on creating a safe, inclusive, and supportive workplace where our team can thrive. Safety remains at the heart of everything we do.

We are committed to strengthening a culture where every employee feels empowered to stop work if unsafe, and where training and accountability ensure that everyone goes home safe at the end of the day. This was also a year of significant operational progress. We achieved a territory-wide reliability rate of 99.92%, advanced design and construction for new power plants in Cambridge Bay, Gjoa Haven, and Igloolik, and completed major genset replacements in Iqaluit and Rankin Inlet.

We also invested in modern systems, such as a new Computerized Maintenance Management System, SCADA upgrades, and GIS mapping tools, that strengthen our ability to deliver dependable service in the most challenging conditions. At the same time, QEC made strides in shaping Nunavut’s clean energy future. Our dedicated Renewable Energy team advanced Independent Power Producer (IPP) program and expanded participation in the Commercial and Institutional Power Producer (CIPP) program.

These efforts are part of a larger shift to evolve our energy systems, reducing diesel reliance while ensuring projects reflect the voices and priorities of the communities they serve. We also deepened community connections, with the planning of the Ikajuuti Program, supporting Elders and Seniors with energy- efficient lighting and conservation tools launching in the fall of 2025. Through scholarships, sponsorships, and community initiatives like Community cleanups, we reaffirmed our role as a partner in building a stronger, healthier Nunavut. Looking ahead, energizing our operations remains critical.

The coming year will see construction move forward on four new power plants, further genset replacements, and expanded community-led renewable energy projects. Guided by our strategic pillars, Elevate, Energize, and Evolve, we Ernest Douglas President / CEO

Annual Report 24-25 6 will continue to modernize infrastructure, support our workforce, and strengthen community engagement. I am proud of what our team has accomplished together and grateful for the trust placed in us by Nunavummiut. QEC’s journey is one of resilience and transformation, and with the dedication of our employees and partners, we are building an energy future that is reliable, sustainable, and deeply rooted in the communities we serve. Sincerely, Ernest Douglas President & CEO

Annual Report 24-25 7 CORPORATE OVERVIEW Qulliq Energy Corporation is a territorial corporation owned by the Government of Nunavut (GN). The corporation was originally established in 2001 as the Nunavut Power Corporation under the Nunavut Power Utilities Act and subsequently renamed Qulliq Energy Corporation (QEC) in 2003. The Nunavut Power Utilities Act was also renamed the QEC Act as the result of legislation passed in March of 2003, which broadened the corporation’s mandate to respond to a range of energy use and conservation issues within Nunavut.

In 2018, the QEC Act was further amended, allowing the corporation to purchase power in anticipation of launching the Commercial and Institutional Power Producer (CIPP) and Independent Power Producer (IPP) programs. QEC delivers electricity to approximately 16,000 customers across Nunavut. QEC generates and distributes power to Nunavummiut through the operation of 25 stand-alone diesel power plants in 25 communities, with a total installed capacity of approximately 84,000 kilowatts.

The corporation also provides mechanical, electrical and power line maintenance from three regional centers: Iqaluit, Rankin Inlet and Cambridge Bay. The corporation’s business activities are maintained at the head office in Baker Lake and corporate offices in Iqaluit. QEC attends to the overall objectives provided by legislation, supports the Minister responsible for QEC on intergovernmental and regulatory issues, has the mandate to manage the corporation’s capital projects, and responds to opportunities for alternative generation sources.

All electricity needs in Nunavut are predominantly met by diesel generation. Through the implementation of the Net Metering, Commercial and Institutional Power Producer, and Independent Power Producer programs, QEC has begun integrating renewable energy systems into the territory’s electricity grid. Each community in Nunavut has its own independent electricity generation and distribution system. There is no back-up grid. QEC is the only energy corporation in Canada without developed local renewable energy resources or regional electricity transmission capability, creating high dependency on diesel fuel.

Annual Report 24-25 8 ORGANIZATIONAL STRUCTURE Minister Responsible for QEC Board of Directors President | CEO VP Operations & Engineering Director, Operations Director, Engineering VP Corporate Services Director, Information Technology Director, Human Resources Director, Corporate Affairs CFO VP Finance Internal Auditor Executive Services CoordinatorLegal Counsel

Annual Report 24-25 9 BOARD OF DIRECTORS QEC’s Board of Directors is appointed by the Minister responsible for QEC. Under the QEC Act, the Board of Directors must be composed of no fewer than six directors, and no more than ten directors. The appointment terms for board members are staggered and are for up to three years. This ensures the corporation maintains business continuity and allows for growth in experience and knowledge. Members for the corporation’s Board of Directors will be appointed by fall 2025, pending cabinet approval.

As of March 31, 2025, current members include: Keith Peterson, Chairperson Keith Peterson is a former cabinet minister in the GN and a Member of the Legislative Assembly (MLA) representing Cambridge Bay. He was responsible for the portfolios of Finance, Justice, and Health and served as the Minister responsible for QEC. Mr. Peterson was the Mayor of Cambridge Bay for two terms and has held various positions with other public and Inuit organization boards. He has considerable experience in leading government departments, territorial corporations, board governance and community relations.

Andrew Nakashuk, Vice Chair Andrew Nakashuk has been an active member of committees, organizations, and boards for many years within Pangnirtung, the Baffin region, and across Nunavut. He is currently chairperson on the Nunavut Planning Commission, facilitating community consultations and planning meetings. Mr. Nakashuk has extensive experience with the land, serving as conservation and fishery officer, bear monitor, and interpretive guide. He has completed training in response to environmental emergencies, search and rescue management training, and various courses through the RCMP. Mr.

Nakashuk resides in Pangnirtung. Johnny Mike Johnny Mike is a former MLA for Pangnirtung and has over 30 years of experience in business, government, and management roles throughout the territory. Mr. Mike was heavily involved in the Inuit land selection negotiations for South Baffin communities during Nunavut’s Land Claim Agreement process. As a former employee of the Northern Canada Power Commission, President and CEO of Qikiqtaaluk Corporation and NCC Investment Group, board member of QEC, and Minister responsible for QEC, Mr. Mike has a strong understanding of QEC’s operations and governance.

He is currently a board member for Pangnirtung Hunters and Trappers Organization. Mr. Mike is a Red Seal certified mechanic and resides in Pangnirtung.

Annual Report 24-25 10 Clarence Synard Clarence Synard has spent over 26 years working in the North. He is currently the President & CEO of NCC Investment Group. In his multiple roles with NCC over the years, he has actively fostered strong relationships throughout the territory and focused on the health and safety of colleagues and employees. An active member of the community, Mr. Synard is a former President of the Baffin Regional Chamber of Commerce, Vice President of the Board for Skills Nunavut, and a member of the Government of Nunavut’s Building Advisory Committee.

He received his Red Seal Journey Certificate (Carpentry) from the College of the North Atlantic. Mr. Synard resides in Iqaluit. Nayab Khan Nayab Khan is currently the Chief Financial Officer for Nunavut Arctic College. She has worked in numerous financial roles throughout her career, most recently with Nunavut Housing Corporation where she was a District Comptroller. Ms. Khan is a Certified Management Accountant and has a specialization in forensic accounting.

She graduated with a Bachelor of Science in Mathematics and Economics from the University of Peshawar and has a Master of Public Administration from Flinders University. Ms. Khan resides in Iqaluit. Maya Jelali Maya Jelali is a dynamic leader with over eight years of experience in human resources, project management, policy development, and stakeholder engagement. She is PMP- certified and has worked across various sectors, including government, Inuit-owned organizations, and for-profit companies, combining creativity and practicality for sustainable outcomes.

Maya has a strong background in building processes that enhance operational efficiency and increase organizational capacity, and she has lived in Iqaluit since 2014, bringing extensive knowledge of Inuit communities. Currently serving as the acting Director of Policy, Planning & Communications at the Government of Nunavut's Department of Family Services, Maya leads policy development, strategic planning, and communication efforts. She also has significant experience in developing training programs that address the needs of adult learners and meet organizational objectives.

Maya holds a Master of Public Policy and Administration from Carleton University and a Master of Social Work from the University of Ottawa. She is actively involved in community initiatives, serving on boards such as the Qulliq Energy Corporation and Les Petits Nanooks, and has recently founded the Iqaluit Kids Club, a non-profit aimed at supporting and strengthening young families in Iqaluit by providing inclusive and engaging programs.

Annual Report 24-25 11 Alexander Cook Alex Cook resides in Baker Lake, and an alumnus of St. Francis Xavier University, where he holds a Bachelor of Business Administration majoring in Leadership and Management. Mr. Cook began his career at the Qulliq Energy Corporation as a summer student, steadily rising through the corporation into a senior management role, reflecting his dedication and understanding of the Corporation’s mandate, vision, and goals. In his current role, Mr.

Cook holds the presidency of ArchTech, an exclusively Indigenous owned and operated design- build firm at the forefront of developing affordable, efficient, and resilient net-zero buildings in Nunavut. In addition to his corporate engagements, Mr. Cook serves on the Indigenous Council and Governing Board for Wah-Ila-Toos, a federal entity overseeing over $400M in federal funding allocated for indigenous clean energy projects nationwide.

His dedication to fostering clean energy solutions is further evidenced in his role as the Energy Champion for Baker Lake, a position appointed through the federal government’s Indigenous Off-Diesel Initiative. Moreover, he lends his expertise to the Indigenous Clean Energy social enterprise as a member of the advisory board. Mr. Cook is excited to serve on the QEC Board of Directors where he hopes to leverage his knowledge, skills, and experience to assist in guiding the strategic direction of the Corporation.

Jeannie Ehaloak Jeannie Ehaloak is a former MLA and Mayor of Cambridge Bay with extensive knowledge, experience, and accountability for the implementation of corporate policies, programs and projects. She worked effectively in consultation and strengthened communications with community members during her tenure as Mayor, MLA and Minister.

Jeannie has acquired a greater understanding and appreciation for government policies and procedures in her roles as a Member of the Legislative Assembly, specifically as Minister of Justice, Human Rights, Labor, Democratic Institutions, Status of Women, Qulliq Energy Corporation, Environment and Community and Government Services. While serving as QEC’s Minister, she gained a unique understanding of QEC’s operations and governance procedures. Jeannie is a resident of Cambridge Bay. Martha Lenio Martha Lenio brings insight into the global renewable energy economy to QEC’s Board of Directors.

As a renewable energy specialist with the World Wildlife Fund Canada, Dr. Lenio’s knowledge of renewable energy technologies and power solutions incorporates the arctic environment in which QEC serves. Her ten years of extensive international experience with solar power applications is complemented by her Doctor of Philosophy in Photovoltaic Engineering from the University of New South Wales, and a Bachelor of Applied Science from the University of Waterloo. Dr. Lenio lives in Iqaluit.

Annual Report 24-25 12 Robin Anawak Robin is a Senior Program Specialist with the Government of Nunavut’s Department of Family Services, leading policy and legislative initiatives. With over twenty years of experience in government, Inuit organizations, and politics, he brings extensive expertise in policy development, legislative analysis and intergovernmental collaboration. A graduate of the University of Ottawa’s Law program, Carleton University’s Political Science program, and the Nunavut Sivuniksavut program, Robin is committed to strengthening Inuit voices in governance and advancing the social and economic well-being of Nunavut.

Annual Report 24-25 13 BOARD COMMITTEES Human Resources Committee The Human Resources and Inuit Qaujimajatuqangit (IQ) Committee provides recommendations relating to the corporation’s organizational workforce. The committee reviews human resources and compensation and benefits matters pertaining to all QEC employees. In addition, the committee evaluates programs and initiatives related to Inuit employment, training and development, employee and labour relation environments, implementation of collective agreements, and initiatives aimed to improve the capability and capacity of employee performance results.

Finance and Audit Committee The Finance and Audit Committee assists the board in meeting its oversight and financial responsibilities and accountabilities to the corporation, stakeholders, the Government of Nunavut, and customers. The committee facilitates communication between the board and the external auditor and is the presiding body related to the activities of the internal auditor. Alternative Energy Committee The Alternative Energy Committee provides recommendations to the board regarding the viability of alternative or renewable energy technologies in the North.

The committee also provides input on financing options and financing sources for development, demonstration projects, research initiatives, collaboration opportunities, and supportive and overlapping mandates of other organizations. Governance Committee The Governance Committee’s primary function is to ensure that the QEC Board of Directors maximizes its effectiveness and is abreast of best practices for governance as it pertains to developing effective strategies for oversight and accountability to the corporation and its shareholder.

Annual Report 24-25 14 THE REVISED STRATEGIC DIRECTION In 2025, QEC launched a revised mission, vision, values, and strategic direction to modernize our approach to deliver energy in Nunavut. Developed collaboratively during a two-day workshop with QEC’s Senior Management Committee, the updated strategy is anchored in three core pillars: Elevate (Employee Empowerment), Energize (Operational Success), and Evolve (Sustainable Innovation). These pillars guide our daily work, ensuring alignment with our commitment to safety, transparency, and reliability.

The revised direction is now shaping projects, initiatives, and operations across the corporation. Throughout this annual report, we will highlight the achievements and activities of our teams and demonstrate how their work connects to and advances these strategic pillars. Supported by: Inuit Qaujimajatuqangit (Inuit Societal Values) Driven by: QEC’s Core Values At the centre: The QEC Logo, representing our purpose. Our Mission and Vision. Highlighting: Our 3 pillars, Energize, Elevate and Evolve.

Annual Report 24-25 15 MISSION: To provide comfort and warmth to our communities by delivering reliable and responsible energy in Canada’s True North. VISION: An energized Nunavut, powered by alternative energy and community-centred initiatives.

Annual Report 24-25 16 Strategic Pillars ENERGIZE Fueling performance to power a stronger future. Driving efficiency, ensuring consistent results, and continually improving how we serve our communities.

Through operational excellence, we build a foundation that allows us to deliver reliable, high-quality service while staying aligned with corporate goals. • Customer-Centric Approach – Putting our customers at the heart of everything we do. • Efficiency and Productivity – Maximizing resources to achieve more with less. • Continuous Improvement – Always looking for ways to do better. • Data-Driven Decision Making – Using insights to guide smarter choices. • Standardization and Consistency – Ensuring quality and reliability in every process. • Risk Management – Identifying and addressing potential challenges. • Adaptability and Agility – Staying flexible and responsive in a changing world. • Alignment with Corporate Goals – Keeping our vision and mission in focus.

ELEVATE Motivating our staff to thrive and succeed. Elevate is about valuing, developing, and supporting our greatest asset, our people.

By fostering a safe, inclusive, and rewarding work environment, we create space for growth, engagement, and long-term success. • Culturally Relevant Work Environment – Honouring diversity and embracing community values. • Health, Safety, and Wellness – Prioritizing the well-being of our team. • Fair Compensation and Benefits – Recognizing contributions with fairness and equity. • Training and Career Development – Investing in growth and potential. • Diversity, Inclusion, and Engagement – Creating an environment where everyone belongs. • Work-Life Balance and Flexibility – Supporting a healthy work-life balance. • Recognition and Retention – Celebrating achievements and keeping top talent.

Annual Report 24-25 17 EVOLVE Shaping the future with forward-thinking solutions. Evolve focuses on harnessing innovation and building sustainable solutions for the unique challenges of the Arctic.

By embracing change and driving transformation, we ensure that QEC remains at the forefront of energy innovation. • Sustainable Energy Solutions – Exploring and developing solutions that move us toward a more sustainable future. • Community-Centric Innovation – Designing solutions that reflect local needs. • Resilient Infrastructure – Building systems that withstand the Arctic’s challenges. • Digital Transformation – Leveraging technology to improve operations. • New Partnerships – Expanding connections to fuel growth and innovation. • R&D for Arctic Conditions – Developing solutions built for the North. • Technology Integration – Seamlessly incorporating new tools and systems.

Annual Report 24-25 18 Our Values SAFETY We power communities, but safety powers everything we do. At QEC, safety isn’t just a box to check, it’s a mindset. Whether we’re maintaining equipment, working in extreme conditions, or supporting our communities, we look out for each other. Every decision we make is guided by protecting our people, our customers, and the environment we serve. TRANSPARENCY Clear, open, and always honest. We believe that trust is built through openness.

From the way we communicate with our customers to how we share information with our partners and employees, we are committed to being clear, timely, and honest. No hidden agendas, just a commitment to keeping everyone informed and engaged. RESPECT Rooted in culture. Reflected in action. Respect is at the core of how we connect with one another, within our team, with our partners, and with the communities we serve. We honour diverse perspectives, listen with intent, and ensure everyone feels valued. It’s about more than words, it’s the way we show up, every day. TEAMWORK / COLLABORATION Stronger together, always.

Our success is built on collaboration. We know that bringing together diverse ideas and talents leads to innovative solutions. Whether we’re working across teams or with our communities, we lean on each other to achieve our goals. After all, the best results come when we work as one.

Annual Report 24-25 19 ACCOUNTABILITY Own it. Deliver it. Improve it. We take responsibility for our work, our decisions, and our impact. At QEC, accountability means following through on our commitments and continuously finding ways to improve. We’re not afraid to face challenges head-on and learn from them to build a stronger future. RELIABILITY Dependable energy. Dependable people. Our communities count on us, and we take that seriously. Reliability isn’t just about keeping the lights on, it’s about being a trusted partner who delivers, day in and day out. No matter the conditions, QEC is committed to providing consistent, dependable service that people can count on.

Annual Report 24-25 20 Inuit Qaujimajatuqangit Respecting others, relationships and caring for people. Serving and providing for family and/or community. Development of skills through observation, mentoring, practice, and effort. Working together for a common cause. Fostering good spirits by being open, welcoming and inclusive. Decision making through discussion and consensus. Being innovative and resourceful. Respect and care for the land, animals and the environment.

Annual Report 24-25 21 QEC HIGHLIGHTS 2024-2025 In 2024–25, QEC made significant progress in building internal capacity, enhancing employee engagement, and delivering critical infrastructure projects. Across the corporation, teams focused on collaboration, training, and community connection, laying a strong foundation for the year ahead.

Highlights include: Advanced professional development & collaboration: • Engineering staff completed ETAP (Electrical Transient Analyzer Program) and HVAC (Heating, Ventilation, and Air Conditioning) training. • IT staff engaged in Kaizen (continuous improvement) activities to improve support following the GN network migration. • Fostered team connection and wellness: • Bi-weekly HR huddles and informal staff outings in Rankin Inlet, Cambridge Bay, Iqaluit, and Baker Lake. • HSE team celebrated milestones with group recognition events.

Celebrated employee and team milestones: • Safety luncheons and a Nunavut photo contest were hosted during Health & Safety Week. • Safety Awards were presented to operators in Kugluktuk, Whale Cove, Kimmirut, and Grise Fiord.

Achieved major infrastructure milestones: • Signed Design-Build contracts for new power plants in Cambridge Bay, Gjoa Haven, and Igloolik, with 50% design drawings completed and major equipment ordered. • Completed installation and commissioning of Iqaluit G4 and Rankin Inlet G5 gensets. • Advanced additional genset replacement projects in Whale Cove, Chesterfield Inlet, Kimmirut, Pond Inlet, Coral Harbour, Kugaaruk, Baker Lake, and Sanikiluaq.

Annual Report 24-25 22 • Initiated tendering and design work for feeder upgrades in Igloolik, Hall Beach, and Gjoa Haven. Delivered key community and corporate engagement initiatives: • QEC Connect was launched as the Corporation’s first internal town hall to share successes and build alignment. • Renewable Energy team hosted a public showcase in Iqaluit. • Participated in Environment Day cleanup initiatives across the territory. These achievements reflect QEC’s ongoing commitment to developing its workforce, strengthening infrastructure, and delivering safe, reliable, and community-focused energy solutions across Nunavut.

Annual Report 24-25 23 OUTLOOK FOR 2025-2026 Elevate, valuing, developing, and supporting our people, will lead QEC’s focus in 2025–26. We will continue building an inclusive, respectful, and rewarding workplace through enhanced onboarding, QEC Connect, and ongoing investment in Inuit employment and leadership development. By creating space for growth and engagement, we strengthen the foundation for long-term success. Safety remains our top priority.

QEC will reinforce a strong safety culture with refreshed training, clear life-saving rules, empowered stop-work authority and improved incident reporting and learning. Our goal is simple: Everyone goes home safe. In 2025–26, QEC will continue advancing its commitment to reliable, sustainable energy solutions that reflect the values, needs, and voices of Nunavummiut. Guided by innovation, partnerships, and environmental stewardship, the Corporation will focus on strengthening core infrastructure while expanding renewable energy initiatives across the territory.

Key capital projects, including construction of new power plants in Cambridge Bay, Gjoa Haven, Igloolik and Kugluktuk, as well as critical genset replacements, will improve system reliability and fuel efficiency. At the same time, the Alternative and Renewable Energy team will move forward expanding community-led Independent Power Producer (IPP) projects and continue exploring Alternative Energy solutions to reduce emissions and heating fuel dependency. Community engagement will remain central to how we plan and deliver projects.

QEC will deepen two-way dialogue with hamlets, local organizations and residents through regular meetings, open houses, community visits, and non-technical language materials in all four languages, ensuring projects reflect local priorities, increase accessibility, and maximize community benefits. Together, these efforts reflect QEC’s vision of an energy future that is efficient, resilient, and community-driven, where Nunavummiut have a strong voice in shaping the territory’s transition to clean energy.

Annual Report 24-25 24 TEAM HIGHLIGHTS CORPORATE AFFAIRS The Corporate Affairs Team plays a central role in advancing QEC’s strategic direction and ensuring alignment with territorial priorities. Responsible for policy development, corporate planning, and internal and external communications, the team provides vital support across QEC teams and acts as a key conduit between QEC and its external stakeholders. In 2024–2025, Corporate Affairs led the development and review of corporate policies and strategic planning initiatives to ensure organizational efficiency and accountability.

The team also managed all communications functions, including public engagement, media relations, and executive messaging, ensuring consistent and transparent communication with Nunavummiut and key partners. As QEC’s primary liaison with the Government of Nunavut, Corporate Affairs works closely with policy counterparts across GN departments to support the alignment of QEC initiatives with territorial goals. The team also serves as the main point of contact for the Minister responsible for QEC, supporting regular updates, legislative correspondence, and briefings to ensure timely and informed decision-making.

As the exclusive generator and distributer of electricity in Nunavut, QEC’s commitment to Nunavummiut includes supporting and building relationships throughout the territory by actively participating in community events and providing financial and in-kind contributions to community and non-profit organizations. QEC takes pride in its employees’ ongoing dedication to these community events and their engagement with the goal of conducting business in a socially responsible manner.

Annual Report 24-25 25 Community Initiatives Ikajuuti LED – Elders and Seniors Support Initiatives The Ikajuuti Program is designed to foster long-term relationships between QEC and Nunavut’s aging population through mutual learning about energy use and conservation. Planning efforts in 2024–25 also included securing support from the Climate Change Secretariat and submitting a funding application to Natural Resources Canada’s Home Labelling Fund to support future program phases focused on home energy assessments and broader sustainability goals.

In Q4 of the 2024–25 fiscal year, QEC completed planning and development for the Ikajuuti Program, a new community-led initiative supporting Elders and Seniors (aged 55+) across Nunavut. Named after the Inuktitut word Ikajuuti, meaning “to offer support during times of hardship,” the program aligns with the Government of Nunavut’s Katujjiluta Mandate pillar - Aging with Dignity. Phase 1 of the program is scheduled to launch in the fall of 2025. In this phase, participating households will receive two six-packs of free ECO LED lightbulbs and simple, accessible information on energy conservation.

To participate, Elders and Seniors will present identification at their local Hamlet office to collect their lightbulb package.

Annual Report 24-25 26 Laura Ulluriaq Gauthier Scholarship In 2024–2025, QEC expanded the Laura Ulluriaq Gauthier Scholarship program from one recipient to two, recognizing the growing need to support Nunavut’s future leaders in post-secondary education. Each year, the scholarship awards $5,000 to two students who demonstrate academic excellence and outstanding contributions to their communities. One of the two awards is reserved for a student enrolled in an engineering-related field, reflecting QEC’s ongoing need for technical expertise within the territory.

Established in 2007, the scholarship honours the legacy of Laura Ulluriaq Gauthier, a visionary and former government leader who played a pivotal role in the creation of QEC and championed the establishment of a Nunavut-based utility. Her legacy continues to inspire the next generation of Inuit leaders and professionals. Introduction of QEC Connect Following the unveiling of QEC’s new strategic direction, QEC launched QEC Connect. This bimonthly, all-staff virtual gathering is designed to strengthen internal communication across the corporation and build a stronger sense of connection.

Each session is guided by QEC’s strategic pillars- Energize, Elevate and Evolve- and is designed to encourage employees to engage with these values in their everyday work.

Annual Report 24-25 27 Donations & Sponsorships In 2024-2025, QEC contributed financially to recreational programs including the Nunavut Soccer Association and Iqaluit Slo-Pitch League for infrastructure upgrades to the softball pitch. QEC also supported community wellness by sponsoring the Astro Theatre Holiday Movie Days. Earth Hour Campaign To mark Earth Hour 2025, QEC shared a series of social media posts encouraging Nunavummiut to support the environment while lowering their power bills through simple energy-saving actions. In partnership with the Department of Environment, QEC also donated flashlights and ring lights to support the youth Earth Hour Glow Dance.

Annual Report 24-25 28 TEAM HIGHLIGHTS OPERATIONS & ENGINEERING OPERATIONS QEC’s Operations team is responsible for the generation and distribution of safe and reliable electricity across all 25 Nunavut communities. Each community has its own power plant operated by local employees, supported by electricians, mechanics, meter technicians, power line technicians, and fleet staff based in the regional hubs of Iqaluit, Cambridge Bay, and Rankin Inlet.

Operations works closely with the Engineering, Health, Safety & Environment, and Finance Teams to execute QEC’s capital plan while addressing the unique challenges presented by Nunavut’s aging infrastructure, harsh climate, and growing demand for renewable energy alternatives. The team continues to build a skilled and dedicated workforce to ensure delivering reliable power to all Nunavummiut.

Energize: Key Achievements • Successfully completed the Rankin Inlet emergency genset installation in collaboration with Engineering ahead of winter peak demand; all other gensets in Rankin Inlet were also overhauled. • Repositioned and recommissioned the Pangnirtung modular emergency genset, following gravel pad instability, ensuring safe operation before winter. • Substantial completion of the Baker Lake headquarters office; minor deficiencies will be addressed in 2025–26. • Delivered new modular staff housing to Rankin Inlet via 2024 sealift; on-site installation is planned for summer 2025.

Annual Report 24-25 29 • Received new Radial Boom Derrick vehicles (line trucks) during 2024 sealift to support line maintenance. • Completed routine major equipment overhauls and distribution system upgrades ahead of the winter readiness deadline of November 30, 2024.

Elevate: Supporting Employee and Enhancing Operations • Hosted Operator Training 2024, a 10-day technical training session for over thirty plant operators from across Nunavut. • Delivered Maintenance Planning training for managers and supervisors on scheduling and job planning. • Supported two employees in completing Level 3 of the Mearie Group Meter Technician Certification program. • Sponsored a Warehouse Technician’s enrollment in their first apprenticeship education block at Northern Alberta Institute of Technology (NAIT).

Evolve: Initiatives & Innovation • Implemented a new Computerized Maintenance Management System (CMMS) as part of modernizing the plant maintenance program. • Developed an ArcGIS-based Geographic Information System (GIS) to map and track distribution system assets. • Launched a new SCADA (Supervisory Control and Data Acquisition) system in Baker Lake using Starlink in partnership with the I.T. team, which will be rolled out to other plants in the next fiscal year.

Annual Report 24-25 30 Reliability Providing reliable electricity to Nunavummiut remains a top priority for the Operations team. In 2024-2025, QEC reported a territory-wide reliability rate of 99.92%, which is consistent with previous years. QEC tracks planned and unplanned outages using Canadian Electricity Association guidelines. Planned outages support safe system maintenance, while unplanned outages are unexpected and typically caused by the weather, equipment failure, or other external factors.

The Operations team continues to address reliability through proactive inspections, preventative maintenance, and strategic upgrades to plant systems and equipment. Performance Reporting QEC measures utility service performance annually through industry-standard indicators: • SAIFI (System Average Interruption Frequency Index): Measures the average number of outages per customer. • SAIDI (System Average Interruption Duration Index): Measures the total time the average customer is without power. The charts below show the system’s average interruptions a customer observed in each community, region and territory.

Total power outages (planned and unplanned) are indicated by darker/solid colour and include the numeric value of each system’s average interruption. Planned power outages are indicated by the lighter/transparent colour. • Most reliable communities: Taloyoak, Kugluktuk, Coral Harbour, and Arctic Bay. • SAIFI: 6.80 (up from 3.78 the previous year). • SAIDI: 6.70 hours (up from 3.75 hours the previous year).

Annual Report 24-25 31 The SAIDI shows the average outage durations (in hours) for QEC’s system in each community and region from April 1, 2024, to March 31, 2025. The average outage duration is calculated by dividing the sum of all customer interruption durations by the total number of customers served. The SAIFI shows the average number of interruptions a customer experienced in each community and region from April 1, 2024, to March 31, 2025. The average number of interruptions is calculated by dividing the total customer interruptions by the total number of customers served.

The SAIFI and SAIDI metrics provide insights into the reliability of QEC’s generation and distribution systems and help identify areas for future improvement. The reliability statistic charts below comprise all outage data from the fiscal year 2024-25. The chart below shows the last five years of reliability data. The annual outage data follows the fiscal year calendar, which runs from April 1st until March 31st of the following year.

As can be seen by the 2.78 8.29 0.24 29.72 0.97 7.73 43.67 2.43 1.77 5.81 13.59 66.13 13.65 15.27 17.20 5.13 2.23 3.53 3.32 7.60 77.94 0.02 14.07 19.04 14.74 6.70 0 20 40 60 80 Cambridge Bay Gjoa Haven Taloyoak Kugaaruk Kugluktuk Rankin Inlet Baker Lake Arviat Coral Harbour Chesterfield Inlet Whale Cove Naujaat Iqaluit Pangnirtung Kinngait Resolute Bay Pond Inlet Igloolik Sanirajak Qikiqtarjuaq Kimmirut Arctic Bay Clyde River Grise Fiord Sanikiluaq All Locations SAIDI (h) 9.51 11.21 1.24 9.08 0.77 16.53 13.05 8.38 2.98 4.71 10.12 33.13 22.78 14.00 12.42 7.00 3.21 7.65 9.23 4.00 11.73 0.19 4.64 16.59 15.62 6.80 0 5 10 15 20 25 30 35 Cambridge Bay Gjoa Haven Taloyoak Kugaaruk Kugluktuk Rankin Inlet Baker Lake Arviat Coral Harbour Chesterfield Inlet Whale Cove Naujaat Iqaluit Pangnirtung Kinngait Resolute Bay Pond Inlet Igloolik Sanirajak Qikiqtarjuaq Kimmirut Arctic Bay Clyde River Grise Fiord Sanikiluaq All Locations SAIFI

Annual Report 24-25 32 reliability trend line, QEC’s reliability has been consistently greater than 99.9% since 2019- 2020. Generation To manage the challenges presented by aging power infrastructure across the territory, Operations adheres to a strict maintenance

schedule on all equipment in the twenty-five power plants. Operations collaborate with Engineering on upgrades to existing power plant infrastructure and the construction of new power plants. In 2024-2025, Operations worked with Engineering to commission a new generator set in Iqaluit, the emergency genset installations in Rankin Inlet and Sanikiluaq, a substation upgrade in Sanikiluaq, and PLC & DC system upgrades in Rankin Inlet.

These asset upgrades allow QEC to meet the current and future energy needs of Nunavut’s growing communities and support reliable operations. 3.31 5.67 1.92 2.01 3.75 6.70 7.84 6.90 3.32 3.22 3.87 6.80 99.89% 99.90% 99.91% 99.92% 99.93% 99.94% 99.95% 99.96% 99.97% 99.98% 99.99% 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Reliability Statistics SAIDI (hrs) SAIFI Reliability (%) SAIDI –average outage duration for each customer served (hrs/yr). SAIFI – average number of non-momentary interruptions a QEC customer would experience in a year.

RELIABILITY– percentage of total outage duration hours over the total hours of energy supplied to all customers per year

Annual Report 24-25 33 Distribution QEC’s Power Line Technicians (PLTs) play a vital role in maintaining the reliability of electricity across Nunavut. Throughout the winter months, PLTs travel to outlying communities to repair weather-related damage to power lines, poles, and customer connections. In the spring and summer, their focus shifts to system maintenance, inspections, and preparing infrastructure for new customer connections as electricity demand continues to grow.

In 2024–2025, the Operations team supported a wide range of distribution-related activities, including preventative maintenance, emergency response, and substation upgrades. Operations also worked closely with the Engineering team to support capital projects aimed at improving community distribution systems and increasing reliability. Preventative Maintenance Each year, QEC Operations develops detailed work plans to guide resource allocation and budgeting for preventative maintenance activities.

Weekly team meetings are held to review and coordinate divisional schedules, ensuring alignment and progress on planned work. In 2024–25, the maintenance team placed greater emphasis on planning and execution, particularly for major equipment overhauls with known long lead times. These efforts improved scheduling accuracy and reduced delays. While the new Computerized Maintenance Management System (CMMS) was still under development, Operations effectively managed maintenance activities using legacy manual tracking tools carried over from 2023-24.

These improvements reflect the team’s ongoing commitment to operational excellence and proactive system care, helping QEC maintain safe, efficient, and reliable power delivery across the territory. FACILITIES Transient Units The Facilities division works diligently to assess the conditions of QEC’s transient units on a per unit basis. Required repairs and maintenance continue to be prioritized and completed in a cost-effective and timely manner. Regular maintenance practices include fuel and sewage tank inspections, annual furnace servicing and water tank cleanings, and ensuring all fixtures

Annual Report 24-25 34 and fittings are operable and adequately secured. Larger- scale repairs such as furnace replacements, roof repairs, and plumbing issues are completed as necessary to keep the units in good working order. As of March 31, 2025, QEC had twenty-nine transient units, some of which are vacant due to significant and ongoing renovation requirements. Staff Housing Portfolio The Facilities team manages the housing portfolio to meet the needs of QEC staff.

This may result in the non- renewal of unsuitable leased accommodations due to changing living requirements or undesirable unit locations or conditions. QEC-owned staff housing units are assessed on an ongoing basis, and renovation and repairs are initiated to improve the condition of the properties. As of March 31, 2025, QEC had a total of 133 staff housing units. The table below shows the breakdown by staff housing units in each region and size of unit (bachelor unit, 1-bedroom unit, 2-bedroom unit, 3- bedroom unit and 4-bedroom unit, and 5-bedroom unit).

Unit Size Bachelor 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom Total # Units Iqaluit 0 29 19 28 4 1 81 Rankin Inlet 0 1 2 3 0 0 6 Baker Lake 0 11 11 9 0 0 31 Cambridge Bay 0 1 4 8 2 0 15 Total 0 42 36 48 6 1 133

Annual Report 24-25 35 ENGINEERING QEC’s Engineering team leads the planning and delivery of the corporation’s capital projects, ensuring the safe, efficient, and sustainable operation of power infrastructure across Nunavut. The team is responsible for project design, execution, and technical support, as well as conducting life cycle assessments and infrastructure evaluations to inform long-term planning. Engineering works in close partnership with Operations, Finance, HSE, and Facilities to deliver upgrades to generators, distribution networks, and fuel systems.

This collaboration supports the successful implementation of QEC’s Corporate Plan and ensures Nunavummiut continue to receive reliable electricity, even in the most remote communities.

Energize: Key Achievements • Awarded contracts for three new power plants in Cambridge Bay, Igloolik, and Gjoa Haven. • Commissioned the Iqaluit G4 genset replacement and connected an Emergency Modular Unit in Rankin Inlet. • Provided service connections for 14 new housing developments (350 kW) under the NU3000 program and 66 additional housing/infrastructure developments (4,634 kW) across the territory. • Completed development of QEC’s Distribution Standards. • Integrated 286.4 kW from Customer-Installed Power Production (CIPP) and 172 kW from the Net Metering Program (NMP) into QEC’s energy mix. • Secured $1.23 million in federal funding to build capacity within the Alternative and Renewable Energy team.

Strategic Milestones • Established a dedicated Alternative and Renewable Energy Team to support growing clean energy demand and align with territorial and federal climate goals. • Received approval from Natural Resources Canada (NRCan) to advance to the next stage of funding under the Smart Renewables and Electrification Pathways Program (SREP) for QEC’s Advanced Metering Infrastructure (AMI) proposal.

Annual Report 24-25 36 • Advanced two major Independent Power Producer (IPP) projects in Sanikiluaq and Naujaat from study to design stage. • Completed the Sanikiluaq Substation Upgrade. • Successfully recruited, trained, and retained engineering staff to support key capital initiatives. Elevate: Overcoming Challenges & Fostering Growth Training & Development • HVAC system training for Mechanical team members. • ETAP software training for the Distribution team. • Participation in renewable energy conferences.

Team Collaboration & Culture • Monthly team meetings were held to review lessons learned, address challenges, and improve project delivery. • The Alternative and Renewable Energy Team delivered a public presentation in Iqaluit to share progress and engage stakeholders.

Evolve: Innovation & Future Priorities Initiatives & Improvements • Created a dedicated Alternative and Renewable Energy Team. • Improved internal processes for contract payments (RCP), including the development of: o A contractor payment tracking database. o A project tracking database. o A contract tracking system. o A remote work and vacation scheduling tool. • Enhancements to the monthly project status reporting system Commitments for 2025-2026: • Improve internal systems and provide stronger technical support to other teams. • Advance the design and construction of three new power plants. • Continue land acquisition efforts for future sites. • Finalize project approval processes for new power plants in Chesterfield Inlet and Kugaaruk.

Annual Report 24-25 37 Power Plant Rebuild Projects Ten power plants across Nunavut have been identified for replacement due to aging infrastructure nearing or exceeding their 40-year service life. While maintenance extends the lifespan of some assets, full replacement is critical to ensuring safe and uninterrupted service.

New Power Plants • Kugluktuk: A public Design-Build RFP was released in March 2025 for a new plant featuring four generator sets and two 90,000-litre fuel tanks. • Cambridge Bay: Design-Build contract signed; design work underway. • Gjoa Haven: Design-Build contract signed; 50% of design complete and major equipment ordered. • Igloolik: Design-Build contract signed; 50% of design complete and major equipment ordered.

Genset Replacement • Iqaluit G1: Tendering in progress. • Whale Cove G1: Contract award in progress. • Chesterfield Inlet G1: Contract awarded, and work initiated. • Kimmirut G3: Genset procurement contract signed. • Pond Inlet G3: Design-Build contract signed; design underway. • Coral Harbour G2: Design-Build contract signed; 50% engineering complete. • Kugaaruk G1, Baker Lake G4, Sanikiluaq G3: Design phase completed. • Iqaluit G4: Installation and commissioning completed. • Rankin Inlet G5: Installation completed.

Distribution Projects & Community Work • Igloolik Feeder Upgrade (F1, F2, F3): Tendering in progress. • Hall Beach Feeder Upgrade: Phase 1 completed. • Gjoa Haven Feeder 2 Upgrade: Tendering initiated. • Naujaat Fuel Connection: Physical work completed; final electrical inspection pending. Contract extended to September 2025.

Annual Report 24-25 38 RENEWABLE ENERGY PROGRAMS Net Metering Program (NMP) Launched in 2018, QEC’s Net Metering Program enables residential customers and two municipal/hamlet accounts per community to install renewable generation systems (≤15 kW) and receive credits for excess energy sent back to the grid. A 10 kW institutional customer was grandfathered into the program prior to the 15 kW limit. The program continues to support customer engagement in energy sustainability. NMP Program

Summary Customer Type Installed and In-Service (KW) Approved but Not In-Service (KW) Residential 42.0 95.3 Hamlets/Municipalities 130.0 100.0 Institutional - 10.0 Total 172.0 205.3 Grand Total. 377.3 KW Commercial and Institutional Power Producer Program (CIPP) QEC’s CIPP Program allows existing commercial and institutional customers to generate renewable energy on their premises and sell all the energy generated to QEC. QEC buys power from CIPP participants at a rate equal to the corporation’s diesel savings. As of March 31, 2025, the corporation has: CIPP Program

Summary Installation Status Capacity (KW) Expressed Interest, No Application 971.12 Application, But not Commissioned 1,180.14 Commissioned, But not In-Service 142.0 Approved, Commissioned & In-Service 286.4 Grand Total 2,579.66 KW

Annual Report 24-25 39 Independent Power Producer Program (IPP) QEC continued to implement the IPP Program. This program allows power producers outside of the utility to generate electrical power from renewable energy systems to sell directly to QEC. Inuit organizations will be given the first opportunity to own and operate community scale installations in their respective regions with 51% ownership of all IPP’s. QEC can afford to pay IPPs the avoided cost of diesel. The application received for Iqaluit is a data request application for a potential hydro project this project is in its exploratory phase. IPP Program

Summary Community Applied & Integration Process Ongoing (KW) Installed & Commercial Operations (KW) Arviat 2,000 - Baker Lake 2,000 - Cambridge Bay 2,960 - Coral Harbour 1,050 - Iqaluit 15,000 to 30,000 - Naujaat 1,050 - Rankin Inlet 3,000 - Sanikiluaq 1,000 - Grand Total. Approx. 28,060KW ALTERNATIVE ENERGY & RENEWABLE ENERGY EXPLORATION QEC’s mandate includes planning and providing for Nunavut’s long-term needs for affordable energy, while considering Nunavut’s desire to enhance energy self-reliance and to conserve energy and energy resources.

To achieve this, QEC’s Alternative advances initiatives to reduce the territory’s reliance on diesel fuel and decrease greenhouse gas emissions while further working toward energy independence for Nunavummiut. The Government of Nunavut’s mandate, Katujjiluta, highlights investigating the potential for alternative building technologies to be used and manufactured in Nunavut as a territorial outcome. Continuing to build strong relationships with the land and providing a reliable power

Annual Report 24-25 40 supply drives the need to explore alternative energy options that emphasize energy-efficient and climate-friendly construction. The reliability of some alternative energy sources, which produce intermittent rather than continuous or on-demand power, and the significant capital cost to transition to these sources are the biggest challenges to their implementation in Nunavut. These realities mean diesel powered generation can only be reduced for the foreseeable future but not eliminated.

QEC’s limited financial resources are used to maintain and rebuild aging diesel generation facilities; QECs renewable energy programs (CIPP & IPP) will leverage external investments to bring renewable energy into the grid. Geothermal Energy Geothermal energy is a renewable and clean source of power that draws heat from beneath the Earth’s surface. High-grade geothermal energy can be used to generate electricity, while lower-grade geothermal energy can support community heating through district heating systems. As of March 31, 2024, QEC completed the current phase of Nunavut’s geothermal assessment.

The study concluded that while geothermal resources exist, they are not commercially viable in the territory due to high costs, limited data, and low population density. Given these challenges, QEC will not pursue further geothermal research or development activities at this time. Micro Modular Reactors (MMRs) The Government of Canada classifies nuclear energy as a form of clean energy, opening the door to potential exploration of Micro Modular Reactors (MMRs) as an alternative to diesel- powered generation in remote communities.

QEC is currently in an exploratory phase, collecting information to assess the technical, financial, environmental, and social feasibility of MMR technology in Nunavut. While interest exists, there are no plans or projects currently underway, and no MMR activities took place during the 2024–2025 fiscal year. District Heating Systems (DHS) District Heating Systems (DHS) capture thermal energy produced as a by-product of diesel- powered electricity generation and redistribute it to nearby buildings through insulated pipes.

This system significantly reduces the need for institutional and commercial customers to burn additional fuel for heat, lowering maintenance costs and reducing emissions. DHS displaces approximately two million litres of heating fuel annually in Nunavut.

Annual Report 24-25 41 Through funding from the Government of Canada’s Low Carbon Economy Fund (LCEF), QEC has successfully completed DHS installations in Sanikiluaq and Taloyoak. The Sanikiluaq system became fully operational in December 2021, followed by the Taloyoak system in December 2022. The Taloyoak project connected key facilities, including Netsilik School, Moses Teelktaq Pool, the Paleajook Eskimo Co-op garage, and two hamlet garages. In 2024–2025, QEC began exploring opportunities to expand the DHS program territory-wide, including seeking additional funding to support this effort.

Annual Report 24-25 42 TEAM HIGHLIGHTS HEALTH, SAFETY & ENVIRONMENT The Health, Safety, and Environment (HSE) team is responsible for overseeing and promoting QEC’s corporate health, safety, and environmental practices.

The team’s mandate is to: • Minimize QEC’s environmental footprint. • Ensure employees understand their rights and responsibilities related to health, safety, and environmental stewardship. • Promote compliance with QEC’s Health and Safety Program and Environmental Management System. • Develop and revise safe work practices and procedures. • Provide health and safety training for employees and contractors. • Investigate safety incidents, including near- misses and environmental spills, and implement preventive measures. • Coordinate environmental assessments, hazardous materials reviews, and health risk studies. • Collaborate with contractors on the remediation and monitoring of contaminated and legacy sites. • Conduct annual due diligence studies, including soil monitoring. • Ensure compliance with all relevant federal and territorial regulations. • Liaise with the Government of Nunavut on legacy contamination issues, including financial liabilities inherited from the Northwest Territories Power Corporation and the Northern Canada Power Commission. • Contribute safety and environmental insight into new power plant designs. • Oversee the removal of hazardous waste, including waste oil, batteries, fuel, and glycol, via sealift from all communities.

Annual Report 24-25 43 Energize: Key Achievements • As of August 2024, the HSE team has been fully staffed, with roles including Manager, Health and Safety Specialist, HSE Advisor, HSE Construction Coordinator, and Environmental Specialist. • A Memorandum of Understanding was finalized with Petroleum Products Division (PPD) in 2024. This allows QEC to transfer materials from its Baker Lake land farm to PPD’s new land farm (slated for construction in summer 2025), following a 2021 spill event that catalyzed the collaboration.

Elevate: Overcoming Challenges & Fostering Growth Professional Development • The HSE Manager attended the Utility Work Methods Conference to engage with industry best practices and safety innovations. • The HSE Construction Coordinator participated in the Energy Safety Canada Conference. • The HSE Advisor attended the CANTEC Environmental Conference.

Team Recognition & Activities • The team celebrated the successful completion of HSE’s annual inspections across 25 communities and the onboarding of a new team member with a staff luncheon. • The team also participated in Environment Day through a community summer clean- up initiative. Evolve: Innovation & Future Priorities Initiatives & Improvements • HSE joined the Solid Waste Solutions Initiative Steering Committee to support collaborative efforts across Nunavut for long-term waste solutions. • All departmental files are now cloud-based, improving access and data integrity.

Regular Teams meetings have increased internal collaboration. Upcoming Commitments • Continue expanding digital infrastructure for training and reporting. • Support further collaboration on contaminated site management. • Advance QEC’s safety culture through employee engagement and proactive risk management.

Annual Report 24-25 44 HEALTH & SAFETY QEC is committed to providing a safe and healthy work environment that minimizes occupational risk for employees, contractors, customers, and the public. Accountability at both individual and organizational levels is key to maintaining workplace well-being. Workplace Fatality Tragically, QEC experienced a workplace fatality on July 5, 2024. A Journeyman Electrician was fatally injured while working in an Emergency Generator Unit. The incident is under investigation, and QEC is actively reviewing processes to prevent future tragedies.

Certification of Recognition (COR) In 2024, QEC achieved an 81% score on the COR Internal Audit, part of its ongoing accreditation with the Northern Safety Association. Since receiving COR status in 2013, QEC has continuously enhanced its Health and Safety Program to reflect best practices and audit feedback. Training & Recognition • QEC fully implemented its new HSE training tracking system in 2024– 2025, streamlining record-keeping and identifying training needs across the corporation. • Operator Training was held in Iqaluit from October 23 to November 1, 2024.

Participants received HSE and operations training, audiometric testing, and custom-molded earplugs.

Training Delivered 2024-2024: • 43 in Standard First Aid • 43 in Fall Protection • 48 in WHMIS • 32 in Transportation of Dangerous Goods (TDG) • 36 in Fire Extinguisher Inspection • 132 in Utility Work Protection Code • 46 in Supervisor Safety Familiarization • 35 in Electrical Safety and Arc Flash Awareness • 218 in Contractor Safety Orientation Safety & Health Week QEC celebrated Safety and Health Week with a range of activities: • Photo contest for the 2025 QEC Calendar • Daily teleconferences on safety topics with prize draws • A presentation from Threads of Life speaker Melanie Kowalski-Fleming • Safety luncheons in Rankin Inlet, Cambridge Bay, and Iqaluit

Annual Report 24-25 45 Safety Awards During Operator Training, Awards of Excellence were presented to employees in Kugluktuk, Whale Cove, Kimmirut, and Grise Fiord for exemplary safety practices. The Safety Award Program continues to promote safe practices and strengthen QEC’s safety culture. ENVIRONMENT Operating within a diesel-based system, the Environment team works to reduce environmental risk, monitor contamination, manage fuel infrastructure, and oversee spill response and remediation.

Through a risk-based approach and ongoing collaboration with regulators and communities, QEC remains committed to environmental stewardship and regulatory compliance across all operations. Contaminated Site Management • Environmental Site Assessments (ESAs) remain central to QEC’s risk-based approach to legacy contamination. • In 2024, an ESA was conducted in Grise Fiord at the old power plant location. • Annual soil sampling across QEC sites helps track contamination trends and guide remediation planning.

Fuel Supply Infrastructure QEC continues to modernize its fuel supply systems to minimize environmental risk and ensure secure energy access in communities. Spill Response (2024–2025) Community Response Rankin Inlet • 7,000L diesel spill due to overfill protection failure. • Remediation efforts were limited by critical infrastructure. • Containment was enhanced following ECCC direction after September runoff showed fuel migration risks. • Monitoring and further mitigation will continue into 2025.

Igloolik • 130L engine oil spilled after a loader punctured a drum. • Spill was fully cleaned up; GN Spill File closed. Cambridge Bay • 113L engine oil spilled due to skid steer puncture. • Spill was fully cleaned up; GN Spill File closed. Pangnirtung • 100L engine oil spilled when a loader punctured a barrel during stock organization. • Spill was fully cleaned up; GN Spill File closed.

Annual Report 24-25 46 TEAM HIGHLIGHTS HUMAN RESOURCES The Human Resources (HR) team is a vital part of QEC’s operations, responsible for building and sustaining a workforce that reflects the corporation’s values of safety, accountability, inclusion, and service. HR leads initiatives that support employee development, promote organizational effectiveness, and ensure QEC remains a competitive and attractive employer across Nunavut.

The team’s work is anchored in three core functions: • Staffing and Recruitment: Attracting, developing, and retaining qualified staff through equitable hiring practices that align with QEC’s Inuit Employment Plan and the Government of Nunavut’s Priority Hiring Policy. • Labour and Employee Relations: Promoting respectful workplace culture, managing collective bargaining and grievance processes, and ensuring fair and transparent application of employment policies and practices. • Inuit Employment Programs: Increasing Inuit representation across all levels of the organization by administering programs that support career development, leadership growth, student hiring, and local capacity building.

Energize: Key Achievements • Partnered with Northern Counselling and Therapeutic Services (NCTS) to provide in- person and remote mental health and counselling support to all employees and their families. • Completed a corporation-wide compensation review, resulting in a 12% salary increase across all employee groups, effective January 2025. • Launched QEC Connect, the corporation’s first townhall series to share organizational updates, celebrate staff, and strengthen engagement. • Rolled out the Performance Management System, providing consistent and simplified review processes for all employees.

Annual Report 24-25 47 Elevate: Overcoming Challenges & Fostering Growth Professional Development & Collaboration • Attended career fairs in Edmonton, Toronto, and Iqaluit to increase brand awareness and promote employment opportunities. • Strengthened relationships with Nunavut Arctic College and NAIT to attract and retain local talent. • Supported team upskill: o Specialist, Employee & Labour Relations: pursuing a Master of Laws (LLM) in Labour and Employment Law. o Staffing Officer: working towards an Accredited HR Certification. o Director, HR: completed a Masters’ Certification in Public Sector Leadership and Labour Law.

Team Recognition & Activities • Bi-weekly “huddles” continued to foster internal connection and support. • Staff explored local communities and land, including snowmobiling in Iqaluit, visiting igloos in Baker Lake, and hiking in Cambridge Bay. • The Renewable Energy team presented their work at a public session in Iqaluit.

Evolve: Innovation & Future Priorities New Initiatives & Policy Updates • Launched a Job Share Policy to support flexible staffing and improve retention. • Introduced Telework and Remote Work policies, expanding flexible work options. • Provided training on addictions and substance use in the workplace through NCTS, including sessions for supervisors. • Delivered trauma-informed leadership training remotely and in-person for Rankin Inlet and Cambridge Bay employees. • Revamped the onboarding process for new hires to ensure consistency and clarity.

Technology & System Enhancements • Implemented an Applicant Tracking System (ATS) to streamline recruitment, improve transparency, and reduce administrative hours. • Updated all employee handbooks. • Reintroduced the QEC HR Teams Channel, providing training, policy links, and well tools. Upcoming Commitments • Launch QEC’s first Employee Engagement Survey.

Annual Report 24-25 48 • Expand in-person training in respectful workplace practices and interpersonal leadership. • Continue improvements to onboarding, career development, and staff wellness initiatives. Staffing and Recruitment In 2024–25, the HR team filled 41 positions through competitive processes or developmental transfers. Of these: • 80% were term or indeterminate placements. • 57% of QEC’s workforce identify as Nunavut Inuit (as of March 31, 2025). QEC adheres to the Government of Nunavut’s Priority Hiring Policy, with job ads and screening processes clearly stating preference for Inuit applicants.

Additional staffing strategies include: • Hosting Inuit-only or community-specific competitions. • Promoting casual Inuit employees to permanent roles based on performance. • Hiring Inuit staff in temporary roles to build qualifications for future competitions. • Strengthening relationships with high schools and post-secondary institutions. • Promoting the Summer Student Program through outreach and career fairs across Nunavut and Canada. Labour & Employee Relations Collective Bargaining QEC’s Collective Agreement with the Nunavut Employees Union expired on December 31, 2024. The union served notice to bargain.

QEC’s HR team has secured Board and Cabinet approval for the negotiation team composition and is working with the Human Resources team to finalize dates for negotiations. Grievance Management As of March 31, 2025, QEC has two active grievances referred to arbitration. All other grievances this fiscal year were resolved through early intervention or before reaching arbitration. Performance Management & Compensation QEC introduced a simplified and standardized Performance Management System, resulting in increased compliance and positive feedback from staff.

Annual Report 24-25 49 In 2024–2025, HR also: • Implemented salary adjustments following a comparative market review, resulting in a 12% increase effective January 2025. • Ensured the salary increase aligned with the collective bargaining mandate, avoiding further adjustments in 2025. Inuit Employment Program (IEP) QEC’s IEP division administers six interconnected initiatives designed to grow Inuit representation across all levels of the corporation. These programs are grounded in Inuit Societal Values and the principles of Inuit Qaujimajatuqangit.

Summer Student Program (SSP) • Aims to provide meaning work experience for Nunavut students. • Did not run in 2024-2025. • In spring of 2024, QEC advertised the summer student positions and plans to hire 21 students for the 2025- 2026 years, the highest number in five years. Inuit Career Development Program (ICDP) Connects Inuit employees with supervisors to create personalized career plans.

As of March 31, 2025: Apprenticeship Program • Approved by QEC’s Board in March 2023. • Four employees selected; one has completed their first year, and three are completing enrollment. 81 Inuit employees engaged 42 Plans completed 3 In progress 36 declined

Annual Report 24-25 50 Inuit Leadership Development Program (ILDP) • Supports Inuit employees in achieving professional and leadership goals. • Two employees in Finance and one employee in Operations are actively engaged in this program. IEP & Inuit Qaujimajatuqangit (IQ) Committees • The IEP Committee will relaunch in 2025 to oversee Inuit Employment progress and policy review. • The IQ Committee will also be relaunched in the next fiscal year to guide integrations of Inuit values into employment practices.

Annual Report 24-25 51 Employment

Summary as of March 31, 2025

Annual Report 24-25 52 TEAM HIGHLIGHTS INFORMATION TECHNOLOGY The Information Technology (IT) team supports QEC’s operations and strategic priorities through secure, reliable and innovative digital infrastructure. Based primarily at the corporation’s headquarters in Baker Lake, with additional staff in Iqaluit, the IT team connects all staff throughout the territory through its essential services, which include Operation Technology (OT) communications, enterprise applications, user support, cybersecurity, and application development.

Energize: Key Achievements • Successfully migrated QEC’s entire IT infrastructure to the GN’s network on June 24, 2025.

This transition significantly improved network speed, redundancy, and protection against cybersecurity threats. • Completed a full internal assessment of QEC’s IT infrastructure and vendor landscape, which informed the development of a strategic technology roadmap to support future innovation and security. • Initiated the safe migration of key applications to the cloud, taking advantage of the new network’s enhanced capabilities. • Finalized a five-year Applications Roadmap outlining the modernization of QEC’s core digital systems, with a focus on security, efficiency, and automation.

Elevate: Overcoming Challenges & Fostering Growth • Implemented advanced security tools and protocols, including Microsoft cloud-based platforms, to improve system resilience, protect sensitive data, and strengthen QEC’s cybersecurity posture. • Participated in continuous improvement (Kaizen) efforts with GN IM/IT to refine the support model post-migration and enhance service delivery to QEC staff.

Annual Report 24-25 53 • Supported staff training and adaptation during the transition to the new IT environment, helping users navigate new tools and processes.

Evolve: Innovation & Future Priorities • Developed a strategic IT vision focused on increasing efficiency within communities by providing real-time access to data and enhancing system automation and monitoring to support electricity generation and service delivery. • Continued modernization efforts through the ongoing evaluation of emerging technologies and vendor solutions to meet QEC’s evolving needs. • Prioritized business continuity, risk mitigation, and operational reliability through infrastructure upgrades and system hardening. • Strengthened collaboration with the GN Department of Community and Government Services (CGS) to streamline governance and ensure long-term sustainability of IT services GN Network Integration & Strategic Alignment Following Cabinet approval in April 2023 and formal direction in June 2023, QEC’s IT network was fully integrated into the Government of Nunavut’s infrastructure by June 24, 2024.

The transition was a milestone project, executed in partnership with GN’s IM/IT teams, and marked a significant step forward in achieving alignment, system reliability, and cybersecurity enhancement. Since the migration, both teams have worked together under a continuous improvement framework to refine support models, ensure seamless service delivery, and optimize the digital experience for QEC staff across the territory.

Annual Report 24-25 54 TEAM HIGHLIGHTS FINANCE The Finance department is located at the head office in Baker Lake with employees situated in the regional offices in Iqaluit, Rankin Inlet and Cambridge Bay. Finance plays a critical role ensuring that QEC meets its regulatory responsibilities, and financial and customer needs.

The focus of the Finance department is to: • Ensure accurate billing and collection of revenue. • Enhance quality of customer service. • Provide payments to suppliers on a timely basis. • Manage the control systems to ensure proper approval of expenditures. • Manage QEC’s debt and funding needs. • Administer and manage the government funded projects. • Provide internal services such as reporting, payroll and procurement. • Provide regulatory support.

Energize: Key Achievements • Fuel Stabilization Rate (FSR) Adjustments: The FSR charge was reduced mid-year from $0.0370/kWh to $0.01350/kWh in October 2024, providing cost relief while maintaining fund balance thresholds. • Rate Adjustments Approved: Ministerial approval was granted for increased electricity rates, including customer service charges and energy rates effective April 1, 2025, ensuring operational sustainability. • Capital Investments in Generation: Increased capital expenditures in 2024–25 due to the Rankin Inlet G5 & G6 genset replacement and emergency unit installations in six communities. • Interest-Free Loan from GN: In March 2025, QEC received the first phase ($52 million) of a $100 million interest-free loan from the Government of Nunavut to offset net operating losses and reduce outstanding debt to Petroleum Products Division.

Elevate: Overcoming Challenges & Fostering Growth • Improved Inventory Controls: Inventory counts were completed in 24 communities (all except Kimmirut) by October 2024.

Annual Report 24-25 55 This supported better physical inventory management, enhanced documentation, and strengthened collaboration between departments. • Enhanced Internal Coordination: Continued collaboration between Finance, Operations, and Engineering helped improve inventory documentation, reporting timelines, and contractor coordination. • Regulatory Compliance & Transparency: QEC maintained compliance with

Section 84 of the Financial Administration Act with no debt forgiveness occurred during the fiscal year. • Customer Support Programs: QEC continues to support two GN electricity subsidy programs by applying eligible subsidies directly to customer bills.

Evolve: Innovation & Future Priorities • Debt Optimization: In addition to the new loan, four previous GN loans were consolidated and converted into interest-free loans, lowering the long-term debt burden. • Strategic Financial Planning: Interest rates on short-term borrowing decreased in 2024-2025. • Future Regulatory Planning: QEC continues to monitor feedback from the General Rate Application (GRA) and plans to implement insights when submitting the next GRA in 2026-2027.

Increasing Internal & External Transparency General Rate Application (GRA) | In collaboration with the Corporate Affairs Team QEC is committed to charging its customers fair electricity rates. QEC typically files a GRA in 3–4-year intervals. The application is reviewed by the Utility Rates Review Council (URRC), with opportunities for public input. These adjustments are necessary to ensure QEC can invest in aging infrastructure and meet the territory’s growing energy needs. The proposed changes aim to improve cost recovery and support the continued delivery of safe, reliable electricity across Nunavut.

In 2024, QEC submitted a GRA to the Minister responsible for QEC, requesting amendments to electricity rates effective April 1, 2025. Key elements of the application approval include: • A proposed 9.1% increase in energy rates. • A 12.5% increase in streetlight rates. • An increase to the monthly service charge for residential customers (from $18 to $36) and commercial demand customers (from $8 to $16 per kW).

Annual Report 24-25 56 To protect Nunavummiut, non-government residential customers continue to receive support under the Nunavut Electricity Subsidy Program (NESP) and the Nunavut Housing Corporation- User Pay Program for public housing tenants, ensuring these changes do not impact their monthly bills. Federal Funding Programs | In collaboration with the Corporate Affairs Team The Arctic Energy Fund (AEF) is a federal funding program aimed at enhancing energy efficiency and reliability in the North and is offered through Infrastructure Canada’s Investing in Canada Infrastructure program.

This fund will provide QEC up to $175 million under a 75/25 percent shared cost arrangement through March 31, 2034. Under this major construction initiative, QEC has identified complete power plant rebuilds and generator set replacements across the territory. These upgrades are required to replace aging infrastructure and to ensure QEC meets the energy needs of Nunavut’s communities. The cost of plant replacements has increased greatly from the initial estimates at the time of signing the AEF contribution agreements and these cost increases require QEC to find an external funder.

To date, the corporation has received AEF approval for four new diesel power plants (Kugluktuk, Cambridge Bay, Gjoa Haven and Igloolik) and nine diesel power generator upgrades in six other remote communities (Clyde River, Rankin Inlet, Chesterfield Inlet, Iqaluit, Coral Harbour, Pond Inlet, and Whale Cove). In October 2024, QEC awarded contracts to ADCO for the power plant construction project in Cambridge Bay and to Pilitak Enterprises Ltd for constructing power plants in Igloolik and Gjoa Haven. The negotiations for the tendering of the Kugluktuk Power Plant replacement are ongoing.

If successful, QEC expects to award this contract before the end of the 2025 calendar year. Under the AEF program, QEC had planned to replace the power plants in Kugluktuk, Cambridge Bay, Igloolik, Gjoa Haven, Kugaaruk, and Chesterfield Inlet; however, the funding was not sufficient for all the communities. A Chesterfield power plant replacement application for AEF funding was submitted in February 2025, which will utilize the remaining unallocated $31 million of AEF funds. The genset in Iqaluit was installed in June 2024 and is scheduled for completion in summer 2025.

Annual Report 24-25 57 Highlights of Operations and Accumulated Surplus For the year ended March 31st ($ in thousands) 2025 2024 2023 2022 2021 Revenues Sale of Power $157,801 $149,907 $135,706 $130,891 $127,476 Sale of Heat 1,109 2,194 956 698 524 Government contributions 8,654 12,088 7,152 9,304 3,417 Other Income 5,305 6,202 5,113 5,220 5,666 Insurance proceeds - - - - - Total Revenues 172,869 170,391 148,927 146,113 137,083 Total Expenses 193,089 186,193 149,225 135,382 133,142 Surplus (deficit) for the Year $(20,220) $(15,802) $(298) $10,731 $3,941 Total revenues in 2024-25 increased by 1.0% compared to the previous fiscal year.

While there was an increase in revenue from the sale of power of 5.3%, as a result of increased electrical sales (kWh), a reduction in Government contributions largely offset that increase. The corporation assists in the administration of two support programs: 1) The Public Housing Power Support Program (PHPSP) subsidizes qualifying residential customers living in public housing. Customers in the program are billed at the rate of 6.0 cents per kilowatt hour for their power usage.

QEC invoices Nunavut Housing Corporation for the difference between the approved residential rate and the 6.0 cents per kilowatt hour for customers in this program. 2) The Nunavut Territorial Power Support Subsidy (NTPSS) subsidizes all other qualifying residential customers at 50 percent of the Iqaluit base rate on the first 700 kilowatt hours consumed each month from April to September and on the first 1,000 kilowatt hours consumed each month from October until March.

QEC invoices the Government of Nunavut on a monthly basis for the NTPSS subsidy and applies the subsidy directly to qualifying customers’ bills each month. Arctic Energy Fund grants that were earned during the 2024-25 fiscal year amount to $8,359 (compared to $7,437 in 2023-24), booked as income under Government contributions. These grants are designed to offset the related capital expenditures that qualify for the program which aims to help provide more efficient and/or reliable energy in Nunavut.

Annual Report 24-25 58 Other Income (as indicated in the table above) decreased by $897 mainly due to an increase in recoverable projects, interest revenue on the available cash and rent recoveries from staff housing. Overall Total Expenses increased by 4% (compared to a 24.7% increase in 2023-24) mainly from increased overhaul expenses (materials, labour, and travel), as well as increased interest on long-term debt and fuel prices. 2024-25 Audited Financial Statements to Follow

Annual Report 24-25 59 FINANCIAL STATEMENTS QULLIQ ENERGY CORPORATION FINANCIAL STATEMENTS March 31, 2025 Table of Contents Page Management Statement 60 Independent Auditor’s Report 61 Statement of Financial Position 65 Statement of Operations and Accumulated Surplus Statement of Change in Net Debt 67 Statement of Cash Flow 68 Notes to the Financial Statements 69

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Schedule of Tangible Capital Assets 86

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