GREEN ENERGY ACT PLAN OVERVIEW AND DIRECT BENEFITS CALCULATION

Transcription

1 EB-0-0 Schedule Page of 0 GREEN ENERGY ACT PLAN OVERVIEW AND DIRECT BENEFITS CALCULATION Summary and Introduction On September, 00, the Green Energy and Green Economy Act, 00 ( GEA ) was enacted. The GEA amended a number of Acts and Regulations including the Ontario Energy Board Act, ( OEB Act ) and the Electricity Act ( Electricity Act ) to enable distributors to do renewable generation connections and smart grid development. The GEA requires that each licensee develop a GEA Plan. PowerStream is submitting its GEA Plan in accordance with the OEB Distribution System Plans - Filing Under Deemed Conditions of Licence ( Filing Requirements DSP ), EB-00-0 issued March, 00. As part of these guidelines, a materiality threshold test based on a distributor s planned projects related to the connection of renewable generation and/or the development of smart grid is to be used to determine the type of plan to be submitted. If an LDC exceeds the materiality threshold it must file a detailed plan, otherwise a basic plan is required. The materiality threshold is described in Section II of the Filing Requirements DSP: The materiality threshold is reached, for the purposes of these Filing Requirements, in either of the two following circumstances:. The total capital costs of all a distributor s planned projects related to the connection of renewable generation and/or the development of a smart grid in any one year: 0 Are more than $00,000 and exceed % of the distributor s distribution rate base; or Exceed $,000,000.. The total capital costs of all a distributor s planned projects related to the connection of renewable generation and/or the development of a smart grid over five years:

2 Are more than $00,000 and exceed % of the distributor s distribution rate base; EB-0-0 Schedule Page of or 0 0 Exceed $0,000,000. In all other circumstances, a distributor must file a Basic GEA Plan with its cost of service rate application, unless specifically exempted from filing by the Board. PowerStream s annual and five year projected plan for both the connection of renewable generation and smart grid investments does not meet the threshold test for a detailed plan and therefore a Basic GEA Plan is filed as,, Schedule. The calculation of the materiality threshold is shown in the following paragraphs. PowerStream s distribution rate base in 00 was approximately $00.0 million. Applying the guidelines for the materiality threshold, PowerStream results are as follows:. Annual threshold test: PowerStream s annual GEA planned expenditures for the plan period 0-0 are well below the annual threshold test of three percent of the rate base, ($.0 million) or $.0 million in annual investments.. Five year threshold test: PowerStream s GEA planned expenditures for the five year period are well below the threshold test of six percent of the rate base ($.0 million) or $0.0 million in investments over the period. PowerStream s total capital cost for the planned period related to the connection of renewable generation and/or the development of a smart grid amounts to $. million. PowerStream provided its Green Energy Act Basic Plan to the Ontario Power Authority ( OPA ) on February, 0. The OPA letter of comment is included as Appendix C in PowerStream s GEA Plan.

3 EB-0-0 Schedule Page of PowerStream s Green Energy Act Basic Plan includes capital and operating expenditures for the period 0 through 0. The summary of the capital and operating expenditures is presented in the table below. Table : PowerStream Green Energy Act Capital and Operating Expenditures, $000 s Actual Total 0-0 Total 00-0 Capital Renewable Generation, Smart Grid,0 0,00,0, Total Capital,00,00,0,,0 OM&A Renewable Generation Smart Grid ,0, Total OM&A 0,0,, Calculation of Direct Benefits for Customers 0 As per the requirements from the Report of the Board Framework for Determining the Direct Benefits Accruing to Customers of a Distributor Under Regulation 0/0 (EB-00-0, June 0, 00), PowerStream has calculated the direct benefits accruing to PowerStream s customers over the proposed investment period. PowerStream s Basic GEA Plan indicates that the anticipated capital investment needed to enable the connection of FIT generation amounts to $,,000. As per section... of the Board s Report, since PowerStream does not meet the threshold for filing a detailed GEA Plan, PowerStream has used the percentages for Expansion and Renewable Enabling Improvements (REI) investments based on Hydro One Distribution s detailed direct benefit assessment. The provisional percentages, based on the calculation by Hydro One Distribution in their Green Energy Plan (EB-00-00), are as follows: System Expansion % Renewable Enabling Improvements % Report of the Board Framework for Determining the Direct benefits Accruing to Customers of a Distributor under Regulation 0/0, issued June 0,00,p.

4 EB-0-0 Schedule Page of PowerStream s renewable generation connection costs comprise renewable enabling improvements only. These improvements are consistent with the Distribution System Code, section... The calculation of direct benefits to PowerStream Customers is shown in Table below: Table : Calculation of Direct Benefits, $000 s Actual Total 0-0 Total 00-0 Capital spending WiMax Communication Network CIS modifications for FIT Fault Level Reduction and Station programming 0 0 Total, Benefits to PowerStream customers WiMax Communication Network % - - CIS modifications for FIT % Fault Level Reduction and Station programming % Total Direct Benefits To be recovered from Provincial rate payers, 0 Relief Sought Disposition of the Amounts in Deferral Accounts 00-0 In this application, PowerStream is seeking a disposition of amounts relating to the deferral of renewable generation and smart grid capital and OM&A costs, spent until December, 0. Summary of amounts for disposition is presented in Table below.

5 EB-0-0 Schedule Page of Table : 00-0 Smart Grid and Renewable Energy Investment Amounts for Disposition Account Account Descr. % Direct benefits (OEB standard) Total Balance in the account As of Dec., 0 Provincial recovery (00-0) Balance for Disposal REI Capital % $, $, $, REI OM&A 00% $, $ - $, Total Renewable Energy $, $, $,0 Smart Grid - capital 00% $,0 $ - $,0 Smart Grid - OM&A 00% $,0 $ - $,0 Total Smart grid $, $ - $, Total up to Dec., 0 $,0,0 $, $,, PowerStream has included the actual balances to December, 0, net of the Provincial recovery amount, in the Deferral and Variance accounts for recovery. See Exhibit I, Deferral and Variance Accounts, for more details. Rate Protection Provincial Recovery 0 PowerStream requests that per Ontario Regulation 0/0, Section, the rate protection amount $,,000 be included in the calculation for recovery via the IESO protocols. As identified in Table above, the direct benefits that accrue to PowerStream customers regarding renewable expenditures are $,000 with the remaining amounts to be recovered by provincial rate payers. The funding of direct benefits will remain as deferred expenditures to be reviewed by the Board at a future date. Funding Adder 0 Given the magnitude of the spending incurred to date and the ongoing work to be done regarding smart grid demonstration projects, PowerStream is applying for approval of a funding adder which will assist in the interim to fund these expenditures. The funding adder will address the plan period from 0 0 based on smart grid investments of $,0,000 and OM&A expenditures for Smart Grid and REI of $,,000. The funding adder is calculated by estimating the average annual revenue requirement related to PowerStream s proposed spending, divided by the total number of forecasted customers for 0. PowerStream

6 EB-0-0 Schedule Page of calculated revenue requirement for each year of the plan and is requesting the funding adder be set for the plan period 0-0. Instead of changing the adder every year, PowerStream proposes to use the average rate adder of $0.0 per customer per month. PowerStream proposes this adder will be in effect for a four year period. Differences between actual spending and funding collected will be tracked in a variance account to be reviewed and approved for disposition at the end of the plan period.

7 EB-0-0 Schedule Page of Green Energy Act Basic Plan 0 0

8 EB-0-0 Schedule Page of Table of Contents Executive Summary... Introduction... Current Assessment.... The PowerStream Distribution System..... Assets.... Existing Capacity for Generators..... FIT/microFIT Data..... Connected Generators by Territory..... North Distribution System Assessment..... South Distribution System Assessment..... Existing Capacity Summary.... Existing Renewable Generation Expenditures..... Project Summaries... Planned Development.... Projected Renewable Generation Growth /0 FIT MicroFIT Data..... Program Progression Anticipated Generator Connections.... North System Development.... South System Development.... Future Infrastructure Projects and Activities..... Project Summaries..... Project Selection.... OPA Consultation - Pending... Conclusions Renewables.... Planned Spending.... Capacity.... Overall Assessment... Smart Grid... Appendix A Station Capacity for Renewable Generation... 0 Appendix B Project Details...

9 EB-0-0 Schedule Page of. WiMax Communication Network.... Fault Level Reduction Reactors.... Station Programming and Wiring.... Renewable Generation OM&A Manpower Allocation..... Cost Allocation... Appendix C OPA Review Confirmation Letter...

10 EB-0-0 Schedule Page of POWERSTREAM S GEA PLAN 0 0 Executive Summary In accordance with the Ontario Energy Board s filing requirements under condition of Licence, ( PowerStream ) has prepared the following Basic Green Energy Act Plan ( GEA ) as part of its 0 cost of service application. This Basic GEA Plan rationalizes PowerStream s future Renewable Generation expenditures from 0 through 0 by reviewing the state of PowerStream s existing distribution system, studying the current renewable generation load demand, creating a growth forecast, and developing the necessary infrastructure projects to meet the predicted renewable generation growth. The GEA Plan also addresses PowerStream s plans for smart grid spending. Since the inception of the Ontario Power Authority s ( OPA ) Feed-InTariff ( FIT ) program, PowerStream s renewable generation demand has grown by over ten times from MW connected in 00 to. MW connected and pending in 0. Currently there are projects in PowerStream s territory that have applied for a contract with the OPA, of which, projects or.mw have been connected or are in the process of being connected. PowerStream s distribution system is a robust network spread out over the area of eleven municipalities. Past planning and proactive infrastructure projects have resulted in a distribution network well equipped to handle renewable generation. The Northern region is an embedded configuration fed from Hydro One Transformer Stations. Currently there are FIT/microFIT Projects connected or in the process of being connected. Hydro One Transformer Stations ( TS ) TS s provide a significant amount of capacity for potential FIT customers; however there are some potential constraints due to the geographic availability of kv lines for larger projects. The Southern region is a host configuration with eleven PowerStream owned TS. There are currently FIT/microFIT Projects connected or in the process of being connected with significant remaining Station Capacity. There are some limiting factors including Legacy Electronic Protections at some stations and a lack of digital communications with existing generation installations for transfer trip purposes.

11 EB-0-0 Schedule Page of Generally, both North and South PowerStream regions are in the position to accommodate the current demand of renewable generation. Estimations based on PowerStream s renewable generation data from 00, 00, and 0 indicate that the FIT program will follow two years of continued growth and then begin to drop off and stabilize. In order to accommodate and manage the renewable generation demand, PowerStream has identified four necessary expenditures for 0-0. The following table provides a summary of the project spending for 00, forecasted 0 spending, and expected 0 to 0 spending by PowerStream s GEA Plan. Capital Projects WiMax Communication $,0 $,0 $, Network CIS modifications for FIT $, Fault Level Reduction Reactor - - $0,- $, MTS# Fault Level Reduction Reactor $, MTS# Station Programming and Wiring $,0 $,00 $,00 $,00 OM&A Renewable Generation OM&A $0, $,0 $, $,0 $, $, $, Total $, $, $0,0 $,00 $, $, $, 0 Introduction As part of the 0 cost of service application ( PowerStream ) must file with the Ontario Energy Board a Green Energy Act Plan ( GEA Plan ). Since PowerStream s planned system investments, related to the connection of renewable generation and smart grid within the 0 0 years, are below the materiality threshold, a Basic GEA Plan has been filed.

12 EB-0-0 Schedule Page of 0 0 PowerStream s Basic GEA Plan is intended to provide information, to the Board and interested stakeholders, regarding the readiness of PowerStream s distribution system to connect renewable generation and future expansion requirements or reinforcements necessary to accommodate renewable generation demand. PowerStream s Basic GEA Plan covers a five year horizon from 0 to 0, and includes information regarding the Capital Expenditures PowerStream intends to make and any OM&A expenses PowerStream expects to incur during this time frame. PowerStream is seeking funding for costs related to the connection of renewable generation and smart grid investments from ratepayers. PowerStream s Basic GEA Plan contains detailed costing information for specific projects for the five year horizon. PowerStream s Basic GEA Plan contains two main elements:. Current assessment of PowerStream s distribution system based on a Northern and Southern region geographical context;. Planned development of the system to accommodate renewable generation connection based on a Northern and Southern region geographical context. Current Assessment. The PowerStream Distribution System is the second largest municipally-owned electricity distribution company in Ontario, providing service to residential and business customers in Alliston, Aurora, Barrie, Beeton, Bradford West Gwillimbury, Penetanguishene, Markham, Richmond Hill, Thornton, Tottenham and Vaughan.

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14 EB-0-0 Schedule Page of 0.. Assets PowerStream owns and operates distribution assets valued at $0. million* as of December, 00. A distribution system consisting of - Overhead circuit wires:, km Underground cable:,0 km Transformer stations: Municipal substations: Transformers: 0, Switchgear:, Poles and pole structures:, *Source: powerstream.ca 0. Existing Capacity for Generators.. FIT/microFIT Data As of November 0, PowerStream has connected twenty-three Feed-In Tariff (FIT) and MicroFIT projects for a total of.0mw of generation (item S from table). In addition, there are projects, totaling.mw (S), that have been approved by PowerStream for connection and are currently being constructed. PowerStream s FIT and microfit breakdowns are seen below: FIT Projects Item Process Description Project Count Capacity (kw) F Total FIT applications received by OPA, F Total FIT applications approved by OPA 0,0 F Total FIT applications approved by PowerStream,0 F Total FIT projects connected by PowerStream,0

15 EB-0-0 Schedule Page of MicroFIT Projects Item Process Description Project Count Capacity (kw) µ Total microfit applications received by OPA 0, µ Total microfit applications approved by OPA,0 µ Total microfit applications approved by PowerStream, µ Total microfit projects connected by PowerStream 0 FIT/microFIT Summary Item Process Description Project Count Capacity (kw) S Total project applications received by OPA (F+ µ),0 S Total projects connected or about to be connected by PowerStream. (F+ µ), S Total projects connected by PowerStream (F+ µ),00 S Total projects approved but not yet connected by PowerStream (S-S),0 S Remaining projects still to be connected (S-S), 0 PowerStream s renewable generation connections (S) account for only % of the total applications (S) submitted to the OPA under the FIT and microfit programs. Therefore, % of the FIT and microfit applications received by the OPA are still in the review phase with either the OPA or PowerStream. The connected or about to be connected generators are dispersed throughout PowerStream s territory. Projects are located predominately in Markham, Richmond Hill, Barrie and Vaughan however, there are also scattered projects located in the smaller communities of Aurora, Alliston, and Bradford... Connected Generators by Territory The following table breaks down FIT and microfit Generators by geographic region: FIT microfit Projects Generation Generation Projects (kw) (kw) Northern Allliston - - Region Barrie, 0

16 Souther n Region Projects FIT Generation (kw) Projects microfit Generation (kw) Beeton Bradford 0 Penetang - - Thornton Tottenham 0 Northern Sub Total, Aurora Markham,0 Richmond Hill, Vaughan,0 0 Southern Sub Total 0,0, Total Projects,0, EB-0-0 Schedule Page 0 of The following illustration identifies FIT Generator installations relative to PowerStream s territory:

17 EB-0-0 Schedule Page of * Penetanguishene currently has no FIT generation and is omitted from the illustration above.

18 EB-0-0 Schedule Page of.. North Distribution System Assessment PowerStream North consists of the municipalities of Alliston, Barrie, Beeton, Bradford West Gwillimbury, Penetanguishene, Thornton, and Tottenham. The North area contains forty-two Municipal Stations and six Hydro One owned Transformer Stations ( TS ). Due to the size of FIT projects, most are connected directly to Hydro One TS s. Station Capacity: PowerStream North currently has ninety-one FIT and microfit projects that are connected or about to be connected to four of Hydro One s TS s, resulting in the following TS allocation and capacity: Connected Transformer Station Hydro One Owned TS Thermal Capacity (kw) (Max Rating) Hydro One Allocated Capacity (kw) PowerStream Allocated Capacity (kw) Estimated Remaining TS Capacity (kw) EVERETT TS,00 0 0,00 HOLLAND TS,00,0 0,000 MIDHURST TS,00,00,00 BARRIE TS,00,0 0 0,00 Maximum North Capacity (kw),000 Max* 0 *Note: PowerStream North s Potential Capacity incorporates upstream Hydro One TS Capacity. Therefore, the stated capacity is shared with Hydro One on a first come, first serve basis. Limiting Factors: Customer accessibility to Hydro One Transformer Stations in and around the Barrie area provides a significant attraction for FIT projects.

19 EB-0-0 Schedule Page of 0 0 There are potential access constraints for larger projects connecting in the North. Typically, PowerStream will require projects greater than MW to connect directly to kv lines which are only available in specific locations throughout the Northern region. System Challenges and Opportunities: Powerstream requires FIT projects greater than 0kW to maintain communication with PowerStream s control room via a WiMax Communication Network for the purpose of Data Monitoring and Generator Transfer Trip. There are currently seven FIT projects greater than 0kW that will require connection to the WiMax Communication Network. They are located in Barrie (five), Tottenham (one), and Bradford (one). In order to accommodate the Northern FIT Generators, PowerStream began construction of two new WiMax Communication towers located in Barrie and Alliston. Construction of the Barrie tower was completed in 0 and the Alliston tower will be constructed in 0. The WiMax project is discussed further in section.. and expanded project details can be found in Appendix B. North Assessment summary PowerStream North has the existing Station Capacity and Distribution infrastructure planned or in place to accommodate the current demand for Renewable Energy projects... South Distribution System Assessment PowerStream South consists of the municipalities of Aurora, Markham, Richmond Hill, and Vaughan. The South area contains eleven PowerStream owned Transformer Stations and six Hydro One Transformer Stations. Station Capacity: PowerStream South currently has FIT and microfit projects that have been connected or about to be connected, resulting in the following TS allocation and capacity:

20 EB-0-0 Schedule Page of PowerStream Owned TS: Connected Transformer Station PowerStream Owned TS Capacity (kw) (Max Rating) Current Load from FIT projects (kw) Remaining TS Capacity (kw) VAUGHAN MTS #,00,00,00 VAUGHAN MTS # E,00,000,00 VAUGHAN MTS # 0,00,00,00 VAUGHAN MTS #,00,00 0,00 RHMTS#,000,00 0,00 RHMTS#,000,00,00 MARKHAM MTS #,0,0 0 MARKHAM MTS #,0,0 0 MARKHAM MTS #,00 00,000 MARKHAM MTS # E,00 00,000 MARKHAM MTS #,00 00,00 Max PowerStream South Capacity (kw) 0,00 Max Hydro One Owned TS: Connected Transformer Station Hydro One Owned TS Thermal Capacity (kw) (Max Rating) Hydro One Allocated Capacity (kw) PowerStream Allocated Capacity (kw) Remaining TS Capacity (kw) AGINCOURT TS,00,00 0,00 ARMITAGE TS DESN,00, ,00 BUTTONVILLE TS,00,00,00,00 FINCH TS DESN 0,00,0 0,00 LESLIE TS DESN,00,00 0,00 WOODBRIDGE TS DESN,00,00 00,000 Maximum Hydro One South Capacity (kw),00 Max* *Note: PowerStream South s Potential Capacity incorporates upstream Hydro One TS Capacity. Therefore, the stated capacity is shared with Hydro One on a first come, first serve basis. Limiting Factors: Two Transformer Stations in Markham (Markham MST # and #) currently have high fault levels due to their close proximity with Parkway TS, which limit the number of

21 EB-0-0 Schedule Page of 0 generators that the stations can accommodate. For 0, PowerStream will be installing Fault Level Reactors to increase the overall capacity of these stations. Project details are discussed further in Appendix B. System challenges and opportunities: PowerStream requires FIT projects greater than 0kW to maintain communication with PowerStream s control room via a WiMax Communication Network for the purpose of Data Transfer and Generator Tripping. There are currently forty-seven FIT projects greater than 0kW that require connection to the WiMax Communication Network in PowerStream s south region. PowerStream South s Communication infrastructure construction upgrades began in 0 and are scheduled to be completed in 0. Further project details are discussed in section.. and Appendix B. South Assessment summary: PowerStream South has the existing Station Capacity and Distribution infrastructure planned or in place to accommodate the current demand for Renewable Energy projects... Existing Capacity Summary Maximum Remaining Capacity for Renewable Resources: Max South Capacity (kw) (PowerStream TS) 0,00 Max South Capacity (kw) (HONI TS),00 Max North Capacity (kw) (HONI TS),000 PowerStream s Maximum Remaining Capacity for Renewable Generation (kw),000 A detailed list of Renewable generation load by Station Feeder is outlined in Appendix A. 0. Existing Renewable Generation Expenditures The following tables summarize the Renewable Generation expenditures incurred in 00 and 0, or budgeted for 0-0.

22 Capital Projects Total EB-0-0 Schedule Page of WiMax Communication Network $,0 $,0 $, - $0, CIS modifications for FIT -, - - $, Fault Level Reduction Reactor - MTS# - 0, $,0 - $, Fault Level Reduction Reactor - MTS# - - $,0 - $,0 Station Programming and Wiring $,0 $,0 Total Capital $,0 $0, $, $,0 $,, OM&A Total Renewable Generation OM&A $0, $,0 $, $,0 $, Total $, $, $0,0 $,00 $,,0 Individual project summaries are provided in the following sections... Project Summaries The following tables provide summaries of PowerStream s Projects between 00 and 0. Expanded Project details are available in Appendix B. Year Class Project Title Location Expenditure WiMax - Proof of Concept Markham $,0 00 Capital Project Project Scope: Construct a WiMax proof of concept model to confirm the functionality and reliability of WiMax for communicating with renewable generation facilities. Justification: Confirm technology and utility application prior to investing in a WiMax Network. Year Class Project Title Location Expenditure WiMax Communication Network - Yr Vaughan, Markham, Barrie $,0 0 Capital Project Project Scope: Establish a WiMax Communication Network for FIT Generators with nodes located in Vaughan, Markham, and Barrie (Year ). Justification: The WiMax Communication Network is required to provide communications for the remote trip and monitoring of FIT generators 0kW and larger in the PowerStream service area.

23 EB-0-0 Schedule Page of Year Class Project Title Location Expenditure Customer Information System Modifications for FIT Vaughan $, 0 Capital Project Project Scope: Update the Customer Information System ( CIS ) to accurately track and bill renewable generators. Justification: The existing CIS was not capable of managing Renewable Generation projects and upgrades were required to enable CIS to oversee generator sizes, configuration types, contract dates and billing rates. Year Class Project Title Location Expenditure Fault Level Reduction Reactor - MTS# Markham MTS# $0, 0 Capital Project Project Scope: Contract Kinectrics Inc to perform a Feasibility/Impact Study for the implementation of a Series Reactor at Markham TS#. Justification: Renewable Generation Capacity at Markham TS# is limited due to high available fault levels at the station. Implementing a Series Reactor will increase the available station capacity however; an Engineering study is required to confirm there will be no ill effects to the distribution grid. Year Class Project Title Location Expenditure WiMax Communication Network Yr Aurora, Alliston $, 0 Capital Project Project Scope: Establish a WiMax Communication Network for FIT Generators with two nodes located in Aurora and Alliston. (Year ). Justification: The WiMax Communication Network is required to provide communications for the remote trip and monitoring of FIT generators 0kW and larger in the PowerStream service area. Year Class Project Title Location Expenditure Fault Level Reduction Reactor - MTS# Markham MTS# $,0 0 Capital Project Project Scope: Install Fault Level Reduction Reactor to improve fault current levels at Markham TS# in order to accommodate FIT Generator connections. Justification: The available fault level at Markham TS# is high due to the close proximity of Parkway TS. Installing a current limiting reactor stack in series with the bus tie circuit breaker will effectively reduce the short circuit current to manageable levels.

24 EB-0-0 Schedule Page of Year Class Project Title Location Expenditure Fault Level Reduction Reactor - MTS# Markham MTS# $,0 0 Capital Project Project Scope: Install Fault Level Reduction Reactor to improve fault current levels at Markham TS# in order to accommodate FIT Generator connections. Justification: The available fault level at Markham TS# is high due to the close proximity of Parkway TS. Installing a current limiting reactor stack in series with the bus tie circuit breaker will effectively reduce the short circuit current to manageable levels. Year Class Project Title Location Expenditure Station Programming and Wiring Buttonville TS and Others $,0 0 Capital Project Project Scope: Feeder Protection upgrade at Buttonville TS and PowerStream TS's to accommodate Generator transfer trip scheme. Justification: Existing Feeder Protection designs within Stations are not configured to output a trip command to the remote tripping scheme. Buttonville TS will require relay upgrades and several PowerStream TS's require communication wiring upgrades. Year Class Project Title Location Year Expense 00 0, Renewable Generation OM&A Head Office and Field OM&A 0 $,0 0 $, 0 $,0 Scope: The Renewable Generation program is managed by one full time Engineer who dedicates % of his time. Two full time contract Engineers coordinate customer applications, perform Connection Impact Assessments, and approve project designs. Service Layouts and Metering are handled by existing positions through varying degrees of effort. Justification: Generator Designs must be reviewed and approved by PowerStream Engineering prior to connection to ensure quality and safety. Planned Development PowerStream has projected Renewable Generation growth for 0-0 based on existing FIT data and industry expectations. In preparation for this future demand, a corresponding five year infrastructure plan has been developed to accommodate Generator growth. The following sections outline projected growth, planned projects, and implementation timing. 0. Projected Renewable Generation Growth Renewable Generation growth for 0-0 has been estimated based on PowerStream s existing FIT/MicroFIT data from 00-0 and the expected evolution of the OPA s FIT program.

25 EB-0-0 Schedule Page of.. 00/0 FIT MicroFIT Data As of November 0, PowerStream customer FIT and microfit submissions to the OPA have totaled applications, grossing over MW of potential generation. The 00-0 application data below illustrates a strong average monthly growth rate to date. FIT/microFIT Application Growth (00-0 Cumulative) # MicroFIT Projects # FIT Projects Applications Jan Feb March April May June July August September October November December Jan Feb March April May June July August Sept Oct 00 0 Year/Month 0 Source: OPA LDC Portal Although Renewable Generation installations in PowerStream s service area have been increasing, they are mainly focused on roof top solar applications. Renewable Generation by source is broken down in the following table: Fuel Type FIT MicroFIT Solar photovoltaic - Roof Top 0 Solar photovoltaic - Ground Mount Wind 0 Bio Gas 0 Biomass 0 The data also shows that generator applications focus mostly on MicroFIT, with less than a quarter of the applications focused on FIT. The project size distribution is seen below which illustrates limited interest in projects over 0kW and no interest in projects greater than 00kW.

26 EB-0-0 Schedule Page 0 of Project Size Distribution (Connected or about to be connected Generators) Projects (Micro) >00 Generator Size (kw) 0 The balance between residential and commercial applications between 00 and 0 is another notable trend. In 0, more applications came from commercial businesses than home owners indicating that the early environmentally conscious adoption phase is nearing its end. PowerStream s regions are predominantly made up of urban areas which are ideal for roof top solar, but less attractive larger ground mount solar or wind installations. Therefore, because there is limited potential for major wind or other ground mount projects, and economically viable roof tops are finite, installations are expected to become constrained over the next five years. This assumes that FIT program pricing continues to provide an eleven year payback for commercial rooftop installations... Program Progression In order to create a five year projection of FIT growth in PowerStream s distribution area, some assumptions were made regarding the program s future direction. The OPA s FIT Program has been relatively unchanged since its inception in 00. Following three years of Renewable Generation experience, valuable insight has been gained into the public demand for green energy and potential capacity constraints

27 EB-0-0 Schedule Page of caused by the distribution grid. Based on these lessons learned, it is expected that the OPA will make adjustments to the FIT program in 0, considering some of the following potential changes: Price Point Drop to reflect the current market per unit costs of retail generation equipment. New Funding Model to make smaller FIT projects more financially feasible. Generation Caps to slow the FIT program down to manageable levels but still maintain the current job creation model. 0 The above items were taken into consideration when developing PowerStream s five year Anticipated Generator Connections model... Anticipated Generator Connections Based on PowerStream s 00-0 FIT/microFIT data and future assumptions regarding the OPA s FIT program, it is expected that application submissions will remain steady through 0, begin to decline in 0, and continue to descend through 0. The following table outlines the expected decline: Year Projects % of % 0 00% 0 % 0 % 0 % 0 %

28 EB-0-0 Schedule Page of The anticipated year over year submission trend is shown below: Anticipated Yearly FIT/MicroFIT applications (00-0 Actual, 0-0 Estimated) Applications Year Total Applications Applications/year The OPA currently has Renewable Generation applications totaling.mw for PowerStream s service territory. Based on PowerStream s anticipated FIT connection model, projected growth for Renewable Generation in PowerStream s territory will pursue the following trend: Projected Renewable Generation Growth (MW Cumulative) MW Year

29 EB-0-0 Schedule Page of Following steady growth through 0, the Renewable Generation growth rate is expected to peak and begin to decline in 0 through 0. PowerStream s Renewable Generation load is expected to reach.mw by 0.. North System Development The OPA currently has Renewable Generation applications totaling.mw for PowerStream North. Based on projected growth PowerStream expects this number to reach. MW by 0. The following graph illustrates Renewable Generation growth in the North between 00 and 0: North Renewable Generation Growth (MW Cumulative) MW Year 0. South System Development The OPA currently has Renewable Generation applications totaling.mw for PowerStream South. Based on projected growth PowerStream expects this number to reach. MW by 0. The following graph illustrates Renewable Generation growth in the South between 00 and 0:

30 EB-0-0 Schedule Page of South Renewable Generation Growth (MW Cumulative) W M Year. Future Infrastructure Projects and Activities The following is a summary of Renewable Generation expenditures planned for 0 to 0. Capital Projects Total WiMax Communication Network $, $, Fault Level Reduction Reactor - MTS# $, $,0 Fault Level Reduction Reactor - MTS# $, $,0 Station Programming and Wiring - $,0 $,00 $,00 $,00 $,0 OM&A Total Renewable Generation OM&A $, $,0 $, $, $, $,0 Total $0,0 $,00 $, $, $, $,, Individual Project details are provided in the following sections... Project Summaries The following tables provide summaries of PowerStream s projects between 0 and Project details are located in section., Existing Renewable Generation Expenditures. Expanded project details are available in Appendix B.

31 EB-0-0 Schedule Page of Year Class Project Title Location Expenditure Station Programming and Wiring Four PowerStream TS's $,00 0 Capital Project Project Scope: Program Feeder Protections and install Fibre communication to accommodate Generator transfer trip scheme at four Transformer Stations. 0 activity includes developing a transfer trip communication standard for PowerStream s relays. Justification: Existing Feeder Protections at Stations are not programmed to output a trip command to the remote tripping scheme. Costs include consulting, programming, materials and installation. Year Class Project Title Location Expenditure Station Programming and Wiring Four PowerStream TS's $,00 0 Capital Project Project Scope: Program Feeder Protections and install Fibre communication to accommodate Generator transfer trip scheme at four Transformer Stations. Justification: Existing Feeder Protections at Stations are not programmed to output a trip command to the remote tripping scheme. Costs include consulting, programming, materials and installation. Year Class Project Title Location Expenditure Station Programming and Wiring Three PowerStream TS's $,00 0 Capital Project Project Scope: Program Feeder Protections and install Fibre communication to accommodate Generator transfer trip scheme at three Transformer Stations. Justification: Existing Feeder Protections at Stations are not programmed to output a trip command to the remote tripping scheme. Costs include consulting, programming, materials and installation. Year Class Project Title Location Year Expense 0 $, Head Office and Renewable Generation OM&A 0 $, Field 0 $, 0 Scope: The Renewable Generation program is managed by one full time Engineer who dedicates % of 0 OM&A his time. Two full time contract Engineers coordinate customer applications, perform Connection Impact 0 Assessments, and approve project designs. Service Layouts and Metering are handled by existing positions through varying degrees of effort. Justification: Generator Designs must be reviewed and approved by PowerStream Engineering prior to connection to ensure quality and safety... Project Selection Due to a limited number of planned renewable enabling projects, an evaluation method to determine implementation prioritization is not required. Project timing has been determined based on renewable growth projections and individual station capacity demand.

32 EB-0-0 Schedule Page of. OPA Consultation PowerStream s five year Basic GEA plan has been reviewed and acknowledged by the OPA. The OPA confirmation letter can be found attached in Appendix C. Conclusions Renewables. Planned Spending Total Capital Projects $,0 $0, $, $,0 $,00 $,00 $,00 $,, Renewable Generation OM&A $0, $,0 $, $,0 $, $, $, $, Total $, $, $0,0 $,00 $, $, $, $,, The preceding table summarizes PowerStream s year to year Renewable Generation spending between 00 and 0. Based on generation demand projection, PowerStream requires $,, to implement the infrastructure and manpower necessary to accommodate Renewable Generation to Capacity Based on a calculated remaining maximum capacity of MW and a projected load of only.mw by 0, PowerStream feels confident that it has capacity in place to accept future renewable generation projects.. Overall Assessment PowerStream s proactive Renewable Generation planning since 00 has created a solid foundation for generator connections in 0, and has developed a robust strategy to accommodate generation in the next five years.

33 EB-0-0 Schedule Page of 0 0 Smart Grid When the Green Energy and Green Economy Act, 00 ( GEA ) was given Royal Assent one of the provisions was the addition of an objective to the Ontario Energy Board Act, section.; the facilitation of the implementation of a smart grid in Ontario. The legislation also included a definition of smart grid to be reflected in The Electricity Act (Subsection.) as follows: For the purposes of this Act, the smart grid means the advanced information exchange systems and equipment that when utilized together improve the flexibility, security, reliability, efficiency and safety of the integrated power system and distribution systems, particularly for the purposes of, (a) enabling the increased use of renewable energy sources and technology, including generation facilities connected to the distribution system; (b) expanding opportunities to provide demand response, price information and load control to electricity customers; (c) accommodating the use of emerging, innovative and energy-saving technologies and system control applications; or (d) supporting other objectives that may be prescribed by regulation. For PowerStream, Smart Grid is the application of new technology to produce a more efficient and reliable distribution system, to enable renewable generation and to empower customers with more control over their energy usage. The Smart Grid touches most aspects of PowerStream s operations and enables changes in the way that PowerStream plans and operates its network and serves its customers. PowerStream over the last twenty years has been designing and building its distribution system to facilitate the use of smart technologies in the efficient use and operation of its system. PowerStream s distribution network is somewhat unique in Ontario. It reflects an advanced design philosophy that was established with the construction of the first transformer station to be built, owned and operated by a municipally-owned Ontario local distribution companies in. Owning and operating eleven transformer stations required PowerStream to rethink traditional

34 EB-0-0 Schedule Page of methods of distribution network design, technologies and operational management in order to ensure the successful operation and integration of its distribution system to the overall grid. Smart technologies which have allowed PowerStream to integrate and operate its distribution network have been part of PowerStream s regular capital program for many years. Over the past twenty years PowerStream has installed and effectively operated electricity distribution infrastructure and equipment that is consistent with the current description of Smart Grid. These technologies include: 0 Advanced Protection and Control Advanced Station Maintenance Supervisory Control And Data Acquisition ( SCADA ) system - Control Room covering PowerStream s entire service territory Advanced fibre-optic communications network (SONET Ring) Distribution automation Outage Management System ( OMS ), and Smart Meter and a two way Advanced Metering Infrastructure ( AMI ) communication system. 0 Based on their successful application and proven performance, these technologies have moved far beyond the pilot stage and are now essential components of PowerStream s network and operations. PowerStream is fortunate to have a distribution network that is already relatively smart. This advanced network and operational experience provide an ideal platform to realize immediate benefits from future Smart Grid investments. PowerStream frequently shares its experience with other LDCs including the Coalition of Large Distributors ( CLD ) and Hydro One at their regular Smart Grid Information exchange meetings. PowerStream s Smart Grid Strategy PowerStream s initial Smart Grid Strategy and Plan was prepared by a cross-functional Smart Grid Strategy Task Force comprised of senior department representatives from across the company and approved by its Board of Directors in September 00. The Strategy and Plan

35 EB-0-0 Schedule Page of 0 0 were subsequently updated and approved by the Board of Directors in October 0. This strategy reflects the vision for an Ontario Smart Grid as identified by the Independent Electricity System Operator ( IESO ) Smart Grid Forum in 00 and updated in 0 and is fully responsive to the requirements of the GEA and the Ontario Energy Board s Smart Grid policies/rules. PowerStream s Strategy ensures that Smart Grid initiatives provide demonstrable value to PowerStream customers and to Ontario s broader electricity industry and leverages the capabilities of PowerStream s smart meter infrastructure. The starting point in the development of PowerStream s Smart Grid Strategy was, and will continue to be, PowerStream s corporate vision: PowerStream will be a socially responsible company, committed to the environment and sustainable growth, leading the way into the future with boldness, innovation and industry best-in-class performance. This vision drives PowerStream s planning and day-to-day operations and also drives its Smart Grid Strategy. PowerStream s 0 0 Smart Grid Plan covers a broad range of initiatives that PowerStream s Smart Grid Task Force and others within PowerStream have put forward to support PowerStream s Smart Grid Strategy PowerStream s Smart Grid Plan With the exception of Smart Grid projects that are classified as pilot or demonstration initiatives, all Smart Grid initiatives are an integral part of PowerStream s Asset Investment Strategy and are assessed with all other capital requirements of the company through the optimization process. No preferential treatment is given to these Smart Grid initiatives. As part of its prudence or good-practice check, Smart Grid initiatives are required to show benefit to the organization or customer over the operational life-time of the asset, similar to all other initiatives.

36 EB-0-0 Schedule Page 0 of The following figure illustrates the relationship between normal rate based capital initiatives and smart grid initiatives. Proposed Deferral Accounts Projected Capital Spending Non Smart Grid Related Smart Grid 0 0 Relationship of Smart Grid Projects to Stand Capital Initiatives As shown in the block diagram above the Smart Grid Plan comprises all of the projects and initiatives in Boxes and. Those initiatives in Box represent initiatives in PowerStream s normal capital budget process that either are smart in whole or have a smart component aspect or benefit. For example, replacement switchgear installed with a motor operator and a communications device to talk to the control room represents distribution automation. Replacement technologies where there was no automation previously are determined to be a partial Smart Grid initiative. The Smart Grid initiatives included in PowerStream s projected capital spending (Box ) compete with all other capital projects being considered by PowerStream. Another key advantage of treating proposed Smart Grid initiatives through the normal corporate capital prioritization and planning process is that synergies between Smart Grid initiatives and other capital projects can be identified, captured and evaluated in the capital plan. Initiatives in Box include pilot and demonstration initiatives representing technologies that have yet to be accepted for use throughout the distribution system. In many cases, these technologies will eventually become standard distribution system technology, however in some cases, the pilot project may demonstrate that the technology is not suitable for further advancement to the system.

37 EB-0-0 Schedule Page of Spending and Initiatives Covered in Smart Grid Plan Proposed Deferral Accounts Projected Capital Spending Non Smart Grid Related Smart Grid 0 PowerStream s Digital Fault Indicator initiative is an example of how successful demonstration pilots are expected to transition to implementation as a viable smart grid technology to be incorporated into the distribution network system design and operation. If successful, this technology will significantly improve the response to system failures, reduce maintenance and crew roll-out costs, and provide fault data to assist in forensic analysis of failures. This project started in 0 and will be completed in 0. Rate-Based Smart Grid Initiatives The table below shows the 0 and 0 capital budget by number of initiatives and dollar value. As shown, on a dollar basis, smart grid projects represent less than 0% of PowerStream s total budgeted capital expenditures for the two years. PowerStream's Capital Budget for 0 & # of Projects $000 # of Projects $000 Comment [A]: I think this table should be updated to have the new capital costs for 0. 0 Non-Smart Grid Capital Projects,00 0, Projects with partial SG Component 0,, 00% Smart Grid Projects,0, Total Capital Budget 0,00 0, Total Smart Grid Projects,,0 Percentage of Total Capital Budget The seven Smart Grid investment categories provided in the Table below are consistent with those used by the IESO Smart Grid Forum and the OEB in its evaluation and assessment of

38 EB-0-0 Schedule Page of LDC GEA (and Smart Grid) Plans. The projected costs provided in this table are for initiatives and technologies that are part of PowerStream s rate based capital budget for 0 and 0. The forecast years of this plan (0 0) are based on the assumption that total Smart Grid initiative spending is approximately 0% of the total capital spending in those years. PowerStream s Smart Grid Rate Based Capital Plan SG Technology Categories. Consumer Technologies $000 # of Projects $000 # of Projects Year Total $000 $000 $000 $000 $000,,,0. Distribution,,,0,,,,. Distributed Energy Resource Transmission Communications 0,0,0,. Electric Vehicles Innovation & The Economy Totals,,,0,0,0 0,0, 0 Smart Grid Pilots and Demonstrations Initiatives As has been PowerStream s practice in the past, successful Smart Grid pilots and demonstrations projects (Box ) are expected to transition in the future to become an integral part of PowerStream s capital program (Box ). As per OEB Filing requirements: Distribution System Plans filing under deemed Conditions of Licence (EB-00-0), currently the Smart Grid development activities and expenditures should be limited to SG demonstration projects, Smart Grid studies or planning exercises and Smart Grid education and training. Accordingly, the following expenditures are included in the PowerStream Smart Grid Plan. These activities are incremental to the projects that were optimized and included in the core capital plan.

39 EB-0-0 Schedule Page of Smart Grid pilot and demonstration type initiatives are undertaken to demonstrate or trial the suitability of a technology or to understand the impact to PowerStream s distribution system. These initiatives, started in 00, are undertaken only if it is clear that such technology can be scaled-up to apply to the rest of the distribution system for the end benefit of the customer should the trail/demonstration be deemed successful. Five Year Incremental Smart Grid Capital Spending $ 000 Smart Grid Project Title Smart Grid Category Five Year Total ( - ) Net Net Net Net Net Net Electric Vehicle Smart Charger Trial Electric Vehicles Grid Energy Management Distribution Data Mining Communications Home Energy Management Trial Consumer Technologies Storage Technologies Distr. Energy Resources Digital Fault Indicators Distribution Totals, ,0 0 Demonstration/trail expenditures are incremental to activities currently included in rates and are recorded in a Smart Grid Capital Deferral Account Smart Grid Studies, Planning, Education and Training Expenditures in this category include the development of PowerStream s Smart Grid Strategy, participation in Smart Grid conferences and summits, and formal studies relating to the development and /or application of Smart Grid technologies to the distribution system. Any reports or findings from these type of activities are openly shared amongst other LDC s or other interested parties.

40 EB-0-0 Schedule Page of 0 Smart Grid Studies, Planning, Education and Training expenditures are incremental to activities included in rates and are recorded in a Smart Grid OM&A Deferral Account. Some of the 0 activities under this heading include: - Queen s University Study Plug-In Electric Vehicle Grid Loading completed in April 0 - University Of Waterloo study Benefits of Rotation Inertia Demonstration Project to PowerStream s Grid started in 0with completion in 0 - Georgian College electric vehicle partnership started in 0 and continuing in 0 - multiple presentations to PowerStream Staff on smart grid technologies PowerStream s Smart Grid OMA Spending Expenditure Year Total $000 $000 $000 $000 $000 $000 $000 $000 Manage Smart Grid Strategy Conferences and Summits 0 0 Miscellaneous 0 Totals ,0 Description of Smart Grid Pilot and Demonstration Initiatives Electric Vehicle Trial In 00, PowerStream undertook an Electric Vehicle ( EV ) Smart Charger demonstration trial in partnership with Better Place Inc., a leading electric vehicle services provider. This project demonstrates smart charging network capabilities, remote monitoring and control with user identification, validation and support. It will also provide stakeholder education and a limited scale demonstration site for government, business and the public and develop PowerStream s

41 EB-0-0 Schedule Page of 0 0 system operational experience with EV s. This project also demonstrates good environmental leadership. Three EV smart charger stations have been installed at each of PowerStream s facilities in Barrie, Markham and Vaughan. Two purchased Nissan LEAF EV have been deployed between these centres as part of PowerStream s pool fleet. Veridian Connections are also participants in this EV trial with PowerStream and Better Place. PowerStream will use this trial to better understand the impact of EV technology on its distribution system assets and will investigate a number of potential business models for the LDC going forward. Staff expect the same level of activity in this trail for the next two years, with some tapering off of activities over the final three years of this plan. Areas of other EV investigations include smart charger control, vehicle-to-grid technology, EVs as storage devices, EV for load shifting purposes and re-purposing of spent EV battery equipment. While there is much information from numerous trials associated with EV technology throughout the industry, for the most part, the nature and the detail of the issues are unique to PowerStream s distribution system and system operation. Grid Energy Management Program Using one of the twenty distribution feeders in the Lazenby Transformer Station this project would install smart meter technology in each of the transformer locations to provide information on the electricity supply along this feeder. This information would be retrieved from PowerStream s operational data store and used to report a number of electrical performance characteristics to determine efficiency of the feeder performance. The characteristics include: i. Advanced Metering Infrastructure ( AMI ) system performance by the reduction of communication latency issues of the Outage Management System ( OMS ) via the reduction of AMI traffic by 0 to 0 % of present traffic volumes ii. alarm and indication of low voltage and outage conditions iii. transformer energy loading profile (kwh s versus time of day)

42 EB-0-0 Schedule Page of 0 0 iv. measuring and reporting line losses from transformer to residential meter v. power factor of the total transformer load vi. KVA loading of transformer (KVA versus time) vii. transformer loading profile (KVA versus time of day) to allow identification of any transformer overloaded for any amount of time (A monthly report of overloaded transformers could provide information for remedial action prior to transformer failure) viii. phase current balancing to three phase feeder supply to subdivision ix. feeder load reconciliation to the station feeder that will permit calculation of feeder losses, feeder power factor, feeder phase balance, and feeder load profiling x. identification of power diversion (theft) by reconciling loads connected to transformer In 0, it is expected that this trial will be expanded somewhat over its 0 program as staff determine if this technology can be used to significantly reduce frequency bandwidth capacity requirements and improve latency issues on the AMI systems during the reporting of customer outages on the OMS. This project provides powerful tools to operations staff and planners to better understand and optimize the distribution system operation. It is expected that, if this technology is suitable for expansion to the other areas of the distribution system without detrimental effects to the performance of the existing AMI system, then any planned expansion of this technology past 0 will be achieved via PowerStream s normal rate-based capital expenditure process. The scope and the results of this demonstration project have been shared with Hydro One and the CLD at regular Smart Grid information exchange meetings. Data Mining The Smart Meter/AMI system collects an enormous amount of data on customer energy usage, power quality and system performance. To be useful, this data must be made accessible to several key departments within PowerStream, namely System Planning, Engineering Design and Operations Control.

43 EB-0-0 Schedule Page of 0 0 Over the five year plan period, PowerStream, with the assistance of contract personnel, will develop user friendly Geographic User Interface ( GUI ) type database queries to provide easy access to those personnel requiring this data. This real information on customer loading and operational performance (outages, voltage levels, power quality, system & equipment loading, efficiency and losses) will enhance existing tools used by technical staff and provide more comprehensive and accurate information for planning, design and operational purposes. This project will use data accumulated form Smart Meters, currently stored in an Operational Data Store ( ODS ) which is managed by Savage Data located in Thunder Bay, Ontario. PowerStream staff anticipates the development of this application technology will continue throughout the five year period of this plan. This project will provide better information to staff and customers and will be a powerful tool in optimizing the performance of existing operational technologies such as GIS, CIS, SCADA, and AMI systems. Home Energy Management Trials (Behind the Meter SG Applications) Recently, the provincial government, the Ontario Energy Board and the IESO Smart Grid Forum have placed an increased emphasis on Home Energy Management ( HEM ) applications and have suggested that LDC s participate in some manner. Over the next five year period, PowerStream intends to provide Smart Grid information and opportunities to the customer and to provide in-home demonstration initiatives to demonstrate this technology. Working with the IESO and using a number of residential homes in its service territory, PowerStream will undertake a Home Care Network demonstration project in 0 that will demonstrate various means of communicating customer energy usage information obtained from the Sensus Smart Meter to various monitoring and control devices downstream (or inhome) from the meter. Part of the scope of this trail is to investigate the privacy and cyber security issues with the various communication technologies as well as evaluating the impact on the performance of the AMI system.

44 EB-0-0 Schedule Page of 0 0 Information and trail results obtained from this initiative is open to the industry stakeholders and is being shared with Hydro One and the CLD at regular Smart Grid information exchange meetings. Feasibility of Storage Technologies As renewable energy sources continue to be developed throughout PowerStream s service territory and as electric vehicles continue to be introduced to the Southern Ontario marketplace, there is an increased need to better understand the electricity storage options available to local distribution companies. There have been significant technical advances in electricity energy storage systems such as inertial flywheels, pneumatic storage, hydraulic storage and advanced battery systems. PowerStream considers energy storage to be integral component of its Smart Grid strategy. In that regard, it plans to investigate specific applications of various storage technologies and, where practical and justifiable from operational and financial viewpoint, recommend larger scale deployment of the technology to the distribution grid as part of PowerStream rate based capital expenditure program. PowerStream smart grid plan includes spending to investigate and report on these technologies. Digital Fault Indicators The digital fault indicator project is a demonstration project that will notify the control room operator whenever a line fault indicator has detected a fault current on the distribution system and provide the approximate fault location. Coupling the Sensus Flexnet AMI communications technology with Horstmann line fault indicator technology, this project will install twenty three-phase fault indicators on PowerStream s distribution system and one three-phase fault indicator in the P & C work shop. The intent of this project is to determine the impact of using the Sensus Flexnet AMI system to deliver fault location, magnitude and other information to the control room operator. The AMI system performance relating to capacity, latency and prioritization are issues that will be evaluated during this trial. Successful demonstration of this technology will improve system

45 EB-0-0 Schedule Page of 0 reliability by reduction of customer outage duration times. It will also provide another application for the existing Smart Meter AMI communications system. As this technology is new, there was no information throughout the industry relating to the scope or objective of this project. The installation and commissioning of this project was completed in the first quarter 0. The system operated as designed with acceptable latency reporting times and without affecting the billing information and other operational data channels on the AMI system. PowerStream concluded that this technology is viable for future application to the distribution system. A final report is being prepared. Post 0, any application of this technology will be included in PowerStream s rate-based capital expenditure program, not as a specific Smart Grid demonstration initiative. The final report containing scope, costing information, trail results, conclusions and recommendations obtained from this initiative is open to the industry stakeholders and will be shared with Hydro One and the CLD at its regular Smart Grid information exchange meetings.

46 EB-0-0 Schedule Page 0 of Appendix A Station Capacity for Renewable Generation PowerStream Owned Stations South: This list represents the allocated renewable generation capacity of PowerStream owned Transformer Stations. Projects must have completed a connection impact assessment to contribute to allocated capacity. Station Capacity is the lesser of either the thermal or short circuit capacity. Vaughan MTS # Station Voltage (kv):. Station Thermal Capacity (MW) (A + B Bus) =. Bus Capacity (MW) A =. B =. Feeder M M M M M M M M M M0 M M Allocated Capacity (MW) Remaining Station Capacity (MW) =. Vaughan MTS # E Station Voltage (kv):. Station Thermal Capacity (MW) (C + D Bus) =. Feeder M M M M M M M M M0 M M M Allocated Capacity (MW) Remaining Station Capacity (MW) =. Station Voltage (kv):. Vaughan MTS # Station Thermal Capacity (MW) (A + B Bus) = 0. Feeder M M M M M M M M M M M0 M

47 EB-0-0 Schedule Page of Allocated Capacity (MW) N/A N/A Remaining Station Capacity (MW) =. Station Voltage (kv):. Vaughan MTS # Station Thermal Capacity (MW) (A + B Bus) =. Feeder M M M M M M M M M M M0 M Allocated Capacity (MW) Remaining Station Capacity (MW) = 0. Station Voltage (kv):. Richmond Hill MTS # Station Thermal Capacity (MW) (A + B Bus) =.0 Feeder M M M M M M M M M M M0 M Allocated Capacity (MW) Remaining Station Capacity (MW) = 0. Station Voltage (kv):. Richmond Hill MTS # Station Thermal Capacity (MW) (C + D Bus) =.0 Feeder Allocated Capacity (MW) M M M M N/A N/A M M M M N/A N/A Remaining Station Capacity (MW) =. Station Voltage (kv):. Markham MTS #

48 EB-0-0 Schedule Page of Station Short Circuit Capacity (MW) (B + Y Bus) =. Feeder M M M M N/A N/A M M M M N/A N/A Allocated Capacity (MW) Remaining Station Capacity (MW) = 0.0 Station Voltage (kv):. Markham MTS # Station Circuit Capacity (MW) (J + Q Bus) =. Feeder M M M M N/A N/A M M M M N/A N/A Allocated Capacity (MW) Remaining Station Capacity (MW) = 0.0 Station Voltage (kv):. Markham MTS # Station Short Circuit Capacity (MW) (E + Z Bus) =. Feeder Allocated Capacity (MW) M M M M N/A N/A M M M M N/A N/A Remaining Station Capacity (MW) =.0 Station Voltage (kv):. Markham MTS # E Station Short Circuit Capacity (MW) (J + Y Bus) =. Feeder M M M M N/A N/A M M M M N/A N/A Allocated Capacity (MW) Remaining Station Capacity (MW) =.0 Markham MTS #

49 EB-0-0 Schedule Page of Station Voltage (kv):. Station Thermal Capacity (MW) (P + R Bus) =. Feeder M N/A N/A N/A N/A N/A M M N/A N/A N/A N/A Allocated Capacity (MW) Remaining Station Capacity (MW) =. Hydro One Owned Stations - South: This list represents the allocated renewable generation capacity for PowerStream, on Hydro One owned Transformer Stations. Estimated Remaining Capacities are PowerStream s best estimate based on station and generator data available on Hydro One s website. Agincourt TS Station Voltage (kv):. Station Thermal Capacity (MW) (B + Y Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M N/A N/A N/A N/A N/A M N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) 0 0 Estimated Remaining Capacity (MW) =. Armitage TS DESN Station Voltage (kv):. Station Thermal Capacity (MW) (JQ Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M M M N/A N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) = 0. Buttonville TS Station Voltage (kv):. Station Thermal Capacity (MW) (Q + Z Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M M M M M0 M M N/A N/A

50 EB-0-0 Schedule Page of PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) =. Station Voltage (kv):. Finch TS DESN Station Thermal Capacity (MW) (B + Y Bus) = 0. Hydro One Allocated Capacity (MW) =. Feeder M M N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) 0. 0 Estimated Remaining Capacity (MW) =. Station Voltage (kv):. Leslie TS DESN Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M N/A N/A N/A N/A N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) =. Station Voltage (kv):. Woodbridge TS DESN Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M N/A N/A N/A N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) =.0 Hydro One Owned Stations - North: Station Voltage (kv): Everett TS Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) = 0. Feeder M M N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

51 EB-0-0 Schedule Page of PowerStream Allocated Capacity (MW) 0 0. Estimated Remaining Capacity (MW) =. Station Voltage (kv): Holland TS Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M M M M M0 N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) =.0 Station Voltage (kv): Midhurst TS Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M M M M M0 N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) =. Station Voltage (kv): Barrie TS Station Thermal Capacity (MW) (BY Bus) =. Hydro One Allocated Capacity (MW) =. Feeder M M M M M M M N/A N/A N/A N/A N/A PowerStream Allocated Capacity (MW) Estimated Remaining Capacity (MW) = 0.

52 EB-0-0 Schedule Page of Appendix B Project Details. WiMax Communication Network Generating power onto the electricity grid adds complexities to daily system operations. For this reason, PowerStream Operations requires real time contact with Generators to monitor output power and have the ability to shut a generator down in the event of an emergency. In order to facilitate communication between PowerStream s hr/day Control Room and Generators, it has been determined that a WiMax Communication Network is required to cover the extent of PowerStream s distribution territory. 0 WiMAX ( Worldwide Interoperability for Microwave Access ) is a wireless standard used for broadband wireless access ( BWA ) networks. In comparison, a WiMax network functions similarly to a common WiFi wireless network by linking digital users to a computer network. However, WiFi network coverage is measured in meters where a WiMax network s coverage area is measured in kilometers. PowerStream s WiMax network consists of two parts: 0 WiMax Transmitter, consisting of a high power base station and antenna mounted at a height of approximately 0m, transmitting information from PowerStream s control room to a number of customers up to a distance of forty kilometres away. WiMax Receiver, consisting of a compact directional antenna mounted at a height of approximately m that connects PowerStream directly to a generator s Power Inverter.

53 EB-0-0 Schedule Page of Project Scope: Construct a WiMax Communication Network consisting of five Base Station nodes located in Vaughan, Markham, Aurora, Alliston and Barrie. Project Benefit: Will allow PowerStream Control Room to monitor Generators to maintain system security, shutdown a generator in the event of an emergency, and confirm a Generator is off during maintenance, ensuring the safety of staff working on the distribution system. Opportunity: The WiMax Network s bandwidth is scalable and can be expanded if required to accommodate future generators.

54 EB-0-0 Schedule Page of Network Design PowerStream s WiMax Communication Network will consist of five Base Station nodes located in Vaughan, Markham, Aurora, Alliston and Barrie as illustrated below:

55 EB-0-0 Schedule Page of 0 * Network coverage zones are generalized for illustration purposes. Each of the five nodes will consist of three communication sectors creating a mesh network through PowerStream s territory. All five Nodes will be located at existing PowerStream Stations and be mounted on communication towers at a height of 0m. PowerStream classifies customer Generators in one of two Categories; greater than 0kW which require real time communication with the PowerStream Control Room, or less than 0kW which are considered low risk generators and currently are not required to have a communication link with PowerStream s control room. Generator Classification totals are seen below:

56 EB-0-0 Schedule Page 0 of Generator Classification Projects > 0kW Projects < 0kW Total Generators The existing fifty-four Generators greater than 0kW will be required to purchase a WiMax Receiver (Subscriber Unit) and a Signal Controller (SEL-0 RTAC) at their own expense, as part of their generator s connection agreement with PowerStream. The following diagram illustrates the expected equipment layout to be located at a customer owned generator. 0 The RTAC controller polls the Generator s Power Inverter for operating data and transmits it to PowerStream s network via the WiMax Subscriber unit. Projects greater the 0kW will be required to have an active transfer trip function available to PowerStream s Control Room allowing the generator to be tripped off (shut down) in the event of a safety concern. The following diagram illustrates how PowerStream s transformer station is able to access the Generator s shutdown function via the WiMax Network.

57 EB-0-0 Schedule Page of Generator PowerStream 0 In the event where a Generator s supply feeder trips off, the Transformer Station s protective relay will initiate a trip command directly to the Generator s inverter using Goose (IEC0) messaging, instructing the generator to shutdown. This will ensure that the Generator is off, preventing the possibility of islanding, and eliminating any safety concerns for lines crews working in the area Proof of Concept: In 00, PowerStream constructed a WiMax proof of concept project to confirm the functionality and reliability of WiMax communication.

58 EB-0-0 Schedule Page of A WiMax Base Station was constructed at PowerStream s Fabro Transformer Station and was linked with a Subscriber unit mounted at PowerStream s JV Fry Transformer Station. 0 In conjunction with RuggedCOM Inc and Schweitzer Engineering Laboratories (SEL), PowerStream tested and confirmed the WiMax technology. Test data proved that WiMax communication speeds were adequate to meet transfer trip guidelines and that there was ample operating bandwidth to accommodate PowerStream s Generator demand. Proof of concept link was dismantled following testing and the equipment was redeployed into active service at MS0 in 0. 0 WiMax Network Construction Year One In 0, PowerStream constructed three WiMax Nodes at Transformer Stations in Barrie, Markham and Vaughan.. Municipal Station MS0 - Cundles Rd. E, Barrie. Transformer Station MTS - Kennedy Road, Markham

59 EB-0-0 Schedule Page of. Transformer Station VTS Dufferin St., Vaughan. MS0 - Barrie: Replace existing m tower with new.m tower and install -Sector WiMax Base Station.

60 EB-0-0 Schedule Page of MTS - Markham: Reinforce existing 0m tower and install -Sector WiMax Base Station. VTS Vaughan: Construct new.m tower and install -Sector WiMax Base Station (Under construction).

61 EB-0-0 Schedule Page of Year Cost: $,0 0 WiMax Network Construction Year Two In 0, PowerStream plans to construct the final two WiMax Nodes at Stations in Alliston and Aurora:. Municipal Station MS - Dufferin St. South, Alliston. Municipal Station AMS - 0 Bathurst St., Aurora

62 EB-0-0 Schedule Page of Year Cost: $,.00. Customer Information System Modifications for FIT PowerStream s existing Customer Information System ( CIS ) was deemed not capable of managing Renewable Generation in an effective manner. Therefore, upgrades were required to enable CIS to oversee generator sizes, configuration types, contract dates and billing rates. 0 Project Scope: Update CIS to accurately track and bill renewable generators. Project Benefit: Will enable CIS to manage generator sizes, configuration types, contract dates and billing rates.

63 Opportunity: No additional opportunities have been considered. EB-0-0 Schedule Page of The following illustration is an example of the new Generator Master File screen created in CIS to manage Renewable Generation data. Costing: 0: $, 0. Fault Level Reduction Reactors Due to their close proximity with Hydro One s Parkway Transformer Station in Markham, PowerStream s Markham TS# and Markham TS# Transformer Stations are subject to high fault currents causing them to reach their short circuit limiting capacity in September 0. In order to provide short circuit capacity for potential generators in the area, PowerStream intends to install fault level reduction reactors at both stations by June 0. This countermeasure will increase each station s available generation connection capacity by MW, providing an overall addition of 0MW of generation capacity in the Markham area.

64 EB-0-0 Schedule Page of Project Scope: Install three phase fault level reduction reactors at Markham TS# and Markham TS# to improve fault current levels. Project Benefit: Will increase Renewable Generation capacity in Markham by 0MW. Opportunity: The reactors will supply additional protection for three-phase load customers on the feeder by limiting phase to phase fault current. 0 Technical Study: In September 0, Kinectrics Inc. was contracted to perform a feasibility study of PowerStream s Reactor Implementation strategy and its impact to the distribution grid. Study Results: Powerstream can reduce the three-phase fault level at the kv bus to less than ka, by adding a reactor of 0. Ohm or higher. The actual size of the series reactor needs to be determined by PowerStream. The following photo illustrates a three-phase stacked current limiting reactor.

65 EB-0-0 Schedule Page of Conclusions: For 0, PowerStream has budgeted for a 0. ohm series reactor for both Markham TS# and Markham TS# at a cost of $,0.00 each.. Station Programming and Wiring In order to meet PowerStream s Generator Transfer Trip requirements, Transformer Station upgrades are required for existing feeder protection relays and their wiring in order to make Stations capable of delivering trip commands to Generators. 0 Project Scope: Upgrade feeder protection relays at various Transformer Stations and install necessary wiring to enable transfer trip capability. Project Benefit: Will facilitate the fast shutdown of Generators by the Control Room. Opportunity: No additional opportunities have been considered. Station Programming: In the event that a Generator s load feeder trips off, the Transformer Station s protective relay will need to initiate a trip command directly to the

66 EB-0-0 Schedule Page 0 of Generator s inverter instructing the generator to shutdown. This feature is not currently active on existing station relays and therefore the relay s programming will need to be upgraded to include the trip command. Station Wiring: Currently there are no physical connections between the Station protective relays and the Station RTAC Controller. Fibre optic cable will need to be installed from each relay to the controller to allow the high speed trip signal to be sent from the relay to the Generator. The following schematic illustrates the protective relay and wiring locations in the transfer trip scheme: 0 Costing: 0: $,0 (Buttonville TS) 0: $,00 (four PowerStream TS) 0: $,00 (four PowerStream TS) 0: $,00 (three PowerStream TS). Renewable Generation OM&A PowerStream s approach to Renewable demand has been to manage workload through existing positions and contract staff rather than create new permanent positions. In 0,

67 EB-0-0 Schedule Page of 0 0 there were. full time equivalent manpower in three different departments working to connect renewable generators... Manpower Allocation In 00, PowerStream solicited feedback from various LDC s to study their renewable organizational strategy. Based on the information from Toronto Hydro, Hydro Ottawa, Enersource, and Newmarket-Tay Hydro, and the projected future demand for renewable generation, PowerStream created two distinct working groups, Engineering and the FIT Support Team. Engineering Engineering is the lead contact for Renewable Generation applications at PowerStream. This responsibility includes project design review, application administration, and overall project management. The Engineering team equates to. full time equivalent manpower working in the following three roles: A. Renewable Generation Administration Responsible for overseeing and facilitating the FIT and MicroFIT program at PowerStream, including the creation of PowerStream s GEA plan. This role is filled by an existing Stations Engineer who dedicates % of his time to Renewable Generation. B. MicroFIT Program Coordination - Responds to microfit program inquiries, coordinates customer applications and approves project designs. This position is currently filled by one full time contractor. C. FIT Program Coordination - Responds to FIT program inquiries, coordinates customer applications and approves project designs. In addition, this role is responsible for performing Connection Impact Assessments ( CIAs ) for new Generators connecting to the distribution grid. This position is currently filled by one full time contractor. FIT Support Team The FIT support team is comprised of the several office and field staff in the Service Layout and Metering groups. Their responsibility is to connect Generators to PowerStream s

68 EB-0-0 Schedule Page of 0 distribution grid by developing Service Designs, connection costs, and determining metering requirements. The FIT support Team equates to. full time equivalent manpower working in the following two departments: D. Service Layouts - Develops generator service layout designs and calculates connection costs. There are currently three existing positions contributing through varying degrees of effort. E. Metering - Installs generator bi-directional generation meters and manages generation data. This work is performed by several technicians and technologists contributing through varying degrees of effort. A breakdown of manpower effort allocation in 0 can be seen in the following table: Department Full Time Manpower Part time Manpower # of Manpower RG workload vs. Core Job Full Time Equivalent (FTE) 0.. Cost Allocation Engineering %. Service Layouts - % 0. Metering - %. Renewables Manpower =. Recoverable Costs Generators are required to pay a Connection Fee when connecting to PowerStream s Distribution Grid. These fees are structured to cover Service Design and Metering costs incurred by the FIT Support Team. In addition, projects requiring a Connection Impact Assessment are charged a CIA Fee, equivalent to the Engineering burden incurred by the FIT Program Coordinator. Therefore, costs incurred by the Service Layout group, Metering and the FIT Program Coordinator are recovered through Generator processing Fees as follows: Service Layout Costs (D.) + Metering Costs (E.) Connection Fees = $0.00 FIT Program Coordinator Salary (C.) CIA Fees = $0.00

69 EB-0-0 Schedule Page of Incremental Costs Renewable Generation administration, coordination and maintenance costs are OM&A labour costs funded by the OM&A deferral account. The 00 and 0 breakdown of OM&A labour costs are seen below: Labour 00 0 Full Time Equivalent Salary Including Total Cost Labour Full Time Equivalent Salary Including (FTE) Burdens (FTE) Burdens Total Cost Administration Renewable Gen. 0% $, $0, Administration Renewable Gen. % $, $, Coordination MicroFIT 0% $, $0 Coordination MicroFIT 0% $,0 $, 0 00 Total $0, 0 Total $,0 In 0, two additional roles will be introduced to existing positions to administer and maintain the WiMax Communication Network. F. WiMax Administration - Direct and regulate the WiMax Network growth, Internet Protocol address allocation, and equipment configuration files. G. WiMax Maintenance - Perform and support activities necessary to sustain the WiMax Network s equipment. The 0 to 0 breakdown of OM&A labour costs are seen below: 0 0 Labour Full Time Equivalent (FTE) Salary Including Burdens Total Cost Labour Full Time Equivalent (FTE) Salary Including Burdens Total Cost Administration Renewable Gen. % $0,0 $0,0 Administration Renewable Gen. % $, $, Coordination MicroFIT 00% $, $, Coordination MicroFIT 00% $, $, Administration WiMax 0% $0,0 $,00 Administration WiMax 0% $, $, Maintenance WiMax 0% $, $, Maintenance WiMax 0% $,0 $, 0 Total $, 0 Total $,0

70 EB-0-0 Schedule Page of 0 0 Labour Full Time Equivalent (FTE) Salary Including Burdens Total Cost Labour Full Time Equivalent (FTE) Salary Including Burdens Total Cost Administration Renewable Gen. 0% $,0 $, Administration Renewable Gen. % $, $,0 Coordination MicroFIT % $,0 $, Coordination MicroFIT 0% $0, $,0 Administration WiMax 0% $, $, Administration WiMax % $, $, Maintenance WiMax 0% $,0 $, Maintenance WiMax 0% $, $, 0 0 Total $, 0 Total $, Labour Full Time Equivalent (FTE) Salary Including Burdens Total Cost Administration Renewable Gen. Coordination MicroFIT Administration WiMax Maintenance WiMax % $0, $,0 0% $, $, % $0, $,0 0% $, $, 0 Total $, PowerStream s organizational strategy for Renewable Generation has been effective and is expected to remain relatively unchanged through 0.

71 EB-0-0 Schedule Page of Appendix C OPA Review Confirmation Letter

72 EB-0-0 Schedule Page of