Final Draft Report. Assessment Summary. Hydro One Networks Inc. Longlac TS: Refurbish 115/44 kv, 25/33/ General Description

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Final Draft Report Assessment Summary Hydro One Networks Inc. : Refurbish 115/44 kv, 25/33/42 MVA DESN Station CAA ID Number: 2007-EX360 1.0 General Description Hydro One is proposing to replace the existing three 5/6.67/8.33 MVA 115/44 kv singe phase step down transformers at with two new 115/44 kv 25/33/42 MVA three winding transformers. The tertiary winding of these three winding transformers will be buried. These new transformers will have under load tap changers and as such, the existing 44 kv voltage regulator will be removed from service. The installation of 2x5 MVar capacitor banks, SC1 and SC2, has also been proposed as part of this connection. SC1 will be connected to a series reactor to help mitigate the voltage surges due to back-toback switching of the capacitors. The proposed in-service date of the refurbishment is May 31, 2010. This assessment was performed in accordance with the Transmission Assessment Criteria. 2.0 Proposed Connection Arrangement is located on the radial A4L line along with Beardmore DS, Jellicoe DS and EPCOR Nipigon CGS. The proposed connection arrangement is shown in Figure 1. SC1 SC2 FIGURE 1 PROPOSED CONNECTION

3.0 Data Verification (a) Interrupting Devices Hydro One will install two HV circuit switchers and four LV breakers (two feeder breakers and two capacitor breakers). The following lists the specifications of these interrupting devices: Rated Current 350 A 1200 A Type SF6 SF6 Nominal Voltage (kv) 44 kv Maximum continuous voltage 145 kv 46.6 kv Interrupting time (cycles) 5 5 Short circuit interrupting capability (symmetrical) 20 ka 20 ka The Transmission System Code typically requires that and 44 kv system fault levels not exceed 50 ka (Sym) and 20 ka (Sym) respectively. As indicated above, the HV circuit switchers are rated lower than this requirement. The proponent, however, has indicated that fault levels at are well within the short circuit interrupting capability of the circuit switchers (20 ka - symmetrical). It is expected that Hydro One will upgrade the circuit switchers in the future if short circuit levels at Longlac bus exceed 20 ka. (b) Disconnect Switches The following table lists the specifications of the LV disconnect switches. These specifications are applicable to the LV motorized disconnect switches and well as the capacitor disconnect switches. HV LV Disconnect switch Rated continuous current Nominal operating voltage Minimum short circuit withstand capability (symmetrical) Values 1200 A (rms) 44 kv rms 20 ka (rms) (c) Transformer The following table lists the specifications of the new transformer provided by the applicant: Transformation 115.5/44 kv (tertiary winding buried) Rating (ONAN/ONAF/OFAF) 25/33/42 MVA Configuration Wye-Wye Winter Station Capability (10 day LTR of one transformer) Impedance 60.2 MVA Summer Station Capability (10 day LTR of one transformer) R(%) X(%) MVA base HL 0.200 7.6790 25 HT 0.333 12.794 10 LT 0.082 3.1490 10 Tapping 54.2 MVA ±8.8 kv achieved in 32 steps

(d) Shunt Capacitor The following table lists the specifications of capacitor banks SC1 and SC2 provided by the applicant. Rated Capability 5 MVAr Bank arrangement Wye-Wye ungrounded Rated Voltage 44 kv Symmetrical Short Circuit Level 20 ka The following table lists the specifications of the series reactor connected to capacitor SC1. Series Reactor Number per phase 3 Rated reactance Rated voltage / maximum rated voltage System frequency Continuous current Symmetrical short circuit level 4.0 Background Information (a) Existing System: EPCOR Nipigon CGS Values 0.5 mh 44 kv / 46.6 kv 60 Hz 600 A 20 ka Figures 2A and 2B represent the EPCOR Nipigon CGS active power output curve and the EPCOR Nipigon CGS generation duration curve for the period of October 1, 2006 to October 1, 2007. The generation duration curve shows the percentage of the time at which the generation was greater than a certain value (minimum generation). As shown, EPCOR Nipigon is usually at least 35 MW, 50% of the time. Figure 2C shows the EPCOR Nipigon reactive output in 1 Hr average samples during the period of October 1, 2006 to October 1, 2007. It can be seen that the reactive output is on average 0 MVar. 60. 50. 40. 30. 20. 10. 0. FIGURE 2A EPCOR NIPIGON OUTPUT (MW)

120 10. 100 % of time 80 60 40 20 5. 0. -5. 0 0 10 20 30 40 50-10. Minimum Generation (MW) FIGURE 2B EPCOR NIPIGON GENERATION DURATION CURVE A4L Flow FIGURE 2C EPCOR NIPIGON OUTPUT (MVAR) Figures 2D and 2E show the MW and MVar flows on A4L at Alexander SS in 1 Hr average samples for the period of October 1, 2006 to October 1, 2007. Positive flow is leaving the bus. For most of the time, there is a net active power injection into Alexander SS. Reactive power varies within the range ± 8 MVar. 30. 12. 20. 8. 10. 0. -10. -20. -30. 4. 0. -4. -8. -40. -12. FIGURE 2D MW FLOW IN A4L @ ALEXANDER SS FIGURE 2E MVAR FLOW IN A4L @ ALEXANDER SS The A4L loads at Beardmore and Jellicoe generally range between 0.6 to 1.4 MW. Ignoring the loads at Beardmore and Jellicoe, the load at Longlac can be determined approximately by adding the output at EPCOR Nipigon and the A4L flow out at Alexander SS. Figure 2F shows the estimated load in 1Hr average samples for the period of October 1, 2006 to October 2007. Under normal conditions, the load at Longlac is about 15 MW.

40 30 20 10 0-10 -20-30 -40 FIGURE 2F ESTIMATED LONGLAC TS LOAD (MW) Voltages Figures 2G and 2H show the 115kV Alexander SS and 44 kv voltages in 1 Hr average samples during the period of October 1 2006 to October 1 2007. It can be seen that the voltage at Alexander SS is about 125.5 kv and LV voltage at about 46 kv under winter conditions. 130. 129. 128. 127. 126. 125. 124. 123. 122. 121. 120. winter 47.75 47. 46.25 45.5 44.75 44. FIGURE 2G ALEXANDER SS 115 KV VOLTAGE FIGURE 2H LONGLAC TS 44KV VOLTAGE (b) Load Forecast: The following table shows the peak load forecast provided by Hydro One in MW. Longlac TS is a winter peaking station. The values below indicate that the load profile for the next 13 years will remain relatively constant. Winter and summer loads are well within station capabilities as outlined in Section 3.0. Therefore, the transformer capacity is adequate as per the Transmission Assessment Criteria. Year Summer (MW) Load Forecast Winter (MW) 2007 (current) 19.14 25.10 2010 (in-service date) 19.45 25.42 2014 (in-service date + 4 years) 19.82 25.81 2020 (in-service date + 10 years) 20.34 26.85

As indicated previously, the load along A4L is primarily composed of. Accounting for the given Longlac load forecast, it can be concluded that A4L will satisfy the Load Security Criteria as per the Transmission Assessment Criteria for the study period. The Load Security Criteria requires that not more than 150 MW of load may be interrupted by configuration with any one element out of service. In the event that A4L is lost, it is expected that all load will be restored within time frames outlined by the Load Restoration Criteria as per the Transmission Assessment Criteria. 5.0 Assessment (a) Study Scenario Three scenarios S1, S2, and S3 representing winter conditions were examined. Due to the relatively flat load forecast, analysis for 2010 peak load was ignored. Scenario S1 S2 S3 Description Represents a non-peak winter load scenario at Represents a 2014 peak winter load scenario at Represents a 2020 peak winter load scenario at The following table lists the load and generation conditions of each scenario: Scenario EPCOR Nipigon Output c Load Jelico DS #3 b Beardmore DS #2 b MW MVar MW MVar a MW MVar a MW MVar a S1 35 0 15 7.26 0.7 0.34 1.3 0.63 S2 35 0 25.81 12.50 0.7 0.34 1.3 0.63 S3 35 0 26.85 13.00 0.8 0.39 1.4 0.68 Notes: (a) MVar obtained assuming 0.9 power factor on LV side (b) Load forecast provided by Hydro One. (c) Active and reactive output reflect typical values observed from the existing system. (b) Voltage Study Pre-Contingency The following are the pre-contingency voltages with 10 MVar of LV reactive compensation at in-service observed under scenarios S1, S2 and S3. Note, Market Rules allow for a maximum precontingency voltage of 132 kv within the Northwest area. Pre-Contingency Voltages: Static Capacitor = 10 MVar I/S @ 0.9 pf Load Alexander SS EPCOR Nipigon Jelllico 44kV S1 15.0 MW 125.4 127.6 126.3 125.0 46.0 S2 25.81 MW 125.5 125.3 119.1 114.3 46.1 S3 26.85 MW 125.5 125.0 118.1 113.0 46.0

The results show that pre-contingency voltages meet IESO criteria. Post-Contingency The following table summarizes the computer results obtained from the voltage decline analysis (%) for the loss of EPCOR Nipigon under scenarios S1, S2 and S3. A constant MVA load model was used pre- ULTC and post-ultc conditions. The results show that all voltage declines are within IESO criteria. Post-Contingency Voltage Declines (%) Alexander SS EPCOR Nipigon Jellico 44 kv pre post pre post pre post pre post pre post S1 0.03 0.00 2.32 2.21 2.57 2.31 2.75 2.37 2.81-0.20 S2 0.09 0.06 2.60 2.46 3.20 2.84 3.65 3.11 3.80-0.31 S3 0.09 0.07 2.64 2.51 3.29 2.96 3.78 3.28 3.95-0.07 (c) Switching Study The IESO allows a voltage change V on a single capacitor switching to be no more than 4% at delivery point buses. A switching study was carried to investigate the effect of switching in 5 MVar on the voltage changes at under S1, S2 and S3 scenarios. The results of this study are summarized in the following table. As shown from the results, the change on the bus is no more than 4%, which is within IESO criteria. Hydro One should note that the change on the 44 kv bus is greater than 4%. Steps Bus V% S2: Load = 15.00 MW Switching 5 MVar S2: Load = 25.81 MW Switching 5 MVar S3: Load = 26.85 MW Switching 5 MVar (d) Power Factor Longlac 3.24 Longlac 44 kv 4.12 Longlac 3.50 Longlac 44 kv 4.63 Longlac 3.32 Longlac 44 kv 4.45 The IESO requires that wholesale customers and distributors connected to the IESO-controlled grid shall operate at a power factor within the range 90% lagging to 90% leading as measured at the defined meter point. Assuming a LV power factor of 0.9, results of the power factor analysis obtained from load flow studies under S1, S2, S3 scenarios are shown in the following table with the 10 MVar capacitors inservice. Results show that the power factor on the HV side of the transformers would meet IESO requirements.

Load Forecast S1 (Normal) S2 (2014) S3 (2020) P load (MW) 15 25.81 26.85 Qload at 0.9 pf (MVar) 7.26 12.50 13.00 Q load +Q transformer_loss (MVar) * -3.4 2.6 3.2 Power Factor at HV side 0.975 lead 0.99 lag 0.99 lag Note: * Negative value represents injection into the IESO controlled-grid. (e) Thermal Analysis The following table shows the percentage loading on the line A4L measured against summer continuous ratings under 2020 winter conditions (i) pre-contingency and (ii) post-contingency for the loss of EPCOR Nipigon for scenario S3. Although in theory, these loadings should be measured against winter ratings, summer continuous ratings were used to provide insight on the capability of the line. All sections were found to be within continuous ratings. This conclusion can also be made for S1 and S2. S3: A4L Thermal Loading Analysis Under 2020 Winter Peak Loads From A4L Line Section To Continuous % Loading Rating (A) 1 Pre Contingency Loss of EPCOR Nipigon Alexander SS EPCOR Nipigon JCT 310 10.8 48.7 EPCOR Nipigon JCT Beardmore JCT 260 56.5 58.4 Beardmore JCT Jellicoe DS #3 JCT 260 54.1 55.9 Jellicoe DS #3 JCT Roxmark JCT 260 52.8 54.6 Roxmark JCT 260 53.1 55.0 Note: (1) Ratings provided by Hydro One. 6.0 Conclusions The following was concluded for the transformer refurbishment and installation of 2x 5 MVar capacitor banks at : (1) The transformer refurbishment and installation of capacitor banks at will not have a material adverse effect on the IESO-controlled grid. (2) The transformer capacity is adequate as per the Transmission Assessment Criteria for the study period. (3) All pre and post contingency voltages were found to satisfy the Transmission Assessment Criteria. (4) Load Security Criteria is satisfied on A4L for the study period. (5) The switching of the 5 MVar capacitor meets the 4% IESO voltage change requirement at the Longlac TS delivery point bus. It should be noted that the corresponding voltage change on the Longlac LV bus may slightly exceed 4%. (6) Power factor at the HV side of the transformers meet IESO criteria. (7) Line A4L is thermally adequate to service loads.

7.0 Requirements for Connection (1) Hydro One is required to commit to install voltage reduction capability that provides 3%-5% voltage reduction in 5 minutes (2) Hydro One is required to install a UFLS facility at that meets the Market Rules requirements. (3) Hydro One Networks is required to provide on-line monitor of the status of all isolating disconnect switches and breakers at the, active and reactive power flows over the transformers, and voltage on the low side of transformers on a continuous basis. (4) Under load tap changing facilities at the station must be available (5) The circuit switchers are rated lower than required by the Transmission System Code. Short circuit levels for the period, however, show that fault levels are well within the short circuit interrupting capability of the circuit switchers. The short circuit interrupting capability is not expected to be exceeded in the foreseeable future. Hydro One would be required to upgrade its high voltage interrupting device at if, in the future, short circuit level exceeds 20 ka. (6) All equipment must be capable of operating continuously with a system voltage as high as 132 kv (7) The proponent must notify the IESO as soon as it becomes aware of any changes to the assumptions made in the connection assessment. The IESO will determine whether these changes require a reassessment. 8.0 Notification of Approval This expedited System Impact Assessment concludes that the refurbishment and installation of 2 x 5 MVar capacitor banks is not expected to have a material adverse effect on the IESO-controlled grid. It is therefore recommended that a Notification of Conditional Approval of the Connection Proposal be issued, subject to the requirements detailed above.