Hydro One Limited · TSX:H
Hydro One — End-to-End Connection Process and Timeline Webinar, Part I (May 2010)
31 slides from Hydro One's conference presentation, May 18, 2010
Slide 1: End-to-End Connection Process and Timeline Part I
End-to-End Connection Process and Timeline Part I May 18, 2010 1
Slide 2: Welcome
Welcome We appreciate you taking the time today to join us as we deliver the next in a series of webinars to help you with various aspects of the connection process. Our aims is to provide regular, timely and meaningful information to help bring your projects to fruition. 2
Slide 3: Agenda
Agenda 1. Review of end to end connection process (Part I) – High Level Process Steps to Connect – Connection Impact Assessment (CIA); including Distance Limitation impacts – Initial Cost Estimate – Connection Cost Estimate (CCE) – Connection Cost Agreement (CCA) 2. Next Steps (Part II) 3. HST Impac
Slide 4: Part I: Steps to Connect
Part I: Steps to Connect Current Status: • OPA has awarded FIT Contract Next Steps (Part I): • Apply for Connection Impact Assessment (CIA) – A CIA is a more detailed assessment of a project's impact on the grid • Upon completion of the CIA: – CIA report is provided along with an Initial Cost Estima
Slide 5: Step 1: Connection Impact Assessment (CIA)
Step 1: Connection Impact Assessment (CIA) • Proponent applies for a CIA with Hydro One by submitting a completed Form B application and Study Agreement electronically (fax or email) • Each FIT application is assigned a unique impact assessment priority time window by the OPA • Capacity Allocation R
Slide 6: CIA Application
CIA Application • Applications must be submitted in the allocated time window – Applications received prior to the allotted window will be reported to the OPA, which could jeopardize your OPA contract – Applications received late risk losing their priority sequence • Once the application has been re
Slide 7: CIA Application
CIA Application • The electronic CIA application package consists of: 9 Copy of a completed Form B - stamped by a licensed Ontario Professional Engineer 9 Signed Study Agreement 9 Single Line Diagram - stamped by a licensed Ontario Professional Engineer 9 A scanned copy of your CIA payment in full -
Slide 8: Capacity Allocation Exempt (CAE)
Capacity Allocation Exempt (CAE) • OPA awards CAE project a FIT Contract – OPA does not complete DAT and TAT for CAE projects • Each CAE FIT application was assigned a unique impact assessment priority time window by the OPA • Once a completed CIA application is received, Hydro One will review and c
Slide 9: Capacity Allocation Exempt (CAE)
Capacity Allocation Exempt (CAE) Outcome of the test for capacity: Option A - Capacity Available • CIA is completed Option B - Capacity Not Available • Hydro One will notify the Ontario Energy Board (OEB) and the Generator in writing if there is no capacity available • Hydro One will not take any fu
Slide 10: Step 2: CIA Report
Step 2: CIA Report Report includes: – Background And Objective of the Impact Assessment – Executive Summary – Connection Impact Assessment Study Data and Assumptions – Impacts to the Hydro One Distribution System – Impacts to the Hydro One Supply Station – Other Requirements / Considerations • As pe
Slide 11: Initial Cost Estimate
Initial Cost Estimate • CIA Report also includes an initial cost estimate of the proposed connection • Initial Cost Estimate includes: – A typical breakdown of the project by cost responsibility: » Engineering Costs » Material Costs » Labour and Equipment » Administrative Activities – Fee for Detail
Slide 12: Initial DG Connection Cost Estimate Breakdown Sample
Initial DG Connection Cost Estimate Breakdown Sample 12
Slide 13: Distribution Cost Responsibility Summary
Distribution Cost Responsibility Summary* Distribution Previous Cost Revised Cost Responsibility Investment Type Responsibility Distribution Generator Generator (no change) Connection Assets Distribution Generator Costs up to a “Renewable Expansion Cost Expansions Cap” of $90,000 per MW: Distributor
Slide 14: System Impact Assessment (SIA) & Transmission Customer Impact Assessment
System Impact Assessment (SIA) & Transmission Customer Impact Assessment • SIA and Transmission Customer Impact Assessment are required for projects greater than 10MW – An SIA is conducted by the IESO in order to assess the impact of the connection proposal on the reliability of the integrated power
Slide 15: Distance Limitation Criteria
Distance Limitation Criteria • OPA will provide a letter to the proponent from Hydro One when the FIT Contract is awarded – Letter indicates the project is impacted by the Distance Limitation Criteria • The letter will direct you to contact Hydro One’s BCC • A Hydro One DG Consultant will contact yo
Slide 16: CIA Distance Limitation Impacts
CIA Distance Limitation Impacts • Project is impacted by the Distance Limitation Criteria – CIA will still be completed within 60 days – Hydro One will contact impacted projects to review options after the completion of the initial CIA – CIA report will include an option to satisfy the Distance Limi
Slide 17: CIA Distance Limitation Impacts
CIA Distance Limitation Impacts • If the initial CIA is completed and the options proposed by Hydro One are not feasible for the project, the Generator may choose to propose a solution on their side of the PCC: – Submit proposed solution to Hydro One based on Hydro One’s functional and performance s
Slide 18: Step 3: Connection Cost Estimate (optional)
Step 3: Connection Cost Estimate (optional) • CIA is completed and provided to the proponent • You have the option to apply for a detailed Connection Cost Estimate (CCE) • A CCE includes: » Full detailed report from site visits, staking activities, equipment, additional connection requirements » Mor
Slide 19: Step 4: Connection Cost Agreement
Step 4: Connection Cost Agreement • Applicant will contact Hydro One’s Business Customer Centre to apply for the CCA • Payment for 100% of estimated connection cost is required (customer’s contribution per estimate) • The Generator is required to execute the Connection Cost Agreement (CCA) within 6
Slide 20: Connection Cost Agreement (CCA)
Connection Cost Agreement (CCA) • Upon execution of CCA, in-service date will be negotiated at the kick-off meeting • If CCA is not executed within 6 months, or payment in full is not received, Hydro One will release the capacity and withdraw the CIA. Upon connection, payment is trued up against act
Slide 21: Next Steps
Next Steps • Part II of the connection process discussion will be held via webinar late June: – Engineering, Procurement and Construction – Confirmation of Verification Evidence Report – Distribution Connection Agreement – Connection Requirements – Post-Connection Activities – Etc. 21
Slide 22: Impact of HST on CIA
Impact of HST on CIA • Your CIA fee may be subject to GST, HST, or a combination of both, during the transition period for the implementation of HST Payment Received Applicable Tax Before May 21, 2010 100% GST From May 21, 2010 to June 50% GST and 50% HST 10, 2010 After June 10, 2010 100% HST 22
Slide 23: List of Allocated Capacity
List of Allocated Capacity • Station capacity on Hydro One’s List of Allocated Capacity was adjusted in preparation for FIT • The Connection Availability Table posted by the OPA at FIT launch includes station capacity values • OPA’s values account for RESOP contracts awarded at the time of FIT launc
Slide 24: List of Allocated Capacity (Old)
List of Allocated Capacity (Old) 24
Slide 25: List of Station Capacity and List of Applications
List of Station Capacity and List of Applications • Distribution System Code requires Distributors to: 3 Publish information on the capacity for new generators on the Dx system 3 Identify the potential capacity available for the connection of generation to stations owned by Hydro One 3 List current
Slide 26: Sample – List of Station Capacity
Sample – List of Station Capacity 26
Slide 27: Sample – List of Applications
Sample – List of Applications 27
Slide 28: List of Station Capacity and List of Applications
List of Station Capacity and List of Applications • Proponents may reference the lists in order to determine capacity limits and general feasibility • LOSC and LOA are located on the Distribution- Connected Generators webpage http://www.hydroone.com/Generators/Pages/Distribution.aspx • Released Apri
Slide 29: Update from last Webinar
Update from last Webinar Technical Working Group on Feeder Distance Issues • Working Group on Technical Issues Regarding Distributed Generation Connections to Long Feeders has been established • Terms of Reference were sent to five associations: • CanWEA, CanSIA, APAO (Agri-Energy Producers Associat
Slide 30: Thank You
Thank You We trust that today’s webinar was helpful to you and we thank you for joining us today. We appreciate your questions and your feedback, so please do not hesitate to contact us. Your input will help us to ensure that these webinars are meaningful and helpful to you. 30
Slide 31: Important Contact Information
Important Contact Information Hydro One Web: www.HydroOne.com E-mail: DXGenerationConnections@HydroOne.com Phone: 1-877-447-4412 (Option #2) Ontario Power Authority Web: www.powerauthority.on.ca Phone: 1-888-387-3403 31
Hydro One — End-to-End Connection Process and Timeline Webinar, Part I (May 2010) on 6ix