Hydro One Limited · TSX:H
Hydro One — Conference Presentation (June 2010)
39 slides from Hydro One's conference presentation, Jun 22, 2010
Slide 1: End-to-End Connection Process and Timeline Part II
End-to-End Connection Process and Timeline Part II June 22, 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 aim is to provide regular, timely and meaningful information to help bring your projects to fruition. 2
Slide 3: May 18th Webinar Reviewed
May 18th Webinar Reviewed: 1. End to end connection process (Part I) which included: – 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. HST Imp
Slide 4: Agenda
Agenda 1. Review end to end connection process (Part II) – Engineering, Procurement and Construction – Cost Detail Report Example – Confirmation of Verification Evidence Report (C.O.V.E.R.) – Distribution Connection Agreement – Connection Requirements – Post Connection Activities – Total Approximate
Slide 5: Date Definitions
Date Definitions • Energization Date: – Date project becomes a load customer – Also known as Load Date • In-service Date: – Date project is approved to generate electricity onto the grid – Also known as Ready for Service Date • Commercial Operation Date (COD): – Recognized by the OPA as the contract
Slide 6: Engineering, Procurement and Construction
Engineering, Procurement and Construction • Project In-Service Date is negotiated at the project kick- off meeting – Kick-off meeting will take place no later than 45 days after the Connection Cost Agreement (CCA) has been executed 6
Slide 7: Engineering, Procurement and Construction Kickoff Meeting
Engineering, Procurement and Construction Kickoff Meeting • The assigned Project Manager (PM) and the proponent will: – Determine/Finalize In-Service date – Discuss scope of work – Discuss timelines for generator deliverables 7
Slide 8: Engineering, Procurement and Construction Kickoff Meeting
Engineering, Procurement and Construction Kickoff Meeting • The assigned Project Manager (PM) and the proponent will: – Review high-level project schedule (created by PM) – Answer any outstanding questions the proponent may have with regards to processes, deliverables and/or timelines – Discuss/prov
Slide 9: Engineering, Procurement and Construction
Engineering, Procurement and Construction • Proponent must submit information to the distributor for detailed design review and approval – Single Line Diagram (SLD) – Commissioning Schedule – Revenue metering configuration • Generation output must be measured net of station service as per FIT Standa
Slide 10: Connection Requirements
Connection Requirements • Generator provides the revenue metering single line diagram six months before generator is connected • Generator builds metering installation to Hydro One retail meter standards – If the metering installation is not located at the Point of Common Coupling (PCC), then the ge
Slide 11: Connection Requirements
Connection Requirements • Hydro One installs meter and tests the meter at generator’s cost • Generator must have all necessary Electrical Safety Authority (ESA) approvals in order to be connected • Generator returns executed Distribution Connection Agreement (DCA) with electronic funds transfer (EFT
Slide 12: Connection Requirements
Connection Requirements • Generator establishes COD via a declaration to both Hydro One and the OPA, per the FIT program rules • Force Majeure: – Generator must prove to the OPA that the distributor could not connect the project by the COD due to issues beyond the generator’s control in order to avo
Slide 13: Cost Detail Report
Cost Detail Report • Cost detail report is provided to the proponent by the Project Manager (PM) on a regular basis in order to determine and track the actual connection costs as of a specific date Report Includes: • Graph of planned/estimated cost against up-to-date actual costs incurred on the pro
Slide 14: Cost Detail Report
Cost Detail Report Report Includes (cont’d): • Details on status of the project: • Timing • Scope changes • Scheduling • Outstanding project issues • Report will be provided by the PM to the proponent on a monthly basis • The report that outlines costs for a certain month will be sent out by the end
Slide 15: Cost Detail Report Example
Cost Detail Report Example 15
Slide 16: C.O.V.E.R. Confirmation of Verification Evidence Report
C.O.V.E.R. Confirmation of Verification Evidence Report A process where generators test their own equipment • COVER must be completed 1 month prior to the in-service date • Generator submits to the distributor a protection philosophy for approval • COVER document ensures the protection proposed is a
Slide 17: C.O.V.E.R.
C.O.V.E.R. Confirmation of Verification Evidence Report • Generator completes the COVER template, which specifies: 9 What the generator will test? 9 The generator’s equipment • Hydro One approves the proposal • Testing is then performed by the generator 17
Slide 18: C.O.V.E.R.
C.O.V.E.R. Confirmation of Verification Evidence Report • COVER is completed by the generator and submitted to Hydro One • Hydro One approves the COVER 9 Approved by the assigned COVER Coordinator to the project 18
Slide 19: Distribution Connection Agreement (DCA)
Distribution Connection Agreement (DCA) • As per the Distribution System Code (DSC) a “Connection Agreement” is an agreement entered into between a distributor and a customer connected to its distribution system 19
Slide 20: Distribution Connection Agreement (DCA)
Distribution Connection Agreement (DCA) • DCA defines the conditions of the connection and obligations of the generator and Hydro One with respect to delivery of electricity to or from that connection – One-time event which must be completed before Hydro One connects the proposed facility – Must be
Slide 21: Distribution Connection Agreement (DCA)
Distribution Connection Agreement (DCA) • Outlines the technical and operating requirements • Documents asset ownership • Provides an outline of the roles and responsibilities of each party • Lists all the pertinent contact information for the generator and Hydro One (schedule F) 21
Slide 22: Reconciliation of Project Connection Costs
Reconciliation of Project Connection Costs • Occurs after the project has gone in-service and all relevant project costs have been posted to the project • Project Manager determines if there is a difference between the payments made by the generator and the actual connection cost 22
Slide 23: Reconciliation of Project Connection Costs
Reconciliation of Project Connection Costs • If there is a difference between the payments made by the generator and the actual connection costs then: – a refund is issued to the generator or – an invoice is sent to collect the remainder of the funds required to close the project • Completed within
Slide 24: Post Connection Activities
Post Connection Activities • OPA provides a letter of direction for Hydro One to: – Pay the generator at a specified contract price – Effective on a commercial operation date – For a specified contract term • The generator name on the OPA letter of direction must be exactly the same name as that on
Slide 25: Post Connection Activities
Post Connection Activities • Hydro One bills the generator for electricity withdrawn from the distribution system at OEB approved rates • Billing is issued on a billing cycle basis • Each billing cycle is approximately 30 days long but does not align with the calendar month 25
Slide 26: Post Connection Activities
Post Connection Activities • Hydro One will: – deposit the payment into the generator’s bank account – send a generation statement electronically to the generator • Hydro One: – pays the generator based on calendar month – issues payment 21 business days after the end of the calendar month 26
Slide 27: Total Approximate Connection Time
Total Approximate Connection Time 9 60 days: Proponent applies for CIA (120 days if multiple LDC’s involved) 9 6 months: Application for CCE, Submit Notice to Proceed to OPA, Application for CCA 9 8 – 12 months: Construction of Project 9 3 – 6 months: Reconciliation of project connection costs betwe
Slide 28: Next Steps
Next Steps • Economic Connection Test (ECT) – Starting August 3, 2010 – To be completed by the Ontario Power Authority – Is a process for prioritizing transmission expansion – The OPA will identify economically justifiable transmission expansion projects which are required to accommodate FIT program
Slide 29: Update from last Webinar
Update from last Webinar • Technical Working Group (TWG) on Feeder Distance Issues • Five industry associations were asked to send delegates: • CanWEA, CanSIA, APAO (Agri-Energy Producers Association of Ontario), OWA and OSEA • The Working Group has met five times since the beginning of April • Fina
Slide 30: TWG on Feeder Distance Issues
TWG on Feeder Distance Issues Structure of Final Report • 3 to 4 page Executive Summary • Table of Contents will include: – Introduction – Voltage Performance Criteria • Fundamental Nature of the Problem • Impact of distance and DG size – Power Distance Limitations – Potential Solutions – Conclusion
Slide 31: TWG on Feeder Distance Issues
TWG on Feeder Distance Issues Structure of Final Report (Cont’d) • Appendices: – will contain the relevant detailed submissions from the Working Group Members Timeline • Draft circulated to Members by June 24th • Feedback from members and edits due by July 5th • Final report ready for external distr
Slide 32: Connection Impact Assessment (CIA) Turnaround Time
Connection Impact Assessment (CIA) Turnaround Time • DSC requires a distributor provide an assessment of the impact of the proposed generation on the system within 60 days • 60 days starts once Hydro One deems the CIA application to be complete – not the same as the OPA scheduled CIA application win
Slide 33: CIA Turnaround Time
CIA Turnaround Time • An application is deemed complete once Hydro One verifies the CIA application package 1. has all required information included and 2. technically complete and accurate 33
Slide 34: CIA Turnaround Time
CIA Turnaround Time • A complete application package consists of the following: 3 Signed Form B • Stamped by a licensed Professional Engineer 3 Distribution Operating Map (DOM) 3 Single Line Diagram (SLD) • Stamped by a licensed Professional Engineer 3 Signed CIA Study Agreement 3 Correct CIA paymen
Slide 35: CIA Turnaround Time
CIA Turnaround Time Exceptions for Non-CAE project only: • A completed CIA application will be put on-hold if there is a “pending complete” application(s) from another generator(s) who: 1. Applied to the same distribution station and 2. Were allotted an earlier application window by the OPA 35
Slide 36: CIA Turnaround Time – Same Station Applications
CIA Turnaround Time – Same Station Applications SAMPLE TIMELINE* Project One Project Two Application window scheduled by the May 31 June 1 OPA – receive electronic package Up to 5 business days – Hydro One to June 7 – information June 8 – electronic package and advise proponent of application issues
Slide 37: CIA Turnaround Time
CIA Turnaround Time • If a project requires multiple Local Distribution Companies (LDC) to be involved Hydro One must – work in conjunction with the other involved LDC(s) – incorporate the assessment the LDC is required to produce into a combined CIA report for the project • Maximum CIA turnaround w
Slide 38: 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 38
Slide 39: Questions
Next Webinar – Fall 2010 Questions 39