June 2008

Windsor-Essex Electrical Service

Needs and Solutions

2 Windsor-Essex Area

Windsor-Essex Area

KINGSVILLE

LAUZON

CRAWFORD ESSEX

KEITH

TILBURY

Brighton Beach

TransAlta

West Windsor

East Windsor

Great Northern

West Essex

East Essex

BELLE RIVER

MALDEN

3 Windsor-Essex Area

Needs in Windsor-Essex

• Inadequate transformer and line capacity to supply growing load in East Essex

• Reliability of supply to the entire Windsor-Essex area is below standard for a load of its size

• Inadequate transmission capacity for delivering generation from the west part of Windsor to the transmission grid (i.e. congestion)

4 Windsor-Essex Area

Proposed Solution

Integrated solution consisting of:

• Targeted conservation– for reducing the demand in the area

• Factoring in local generation if and when it occurs resulting from the various OPA resource procurement programs

• Transmission reinforcements– Two options being considered

5 Windsor-Essex Area

Implementation

Transmission & Distribution

GenerationConservation

by Hydro OnePrograms and

Procurements by OPA

Programs & procurements by OPA, supported

by LDCs and others

6 Windsor-Essex Area

Conservation Solution in East Essex

150.0

170.0

190.0

210.0

230.0

250.0

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Load net of Conservation

East Essex Load

Target of 15 MW of conservation by 2010

– “calculated” based upon provincial target

– also have a target for West Essex

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

7 9 15 17 19 21 24 26 27 29East Essex

Conservation

*Note: 27 MW of load was transferred to the new Belle River Station in 2006

*

7 Windsor-Essex Area

Local Generation Opportunities

• There are or will be a number of provincial-wide procurement initiatives for system resources that could be of interest to this area:

– Renewable Energy Supply (RES)

– Renewable Energy Standard Offer Program (RESOP)

– Clean Energy Standard Offer Program (CESOP)

– Combined Heat & Power (CHP)

• OPA will incorporate the outcome of these procurements as we move forward with the plan

• However, the OPA does not expect that generation developments in the area will be sufficient to address the needs identified

– Will need to upgrade and reinforce the transmission system to meet all the area needs

8 Windsor-Essex Area

Transmission & Distribution Alternative #1

Cost: ~$120 Million

9 Windsor-Essex Area

Transmission & Distribution Alternative #2

Cost: ~$100 -$115 Million

10 Windsor-Essex Area

Alternative Comparison

• The OPA applies six planning criteria when comparing the two alternatives for reinforcing Windsor-Essex:

– Reliability (both meet criteria)

– Feasibility (both are feasible)

– Flexibility (similar)

– Cost (Alt #2 is $9M to $20M lower in cost)

– Societal acceptance (Alt #2 preferred based on feedback from public consultation)

– Environmental assessment (similar based on Hydro One’s initial assessment)

• Based on the above criteria, the preferred alternative is Alternative #2

11 Windsor-Essex Area

Project Status

• The Integrated Power System Plan (IPSP), submitted to the OEB in August 2007, indicated Alternative #1 was the preferred solution because:

– preliminary estimates indicated it would cost $17 M less than Alt #2

– it requires less land, which should result in less disruption to communities

• However, because discussions with stakeholders, officials and affected communities had not taken place and final design and cost estimates were not yet available, approval of this project is proceeding separately from the IPSP

• The preferred transmission option for the integrated plan is based on the latest information and results of the stakeholder consultation that was recently carried out

12 Windsor-Essex Area

Post IPSP Information Updates

• Since the IPSP filing in August 2007:

– Community consultation has been initiated

– Costs and facility requirements have been updated

– Demand forecasts have been updated

– Distribution requirements have been assessed in more detail and incorporated

– Load restoration requirements and transfer capabilities of the existing system and alternatives have been updated based on recent information

– Environmental Assessment process is underway

– Implementation of Conservation and DG continue to be monitored and updated