Toronto: On October 11, the Ontario Energy Board released a decision on Hydro One’s request for temporary relaxation of certain timelines for processing applications and connecting micro-embedded generation projects. The decision was in response to Hydro One’s application on April 19, 2011 for a 6-month exemption from certain timelines in Sections 6.2.6 and 6.2.7 of the Distribution System Code (DSC). Section 6.2.6 allows distributors 15 or 60 days to assess a new connection request (depending on the connection type) before issuing an offer to connect or a refusal. Section 6.2.7 dictates that distributors must connect a micro-embedded generator within 5 days of certain conditions being met. An oral hearing was held on August 11th and 12th.
The Board approved certain exemptions for Hydro One to address the issues the company raised in its request, but imposed some conditions and limitations at the same time. A statement from the Board said it had “determined that the relief sought by Hydro One is too broad-ranging and is not suitably focussed on ensuring Hydro One comes into compliance with the applicable provisions within the time of the requested exemption. The application as filed is therefore denied. However, the Board will make provision for a limited exemption, with conditions, which is designed to provide some specific relief as well ongoing monitoring to ensure that Hydro One takes the necessary steps to come into compliance, including the development of a compliance plan and associated reporting.”
The Board indicated that the “reasonable commercial efforts” standard proposed by Hydro One for responding to connection requests “is too general in nature and is not sufficiently precise to incent Hydro One to come into compliance with the provisions of 6.2.6.” The Board finds that only indirect-type projects, which require a site assessment, will be granted an exemption. For those projects, the Board agreed that in most cases, it is not possible for Hydro One to meet the 15-day timeline, and therefore, it extended the time for Hydro One to assess a connection request to 30 days, to be met 90% of the time. In the instances where a customer requests a delay, the length of the delay may be added to the 30-day timeline. The Board also told Hydro One that it would not have to respond to incomplete applications on the same timeline as it does for complete applications.
With respect to the 5-day actual connection timelines, Hydro One proposed that these be replaced with the timelines provided by the Code for connecting load customers. Hydro One stated that this would allow it to better balance its activities with respect to micro-generation connections, load connections, and power restoration activities. The Board accepted Hydro One’s proposal in this regard.
Both exemptions are in effect until April 11, 2012. The Board mandated a compliance plan and monthly compliance reporting from Hydro One.
Summarizing the outcome, the Board noted that it had “issued a Decision and Order under section 74 of the Ontario Energy Board Act, 1998, relating to an application for exemption from section 6.2.6 and 6.2.7 of the Distribution System Code by Hydro One Networks Inc. The Board has denied Hydro One’s application as filed, and has instead granted a limited exemption with conditions. Hydro One is exempt from section 6.2.6 of the Code only for that class of micro-embedded generation projects that are at an existing connection and require a site assessment. Hydro One is exempt from the provision of 6.2.7 of the Code and shall instead comply with the provision of section 7.2.1 and 7.2.3 of the Code. These limited exemptions shall be in effect until April 11, 2012. Hydro One’s licence has been amended to reflect these specific exemptions.”
For more information, see related article “Hydro One swamped with micro-projects, seeks 6 months relief” from IPPSO FACTO, August 2011.