Any discussion of Hydro One’s work in generation connection needs to begin with assessing the dramatic ramp-up in making connections that began about three years ago.
In terms of the total amount of generation connections made to distribution since October 2009 when the FIT program began, Hydro One had completed the connection of 282 projects representing 836 MW (166 Small FIT projects totaling 26MW, 10 large FIT projects totaling 55MW, and 106 RESOP projects totaling 756MW), not counting MicroFIT. The RESOP category represents a range of projects initiated prior to the FIT program. (These figures were current as of September 15, 2012.)
For pending projects the numbers are even more dramatic. As of mid-September, Hydro One was working on 314 connection applications, 114 in the larger category (“Capacity Allocation Required”) and 23 related to RESOP.
Overview of Hydro One generation connections
|
| Connected to Date | Pending |
| Small FIT | 169 | 176 |
| Large FIT | 11 | 113 |
| Total FIT | 180 | 289 |
| RESOP | 108 | 23 |
| Total | 288 | 312 |
Notes:
1. These figures are current as of September 28 2012, slightly different from those cited in the text above, which represent progress to September 15.
2. The RESOP category includes all non-FIT projects since the launch of RESOP in 2006. The great majority of these are RESOP, but generators of other program types are included in the category as well (i.e. net metering).
The figures above represent distribution level connections only, and exclude transmission-connected generation, MicroFIT or micro-embedded generation, and connections made by other distributors in Ontario.
Transmission generation projects by connection type
At the transmission level Hydro One connected 34 projects of all types, representing 6,450 MW in the period from 2003 to 2011. Ironically, Hydro One reports that no connections underway at the transmission level are expected to be completed during 2012. However, this is likely an aberration, largely because most of the applicants with larger FIT contracts have been temporarily held up by permitting issues of various kinds. In particular, the Ministry of the Environment issued relatively few REA (Renewable Energy Approval) permits during 2011. The pace of these approvals has picked up dramatically in 2012 and transmission connections are likely to pick up similarly in the near future. (See “Nearly half of applicants receive REAs,” IPPSO FACTO, August 2012).
There are approximately 60 generation projects scheduled for connection to Hydro One’s transmission system in 2013, 2014 and 2015. In particular, southwestern Ontario, including the Bruce region, Chatham, and the Lake St. Clair areas, is a hotbed of activity, with many pending projects. Projects in this region also tend to be larger than the average for the province.
John Sabiston of Hydro One’s transmission connection group notes that the timeline for connecting larger generation projects depends on the type of connection required. In some cases the generation can be directly connected to the line through what is called a T-Tap. In many instances, however, a new breaker position is required at a transformer or switching station, or in some cases, an entirely new switching station is required. The timeline for completing 115 or 230 kV Line T-Taps, assuming that the generator customer has all of its other significant approvals in place, is generally 2 to 2.5 years (from initial application to in-service date). However, the timeline for completing the more complex types of connections including connection into new or existing stations is 3 to 3.5 years. The majority of projects completed and on the books fall in to the first category (see chart “Transmission Generation Projects by Connection Type”). Several projects totaling over 650 MW have requested connections to a 500 kV line in southwestern Ontario. These are by far the most complex connections ever undertaken in Ontario. New dedicated switching stations are being designed to accommodate these projects.
Mr. Sabiston notes further that “the timelines and the process in the Hydro One OEB approved connection procedures are being updated to reflect current practice.” For example, in some cases where a number of steps had previously been performed largely in sequence, Hydro One is adjusting its procedures to allow for certain parts of the work to be performed in parallel, subject to agreement from the connecting customer.
In response to the growth in the volume of connection applications, Hydro One has been able to speed up certain parts of the process. The company has revised its procedures so as to allow it to place orders with manufacturers for long-lead-time equipment before finishing the CCRA. Hydro One is quick to point out that this practice transfers no financial risk to Hydro One or to its ratepayers: “We are not ordering the equipment unless the generation customer has posted security – so that ratepayers are not affected.” In fact, this practice of advance ordering of long lead equipment for transmission connections has been employed previously by Hydro One when managing the construction of some load connections.
Mr. Sabiston summarizes his concerns by noting that the number one issue his group has to manage currently is delays due to the proponent not having an REA or other major approvals completed, or property rights. These issues often lead to re-engineering the connection well into the process and incurring corresponding delays.
In the microFIT category, connection applications have been flowing in at rates frequently exceeding 1000 per month, sometimes as high as 2700 per month, since late 2009. Although the total capacity of the MicroFIT projects is only 91MW, the number of connections is staggering, no doubt representing huge administrative challenges for Hydro One and the other electrical distributors in Ontario. At the micro level, Hydro One has connected approximately 9500 MicroFIT generators.
Hydro One survey results indicate that generator customers are reasonably satisfied with the service received from the utility when connecting their projects. Hydro One routinely collects feedback from generation proponents within two weeks after being connected. The objective of this data collection is to better understand where efficiencies and improvements can be made in the overall end-to-end connection process. Once the survey window has closed for 2012, Hydro One plans to conduct a process review in relation to the accumulated feedback received, and formal initiatives will be developed to address the “pain points” of the process. The goal is to continue streamlining and make the connection process more transparent for its generation proponents. Currently, the overall customer satisfaction with Hydro One’s connection process, as reported specifically by Distributed Generators (generators connected to Hydro One’s distribution system only) is 84%.
Grid expansion
Much of the ability to connect future generation depends on expanding the grid to increase its generation connection capacity. As a result of the province’s Long Term Energy Plan (LTEP) and subsequent directives, five priority transmission development projects have been identified. The OPA has indicated that when all five priority projects are completed, the grid will be able to accommodate the 10,700 MW of new renewable generation foreseen in the LTEP, as well as being strengthened in other important respects. The priority projects are as follows:
1. Install a Static Var Compensator at Milton SS, completion date Spring 2015.
2. Upgrade (re-conductor) the Lambton TS to Longwood TS transmission line, completion date end of 2014.
3. West of London (new line), preliminary completion date of 2017.
4. East-West Tie (new line), preliminary completion date of 2016-17.
5. Line to Pickle Lake, completion pending further consultation.