Hydro One has begun an extensive consultation process with its customers on what should be included in its 5 year transmission investment plan. The plan will set out major transmission initiatives, both new construction and sustaining capital expenditures, with potential impacts across Ontario. At this point, the company is still developing its investment plan, and many options are still under consideration prior to filing its rate application with the Ontario Energy Board later this spring. Specifically, the magnitude and pacing of investments have not been finally determined, nor has the allocation of dollars. However the scale of total investment under consideration is significant, ranging from 5 to 6 billion dollars over the 5-year period from 2016 to 2020.
In addition to some one-on-one discussions with customers, Hydro One has also invited all transmission-connected customers to attend any of five group workshops across the province – including generators, end-use customers and Local Distribution Companies. The discussions were led by an external facilitator and included presentations by Hydro One staff, who sought customer feedback on customers’ needs and preferences, including those related to reliability and rates.
At one consultation meeting on March 22, attended by APPrO, Hydro One officials said that, although Hydro One maintains regular contact with its customers, this was the first time the company has taken such a comprehensive approach to consultation as part of the development of its investment plan. They anticipate conducting this kind of consultation at least annually in the future.
The rate filing is expected to be submitted to the regulator in late May 2016. The filing will be for transmission rates starting in 2017, extending to the end of 2018.
One participant in the consultation meeting noted that the shutdown of the Pickering station, whenever it occurs, will have significant transmission implications. It appears that the removal of generation in that area will require significant transmission investments in the eastern GTA.
Further consultation materials will likely be distributed by Hydro One in the course of its rate application process. The Company also plans to hold a stakeholder session in late April, where it will share with intervenors and other stakeholders the discussions it held with customers, and some of the material for its upcoming rate filing.