Electricity Planning in the Parry Sound-Muskoka area Local Advisory Committee Meeting #2

September 26, 2016

Parry Sound-Muskoka Regional Planning Process and Timeline

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Discuss key priorities for future LAC meetings

Seek input from the LAC on the draft recommendations

Review the electricity needs and options in the Parry Sound-Muskoka area

Purpose of today’s meeting

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Recap: Types of Electricity Planning

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Recap: Scope of Regional Planning:

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Note: Connection assessment of

generation resources for procurement

programs, such as the Feed-in-Tariff and,

the Large Renewable Procurement, are

beyond the scope of regional planning.

Options to address electricity needs

Transmission System

Distribution System

Centralized

Generation

Distributed

Generation

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Electricity Demand Growth in this Region

Planning forecast includes the peak demand impact of planned conservation efforts and distributed generation

Conservation and embedded generation is expected to reduce the electricity demand by about 35 MW over the

planning period (about 25% of demand growth)

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230kV Transmission Infrastructure

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44kV Sub-Transmission Infrastructure

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44kV Service Reliability and Performance

Transformer Station Capacity in the

Parry Sound and Waubaushene Areas

Load Restoration on 230kV Orillia-

Muskoka Transmission system

Parry Sound-Muskoka: Summary of Electricity Needs

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44KV SERVICE RELIABILITY AND PERFORMANCE

Some of the 44kV networks in this Region are performing below provincial average in terms of frequency and durations of outages

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** Note: The highlighted areas are approximate and provide general indications of the 44kV networks

that are performing below provincial average.

Main Causes of these 44kV Outages

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Tree-Related Outages

Equipment

Failure Off-Road Distribution Facilities

Crews have limited access to these facilities

leading to increased restoration time.

Increased exposure to

tree, wildlife contact, and

weather.

Long 44kV lines

(40-100km)

Status of Maintenance and Outage Mitigations Initiatives

Vegetation management

­ Vegetation management was last completed in these areas in 2015/2016

­ Full clearing for these areas is planned for 2021/2022

­ Hydro One has committed $20M in 2016 in the Districts of Muskoka and Parry Sound to reduce tree-related

outages for its customers

Line patrols are conducted on a 6-year cycle

­ Data is collected to help identify and prioritize the need to replace distribution poles and/or potentially defective

equipment

­ Last line patrolling cycle for these priorities areas occurred between 2010-2012

­ The next line patrolling cycle is scheduled for 2016-2021

Mid-cycle hazard tree program

­ Visual inspection to identify potential risk of tree-related contact

­ This program would be conducted in this region in 2018/2019 period

Distribution System Management & Grid Modernization

­ Distribution management system will be implemented in this region by end of 2016 and will enable

operators to have greater grid visibility and to response to outage in a timely manner

­ A broader grid modernization initiative is underway to identify opportunities for distribution automation

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Opportunities to Improve Service Reliability

Distribution Solutions and Mitigation Measures:

Increase vegetation management to reduce exposure

Install distribution automation and fast-acting switching devices to

restore power in a timely manner

Relocate “Off-Roads” 44kV lines to roadside to allow crews to better

access to these distribution facilities

Strengthen ties within the 44kV network to allow adjacent 44kV lines to

service as a back-up supply in the event of an outage

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The cost, feasibility and effectiveness of these solutions depends on the solution type, the

geography and the nature of the 44kV distribution network

Bracebridge, Gravenhurst, the Township of Muskoka Lakes, and the Township of Seguin are supplied by long 44kV lines (60-100 km) from Muskoka transformer station.

Currently, the Bracebridge transformer station

supplies only one industrial customer and would

have sufficient capacity to accommodate new

customers.

To shorten 44kV line exposure, new 44kV lines can

be built (~ up to 15 km) to resupply these areas from

Bracebridge TS at a cost of $3-6 M.

Unlike Muskoka TS, Bracebridge TS only has a

single source of transmission supply.

­ A second transformer station or/and a combination

of switching facilities ($5- 30 M) can be installed to

provide a second source of supply and to minimize

the impact of potential transmission outages

Option to Resupply from Bracebridge TS

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Draft Recommendations

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The Working Group recommends the following:

To further examine the cost-benefit and cost responsibility of transmission and

distribution options to improve 44kV service reliability in the Muskoka area:

­ Hydro One Transmission and affected LDCs (Hydro One Distribution, Lakeland Power and Veridian

Connections) will examine the cost-benefit and cost responsibility of these options through a local

planning study

­ The status and results from the local planning study will be discussed with the LAC and affected

communities

To explore opportunities to improve resilience and service reliability at the

community level:

­ Facilitate discussion with the LAC and affected communities about community energy planning

activities and the cost-benefit of community-based solutions to improve resilience and service reliability

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TRANSFORMER STATION CAPACITY IN THE PARRY SOUND AREA

• Limited supply capacity is remaining on

the two transformer stations supplying

Parry Sound, Waubaushene and

surrounding areas

• Electricity demand at Parry Sound and

Waubaushene transformer stations is

expected to grow at a rate of 1-2 MW/year

over the planning period

• By 2035, additional transformer station

capacity will be required at: ­ Parry Sound TS (23 MW)

­ Waubaushene TS (11 MW)

Transformer Stations Supplying Parry Sound -Waubaushene and surrounding areas

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Potential Options

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Option 1: Resupplying some customers in the Parry Sound and Waubashene areas

from other adjacent transformer stations using existing and new distribution facilities

­ The existing 44kV system can transfer up to 10 MW to neighboring transformer stations from

Waubaushene transformer station.

­ With some reinforcements on the 44kV distribution network (~ about $7M), up to 6 MW can be

transferred to neighbouring stations from Parry Sound transformer station. These reinforcements

would also improve the service reliability for Township of Muskoka Lakes and Township of Seguin.

Option 2: Upgrade the transformers at the existing Parry Sound and Waubaushene

transformer stations ($25-30M per transformer upgrade)

Option 3: Defer the transformer upgrade using targetted demand management and

distributed energy resources

Opportunities to defer transformer station upgrades

Given the modest growth in this area, there is a large value for deferring (i.e., about $2M per year) the transformer station upgrades using community-based solutions.

At this time, the Working Group has limited information on the cost and feasibility of distributed energy resources and demand management in this area. More work needs to be done to determine whether it is cost-effective and feasible to rely on these solutions to address the local needs.

Pilots and emerging

technologies

(e.g., thermal energy storage,

microgrid)

Local hydroelectric potential

(According to OWA, 38 MW potential

in the Parry Sound District)

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Initiatives to identify opportunities to

improve heating efficiency

(e.g., energy baselines through community

energy plans)

Examples of community-based solutions:

End of Life Replacement of Transformers

Based on the typical service life, transformers at Parry Sound and

Waubaushene could be reaching end of life in the early 2030s.

Depending on the demand growth and management, it may be cost effective to

advance the end of life replacement and to replace the aging assets with

upgraded/upsized facilities.

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Draft Recommendations

The Working Group recommends the following:

To manage near-term growth:

­ Resupply some of customers in the Parry Sound and Waubaushene areas from neighbouring

transformer stations using existing and new distribution facilities.

To better understand the cost and feasibility of implementing distributed energy

solutions and demand management in the Parry Sound area:

­ Initiate a local potential study on distributed energy resources/demand management

­ Leverage local knowledge and community energy planning activities

­ Identify opportunities for targeted conservation and energy efficiency opportunities in First Nations

communities and municipalities.

To determine if there is an opportunity to align the end of life replacement with

transformer station capacity needs:

­ Monitor the demand growth and the results from the local potential study

­ Work with Hydro One Transmission to actively monitor and assess the conditions of these transformers

­ Revisit this need in the next iteration of the plan

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LOAD RESTORATION ON 230KV ORILLIA-MUSKOKA TRANSMISSION SYSTEM

• Today, about 450 MW are being supplied by 230kV Orillia-Muskoka

system

• In the event of a major outage on the 230kV Orillia- Muskoka system, all

loads would be interrupted and there is limited ability to restore the load

in a timely manner. This does not meet Ontario’s planning standards.

• According to Ontario’s planning standards, no more than 600 MW can be

interrupted following a major outage. ­ Demand on the 230kV Orillia-Muskoka system is expected to increase up to 600 MW by

early 2030s

Load Restoration on 230kV Orillia-Muskoka system

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Potential Options In the event of a 230kV transmission outage, the following fast-acting

isolating devices can be installed to minimize the impact of supply

interruption to customers

Motorized Switches (~$5-7M): Isolates sections of the transmission line

following an outage within 30 min and would enable power to be restored to

customers in a timely manner.

Breakers (~$20-25 M): Immediately isolates sections of the transmission line

that are not directly impacted by the outage and would reduce the total number

of customers that would be affected by a transmission outage.

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Draft Recommendations

The Working Group recommends the following:

To restore up to 300 MW within 30 minutes following a major outage on the 230kV

Orilla-Muskoka transmission system by:

­ Install motorized switches at the Orillia transformer station.

­ Given the uncertainty demand forecast over the longer term and the substantial cost of installing

breakers, it is not recommended that breakers be installed at this time.

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• End of life replacement of a transformer station planned at Minden within the next five

years

• Additional supply may be required on the Orillia-Muskoka 230kV transmission system

over the longer-term (beyond 2030s)

• Voltage and power quality concerns

Other Considerations

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Next Steps and Timeline

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NEXT STEP:

LAC members to provide comments

on the draft recommendations by

Oct 15, 2016

Parry Sound-Muskoka Technical Working Group’s Priorities

Priority #2:

Better understand the potential,

cost and feasibility of demand

management and distributed energy

resources in the area

Priority #3:

Keep LAC members and affected

communities posted on the status of

the IRRP recommendations

Priority #4:

Keep LAC members and affected

communities posted on demand

growth and conservation activities

Priority #5:

Coordinate regional and community

energy planning activities

Priority #1:

Get the LAC’s input on the draft

recommendations

LAC members to provide comments by Oct

15, 2016

Final report will be posted by Dec 2016

Engage with LAC to assist with local potential study

Identify opportunities for targeted conservation and

energy efficiency opportunities in First Nations

communities and municipalities by leveraging local

knowledge and community energy planning activities

Determine cost-effective and feasible community-

based solutions that may be implemented to help

defer the transformer station needs in the area

Provide a status update on the local planning

study to examine cost-benefit and cost

responsibility of the options to improve 44kV

service reliability in the Muskoka area

Provide a status update on any near-term

projects and outcomes from the local potential

study

Review electricity demand growth and

conservation activities in Parry-Sound

Muskoka with LAC

Facilitate a discussion with the LAC and affected

communities about community energy planning activities

and local solutions to improve resilience and service

reliability

Use LAC meetings to share best practices and to

coordinate regional and local energy planning activities

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DRAFT LAC ROADMAP