Regulatory Planning for Supply to GTA

1
Regulatory Planning for Supply to GTA Toronto
Areas
Presentation to Regulatory Affairs Standing
Committee May 14, 2003
2
Purpose Today

• Overview of the GTA Toronto Areas Supply
  Adequacy Issues
• Need for Regulatory Planning
• Regulatory Issues To Be Addressed

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GTA Toronto Area Supply Adequacy Issues

• IMOs last Marchs 10-year Outlook identified the
  inadequacy of supply to Toronto as a significant
  concern.
• Concern has been triggered by the assumed
  shutdown of Lakeview generation by 2005.
• It also recognized that load growth in outlying
  parts of the GTA had created excessive loadings
  on transmission facilities.
• The IMO has requested market participants to
  submit their solutions. Generation and
  transmission solutions have been proposed.

4
GTA Toronto Area Supply Need for Regulatory
Planning

• Short time-frame
• Complex, interrelated issues
• Can benefit from a comprehensive approach

5
GTA Toronto Area Supply Regulatory Issues

• Planning process
• Source of Funding
• Cost and Rate Recovery
• OEB Proceedings and Approvals
• Environmental Permits and Approvals

6
Appendix Elements of the Ontario planning
process for transmission adequacy

• Annual assessment process (10-year Outlook)
• IMO assesses resource adequacy and identifies
  market participant plans and forecast system
  constraints
• IMO solicits voluntary responses to constraints
  (all resource types, including merchant and
  regulated transmission)
• IMO assesses whether it must intervene to augment
  voluntary market responses to address constraints

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Appendix Elements of the Ontario planning
process for transmission adequacy

• If urgency warrants IMO intervention
• IMO issues RFP to all potential resources
  (Generation, Demand, Transmission)
• Responses (if any) are assessed by IMO for
  technical feasibility, and submitted to OEB
  review and approval
• Assessment includes associated system (grid)
  upgrades
• Currently there is no provision for the IMO to
  optimize among solutions, conduct cost-benefit
  analysis and select a preferred alternative
• If no responses to RFP, IMO issues DFP to the
  local Transmitter (who must submit a proposed
  solution)
• IMO assesses the DFP response, and project
  proceeds to OEB review for approval
• Environmental approvals may be required

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Appendix Elements of the Ontario planning
process for transmission adequacy

• Market participants may at any time file
  spontaneous applications for new resources
• Independent of the IMOs annual assessment
  process
• Includes Generators, Demand Resources,
  Transmitters (merchant and regulated)
• IMO assesses via CAA (Connection Assessment and
  Approval) process
• includes Preliminary Assessment and System Impact
  Assessment
• IMO recommendation forwarded to OEB for approval
  (Leave to Construct)
• Note Currently, the IMO can identify and solicit
  solutions for congestion constraints, but cannot
  intervene to force a solution