AQCIE/CIFQ
Demande de renseignements numéro 2 à Hydro-Québec Distribution
R-3669-2008
Le 25 septembre 2008
QUESTIONS DE L’ASSOCIATION QUÉBÉCOISE DES CONSOMMATEURS INDUSTRIELS
D’ÉLECTRICITÉ (AQCIE) ET DU CONSEIL DE L’INDUSTRIEL FORESTIÈRE DU QUÉBEC (CIFQ)
DANS LE CADRE DU DOSSIER DE LA DEMANDE DU TRANSPORTEUR AFIN DE MODIFIER SES
TARIFS ET CONDITIONS DE TRANSPORT D’ÉLECTRICITÉ
Interrogatories of Industrial Economics, Incorporated (IEc)
1. Reference HQT-9, Document 1, Table 2:
a. Please clarify whether the results shown represent 2006 or 2007.
b. Please explain how system capacity is measured for calculating the utilization rate.
c. Please provide the date and time of each of the actual system load peaks used to calculate
these utilization rates, for both local and local plus point-to-point load.
d. Please describe where the transmission grid was most stressed during the December,
January, February and March peaks experienced in this period.
e. To the extent possible, please provide a similar table showing the historical utilization
rate of capacity segregated by function, as function is defined at Table 1 of HQT-11,
Document 1.
2. Reference HQT-11, Document 1, page 7, classification of Ontario interconnection costs:
a. Please describe the specific benefits associated with consolidating the grid system, in
terms of the specific beneficiaries of such consolidation, the time periods in which such
consolidation adds value, and the dollar value of such consolidation.
b. Please describe the specific benefits associated with improving the reliability of power
supply; including the specific generators and loads that benefit from the improved
reliability of supply, the specific time periods in which such reliability gains are material,
and the dollar value of the improved reliability.
c. Regarding the swaps/exchanges that are made possible, please provide HQT’s detailed
revenue forecast for the incremental revenues that it will earn from this interconnection,
detailing the date and time of expected transactions, the magnitude of the transactions,
and the revenues earned by HQD from these transactions by service type.
d. Please provide the cost-benefit justification for the Ontario interchange.
e. Please describe how any benefits to Ontario consumers are reflected in the allocation of
costs for this project.
f. Please provide HQT’s test year annual forecast of load flows (and direction of flows)
through the interconnection, by hour.
3. Reference HQT-12, Document 1, Table 8:
a. Please show the revenues for monthly and weekly point-to-point service split between
firm and non-firm service.
4. Reference HQT-12, Document 1, page 20, Table 10. The Transporter indicates that the cost
of voltage control is directly related to the opportunity cost of the capacity used by the
Producer to provide the service.
a. Please provide the opportunity cost of the capacity used to derive the voltage control
charge.
b. Please provide the basis for the $13.5 million used to derive the $0.35 per kW per year
capacity charge.
5. Reference HQT-12, Document 1, page 21, Table 11. The Transporter appears to indicate that
the cost of frequency regulation is related to the opportunity cost of the capacity used by the
Producer to provide the service.
a. Please provide the opportunity cost of the capacity used to derive the frequency
regulation charge.
b. Please provide the basis for the $13.4 million used to derive the $0.35 per kW per year
capacity charge.
6. Reference HQT-12, Document 1, page 24, Table 14. The Transporter appears to indicate that
the cost of spinning reserve is related to the opportunity cost of the capacity used by the
Producer to provide the service.
a. Please provide the basis for 1,000 MW of spinning reserve.
b. Please provide the opportunity cost of the capacity used to derive the spinning reserve
charge.
c. Please provide the basis for the $13.4 million used to derive the $0.35 per kW per year
capacity charge.
7. Reference HQT-11, Document 2, Table 8:
a. Please explain the difference between the point-to-point demand and energy values used
for allocation factors A and B compared to factor E.
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b. Please explain why a different demand allocation factor is appropriate for interconnection
demand costs than for network and generation integration demand costs.
8. Reference HQT-11, Document 1, page 9:
a. In MS Excel electronic format, please provide the supporting energy flow and capacity
reservation information for HQT-MASS and HQT-NE, in detail (hourly, if possible), and
show how that data was used to derive the 57.7 percent load factor.
b. What is the total reserved capacity used in the sample compared to overall point-to-point
capacity requirements?
c. Please explain why the data used in part (a) are deemed to be relevant as a proxy for
overall point-to-point service load factor.
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