~~
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,
Transmission Business
Performance
2007/2008
Transmission
Stakeholder
<'Î
Overview
Consistent with our corporate objectives, we
measure performance in a number of areas
to be discussed today:
Rate Application
.Consultation ,1
.~ Carm Altomare
May 3 8..4. 2006
Manager,
Performance Analysis
" Reliabilityof the Transmission System
" Customer Satisfaction with Hydro One
" Employee Safety
" Credit Rating
CICosts
hydro<:Sone
Performance
e
Measurement
Twoapproaches - historical and external data is
used in this presentation
e
Historical data and trends have traditionally been
used to establish regulatory standard and rates
e
Historical data is drawn frorn Hydro One records
e
Distribution Rate Decision identified need to
develop industry comparators to benchmark
" External data is gained through Hydro One's
participation in outside associations
Transmission
Reliability Measures
.-
An indicator
A
supply of power to customers (available for momentary
and sustained)
Frequency
/~ l'Duration
-
of Delivery Point InterrJJ.ptions
of the average
number
of interruptions
to the
of Delivery Point Interruptions
An indicator
of the average
duration
of interruptions
to the
supplY,of power to customers
" Unsupplie"8Energy
- An indicdtor of the total energy not supplied to customers
as a result of interruptions to their power supply
CI
System Unavailability
-
An indicator
of the extent to which the transmission
system is notc.available for use by market participants
due to outages
Transmission Reliability
Frequency - Forced Sustained
Transmission Reliability
Frequency - Momentary
Frequency
:!i 1.40
8. 1.20
~
of Delivery Point
Momentary
---
Frequencyof
Interruptions
~
8.
!!
--,
~
~ 0.60
i
~ 0.40
Q
2001
2003
2002
---
0.6
0.4
~
..
0.20
..~ 0.00
1.0
~... 0.8
1- 0.80
;:
1.4
1.2
i
1.00
Delivery Point Interruptions
Forced Sustained
0.2
0.0
2002
2001
2004
",esuls
- "-
excludes
"",aet
2003'
of the 2003
2004
Blackout
--"-<lA
<lA
/1
Transmission Reliability
Duration- ForcedSustained
Transmission Reliability
Unsupplied Energy
Duration of Delivery Point Interruptions
Forced Sustained (BES)
c0 200
160
i
ii
Ji
'1;
w
~c
Ë
Unsupplied Energy
20 l
18
16
= 14
ij 12
--+-CEA Co"1'os'e
Hydro One
120
0
'cesu's
2002
excludes
13.5
10
8
*"-~
2001
i
~
*
80
40
,-a:z--~
2003"
l"1'act
- "-
of the 2003
<lA
2004
Blackout
ifj 6
4
2
0
1999
20DD
2001
.""",..-
2002
Yea,
2003'
"'''of'' 2003
-,...
2004
2005
1
Transmission
Reliability
Unavaiiability
Transmission
System
Transmission
Reiiability
Equipment Outages
"
Despite improvements in some of the customer
reliability SQls, with aging assets there appears
to be an underlying deterioration in equipment
performance in some important areas.
Unavailability
~-
3~0% r2:S%-2~
2~5%
2.0%
~
2.0%
E.g. 115kV Transformers, 230kV Breakers.
1.5%
.~ 1.5%
"
::> 1.0%
...
0.5%
0.0% 4
1999
2000
2001
. ,.". n..'..
2002
2003'
2004
2005
V.ar
"",.. ofoh.2003BO.k.",
Transmission Reliability
115 kVTransformerEquipmentOutages
115 kVT,""foome,
Transmission Reliability
230 kVTransformerEquipmentOutages
(Fo'..d)
230 kV non"",,"..
,~.-~-----_._.__.
---'
,00
~"
~1
ioo
,
~"
"
(Fo',,",,1
Customer
Satisfaction
with Hydro One
Transmission Customers:
Targel lor 2010 is 90% Satislied lor Generators and Major Customers
Cu"""',
Satisfaction -.
. Salety Focus is on Serious Incidents and lost Time Injuries:
""n> One
2002
7
90
los! Time Injuries
Seriou, Incidents
.
70
!
Employee Safety
2004
.4
77
2005
.4
68
2006 TarÇlet
0
53
Serious Incidents relate to six high energy targeted areas:
60
~
" 40
50
..
20
2003
.4
95
. e/ectrical accidents
- folls fram different /evel
-fa/Jing abjects
-preventable
. work equipment fai/ure
. asset equipment foi/ure
motor vehicle accident
. available
External comparison data on lost Time Injuries and Serious Incidents not
'00"-
. and AccidentSeverityRate,withHydroOne QI.
External comparators are available on Disabling lnjury Frequency Rate
Corporate
- Employee
Overall
Safety
Disabling lnjury Frequency Rate
~
~-'-ŒA~--.el
HydroOne
-~-
1.6
- f
..
..
.
0.8
2'" 0.6
:il 1! 04
i1;
. Allows ready access to debt financing including long term
market (no access to equity market)
1.4
';; ~ 1.2
-!!~ 1.0
~~
Credit Rating
Credit Rating plan to maintain Lon!).Term Debt Rating of "A"
Disabling lnjury Frequency Rate
0
g
Financial
..,
/
,....
.'--
Canadian comparables
predominantly "A" rated
Credit Raling2002 2003 2004 2005
0:2
0.0
2000
cu Defi ouœ"..Injury
F
2001
,
2002
2003
--
of-..
of ~
cu
2004
2005
Injuries...
200.000
hrs-teod
S&PRating
A
A
A
A
Transmission
Expenditures
Totol OM&A Costs per M WH
Total
OMA Cost
per MWh
2.5
2.0
~
i
------~
1.5
1.0
ThankYou
.
.
.
.
Reliability:Betterthan the CEA composite
Customer Satisfaction: Improved 80% over
4yrs
Employee Safety: Better than CEA composite
Maintaining
planned "A" rating
. Costs: Better than CEA composite
eœ
I-o-ŒA~-I
2002
2003
5ou...
Questions?
Business Level Summary
01 dœa,
2004
CEA
Transmission
Benchmarking
"
""-"--~-"
Agenda
~
. Todey' s Topies
"
2007/2008
TrClnsl11.issie»h. Rate Ar>PlicCltion
Carm Altomare
Stakehe»lderCOn~ultCItion3
Manager,
PerformanceAnalysis
-
Review from Last Meeting
-
Progress to Date
-
Next Steps
Ken Buckstaff
PA Consulting Group
hydro(9
one
Review from Last Session
~
Outline of the projeet
- A high-Ievel benchmarking study for transmission
costs and performance
- Designed to understand the relative position of
Hydro One within the industry
- Report to be part of filing
Review from Last Session
.
Inputs from the lest meeting
led to specifies
how to proeeed
...
- Criteria to use in establishing peer panel and
metrics
-
Companies to include in the comparison panel
-
Characteristics of the companies for help in
understanding the analysis
- Appropriate
metrics to use for the comparisons
of
Panel Selection Criteria
.
The goal of selection is to create a panel of comparison
Panel Selection
companies which provides a realistic and fair set of companies
against which to compare Hydro One.
Proposed selection criteria which were excluded
Size
- multiple
criteria
- Asset
.
.
.
Criteria
Condition & Use of Sm art Technologies
While these might be good criteria, they are too
diffjcult to appropriately assess for a high-Ievel study
Geography/Weather
Some
campanies
physical
Characteristics
subjeet
territory,
ta winter
weather
with a signifieent
Business Structure
Indude a few transmission
a few transmission-only
urban
& distribution
(icefsnow)
population
providers,
as weil
as spread
and a large
rural
across
a large
Smart technologies is one element of a series of
management decisions regarding design of system.
It typically can't be used as a differentiator of
performance in the short term, since the use of such
technologies ordinarily takes years to demonstrate its
long-term effecfs
and
providers
and Regulatory Structure
Market
Inctude a
markets,
Indude
few campanies
along
in competitive
with a few ln monopoly
a few campanles
electricity
markets.
with cost-of..service
a few with perfonnance-based
rates,
and
rates
Peer Selection
Performance Metrics Categories
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IHYdiOooé ........--
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7
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T
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T&D
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Tib
26.000;.;w--
T+
T
T+
H", .Ionn..bu'
.
~
- Compared
-
-"
---
1&0
-lie
-.'"
.
diff",."'
Iype ~om Hyd-o One
HoIàong Company with large nansmi"ia"
op&,at;ons
"N;"9
m"I'iplo i"od;c'",os
°' sONk. "'"'"
against several normalizing factors
Differentiating befween investment (capex) versus
consumption (opex)
Assessing
eHiciency
- Utilization of physical
- Replacement rates
of use of capital
assets
. Service level performance
-
Strengths and weaknesses of panel
.
This is to be a high~evel benchmark study, focused on
outcome mefrics in the following categories:
Costs
.-
-- - T&D -.
1"
.--=-- r =,-~.-
-'.. -.--, '-
-"''-78Ù:.,' -,-
..
'.'
-...
.
"""-of'
- How completely the panel meets the initial selection criteria
-
Comparable data is not available
area.
Primarily as measuredby reliability
. Employee Safety
Planned layout of individual metrics
comparisons
.
Performance
Metrics
. Selected metrics include the following:
MN.
Various graphs will be provided in this basic format:
-~..
.
Transmission EJ!Ii~.m!it!IT~s
.....
-,
,~
"~
~""~
~
-.
..~..W"
,
Riiiiti
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Pi<.....-
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--.
8<""",,"""
""""-P.'!.~:
-------- 0&"",,-
IP
""~",,,,'-"""""'>"'"
Labour Comparisons
.
A secondary part of the study will be to compare
labour rates for key job classifications
Next Steps
. Finalize data collection
~
Labor Rate Comparisons
. Complete statistical reports showing
.....
U..n;;, -. ~-.
.~
FiOid'''''''''''''!.
comparableresults
F~MOl
.
Determinefindingsand conclusion
.
We are on track to complete final report
in time for rate filing
Overtime Approach Comparisons
Company
Description<ifOTpolley
A
B
c
1
-
Transmission
~
Power
1
Power Guality1
. Power Quality Overview
"
2007/2008
Transmission Rate Application
Stakeholder Consultation
July 6, 2006
Quality
3
.
1
--
;
Power Quality Initiatives
f
î
.~
Ajay Garg
Manager,
Transm ission load
Connections
hydro(Sone
Power Quality Overview
..
Power Quality
Reliability = Power is on or off
Power Quality = Power is on, but Auctuates to
adversely impact customer and/or utility operation
.
- Overview
(cont/d)
Factors Impacting Power Quality
....
Utility
- Disturbanceson power systemaffectingthe
equipment
-
1
Pa-
ON
Phase Unbalanee
lfNJ/wNv Flieker
Transients
.
Swells
UI
Powe< OfF
ReHabili.y
Damain
1
,\VmN\
Voltage sags
Harmonies
-
PQ Ys. Reliability
Customers
-
Equipment characteristics
Economie constraints on customer operation
Large majority of PQ related issues and mitigations
are within customer operation
Power QualÎty
$
- Parameters
Manufadurers
PowerQualityparametersare complexand
have varied degree of adverse impacts
..
Transmission System Code (TSC) covers
performance for many parameters
- Steady State Voltages, Voltage Unbalanee, Flieker,
Surges, Harmonies
- Others, sueh as Voltage Sag not eovered under the
TSC
..
HydroOne is participatingwith industry,
customers, and manufacturers in defjning
guidelines for Power Quality
Power" Quality
e
- Hydro
One Initiatives
PowerQuality program designedto
accomplish
- Effectively and systematieally address our
eustomers' Power Quality inquiries
- Raise Customer Awareness
-
Customer Power Quality inquiry response proeess
Install Power Quality monitors, where appropriate
.
Monitoring
system
- Monitor ongoing
pilot project
completed
-2004
developments in power quality
standards and issues
.-
Computer
.
Equipment
Business
Equipment
Standards
Manufacturers
Association
CBEMAcurve originally developed to describe the tolerance
of mainframe computer equipment to the magnitude and
duration of voltage variations on the power system
Information Technology
Industry Council (ITIC)
- The successor organization to the CBEMA
.
- ITIC developed a newer recommended capability ITIC curve
for single-phase data processing equipment operating at 120
volts
Semiconductor
(SEMI)
Equipment
and Materials
International
- SEMI organization has also published curve (SEMI)to define
minimal characteristics for process tools to withstand voltage
sags
Power Quality Inquiry Response
How the proeess works
~
Proces.s
Power Quality
Power Quality
'1&
Install power
-Joint
Co-operation
- Monitors
quality
monitors
Joint Co-operation
Key to PQ Problem Resolution
to
- capture PQ parameters, and
- support response process
'" Needs
and locations
- Locations based on factors such as PQ sensitive
industrialloads; generation and loads impacting
PQ
.
- Customers' as weil as Hydro One sites
Use p~ data from customer
owned
me/ers where feasible
- Installed 30 monitors to date
- Install -25 monitors annually over 3 years
Manufadurers
(cont'd)
.
Equipment
Standard;)
Information Technology Industry Council (ITIC) Curve
'"!'
Q&A
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