PROPOSED CUSTOMER CLASSIFICATION

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1 Filed: December, 00 EB-00-0 Tab Schedule Page of PROPOSED CUSTOMER CLASSIFICATION This exhibit presents Hydro One s proposed customer classification..0 PROPOSED CUSTOMER CLASSES In order to simplify rates, provide similar customer classes as other LDCs, reduce customer confusion, improve administrative efficiency and to better reflect asset utilization and cost causality, Hydro One is proposing new customer classes: 0 0. Urban Residential (High Density). R Residential (Medium Density). R Residential (Low Density). Seasonal. Urban General Service energy billed. Urban General Service demand billed. General Service energy billed. General Service demand billed. Sub-Transmission 0. Street Light. Sentinel Light. Distributed Generation 0 Based on Stakeholder feedback received on September, 00 Urban General Service energy billed and Urban General Service demand billed customer classes have been included in our proposal. Also based on Stakeholder feedback at the same session, Hydro One will change the current definitions used for Residential customers Urban, High and Normal density. The current description of Urban Residential, R Residential High density and R Residential Normal density will be changed to Urban Residential (high density), R Residential (medium density) and R Residential (low density) to minimize potential customer confusion.

2 Filed: December, 00 EB-00-0 Tab Schedule Page of Urban Residential (High Density) This customer class will include all existing Legacy residential, farm and Acquired LDCs residential customers that meet the Urban Density Criteria. The Urban Density criteria is unchanged and is defined as areas containing,000 or more customers with a line density of at least 0 customers per kilometer. The proposed Urban Residential customer class has,0 customers in 00 some of which are mapped from the other original Legacy classes and the Acquired residential classes, as shown in the Table below. 0 Table Proposed Urban Residential (High Density) customers 00 Data Urban Legacy, R Legacy, R Legacy Farm single-phase Acquired LDCs Residential,,0 R Residential (Medium Density) This customer class will include all R Legacy customers that have not been reclassified to Urban class and all remaining Acquired Residential customers that have not been reclassified as Urban class. The proposed R Residential customer class in 00 has,0 customers as shown in the Table below.

3 Filed: December, 00 EB-00-0 Tab Schedule Page of Table Proposed R Residential (Medium Density) customers 00 Data R,0 Acquired LDCs Residential,,0 0 R Residential (Low Density) This customer class includes all current R customers that have not been reclassified to Urban and all energy billed Farm customers that are currently single-phased or threephased Farms. These groups of customers receive Rural or Remote Electricity Rate Protection, (RRRP). This group also includes one Caledon residential class. The proposed R Residential customer class has, customers in 00 as shown in the Table below. Table Proposed Rural Residential (Low Density) customers 00 Data R, Caledon OH-0, Farms single phase,0 Farms three-phase, Seasonal Residential This customer class will include all current R and R and Caledon OH-0 customers. This customer class in 00 has, customers as shown in the Table below:

4 Filed: December, 00 EB-00-0 Tab Schedule Page of 0 Table Proposed Seasonal Residential customers 00 Data R 0,0 R, Caledon OH-0 0, Urban General Service Energy Billed This customer class will include all existing Legacy General Service, Farms and Acquired General Service customers that meet the Urban Density Criteria and are energy billed. The Urban Density criteria is unchanged and is defined as areas containing,000 or more customers with a line density of at least 0 customers per kilometer. The proposed Urban General Service energy billed customers class has, customers in 00 as show in the Table below. Table Proposed Urban General Service energy billed customers 00 Data Urban General Service Legacy customers energy billed,0 General Service single phase General Service three-phase Farm single-phase Acquired LDCs General Service,, Urban General Service Demand Billed This customer class will include all existing Legacy General Service and Acquired General Service customers that meet the Urban Density Criteria, are demand billed, and

5 Filed: December, 00 EB-00-0 Tab Schedule Page of are supplied at voltages below. kv. The Urban Density criteria is unchanged and is defined as areas containing,000 or more customers with a line density of at least 0 customers per kilometer. The proposed Urban General Service energy billed customers class has, customers in 00 as show in the Table below. Table Proposed Urban General Service demand billed customers 00 Data Urban General Service Legacy customers demand billed General Service single phase General Service three-phase Acquired LDCs General Service, 0 General Service Energy Billed This customer class will include: all energy billed customers that are currently single phase General Service customers, three-phase General Service customers, Acquired General Service customers, all energy billed Farm customers that are currently singlephased or three-phased Farms that do not receive RRRP, and energy billed T-class customers. All these customers are customers with average demands below 0 kw and do not meet the Urban Density criteria. The proposed General Service energy billed customer class in 00 has, customers as show in the Table below. This class will also include all unmetered scattered load connections.

6 Filed: December, 00 EB-00-0 Tab Schedule Page of Table Proposed General Service Energy Billed customers 00 Data General Service single-phase energy billed,0 General Service three-phase energy billed 0, T-Class customers energy billed Farm single phase energy billed and no RRRP, Farm three phase energy billed and no RRRP Acquired LDCs General Service customers energy billed, Unmetered Scattered Load, Total, 0 General Service Demand Billed This customer class will include: all demand billed single phase General Service customers, three-phase General Service customers, Acquired General Service customers, all demand billed Farm customers that are currently single-phased or three-phased Farms, and T-Class customers below 00 kw of demand. All these are customers with average demands above 0 kw, supplied at voltages below. kv, and do not meet the Urban Density criteria. The proposed General Service energy billed customer class in 00 has, customers, as shown in the Table below.

7 Filed: December, 00 EB-00-0 Tab Schedule Page of Table Proposed General Service Demand Billed customers 00 Data General Service single-phase demand billed General Service three-phase demand billed,0 Farm single phase demand billed Farm three-phase demand billed T-Class customers demand billed and with demands below 00 kw Acquired LDCs General Service customers demand billed, Total, 0 Distributed Generator As per the Board s direction in the EB-00-0 proceeding, Hydro One has created a new customer class consisting of all active Distributed Generators located within its territory in 00. The current customer classification for these customers is T-class Customers, Acquired General Service customer, and General Service three-phase customers. Street Lighting Classification for street lighting service only Sentinel Lighting 0 Per the requirements of Regulation /0 made under the Electricity Act, Hydro One Networks includes the provision of sentinel lighting service as part of its regulated business. This rate classification is applicable for sentinel lighting service only, and includes the cost of providing distribution service to the sentinel lights. The cost for providing this service is determined using the cost allocation methodology recommended

8 Filed: December, 00 EB-00-0 Tab Schedule Page of by the Board as part of proceeding EB-00-0, and is net of the miscellaneous revenues associated with charges for providing the sentinel lights themselves. Sub-Transmission (ST) Customer Class 0 This customer class will include all three-phase customers with demands above 00 kw that provide their own transformation facilities and are connected at voltages of. kv or above. The class will also include all Embedded LDC supply points, some of which are connected at voltages below. kv. This ST class will include some customers from the following groups: T-class customers, Acquired General Service customers, Urban General Service customers, three-phase General Service customers, three-phase Farms, all Acquired Large Users, all Direct customers and all Embedded LDC supply points. The proposed Sub-Transmission customer class in 00 has 0 Delivery Points as show in Table.

9 Filed: December, 00 EB-00-0 Tab Schedule Page of Table Proposed Sub-transmission Delivery Points 00 Data Current Delivery Points Number of Delivery Points Urban General Service above 00 kw 0 General Service three-phase above 00 kw Acquired LDCs General Service customers above 00 kw T-Class customers above 00 kw Farm three-phase above 00 kw Acquired Large Users Embedded Direct Embedded LDCs Total Number of Delivery Points 0 The above mentioned customer classes have been used in Hydro One s Cost Allocation Study to allocate the 00 proposed Revenue Requirement amongst the customer classes.

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