COST DATA FOR LOW VOLTAGE SWITCHGEAR COMPENSATION
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1 Filed: September, 00 Exhibit G Page of COST DATA FOR LOW VOLTAGE SWITCHGEAR COMPENSATION.0 INTRODUCTION Under Proceeding RP--00 the Ontario Energy Board approved that two distribution companies (Toronto Hydro Electric System Ltd. and Hydro Ottawa Ltd.) should continue to receive compensation for the low voltage switchgear equipment they own, operate and maintain in Hydro One s transformation stations. 0 The estimate of average cost of providing low voltage switchgear service in Proceeding RP--00 was reviewed so that the compensation amount can be determined for use in calculating the 00 and 00 Transformation Connection Service revenue requirement and rates. The purpose of this Schedule is to document the derivation of the average cost..0 BACKGROUND 0 In the 0s, Toronto Hydro and Ottawa Hydro decided to install and pay for their own low voltage switchgear at some of the Ontario Hydro Owned transformation stations supplying their loads. There was no credit paid to these utilities at the time. In the utilities involved negotiated with Ontario Hydro for a credit in recognition of their ownership of these assets. This credit has been paid by Ontario Hydro since that time, and the value of the credit was escalated from time to time in the same proportion as the transformer station asset base ( kv) has escalated. Upon open access, the credit mechanism ceased.
2 Filed: September, 00 Exhibit G Page of Hydro One, Toronto Hydro Electric System Ltd. and Hydro Ottawa Ltd. submitted a joint low voltage switchgear compensation proposal to Ontario Energy Board for resolution as part of the RP--00 on October 0, 000. The Board approved the proposal which specifies that Toronto Hydro Electric System Ltd. and Hydro Ottawa Ltd. should continue to receive compensation for the low voltage switchgear equipment they own, operate, and maintain in Hydro One s transformation stations after Open Access. 0.0 ESTIMATING AVERAGE COST OF LOW VOLTAGE SWITCHGEAR SERVICE The average cost of providing the low voltage switchgear service is estimated based on the Capital and OM &A costs associated with the low voltage switchgear facilities that are typical of Hydro One s Dual Element Spot Network ( DESN ) stations. The average low voltage switchgear service costs are expressed as a percentage of total station costs. Although the actual amount of the cost figures may have varied over time, the percentage has remained relatively constant. The cost estimation completed for this submission uses the same methodology as described in Proceeding RP Average Capital Costs The facilities to be covered by the low voltage switchgear service are summarized in Table below. Station facilities that are not directly related to the low voltage feeder switching (e.g. step-down transformers) or facilities that are provided at the station irrespective of the low voltage feeder switching (e.g. station fence) are excluded.
3 Filed: September, 00 Exhibit G Page of Table Station Facilities Associated with Low Voltage Feeder Switching Included Feeder switching facilities (including circuit breakers and disconnect switches) Protection & control equipment on feeders Share of low voltage bus protection Share of steel structures or metalclad and footings Share of buildings Share of station battery Methodology of Estimating Average Capital Costs Excluded High voltage equipment Step down transformers Transformer breakers and associated disconnect switches Bus-Tie Breaker and associated disconnect switches Neutral reactors or grounding transformers Capacitors and associated equipment Share of Protection & control equipment not associated with feeders Station service Station total metering and billing metering Supervisory control equipment Site Fence Outdoor lighting Oil, water, sanitation and drainage systems Fire protection 0. Identify the capital costs of station elements for typical Hydro One transformer station configurations.. Determine the percentage of each station element cost attributable to the low voltage switchgear service. The percentage is verified against the actual low voltage switchgear costs of a typical station.. Apply the percentage in () to each station element cost to calculate the share of costs attributable to the low voltage switchgear service.
4 Filed: September, 00 Exhibit G Page of. Determine the percentage of low voltage switchgear service costs for each station configuration.. Weight the percentage in () by the percentage of DESN stations in each configuration to determine the percentage contribution to low voltage switchgear service for each asset configuration.. Sum the percentages in () to arrive at the total weighted average of transformer station capital costs associated with low voltage switchgear service. 0 Results The results of the average capital cost calculation are shown in Table.
5 Table : LVS Credit Average Capital Costs Calculation Filed: September, 00 Exhibit G Page of Actual Cost Estimate Cost (E&CS July 00) LV Credit Costs Belle River TS Bermondsey Jones Jones Bermondsey Small TS** New HN Station Bermondsey Jones Jones Bermondsey Small TS** New HN Station -.kv, AIS 0-kV -kv -.kv 0-.kV -./. kv Jones 0-kV -kv -.kv 0-.kV -./. kv Jones x / MVA x/ MVA, x0/ MVA x0/ MVA x0/00 MVA x0/ MVA 0-. x/ MVA, x0/ MVA x0/ MVA x0/00 MVA x0/ MVA 0-. Fdrs Fdrs Fdrs Fdrs 0 Fdrs Fdrs 0/ MVA Fdrs Fdrs Fdrs 0 Fdrs Fdrs 0/ MVA In-service May 00 Trafalgar TS I/S Dec escalated to 00 **** Cost Factor (%) Applicable to LV Credit Trafalgar TS I/S Dec Major Equipment Transformers,000,00,0,0,0,0,0 Circuit Breakers - Trf Brkrs + Bus Tie Brkr (Including Bus Duct) Feeder Brkrs % HV Switchyard & LV Structures or GIS, % 0 0 LV Disconnect Switches, PT's & SA % HV Switches & Other equipment Capacitor Banks - kv x. Mx none Elect Hardware & Spare Components % Subtotal,,,0,,,0,,,,0, Ancillary / Auxilliary Equipment Relaying - HV Line related Relaying - Feeders % Local Control / annunciation 0 0% Battery/Charger 0 0% Grounding / Instrumentation Wiring % 0 Neutral Reactors 0 0 Station Service Trfs x kva Netralizing Trfs or Tone Equip none HVAC Lighting 0 0 Subtotal 0 Civil Construction Site Prep & Grading Access Road & Services* Control Bldg % Switchyard Foundations & Oil Containment % Finish Grading & Fencing Site Restoration & Landscape Subtotal,00,,,,,0 Electrical Construction Transformers - ship of load, dress Erection & Installation % Grounding & Aux Services % Control & Instrumentation 0 0 0% Subtotal, Commissioning % 00 0 Approvals, Permits Engineering & Design Geotech, Noise, Ground Studies % Preliminary Eng & Related Studies % 0 0 Detailed Engineering,00,00,00,0,0,000, % Site Supervision 0% Subtotal,0,0,,,,00, Project Management Project Manager & Support Services Total 0,,,0,00,,0,,,,0,0,, Contingency (0% of Major Equipment) Contingency (% of Labour Related) Interest During % PeopleSoft (NS) surcharges, sundries, etc.(.%),00,,,0,,, % Total Station Costs,,,,0, 0,,0,,,0,,, Land Cost*** & Regulatory Approvals Total Costs - STATION WITH LAND,,,0,0, 0,, LV Credit % 0% 0% 0% 0% % % Approximate Number of HONI DESN Stations in Each Category ***** : % Contribution OF LV Credit for Each Asset Class :.%.%.%.%.%.% TOTAL Weighted Averge of LV Credit :.% Notes: * Not included in Elecsar Eng Estimates. Estimate of $k for access roads added seperately. ** Small TS based on similar estimate for Jones type station with only feeder positions *** Land Cost based on $00k/acre **** Escalation factor for to 00 =.% ***** Not all stations have the same number of feeders as the cost examples 0
6 Filed: September, 00 Exhibit G Page of. Average Operating & Maintenance Costs The costs are based on an average operating and maintenance costs of a typical DESN station. All annual costs for routine preventive maintenance activities were derived from the Preventive Maintenance Optimization ( PMO ) process described in Exhibit C, Tab, Schedule. 0 Methodology of Estimating Average Operating and Maintenance Costs. Identify the OM&A costs of station elements and related maintenance activities for a typical Hydro One DESN station.. Determine the percentage of the costs from () attributable to the low voltage switchgear service.. Calculate the share of costs attributable to the low voltage switchgear service based on the percentage from ().. Determine the percentage of the total average OM&A costs of a typical DESN station attributable to the low voltage switchgear service. 0 Results The results of the average OM&A cost calculation are shown in Table below.
7 Filed: August, 00 Draft Exhibit G Tab Page of Table Average Operating & Maintenance Costs DESN OM&A Costs Annual Equip. Cost / unit Qty Mntc. Costs (annualized) Cost Factor(%) Applicable to LV Credit LV Credit Costs Note Major Equipment Transformers 0 $,0 Tapchangers 0 $, Feeder Brks 0 $,0 00% $,0.00 Transformer Bank, Bus Tie and Cap Brks 0 $,0 Bus $ HV Switches - Motorized $ LV Switches - Manual 0 $,0 Note % $,.00 Subtotal $, Ancillary/ Auxillary Equipment Relaying - HV Bus Backup $ Relaying - Transformer Diff. $ Relaying - Transformer Gas Protection $ Relaying - Transformer Backup $ Relaying - Line Backup ( non self checking) $ Relaying - Bus Protection $ Relaying - Breaker Failure $ Relaying - Load Shedding $ Relaying - Cap Protection $ Relaying - Feeder Protection $ Zone Test Trip 0 $ All Protection - Inspection $ Note % $. Battery - Inspection & Maintenance 0 $,0 Note % $. Battery Charger $, Note % $. Station Service Trfs Maintenance 0 $0 Station Service AC/DC $, Neutralizing Trfs 000 $,000 Note Telecom Communication 00 $,00 Telecom Metallic Cable $ Note HVAC and Fans $, Inspect All NT, IT & Optical isolators $ Subtotal $, Station & Site Station Inspection - Power Equipment $, Note % $. Station Thermovision $ Note % $0. Buildings, enclosures, yard, fence, water & sewage 0 $,0 Station Fire Protection 0 $0 Station Fire Detection System $ Station Containment System - minor maintenance $ Roads, Bridges, Railroads & Cranes 0 $0 Station herbicide application & reporting $, PCB & waste mgmt 0 $,0 Land Assessment and Remediation $, Subtotal $,0 Other Operational Routines $0 Note $0.00 Field Switching 0 $,0 Note % $0. Trouble Calls $, Note % $,0. Corrective Maintenance - Station Equipment $, Note % $,. Corrective Maintenance - P&C $, Note % $,0. Corrective Maintenance - Revenue metering $, Corrective Maintenance - Telecom $ Note Corrective Maintenance - Infra-structure $, Note Corrective Maintenance - Ancilliary Equip. $, Subtotal $, Total Station OM&A Costs $, LV Credit $ $, Note: LV Credit %.% ) % credit was based on LV feeder switches out of a total of 0 LV switches including LV switches for bank/bus-tie/cap breakers and ) % credit was based on feeder protections versus a total of protections at the station. There is no routine feeder protection ) % credit was based on the proportion of LV feeder breakers versus the total number of major equipment at the station (I.e. transformers, tapchangers, HV motorized switches, bank breakers, bus-tie breaker, cap breaker and feeder breakers). ) All Telecom work is associated with HV bus backup, line backup and transformer protections. ) Operation Routines are no longer tracked as a separate entity since H does not have travelling operator, instead it is incorporated in the Field Switching Expense. ) % credit for field switching was based on the proportion of LV feeder breakers to the total number of switching equipment at the station (I.e. tapchangers, HV switches, bank breakers, bus-tie breaker, cap breaker, 0 LV switches and feeder breakers) ) Corrective Maintenance - Infra-structure includes all corrective work associated with Station buildings, structures, yard, fence, drains and all other installed electrical and mechanical systems at site, but exclude all power and ancillary equipment.
8 Filed: September, 00 Exhibit G Page of.0 CONCLUSION The average low voltage switchgear service costs comprise.0% of Hydro One s total DESN station cost. This remains the same as the previous estimate in Proceeding RP- -00 filed with Ontario Energy Board on October 0, 000.
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