Electricity Planning in the West of Thunder Bay area Local Advisory Committee Meeting #2 April 19-20, 2016
West of Thunder Bay Regional Planning Process and Timeline 2
Recap: Nov 2015 LAC Meeting West of Thunder Bay Electricity System - Demand Forecast - Local Generation Resources - Regional and Bulk Transmission System Bulk and Regional Electricity Needs - Desire to minimize the impact of power outages to customers Potential growth may exceed existing bulk system capability – timing is uncertain - - Interests in community energy planning and community-based solutions Role and Scope of the Local Advisory Committee (LAC) Potential Areas of Interests - Update on the northwest electricity planning activities LAC Meeting #2 - Cost responsibility - Cost-benefit analysis of supply alternatives - Impact of climate change and low carbon policy - Availability of natural gas and its implications on electricity supply Potential areas of focus - Imports: Technical and commercial considerations in future LAC meetings - Community-based solutions and community energy planning - Impact of power outages to customers 3 - Customer support programs 3 3
Purpose Provide an update on the electricity planning activities in the Northwest Clarify the study scope and review the draft outcomes from the West of Thunder Bay Integrated Regional Resource Plan (IRRP) Discuss key areas of focus for future LAC meetings 4
Update on Northwest Electricity Planning Activities 5 5
Development work is currently underway for two bulk transmission projects in Northwest Ontario Northwest Bulk Transmission Line East-West Tie Expansion Priority projects identified in Ontario’s 2013 Long Term Energy Plan 6 6
East-West Tie Expansion Scope: - A new double circuit 230 kV line, East-West Tie approximately 400 km in length, Expansion from Wawa to Lakehead (near Thunder Bay) via Marathon Purpose - Increase the power transfer capability with Northeastern Ontario to supply demand growth forecasted for the Northwest in the coming decade - Maintain reliability given a changing supply mix in the region - Improve flexibility and efficiency of the Northwest system 7 7
East-West Tie Expansion Status: - IESO submitted a need update report to the OEB, which continues to recommend the East West Tie expansion - Expected In-service date of 2020 - Project proponent (Nextbridge) will continue development work and will initiate third round of community open houses in Spring 2016 8 8
NW Bulk Transmission Line Scope: - A new double-circuit 230 kV line Northwest Bulk Transmission Line between Thunder Bay and Atikokan and a single-circuit 230 kV line from Atikokan to Dryden - Alternate routes may be considered as part of the development work Purpose - Provide adequate bulk electricity system capability to supply potential growth in West of Thunder Bay and North of Dryden areas 9 9
Northwest Bulk Transmission Line Status: – In October 2014, a letter was provided to Hydro One describing the need, scope and timing for the project and requesting initiation of development work – A number of solution options are feasible and under consideration (e.g. transmission, generation, imports) – Hydro One is carrying out early development work to shorten the lead time of the project and maintain the viability of the transmission option – IESO is working with Hydro One to develop the preliminary planning specifications, in- service date and project schedule 10
Regional Electricity Planning Activities in the Northwest 11 1 1
Remote Community Connection Plan Scope: – 25 communities are currently supplied by remote diesel generators The Plan Requires: – 1,000 – 1,500 km of transmission – 875 – 950 km of distribution – 9 – 11 transformer stations – 21 distribution stations – Capital cost ~$1 billion Key Drivers: – Costs of diesel are high – Using diesel generation impacts the environment and quality of life (e.g. Noise, diesel exhaust, possible spills, service outages) – Communities face growth and development constraints 12
Remote Community Connection Plan Status : – The 2014 Draft Remote Community Connection Plan concluded that is economic to connect 21 of the 25 Remote First Nation Communities in Northwestern Ontario The IESO will: – Continue to engage with all 25 communities and consider comments from ongoing community engagement in ongoing planning – Issue a reference plan in support of proponents developing projects – Continue to work with communities that are not planned for connection to develop Electricity Service Plans that are supported by each community First Nation Transmission Proponents will: – Develop a detailed plan for how the transmission lines will be routed and built – Obtain financing and conduct development work, design, engineering and procurement for transmission projects – Undertake approval processes (OEB, EA, etc.) For more information on the Remote Community Connection Plan, please see: Website: http://www.ieso.ca/Pages/Ontario%27s-Power-System/Regional-Planning/Northwest-Ontario/Remote-Community- Connection-Plan.aspx 13
North of Dryden Study Scope: – Supply to Pickle Lake sub-system – Supply to Red Lake sub-system – Supply to Ring of Fire sub-system Drivers: – Connection of Remote Communities – Potential growth in the mining sector – Development of the Ring of Fire 14
North of Dryden Status – Final IRRP published in January 2015 – Recommendations are being implemented by the appropriate proponents Recommendations – New single circuit 230 kV transmission line from the Dryden/Ignace area to Pickle Lake – Upgrading the existing 115 kV lines from Dryden to Ear Falls (E4D) and from Ear Falls to Red Lake (E2R) (for the Red Lake subsystem) and install the necessary voltage control devices For more information on the North of Dryden area regional planning activities, please see: Website: http://www.ieso.ca/Pages/Ontario's-Power-System/Regional-Planning/Northwest-Ontario/North-of-Dryden.aspx Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/North-of-Dryden.aspx 15
Greenstone-Marathon Scope – Supply to Greenstone – Supply to North Shore – Supply to Marathon Area Key Drivers – Mining development – Gas to oil pipeline conversion – Recovery of forestry industry – Growth in communities Status: – An Interim IRRP report has been developed with community input to facilitate decision making related to electricity supply for near-term industrial and community developments in the area – The final IRRP is currently under development – Third LAC meeting: May 12, 2016 For more information on the Greenstone & Marathon regional planning activities, please see: Website: http://www.ieso.ca/Pages/Ontario's-Power-System/Regional-Planning/Northwest-Ontario/Greenstone-Marathon.aspx 16 Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/Greenstone-Marathon.aspx
Thunder Bay Scope – Supply to Thunder Bay and surrounding area Key Drivers – Community growth – Potential mining growth – Pipeline conversion – Impact of growth in the Greenstone area on Thunder Bay electricity system For more information on the Thunder Bay area regional planning activities, please see: Website: http://www.ieso.ca/Pages/Ontario%27s-Power-System/Regional-Planning/Northwest-Ontario/Thunder-Bay.aspx Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/Thunder-Bay.aspx 17
Local/Community Energy Planning Activities 18
Review Key Outcomes from West of Thunder Bay IRRP 19
Types of Electricity Planning Addresses provincial Integrates local electricity Examines local electricity electricity system needs priorities with provincial policy needs and priorities at the and policy directions directions & system needs community-level IESO Ministry of Energy Local Distribution Transmitters IESO Companies Local Distribution Transmitters Companies First Nations communities & Métis, municipalities and industry stakeholders 20 Key Participants
Scope of Regional Planning Process • A process for identifying and meeting electricity needs for a region Carry out by local utilities, transmitter and the IESO (“Technical Working Group”) - - Revisit at a minimum every 5 years • Key Outcomes: A 20-Year Electricity Plan - Work with communities to understand the electricity needs and local priorities - Identify need for infrastructure, generation, conservation programs and/or innovative solutions - Layout a high-level near-term implementation plan and long-term roadmap • Projects identified in the plan will still need to consider: - Project details/specification and siting/routing - Approval processes (e.g. environmental assessment, regulatory approval) - Project-level stakeholder and community engagement - Project funding and cost-allocation • Project-related considerations are beyond the scope of regional planning ç - Will be considered as part of project development process 21
Electricity System in West of Thunder Bay 22
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