Transmission Customer Meter Exit Workshop Presentation

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• Transmission Customer Meter Exit Workshop -
  Presentation
• Fall 2003

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Meter Exit

• Introduction - CCBR
• 1 - Hydro One Proposed Meter Rebate Exit
  Program
• 2 - Measurement Canada Requirements
• 3 - Meter Exit Options Implementation
• 4 - Market Rule Compliance Options
• 5 - Meter Service Provision
• Q A

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1 - Proposed Meter Rebate Exit Program

• July 2003 - The Minister requested the OEB, to
  invite Hydro One to submit proposal on meter
  rebate and exit fees.
• August 21st, 2003 - Hydro One submitted this
  proposal to the OEB for review.
• September 8th, 2003 - OEB arranged Technical
  Conference for interested stakeholders to provide
  their comments and/or reviews of Hydro Ones
  proposal.
• Board to make recommendations to Minister.
• Late 2003 - Minister to provide Direction to
  Board.

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1 - Proposed Meter Rebate Exit Program Meter
Rebate Proposal

• Annual Rebates of 5,700 per Meter Point.
• The rebates will apply to MMPs that
• choose to provide or acquire Wholesale Revenue
  Metering Service themselves, and
• that are transmission customers of Networks OR
  are distribution customers of a LDC that is a
  transmission customer of Networks.
• Payments will be forwarded annually - prorated
  and terminates with the next rate order.

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1 - Proposed Meter Rebate Exit Program Meter
Exit Fee Proposal

• The Uniform Meter Exit Fee is 5,200 per meter
  point plus GST.
• The Fee will be deducted from the annual rebates.
• Removal costs for metering installations not
  conveyed will no longer apply upon exit.

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2 - Measurement Canada Requirements2003 Seal
Period Expiry

• 418 meter points due in 2003, over 300 meter
  points will not comply with the MR by year end
• Seal expired devices will be in violation with
  Measurement Canada regulations as of January 1,
  2004
• IMO indicated that like for like replacement
  violates the Market Rules
• Hydro One applied to Measurement Canada and is
  granted a one year temporary dispensation on
  devices expiring in 2003 conditional on
• temporary dispensation terminates on Dec 31, 2004
• a formal agreement is made between the parties
• Formal agreements sent by e-mail on November 6,
  2003 to all MMP with seals expiring in 2003.
• MMP obligations under the Market Rules remain the
  same.

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2 - Measurement Canada Requirements2003 Seal
Period Expiry

• In accordance with Market Rules Hydro Ones
  obligation to provide transitional metering
  services ends.
• Hydro One will continue to service the metering
  installation to the same level as now, however
  the MMP-MSP agreement will not be extended.
• MMP to procure the services of an MSP for the
  compliant metering installation and submit form
  1300 showing the start date.
• Market Rules are being amended to extend the
  metering installation registration for one year.
• Metering installations due in 2003 and 2004 not
  brought into compliance by mid-2004, Hydro One
  will replace, like for like, the seal expired
  devices to avoid further dispensation requests to
  MC.

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2 - Measurement Canada RequirementsInstrument
Transformer Temporary Permission

• Feb 2002 - Measurement Canada granted temporary
  permission to continue to use unapproved ITs.
• The temporary permission is subject to renewal on
  May 1, 2004.
• Hydro One working with Measurement Canada on a
  Plan for this renewal and includes
• a detailed IT approval review using MC approval
  database
• the development and submission of a proposed plan
  to renew the temporary permission.
• Detailed review complete and proposal sent to
  Measurement Canada on October 21, 2003.
• Plan, if approve, would renew temporary
  permission to 2006.

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3 - Meter Exit Options ImplementationMeter
Exit Program Implementation

• To initiate process, customer must select one of
  the following options regarding the EXISTING
  METER

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3 - Meter Exit Options Implementation

• Outside Station
• Abandon Option

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3 - Meter Exit Options Implementation
(a)Outside Station - Abandon

• Notification to Hydro...Customer notifies Hydro
  One of decision to abandon.
• Hydro One will acknowledge the selection through
  an acknowledgement of release.
• Customer responsible for all market obligations,
  which may include new compliant metering
  installation.
• Hydro One absorbs cost of removal subject to OEB
  ruling.

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3 - Meter Exit Options Implementation

• Outside Station
• Purchase (Conveyance) Option

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3 - Meter Exit Options Implementation
(b)Outside Station - Purchase (Conveyance)

• Notification to Hydro One.
• Conveyance agreement drafted and sent to customer
  for signature (transfers wholesale revenue
  metering assets from Hydro One to MMP).
• Includes pole mounted metering equipment (PME) or
  equipment located at customer's facility.

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3 - Meter Exit Options Implementation
(b)Outside Station - Purchase (Conveyance)

• PME is typically located at the boundary of
  adjacent LDCs or the boundary of a direct
  customer.
• Unless specifically included, the MMP is only
  purchasing assets outlined on Schedule A of
  Conveyance Agreement which includes
• physical meter(s) and recorder,
• current ("CT's") and voltage transformers
  ("VT's"),
• the PME cabinet including associated
  communication interface, wiring, switches and
  ancillary devices,
• dedicated lightning arrestors located on same
  pole as PME.
• DOES NOT INCLUDE
• the pole or any equipment or wiring connecting
  the IT's to the feeder (lightning arrestors on
  other poles, primary side insulators, live line
  clamps, standoff insulators, switches).

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3 - Meter Exit Options Implementation
(b)Outside Station - Purchase (Conveyance)

• The customer/MMP must also address existing meter
  installation connection requirements with local
  field staff which include
• Joint Use Agreement, permit
• by-pass switches
• Telephone Connection Transfer form (included with
  Conveyance),
• Meter Power Requirements,
• Operational and Emergency contact numbers,
• Site specific issues must be addressed e.g.
  present location may impact future new customer
  connections - settlements with the appropriate
  field staff contact prior to customers initiating
  any field work on Hydro Ones property,
• Field staff are NOT MSP staff but Lines
  Forestry.

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3 - Meter Exit Options Implementation
(b)Outside Station - Purchase (Conveyance)Cont
acting Hydro One Field Staff Operations
Field Contacts Zone 1 - John Quagliotto (519)
354-5708 ext. 310 Zone 2 - Vince Limina (905)
264-3315 ext. 3315 Zone 3A - Rick Paqutte (519)
776-4173 ext. 3244 Zone 3B - Kent Trolley (888)
871-3514 ext. 3227 Zone 4 - Ewen McCormick (613)
678-3665 ext. 220 Zone 5 - Leonard Day (705)
725-1290 ext. 4117 Zone 6 - Bert Brand (705)
725-1290 ext. 4119 Zone 7 - Jeff Landriault
[phone] ext. 3206
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3 - Meter Exit Options Implementation
(b)Outside Station - Purchase (Conveyance)

• Customer Site
• Typically, entire meter installation conveyed.
• Telephone Connection Transfer - the customer must
  complete the request for telephone billing
  transfer that is included with the Conveyance
  Agreement. If not completed and returned, this
  could result in the inadvertent disconnection of
  the telephone line.

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3 - Meter Exit Options Implementation

• Inside Station
• Abandon Option

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3 - Meter Exit Options Implementation(c)
Inside Station - Abandon

• Customer notifies Hydro One of decision to
  abandon AND whether customer will stay inside the
  station.
• Hydro One will determine whether NEW customer
  metering installation is feasible within station
  (New Connection Agreement).
• Customer responsible for all market obligations,
  which may include new compliant metering
  installation and customer must submit new
  connection application.
• Hydro One removes all existing metering
  installation infrastructure.
• absorbs cost of existing meter removal pending
  OEB ruling.

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3 - Meter Exit Options Implementation

• Inside Station
• Use Existing ITs Option

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3 - Meter Exit Options Implementation(d)
Inside Station - Use Existing ITs

• Customer/MSP may visit station (escorted - , 33
  days notice) to view metering installation to
  determine feasibility of using existing ITs.
• Customer notifies Hydro One in writing of
  decision to use existing instrument transformers.
• Hydro One, Project Manager to arrange site visit
  for customer/MSP to verify implementation of
  option selected and estimate meter connection
  costs.
• Customer to sign-off on option selection and
  estimated costs.

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3 - Meter Exit Options Implementation(d)
Inside Station - Use Existing ITs

• Hydro One prepares Customer Wholesale Revenue
  Metering Agreement that allows site access and
  use of Hydro One ITs.
• Hydro One, Project Manager will prepare
  construction agreement for connection costs to
  regulated assets.
• Customer must sign both agreements for work to
  commence.
• NB customer will incur additional costs related
  to the installation from their own MSP.

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3 - Meter Exit Options Implementation
New Construction
Use Existing ITs
Regulated -
New Customer ITs
Regulated -
Existing ITs
Non- Regulated
Meter
Meter
Non- Regulated
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3 - Meter Exit Options Implementation

• Inside or Outside Station
• De-registration Option

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3 - Meter Exit Options Implementation(e)
Inside or Outside Station - De-registration

• Applies only to meter points not directly
  connected to the IMO controlled grid.
• Customers that are de-registering embedded points
  from the wholesale market must
• notify Hydro One MSP and AE to complete
  de-registration,
• coordinate effective date of de-registration with
  Hydro billing cycle 60, (minimum 60 days).
• Once de-registered
• Hydro One assumes metering responsibilities,
• will no longer receive energy billing from the
  IMO, instead will receive energy billing from
  Hydro One,
• Must provide prudentials (Retail Settlements
  Code, if required),
• Access settlements data via Hydro One MV-WEB.

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3 - Meter Exit Options ImplementationHONI
Station Access

• Hydro One Station Access Policy - NOP-019, July
  11, 2002.
• Escort requirements, exemptions
• Specifies safety training
• Template agreement
• Security check
• Ontario Government Bill 58 - transferred station
  lands.
• Customers/MMPs who have TCAs must comply with
  Hydro One Station Access Policy as per 10.14.3.
• MSPs/Third Parties requiring access must complete
  an Access Agreement.

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3 - Meter Exit Options Implementation Where Do
We Go From Here?

• It is critical for customers to notify Hydro One
  of their exiting option in writing.
• If you have a meter installation(s) expiring this
  year (2003), and have not contacted Hydro One
  (tx.meterexitprogram_at_HydroOne.com) on how you
  would like to proceed, please do so immediately
  as year-end is fast approaching.
• Once selected, Hydro One will initiate the exit
  process.
• Hydro One will continue to sign exit agreements
  subject to the pending ruling from the OEB on our
  August 21, 2003 proposal.
• As previously mentioned, customers whos seals
  are expiring in 2003 may choose to enter into a
  Meter Dispensation contract.

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4 - Market Rule Compliance OptionsIMO - Options

• - Full Upgrade.
• - Upgrade using the Alternative Metering
  Standards.
• - Upgrade metering only with a conforming Main
  Alternate.
• - Upgrade Metering Only with a conforming Main
  Meter (would require routine inspections).
• - Re-seal Recorder (only applicable to
  installations with two meter points to one
  recorder where the recorder seal period is
  triggering the earliest re-seal).

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4 - Market Rule Compliance OptionsOption
Selection
Hydro One Options 1. Abandon 2. Use ITs 3.
Purchase
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5 - Meter Service Provision Transitional MSP
Market

• Approximately 1,200 legacy wholesale revenue
  metering installations in Ontario
• HONI is the Transitional MSP for approximately
  170 MMPs for 850 installations
• Transitional MSP Market excludes new metering
  installations since IMO Market Open - May 1, 2002
• HONI primary focus is on the 350 legacy
  installations for which HONI is the MMP

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5 - Meter Service Provision Transitional MSP
Agreement

• Chapter 6, Section 3.1.2.2 of the IMO Market
  Rules requires each MMP to have an Agreement with
  an MSP
• All 170 MMPs utilizing HONI-owned installations
  have signed the transitional MSP Agreement dated
  October 31, 2001
• Transitional MSP Agreement for each metering
  installation shall expire on the earlier of
• six (6) years from Market Open
• upon the earliest seal expiry date
• when abandoned by the MMP

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5 - Meter Service Provision Transitional MSP
Service

• Transitional MSP Agreement ensures compliance
  with IMO Market Rules concerning
• Meter Failures and other Trouble Responses (2
  business days)
• Instrument Transformer Failures (12 weeks)
• The cost of this support is paid for through the
  OEB approved Network Transmission Tariff

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5 - Meter Service Provision Transitional MSP
Role at Meter Exit

• Transitional MSP Agreement expires upon Meter
  Exit
• De-registration of existing installation
• Transfer of available documentation as applicable
  and required to the new MSP
• Update meter owners records re Measurement
  Canada obligations

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5 - Meter Service Provision Deregistration - MMP
Obligations

• MMP obligations at time of deregistration
  include
• confirmation that the Meter Exit Agreement is
  finalized with the HONI Meter Exit Program.
• No meter removal or de-registration is permitted
  prior
• confirmation that IMO Form 1390 is submitted to
  the IMO stating the date when the new MSP will be
  responsible for the subject metering point,
  including all associated Meter Trouble Reports

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5 - Meter Service Provision Deregistration - MMP
Obligations (contd)

• MMP obligations at time of deregistration
  include
• confirmation that the HONI Transmitter has
  approved the firm date for the de-registration of
  the metering installation. (NOTE While HONI MSP
  will endeavour to communicate this information to
  the HONI Transmitter, we cannot guarantee such
  communication. It always remains the MMP's
  accountability to formally obtain HONI
  Transmitter approval for such meter point
  de-registration.)
• confirmation of the firm date for the
  de-registration to HONI MSP

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5 - Meter Service Provision Competitive MSP
Market in 2003

• 348 meter points have seals that expire
• 50 of these qualify for the recorder reseal
  option
• 298 meter points require upgrading
• 194 of the 298 (56) are in Hydro One stations
• Plus new installations and those choosing to exit
  early
• Given this work load, it will take more than the
  efforts of all 14 MSPs in the province to complete

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5 - Meter Service Provision Hydro One 2003
Metering Program

• 67 meter only/partial/full upgrades to be done
• Combined with maintenance requirements, IMO
  audits, and MEC calculations, this program almost
  completely utilizes our existing resource
  capacity
• Add in pending de-registrations and Hydro One
  site access and shared use requirements
• All on top of regular maintenance and trouble
  call response activities

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5 - Meter Service Provision Hydro One in the
2003 Market

• The current IMO Market continues to be stalled
• Customers are not clear as to what they need or
  want to do with their metering
• Current resource constraints prevent Hydro One
  from accommodating much of the potential MSP
  business
• Hydro One is very open to competition in the MSP
  marketplace and has advised other MSPs and the
  IMO accordingly

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5 - Meter Service Provision Metering Upgrades
2003 2004

• Hydro One is an MSP in the competitive IMO
  Market, however, it cannot resource the amount of
  upgrades required by end of year 2004 (gt600)
• Given the current uncertainty in the IMO Market,
  Hydro One will continue to ensure that its
  obligations and the customers needs are met
  under Measurement Canada regulations
• HONI MSP is unable to provide Estimates for
  metering upgrades for the remainder of 2003
• HONI MSP will reassess its position to assist
  other MMPs in early 2004

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5. Meter Service Provision Metering Upgrades
2003 2004 (contd)

• Current uncertainty about the continued use of
  non-approved Instrument Transformers (re Plan
  submitted to Measurement Canada) is delaying HONI
  2004 work planning and prevents HONI commitment
  to support other MMPs
• HONI will reassess its capacity to support other
  MMPs upon Market Rule clarification and new
  Provincial Government direction for 2004

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5. Meter Service Provision Metering Upgrades
Suggested Approach for MMPs

• Upon receipt of their Meter Exit Schedule 2, MMPs
  are strongly advised to engage an MSP to
• confirm their preferred Schedule 2 option with
  the Meter Exit Program (including site visit as
  required, especially for installations remaining
  within the Hydro One stations)
• upon HONI Meter Exit Program acceptance of the
  MMPs preferred Schedule 1 option, obtain quotes
  for the metering upgrade from MSPs
• proceed with the metering upgrade (HONI will
  perform Regulated work as required and defined
  by the Meter Exit settlement)

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5. Meter Service Provision Ongoing MSP Support

• MMPs must have a new MSP Agreement for each
  metering installation that is upgraded and exits
  the Transitional MSP Agreement
• HONI MSP is able to provide ongoing MSP support
  for existing metering installations and those
  that have been upgraded
• HONI MSP can quote its ongoing MSP service when
  requested by the MMP - subject to resource
  availability

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Questions and Answers