Power Workers' Union (PWU) INTERROGATORY #1. Ref (a): Participant Information Package: Exhibit C1-2-1, Page 5 of 6, Table 2 (OM&A Expenditures)

Transcription

1 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package: Exhibit C--, Page of, Table (OM&A Expenditures) Table : 0 Board Approved versus 0 Actual OM&A Expenditures OM&A Categories 0 Board Approved ($ million) 0 Actuals ($ million) Variance ($ million) Sustaining..0 (.) Development.. (.) Operations.. (.0) Customer Care.. 0. Common Corporate & Other Costs... Taxes other than Income Taxes.0. (.) Total OM&A 0.. (.) Ref (b): Exhibit C--, Page of, Lines -: Hydro One Transmission s actual 0 OM&A costs were $. million lower than the $0. million approved by the Board in Proceeding EB The reduction in the Sustaining, Development, and Operations work program spend reflects Cornerstone savings (both are included in the Board Approved Shared Services and Other total in Table ). a) The actual sustaining OM&A spending in 0 was less than the Board-approved amount by about $M (Ref a). Is the variance fully attributable to Cornerstone savings? If not, please identify and describe any Board-approved planned sustaining work that was later cancelled, deferred or reduced in scope and explain why. a) The actual Sustaining OM&A expenditures in 0 are lower than Board Approved amounts primarily for the following reasons: Lower than anticipated cost of corrective work for both Lines and Stations assets, partially attributed to the capital replacement programs addressing end of life components; Lower than anticipated costs to complete required work in Site Infrastructure Maintenance; Lower than anticipated volume of work on Cyber Security partially associated with external delays in the approval of new standards; and

2 Filed: Tx Rates Schedule Page of Delays in the Engineering and Environmental Support category for Class EA process documentation updates due to slower than planned progress associated with on-going external stakeholder consultations.

3 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit C--, Page of, Table (OM&A Expenditures) Table : 0 Board Approved versus 0 Projected OM&A Expenditures OM&A Categories 0 Board 0 Variance Approved Projected ($ million) ($ million) ($ million) Sustaining.. (0.) Development.. (.) Operations.0. (.) Customer Care... Common Corporate & Other Costs Taxes other than Income Taxes.. (.) Total.. (.) Ref (b): Participant Information Package. Exhibit C--, Page of, Lines -: The reduction in the Sustaining, Development, and Operations work program spend was driven by the need to stay within the overall Transmission business OM&A envelope approved in the Board s last Decision, and also reflects Cornerstone savings. These variances are partially offset by an increase in Common Corporate and Other Costs primarily in the Real Estate and Facilities area. a) The sustaining OM&A spending in 0 is projected to be less than the Board-approved amount by about $0M (Ref b). Please identify and describe any planned sustaining work that was later cancelled, deferred or reduced in scope as a result of the need to stay within the overall Transmission business OM&A envelope approved in the Board s last Decision described in Ref b. What proportion of the $0M variance is attributable to Cornerstone savings? a) The actual Sustaining OM&A expenditures in 0 are lower than Board Approved amounts primarily for the following reasons: Lower than anticipated costs to complete Power Equipment maintenance program; Lower than anticipated costs to complete the Ancillary Equipment maintenance program; and Lower than anticipated costs to complete the Site Infrastructure maintenance program.

4 Filed: Tx Rates Schedule Page of 0 0 Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit C--, Page of, Lines 0- (Vegetation Management): In addition to the condition patrols, Hydro One Transmission will be required to inspect applicable lines annually as outlined in the recent revision to the NERC Vegetation Management Standard (FAC-00-); which became enforceable in 0. a) Please describe the new or additional requirements relating to vegetation management that are included in the revised NERC Vegetation Management Standard. b) Please provide the NERC Vegetation Management Standard (FAC-00-). a) Hydro One is now required to annually inspect vegetation on all circuits operating at 0kV and above by either helicopter or ground to comply with the NERC standard that states Each applicable Transmission Owner and applicable Generator Owner shall perform a Vegetation Inspection of 00% of its applicable transmission lines (measured in units of choice - circuit, pole line, line miles or kilometers, etc.) at least once per calendar year and with no more than calendar months between inspections on the same ROW [right of way].. b) Please refer to the following link for the latest version (Version ) of the NERC Transmission Vegetation Management standard.

5 Filed: Tx Rates Schedule Page of 0 Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit C--, Page of, Table (Vegetation Management) Vegetation Management OM&A ($ Millions) Bridge Historic Years Description Year Test Years Brush Control Line Clearing Property Owner Contact Condition Patrols Demand Maintenance Grounds Maintenance Total a) Please provide the corresponding historic and planned levels of accomplishment for the test years for brush control (ha) and line clearing (km). The corresponding historic accomplishment and planned levels for brush control and line clearing are as follows: Brush Control (ha),0,0,,000,000,000 Line Clearing (km),,0,,00,00,00

6 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page, Lines -..0 SUMMARY OF CAPITAL BUDGET The proposed capital expenditures result from a rigorous business planning and work prioritization process that reflects risk-based decision-making to ensure that the appropriate, cost-effective solutions are put into place to meet Hydro One Transmission objectives. These processes are described in detail in Exhibit A, Tab, Schedules to. Ref (b): EB-0-0. Exhibit D--, Page, Lines -..0 SUMMARY OF CAPITAL EXPENDITURES The requested capital expenditures result from the rigorous business planning and work prioritization processes described in detail at Exhibit A,, Schedules through. These processes reflect a risk-based decision-making approach to ensure appropriate and cost-effective investments. a) As per Ref (a), the business planning and work prioritization processes for this application are described in Exhibit A, Tab, Schedules to as provided in the Participant Information Package. As per Ref (b), the business planning and work prioritization processes for HONI s 0-0 Distribution Custom Rate Application are described EB-0-0, Exhibit A,, Schedule to. Please confirm that HONI s business planning and work prioritization processes outlined in the distribution and transmission applications are identical. If not, please provide Exhibit A, Tab, Schedule to. HONI s business planning and work prioritization processes outlined in the distribution and transmission applications are identical.

7 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page, Lines TRANSMISSION ASSET RISK ANALYSIS The information presented below entails the asset risk analysis summaries for key transmission assets, based on the asset risk assessment process introduced in Exhibit A, Tab, Schedule. Ref (b): EB-0-0, Exhibit A--. Asset Risk Assessment. Page, Lines -..0 ASSET RISK ASSESSMENT PROCESS Hydro One s Asset Risk Assessment methodology is built on the foundation of the Asset Condition Assessment approach previously filed in proceeding EB Since then, Hydro One has completed an asset inventory of its key distribution assets that was collected during routine maintenance and inspections. This information is centralized in a repository and has been linked to other non-condition based information such as outage and customer data. This has enabled Hydro One to extended its assessment methodology to improve its focus on non-condition risk factors. This newly coined Asset Risk Assessment enables a holistic view of asset risk, and ultimately, improved decision making. Ref (c): EB Exhibit C--. Transmission Assets and Sustaining Investment Overview. a) The PWU notes that in the current application the condition of assets for a transmission asset class is assessed based on risk while in EB-0-00 it was based on the state of condition of the asset class. Is there equivalence between the two asset condition assessments? Specifically, is there equivalence or matching between levels of risk such as very low, low, fair, high and very high AND states of condition such as very poor, poor, fair, good and very good? What is Hydro One s recommendation to parties that wish to conduct a comparative trend analysis of the condition of Hydro One s transmission assets? Correct, Hydro One no longer uses the terminology Very Good, Good, Fair, Poor, and Very Poor of the Asset Condition Assessment applied in previous proceedings; rather Hydro One now utilizes an Asset Risk Assessment methodology that classifies equipment condition based on level of risk relative to the asset population. The overall asset risk assessment methodology is more comprehensive than the Asset Condition Assessment review in that it provides additional information on non-condition risk factors.

8 Filed: Tx Rates Schedule Page of However for the condition risk factor of the asset risk assessment, the condition assessment scale used in the current application of Very Low Risk to Very High Risk is comparable to the Very Good to Very Poor condition assessment scale used in the EB proceeding. As such condition information presented for key transmission assets in Exhibit D, Tab, Schedule could be utilized to conduct a high level comparative analysis to the condition information presented in previous applications.

9 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB PWU, Page. a) Based on the table provided in the reference, please update the following table with most recent data on a best effort basis:

10 Filed: Tx Rates Schedule Page of # Asset Class Transformers Breakers Protection Cables Towers Conductors Wood Pole Fleet Size (#units) ESL (years) Historic Replacement Rate (%/yr) Proposed Replace Rate (%/yr) % of assets beyond ESL 00 % of assets beyond ESL 00 % of assets beyond ESL 0 % of assets beyond ESL 0 a % of assets beyond ESL 0 assuming historic rate b % of assets beyond ESL 0 assuming proposed rate 0 % of assets in poor and very poor condition % of assets in poor and very poor condition % of assets in poor and very poor condition - 0 % of assets in very high and high risk Equipment Frequency of forced outages compared to CEA Average Notes:. The 0 and future year data are from pre-filed evidence: Exhibit C, Tab, Schedule ; Exhibit D, Tab, Schedule ; Exhibit A, Tab, Schedule ; The 00 year data are from Appendix A of Exhibit C, Tab 0, Schedule of EB The 00 year data are from Appendix A of Exhibit D, Tab, Schedule of EB With the exception of Breakers and Cables, the At a Glance Tables in EB-0-00, Exhibit C, Tab, Schedule were not updated as part of the August update filed in EB

11 Filed: Tx Rates Schedule Page of 0 a) Please see below for the updated table with most recent data on a best effort basis. # Asset Class Transformers Breakers Protection U/G Steel Overhead Wood Pole Systems Cables Towers Conductors Structures Fleet Size (#units),, 0 km 0,000 0,000 km,000 ESL (years) 0 / 0 / 0 0 / 0 / / Historic Replacement Rate (%/yr) Proposed Replace Rate (%/yr) % of assets beyond ESL 00 N/A N/A N/A % of assets beyond ESL 00 N/A N/A N/A % of assets beyond ESL 0 % of assets beyond ESL 0 a % of assets beyond ESL 0 assuming historic rate 0 b % of assets beyond ESL 0 assuming proposed rate % of assets in poor and very poor condition N/A 0 % of assets in poor and very poor condition % of assets in poor and very poor condition - 0 See Row % of assets with very high and high condition risk factors Equipment Frequency of forced outages compared to CEA Average Worse Worse Worse Worse Better Better Worse Notes: As per,, Schedule 0. ESL of 0 to 0 years is used for transformers based on the type of transformer; as outlined in Table of Exhibit D, Tab, Schedule, page. ESL of 0 years for all circuit breakers, with exception of oil circuit breakers which has an ESL of years; as outlined in Exhibit D, Tab, Schedule, page. ESL of 0 to years is used for protection systems based on type of technology as outlined in Table of Exhibit D, Tab, Schedule, page. ESL of 0 to 00 years is used for steel structures if the structures are not re-coated; as outlined in Exhibit D, Tab, Schedule, page. Consistent with,, Schedule, Hydro One now uses a condition risk factor ranging from Very Low to Very High risk.

12 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page. Figure : Demographics of the Transformer Fleet. 0 a) Please provide a table showing the number and corresponding percentage of transformers by age group and voltage class. Please see table below for the transformer demographics in tabular form by voltage class. Age Group (years) Voltage Class kv 0 kv kv 00 kv Total % -0-0 % % -0 0 % -0 % % > % Total 00% % % % % % 00%

13 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB Exhibit C--. Transmission Assets and Sustaining Investment Overview. Page, Figure 0: Transformer Forced Outage Frequency and Comparison to CEA. 0 a) Please update Figure 0 from the reference by including most recent data. a) The figure below contains the most recent Transformer Forced Outage Frequency data and includes a comparison to CEA data.

14 Filed: Tx Rates Schedule Page of 0. Transformer Forced Outage Frequency (00-0) Number of Outages per Component Year Hydro One CEA Year Moving Average Hydro One Year Moving Average

15 Filed: Tx Rates Schedule 0 Page of Power Workers' Union (PWU) INTERROGATORY #0 Ref (a): EB Exhibit C--, Page. Demographics of Circuit Breakers by Breaker Type. 0 a) Please update the demographics of the circuit breaker by breaker type using the same format of Ref (a). Please see table below for the circuit breaker demographics in tabular form by breaker type. Age Group (years) Breaker Type Air Blast Oil SF Metalclad Vacuum GIS Total % % % % % % > % Total 0 00% % % 0% % % % % 00.0% Note: due to typographical errors in Table in Exhibit D, Tab, Schedule, the total numbers in the table above are different in some categories.

16 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Pages -..., Circuit Breakers. Ref (b): EB Exhibit C--, Page. Figure : Breaker Forced Outage Frequency a) Please provide the demographics of the circuit breaker fleet by breaker type and age group. b) Has the trend on forced outages per breaker type as shown in Ref (b) been maintained over the last three years?

17 Filed: Tx Rates Schedule Page of 0 a) Please see response,, Schedule 0 for demographics of the circuit breaker fleet by breaker type. b) An updated performance trend was provided in Exhibit D, Tab, Schedule, Figure. The trends are generally the same, please refer to table below for the summary for each breaker type. Breaker Type Trend AIR BLAST Degrading OIL Stable SF Improving VACUUM Degrading GIS Improving METALCLAD Stable

18 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB Exhibit C--, Page. Figure : Hydro One Circuit Breaker Performance, All Voltages vs. CEA Benchmark. 0 a) Please update Figure from Ref (a) by including most recent data. a) The figure below contains updated Circuit Breaker Forced Outage Frequency data and includes a comparison to CEA data.

19 Filed: Tx Rates Schedule Page of 0.0 Circuit Breaker Forced Outage Frequency (00-0) Number of Outages per Component Year All Hydro One Breakers All Canada CEA Breakers

20 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB Exhibit A--, Page 0, Figure.c: All Equipment Direct Forced Outage Frequency Caused by Protection and Control Equipment (00-0) a) Please update Figure.c from Ref (a) by including most recent data.

21 Filed: Tx Rates Schedule Page of 0 a) Figure.c from Ref (a) pooled transmission lines and station equipment together to calculate forced outage frequencies caused by protection and control equipment. In current rate filing, this figure was replaced by Figure 0 in Exhibit D Tab Schedule on Page. In the updated figure, protection and control equipment caused outage frequencies were split into two categories, one for station equipment and one for transmission lines. Station equipment outage frequency has been normalized by number of components. Transmission lines outage frequency has been normalized by number of terminals. Therefore, the station equipment outage frequency and the transmission line outage frequency cannot be added. Due to the change of methodology Figure.c won t be updated.

22 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB Exhibit A--, Page 0, Figure.c: Transmission Line forced Outage frequency Caused by Conductor Failures (00-0) 0 a) Please update Figure.c from Ref (a) by including most recent data.

23 Filed: Tx Rates Schedule Page of a) Updated Transmission Line Forced Outage Frequency caused by conductor failures (00-0) figure is provided below. Number of Sustained Outages per 00 km per year Transmission Line Forced Outage Frequency Caused by Conductor Failures (00-0) All Hydo One Lines All Canada CEA Lines

24 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page, Figure 0: Demographics of the Wood Pole Fleet. 0 a) Please provide a table showing the number and corresponding percentage of wood poles by pole type and age group. Please see table below for wood pole structure demographics in tabular form by circuit voltage. Age Group (years) Voltage Class < kv kv 0 kv Total % - 0,,, 0% - 0,0,,0 % - 0,,00 % - 0,,00 0% - 0,,0,00 % - 0, 0, 0% - 0,,0 % Total,,,00 00% % % 0% % 00%

25 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB-0-00, Exhibit A--, Page, Figure.c: Transmission Line Forced Outage Frequency Caused by Wood Pole Failures (00-0) 0 a) Please update Figure.c from Ref (a) by including most recent data.

26 Filed: Tx Rates Schedule Page of a) An updated Transmission Line Forced Outage Frequency Caused by Wood Pole Failure figure is provided. Number of Sustained Outages per 00 km per year Transmission Line Forced Outage Frequency Caused by Wood Pole Failures (00-0) All Hydo One Lines All Canada CEA Lines

27 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page, Figure : Demographics of Steel Structure Fleet. 0 b) Please provide a table showing the number and corresponding percentage of steel structures by age group and voltage class. Please see table below for the steel structure demographics in tabular form by voltage class. Age Group (years) Voltage Class < kv kv 0 kv kv 00 kv Total % ,0 % , % - 0 0,0 0,, % - 0 0,,, % ,,0, % - 0,,00 0, % - 0,, 0 0, 0% - 0 0,0 0 0, % - 0 0,, 0 0,00 % , 0 0, % 00+, 0 0,0 % Total,00,, 0,, 00% % % % % 0% % 00%

28 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): EB-0-00, Exhibit A--, Page, Figure.c: Transmission Line Forced Outage Frequency Caused by Steel Structure Failures (00-0) 0 a) Please update Figure.c from Ref (a) by including most recent data. a) An updated Transmission Line Forced Outage Frequency Caused by Steel Structure Failure figure is provided.

29 Filed: Tx Rates Schedule Page of Number of Sustained Outages per 00 km per year Transmission Line Forced Outage Frequency Caused by Steel Structure Failures (00-0) All Hydo One Lines All Canada CEA Lines

30 Filed: Tx Rates Schedule Page of Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Page, Figure : Demographics of Underground Cables Fleet. 0 a) Please provide a table showing the length (km) and corresponding percentage of underground transmission cables by age group and voltage class. Please see table below for the underground cable demographics in tabular form by voltage class. Voltage Class kv 0 kv Total % % % - 0 % Age - 0 % Group % (years) % % Total 00% % % % 00%

31 Filed: Tx Rates Schedule 0 Page of Power Workers' Union (PWU) INTERROGATORY #0 Ref (a): EB-0-00, Exhibit A--, Page, Figure.c: Underground Cable Forced Outage Frequency (00-0) 0 a) Please update Figure.c from Ref (a) by including most recent data. a) An updated Underground Cable Forced Outage Frequency figure is provided.

32 Filed: Tx Rates Schedule 0 Page of Number of Sustained Outages per 00 km year Underground Cable Forced Outage Frequency (00-0) Year Hydro One Year Cables CEA All Canada Year Cables

33 Filed: Tx Rates Schedule Page of 0 Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Sustaining Capital, Page, Lines -. Investment Summary Documents in support of capital projects with cash flows in excess of $.0 million in either 0 or 0 are filed at Exhibit D, Tab, Schedule. a) The Participant Information Package does not include Exhibit D, Tab, Schedule. Please provide that exhibit. a) Please refer to, Tab 0, Schedule.

34 Filed: Tx Rates Schedule Page of 0 Power Workers' Union (PWU) INTERROGATORY # Ref (a): Participant Information Package. Exhibit D--, Development Capital, Page of, Lines -: Funding levels for 0 and 0 for Inter-Area Network Transfer Capability projects, along with the spending levels for the bridge and historic years are provided in Table of Appendix A to this exhibit. a) The Participant Information Package does not include Appendix A. Please provide that exhibit. a) Please refer to, Tab 0, Schedule (SEC # ).