PROPOSED N.P.E.I 2019 CAPITAL BUDGET PROGRAM

The NPEI 2019 Capital Budget continues to follow a format focused on Projects driven from established Programs to prioritize NPEI resources in an efficient and beneficial manor to our Customers. These programs drive Rebuild/Reinforcement/Voltage Conversion & Construction as a result of, Pole Testing & Inspections, Pad-mounted Equipment Inspections, Sub-station Maintenance & Inspections, Manhole & Sidewalk Vault Inspections, Kiosk Inspections, Minor System Betterments, Subdivision Connections, and Demand Based System Expansions for Commercial Development.

1. Extension of 3-Phase primary, South on Oakwood and continuation under QEW and over Chippawa River
Projected load growth in the next 3-5 years in the Montrose & Bigger area with the proposed construction of the new Niagara South Hospital requires additional system capacity to be extended to this area. This project will extend a second feeder to Montrose for future extension. Timing of this project is driven by proposed Ministry of Transportation work on the QEW bridge over the Welland River. This project aims to complete our work prior to the MTO project commencing.

2. Re-Build—Victoria Ave—Claus Rd. to S. Service Rd
Rebuild in place using 556MCM Al Primary and taller poles to a 600Amp Main Circuit 27.6kV with maintaining of existing 8kV as underbuild. Replacement of 45 3-phase poles and associated framing. Transfer of 11 existing single phase transformers and 2 three phase transformers and associated secondary services to new poles. Maintain existing on 8kV circuit. Benefit is additional tie point for 4501F2 and provides for future extension of 27.6kV infrastructure and growth. Approx. 2200m of new spans to be strung.

3. Concession 2 Rd. Relocate
Extension of 1-Phase 4.8kV feeder on Concession 3 Rd., 1-Phase 16kV feeder on Concession 2 Rd. and rebuild of 4 poles for 1-Phase 4.8kV feeder on Green Rd. within the road allowances to facilitate removal of 35 poles and approximately 3km of feeder from inaccessible farm fields. The existing plant which was not installed in the municipal road allowance was installed in the 1940’s and is at end of life.

4. Thorold Stone Rd-- Montrose to Kalar
Project scope involves the replacement of 1.1 KM. of urban overhead 13.8 KV primary line installed in 1958 with 27-new 45’ wood poles, constructed in the same alignment as the existing pole line. Replacement of the undersized primary conductor with 556 MCM for increased ampacity of the circuit during contingency situations, 6-single phase transformers to replace existing, transfer 4-three phase & 2-single phase primary risers, install 1.1.KM of secondary buss, and transfer of 40 residential services to the new buss. Benefits include improved system losses, improved equipment clearances, reinforcement & capacity increase of the supply in the area.

5. Portage Rd--Mountain Road to Church's Lane
Project scope involves the replacement of 0.6 KM. of urban overhead 13.8 KV 3-phase primary line installed in 1966 with 17-new 45’ wood poles, constructed in the same alignment as the existing pole line to provide a tie point between the 12-M-1 and the 12-M-4 from Stanley T.S. Replacement of the undersized primary conductor with 556 MCM for increased ampacity of the circuit during contingency situations, 3-single phase transformers to replace existing, transfer 2-single phase & 2-three phase primary risers, install 0.6 .KM of secondary buss, and transfer of 46 residential services to the new buss. Benefits include improved system losses, improved equipment clearances, reinforcement & capacity increase of the supply in the area with redundancy provisions.

6. Station #14--Voltage Conversion Phase III
Rebuild Project which targets 2.5 kilometers of urban distribution line installed in 1956, including 76 pole changes, new single phase (2.0KM @ 62 poles) & secondary (2.5KM @ 14 poles) circuits, 18-single phase distribution transformer replacements resulting in the upgraded supply to about 250 residential customers directly, in the area bounded by Hagar Ave, Caladonia St, Winston St, Concord Cres, Demetre Cres, Argyll Cres & Paisley Ave, & Jolley Cres. System benefits includes the final stage of reconstruction to eliminate Municipal Sub-station. #14 constructed in 1956, targeted for decommissioning, replacement of aging equipment, immediate voltage conversions opportunities for approximately 800KVA of connected load, improved equipment clearance, and increased Customer reliability.

7. Subdivision Rehabilitation Allowance.
Continuation of the capital program started in 2018 to provide a solution, to a problem identified during the last Asset Condition Assessment, for replacement of directly buried primary & secondary conductors supplying residential services within the oldest Underground Distribution Residential Subdivisions within the Niagara Falls Service Territory. This program facilitates future rebuild by the installation of directional bored 4" & 3" HDPE conduit on the side of the road where primary and secondary co-exist, and a 4" HDPE conduit where only secondary is installed between all pad-mount foundations. Existing Cable would be "run to failure", at which time new cable would be installed utilizing these new ducts. The first subdivisions targeted were the Rolla Woods & Mount Forest areas which were installed in 1967.

8. System Access project to accommodate load growth.
This work is part of an Offer to Connect and Economic Evaluation.
Projected load growth requires NPEI to off load and reconfigure the KM3 feeder which currently services a commercial property in order to accommodate customer needs. This will require the installation of a new 3-phase underground feeder connection which runs from Montrose Rd., under the QEW through the Hydro right of way to Dorchester Rd. to allow shifting of significant KM3 load to the 12M3. Additional overhead feeder reconfiguration work is also required in the Thorold Stone Rd. and Kalar Rd. area.

9. Murray TS – J-Bus Metering
Existing wholesale metering for the J-Bus at Murray TS is on the Measurement Canada Dispensation list as it does not meet current metering standards. This metering is required to be upgraded to current standards prior to the end of 2020. This project addresses this issue by installing individual feeder level wholesale meter points outside of the station similar to what NPEI has done previously with the Y-Bus feeders.

10.Kalar TS – Power Tx Dry Down Equipment
Oil analysis for the power transformers at Kalar TS have been indicating unacceptably high levels of moisture content which if left untreated can shorten the anticipated asset life. This project is to cover the cost of purchasing and installing an on-line oil dry down system to remove the moisture from the oil and prolong transformer life.

11. Kalar TS – Additional Switchgear Design
Kalar TS was designed with dual winding power transformers and the capability of supporting two lineups of switchgear. At time of construction only one lineup of switchgear was installed. We have reached capacity on the existing switchgear and need to begin the design process for tendering the installation of the second set of switchgear to utilize the second set of transformer windings and increase the capacity of the station. This project is to complete the detailed design and tender package for the new switchgear.

12. Pad-mounted Switchgear Replacements
The Underground Equipment Inspection Program has identified a requirement for replacement of air insulated pad-mounted switchgear units. Project scope involves the installation of applicable civil works such as manholes and duct-banks associated with the equipment replacement to current standards, using equipment constructed of Stainless Steel to avoid corrosion issues. Increased system reliability, Public & Personnel safety, and functionality are benefits of the program.

13. Additional Sectionalizing Switches
Existing feeder configurations, sourced by Stanley, Murray, Beamsville & Niagara West
Transformer Stations, Kalar M.T.S. and Vineland D.S., are reviewed utilizing system optimization software, to identify needs for additional pole mounted ganged load break switches within the system. Factors such as minimizing system losses, providing improved contingency options during outage events and providing a means to minimize the area affected are all considered when prioritizing new switch locations.

14. 1-Phase Hydraulic Recloser Installation
Existing feeder configurations, are reviewed utilizing system optimization software, to identify needs for additional pole mounted recloses within the system. The new units are solid dielectric, electronically controlled equipment, with interrogation/communication capabilities, providing Control Operators with real-time status during outage events, enabling information gathering for restoration planning.

15.Line Relocations due to Municipal Road Improvement requirements
An allowance is maintained for the relocation/construction of distribution facilities to resolve conflicts with planned road works by such Governmental Agencies as the Ministry of Transportation, Regional Municipality of Niagara and the various Municipal Agencies within the Service territory. Additions and reinforcement to the distribution system resulting from new construction requests fall under this budget. Tracking is accomplished with individual Project Numbers assigned to the various projects as required within the Corporate Accounting System.

16.Replacement of Poles identified with limited Structural Integrity
The natural degradation of wooden utility poles is an ongoing issue. NPEI performs a site visit of every distribution pole on the System every 5-years, with a total population of 37813. The pole is tested for its integrity, a visual inspection is performed of the equipment installed on the pole by qualified Linesmen, the pole is photographed, guy guards are installed & down grounds are repaired/replaced as required, and test results are stored within the Corporate Geographic Information System. An evaluation of the results are performed, with deficiencies addressed by the replacement of subject poles, in a timely manner, through this Capital Program. The average cost per pole change is approximately $ 5,000.

17. Replacement of Kiosks with Pad Mounted Transformers
Prior to the advent of pad-mounted Transformer & Switchgear Equipment, supplying loads larger than could be supplied by pole mounted equipment, or areas serviced from underground primary distribution systems, lead to the development of ground mounted masonry enclosures housing high voltage transformation, switching & protection apparatus, and secondary distribution equipment, known as the Kiosk. These block structures were meant to provide Public Safety but over time the structures deteriorate and warrant replacement. These are prioritized utilizing the results of a 5-year Conditional Assessment Survey last completed in 2018. This Capital Program is an integral part of the remediation of underground distribution systems, increasing longevity and reliability within the area serviced. As these legacy components are replaced, safety, reliability and service quality are significantly improved. In 1994 the kiosk replacement program was initiated with 725 locations identified. 56-Units remain on the 15KV System, and 59-Units remain on the 5KV System. For 2019 the plan is to replace 1 unit.

18. System Sustainment Allowance
This Capital Program manages an allowance for minor projects initiated by unexpected failures/deficiencies of overhead and underground distribution facilities. Replacement of underground cable experiencing repeated failures is a major contributor covered by this allowance. Minor overhead system modifications and component replacements are also accounted for.

19.Subdivisions and New Residential Services           -- Category System Access Project

20. Demand Based System Reinforcements for New Commercial Service Connections
This Capital Program manages an allowance for the construction/upgrade of distribution equipment to facilitate system access connections of new commercial developments. Expansions and reinforcement to the distribution system resulting from these new customer connection requirements fall under this budget allowance.

21. Metering - General
This Capital Program manages an allowance for the metering equipment to facilitate system access connections of new commercial and residential developments. Metering costs resulting from these new customer connection requirements fall under this budget allowance.

22. Metering – MIST
Per amendments to section 5.1.3 of the Distribution System Code that came into force on August 21, 2014, NPEI has until August 21, 2020 to install a MIST meter on any existing installation that has a monthly average peak demand during a calendar year of over 50kW. This Capital Program manages an allowance for the metering costs resulting from this change.