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OPA Sub Appl Evid 20090305 Updated: March 5, 2009 EB-2008-0312 Table of Contents Page 1 of 2 ONTARIO POWER AUTHORITY 2009 REVENUE REQUIREMENT SUBMISSION TABLE OF CONTENTS Description Exhibit Schedule Tab A – ADMINISTRATION A 1 1 Submission A 2 1 2009-2011 Business Plan A 3 1 CECO Annual Report 2008 A 4 1 Supplement to CECO Annual Report 2007 dated May 2008 A 5 1 2007 Annual Report A 6 1 Organizational Charts A 7 1 List of Directives and Letters from the Minister of Energy & Infrastructure 2 Directives from the Minister of Energy & Infrastructure (February 25, 2008 to September 17, 2008) 3 Directives from the Minister of Energy & Infrastructure (December 19, 2008 to January 23, 2009) B – STRATEGIC OBJECTIVES B 1 1 Strategic Objective 1 Plan for an adequate, reliable and sustainable system that integrates conservation, generation and transmission B 2 1 Strategic Objective 2 Plan, procure and manage conservation resources to meet the requirements identified in the IPSP and promote sustainable conservation practices that contribute to a culture of conservation B 3 1 Strategic Objective 3 Plan and design procurement processes and enter into procurement contracts for generation resources to meet the requirements identified in the IPSP and to embed “best-in-class” contracting practices that support investment in necessary infrastructure and contribute to a sustainable electricity system Updated: March 5, 2009 EB-2008-0312 Table of Contents Page 2 of 2 Description Exhibit Schedule Tab B 4 1 Strategic Objective 4 Identify and assess barriers to the development of economically sustainable supply and conservation practices on behalf of electricity users and in cooperation with key industry partners and stakeholders B 5 1 Strategic Objective 5 Maintain and develop organizational capacity to achieve all other strategic objectives C – SPECIAL REPORTS AND AGREEMENTS This section reserved for later use if required D – OPERATING COSTS AND REVENUE REQUIREMENT D 1 1 2009 Revenue Requirement D 2 1 2009 Fees, Operating Costs And Capital Expenditures D 3 1 Deferral and Variance Accounts 2 Invoice(s) from the Ministry of Energy and Infrastructure 3 2008 Forecast Variance Deferral Account I – INTERROGATORY RESPONSES I 1 1-12 Board Staff I 2 1-3 Energy Probe Research Foundation (Energy Probe) I 3 1-7 Association of Major Ontario Consumers in Ontario (AMPCO) I-3-2 - Attachment 1 – IPSP Participant Funding Information S – SETTLEMENT PROPOSAL S 1 1 Settlement Proposal dated February 27, 2009 Updated March 5, 2009 EB-2008-0312 Exhibit A Tab 1 Schedule 1 Page 1 of 3 EB-2008-0312 ONTARIO ENERGY BOARD IN THE MATTER OF sections 25.20 and 25.21 of the Electricity Act, 1998; AND IN THE MATTER OF a Submission by the Ontario Power Authority to the Ontario Energy Board for the review of its proposed expenditure and revenue requirement for the year 2009. SUBMISSION FOR REVIEW 1. Pursuant to section 25.22 of the Electricity Act, 1998 (the “Act”), by letter dated October 2, 2008 the OPA submitted its Business Plan to the Minister of Energy and Infrastructure (the “Minister”). In the Business Plan the OPA set its operating budget for 2009 at $65.073 million. A number of adjustments result in a requested revenue requirement of $70.206 million. The Minister granted approval of the Business Plan on November 3, 2008. 2. The OPA hereby submits to the Ontario Energy Board (“OEB”) its proposed 2009 expenditure and revenue requirement for review and approval pursuant to subsection 25.21(1) of the Act. 3. The OPA proposes to charge a usage fee of $0.485/MWh. The OPA is seeking interim approval of this usage fee effective January 1, 2009, if a final Board Order in this proceeding has not yet been issued by that date. 4. The OPA proposes to charge registration fees of up to $10,000 per proposal for electricity supply and capacity procurements. The forecast revenues associated with collection of these registration fees in 2009 is $220,000. 5. Pursuant to subsection 25.21(2) of the Act, the OPA is seeking the following approvals from the OEB: EB-2008-0312 Exhibit A Tab 1 Schedule 1 Page 2 of 3 • approval of the usage fee and the registration fees described above, or such further or other fees as the OEB may deem appropriate; • if necessary, interim approval of the usage fee described above, or such further or other interim order as the OEB may deem appropriate; • approval of a net revenue requirement of $70.206 million, comprised of the proposed 2009 operating budget of $65.073 million and a number of adjustments that result in a net amount of $70.206 million; • approval of proposed 2009 capital expenditures of $2.9 million; • approval of its proposal to recover through fees the balances of the Government Procurement Costs Deferral Account and the 2008 Forecast Variance Deferral Account; • approval to recover the balance of Retailer Settlement Deferral Accounts over three years; • approval of establishment of the 2009 Retailer Contract Settlement Deferral Account, of the 2009 Retailer Discount Settlement Deferral Account, of the 2009 Government Procurement Costs Deferral Account and of the 2009 Forecast Variance Deferral Account, and approval or continuation of such further or other deferral accounts as the OEB may deem appropriate; and • all necessary orders and directions, pursuant to the Ontario Energy Board Act, 1998 and the OEB’s Rules of Practice and Procedure, as may be necessary in relation to this submission, and execution of the approvals requested in the Business Plan. 6. The OPA proposes the following title for this proceeding: Ontario Power Authority Fiscal 2009 Expenditure and Revenue Requirement Submission for Review (“2009 Revenue Requirement Submission” or “Submission”). 7. The OPA proposes that the OEB review of the Submission proceed by way of a written hearing. 8. The OPA may amend its pre-filed evidence from time to time, prior to and during the course of the OEB proceeding. Furthermore, the OPA may seek to have additional meetings with Board Staff and intervenors in order to identify and address any further This page is left intentionally blank for double-sided printing purposes. EB-2008-0312, Exhibit A-2-1, Page 1 of 39 2009 – 2011 Business Plan September 2008 ONTARIO POWER AUTHORITY EB-2008-0312, Exhibit A-2-1, Page 2 of 39 EB-2008-0312, Exhibit A-2-1, Page 3 of 39 2009-2011 Business Plan Table of Contents Highlights of the 2009-2011 Business Plan………………………………………………….…..2 Message from the Chief Executive Officer…………………………………………………..…..4 Effectiveness Metrics…………………………………………………………………………….6 The Ontario Power Authority………………………………………………………………….…8 Vision………………………………………………………………………………….…8 Mission…………………………………………………………………………………...8 Guiding Principle………………………………………………………………….....…..8 Mandate……………………………………………………………………………….....8 2009-2011 Strategic Objectives………………………………………………………………….9 Strategic Objective 1…………………………..………………………………………………..10 Strategic Objective 2…………………………………………………………..………………..14 Strategic Objective 3……………………………………………………………………………21 Strategic Objective 4……………………………………………………………………………24 Strategic Objective 5……………………………………………………………………………27 2009 Milestones.………………………………………………………………………………..31 2009 Financial Outlook..………………………………………………………………………..34 References and Notes…………………………………………………………………………...36 September 2008 1 EB-2008-0312, Exhibit A-2-1, Page 4 of 39 2009-2011 Business Plan Highlights of the 2009-2011 Business Plan In the 2009-2011 business planning period, the Ontario Power Authority (OPA) will continue its efforts to ensure the reliability and sustainability of the province’s electricity system for the benefit of Ontario’s consumers. 2008 2009 Total Budgeted Administration Costs, Total Budgeted $67.5M, 6.7% Administration Costs, $65.1M, 3.4% Conservation, $245.0M Conservation, $563.7M Generation, Generation, $1,328.1M $763.4M Total spending = $1,075.9M Total spending = $1,956.9M OPA administration costs as a percentage of total spending are expected to drop by approximately 50 percent. The most significant initiatives planned for the 2009-2011 period are: • developing revisions to the first Integrated Power System Plan (IPSP1), based on the September 2008 directive from the Minister of Energy and Infrastructure, and filing the revised plan with the Ontario Energy Board • undertaking consultation with First Nations and Métis communities, and considering opportunities for partnership with Aboriginal Peoples on generation and transmission development in accordance with the September 2008 directive from the Minister of Energy and Infrastructure • supporting the implementation of specific projects identified in IPSP1 and by directive, including continuously looking for ways to accelerate the implementation of cost-effective conservation and renewable resources and undertaking development work on key transmission projects designed to enable new renewable sources of energy to come into service • developing regional electricity plans, particularly in areas of the province with urgent and emerging electricity reliability issues, and coordinating and supporting the implementation of integrated electricity solutions that always include consideration of comprehensive conservation, renewable and distributed generation solutions before considering other resource options 2 September 2008 EB-2008-0312, Exhibit A-2-1, Page 5 of 39 2009-2011 Business Plan • managing and settling an increasing volume and value of contracts for conservation and generation resources • verifying the results from an extensive portfolio of conservation programs to help meet the targets for reductions in peak
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