EP7.8 REPORT FOR ACTION

High Voltage Power Distribution System & Substation Feasibility Study

Date: November 20, 2017 To: The Board of Governors of From: Dianne Young, Chief Executive Office Wards: All Wards

SUMMARY

The purpose of this report is to inform the Board on the Consultant findings of the High Voltage Power Distribution System & Substation Feasibility Study for Exhibition Place. After staff review of the options presented in the Study, this report is also recommending a direction in principle for a long-term plan to manage the replacement of the high voltage system grounds wide taking into account both the present and projected future electrical load requirements, as well as the future requirements of Place.

RECOMMENDATIONS

The Chief Executive Officer recommends that the Board:

1. Direct the Chief Executive Officer to update the City Capital Budget submission for the High Voltage Power Distribution in line with the Feasibility Study and include the cost of renewal of $14.40 million outlined in Appendix "C" of the High Voltage System in the 10-year SOGR Capital Program for Exhibition Place starting in 2019

2. Direct the Chief Executive Officer to meet with staff in the City Manager's Office, and Provincial and Ontario Place staff to determine the best manner of delivering high voltage power to an expanded Ontario Place.

FINANCIAL IMPACT

There are no negative financial implications of this report.

High Voltage Power Distribution System & Substation Feasibility Study Page 1 of 4 DECISION HISTORY

The Exhibition Place 2017 - 2019 Strategic Plan has Public Space and Infrastructure Goal to ensure our State-of-Good-Repair plan and process is adequately linked to our capital Plan with a strategy of Identifying funding mechanisms required to implement major grounds-wide infrastructure renewal.

At its meeting of September 30, 2016, the Board approved entering into an agreement with METSCO Energy Solutions Inc. for contract services to provide a High Voltage Power Distribution System &Substation Feasibility Study for Exhibition Place. https://www.explace.on.ca/files/file/58b5f8f0a9714/Item-13-High-Voltage-Feasibility.pdf

COMMENTS

Exhibition Place has substantial high voltage electrical assets that provide underground electricity distribution from the Hydro Strachan transformer station across the site and also to Ontario Place. These assets are over 50 years old and have reached their end of life (cables, transformers, and substations) and must be replaced over the next decade at an estimated cost of $14.40M. Failure of the high voltage lines could result in substantial financial losses to Exhibition Place and its commercial tenants on the grounds.

The development of a renewal plan for these high voltage assets has been ongoing for several years. At first, Exhibition Place held discussions with Toronto Hydro Corporation (THC) on the possibility of transferring the high voltage power distribution systems and substations assets to THC and in turn, THC would invest and renew all assets through the THC infrastructure renewal financing. While these discussions resulted in a possible new infrastructure design and preliminary costing, THC finally determined after investigation such a transfer could was not possible under the regulations.

Given the direction taken by THC, Exhibition Place engaged METSCO to undertake a feasibility study for the high voltage assets at Exhibition Place with the major objectives of the project to include:

• Determine the present state of Exhibition Place HV electrical distribution system • Develop possible options for replacement routings and strategies with consideration of construction costs • Recommend the preferred options for Exhibition Place • Recommend options for an existing and / or expanded Ontario Place • Develop an execution strategy including time-frame and budget.

After a review of all the High Voltage assets, their health index and risk of failure calculations, the Study proposed a redesign of the High Voltage system (see Appendix A and B); determined the priority sequence of the upgrades; and provided an estimated cost as detailed in Appendix C to this report:

High Voltage Power Distribution System & Substation Feasibility Study Page 2 of 4 • Priority 1: Replace those PILC (insulated cables) feeders that have had frequent failures generally located in the areas from the Strachan Hydro Substation to the Tornado Substation in Parking Lot 851 and from Strachan to the GO Station (Years 1, 2 & 3) • Priority 2: Consolidation of the East Substation and West Substation in the Industry Building (Hall G ) (Year 4) • Priority 3: Replace Poor Equipment and Electrical Code Upgrades (Year 5) • Priority 4: Upgrade and consolidate the Better Living Centre Substation (Year 6) • Priority 5: Upgrade Tornado Substation (located in Parking Lot 851) and the West Annex North and West Annex South Substations (Year 7) • Priority 6: Upgrade Beanfield Centre Substation and the World Substation (located in Parking Lot 852) (Year 8) • Priority 7: Replace remaining PILC (insulated cables) feeders (Year 9 &10) • Priority 8: Upgrade General Service Building and Horse Palace Substations (Year 9 &10)

At present the 2018 - 2027 SOGR Capital Program for Exhibition Place has included an amount for renewal of these assets of $18.0M starting in 2019 to 2027 although the amounts submitted to the City are now within the Program Debt Target but included as a below the line item and therefore, unfunded at this time. However, one recommendation is to now include the updated amounts of $14.40M listed in Appendix C within the Capital Program starting in 2019 as part of the funded debt target for Exhibition Place.

Ontario Place Feeder:

Electrical power requirements for Ontario Place are presently provided through Exhibition Place high voltage system. This was agreed to with the construction of Ontario Place in 1963 and Ontario Place pays for all hydro consumed that is calculated and invoiced by THC but Ontario Place does not contribute to the infrastructure costs of the Exhibition Place high voltage system. Because the Exhibition Place high voltage system forms an internal loop across the grounds and then to Ontario Place, any fault in any part of the hydro distribution system (even the smallest one) across Exhibition Place or Ontario Place can completely shut down hydro delivery on both sites.

Representatives from Ontario Place were invited to be part of this study especially because Ontario Place has made recent announcements about the expansion of activities and potential new infrastructure on its site. However, because it was not possible for the team to predict future hydro capacity needs at Ontario Place at this time, METSCO was directed to investigate the long term load requirements for Exhibition Place given the installed capacity that can be delivered by THC through its Strachan Hydro Station.

The installed capacity for Exhibition Place from the THC Strachan Station is approximately 30MW. However, there is typically an 80% load factor used as a standard to determine capacity allowed so as to prevent system failures due to overload of the system and / or feeder cables. If you apply this standard to the Strachan Station installed capacity, the capacity available for the grounds and all infrastructure would be 24MW. Staff have estimated that the long term load requirements for Exhibition Place High Voltage Power Distribution System & Substation Feasibility Study Page 3 of 4 (if we build in requirements for an expanded ECC and a Phase 2 hotel tower) are expected to result in a potential load of 24MW. Consequently, future loads for Exhibition Place alone (24MV) will maximize the capacity that can be delivered through the THC Strachan Station.

Accordingly, it is not recommended to include within the Exhibition Place High Voltage renewal plan that the feeder to Ontario Place be continued or renewed. To do so may jeopardize the power available for future Exhibition Place development. Furthermore, there is no ability to deliver capacities to Ontario Place greater than that existing and this capacity level is likely to be insufficient for any future Ontario Place development. Therefore, METSCO is proposing that it would be better that Ontario Place work with THC to assign a separate 13.8kV feeder from the THC Strachan Station to feed Ontario Place directly. While there could possibly be an easement for this feeder through Exhibition Place, it could also easily run on the road right-of-way. Separating the feeders for Exhibition Place and Ontario Place would also separate problematic faults / potential outages due to maintenance issues which could have liability implications.

CONTACT

Mark Goss, General Manager/Operations, 416-263-3660, [email protected]

SIGNATURE

Dianne Young, Chief Executive Officer

ATTACHMENTS

Appendix "A" - Existing HV Distribution System Appendix "B" - Upgraded HV Distribution System Appendix "C" - HV Power Distribution System Project Costing Chart

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