EB-2007-0707 - Ontario Energy Board

ONTARIO


ENERGY


BOARD





|FILE NO.: |EB-2007-0707 | |
| | | |
|VOLUME: |8 | |
| | | |
|DATE: |September 18, 2008 | |
| | | |
|BEFORE: |Pamela Nowina |Presiding Member |
| | | |
| |Ken Quesnelle |Member |
| | | |
| |David Balsillie |Member |
EB-2007-0707



THE ONTARIO ENERGY BOARD



IN THE MATTER OF Sections 25.30 and 25.31 of the Electricity
Act, 1998;


AND IN THE MATTER OF an Application by the Ontario Power
Authority for review and approval of the Integrated Power System
Plan and proposed procurement processes.


Hearing held at 2300 Yonge Street,
25th Floor, Toronto, Ontario,
on Thursday, September 18, 2008,
commencing at 9:00 a.m.




------------------
VOLUME 8
------------------





B E F O R E:


PAMELA NOWINA PRESIDING MEMBER

KEN QUESNELLE MEMBER

DAVID BALSILLIE MEMBER










JENNIFER LEA Board Counsel
DAVID CROCKER


DAVID RICHMOND Board Staff
VIOLET BINETTE
NEIL McKAY








GEORGE VEGH Ontario Power Authority (OPA)
MICHAEL LYLE
GLEN ZACHER
JAMES HARBELL
KRISTYN ANNIS


STEVEN SHRYBMAN Council of Canadians


JAY SHEPHERD School Energy Coalition (SEC)
JOHN DeVELLIS


DAVID POCH Green Energy Coalition, Pembina
KAI MILLYARD Foundation and Ontario Sustainable Energy Association
(OSEA)


ANDREW LOKAN Power Workers' Union (PWU)
JUDY KWIK
RICHARD STEPHENSON


BASIL ALEXANDER Pollution Probe
MURRAY KLIPPENSTEIN
CORY WANLESS
KENT ELSON


TOM BRETT Association of Power Producers of
CARLTON MATHIAS Ontario (APPrO)


PETER THOMPSON Canadian Manufacturers & Exporters
VINCE DeROSE (CME)
NADIA EFFENDI










MARK RODGER Alliance of Energy Consumers
TED COWAN (Association of Major Power Consumers of Ontario, AMPCO;
Canadian Chemical Producers' Association;
Cement Association of Canada (Ontario);
Industrial Gas Users Association, IGUA;
Ontario Federation of Agriculture, OFA;
Ontario Forest Industry Association;
Ontario Mining Association; Stone, Sand
and Gravel Association of Ontario


IAN MONDROW City of Toronto
ELISABETH DeMARCO


MICHAEL BUONAGURO Vulnerable Energy Consumers' Coalition (VECC)


JOHN CYR City of Thunder Bay, Northwestern
NICK MELCHIORRE Ontario Municipal Association (NOMA), Town of
Atikokan


ROBERT WARREN Consumers Council of Canada


KELLY FRIEDMAN Electricity Distributors
RAUL AGARWAL Association


JOHN RATTRAY Independent Electricity System
PAULA LUKAN Operator (IESO)


TIM MURPHY Canadian Solar Industries
AMANDA KLEIN Association (CanSIA)


CHARLES KEIZER Brookfield Energy Marketing Inc., Great Lakes Power
Ltd. (GLPL)


DOUG CUNNINGHAM Nishnawbe Aski Nation


ALEX MONEM Saugeen Ojibway Nations (SON)
ARTHUR PAPE


PETER FAYE Lake Ontario Waterkeeper
JOANNA BULL


JENNIFER AGNOLIN Northwatch
VIVIENNE BALL


JEFF ROSEKAT First Nations Energy Alliance
CHERIE BRANT
GENEVIEVE LE COMTE


JIM HAYES Society of Energy Professionals
JO-ANNE PICKEL


SARAH DOVER Provincial Council of Women of Ontario (PCWO)


MICHAEL ENGELBERG Hydro One Networks Inc. (HONI)
BLAIR McDONALD


DAVID GOURLAY Newfoundland and Labrador Hydro


DAVID STEVENS Enbridge Gas Distribution
DENNIS O'LEARY


PAUL MANNING National Chiefs Office, Assembly of First Nations


FRED CASS Ontario Power Generation (OPG)


ANDREW TAYLOR Ontario Waterpower Association, Canadian Wind Energy
Association


DAVID MacINTOSH Energy Probe






ALSO PRESENT:


Dr. JAN CARR Ontario Power Authority
MIRIAM HEINZ


TOM ADAMS Alliance of Energy Consumers


CHRIS BUCKLER Electricity Distributors' Association


GRACIA JANES Provincial Council of Women of Ontario

--- On commencing at 9:00 a.m. 1


Preliminary Matters 1


ONTARIO POWER AUTHORITY - PANEL 3, REFERENCE FORECAST AND RESERVE
REQUIREMENTS, Resumed 5

M. Adelaar, C. Bataille, V. Stein,
Previously Affirmed; L. Buja-Bijunas,
K. Frecker, B. Gibbons, A. Pietrewicz,
Previously Sworn.


Continued Cross-Examination by Ms. Lea 5
Cross-examination by Mr. DeRose 14


--- Recess taken at 10:10 a.m. 39
--- On resuming at 10:30 a.m. 39


Cross-Examination by Mr. Shrybman 40


Procedural Matters 62


Cross-Examination by Mr. Poch 64


--- Luncheon recess taken at 12:14 p.m. 96
--- Upon resuming at 2:00 p.m. 96


Procedural Matters 97




ONTARIO POWER AUTHORITY - PANEL 3, REFERENCE FORECAST, Resumed
104

M. Adelaar, C. Bataille, Previously Affirmed;
L. Buja-Bijunas, K. Frecker, Previously Sworn.


Continued Cross-Examination by Mr. Poch 104


--- Recess taken at 3:13 p.m. 136
--- Upon resuming at 3:33 p.m. 136


--- Whereupon hearing adjourned at 4:05 p.m. 154







EXHIBIT NO. K8.1: EXCERPTS ENTITLED "PROVIDING THE BALANCE OF POWER"
63




EXHIBIT NO. K8.2: OEB PRESS RELEASE DATED JULY 26, 2007 REGARDING
TIME-OF-USE PRICING STRUCTURES 63










Undertaking No. J8.1: TO Provide problems or improvements identified
with the model and indicate whether they were resolved; TO determine
whether a list of back-casting exercises exists and, if so, provide
it; and TO provide the sensitivities of the model. 27




Undertaking No. J8.2: TO Provide number for other manufacturing
sector in figure 34. 35




UNDERTAKING NO. J8.3: TO PROVIDE NPCC's MOST RECENT SEASONAL ANALYSIS
with respect to MEETING reserve requirements in Ontario 50




UNDERTAKING NO. J8.4: TO EXTEND EXHIBIT K6.1 TO COVER THE HIGH AND
LOW CASES, AS AVAILABLE 65




Undertaking No. J8.5: to provide the impacts on peak and/or energy in
the high DSM case due to smart meters and time-of-use rates. 91



NO
Thursday, September 18, 2008
--- On commencing at 9:00 a.m.
MS. NOWINA: Please be seated.
Good morning, everyone. Today is day 8 of the oral portion of the
review of the Integrated Power System Plan. The OPA is seeking the Board's
approval of the IPSP and certain procurement processes. The Board has
assigned file number EB-2007-0707 to this application.
Today we continue with the cross-examination of the panel on
reference forecast and reserve requirements.
Are there any preliminary matters? Mr. Vegh.
Preliminary Matters:
MR. VEGH: THANK YOU, MADAM CHAIR. JUST A COUPLE FROM THE APPLICANT.
FIRST, TO REPORT ON UNDERTAKING RESPONSES, THE OPA FILED WITH THE OEB
UNDERTAKING RESPONSES BY LETTER DATED SEPTEMBER 17TH, AND THOSE RESPONSES
RELATE TO UNDERTAKINGS J3.2, 3.3, 4.1, 5.1 AND 5.3.
So those responses are on the -- in the Board Secretary's office and
available on the OPA website.
In addition, with respect to an undertaking response yesterday at the
close or close to the close of proceeding, Board counsel asked Mr. Stein to
-- if he had some materials available, and he happened to have them. So
this is undertaking J7.3. I'm sorry, I will just...
The undertaking is to provide parts of the document to be used as
supporting evidence regarding social discount rate. Mr. Stein had that
document available, so we will respond to that undertaking now.
I provided Ms. Lea a copy of the materials, and Mr. Stein will speak
to it very briefly.
MS. NOWINA: Thank you.
MR. VEGH: Perhaps we can mark it.
MS. LEA: Yes. It has been marked as undertaking J7.3.
MR. VEGH: The document is entitled "Canadian Cost Benefit Analysis
Guide, Regulatory Proposals" by the Treasury Board of Canada. Perhaps if
it is acceptable, Madam Chair, perhaps Mr. Stein could just speak to it now
before we go on to the other preliminary matter.
MS. NOWINA: Yes, that's fine. Thank you.
MR. VEGH: Mr. Stein.
MS. NOWINA: Mr. Stein.
MR. STEIN: I think the matter referred to the --
MS. NOWINA: Your mic.
MR. STEIN: Thank you. I think the matter referred to the
publication by the Treasury Board of Canada Secretariat, the 2007
publication in which they recommended a social discount rate of 8 percent
i