PROPOSED N.P.E.I 2021 CAPITAL BUDGET PROGRAM

The NPEI 2021 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. Sinnicks Ave. - Rebuild – Carry Over from 2020
Project scope involves the replacement of 1.2km of urban overhead double 4.16kv circuits (built in 1949). The
new pole line will consist of a single 3 phase 13.8kV circuit to connect the 12M43 to the 12M5 feeders as well as
a single 3 phase 4.16kV circuit (under build) to connect the F183 (Swayze DS) to F176 (Virginia DS). The new
double circuit pole line will consist of 34-new 55’ wood poles, constructed in the same alignment as the existing
pole line. The side streets (Keith St, Coholan St, Vine St, Harold St, Brooks St, Frances St, Carman St, Atlas St,
Judith St) supplied from the existing double circuits have been previously rebuilt to 13.8kV utilizing dual
voltage transformers which would be converted to 13.8KV upon completion of the rebuild. Benefits include
improved system losses, Public & Personnel safety, improved equipment clearances, reinforcement and
capacity increase of the supply in the area with redundancy provisions.

2. Build out of New Feeder for GPI – NWTS to Boundary
Project scope includes the construction of a new egress feeder from NWTS, North along Grimsby Road. West
along Young Street to South Grimsby Rd. 10 then North to the NPEI-GPI boundary. NPEI existing plant will be
relocated to these new poles, which will be framed to accommodate the new GPI circuit. This is a customer
demand driven project with GPI being the customer.

3. Jordan Village UG Relocate - Carry Over from 2020
Project scope involves the replacement of existing overhead plant to underground construction in order to
accommodate road works planned by the Town of Lincoln. This is a municipality driven relocation request.

4. Step Down Tx Elimination – 9th Street – Carry Over from 2020
Project scope involves the replacement of 1.8 km of overhead single three phase 8.32kV circuit (built in 1960)
with a single three phase 27.6kV circuit using 28 - new 45’ wood poles, constructed in the same alignment as the
existing pole line along Ninth Street. The project includes relocation of a bank of step-down transformers from
south of Fourth Avenue to south of King Street and installation of a new single phase step-down
transformer on King Street west of Ninth Street along with replacement of 15-single phase transformers,
installation of 1km of secondary bus, and direct transfer of 33 residential services to the new bus. Benefits
include improved system losses, improved equipment clearances, reinforcement, Public & Personnel safety,
and capacity increase of the supply in the area.

5. Stanley TS – Rebuild (Feeder Metering and Feeder Egress)
HONI is rebuilding half of their Stanley TS infrastructure, including a new power transformer, P&C building
and switchgear for the B-Y bus. The HONI initiated work will result in NPEI installing new feeder egress on all
4 feeders connected to the B-Y bus along with new primary metering on each feeder. Current bus level metering
on the J-Q bus must be converted to feeder level metering as per the IESO. All 6 feeders connected
to the J-Q bus will require new primary metering on each feeder. All work is to be coordinated with HONI
project schedule.

6. Murray TS – Measurement Canada Mandated Instrument Replacement
Project scope includes the installation of new bus level wholesale revenue metering instruments to
replace legacy instruments on the Measurement Canada dispensation list. Due to the bus configuration,
the IESO required NPEI to install bus level metering. Work inside Murray TS is to be done by HONI and charged
to NPEI.

7. Cherryhill Overhead Distribution – Rebuild & Voltage Conversion
The project involves the replacement of 1.1km of urban overhead single phase 2.4kV circuit (built in 1962)
with a single phase 8kV primary line using 31 new 40’ wood poles. The new pole line will be constructed in
the same alignment as the existing.

8. Cooper, Jill, Jordan & Marie Claude Area – Rebuild Ph. 1
The project scope involves the rebuild of the overhead distribution for the subdivision built in the 1960’s. Rebuild
in place using tree wire and 29 - 40’ wood poles. Two end of life transformers will be replaced, with
the remaining transformers being reused. The existing open secondary bus will be replaced with new spun
bus per NPEI’s current standards. This project is planned to begin in 2021 and carry over into 2022.

9. Kalar TS – Installation of Second Switchgear Lineup
Kalar TS was placed in service in 2004. The station consists of 2 x 75 MVA power transformers connected to
the Hydro One transmission system at 115kV. At time of construction only one set of secondary windings of
the transformers were connected to a single switchgear lineup. Present day loading is reaching the limits of this
switchgear, necessitating the installation of the planned second switchgear connected to the second set
of transformer windings to fully utilize the station capacity. The RFP for the switchgear was completed in
2020 with Powell being the successful quote. The switchgear is scheduled for delivery in February 2021. This
project covers the installation and commissioning of the gear.

10. Sixteen Road from 14 to McCullum - Rebuild
Project scope involves the rebuild of single phase 4.8kV circuit along Sixteen Road from Regional Road 14 to
McCollum Road which was built in the 1940’s. Construction involves installation of approximately 38 new 40’
wood poles, 1 new single phase transformer with the reuse of the remaining transformers. Benefits include
replacement of aging equipment, improved equipment clearance and increased customer reliability.

11. Kiosk Replacement - 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. For 2021 the plan is to replace 1
unit.

12. Pad-mounted Switchgear Replacement
The Underground Equipment Inspection Program has identified a requirement for replacement of air insulated
pad-mounted switchgear units, with dead-front stainless steel enclosure SF-6 Gas Insulated Equipment, due to
corrosion and contamination issues, which will continue at a rate of 1-Units per year. 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. 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 M.T.O., 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.

14. Pole Replacement - 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 as per OEB requirements (3 yrs./urban, 6 yrs./rural), with a total population of
over 37,000. 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 imaged, guy guards are installed & down grounds are repaired/
replaced as required, and the inspection results and images are stored within the Geographical Information
System (GIS). An evaluation of the results is performed, with deficiencies addressed by the replacement of
deficient poles, in a timely manner, through this Capital Program. The average cost per pole change is
approximately $ 8,000.

15. Smart Grid
Installation of smart technologies onto the distribution system. These technologies include reclosers, fault
indicators and switches. These devices will communicate real time system status to our Operators allowing
them to make better decisions when operating the system. The devices will also be remotely operable by the
Operators via our existing WiMax network. This will be an annual program which focuses on modernizing our
distribution system to improve both system reliability and efficiency.

16. 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.

17. New Residential Services (Subdivisions)
This Capital Program manages the installation and connection of new residential services within new and ongoing
residential developments such as subdivisions.

18. 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.

19. 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.

20. Padmount Tx Replacement
This Capital Program manages an allowance for the replacement of small padmount transformers that have
been identified through the padmount equipment inspections or other means as being at end of life. In the
past, these transformers have been changed under various other projects. Creating this new program will
enable better tracking of both the quantity of transformers changed and the associated costs.

21. Pole mount Tx Replacement
This Capital Program manages an allowance for the replacement of pole mount transformers that have been
identified through the overhead equipment inspections or other means as being at end of life. In the past,
these transformers have been changed under various other projects. Creating this new program will enable
better tracking of both the quantity of transformers changed and the associated costs.

22. Transfer of expansion facilities from Customers
This Capital Program includes the transfer of expansion facilities from customers constructed under the
alternative bid option. The capital contribution (Recoverable) is equivalent to the value of the assets
transferred from customers.

23. Lot Rebates
Lot Rebates are calculated using the economic evaluation for system expansion projects completed by
developers where the developer has paid the entire cost of the expansion. Upon energization of the
distribution facilities, the values of the assets are transferred to NPEI as noted in item #22 above. For a
period of five years from the date of energization, as new customers are connected, the developer is rebated
a portion of the capital contribution that the developer originally paid NPEI.