S S SYSTEM BENEFITS OF SO RENEWABLES, CONSERVATION & DISTRICT ENERGY

Joyce McLean Project Neutral Community Session June 9, 2012

Toronto Hydro-Electric System Limited

TORONTO HYDRO SNAPSHOT

Toronto Hydro recently celebrated it 100th year anniversary T t H d tl l b t d its i Serves population of approximately 2.5 M across Toronto Approximately 705,000 customers & 674,000 smart meters 24,746 GWh/year electricity delivered (approx. 19% of Ontarios load); 4 786 MW peak load 4,786 Toronto Hydro Approximately $2.2 B in Corporation capital assets Approximately 1,600 employees
Toronto Hydro ElectricSystem Limited Toronto Hydro Energy Services Inc.

Toronto Hydro s priorities are health and safety customer Hydros safety, service, modernizing our utility and consistent financial performance

2 System Benefits of RE, CDM & DE

Toronto Hydro-Electric System Limited

SYSTEM BENEFITS
System Challenges Managing Loads System Benefits Interconnections

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Toronto Hydro-Electric System Limited

CHALLENGES: INTENSIFICATION
189 new construction projects in Toronto; Pace will continue.

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Toronto Hydro-Electric System Limited

CHALLENGES: LOAD FORECAST (2021) ( )

Available

Approximately 2% Annual Growth Various Hot Spots of High Growth

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CHALLENGES: TRANSMISSION SUPPLY

Short circuit levels near station equipment capability (~40,000 A) at bili ( 40 000 Hearn, Manby and Leaside

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Toronto Hydro-Electric System Limited

CHALLENGES: INFRASTRUCTURE AGE

$6.5B 54% $3.3B 28%

Assets Prior to End-ofLife

Assets Past Endof-Life

$2.2B 18%

Will Reach End-of-Life by b 2021

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Toronto Hydro-Electric System Limited

MANAGING LOADS THROUGH:

NEW SUPPLY Generation, transmission & distribution infrastructure RENEWABLES New solar, biogas and wind capacity , g p y CONSERVATION More efficient b ildi M ffi i t buildings, systems and controls t d t l

DISTRICT ENERGY Hi h ffi i High-efficiency systems with gas-fired, geothermal or solar sources t ith fi d th l l Various Supply Options with different Pros/Cons.

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Toronto Hydro-Electric System Limited

SOURCE CHARACTERISTICS
NEW SUPPLY Costly but provides firm source RENEWABLES Environmental benefits but provides intermittent source p CONSERVATION Most M t cost-effective option to use less energy t ff ti ti t l

DISTRICT ENERGY Hi h t efficiency ( Highest ffi i (waste h t recovered) and provides fi source t heat d) d id firm

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Toronto Hydro-Electric System Limited

SYSTEM BENEFITS
LOCAL RENEWABLES, CONSERVATION & DISTRICT ENERGY PROVIDE THESE BENEFITS: Reduced line losses (3-5%) Displaced CO2 emissions Increased local reliability (additional supply source) Congestion relief along feeders Local voltage support (improved power quality) Potential to defer infrastructure upgrades (capacity) pg ( p y)

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Toronto Hydro-Electric System Limited

INTERCONNECTIONS
Urban environments provide opportunities to introduce distributed generation plants to the grid which helps increase supply security. Generation projects may face interconnection constraints.

Typical 250kW Roof Solar PV

Typical 15MW District yp Energy

11 System Benefits of RE, CDM & DE Toronto Hydro-Electric System Limited

INTERCONNECTION CONTRAINTS
Available capacity is related to: l legacy system design t d i short circuit capacity thermal capacity minimum power flows equipment age The very location where you need capacity is likely already heavily constrained. y y y
12 System Benefits of RE, CDM & DE Toronto Hydro-Electric System Limited

SHORT CIRCUIT OR FAULT

Induction generators contribute fault current = 6 x rated current

Inverter generators contribute fault current = 1.2 x rated current Associated equipment must withstand this fault current for defined duration
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GENERATION INTEGRATION TO DATE

Approximately 110MW gas-fired generation in-service Approximately 10MW renewable generation in-service
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SUMMARY
Local Renewables, Conservation and District Energy provide system benefits through efficiency g p y g y gains, lowered , emissions, improved reliability and reduced losses Can be difficult to quantify the financial value Toronto Hydro actively supports the integration of Renewables, Conservation and District Were available to provide technical support via phone 416 542-3099 or e-mail fit@torontohydro.com or weblink http://www.torontohydro.com/sites/electricsystem/residentia http://www torontohydro com/sites/electricsystem/residentia l/generationconnection/Pages/default.aspx

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Toronto Hydro-Electric System Limited

DISCLAIMER
The information in these materials is based on information currently available to Toronto Hydro Corporation and its affiliates (together hereinafter referred to as Toronto Hydro), and is provided for information purposes only. Toronto Hydro does not warrant the accuracy, reliability, completeness or timeliness of the information and undertakes no obligation to revise or update these materials. Toronto Hydro (including its directors, officers, employees, agents and subcontractors) hereby waives any and all liability for damages of whatever kind and nature which may occur or be suffered as a result of the use of these materials or reliance on the information therein These materials may also contain forward looking information within the meaning of therein. forward-looking applicable securities laws in Canada ("Forward-Looking Information"). The purpose of the Forward-Looking Information is to provide Toronto Hydros expectations about future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All Forward-Looking Information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" a d s a e p ess o s a e o te o ecasts , te ds , ay , g t , p a s , p ojects , sc edu e , s ou d , , ou d and similar expressions are often intended to identify Forward-Looking Information, although not all Forward-Looking Information contains these identifying words. The Forward-Looking Information reflects the current beliefs of, and is based on information currently available to, Toronto Hydros management. The Forward-Looking Information in these materials includes, but is not limited to, statements regarding Toronto Hydros future results of operations, performance, business prospects and opportunities. The statements that make up the Forward-Looking Information are based on assumptions that include, but are not limited to, the future course of the economy and financial markets, the receipt of applicable regulatory approvals and requested rate orders, the receipt of favourable judgments, the level of interest rates, Toronto Hydros ability to borrow, and the fair market value of Toronto Hydros investments. The Forward-Looking Information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the Forward-Looking Information. The factors which could cause results or events to differ from current expectations include, but are not limited to, the timing and amount of future cash flows generated by Toronto Hydro s investments, market liquidity and the quality of the underlying assets and financial instruments, the timing and Hydro's investments instruments extent of changes in prevailing interest rates, inflation levels, legislative, judicial and regulatory developments that could affect revenues, and the results of borrowing efforts. Toronto Hydro cautions that this list of factors is not exclusive. All ForwardLooking Information in these materials is qualified in its entirety by the above cautionary statements and, except as required by law, Toronto Hydro undertakes no obligation to revise or update any Forward-Looking Information as a result of new information, future events or otherwise after the date hereof.

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Toronto Hydro-Electric System Limited