Generation Connection

CONNECTION OF EMBEDDED GENERATION FACILITIES

Building a generation facility and connecting it to the Toronto Hydro distribution system requires attention to safety, adherence to technical standards, all in compliance with regulatory requirements. Connection of an embedded generator involves several steps and both parties have distinct responsibilities.

• What is Toronto Hydro responsible for?
• What is the Generator responsible for?
• What is the process for connecting an embedded generator?
• How do I apply for connection of an embedded generator?
• What are the metering connection options?

What is Toronto Hydro responsible for?

• The safety, reliability, and efficiency of its distribution system, and ensuring that the new generation connection does not adversely affect the distribution system or existing customers
• Ensuring that the Distribution System Code and applicable standards are followed

+ return to top

What is the Generator responsible for?

• The safety, design, construction, operation, metering, protection and control, and maintenance of the generating facility
• Contacting the various agencies involved well before finalizing plans
• Ensuring all necessary submissions and agreements are completed and required payments made
• Considering using a consultant to assist with the connection requirements, process, and approvals

+ return to top

What is the process for connecting an embedded generator?

Customers interested in connecting an embedded generator to the Toronto Hydro distribution system will follow the process established by the Ontario Energy Board for one of the four Generator classifications.

1. What is the process and requirements internal to Toronto Hydro?
   
   The Toronto Hydro "Conditions of Service Complete Document" (i.e. including the seven reference documents) contains among other things information for the connection of embedded generation facilities. More specifically, you may select the relevant bookmark:
   
   
   • Section 3.5 titled " Embedded Generation Facilities " outlines the classifications and general terms and conditions for the connection of embedded generation facility to the distribution system.
   • Section 6, Reference #2, Schedule B1 titled " Micro-Embedded Generation Facility Connection Agreement " provides the terms, conditions, and technical requirements for load displacement generators that are 10 kW or less.
   • Section 6, Reference #2, Schedule B2 titled " Embedded Generator Connection Agreement " provides the default legal terms and conditions for embedded generators that are greater than 10 kW.
   • Section 6, Reference #3 titled " Toronto Hydro Parallel Generation Requirements " provides technical requirements for interconnecting parallel generation greater than 10 kW.
   • Section 6, Reference #4 titled " Toronto Hydro Requirements for the Design & Construction of Customer-Owned High Voltage Substations " provides guidance for the design and construction of 13.8 kV and 27.6 kV customer owned substations, including substation switchgear and primary cable.
   • Queuing Process: The queue position will begin on the date Toronto Hydro communicates the result of the connection impact assessment to you. In order to maintain the queue position you must sign the Connection Cost Agreement within 12 months. Failing to do so, Toronto Hydro will send you a two month's notice prior to removing you from the queue.
   
   

   Note 1: Standard Offer Program
   In conjunction with the OPA (Ontario Power Authority), Toronto Hydro has established a Standard Offer Program (SOP). In case you are planning to install a generator that uses a renewable technology (such as wind, solar, photovoltaic (PV), renewable biomass, bio-gas, bio-fuel, landfill gas, or drop in water elevation) and with a capacity of 10 MW or less, please consider the OPA Standard Offer Program. The SOP is a program whereby eligible customers with specific generation facilities can export generated energy to the Toronto Hydro distribution system.

   In most circumstances, generating facilities participating in the Standard Offer Program will connect directly to Toronto Hydro Electric System at a voltage of 27.6 kV or less. The generator will be solely responsible for any costs associated with the connection to the Toronto Hydro distribution system and any required metering installation.

   Note 2: Net Metering Program
   Toronto Hydro has also in place a Net Metering Program. In case you are planning to install a generator that uses a renewable technology and is less than 500 kW, please consider our Net Metering program. Net Metering is a program whereby eligible customers with specific generation facilities can reduce their net energy costs by exporting surplus generated energy back onto the utility distribution system for credit against the energy the customer consumes from the distribution system. For instance, all residential, solar panel, and small wind turbine installations could benefit from this program.

2. What external approvals are part of the Toronto Hydro connection process?
   
   Depending on the size, type, fuel, and location of generation facilities, the connection of your generation facilities to our distribution system may require approvals from various regulators that govern the electricity industry in Ontario. Below are some of the relevant organizations you may need to engage for the connection of an embedded generation facility.
   
• Independent Electricity System Operator (IESO)
  • The Independent Electricity System Operator (IESO) manages the Ontario power grid, provides the hourly energy spot market prices, as well as sets and enforces the Market Rules for participating in the Ontario electricity market.
  • A System Impact Assessment is conducted by the IESO prior to the customer connecting an embedded generation facility that is 10 MW or greater in size.
  • Embedded generators that are over 20 MW or are participating in the Renewable Energy Supply Contract are required to register with the IESO as a Market Participant and must comply with all market rules, including metering requirements.
• Ontario Energy Board (OEB)
• The Distribution System Code (DSC) issued by the OEB sets out the minimum conditions that distributors must meet in carrying out their obligations to distribute electricity in Ontario, under their licence. The interconnection process and requirements for embedded generation are governed by the " Distribution System Code " including Appendix F.
• The Ontario Energy Board regulates the electricity and gas industry in Ontario. The Ontario Energy Board Act, 1998, Section 57, requires that electricity market participants be licensed in order to export power to the distribution grid. More specifically, the Generator must obtain a Generator Licence from the OEB when:
• The Applicant intends to sell power into the IESO-administered market.
• The Applicant intends to settle for amounts through a distributor's retail settlement system for energy injected into the distributor's distribution system (i.e. sell electricity through the distributor). If so, the Applicant must have a connection agreement and a service agreement for settlement purposes with the distributor.
Generally, a generator licence is not required for load displacement generator or net metering customers.
• Electrical Safety Authority (ESA)
  • The Ontario Electrical Safety Authority sets and enforces standards for electrical safety through the Ontario Electrical Safety Code. Before connecting to the Toronto Hydro distribution system, the customer is required to have the ESA inspect their generation facility and provide a Connection Authorization to Toronto Hydro.
• Ontario Power Authority (OPA)
  • In the case the customer wants to participate in the Ontario Power Authority Standard Offer Program, the customer will need to sign a Standard Offer Program contract with the OPA.
3. What other external approvals may apply that are not part of the Toronto Hydro connection process?
   
   The customers should also be aware that other approvals might be required such as those from the Ontario Ministry of Environment (MOE), the Canadian Environmental Assessment Agency (CEAA), etc.
   
   
   • Ontario Ministry of Environment (MOE)
     • Depending on the size, type, fuel, and location of generation facilities, the MOE may require that the customer carry out an environmental assessment.
     • The Ontario Ministry of Environment sets environmental standards for electricity projects in Ontario and ensures that generators, distributors and transmitters follow rules and standards when constructing and operating facilities.
     • Guide to Environmental Assessment for Electricity Projects provides the environmental assessment requirements for electricity projects. They apply equally to the public and private sectors.
     • Projects involving generators less than 1 MW typically do not require environmental screening or environmental assessment. For certainty, you are encouraged to contact the MOE to determine whether an environmental assessment is required.
   • Canadian Environmental Assessment Agency (CEAA)
     • The Canadian Environmental Assessment Agency controls the federal environmental assessment process and it applies whenever a federal authority has a specified decision-making responsibility for a project.
     • Depending on the impact of the generation facilities on federal jurisdiction, a federal environmental assessment may be required.
     • For certainty, you are encouraged to contact the CEAA to determine whether a federal environmental assessment is required.

+ return to top

How do I apply for connection of an embedded generator?

If you are interested in connecting an embedded generation facility to the Toronto Hydro distribution system, please fill in the Embedded Generation Connection Application Form ( PDF | DOC ) and email it to Toronto Hydro at genconnect@torontohydro.com.

At a later date, should you decide to proceed with the project, you will be asked to submit an Impact Assessment Generator Form ( PDF)

Customers without e-mail access can fax the form to 416.542.2630, Attn: Angelo Boschetti, or submit through regular mail to:

Capacity Planning Department
Toronto Hydro-Electric System Limited
500 Commissioners Street
Toronto, Ontario
M4M 3N7

To contact Toronto Hydro call 416.542.8000 or e-mail at genconnect@torontohydro.com.

+ return to top