ONTARIO ENERGY BOARD

Transmission System Code

Last Revised December 18, 2018

(Originally Issued on July 14, 2000)
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TABLE OF CONTENTS

1. PURPOSE ............................................................................................................... 4
2. DEFINITIONS .......................................................................................................... 5
3. APPLICATION AND INTERPRETATION .............................................................. 14

3A. SCREENING CRITERIA FOR ENABLER FACILITIES ...........................................................17

3B. RELIABILITY AND INTEGRITY OF TRANSMISSION SYSTEM ................................................18

3C. REGIONAL PLANNING ...................................................................................................19

4. STANDARDS OF BUSINESS PRACTICE AND CONDUCT ................................ 25

4.1 GENERAL REQUIREMENTS ...........................................................................................25

4.2 TRANSMISSION SERVICE CHARGES ..............................................................................26

4.3 FACILITIES STANDARDS ...............................................................................................26

4.4 OPERATIONAL STANDARDS AND REPORTING PROTOCOL ...............................................28

4.5 PERFORMANCE STANDARDS .......................................................................................28

4.6 COMPLIANCE OF FACILITIES WITH STANDARDS ..............................................................30

4.7 CONFIDENTIALITY ........................................................................................................31

5. REQUIREMENTS FOR OPERATIONS AND MAINTENANCE ............................. 33

5.1 DAY-TO-DAY OPERATIONS ...........................................................................................33

5.2 FORCED OUTAGES ......................................................................................................33

5.3 SCHEDULING OF PLANNED W ORK .................................................................................33

5.4 EMERGENCY OPERATIONS ...........................................................................................34

6. CUSTOMER CONNECTIONS ............................................................................... 35

6.1 GENERAL REQUIREMENTS ...........................................................................................35

6.2 AVAILABLE CAPACITY ..................................................................................................39

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6.3 COST RESPONSIBILITY FOR NEW AND MODIFIED CONNECTIONS .....................................45

6.4 CUSTOMER IMPACT ASSESSMENTS ..............................................................................52

6.5 ECONOMIC EVALUATION OF NEW AND MODIFIED CONNECTIONS.....................................54

6.6 CONTESTABILITY .........................................................................................................59

6.7 REPLACEMENT AND RELOCATION OF EXISTING CONNECTION FACILITIES .......................61

6.8 OBLIGATIONS BETWEEN NEIGHBOURING ONTARIO TRANSMITTERS.................................62

6.9 RECORD KEEPING AND REPORTING REQUIREMENTS .....................................................63

6.10 RECONNECTION ..........................................................................................................63

7. COMPLIANCE, INSPECTION, TESTING AND MONITORING ............................. 65

7.1 REQUIREMENTS ..........................................................................................................65

8. GENERAL TECHNICAL REQUIREMENTS .......................................................... 66

8.1 INTENTIONALLY LEFT BLANK .........................................................................................66

8.2 PROTECTION AND CONTROL ........................................................................................66

8.3 INSULATION COORDINATION .........................................................................................68

8.4 GROUNDING................................................................................................................68

9. TECHNICAL REQUIREMENTS FOR TAPPED TRANSFORMER STATIONS

SUPPLYING LOAD ...................................................................................................... 69

9.1 SUPPLY CONSIDERATIONS ...........................................................................................69

9.2 PROTECTION REQUIREMENTS ......................................................................................69

10. PROTECTION SYSTEM REQUIREMENTS .......................................................... 71

10.1 TELECOMMUNICATIONS................................................................................................71

10.2 TEST SCHEDULE FOR RELAYING COMMUNICATION CHANNELS .......................................72

10.3 VERIFICATION AND MAINTENANCE PRACTICES ..............................................................72

10.4 FUNCTIONAL TESTS AND PERIODIC VERIFICATION .........................................................72

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10.5 FAILURE PROTECTION FOR HIGH VOLTAGE INTERRUPTING DEVICES ..............................73

10.6 INSTRUMENT TRANSFORMERS......................................................................................74

10.7 BATTERY BANKS AND DIRECT CURRENT SUPPLY ..........................................................74

11. EMBEDDED GENERATION AND BYPASS COMPENSATION ........................... 76

11.1 EMBEDDED GENERATION .............................................................................................76

11.2 BYPASS COMPENSATION .............................................................................................77

12. DISPUTE RESOLUTION ....................................................................................... 80

12.1 OBLIGATION TO INCLUDE IN PROCEDURES ....................................................................80

13. COMING INTO FORCE ......................................................................................... 82

APPENDICES

APPENDIX 1: VERSION A - FORM OF CONNECTION AGREEMENT FOR LOAD CUSTOMERS

APPENDIX 1: VERSION B - FORM OF CONNECTION AGREEMENT FOR GENERATOR CUSTOMERS

APPENDIX 2: TRANSMISSION SYSTEM CONNECTION POINT PERFORMANCE STANDARDS

APPENDIX 3: INFORMATION TO BE MADE AVAILABLE TO CUSTOMERS BY TRANSMITTERS

APPENDIX 4: CUSTOMER FINANCIAL RISK CLASSIFICATION

APPENDIX 5: METHODOLOGY AND ASSUMPTIONS FOR ECONOMIC EVALUATIONS

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1. PURPOSE

1.0.1 The purpose of this Transmission System Code (the “Code”) is to set out:

(a) the minimum conditions that a transmitter shall meet in designing,

constructing, managing, maintaining and operating its transmission
system;
(b) the rules governing a transmitter's obligation to connect customers to its
transmission system, and to provide transmission service to its customers;
(c) the obligations between a transmitter and its customers and between a
transmitter and its neighbouring Ontario transmitters;
(d) the rules governing the economic evaluation of transmission system
connections and expansions;
(e) the minimum standards for facilities connected to a transmission system;
and
(f) through the connection agreement set out in Appendix 1, the obligations of
a customer to the transmitter to whose transmission system the customer’s
facilities are connected.

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2. DEFINITIONS

2.0.1 "Act" means the Ontario Energy Board Act, 1998, S.O.1998, c.15, Schedule B,
and includes all regulations made thereunder;

2.0.2 “assigned capacity” means, in relation to a load customer and a connection

facility, the capacity determined in accordance with section 6.2.2;

2.0.3 “available capacity” means, at a given time, the capacity on a connection facility
that is not at that time assigned to a load customer;

2.0.4 "Board" means the Ontario Energy Board;

2.0.5 "bus" means a common current carrying element which allows the connection of
other elements to that common element;

2.0.6 "business day" means any day that is not a Saturday, a Sunday or a legal
holiday in the Province of Ontario;

2.0.7 “CIA” means customer impact assessment;

2.0.8 “circuit breaker” means a system element that interrupts the flow of electricity
upon receiving a trip signal and includes, where applicable, any associated
current transformer and the bus section between the breaker bushing and its
current transformer;

2.0.9 “Code revision date” means the date on which this Code comes into effect as
specified in section 13.0.1;

2.0.10 "come into service" means, in relation to a facility, the time at which the facility
becomes connected to a transmission system and energized following
commissioning of the facility;

2.0.11 "connect" means to form a direct physical link between a transmitter's

transmission facilities and a customer's facilities or a neighbouring Ontario
transmitter’s facilities;

2.0.12 "connection agreement" means an agreement entered into by a transmitter and a

customer setting out terms and conditions pertaining to connection of the

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customer’s facilities to the transmitter's transmission system and the provision of

transmission services in relation to those customer facilities, but does not include
a “connection and cost recovery agreement” or similar agreement entered into in
relation to the construction of new or modified facilities where it is contemplated
that a connection agreement will thereafter be entered into;

2.0.13 "connection facilities" means line connection facilities and transformation

connection facilities that connect a transmitter’s transmission system with the
facilities of another person, and includes an enabler facility but excludes any line
referred to in section 3.0.14(a) and any station referred to in section 3.0.14(b);

2.0.14 "connection point" means a point of connection between a transmitter's

transmission facilities and a customer's facilities and, in the case of an enabler
facility, means each point of connection between the enabler facility and any
customer facility connected to the enabler facility;

2.0.15 "connection service" in relation to a transmitter has the meaning given in the
transmitter’s Rate Order;

2.0.16 "consumer" means a person using, for their own consumption, electricity that
they did not generate and whose facilities are connected to a transmission
system;

2.0.17 “contracted capacity” means, in relation to a load customer and a connection

facility, the capacity determined in accordance with section 6.2.3;

2.0.18 "customer" means a generator, consumer, distributor or unlicensed transmitter

whose facilities are connected to or are intended to be connected to a
transmission system;

2.0.19 "customer facilities" means any and all equipment, elements, and facilities of any
kind whatsoever owned by a customer that are relevant to a connection;

2.0.20 "de-energized" means a state at which the stored potential energy of an isolated
piece of equipment has been discharged. Electrical equipment is considered
de-energized when its electrical energy has been discharged through connection
to an effective ground potential. Mechanical equipment is considered
de-energized when hazards due to temperature, pressure, chemical substances,
gases, radiation, and motion have been minimized or, where practical, eliminated
by measures including the following: (i) operation of valves, gates and dampers;

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(ii) opening of pipes or equipment to the atmosphere; (iii) purging, ventilating, or

cooling; (iv) applying brakes and blocking motion; and (v) discharging loaded
springs;

2.0.21 "delivery point" has the same meaning as "connection point";

2.0.22 "distribute" with respect to electricity means to convey electricity at voltages of 50

kV or less;

2.0.23 "distributor" means a person who owns or operates a distribution system;

2.0.24 "distribution system" means a system for distributing electricity, and includes any
structures, equipment or other things used for that purpose;

2.0.25 "electricity" means electrical energy as measured in kilowatt hours;

2.0.26 "Electricity Act" means the Electricity Act, 1998, S.O.1998, c.15, Schedule A, and
includes all regulations made thereunder;

2.0.27 "element" means any electrical device that has at least one terminal that is
operated at greater than 50 kV and that may be connected to other electrical
devices, and is usually associated with a generator, transformer, transmission
circuit, circuit breaker, HVDC pole, series or shunt compensating device or bus
section;

2.0.28 "emergency" means any abnormal condition that requires automatic or

immediate manual action to prevent or limit loss of a licensed transmitter’s
transmission facilities or loss of the supply of electricity or energy that could
adversely affect: (a) the reliability of the licensed transmitter’s transmission
system, (b) the integrity of customer facilities or of the licensed transmitter's
transmission facilities, or (c) public safety, property or the environment;

2.0.28A “enabler facility” means a line connection facility or a transformation connection

facility that is or will be constructed, owned and operated by a transmitter and to
which two or more generation facilities that are included in a renewable resource
cluster are connected or intend to connect to convey energy into a transmitter’s
transmission system, where any of the following apply: (a) the connection facility
is identified as an “enabler facility” and the associated renewable resource
cluster is identified as such in an integrated power system plan that has been
approved under Part II.2 of the Electricity Act or in a Board-approved plan filed

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with the Board by a transmitter pursuant to the deemed condition of the

transmitter’s licence referred to in paragraph 2 of subsection 70(2.1) of the Act;
(b) the associated renewable resource cluster is the subject of a direction issued
by the Minister to the Ontario Power Authority under section 25.32 of the
Electricity Act on or after October 20, 2009 and the Board, on the advice of the
Ontario Power Authority, has determined that a connection facility is required; or
(c) the OPA has provided the Board with written advice identifying the associated
renewable resource cluster as one for which an enabler facility would be
desirable, and the Board has determined that a connection facility is required and
that the connection facility satisfies the screening criteria set out in section 3A.

2.0.29 "facilities" means transmission facilities, a neighbouring Ontario transmitter’s

facilities or customer facilities, as the context requires, and includes any
structures, lines, transformers, breakers, disconnect switches, buses,
voltage/current transformers, protection systems, telecommunications systems,
cables and any other auxiliary equipment used for the purpose of conveying
electricity;

2.0.30 "fault" means an event arising from the failure of facilities, including a short
circuit, an open circuit, or an intermittent connection;

2.0.31 "forced outage" means the automatic or manual limitation of service owing to
de-rating or limitation of facilities, or the unavailability of facilities as a result of
actual or potential failure of those facilities or of any other facilities related to
them;

2.0.32 "generator customer" means a customer who owns or operates a generation

facility;

2.0.33 "good utility practice" means any of the practices, methods and acts engaged in
or approved by a significant portion of the electrical utility industry in North
America during the relevant time period, or any of the practices, methods and
acts which, in the exercise of reasonable judgment in light of the facts known at
the time the decision was made, could have been expected to accomplish the
desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition. Good utility practice is not intended to be
limited to optimum practices, methods or acts to the exclusion of all others, but
rather to include all practices, methods or acts generally accepted in North
America;

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2.0.34 "harmonic" means a sinusoidal component of a periodic wave or quantity having

a frequency that is an integral multiple of the fundamental frequency (for
example, a component whose frequency is twice the fundamental frequency is
called a second harmonic);

2.0.35 "IESO" means the Independent Electricity System Operator continued under the
Electricity Act;

2.0.36 "isolate" means to separate facilities from any source of dynamic energy;

2.0.37 "isolating device" means a device used to separate facilities from any source of
dynamic energy;

2.0.38 "licence" means a licence issued under Part V of the Act;

2.0.39 "line connection" means radial lines that do not, under normal operating
conditions, connect network stations and whose sole purpose is to serve one or
more persons;

2.0.40 “load customer” means a customer who owns or operates a facility other than a
generation facility or a transmission system;

2.0.41 "load shedding" means the deliberate disconnection of the load of a customer
from a transmission system or a distribution system (either manually or
automatically) in response to an emergency in order to maintain the integrity of
the transmission system or distribution system and to minimize overall outages to
customer facilities;

2.0.42 "maintenance" includes such routine maintenance, troubleshooting, repairs,

changes, modifications and other activities as may be required for the safe and
efficient operation of facilities;

2.0.43 "Market Rules" means the rules made under section 32 of the Electricity Act;

2.0.44 “neighbouring Ontario transmitter” in relation to a licensed transmitter (the “first

transmitter”) means another licensed transmitter whose transmission system is
located in Ontario and is connected to that of the first transmitter or that seeks to
have its transmission system located in Ontario connected to that of the first
transmitter, as the context requires;

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2.0.45 "network facilities" means those facilities, other than connection facilities, that
form part of a transmission system that are shared by all users, comprised of
network stations and the transmission lines connecting them, and has the
extended meaning given to it in section 3.0.14;

2.0.45A “network station” means:

(a) any station with one or more of the following:
i. a 500 kV element, including a 500/230 kV or a 500/115 kV
autotransformer;
ii. a 230 kV or 115 kV element that switches lines that normally
operate in parallel with lines that connect transmission stations
containing 500 kV elements;
iii. a 345 kV, 230 kV or 115 kV element that switches a 345 kV,
230 kV or 115 kV line that connects with the transmission
system of a neighbouring Ontario transmitter or with a
transmission system outside Ontario, including a 345/230 kV
autotransformer; or
iv. a 345 kV, 230 kV or 115 kV element that switches a 345 kV,
230 kV or 115 kV line that connects interconnection circuits to
any network station referred to in any of (i) to (iii) above; and
(b) any station that the Board has determined should be treated as a network
facility in or through a Decision, Order or Decision and Order issued before
August 26, 2013, and has the extended meaning given to it in section
3.0.14;

2.0.46 "NERC" means the North American Electric Reliability Corporation;

2.0.47 "net book value" means the net book value used by the Board for rate-making
purposes;

2.047A “OPA” means the Independent Electricity System Operator or successor

company;

2.0.48 "outage" means the removal of facilities from service, unavailability for
connection of facilities, temporary de-rating, restriction of use or reduction in the
performance of facilities for any reason, including to permit the inspection,
testing, maintenance or repair of facilities;

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2.0.49 "planned outage" means an outage that is planned or intentional and that is
scheduled to occur at a pre-selected time, usually for the purpose of permitting
construction, preventative maintenance or repair;

2.0.50 "promptly" means performed in an expeditious manner and without undue delay,
using due diligence, and with the intent of completing a required act or task as
quickly as practicable;

2.0.51 "protection system" means equipment that detects faults or abnormal conditions
and takes appropriate corrective action to isolate the faulted element;

2.0.52 "protective relay" means an electrical device that detects a fault or abnormal
condition on a transmission system or a distribution system and that is designed
to respond to abnormal variations in input conditions and to cause prescribed
contact operation or similar abrupt changes in associated electric control circuits
which, in turn, if prescribed parameters are met, initiate the operation of a system
element (such as a circuit breaker) to disconnect a faulty element (such as a
transformer);

2.0.53 "Rate Order" means an order made by the Board under the Act, and in effect at
the relevant time, that, among other things, establishes the rates that may be
charged by a transmitter for transmission service;

2.0.54 "reliability", in relation to electricity service, means the ability to deliver electricity
in accordance with all applicable reliability standards and in the amount desired;

2.0.55 "reliability organization" means NERC, the Northeast Power Coordinating

Council, and the IESO;

2.0.56 "reliability standards" means the criteria, standards and requirements relating to
reliability set forth in this Code and, where relevant, as established by applicable
reliability organizations;

2.0.57 “renewable generation” means a generation facility that generates electricity

using a renewable energy source as defined in the Electricity Act;

2.0.57A “renewable resource cluster” means a geographic area where resources

suitable for renewable generation are present and where the renewable
generation facilities are not, or are not expected to be, owned or controlled by the
same person and that is identified as such in: (a) an integrated power system

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plan approved under Part II.2 of the Electricity Act or a Board-approved plan filed
with the Board by a transmitter pursuant to the deemed condition of the
transmitter’s licence referred to in paragraph 2 of subsection 70(2.1) of the Act;
(b) a direction issued by the Minister to the Ontario Power Authority under
section 25.32 of the Electricity Act; or (c) written advice from the OPA to the
Board;

2.0.58 "single contingency" means a single event, usually involving the loss of one or
more elements, that affects a transmission system at least momentarily;

2.0.59 "site" means the land, buildings and other structures on, in or around which
facilities are located;

2.0.60 "transformation connection" means transformation facilities, tapped off a

transmission system, that step down voltages from transmission levels to
distribution levels (i.e. from more than 50 kV to 50 kV or less) in order to supply
the facilities of a person;

2.0.61 "transmission facilities" means facilities owned by a transmitter that form part of
or all the transmission system owned by that transmitter;

2.0.62 "transmission service" means a service provided by a transmitter to a customer

as specified in the transmitter’s Rate Order, and includes Network Service, Line
Connection Service, Transformation Connection Service or such other
transmission service as may be described in such Rate Order;

2.0.63 "transmission system" means a system for transmitting electricity and includes
any structures, equipment or other things used for that purpose;

2.0.64 "transmit" with respect to electricity means to convey electricity at voltages of

more than 50 kV;

2.0.65 "transmitter" means a person who owns or operates a transmission system;

2.0.66 “unlicensed transmitter” means a person who owns or operates a transmission

system and that is exempt from the requirement to hold a licence under section
57(b) of the Act by virtue of a regulation made under the Act or of the application
of section 84 of the Act; and

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2.0.67 "work" includes design, installation, construction, commissioning, removal,

inspection, testing, undertaking of repairs or undertaking of maintenance.

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3. APPLICATION AND INTERPRETATION

3.0.1 All appendices attached to this Code form part of it. Unless otherwise defined in
this Code, words and phrases shall have the meaning ascribed to them in the Act
or the Electricity Act. Headings are for convenience only and shall not affect the
interpretation of this Code. Words importing the singular include the plural and
vice versa. Words importing a gender include any gender. Words importing a
person include (i) an individual, (ii) a company, sole proprietorship, partnership,
trust, joint venture, association, corporation or other private or public body
corporate; and (iii) any government, government agency or body, regulatory
agency or body or other body politic or collegiate. A reference to a person
includes that person’s successors and permitted assigns. A reference to a body,
whether statutory or not, that ceases to exist or whose functions are transferred
to another body is a reference to the body that replaces it or that substantially
succeeds to its powers or functions. Where a word or phrase is defined in this
Code, the Act or the Electricity Act, other parts of speech and grammatical forms
of the word or phrase have a corresponding meaning. A reference to a document
(including a statutory instrument) or a provision of a document includes any
amendment or supplement to, or any replacement of, that document or that
provision. The expression “including” means including without limitation.

3.0.2 A reference in this Code to “dedicated” connection facilities means that such
facilities are constructed initially for the sole use of a single customer, but shall
not be interpreted to mean that such facilities cannot thereafter be used by any
other customer if they are owned by a licensed transmitter at the relevant time.

3.0.3 A reference in this Code to:

(a) “existing load” in relation to a load customer and a connection facility, shall
at any point in time be equal to the customer’s assigned capacity on that
connection facility at that time; and

(b) “new load”, in relation to a load customer and a connection facility, shall at
any point in time:

i. if the customer has contracted capacity, be equal to the load that

exceeds the customer’s contracted capacity at that time; or

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ii. in any other case, be equal to the load that exceeds the customer’s
existing load as determined under section 3.0.3(a).

3.0.4 Except when an emergency is anticipated or is occurring, if the time for doing
any act or omitting to do any act under this Code expires on a day that is not a
business day, the act may be done or may be omitted to be done on the next
day that is a business day.

3.0.5 Except to the extent provided in a transmitter's licence, another code issued by
the Board or an order of the Board, this Code applies to all licensed
transmitters and to all transactions and interactions between a licensed
transmitter and its customers and between a licensed transmitter and its
neighbouring Ontario transmitters.

3.0.6 Subject to sections 3.0.5 and 3.0.9, a transmitter shall not:

(a) enforce any provision of any agreement that is contrary to or

inconsistent with this Code;

(b) apply any provision of any agreement in a manner that is contrary to or

inconsistent with this Code; or

(c) require any person to enter into an agreement that contains a provision
that is contrary to or inconsistent with this Code or to otherwise agree to
terms and conditions that are contrary to or inconsistent with this Code.

This section 3.0.6 applies to an agreement regardless of whether the

agreement was entered into before the Code revision date. Nothing in this
section 3.0.6 shall affect the continued validity of a provision of any agreement
entered into before the Code revision date under which the parties agreed to
realign their relationship or amend the agreement in a manner consistent with
this Code.

3.0.7 Subject to sections 3.0.5, 3.0.8 and 3.0.9, all connection agreements executed
prior to the Code revision date in furtherance of the requirement set out in
section 2.1.1 of the Transmission System Code as it existed prior to the Code
revision date are, as of the Code revision date, deemed to be amended to
conform to the applicable version of the connection agreement set out in
Appendix 1. The relationship between the parties shall thereafter be governed
by the applicable version of the connection agreement set out in Appendix 1.

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3.0.8 Where an agreement entered into before the Code revision date contains
provisions that were negotiated between the parties and that are not contrary
to or inconsistent with this Code, those provisions shall remain in effect and
must be honoured by the parties accordingly.

3.0.9 Where an economic evaluation was carried out prior to the Code revision date,
such economic evaluation shall for the purposes of the application of this Code
be deemed to have been carried out under this Code and shall, together with
the associated load forecast, apply for the purposes of this Code.

3.0.10 Sections 3.0.6 to 3.0.9 are without prejudice to the resolution of any dispute
between a transmitter and a customer that may have arisen prior to the Code
revision date.

3.0.11 A provision in an agreement entered into before the Code revision date is not
contrary to or inconsistent with this Code simply by reason of the fact that this
Code does not expressly contemplate such provision or is silent on the matter.

3.0.12 To the extent of any inconsistency or conflict between them, a Rate Order and
the Affiliate Relationships Code for Electricity Transmitters and Distributors
prevail over this Code.

3.0.13 Any matter under this Code requiring a determination by the Board may be
determined without a hearing or through an oral, written or electronic hearing,
at the Board's discretion.

3.0.14 Subject to section 3.0.15:

(a) a “network facility” includes any line that forms part of the physical path
between:
i. two network stations; or
ii. a network station and the transmission system of a
neighbouring Ontario transmitter or a transmission system
outside Ontario,
such that electricity can be transmitted along the entire path under some
operating conditions, which may or may not reflect normal operating
conditions; and

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(b) a “network station” includes any station with one or more of the
following:
i. an element that is greater than 500 kV;
ii. an autotransformer that steps down voltage from a higher
transmission level to a lower transmission level;
iii. a transmission switchyard to which all of the following are
connected:
A. one or more generation facilities with a minimum
aggregate installed rated capacity of 250 MW ;
B. one or more load facilities with a minimum aggregate
load of 150 MW; and
C. a minimum of four transmission circuits.

3.0.15 Section 3.0.14 only applies where the line referred to in section 3.0.14(a) or the
station referred to in section 3.0.14(b):

(a) commences to be constructed on or after August 26, 2013; or

(b) is expanded or reinforced for the purposes of increasing its capacity,
and the expansion or reinforcement (or the expanded or reinforced
line or station) commences to be constructed on or after August 26,
2013, regardless of when the line or station was originally placed into
service.

3A. SCREENING CRITERIA FOR ENABLER FACILITIES

3A.1 The following are the screening criteria that must be satisfied by a connection
facility in order to qualify as an enabler facility where clause (c) of the definition of
“enabler facility” applies:

(a) the capacity of the associated renewable resource cluster is at least 100
MW; and

(b) if the proposed enabler facility is a line connection facility, either:

i. the proposed line connection facility is at least 10 km in length; or

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ii. the OPA has satisfied the Board that the line connection facility
should qualify as an enabler facility because such treatment would
be superior, for technical or cost effectiveness reasons, to the
generation facilities in the associated renewable resource cluster
connecting directly to the transmitter’s existing transmission facilities
individually or on a coordinated basis.

3A.2 Nothing in section 3A.1 shall prevent the Board from determining, in a
proceeding to consider an application made under section 92 of the Act or a
process commenced to address the issue of the continued qualification of a
connection facility as an enabler facility, that a connection facility should maintain
its qualification as an enabler facility notwithstanding that the enabler facility no
longer satisfies the screening criteria set out in section 3A.1, if the Board is
satisfied that the deficiency is not material in the circumstances.

3B. RELIABILITY AND INTEGRITY OF TRANSMISSION SYSTEM

3B.1 A transmitter shall, in accordance with the Act, its licence and this Code, maintain
the reliability and integrity of its transmission system and reinforce or expand its
transmission system as required to meet load growth.

3B.2 Cyber Security

3B.2.1 Definitions
“Cyber Security” means a body of technologies, processes, and practices
designed to protect networks, computers, programs, data and personal
information from attack, damage or unauthorized access. Cyber security includes
electronic security and physical security issues as they relate to cyber security
protection.
“Cyber Security Framework” means the Ontario Cyber Security Framework that
was issued December 20, 2017, or the current version of the document.
3B.2.2 Reporting
3B.2.2.1
A transmitter shall report to the Board on the status of cyber security readiness
referencing the Cyber Security Framework at such times and in such a manner
as may be directed by the Board.

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3B.2.2.2
The Chief Executive Officer of the transmitter shall certify the transmitter’s
reported cyber security readiness in such form as may be required by the Board.
3B.2.3 Continuing Obligations Regarding Transmission System and
Privacy
Nothing in this section 3B.2 shall limit any obligations of a transmitter to maintain
the reliability and integrity of its transmission system, and to protect personal
information.

3C. REGIONAL PLANNING

3C.1 DEFINITIONS AND LEAD RESPONSIBILITY WHERE MORE THAN ONE TRANSMITTER IN A
REGION

3C.1.1 For the purposes of this section 3C:

“Integrated Regional Resource Plan” means a document prepared by the OPA that
identifies the appropriate mix of investments in one or more of conservation and
demand management, generation, transmission facilities or distribution facilities in order
to address the electricity needs of a region in the near- (up to 5 years), mid- (5 to 10
years), and long-term (more than 10 and up to 20 years);

“integrated regional resource planning process” means a planning process led by the
OPA for the purpose of determining the appropriate mix of investments in one or more
of conservation and demand management, generation, transmission facilities or
distribution facilities in order to address the electricity needs of a region in the near- (up
to 5 years), mid- (5 to 10 years), and long-term (more than 10 and up to 20 years);

“needs assessment” means a process led by a transmitter to determine if regional

planning is required for a region;

“region”, in respect of a transmitter, means an area within which the transmitter’s

transmission system is located, in whole or in part, and that has been designated as
such by the transmitter, in consultation with the OPA, under section 3C.2.2(a) for
regional planning purposes;

“Regional Infrastructure Plan” means a document prepared by the transmitter leading a

regional infrastructure planning process that identifies investments in transmission

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facilities, distribution facilities or both that should be developed and implemented on a

coordinated basis to meet the electricity infrastructure needs within a region;

“regional infrastructure planning process” means a planning process led by a transmitter

in accordance with this section 3C for the purpose of determining the investments in
transmission facilities, distribution facilities or both that should be developed and
implemented on a coordinated basis to meet the electricity infrastructure needs within a
region;

“regional planning” means a planning process involving licensed transmitter(s), licensed

distributor(s), and the OPA for the purpose of determining whether a Regional
Infrastructure Plan and/or an Integrated Regional Resource Plan is required for a region
and, where required, developing or updating a Regional Infrastructure Plan and/or an
Integrated Regional Resource Plan; and

“scoping assessment” means a process led by the OPA to determine the form of
regional planning process (regional infrastructure planning process or integrated
regional resource planning process) that is required for a region.

3C.1.2 For the purposes of this section 3C, where the transmission system of more than
one licensed transmitter is connected to customers in a region, the applicable
transmitters shall determine which among them will be responsible for leading the
regional infrastructure planning processes for the region at any given time. The
applicable transmitters shall make that determination within 30 days of August 26,
2013, and may agree to change that determination from time to time thereafter.
The transmitter that has been so designated at any given time shall be
responsible for complying with the obligations set out in this section 3C. The other
transmitter(s) shall participate in any regional infrastructure planning process or
integrated regional resource planning process for the region as reasonably
required by the lead transmitter or the OPA, as applicable, but shall not otherwise
be required to comply with the obligations set out in this section 3C.

3C.2 OBLIGATION TO LEAD REGIONAL INFRASTRUCTURE PLANNING PROCESS

3C.2.1 A transmitter shall, in consultation with the OPA and with all applicable licensed
distributors and licensed transmitters in a region, lead a regional infrastructure
planning process for each region and participate in any integrated regional
resource planning process for the region.

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3C.2.2 For the purposes of section 3C.2.1, a transmitter shall:

(a) review the boundaries of the regions, in consultation with the OPA, no less
than once every five years to determine whether they need to be modified;

(b) from time to time as required, and on a timely basis, request information
from all licensed distributors and licensed transmitters in a region and
from the OPA that the transmitter considers is reasonably required for the
purpose of undertaking a needs assessment in relation to the region;

(c) for each region, conduct a needs assessment at least every five years,
and more frequently if required by reason of forecasted load or demand
growth within a distributor’s licensed service area, request(s) for
connection received by the transmitter or other events that the transmitter
believes may trigger the need for investment in transmission facilities,
distribution facilities or both in a region. The needs assessment for a
region shall be completed within 60 days of receipt of the information
referred to in section 3C.2.2(b);

(d) within 10 days of completion of a needs assessment for a region, provide

a report to the OPA, the IESO, and all licensed distributors and licensed
transmitters within the region that reflects the results of the needs
assessment, including the identity of the licensed distributors that will and
will not need to be involved in further regional planning activities for the
region, and post that report on its website;

(e) where a needs assessment for a region indicates that a scoping

assessment is required, participate in the scoping assessment as may be
reasonably required by the OPA;

(f) where a scoping assessment identifies that a regional infrastructure

planning process is required for a region, complete or update a Regional
Infrastructure Plan for the region within six months of the date of receipt of
the scoping assessment from the OPA, and post the Regional
Infrastructure Plan on its website upon its completion;

(g) where a scoping assessment identifies that an integrated regional

resource planning process is required for a region, (i) participate in the
integrated regional resource planning process as may be reasonably

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required by the OPA, and (ii) subject to section 3C.2.3, provide the OPA
with such information as the OPA may from time to time reasonably
require for the purposes of the integrated regional resource planning
process within 30 days of receipt of a request by the OPA for the
information; and

(h) within 45 days of receipt of a request to do so, provide a letter to a

licensed distributor or a licensed transmitter confirming the status of
regional planning for a region, including any Regional Infrastructure Plan
that is being developed for the region that includes the distributor’s
licensed service area or within which the requesting transmitter’s
transmission system is located, suitable for the purpose of supporting an
application proposed to be filed with the Board by the distributor or
requesting transmitter.

3C.2.3 Where a transmitter believes that it cannot meet the 30-day timeline referred to
in part (ii) of section 3C.2.2(g), the transmitter and the OPA may agree to a
longer timeline. In such a case, the transmitter shall so notify the Board in writing.
The notice shall indicate the region in question, the reasons for being unable to
meet the 30-day timeline and the extended timeline that has been agreed to
between the transmitter and the OPA.

3C.3 MONITORING AND REPORTING

3C.3.1 Subject to section 3C.3.2, a transmitter shall, in consultation with the OPA and
with all applicable licensed distributors and licensed transmitters in a region for
which a Regional Infrastructure Plan has been completed, undertake a review
every 12 months following the completion of the Regional Infrastructure Plan for
the purpose of determining:

(a) whether the investments in transmission facilities, distribution facilities or

both, as applicable, identified in the Regional Infrastructure Plan are being
implemented in accordance with the schedule set out in the Plan; and

(b) whether the Regional Infrastructure Plan needs to be updated in advance of

the next scheduled needs assessment for the region.

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3C.3.2 Where a Regional Infrastructure Plan for a region includes only investments in
distribution facilities, a transmitter may make arrangements for a licensed
distributor in the region to conduct the review referred to in section 3C.3.1(a)
rather than conducting the review itself. In such a case, the transmitter shall
request a report from the distributor setting out the status of the investments set
out in the Regional Infrastructure Plan at least 60 days in advance of the filing of
the annual status report referred to in section 3C.3.3.

3C.3.3 A transmitter shall submit an annual report to the Board, on November 1st of
each year, that identifies the status of regional planning for all regions, and shall
post the report on its website. The report shall include the status of investments
in conservation and demand management, generation or both for each region for
which an Integrated Regional Resource Plan has been completed, provided that
this information has been provided to the transmitter by the OPA no later than
October 1st of the year.

3C.4 TRANSITION

3C.4.1 A transmitter shall, within 10 days of August 26, 2013, request from each
licensed distributor whose distribution system is connected to its transmission
system a letter identifying whether the distributor foresees a potential need for
additional transmission connection capacity to support the needs of the
distributor's distribution system and of the distribution system of any of that
distributor’s embedded licensed distributors over the next five years.

3C.4.2 A transmitter shall, within 90 days of August 26, 2013, complete a review of all
regions to prioritize them based on the anticipated timing of the need for
investment in transmission facilities, distribution facilities or both. Every 12
months following August 26, 2013, the transmitter shall review the prioritization of
regions and revise it as required to reflect emerging needs in the regions. The
transmitter shall maintain a priority list, post it on its website and update it as
required to reflect any changes in prioritization.

3C.4.3 A transmitter shall, within 10 days of completing a review referred to in section

3C.4.2:

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(a) notify the licensed distributors and licensed transmitters within a region
regarding whether they need to be involved in regional planning for the
region; and

(b) provide a report to the OPA identifying whether regional planning is

required for each region and, where it is required, the identity of the
licensed distributors and licensed transmitters in the region that need to be
involved in regional planning for the region.

3C.4.4 A transmitter shall undertake a needs assessments for each region in

accordance with the priority list referred to in section 3C.4.2. Within four years of
August 26, 2013, the transmitter shall complete a needs assessment for all
regions, and complete a Regional Infrastructure Plan for each region where one
is required.

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4. STANDARDS OF BUSINESS PRACTICE AND CONDUCT

4.1 GENERAL REQUIREMENTS

4.1.1 Subject to section 4.1.2, a transmitter shall connect a customer’s facilities

and shall offer and provide transmission services to a customer subject to
that customer entering into or having a connection agreement with the
transmitter. Such connection agreement shall be in the form set out in the
applicable version of the connection agreement set out in Appendix 1.
Where the customer is an unlicensed transmitter, the version of the
connection agreement set out in Appendix 1 to be used shall be determined
based on the nature of the facility that is connected to the unlicensed
transmitter’s transmission system. Where both a generation facility and a
load facility are connected to the unlicensed transmitter’s transmission
system, this may require two connection agreements.

4.1.2 A transmitter may not enter into a connection agreement on terms and
conditions other than those set forth in the applicable version of the
connection agreement set out in Appendix 1 or amend the terms and
conditions of a connection agreement relative to the terms and conditions set
forth in the applicable version of the connection agreement set out in
Appendix 1 except as expressly contemplated in the applicable version of the
connection agreement set out in Appendix 1 or with the prior approval of the
Board.

4.1.3 Where a transmitter does not have a connection agreement with a customer
whose facilities were connected to the transmitter’s transmission system prior
to the Code revision date, the transmitter shall be bound by the applicable
version of the connection agreement set out in Appendix 1 in relation to that
customer and shall be permitted to consider that customer’s continued
acceptance of transmission service as acceptance by that customer of all of
the terms and conditions of the connection agreement in the form set out in
the applicable version of the connection agreement set out in Appendix 1.

4.1.4 A transmitter shall ensure that all connections to its transmission system are
made by it with due regard for the safety of the transmitter’s employees and
the public.

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4.1.5 A transmitter shall provide customers and any neighbouring Ontario

transmitter with all necessary information that is in the possession of or
reasonably available to the transmitter to enable the transmitter to comply
with its obligations under this Code, including the information specified in
Appendix 3.

4.1.6 Except as may be required by section 4.1.1 in relation to a customer that is

an unlicensed transmitter, a transmitter may not require more than one
connection agreement from a customer whose facilities will be or are
connected either at a single site or at multiple sites or service territories that
are geographically contiguous. A transmitter shall require a separate
connection agreement for each facility that a customer may have at
geographically noncontiguous sites or service territories.

4.2 TRANSMISSION SERVICE CHARGES

4.2.1 A transmitter shall maintain and make available to all customers a list of its
transmission services and the rates or charges approved by the Board for
those transmission services.

4.2.2 No transmitter shall charge a customer for any transmission service unless
the charge has been approved by the Board.

4.2.3 A transmitter shall not charge a customer for any transmission services in
relation to any reduction in that customer's load that the customer has
demonstrated to the reasonable satisfaction of the transmitter (such as by
means of an energy study or audit) has resulted from embedded renewable
generation (determined in accordance with section 11.1), energy
conservation, energy efficiency or load management activities, except in
accordance with the transmitter’s Rate Order.

4.2.4 A transmitter shall not impose or enforce a minimum payment obligation on

any customer, except in accordance with this Code or a Rate Order.

4.3 FACILITIES STANDARDS

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4.3.1 A transmitter shall ensure that its transmission facilities:

(a) meet all applicable requirements of the Ontario Electrical Safety Authority;
(b) conform to applicable industry standards, including those of the Canadian
Standards Association, the Institute of Electrical and Electronic Engineers,
the American National Standards Institute, and the International
Electrotechnical Commission;
(c) are designed and constructed in accordance with the instruments and
standards referred to in section 5.1.2; and
(d) comply with the basic general performance standards and technical
requirements for facilities that are set out in this Code, including Appendix
2.

4.3.2 The basic general performance standards and minimum technical

requirements for facilities, except facilities deemed compliant under section
4.6.1, are set out in this Code, including Appendix 2. A transmitter shall
provide the appropriate technical parameters to assist a customer in
designing its facilities so that they are compliant with those basic general
performance standards.

4.3.3 A transmitter may participate in the commissioning, inspecting, and testing of

customer-owned connection facilities to ensure that facilities connected to its
transmission system will not materially reduce or adversely affect the
reliability of its transmission system. The transmitter shall recover its
reasonable costs of participating in the commissioning, inspection or testing
of the customer-owned connection facilities from the customer.

4.3.4 Where section 4.3.3 applies, the commissioning, inspection or testing of the
customer’s facilities shall be conducted at a time that is mutually agreed by
the customer and the transmitter. If the commissioning, inspection or testing
is required to be rescheduled at the request of the transmitter or by reason of
the transmitter’s failure to attend, the transmitter shall, if so requested by the
customer, pay all reasonable costs incurred by the customer in respect of the
rescheduling of the commissioning, inspection or testing activity. If the
commissioning, inspection or testing is required to be rescheduled at the
request of the customer or by reason of the customer’s failure to attend, the
transmitter may recover from the customer the reasonable costs incurred by

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the transmitter in respect of the rescheduling of the commissioning,

inspection or testing activity.

4.4 OPERATIONAL STANDARDS AND REPORTING PROTOCOL

4.4.1 A transmitter shall take reasonable steps to ensure that all facilities
connected to its transmission system are operated and maintained in
accordance with the requirements of this Code and all connection
agreements.

4.4.2 Upon request by a customer or a neighbouring Ontario transmitter, a

transmitter shall provide the fault levels at all relevant connection points.

4.4.3 A transmitter shall promptly report to a customer or a neighbouring Ontario

transmitter any changes in the transmitter's transmission facilities, or in the
facilities of another customer or neighbouring Ontario transmitter if known,
that could materially affect the transmission services provided to that
customer or neighbouring Ontario transmitter.

4.5 PERFORMANCE STANDARDS

4.5.1 A transmitter shall develop performance standards that apply at the customer
delivery point level and that:

(a) reflect typical transmission system configurations that take into account
the historical development of the transmitter’s transmission system at the
customer delivery point level;
(b) reflect historical performance at the customer delivery point level;
(c) are, where applicable, consistent with the comparable performance
standards applicable to all delivery points throughout the transmitter’s
transmission system;
(d) establish acceptable bands of performance at the customer delivery point
level for transmission system configurations, geographic area, load, and
capacity levels;
(e) establish appropriate triggering events to be used to initiate technical and
economic evaluations by the transmitter and its customers regarding

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performance standards at the customer delivery point level, as well as the

circumstances in which any such triggering event will not require the
initiation of a technical or economic evaluation;
(f) establish the steps to be taken based on the results of any evaluation that
has been so triggered, as well as the circumstances in which such steps
need not be taken; and
(g) establish any circumstances in which the performance standards will not
apply.

4.5.2 To the extent that it has not already done so prior to the Code revision date,
a transmitter shall file the performance standards referred to in section 4.5.1
for the Board’s approval within one year of the Code revision date. A
transmitter shall also file any material amendments to those performance
standards for the Board’s approval. The transmitter may not give effect to
such performance standards or any material amendments thereto until the
performance standards or amendments have been approved by the Board or
amended by the Board under section 4.5.3.

4.5.3 The Board may, on application or on its own motion, amend a transmitter’s
performance standards and any amendments thereto that have previously
been approved by the Board under section 4.5.2 or 4.5.4 or amended by the
Board under this section 4.5.3.

4.5.4 Where, prior to the Code revision date, a transmitter had filed its
performance standards with the Board and such performance standards do
not contain all of the material required by section 4.5.1, the transmitter shall
file the missing material within one year of the Code revision date. The Board
may make a decision regarding the incomplete performance standards
pending the filing of the missing material.

4.5.5 A transmitter shall publish on its website its Board-approved performance

standards referred to in section 4.5.1, and shall make those performance
standards available upon request.

4.5.6 A transmitter’s performance standards that were approved by the Board, in

whole or in part, prior to the Code revision date shall be deemed to have
been so approved by the Board under this section 4.5.

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4.6 COMPLIANCE OF FACILITIES WITH STANDARDS

4.6.1 All facilities that came into service, were procured or were ordered prior to
May 1, 2002 are deemed to be in compliance with the performance
standards and technical requirements contained in this Code, including
Appendix 2.

4.6.2 A transmitter may require that customer facilities that have been deemed
compliant under section 4.6.1 be brought into actual compliance with the
performance standards or technical requirements set out in this Code,
including Appendix 2, within a specified time period where the transmitter has
identified that:

(a) there is a material deterioration in the reliability of its transmission system

resulting from the performance of the deemed compliant facilities;
(b) there are material negative impacts on another customer's or on a
neighbouring Ontario transmitter’s power quality resulting from the
performance of the deemed compliant facilities; or
(c) there is a material increase in capacity or load at the site where the
deemed compliant facilities are located.

4.6.3 A transmitter may not act in accordance with section 4.6.2 until the
transmitter has developed rules and procedures for requiring customer
facilities to be brought into actual compliance and those rules and
procedures have been approved by the Board. A transmitter may not give
effect to a material amendment to such rules and procedures until the
amendment has been approved by the Board or made by the Board under
section 4.6.4.

4.6.4 The Board may, on application or on its own motion, amend a transmitter’s
rules and procedures and any amendments thereto that have been
previously approved by the Board under section 4.6.3 or amended by the
Board under this section 4.6.4.

4.6.5 If a transmitter's transmission facilities that have been deemed compliant

under section 4.6.1 are considered by the transmitter or a customer to be

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causing any of the effects referred to in sections 4.6.2(a) to 4.6.2(c), the

transmitter shall bring those transmission facilities into actual compliance.

4.6.6 A transmitter shall publish on its website its Board-approved rules and
procedures referred to in section 4.6.3, and shall make those rules and
procedures available upon request.

4.6.7 A transmitter’s rules and procedures referred to in section 4.6.3 that were
approved by the Board, in whole or in part, prior to the Code revision date
shall be deemed to have been so approved by the Board under this section
4.6.

4.7 CONFIDENTIALITY

4.7.1 Subject to section 4.7.2, a transmitter shall not, in performing its obligations
or exercising its rights under this Code or under any of the transmitter’s
procedures or performance standards referred to in this Code, disclose
confidential information relating to a customer or a neighbouring Ontario
transmitter to another person without the consent of the customer or
neighbouring Ontario transmitter to whom the confidential information relates.
Where such consent cannot be obtained, the transmitter may request
guidance from the Board.

4.7.2 Nothing in section 4.7.1 shall prevent the disclosure of confidential

information by a transmitter:

(a) where required under this Code, the Market Rules or the transmitter’s
licence;
(b) where required by law or regulatory requirements;
(c) where required by order of a government, government agency or
regulatory body or agency having jurisdiction;
(d) if required in connection with legal proceedings, arbitration or any expert
determination relating to the subject matter of this Code, or for the
purpose of advising the transmitter in relation thereto;
(e) as may be required to enable the transmitter to fulfill its obligations to any
reliability organization;

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(f) where permitted by the applicable connection agreement or the applicable

agreement referred to in section 6.8.1; or
(g) as may be required in an emergency or to prevent or minimize the effect
of an emergency.

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5. REQUIREMENTS FOR OPERATIONS AND MAINTENANCE

5.1 DAY-TO-DAY OPERATIONS

5.1.1 A transmitter shall ensure that the operation and maintenance of its
transmission facilities are performed only by persons qualified to do so.

5.1.2 A transmitter shall operate and maintain its transmission facilities in

compliance with this Code, its licence, its operating agreement with the
IESO, the Market Rules, all connection agreements, good utility practice, the
standards of all applicable reliability organizations and any applicable law.

5.2 FORCED OUTAGES

5.2.1 When a forced outage of a transmitter’s transmission facilities adversely

affects any customer facilities, the transmitter shall follow the procedures set
out in the relevant sections of the applicable connection agreement.

5.2.2 When a forced outage of a transmitter’s transmission facilities adversely

affects the facilities of a neighbouring Ontario transmitter, the transmitter
shall follow the procedures set out in the relevant sections of the applicable
agreement referred to in section 6.8.1.

5.3 SCHEDULING OF PLANNED WORK

5.3.1 A transmitter shall follow the procedures for the scheduling of planned work
which are set out in its connection agreements and in any agreements
referred to in section 6.8.1.

5.3.2 A transmitter shall coordinate outages arising from planned work scheduled
by a customer or a neighbouring Ontario transmitter that directly affect the
transmitter's transmission facilities.

5.3.3 A transmitter shall, to the best of its ability, obtain from its customers and
from any neighbouring Ontario transmitters their anticipated planned outages
for the upcoming year by October 1st of each year.

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5.4 EMERGENCY OPERATIONS

5.4.1 During an emergency or in order to prevent or minimize the effects of an

emergency, a transmitter may take whatever immediate action it deems
necessary to ensure public safety or to safeguard life, property or the
environment without first notifying any other person. Without limiting the
generality of the foregoing, during an emergency or in order to prevent or
minimize the effects of an emergency a transmitter may:
(a) order the switching of equipment;
(b) disconnect the facilities of a customer or of a neighbouring Ontario
transmitter; or
(c) require that a customer or a neighbouring Ontario transmitter disconnect
its facilities,

in accordance with the applicable connection agreement or agreement referred

to in section 6.8.1, as the case may be.

5.4.2 A transmitter that takes action under section 5.4.1 shall promptly report the
action taken and the reason for it to all affected customers and neighbouring
Ontario transmitters.

5.4.3 A transmitter shall implement load shedding as directed by the IESO and as
specified in its connection agreements.

5.4.4 During an emergency or in order to prevent or minimize the effects of an

emergency, a transmitter may interrupt supply to a customer or a
neighbouring Ontario transmitter to protect the stability, reliability, or integrity
of the transmitter’s transmission facilities, or to maintain the availability of its
transmission facilities. The transmitter shall advise all affected customers
and neighbouring Ontario transmitters as soon as possible of the
transmitter’s transmission system's emergency status and of when to expect
the resumption of normal operations and the reconnection of their facilities to
the transmission system.

5.4.5 When a transmitter's transmission facilities return to normal operation

following an emergency, the transmitter shall notify each affected customer
and neighbouring Ontario transmitter as soon as possible that it may
reconnect its facilities.

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6. CUSTOMER CONNECTIONS

6.1 GENERAL REQUIREMENTS

6.1.1 A transmitter shall design and construct its new or modified connection
facilities on a timely basis and in accordance with the connection procedures
referred to in section 6.1.3 and all applicable standards and instruments
referred to in section 5.1.2.

6.1.2 A transmitter shall ensure that new or modified connections to its

transmission system are made in accordance with the cost responsibility
principles set out in this Code and that they:

(a) do not materially reduce the reliability or performance of its transmission

system; and
(b) are constructed with such mitigation measures as may be required so that
no new available fault current level referred to in section 6.4.4 exceeds the
maximum allowable fault levels set out in Appendix 2 if this would have an
adverse effect on any person.

Where the new available fault current level would exceed the maximum allowable
fault level set out in Appendix 2 and would have an adverse effect on a person
the transmitter may, as an alternative to satisfying the requirements of section
6.1.2(b), make suitable financial arrangements agreeable to the connecting
customer and all affected persons to mitigate the economic or financial impact of
allowing the new available fault current level to exceed the maximum allowable
fault level set out in Appendix 2. Such arrangements shall be consistent with the
cost responsibility principles set out in the Code.

6.1.3 A transmitter shall publish on its website its Board-approved connection

procedures for processing requests to connect to its transmission system or
to modify existing connections, and shall make those connection procedures
available upon request. A transmitter’s connection procedures shall be
consistent with this Code and shall be consistent with and complementary to
the Market Rules and the IESO's market procedures as they relate to
connection.

6.1.4 A transmitter’s connection procedures referred to in section 6.1.3 shall

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include the following:

(a) a procedure for determining the total normal supply capacity of a

connection facility as required by section 6.2.7;
(b) an available capacity procedure that complies with section 6.2.11;
(c) a security deposit procedure that complies with section 6.3.11;
(d) a customer impact assessment procedure that complies with section
6.4.1;
(e) an economic evaluation procedure that complies with section 6.5.2;
(f) a contestability procedure that complies with section 6.6.2;
(g) a reconnection procedure that complies with section 6.10.3;
(h) a dispute resolution procedure that complies with section 12.1.1;
(i) an obligation on the transmitter to provide a customer with the most recent
version of the Regional Infrastructure Plan or Integrated Regional
Resource Plan referred to in section 3C, if an, that covers the applicable
portion of its transmission system;
(j) a schedule of all charges and fees that may be charged by the transmitter
and that are not covered by the transmitter’s Rate Order; and
(k) reasonable timelines within which activities covered by the procedures
referred to in paragraphs (a) to (g) and (i) must be completed by the
transmitter or the customer, as applicable, including typical construction
times for facilities.

6.1.5 Intentionally left blank.

6.1.6 The Board may, on application or on its own motion, amend a transmitter’s
connection procedures and any amendments thereto that have been
previously approved or amended by the Board under this section 6.1.6.

6.1.7 Intentionally left blank.

6.1.8 Until such time as a transmitter’s connection procedures have been

approved by the Board, the transmitter shall process requests for connection
and deal with the other matters listed in section 6.1.4 in accordance with all
applicable provisions of this Code and otherwise in a manner that is

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reasonable and consistent with this Code, the Act, the Electricity Act and its
licence. A dispute between a transmitter and a customer that arises in
relation to any matter listed in section 6.1.4 prior to the approval by the Board
of the transmitter’s connection procedures may be submitted to the Board for
determination where either the transmitter or the customer allege that the
other is:

(a) seeking to impose a term or condition that is inconsistent with or contrary

to the Act, the Electricity Act, a party’s licence or this Code; or
(b) refusing to include a term or condition that is required to give effect to this
Code.

6.1.9 A transmitter’s connection procedures shall not unjustly discriminate among

customers or unduly restrict the ability of any person to connect its facilities
to the transmitter’s transmission system.

6.1.10 A transmitter shall not connect a customer’s facilities or any new, modified or
replacement customer facilities unless any required connection authorization,
certificate of inspection or other applicable approval or authorization has
been issued or given by the Ontario Electrical Safety Authority in relation to
such facilities. A transmitter may require, as a condition of connecting a
customer’s facilities or any new, modified or replacement customer facilities,
that the customer provide it with the same technical information provided to
the IESO during any connection assessment and facility registration
processes associated with the customer’s facilities or any new, modified or
replacement customer facilities. The transmitter shall require that such
information be provided in the form outlined in the applicable sections of the
IESO’s public website.

6.1.11 A transmitter may require, as a condition of connecting a customer’s facilities

or any new, modified or replacement customer facilities, that the customer
provide it with test certificates certifying that the customer’s facilities have
passed all relevant tests and comply with all applicable instruments and
standards referred to in section 5.1.2, comply with all applicable instruments
and standards referred to in section 5.1.2, including any certificates of
inspection or other applicable approvals or authorizations that may be
required by the Ontario Electrical Safety Authority.

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6.1.12 A transmitter shall provide to a customer such technical parameters as may

be required to assist the customer in ensuring that the design of the
customer’s facilities or of any new, modified or replacement customer
facilities is consistent with the requirements applicable to the transmitter’s
transmission system.

6.1.13 A transmitter shall cooperate with a customer to ensure that modeling data
that may be required for the planning, design and operation of connections
are complete and accurate. The transmitter shall conduct, or may require
that the customer conduct, such tests as may be required where the
transmitter believes on reasonable grounds that the accuracy of such data is
in question. Where the tests are conducted by the transmitter:

(a) the transmitter may require that the customer reimburse the transmitter for
the costs and expenses reasonably incurred by the transmitter in
conducting the tests;

(b) the tests shall be conducted at a time that is mutually agreed by the
customer and the transmitter; and

(c) the transmitter shall promptly report the results of such tests to the
customer.

If a test is required to be rescheduled at the request of the transmitter or by

reason of the transmitter’s failure to attend, the transmitter shall, if so requested
by the customer, pay all reasonable costs incurred by the customer in respect of
the rescheduling of the test. If a test is required to be rescheduled at the request
of the customer or by reason of the customer’s failure to attend, the transmitter
may recover from the customer all reasonable costs incurred by the transmitter in
respect of the rescheduling of the test.

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6.2 AVAILABLE CAPACITY

6.2.1 A transmitter shall not assign available capacity on network facilities. A

transmitter shall not assign available capacity on its connection facilities for
back-up purposes.

6.2.2 A load customer’s assigned capacity in relation to a connection facility shall

be equal to the aggregate of:

(a) the customer's highest rolling three-month average peak load under
normal operating conditions:
i. in the most recent five years, where the determination of the
customer’s assigned capacity is made after May 1, 2007, or
ii. since May 1, 2002, where the determination of the customer’s
assigned capacity is made on or before May 1, 2007; and
(b) any available capacity that has been assigned to the customer and that
has not yet been taken up by the customer nor cancelled by the
transmitter under section 6.2.19.

If a load customer’s facility has been connected to the connection facility for a
period of less than five years, for purposes of determining the customer’s
assigned capacity the transmitter shall use the customer's highest rolling three-
month average peak load in the year or years during which the customer’s facility
has been connected to the connection facility. Where a transmitter reasonably
believes that a customer is manipulating its load for the purpose of the
determination of its assigned capacity, the transmitter may request that the Board
review and re-determine that assigned capacity.

6.2.3 Where an economic evaluation, including an economic evaluation referred to

in section 6.3.9 or 6.3.17A,was conducted by a transmitter for a load
customer in relation to a connection facility on the basis of a load forecast,
that customer’s contracted capacity shall, during the economic evaluation
period to which the economic evaluation relates, be equal to the load
identified in that load forecast or in any subsequent forecast used for
purposes of giving effect to the true-up provisions of section 6.5.

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6.2.4 A load customer with contracted capacity on a connection facility shall, in any
year, be entitled to capacity in an amount that is equal to:

(a) the amount of capacity for that year as specified in the applicable load
forecast referred to in section 6.2.3; or

(b) the customer’s assigned capacity for that year,

whichever is greater.

6.2.5 Notwithstanding any assignments of available capacity that a transmitter may

make under this section 6.2, the transmitter shall ensure that there is
sufficient available capacity on the transmitter’s connection facility to satisfy:

(a) the capacity entitlement of each load customer on that connection facility,
determined in accordance with section 6.2.4; and
(b) the assigned capacity and the contracted capacity of all load customers in
relation to that connection facility at the relevant time.

The transmitter shall conduct an expansion study where the transmitter considers
it necessary to ensure that it can meet this obligation.

6.2.6 A transmitter shall from time to time as required determine the total assigned
capacity on a connection facility. For that purpose, the total assigned
capacity shall be the aggregate of the assigned capacity of each load
customer whose facilities are then served by the connection facility. In
making this determination, the transmitter shall take into account the normal
size and shape of the load of each load customer served by the connection
facility, excluding anomalous situations such as reconfigurations that may be
required by the IESO, temporary load transfers, or emergencies.

6.2.7 A transmitter shall from time to time as required determine the available
capacity on a connection facility. For that purpose, the available capacity
shall be determined by subtracting the total assigned capacity on that
connection facility, determined in accordance with section 6.2.6, from the
total normal supply capacity for that connection facility. The transmitter shall
establish in its connection procedures referred to in section 6.1.4 and
implement a procedure to determine the total normal supply capacity of a
transformation connection facility and a line connection facility.

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6.2.8 Where a load customer requests an assignment of capacity on a connection

facility, the transmitter shall determine the available capacity of that
connection facility.

6.2.9 A transmitter shall from time to time as required monitor the available
capacity on its connection facilities.

6.2.10 Subject to section 6.2.12(e), a transmitter shall assign available capacity on a

connection facility to load customers on a first-come first-served basis. A
transmitter shall not assign capacity to a load customer unless the customer
has demonstrated its need for available capacity in accordance with the
requirements of the transmitter’s available capacity procedure referred to in
section 6.2.12(d). This obligation shall apply whether or not implementation
of the available capacity procedure is required by section 6.2.11.

6.2.11 A transmitter shall establish an available capacity procedure in its connection

procedures referred to in section 6.1.4. The transmitter shall implement the
available capacity procedure when:

(a) the available capacity on a connection facility is reduced to 25% or less of

the total normal supply capacity of that connection facility; or
(b) a load customer requests supply capacity on a connection facility that
would reduce the available capacity on that connection facility to 25% or
less of the total normal supply capacity of that connection facility.

6.2.12 The available capacity procedure referred to in section 6.2.11 shall include
provisions that:

(a) specify how load customers will be notified that implementation of the
available capacity procedure has been triggered as required by section
6.2.11;
(b) set out how load customers may apply for available capacity in relation to
the applicable connection facility;
(c) establish a reasonable amount of time for a load customer to make such
an application;
(d) set out how a load customer demonstrates its need for available capacity
on the applicable connection facility;

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(e) where there is more than one application for available capacity on the
applicable connection facility based on demonstrated need, establish that
available capacity will be assigned to the relevant load customers in
proportion to their respective needs; and
(f) establish the circumstances under which an expansion study will be
carried out.

6.2.13 Where a transmitter assigns capacity on a connection facility to itself (in its
capacity as a customer) or to a load customer that is an affiliate of the
transmitter, the transmitter shall give notice of such assignment to all other
customers served by that connection facility regardless of whether such
assignment triggers implementation of the available capacity procedure
under section 6.2.11.

6.2.14 When a transmitter proposes to carry out an expansion study under section
6.2.5 or 6.2.12(f) in relation to the provision of new supply capacity by means
of an increase in the capacity of an existing connection facility or the
construction of a new connection facility, the transmitter shall notify all load
customers served or that the transmitter then knows are expected to be
served by the existing or the proposed new connection facility. The
transmitter shall also post on its website a notice of its proposal to carry out
such an expansion study and of the right of load customers served by
existing adjacent connection facilities to apply to reconfigure their respective
load as described in section 6.2.15.

6.2.15 Where a new connection facility is proposed under section 6.2.14, the
transmitter shall use best efforts to notify all load customers served by
existing connection facilities adjacent to the proposed new connection facility.
Such notice shall advise each load customer that it may apply to the
transmitter to reconfigure load representing its assigned capacity or its
contracted capacity to the proposed new connection facility. Where a load
customer makes such an application, the transmitter shall negotiate in good
faith with the customer to determine the terms and conditions that will govern
the reconfiguration. Where the transmitter receives applications from load
customers in circumstances where the applications cannot all be
accommodated by the transmitter, the transmitter shall nonetheless negotiate
in good faith with all such customers to determine the terms and conditions
that will govern the reconfiguration, and shall then reconfigure the load of

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each load customer with whom it has successfully negotiated such terms and
conditions in proportion to its assigned capacity or contracted capacity.

6.2.16 Upon completion of an expansion study, the transmitter shall advise all
affected load customers of the available capacity on all relevant existing and
new connection facilities before and after the expansion.

6.2.17 Where available capacity is assigned to a load customer in relation to a

connection facility and the customer has a connection agreement, the
contracted capacity and load shape shall be specified in the connection
agreement.

6.2.18 Subject to section 6.2.19, available capacity that has been assigned to a load
customer in relation to a connection facility may not, without the consent of
the customer, be reassigned by a transmitter nor be reassigned by the
customer except in connection with a change in ownership of the facility to
which the assigned capacity relates. A transmitter shall, upon request,
reassign assigned capacity as required to reflect such change in ownership.

6.2.19 Subject to section 6.2.20, where available capacity on a connection facility

has been assigned to a load customer by a transmitter, and that capacity has
not been taken up by the customer within one year of the assignment (except
where that capacity is included in a load forecast referred to in section 6.2.3),
the transmitter shall:

(a) cancel the assignment;

(b) treat such capacity as available capacity; and
(c) notify all other load customers whose facilities are served by that
connection facility of the cancellation of the assignment.

The one-year period continues to run regardless of any change in the ownership
of the facility to which the assigned capacity relates or of any reassignment of the
assigned capacity as a result of that change in ownership.

6.2.20 A load customer may request that the transmitter extend the one-year period
referred to in section 6.2.19 where circumstances warrant, such as where the
customer is constructing new facilities that require more than one year to
come into service. A transmitter shall not unreasonably deny such a request.

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Where the transmitter denies such a request, the customer may apply to the
Board for an order requiring the transmitter to extend the one-year period.

6.2.21 Where a transmitter extends the one-year period referred to in section 6.2.19
in relation to itself (in its capacity as a customer) or a load customer that is an
affiliate of the transmitter, the transmitter shall give notice of such extension
to all other load customers served by the applicable connection facility.

6.2.22 Upon request, a transmitter shall assign available capacity on a transmitter-

owned connection facility to serve an existing load customer’s new load
unless the transmitter can demonstrate that the available capacity will not
meet the customer’s needs.

6.2.23 When a load customer provides its own connection facility to serve new load,
the transmitter shall not assign capacity on the relevant transmitter-owned
connection facility to that customer in relation to that new load.

6.2.24 Note: Section 6.2.24 revoked by amendment, effective August 26, 2013.

6.2.25 Note: Section 6.2.25 revoked by amendment, effective August 26, 2013.

6.2.26 Subject to section 6.2.27, a transmitter shall advise a load customer of the
available capacity on a specific connection facility, upon request.

6.2.27 Without limiting the generality of section 4.7.1, in providing information with
respect to available capacity to any person, a transmitter shall protect
confidential information about any customer. Subject to section 6.2.16,
before disclosing the available capacity on a connection facility that serves
only one customer, the transmitter shall obtain the consent of that customer.
Where such consent cannot be obtained, the transmitter may request
guidance from the Board.

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6.3 COST RESPONSIBILITY FOR NEW AND MODIFIED CONNECTIONS

6.3.1 Where a load customer elects to be served by transmitter-owned connection

facilities, a transmitter shall require a capital contribution from the load
customer to cover the cost of a connection facility required to meet the load
customer’s needs. A capital contribution may only be required to the extent
that the cost of the connection facility is not recoverable in connection rate
revenues. To that end, the transmitter shall include in the economic
evaluation the relevant annual connection rate revenues over the applicable
economic evaluation period that are derived from that part of the customer’s
new load that exceeds the total normal supply capacity of any connection
facility already serving the customer and that will be served by the new
connection facility. The transmitter shall calculate any capital contribution to
be made by the load customer using the economic evaluation methodology
set out in section 6.5.

6.3.2 Where a transmitter has to modify a transmitter-owned connection facility to

meet a load customer's needs, the transmitter shall require the load customer
to make a capital contribution to cover the cost of the modification. A capital
contribution may only be required to the extent that the cost of the
modification to the connection facility is not recoverable in connection rate
revenues. To that end, the transmitter shall include in the economic
evaluation the relevant annual connection rate revenues over the applicable
economic evaluation period that are derived from that part of the customer’s
new load that exceeds the total normal supply capacity of any connection
facility already serving the customer and that will be served by the modified
connection facility. The transmitter shall calculate any capital contribution to
be made by the load customer using the economic evaluation methodology
set out in section 6.5.

6.3.3 Except where a transmitter has to modify a transmitter-owned connection

facility to meet the needs of one or more generation customers or is required
to construct an enabler facility, the transmitter shall require a generator
customer to provide its own dedicated connection facilities and any
equipment for monitoring and testing that is required by the transmitter to be
installed on the customer side of the connection with the transmitter’s
transmission system.

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6.3.4 Where a transmitter has to modify a transmitter-owned connection facility to

meet the needs of one or more generator customers or is required to
construct an enabler facility, the transmitter shall require the applicable
generator customer or customers to make a capital contribution to cover the
cost of the modified connection facility or of the enabler facility, calculated in
accordance with the economic evaluation methodology set out in section 6.5.

6.3.5 A transmitter shall not require any customer to make a capital contribution for
the construction of or modifications to the transmitter’s network facilities that
may be required to accommodate a new or modified connection. If
exceptional circumstances exist so as to reasonably require a customer to
make a capital contribution for network construction or modifications, the
transmitter or any other interested person may apply to the Board for
direction. A transmitter:

(a) shall notify the customer as soon as possible of the transmitter’s

intention to apply to the Board for direction under this section 6.3.5; and
(b) shall not, without the prior written consent of the customer, refuse to
commence or diligently pursue construction of or modifications to its
network facilities pending direction from the Board under this section
6.3.5 provided that the customer has provided a security deposit to the
transmitter in accordance with section 6.3.10. Where the customer
requests that the transmitter not commence with construction pending
direction from the Board, the transmitter shall promptly return to the
customer any outstanding security deposit related to the construction.

6.3.6 Note: Section 6.3.6 revoked by amendment, effective August 26, 2013.

6.3.7 A transmitter shall provide connection facilities that have a capacity sufficient
to meet the needs of the applicable customer, subject to facilities standards
and good utility practice.

6.3.8 A transmitter shall not require a customer to make a capital contribution for
capacity added by the transmitter to a transmitter-owned connection facility in
anticipation of future load growth not attributable to that customer or in
anticipation of the future capacity requirements of other generator customers.
For this purpose, where the transmitter-owned connection facility is an
enabler facility, the capacity requirements of the renewable generation

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facilities expected to connect to the enabler facility shall not be considered as

future capacity requirements.

6.3.9 Where a transmitter is, at the time at which it is constructing a connection

facility for a customer, aware of another future customer that will need
capacity within five years of the construction of the connection facility, the
transmitter shall add that capacity to the connection facility at the time of
construction, provided that it obtains a security deposit in a form referred to in
section 6.3.11 from that future customer to cover the cost of that additional
capacity. The amount of the capital contribution to be obtained from the
current customer and the amount or value of the security deposit to be
collected from the future customer shall be determined using the economic
evaluation methodology set out in section 6.5, the load forecasts of both
customers and the methodology for attributing that capital contribution as
described in section 6.3.14, 6.3.14A, 6.3.15 or 6.3.16. At the time of
connection of the future customer’s facilities, the transmitter shall where
required redo the original economic evaluation using the same inputs except
for any revised load forecast provided by the future customer. This will
determine the amount of capital contribution to be collected from the future
customer. Where the security deposit is in the form of cash, the transmitter
shall return the security deposit to the future customer at the time of
connection of its facilities to the connection facility, together with interest at
the rate referred to in section 6.3.11, less the amount of the future customer’s
capital contribution. Where the security deposit is in a form other than cash,
the transmitter shall return the security deposit to the future customer upon
receipt of the customer’s capital contribution.

6.3.10 Where a transmitter needs to construct new or modified network or

connection facilities as a result of a connection application from a customer,
the transmitter may require a reasonable security deposit in a form referred
to in section 6.3.11 from the customer, taking into account the size of the
new load or generator output, as the case may be. Where the security
deposit is in the form of cash, the transmitter shall return the security deposit
to the customer, together with interest at the rate referred to in section
6.3.11, less the amount of any capital contribution owed by the customer,
once the customer’s facilities are connected to the transmitter’s transmission
facilities. Where the security deposit is in a form other than cash, the
transmitter shall return the security deposit to the customer once the

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customer’s facilities are connected to the transmitter's transmission facilities

and any capital contribution has been paid.

6.3.10A Despite section 6.3.10, a transmitter shall not require a security deposit in
relation to the construction of an enabler facility.

6.3.11 A transmitter shall establish a security deposit procedure in its connection

procedures referred to in section 6.1.4. The security deposit procedure shall
include the following:

(a) provisions that allow a customer to provide the security deposit in the
form of cash, letter of credit or surety bond, as may be selected by the
customer, or such other form as the customer and the transmitter may
agree;
(b) provisions stipulating that any interest to be paid by the transmitter upon
returning a security deposit that is in the form of cash shall be paid at the
following rates:
i. for the period between the date on which the security deposit
was provided by the customer and the date on which the security
deposit is required to be returned by the transmitter, at the
average over the period of the prime lending rate set by the Bank
of Canada less two percent; and
ii. for the period after the date on which the security deposit is
required to be returned by the transmitter, at the prime lending
rate set by the Bank of Canada plus two percent; and
(c) a description of the circumstances under which the transmitter may keep
all or part of a security deposit. A transmitter shall be entitled to keep all
or a part of a security deposit that has been given in relation to the
construction or modification of connection or network facilities where the
customer subsequently fails to connect its facilities to the transmitter’s
new or modified facilities. A transmitter shall not otherwise retain a
security deposit given in relation to the construction or modification of
network facilities unless the Board has first determined under section
6.3.5 that exceptional circumstances exist so as to reasonably require the
customer to make a capital contribution for the construction or
modification of network facilities.

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6.3.12 Subject to section 6.3.18, for a single generator customer, a transmitter shall
attribute to that generator customer the cost of any required modification to a
transmitter-owned connection facility required to serve the rated peak output
of the generation facilities.

6.3.13 Subject to section 6.3.18, for a single load customer, a transmitter shall
attribute to that load customer the cost of any new transmitter-owned
connection facility or any modification to such connection facility required to
serve that part of the customer’s new load that exceeds the total normal
supply capacity of any connection facility already serving that customer, as
reasonably projected by the load forecast provided by the load customer or
by such modified load forecast as may be agreed by the load customer and
the transmitter.

6.3.14 Subject to section 6.3.18, where more than one generator customer triggers
the need for a modification to a transmitter-owned connection facility, a
transmitter shall attribute the cost of the modification to those generator
customers:
(a) in accordance with such methodology as may be agreed between the
transmitter and all such generator customers; or
(b) failing such agreement, in proportion to the rated peak output of their
respective generation facilities and, in the case of line connection
facilities, taking into account the length of line used by each generator
customer in proportion to the length of line being shared by the
customers.

6.3.14A Where a transmitter is required to construct an enabler facility, the

transmitter shall attribute the cost of the enabler facility, depreciated to the
time of connection, to generator customers connecting to the enabler facility
from time to time in proportion to the manufacturer’s total installed rated
capacity of their respective generation facilities at the time of connection
expressed as a percentage of the total capacity of the enabler facility. For
this purpose, the total capacity of the enabler facility shall be determined on
the basis of its capacity at the time at which the enabler facility comes into
service.

6.3.15 Subject to section 6.3.18, where more than one load customer triggers the
need for a new or modified transmitter-owned connection facility, a

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transmitter shall attribute the cost to those load customers:

(a) in accordance with such methodology as may be agreed between the

transmitter and all such load customers; or
(b) failing such agreement, in proportion to their respective non-coincident
incremental peak load requirements, as reasonably projected by the
load forecasts provided by each such load customer or by such
modified load forecast as may be agreed by such load customer and
the transmitter and, in the case of line connection facilities, taking into
account the length of line used by each load customer in proportion to
the length of line being shared by the customers.

6.3.16 Subject to section 6.3.18, for a new or modified transmitter-owned

connection facility that will serve a mix of load customers and generator
customers, a transmitter shall attribute the cost of the new connection facility
or modification to those customers based on their proportional benefit, which
the transmitter shall determine by considering such factors as the
incremental rated peak output of each generation facility, the non-coincident
incremental peak load requirements of each load customer, and the length of
line used by each customer in proportion to the length of line being shared by
the customers.

6.3.16A Despite section 6.3.16:

(a) a transmitter shall not attribute the cost of an enabler facility to a load
customer that connects to the enabler facility unless section 6.3.2
applies; and
(b) a transmitter shall attribute the cost of an enabler facility to generator
customers in accordance with section 6.3.14A.

6.3.17 Where a customer has made a capital contribution for the construction or
modification of a transmitter-owned connection facility other than an enabler
facility, and where that capital contribution includes the cost of capacity on
the connection facility in excess of the customer’s needs, the transmitter
shall provide a refund, calculated in accordance with section 6.3.17A, to the
customer as follows:

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(a) where the customer made the capital contribution before August 26,
2013, the refund shall be provided if that excess capacity is assigned to
another customer within five years of the date on which the connection
facility or modification to the connection facility comes into service; or
(b) where the customer makes the capital contribution on or after August 26,
2013, the refund shall be provided if that excess capacity is assigned to
another customer within fifteen years after the date on which the
connection facility or modification to the connection facility comes into
service.

Where such a refund is required, the transmitter shall require a financial

contribution from the subsequent customer to cover the amount of that
refund.

6.3.17A For the purposes of section 6.3.17, the transmitter shall determine the
amount of:

(a) the refund to the initial customer from the subsequent customer by
calculating a revised capital contribution amount using the prescribed
economic evaluation methodology set out in section 6.5 and the same
inputs as used in the original economic evaluation except for load (which
will be based on the actual load of the initial customer up to the time of
connection of the subsequent customer and a revised load forecast for
the remainder of the economic evaluation period) and revised attributed
cost (which will be determined using the methodology set out in section
6.3.14, 6.3.15 or 6.3.16, as applicable); and
(b) the financial contribution from the subsequent customer by calculating a
capital contribution amount using the prescribed economic evaluation
methodology set out in section 6.5 and the same inputs as used in the
original economic evaluation except for load (which will be based on the
subsequent customer’s load forecast for the remainder of the economic
evaluation period) and attributed cost (which will be determined using the
methodology set out in section 6.3.14, 6.3.15 or 6.3.16, as applicable).

6.3.18 Where one or more customers triggers the need for a new or modified
transmitter-owned connection facility and the IESO undertakes an
assessment at the request of a transmitter that confirms the new or modified
connection facility will also address a broader network system need, the

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transmitter shall determine the proportional benefit and the related

attribution of costs between the triggering customer(s), collectively, and the
network pool. The transmitter shall then attribute the collective triggering
customer costs to each triggering customer(s) in accordance with the
methodology set out in section 6.3.12, 6.3.13, 6.3.14, 6.3.15 or 6.3.16, as
applicable.

6.3.18A Where section 6.3.18 applies, the transmitter shall apply to the Board for
approval of the attribution of costs between the triggering customer(s) and
the network pool. Where the Board approves a different attribution of costs,
the transmitter shall recalculate the capital contribution to be made by the
triggering customer(s).

6.3.19 Where a distributor is required under this Code to provide a capital

contribution to a transmitter, the transmitter shall permit the capital
contribution to be provided in equal installments over a period of time not to
exceed five years unless a longer period is approved by the Board. Where a
distributor provides the capital contribution in installments, the transmitter
shall charge interest on the unpaid balance at the Board’s prescribed
construction work in progress (CWIP) rate which is updated quarterly and
published on the Board’s website. The interest charges shall accrue monthly
commencing on the date the connection asset goes into service and be paid
annually, as part of each installment payment.

6.3.20 For the purposes of section 3.6.1 of the Distribution System Code, the
transmitter shall, upon the request of a transmission-connected distributor,
calculate the capital contribution amount for each distributor and each
distribution-connected large load customer with a non-coincident peak
demand exceeding 5 MW that contributes to the need for a new or modified
transmitter-owned connection facility using the methodology and inputs
described in Appendix 5 of this Code. The transmitter shall calculate any
true-ups in respect of each capital contribution in accordance with the true-
up provisions of section 6.5.

6.4 CUSTOMER IMPACT ASSESSMENTS

6.4.1 A transmitter shall establish in its connection procedures referred to in

section 6.1.4 a customer impact assessment procedure to be used to assess

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the impact of proposed new or modified connections on existing customers.

The transmitter shall use best efforts to coordinate its customer impact
assessment procedure with the Market Rules and the IESO’s market
procedures as they relate to connection assessments and approvals.

6.4.2 A CIA shall indicate existing available fault current levels and any change in
those levels expected to be caused by a proposed new or modified
connection, for each affected customer.

6.4.3 A transmitter shall carry out a CIA for any proposed new or modified
connection where:

(a) the connection is one for which the IESO’s connection assessment and
approval process requires a system impact assessment; or
(b) the transmitter determines that the connection may have an impact on
existing customers.

Where the transmitter decides not to carry out a CIA for any proposed new
connection or modification that is not subject to the a system impact assessment,
the transmitter shall notify existing customers in the vicinity, advising them of the
proposed new connection or modification and of the transmitter's decision not to
carry out a CIA on the basis that no customer impact is expected.

6.4.4 A transmitter shall use the results of a CIA to provide each customer affected
by a proposed new or modified connection with a new available fault current
level in order to allow each customer to take, at its own expense, action to
upgrade its facilities as may be required to accommodate the new available
fault current level up to the maximum allowable fault levels set out in
Appendix 2.

6.4.5 A transmitter shall provide a copy of a CIA to each customer whose facilities
are located in the study area used for conducting the CIA and to the Ontario
Electrical Safety Authority. A transmitter shall also provide a copy of a CIA to
the IESO where the proposed new or modified connection that is the subject
of the CIA was the subject of a system impact assessment by the IESO.

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6.5 ECONOMIC EVALUATION OF NEW AND MODIFIED CONNECTIONS

GENERATOR CUSTOMERS

6.5.1 Where a transmitter modifies a transmitter-owned connection facility to meet

the needs of a generator customer, the transmitter shall require the generator
customer to pay the fully allocated cost of the minimum design required to
meet the customer’s needs. The transmitter shall include the capital cost of
equipment installed on transmitter-owned connection facilities by the
transmitter for monitoring the performance of the generation facility and for
verification testing of fault protection equipment associated with the
generation facility. If the generator customer elects to have verification
testing costs included in the economic evaluation rather than paying such
costs on an “as incurred” basis over time, the transmitter shall also include
the present value of the estimated cost of doing periodic verification testing of
its monitoring and testing equipment and, if necessary, of similar equipment
owned by the generator customer. The transmitter shall not include costs
associated with incremental operation and maintenance.

6.5.1A Where a transmitter constructs an enabler facility, the cost to be attributed to

generator customers under section 6.3.14A shall be the fully allocated cost of the
enabler facility. The transmitter shall include the capital cost of equipment
installed on transmitter-owned connection facilities by the transmitter for
monitoring the performance of the generation facilities and for verification testing
of fault protection equipment associated with the generation facilities. If any
generator customer elects to have verification testing costs included in the
economic evaluation rather than paying such costs on an “as incurred” basis over
time, the transmitter shall also include the present value of the estimated cost of
doing periodic verification testing of its monitoring and testing equipment and, if
necessary, of similar equipment owned by the generator customer. The
transmitter shall include the present value of the operation and maintenance
costs associated with an enabler facility.

LOAD CUSTOMERS

6.5.2 A transmitter shall establish in its connection procedures referred to in

section 6.1.4 and implement an economic evaluation procedure that sets out
how the transmitter will carry out an economic evaluation of a proposed new

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or modified connection of a load customer to determine what capital

contribution is to be made by the load customer. The economic evaluation
procedure shall:

(a) include the methodology that will be used by the transmitter in determining
the financial risk associated with a proposed connection of a load
customer, which methodology shall meet the requirements of and be
consistent with Appendix 4;
(b) provide that the economic evaluation period will be 5 years for a high risk
connection, 10 years for a medium-high risk connection, 15 years for a
medium-low risk connection, and 25 years for a low risk connection;
(c) be based on the discounted cash flow calculation set out in Appendix 5
using the forecast connection rate revenues from the connection facilities
and the fully allocated capital cost, operating and maintenance cost and
administrative cost of the minimum design required to meet the customer’s
needs. The costs shall include the transmitter's cost of transmitter-owned
equipment for monitoring and testing installed on connection facilities on
either side of the connection point, and the cost of carrying out verification
testing on that equipment;
(d) establish that the cost used in the economic evaluation is limited to the
advancement costs where the transmitter had planned a new or modified
connection facility and moves the planned date forward to accommodate a
customer;
(e) use a discount rate that is based on the transmitter's current deemed debt-
to-equity ratio, debt and preference share costs and Board-approved rate
of return on equity;
(f) require that discounting reflect the true timing of expenditures so that up-
front capital expenditures are treated as occurring at the beginning of the
first year of operation, and future capital expenditures, annual connection
rate revenues and average operation and maintenance costs will be
treated as occurring at the mid-point of the year in which they occur;
(g) take into account all relevant tax amounts, adjusted by any applicable
capital cost allowance;
(h) exclude network facility costs and network rate revenues;
(i) exclude historic revenues and sunk costs;

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(j) establish that the relevant connection rate revenues shall be the revenue
derived from that part of the load customer's new load that exceeds the
total normal supply capacity of any connection facility already serving that
customer and which will be served by a new or modified connection facility;
(k) require that the customer provide its load shape in such form and detail as
the transmitter may reasonably require; and
(l) provide for separate economic evaluations for transformation connection
facilities and line connection facilities.

The economic evaluation procedure may permit an initial calculation of a

customer’s capital contribution based on estimated costs, provided that where
this occurs the transmitter must subsequently recalculate the customer’s capital
contribution in accordance with paragraph (c) based on actual costs as soon as
these are known, and obtain from or credit the customer for any difference
between the two calculations. Such recalculated capital contribution shall
thereafter be used as the customer’s capital contribution for all purposes under
this Code.

Economic evaluation true-up calculations for load customers

6.5.3 For new or modified connection facilities, a transmitter shall carry out a true-
up calculation, based on actual customer load, at the following true-up points:

(a) for high risk connections, at the end of each year of operation, for five years;
(b) for medium-high risk and medium-low risk connections, at the end of each of
the third, fifth and tenth year of operation; and
(c) for low risk connections, at the end of each of the fifth and tenth year of
operation, and at the end of the fifteenth year of operation if actual load is 20
percent higher or lower than the initial load forecast at the end of the tenth
year of operation.

6.5.4 Subject to sections 6.5.8, 6.5.9 and 6.5.10, for the true-up calculation, a
transmitter shall use the same methodology used to carry out the initial
economic evaluation, and the same inputs except for load, which will be
based on the actual load up to the true-up point and an updated load forecast
for the remainder of the economic evaluation period used.

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6.5.5 Subject to sections 6.5.8, 6.5.9 and 6.5.10, before carrying out a true-up
calculation for a load customer who did not make an initial capital
contribution, a transmitter shall adjust the initial load forecast used in the
initial economic evaluation to the point where the present value of connection
rate revenues equals the present value of costs.

6.5.6 Where a true-up calculation shows that a load customer's actual load and
updated load forecast is lower than the load in the initial load forecast, and
does not generate the initial forecast connection rate revenues, a transmitter
shall require the load customer to make a payment to make up the shortfall,
adjusted appropriately to reflect the time value of money.

6.5.7 Where a true-up calculation shows that a load customer's actual load and
updated load forecast is higher than the load in the initial load forecast, and
generates more than the initial forecast connection rate revenues, the
transmitter shall post the excess revenue as a credit to the customer in a
notional account. The transmitter shall apply this credit against any shortfall
in subsequent true-up calculations. The transmitter shall rebate to the load
customer any credit balance that remains when the last true-up calculation is
carried out, adjusted appropriately to reflect the time value of money. The
rebate shall not exceed any capital contribution, adjusted to reflect the time
value of money, previously paid by the load customer.

6.5.8 When carrying out a true-up calculation for a distributor, a transmitter:

(a) shall add to the actual load the amount of any embedded generation
(determined in accordance with section 11.1) that was installed during the
true-up period; and
(b) shall not reduce the updated load forecast as a result of any embedded
generation (determined in accordance with section 11.1) that was installed
during the true-up period.

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6.5.9 When carrying out a true-up calculation for a load customer other than a
distributor, a transmitter:

(a) shall add to the actual load the amount of any embedded generation
(determined in accordance with section 11.1) of 1 MW or less per unit, or
any embedded renewable generation of 2 MW or less per unit, that was
installed during the true-up period; and
(b) shall not reduce the updated load forecast as a result of any embedded
generation (determined in accordance with section 11.1) of 1MW or less per
unit, or any embedded renewable generation of 2 MW or less per unit, that
was installed during the true-up period.
6.5.10 When carrying out a true-up calculation for any load customer, a transmitter:
(a) shall add to the actual load the amount of any reduction in the customer’s
load that the customer has demonstrated to the reasonable satisfaction of
the transmitter (such as by means of an energy study or audit) has
resulted from energy conservation, energy efficiency, load management or
renewable energy activities that occurred during the true-up period; and
(b) shall not reduce the updated load forecast as a result of any reduction in
the customer’s load that the customer has demonstrated to the reasonable
satisfaction of the transmitter (such as by means of an energy study or
audit) has resulted from energy conservation, energy efficiency, load
management or renewable energy activities that occurred during the true-
up period.

6.5.11 Where a load customer voluntarily and permanently disconnects its facilities
from a transmitter’s facilities prior to the last true-up point referred to in
section 6.5.3, the transmitter shall at the time of disconnection carry out a
final true-up calculation in accordance with the rules set out in sections 6.5.4,
6.5.5, 6.5.8 and 6.5.9. Where the true-up calculation shows that the load
customer's load to the date of disconnection has not generated the initial
forecast connection rate revenues, the transmitter shall require the load
customer to make a payment to make up the shortfall, adjusted appropriately
to reflect the time value of money. Where a true-up calculation shows that
the load customer's load to the date of disconnection has generated more
than the initial forecast connection rate revenues, the transmitter shall rebate
to the load customer any excess, adjusted appropriately to reflect the time

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value of money. The rebate shall not exceed any capital contribution,
adjusted to reflect the time value of money, previously paid by the load
customer.

6.6 CONTESTABILITY

6.6.1 Where a load customer requires new connection facilities, a transmitter shall
allow the load customer to elect either to provide its own connection facilities
or to require the transmitter to provide them. Where the load customer elects
to require the transmitter to provide the connection facilities, the transmitter
shall also allow the load customer to elect to have any associated
contestable construction or design work (as identified in the transmitter’s
contestability procedure referred to in section 6.6.2) carried out by a party
other than the transmitter.

6.6.2 A transmitter shall establish in its connection procedures referred to in

section 6.1.4 and implement a contestability procedure. The contestability
procedure shall establish:

(a) what work can be done by the transmitter only, on its own existing
facilities, including conceptual design (uncontestable work), and what
other connection facility construction and design work may, at a load
customer’s option, be done by either the transmitter or the load customer
(contestable work), provided that if the load customer intends or is
required to transfer any connection facilities that it constructs to the
transmitter, design work required to establish the transmitter’s technical
requirements and specifications in relation to a given connection project
shall be uncontestable;
(b) the obligation of the transmitter to provide, at no cost:
i. a description of the contestable work and uncontestable work;
ii. a description of the labour and materials for each of the
contestable work and the uncontestable work;
iii. an initial estimate of the capital cost for each of the contestable
work and the uncontestable work, broken down into labour
(including design, engineering and construction), materials,
equipment, direct overhead (including administration) and

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indirect overhead costs, together with an indication of the degree

of accuracy of that estimate;
iv. the calculation used to determine any capital contribution to be
paid by the load customer if the transmitter constructs the
connection facilities, even if no capital contribution is required.
This calculation must include all of the assumptions and inputs
used to produce the economic evaluation as described in section
6.5, including the manner in which the customer’s risk
classification has been determined under Appendix 4; and
v. the information set out in Appendix 3, and the technical
standards and specifications applicable to the contestable work,
in sufficient detail to allow the load customer to design and
construct connection facilities that will meet the requirements
applicable to the transmitter’s transmission system;
and to provide, at cost, any revisions to this information required either
due to changes in the load customer's plans or to obtain additional design
work in order to enhance the transmitter’s initial capital cost estimate;
(c) the right of a load customer to choose to carry out the contestable work or
to require the transmitter to do it, provided that where the load customer
chooses to carry out the contestable work, it must carry out all of the
contestable work;
(d) where a load customer elects to carry out contestable work, the obligation
of the load customer to complete that contestable work in accordance with
the transmitter's conceptual design and technical standards and
specifications and to pay any Board-approved fees for inspection, testing
and commissioning by the transmitter;
(e) the right of a load customer to transfer any dedicated connection facilities
it constructs to the transmitter and the obligation of a load customer to
transfer non-dedicated connection facilities that it constructs to the
transmitter;
(f) where a load customer proposes or is obliged to transfer any connection
facilities it constructs to the transmitter, the obligation of the transmitter to
provide, upon request and at cost, engineering design in sufficient detail to
allow the load customer to carry out the contestable work and meet the

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specific connection facility design and performance requirements of the

transmitter;
(g) the obligation of the transmitter to pay a transfer price that is the lower of
the cost to the load customer or the transmitter's reasonable cost to do the
same work, for any connection facility a load customer constructs and opts
or is required to transfer to the transmitter; and
(h) where the transmitter pays a transfer price for a connection facility
constructed by a load customer, the obligation of the transmitter to make
any adjustment required to reflect that transfer price in any capital
contribution that is to be paid by the load customer.

The transmitter shall prepare all estimates required by this section 6.6.2 in
accordance with good utility practice and industry standards.

6.6.3 A transmitter shall provide a copy of its contestability procedure to any load
customer requiring new connection facilities.

6.7 REPLACEMENT AND RELOCATION OF EXISTING CONNECTION FACILITIES

6.7.1 A transmitter shall notify each customer that will be affected by the
transmitter’s plans to retire a connection facility, at least five years in
advance of the effective date of the retirement. The transmitter shall give
each affected customer the option of:

(a) providing its own replacement connection facility;

(b) connecting its facilities to the connection facility of another person; or
(c) requiring the transmitter to provide a replacement connection facility.

6.7.2 Where a transmitter-owned connection facility has reached its end-of-life and
is planned to be retired and replacement with a new connection facility is
determined to be the optimal solution, the transmitter shall undertake an
assessment, in consultation with any affected customers, to determine the
appropriate capacity of the replacement connection facility. Where the asset
is replaced, the transmitter shall either:

(a) not recover a capital contribution from a customer to replace that

connection facility, where the new facility is the same capacity or lower

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capacity; or

(b) recover a capital contribution from a customer to replace the

connection facility, where the customer requires additional capacity.
The capital contribution shall be limited to the incremental cost relative
to the cost of a like-for-like replacement facility.

6.7.2A Where a transmitter-owned connection facility has not reached its end-of-life
and is replaced at the request of a customer, the transmitter shall recover a
capital contribution from the customer. The capital contribution shall be equal
to the remaining net book value of the replaced asset plus the advancement
cost.

6.7.3 Where a customer requests the relocation of a transmitter’s connection or

network facility, the transmitter shall recover from that customer the cost of
relocating that connection or network facility.

6.7.4 Where a transmitter’s connection or network facility is relocated in the

absence of a customer request, the transmitter shall bear the cost of
relocating that connection or network facility.

6.8 OBLIGATIONS BETWEEN NEIGHBOURING ONTARIO TRANSMITTERS

6.8.1 A transmitter shall enter into an agreement with each neighbouring Ontario
transmitter. The agreement shall describe the facilities connecting the two
transmission systems and shall set out the respective obligations of the
parties in relation to:
(a) transmission system expansion and associated cost responsibilities;
(b) operational requirements and authorities;
(c) protections;
(d) emergency preparedness and emergency operations;
(e) outage co-ordination;
(f) forced outages;
(g) new or modified transmission facilities;
(h) the information to be exchanged between the parties;

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(i) the protection of confidential information; and

(j) a dispute resolution process that provides for the fair, timely and effective
resolution of disputes and that sets out specific timelines for completion of
the dispute resolution process.

6.8.2 An agreement referred to in section 6.8.1 shall contain such other provisions
as may be required to enable a transmitter to comply with its obligations
under this Code relative to neighbouring Ontario transmitters and to the
reliability and integrity of its transmission system.

6.8.3 Where a transmitter had an executed agreement with a neighbouring Ontario

transmitter on August 26, 2013, the parties shall amend that agreement as
may be required to ensure that it complies with the requirements of sections
6.8.1 and 6.8.2. Such amendment shall be made as soon as any other
amendment to the agreement is being made by the parties and in any event
no later than August 26, 2018.

6.9 RECORD KEEPING AND REPORTING REQUIREMENTS

6.9.1 A transmitter shall maintain complete and accurate records of all economic
evaluations required to be carried out under this Code, including the economic
evaluations referred to in sections 6.3.9 and 6.3.17A. Each record must show
the details of the economic evaluation, including the determination of the risk
classification and the resulting economic evaluation period, the load forecast, the
project capital costs, the ongoing operation and maintenance costs, and the
project after tax incremental cost of capital, and must include the justification for
all of the study parameters.

6.9.2 A transmitter shall file the records referred to in section 6.9.1 with the Board on
request.

6.10 RECONNECTION

6.10.1 A transmitter shall investigate and determine the cause of any reported
shutdown of a customer's facilities, regardless of the reason for that
shutdown, using available evidence including input from the customer's staff.

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The transmitter shall upon request provide the customer with the results of its
investigation.

6.10.2 Once a transmitter is satisfied that reconnection of a customer’s facilities will

not cause any adverse effects on the transmitter’s transmission system, it
shall as soon as practicable, advise the customer when reconnection can
take place. Reconnection to the transmitter's transmission facilities shall not
take place until authorized by the transmitter.

6.10.3 A transmitter shall establish a reconnection procedure in its connection

procedures referred to in section 6.1.4 setting out the steps to be taken by
the transmitter when a customer whose facilities have been disconnected
asks to be reconnected. The procedure shall also provide for notice to be
given to the customer, setting out all steps to be taken by the customer and
the transmitter, any system studies that will be carried out by the transmitter,
any cost to be borne by the customer, and the duration of the reconnection
process.

6.10.4 A transmitter shall not carry out a system study in relation to a proposed
reconnection unless it can demonstrate that the system study is necessary to
ensure system integrity or is required by the IESO.

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7. COMPLIANCE, INSPECTION, TESTING AND MONITORING

7.1 REQUIREMENTS

7.1.1 A transmitter shall inspect, test and monitor its transmission facilities to
ensure continued compliance with all applicable standards and instruments
referred to in section 5.1.2.

7.1.2 A transmitter shall maintain complete and accurate records of the results of
all performance inspecting, testing and monitoring that it conducts in
fulfillment of its obligations under this Code. The transmitter shall keep these
records for a minimum of seven years or for such shorter time as the Board
may permit, and shall make them available to the Board on request.

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8. GENERAL TECHNICAL REQUIREMENTS

8.1 INTENTIONALLY LEFT BLANK

8.2 PROTECTION AND CONTROL

8.2.1 A transmitter shall install and maintain protection systems that are capable of
minimizing the severity and extent of disturbances to the transmission
system while themselves experiencing a first order single contingency such
as the failure of a relay protection system to operate or the failure of a
breaker to trip. In particular:

(a) the facilities designated by the transmitter or the IESO as essential to

system reliability and security shall be protected by two protection
systems. Each system shall be independently capable of detecting and
isolating all faults on those facilities. Those facilities shall also have
breaker failure protection, but breaker failure protection need not be
duplicated. Both protection systems shall initiate breaker failure protection;
(b) to reduce the risk of both protection systems being disabled
simultaneously by a single contingency, the two protection systems shall
not use common components;
(c) the use of two identical protection systems should be avoided to reduce
the risk of simultaneous failure of both systems due to design deficiencies
or facilities problems;
(d) the protection systems shall be designed to isolate only the faulted
facilities. For faults outside the protected zone, each protection system
shall be designed either not to operate or to operate selectively in
coordination with other protection systems;
(e) protection settings at tapped transformer stations owned by the
transmitter, for protection of system elements affected by conditions on
the transmission system, shall be coordinated with other system elements
of the transmission system;
(f) protection systems shall not operate to trip for stable power swings
following contingencies that are judged by protection system designers as
not harmful to the transmission system or its customers;

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(g) the components and software used in all protection systems shall be of
proven quality for effective utility application and follow good utility
practice;
(h) critical features associated with the operability of protection systems and
the high voltage interrupting device (HVI) shall be annunciated or
monitored;
(i) the design of protection systems shall facilitate periodic testing and
maintenance. Test facilities and procedures shall not compromise the
independence of the redundant protection systems. Test switches shall be
used to eliminate the need to disconnect wires during testing;
(j) the two protection systems shall be supplied from separate secondary
windings of a voltage and current transformer or from separate voltage
and current transformers; and
(k) protection system circuitry and physical arrangements shall be designed
to minimize the possibility of incorrect operations from personnel error.

8.2.2 A transmitter shall follow the specific protection and control practices and
facilities requirements which are set out in Schedule G of the applicable
version of the connection agreement set out in Appendix 1.

8.2.3 A transmitter should apply protection systems using the typical tripping matrix
for transmission system protection shown in Exhibit E.2, Schedule E of the
applicable version of the connection agreement set out in Appendix 1.

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8.3 INSULATION COORDINATION

8.3.1 A transmitter shall ensure that its facilities are protected against lightning and
switching surges. This shall include station shielding against direct lightning
strokes, surge protection on all wound devices, and cable/overhead
interfaces.

8.3.2 A transmitter shall ensure that a tap connected to a shielded transmission

circuit is also shielded.

8.4 GROUNDING

8.4.1 A transmitter shall ensure that grounding installations are capable of carrying
the maximum foreseeable fault current, for the duration of such fault currents,
without risking safety to personnel that may be present on site when a fault,
damage to facilities, or interference with the operation of the transmission
system occurs.

8.4.2 A transmitter shall ensure that each of its tapped transformer stations and
network transformation and switching stations has a ground grid to which all
metallic structures, metallic equipment and non energized metallic equipment
are solidly connected. The size, type and requirements for the ground grid
are site specific, depending on such factors as soil conditions, station size,
and short circuit level.

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9. TECHNICAL REQUIREMENTS FOR TAPPED TRANSFORMER

STATIONS SUPPLYING LOAD

9.1 SUPPLY CONSIDERATIONS

9.1.1 A transmitter shall ensure that tapped transformer stations, excluding those
that are deemed compliant under section 4.6 of this Code, have adequate on
load tap changer or other voltage regulating facilities to operate continuously
within normal variations on the transmission system as set out in the Market
Rules and to operate in emergencies with a further transmission system
voltage variation of six percent.

9.1.2 A transmitter shall ensure that the grounding of power transformer windings
at tapped transmission system stations do not adversely affect the reliability
of the transmission system.

9.2 PROTECTION REQUIREMENTS

9.2.1 A transmitter’s protection and teleprotection requirements will be identified in

the connection agreement. These requirements apply to the facilities that
interface between the customer and the transmitter systems. Typical
technical requirements are set out in Exhibit E.1, Schedule E of the
applicable version of the connection agreement set out in Appendix 1, and
Exhibits F.1 and F.2, Schedule F of version A of the connection agreement
set out in Appendix 1.

9.2.2 Intentionally left blank.

9.2.3 Intentionally left blank.

9.2.4 Intentionally left blank.

9.2.5 Intentionally left blank.

9.2.6 Where remote/transfer trip circuits are used for tapped transformer faults to
trip the transmitter's line breakers at the terminal stations, the tapped
transformer shall be equipped with a motor operated transformer disconnect
switch at that station to provide a point of separation from the transmission

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system. Energization of remote/transfer trip and opening of the disconnect

switch (89) shall be initiated simultaneously from the protection circuits. Full
opening of the disconnect switch shall block sending of remote trip.

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10. PROTECTION SYSTEM REQUIREMENTS

10.1 TELECOMMUNICATIONS

10.1.1 A transmitter shall ensure that telecommunication facilities used for

protection purposes have a level of reliability consistent with the required
performance of the protection system.

10.1.2 A transmitter shall specify to all customers telecommunication channel media

and protective systems in the connection agreement. These requirements
shall apply to the facilities that interface between the customer and the
transmitter systems.

10.1.3 A transmitter shall ensure that telecommunication circuits used for the
protection and control of the transmission system are dedicated to that
purpose.

10.1.4 Intentionally left blank.

10.1.5 A transmitter shall ensure that telecommunication systems are:

(a) designed to prevent unwanted operations such as those caused by

equipment or personnel,
(b) powered by the station's batteries or other sources independent from the
power system, and
(c) monitored in order to assess equipment and channel readiness.

10.1.6 A transmitter shall include a maximum annual specification on major

disturbances cause by telecommunication failures in the connection
agreement.

10.1.7 A transmitter shall include a maximum annual specification for unavailability

of the telecommunication protection for a single transmission system circuit
and for two circuits in the connection agreement.

10.1.8 A transmitter shall include a maximum annual specification for

telecommunication false trip rate in the connection agreement.

10.1.9 A transmitter shall include a maximum annual specification in the connection

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agreement for total transmission system circuit trips coincident with the
telecommunications failure.

10.2 TEST SCHEDULE FOR RELAYING COMMUNICATION CHANNELS

10.2.1 A transmitter shall test communication channels associated with protective

relaying at periodic intervals to verify that the channels are operational and
that their characteristics are within specific tolerances. Testing should include
signal adequacy tests and channel performance tests.

10.3 VERIFICATION AND MAINTENANCE PRACTICES

10.3.1 A transmitter shall establish verification intervals for protection systems not
otherwise covered by the requirements of a reliability organization.
Verification is required after any change is made to an existing protection
system.

10.4 FUNCTIONAL TESTS AND PERIODIC VERIFICATION

10.4.1 For direct current circuitry checks, a transmitter shall thoroughly check the
logic of the transmitter’s auxiliary circuitry with the direct current applied and
the initiating devices suitably energized to initiate the process. Operation or
tripping of any interrupting or isolating device shall always be verified, as well
as local and/or remote annunciation.

10.4.2 A transmitter shall ensure that "on potential" checks shall follow all necessary
preliminary procedures. The main equipment shall be energized but not
placed on load. At its tapped transformer stations, the transmitter shall check
all readings of potentials, including determination of correct phasing/phase
rotation. The test must also demonstrate that all equipment performs as
expected when energized and is in a condition to have primary load applied.

10.4.3 At its tapped transformer stations, a transmitter shall make "On Load" checks
following the application of appropriate load, voltage, current, phase angle or
crossed wattmeter readings at the appropriate instrument transformer
outputs or protection input points, to ensure that all quantities are appearing
as required with respect to magnitude, phase relation, etc. These checks are

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to determine that relays are properly connected and that the watt and var
checks of all indicating and referenced equipment are correct. At times it
may be necessary to repeat some or all tests, e.g. relay performance, using
load currents.

10.5 FAILURE PROTECTION FOR HIGH VOLTAGE INTERRUPTING DEVICES

10.5.1 A transmitter shall ensure that protection is provided to trip local and remote
breakers if a high voltage interrupting device (HVID) fails to clear a fault
properly. The requirements for HVID failure protection vary depending on the
maximum permissible fault duration and the location of the connection on the
transmission system. Some portions of the transmission system are
designed and operated to more stringent requirements to avoid adversely
affecting neighbouring transmission systems.

10.5.2 If the IESO or the transmitter so determines, the HVID failure protection shall
be achieved by using remote or transfer trip circuits and opening of the motor
operated disconnect switch.

10.5.3 In portions of the transmission system having less stringent requirements,

the HVID failure protection may be achieved by the opening of the motor
operated disconnect switch. If the disconnect switch experiences a flashover,
the line protection at the transmitter's transmission stations shall operate to
isolate the fault.

10.5.4 A transmitter shall not use automatic ground switches for any transmitter
owned new installations for triggering line protection operation.

10.5.5 When circuit switchers are used, the interrupter and disconnect switch shall
operate independently. Protection systems that trip the interrupter shall
simultaneously initiate opening of the disconnect switch.

10.5.6 The direct current voltage supplied to the interrupter and disconnect switch
shall be fed from separately fused and monitored direct current supplies: that
is, by two direct current cables to the control cabinet.

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10.6 INSTRUMENT TRANSFORMERS

10.6.1 A transmitter shall ensure that current transformer output remains within
acceptable limits for all anticipated fault currents and for all anticipated
burdens connected to the current transformer.

10.6.2 A transmitter shall ensure that current transformers are connected so that
adjacent relay protection zones overlap and, where they do not overlap, shall
ensure appropriate mitigation is provided.

10.6.3 A transmitter shall ensure that voltage transformers and potential devices
have adequate volt ampere capacity to supply the connected burden while
maintaining their accuracy over the specified primary voltage range.

10.6.4 For each independent protection system, a transmitter shall ensure that
separate current and voltage transformer or potential device secondary
windings are used, except on low voltage devices.

10.6.5 A transmitter shall ensure that interconnected current transformer secondary

wiring and voltage transformer secondaries are each grounded only at a
single point.

10.7 BATTERY BANKS AND DIRECT CURRENT SUPPLY

10.7.1 A transmitter shall ensure that if either the battery charger fails or the AC
supply source fails, the station battery bank shall have enough capacity to
allow the station to operate for at least eight hours for a single battery system
or at least six hours for each of the batteries in a two battery system.

10.7.2 A transmitter shall ensure that critical DC supplies such as relay protection
circuits and high voltage interrupters (HVIs) shall be monitored and alarmed.

10.7.3 A transmitter shall ensure that all generating facilities connected to the
transmission system have two separately protected (fuse/breaker) and
monitored DC station battery systems unless the transmitter and the IESO
determine otherwise.

10.7.4 A transmitter shall ensure that tapped transformer stations have at least one
protected (fuse/breaker) monitored DC station battery system. A transmitter

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may specify that two systems are required.

10.7.5 Where two battery systems are required, there shall be a battery transfer
scheme.

10.7.6 Where the use of a single battery system is allowed, the following conditions
shall be met:

(a) it can be tested and maintained without removing it from service;

(b) each protection system shall be supplied from physically separated and
separately fused direct current circuits; and
(c) no single contingency other than failure of the battery bank itself shall
prevent successful tripping for a fault.

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11. EMBEDDED GENERATION AND BYPASS COMPENSATION

11.1 EMBEDDED GENERATION

11.1.1 A transmitter shall, for all purposes, treat any generation facility that came
into service on or before June 8, 2004 as embedded generation in relation to
a load, provided that the generation facility was always connected on the
customer side of the connection point. This requirement applies regardless
of ownership of the generation facility, the voltage at which the generation
facility is connected, the location of the generation facility, the size or number
of units of generation capacity, or any relationship between the owner of the
generation facility and the customer or the load.

11.1.2 A transmitter shall, for all purposes, treat any new generation facility that
comes into service after June 8, 2004 as embedded generation in relation to
a load, provided that the generation facility is connected on the customer
side of the connection point at the time the generation facility comes into
service. This requirement applies regardless of ownership of the generation
facility, the voltage at which the generation facility is connected, the location
of the generation facility, the size or number of units of generation capacity,
or any relationship between the owner of the generation facility and the
customer or the load.

11.1.3 If at any time after a generation facility comes into service it is reconfigured
so as to become connected on the customer side of the point where a load
facility is connected to a transmitter’s transmission facilities, the transmitter
shall not for any purpose treat that generation facility as embedded
generation in relation to that load.

11.1.4 If at any time after a generation facility that is connected to a transmitter’s

transmission system comes into service a load customer disconnects its
facilities from the transmitter's transmission facilities and subsequently
connects its facilities, or a load facility becomes connected:

(a) directly to the generation facility; or

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(b) to the facilities of any person such that both the load facility and the
generation facility are connected to the transmitter’s transmission
facilities on that person’s side of the connection point,
the transmitter shall not for any purpose treat that generation facility as
embedded generation in relation to that load facility.

11.1.5 The reference to “for all purposes” and “for any purpose” in sections 11.1.1 to
11.1.4 includes the purpose of determining whether bypass compensation is
required to be paid by the load customer and the purpose of determining the
manner in which network charges will be applied.

11.2 BYPASS COMPENSATION

11.2.1 A transmitter shall require bypass compensation from a customer if:

(a) the customer disconnects its load facility from the transmitter’s
connection facilities and connects that facility to a generation facility or
to another load facility that is not owned by the transmitter such that
both the load facility and a generation facility are connected to the
transmitter’s transmission facilities on that customer’s side of the
connection point and the transmitter will no longer receive line
connection or transformation connection rate revenues in relation to that
disconnected facility; or
(b) the customer, while retaining its connection to the transmitter’s
transmission system, also connects its load facility to a generation
facility or to another load facility that is not owned by the transmitter
such that the customer reduces its load served directly by the
transmitter’s transmission system, and the line connection or
transformation connection rate revenues in relation to that facility will be
reduced.

The transmitter shall calculate bypass compensation using the methodology

set out in section 11.2.6.

11.2.2 Where a transmitter becomes aware that a customer intends to bypass a

transmitter-owned connection facility in the manner described in section

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11.2.1, the transmitter shall promptly notify all other load customers served
by the connection facility that is intended to be bypassed.

11.2.3 A transmitter shall not require bypass compensation from a customer for any
reduction in a customer’s load served by the transmitter’s connection
facilities that the customer has demonstrated to the reasonable satisfaction
of the transmitter (such as by means of an energy study or audit) has
resulted from embedded renewable generation (determined in accordance
with section 11.1), energy conservation, energy efficiency or load
management activities, except in accordance with the transmitter’s Rate
Order.

11.2.4 When a load customer provides its own connection facility to serve new load
or transfers new load to the connection facility of another person, the
transmitter shall not require bypass compensation from that customer.

11.2.5 Subject to sections 6.7.2, 11.2.6 and 11.2.7, for all or a portion of existing
load a load customer may bypass a transmitter-owned connection facility
with its own connection facility or the connection facility of another person,
provided that the load customer compensates the transmitter.

11.2.6 For the purposes of sections 11.2.1 and 11.2.5, but subject to section 11.2.7,
the transmitter shall calculate bypass compensation by first multiplying the
net book value of the bypassed connection facility, including a salvage credit
and reasonable removal and environmental remediation costs, if applicable,
by the bypassed capacity on the relevant connection facility. The transmitter
shall then divide the resulting figure by the total normal supply capacity of the
bypassed connection facility. For purposes of this calculation:

(a) the bypassed capacity on the relevant connection facility shall be equal to
the difference between the customer’s existing load on that connection
facility at the time of bypass and the highest rolling three-month average
of the customer’s non-coincident peak demand in the twelve-month
period following the date on which bypass occurred; and
(b) the normal supply capacity of the bypassed connection facility shall be
determined by the transmitter in accordance with the Board-approved
procedure referred to in section 6.2.7.

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11.2.7 Where an economic evaluation, including an economic evaluation referred to

in section 6.3.9 or 6.3.17A, was conducted by a transmitter for a load
customer in relation to a connection facility on the basis of a load forecast, a
transmitter shall not require bypass compensation from a customer under
section 11.2.5 in relation to any load that represents that customer’s
contracted capacity, during the related economic evaluation period.

11.2.8 A transmitter should avoid overloading a connection facility above its total
normal supply capacity. Where a connection facility has been overloaded,
and a customer transfers the overload to its own connection facility or to the
connection facility of another person, the transmitter shall not require bypass
compensation from that customer.

11.2.9 A transmitter shall promptly notify the Board upon becoming aware that a
load customer that is a distributor intends to bypass a transmitter-owned
connection facility with its own connection facility or the connection facility of
another person.

11.2.10 Where a transmitter becomes aware that a load customer intends to

bypass a transmitter-owned connection facility with its own connection facility
or the connection facility of another person, the transmitter shall promptly
notify all other load customers served by the connection facility that is
intended to be bypassed.

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12. DISPUTE RESOLUTION

12.1 OBLIGATION TO INCLUDE IN PROCEDURES

12.1.1 Subject to section 12.1.4, a transmitter shall establish a dispute resolution

procedure in its connection procedures referred to in section 6.1.4 and shall
implement it in the event of a dispute with a customer regarding the
transmitter's obligations under the Act, the Electricity Act, its license, this
Code or any of the transmitter's connection procedures.

12.1.2 The dispute resolution procedure referred to in section 12.1.1 shall include
provisions that:

(a) provide for the fair, timely and effective resolution of disputes;
(b) set out specific timelines for completion of the dispute resolution process;
and
(c) establish the right of the transmitter or the customer to bring a dispute to
the Board for resolution, if it has not been resolved by the parties within 30
days.

12.1.3 If a dispute arises while a transmitter is constructing new or modified

connection facilities for a customer, the transmitter shall not cease work or
slow the pace of work without leave of the Board.

12.1.4 The dispute resolution procedure referred to in section 12.1.1 shall not apply
to disputes that arise between a transmitter and a customer:

(a) that are governed by the dispute resolution process contained in their
connection agreement; or
(b) that relate to the terms and conditions of a contractual arrangement that is
under negotiation between the transmitter and the customer, except where
one party alleges that the other party is:
i. seeking to impose a term or condition that is inconsistent with or
contrary to the Act, the Electricity Act, a party’s licence, this Code
or any of the transmitter's connection procedures; or

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ii. refusing to include a term or condition that is required to give

effect to this Code or any of the transmitter’s connection
procedures.

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13. COMING INTO FORCE

13.0.1 This Code shall be in effect as of the date on which it is published in the Ontario
Gazette, and as of that date replaces the Transmission System Code issued by
the Board on August 26, 2013.

13.0.2 Except where expressly provided otherwise, any amendments to this Code shall
come into force on the date on which the Board publishes the amendments by
placing them on the Board’s website after they have been made by the Board.

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