You must rescind any impact assessments to qualify for the FIT Program. You must not have a connection impact assessment, system impact assessment or customer impact assessment.

The FIT Program incorporates a connection assessment process that is based on the new Ontario Energy Board connection and cost allocation processes. In order to treat all projects equally under the program, projects must apply as new projects, with no impact assessments from under the previous Ontario Energy Board rules.

The OPA is aware that impact assessments were difficult to obtain and cost many developers significant time and resources. Under the FIT Program, after you have been awarded a contract, the process for obtaining a new impact assessment will be greatly streamlined. The new service guarantee regulation means that a local distribution company (LDC) must complete a connection impact assessment within 60 days of a completed application and an LDC that has to apply to its host LDC for a connection impact assessment must complete both connection impact assessment processes within 120 days total cycle time.

In addition, for distribution-connected projects, under the new cost allocation rules, distributors will be responsible for covering a greater portion of the costs required to connect distribution projects. Some portions of these costs will be allocated to the provincial rate base.

In order to qualify for the new rules; however, the project must not have a connection impact assessment, system impact assessment or customer impact assessment completed.

There were many proponents that applied for and obtained impact assessments under the previous Ontario Energy Board rules that were not moving forward with their projects. This meant that they were preventing real projects from connecting. In many cases, LDCs were unable to complete impacts assessments in a timely manner because they were processing so many requests, including from projects that were not serious. Since projects interested in the FIT Program will not apply for an impact assessment until they have a FIT contract, this will ease the burden on LDCs and allow them to process new requests in a timely manner.

In order to qualify for the FIT Program, you will have to rescind your system impact assessment, connection impact assessment and/or customer impact assessment and queue position.

The program launch will last from October 1, 2009 to 11:59 p.m. Toronto time on November 30, 2009. All applications received during this period will be assembled at the end of this period, in order to receive relative prioritization. These applications will proceed, in order, through the transmission availability test and the distribution availability test. The first transmission availability test will be completed within 60 days after the closure of program launch.

Impact assessment tests (i.e., system impact assessment, connection impact assessment, customer impact assessment) cannot be completed until after a FIT contract has been issued.

Distribution-connected projects:

1.      FIT application submitted to the OPA

2.      transmission availability test and distribution availability test

3.      contract awarded

4.      connection impact assessment application to local distribution company.

Transmission-connected projects:

1.      FIT application submitted to the OPA

2.      transmission availability test

3.      contract awarded

4.      system impact assessment/customer impact assessment application to the Independent Electricity System Operator (IESO).

The transmission availability test will be applied to all projects except capacity allocation exempt projects and microFIT projects. The distribution availability test will be performed on all projects that have had a transmission availability test and are connected to the distribution system.

The transmission availability test will be performed by the OPA with input from transmitters and the distribution availability test will be performed by the applicable local distribution company. Both tests will be completed within 60 days of a completed FIT application.

Once you receive a FIT contract, you will be required to obtain a connection impact assessment, or a system impact assessment and customer impact assessment as applicable. Contact your local distribution company for details on this process if you are connected to the distribution system. Contact the IESO if you are connected to the transmission system.

If you are generator seeking to connect to the transmission system, you will apply to the IESO for a system impact assessment, and through that application to your transmitter for a customer impact assessment. There are study agreements and fees associated with this process. The IESO has a new web page which details the connection requirements under FIT. Please go to http://www.ieso.ca/imoweb/fit/fit.asp.

A combined system impact assessment/customer impact assessment will be provided to the proponent by the IESO within 150 days of a completed application.

Yes. These tests determine whether it is possible to connect your project to the grid. You will not be offered a contract until it is determined that you will be able to connect.

The purpose of the tests is to determine whether there is capacity available for your project to connect to the grid at the specific connection point. The transmission availability test will be performed on all projects by the OPA to determine if the transmission system has connection capacity. The distribution assessment test will be performed on projects that pass the transmission availability test to assess whether the distribution system has connection capacity. The distribution assessment test will be performed by the applicable local distribution company.

Both tests will consider the existing grid, as well as planned upgrades to the grid. They are meant to be first pass screening tests and do not replace a full assessment through a system impact assessment/customer impact assessment.

The purpose of the economic connection test is to drive expansion of the Ontario transmission system to accommodate renewable generation. The obligation to connect ensures system expansion that is deemed economic will move forward to provide new capacity for renewable generation.

You should meet with your local distribution company or transmitter prior to applying for the FIT Program in order to discuss connection options. This connection information will be required for the FIT Program application.

There are certain circumstances when you might choose not to specify connection details. This should be a calculated decision. You may choose to do this if your project is located far away from the existing distribution grid and the connection costs required to connect your project make your project uneconomic. If you are connecting to the transmission system, your project may require an enabler facility to connect. If you are waiting for an enabler facility, you will not be able to provide connection details, but by submitting you application, your project will serve as input to transmission/distribution expansion plans.

If you do not specify connection details on your application, your project will proceed directly to the economic connection test and not to the transmission availability test and the distribution availability test. Your project would wait in the reserve until the transmission and/or distribution system has been sufficiently expanded in order to better accommodate your project

This refers to the number of days by which you are willing to reduce your commercial operation date deadline.

The FIT Program requires that commercial operation be reached within a certain time depending on the technology:

• three years for on-shore wind, solar and bioenergy
• four years for off-shore wind
• five years for waterpower.

During program launch (the first 60 days of the program), you will have the option on your application form to select commercial operation acceleration days that will shorten your commercial operation date (COD) deadline. Applications will be prioritized based on expected COD. This means that projects that are expected to be completed first will have priority access to existing connection capacity on the grid.

All applicants will be allowed to submit up to 365 COD acceleration days. If you wish to submit a higher number of acceleration days, you must submit evidence that you have met one or more of four criteria upon which your project will be assigned a score.

Applicants are awarded one point for each criterion that they meet as follows:

• do not require a renewable energy approval
• major equipment component confirmed
• successful experience with similar projects
• financial backing.

For every criterion that you meet, you will be allowed to select an additional 90 COD acceleration days. In order to qualify, you must submit evidence to the OPA with your application that demonstrates the criteria have been met. The maximum number of COD acceleration days is 725.

If you are awarded a contract after submitting COD acceleration days, you will be subject to liquidated damages if you fail to achieve commercial operation within the time specified in your application. This is intended to ensure that projects reach commercial operation within the time committed in the application.

Liquidated damages are $0.25/kW per day, for no more than the number of COD acceleration days submitted.

If you are not awarded a contract and proceed to the economic connection test, production line and/or reserve as applicable, you will no longer be held to your accelerated COD deadline.