OPERATIONAL INVESTMENTS

Transcription

1 EB-00-0 Exhibit D Schedule - Page of OPERATIONAL INVESTMENTS GENERAL PLANT FLEET AND EQUIPMENT SERVICES ( FES ) CAPITAL PROGRAM The objective of the FES Capital Program is to identify fleet assets in need of renewal, collaborate with Business Units to align fleet asset replacement plans with corporate needs and co-ordinate the procurement, preparation and in-service of newly purchased vehicles, equipment and tools. 0 0 Specific activities undertaken to meet the FES objective include: Setting vehicle and tool replacement criteria; Collaborating with users on replacement and design criteria; Setting and managing the Fleet capital replacement budget; Designing and specifying vehicles; Preparing purchase requests for vehicles and equipment; Receiving, preparing, licensing and arranging insurance for new fleet assets; Reporting the cost and value of new assets to Finance; Disposing of surplus assets; Providing equipment, major tools and consumables to field staff; Repairing or arranging repair of high cost or specialized tools and equipment used by field staff; and Purchasing rubber cover-up through the Glove Lab. The total capital costs for the historical, bridge, and test years are shown in Table below.

2 EB-00-0 Exhibit D Schedule - Page of Table : Fleet and Equipment, Tool Crib, Laboratory Capital Program ($ millions) 00 Actual 00 Actual 00 Bridge 0 Test Total Fleet and Equipment Services Bridge total capital costs are flat versus 00 Actual costs. The increased capital cost for 0 is required primarily to support further efforts to green THESL s fleet i.e., reduce greenhouse gas emissions through reductions in fuel consumption. This initiative requires the purchase of alternate fuel vehicles such as natural gas, electric and hybrid vehicles that carry a significant premium cost above standard gasoline or diesel powered vehicles. Additionally, the increased capital will support replacement of vehicles that will exceed the criteria outlined in THESL s FES vehicle replacement policy in 0. 0 Tool Crib costs will remain constant over the Bridge and Test years. Laboratory Services costs are expected to be constant through the Bridge year, with a slight decrease in 0 due to the lab no longer providing service for privately contracted programs. 0 FLEET VEHICLE AND EQUIPMENT REPLACEMENT PROGRAM The fleet and equipment replacement program is based on a tiered-age/-usage cycle for capital investment. Light-duty vehicles vehicles weighing less than 00 kg are reviewed every six years or 0,000 km. Heavy-duty vehicles those weighing more than 00 kg are reviewed every ten years or 00,000 km. The time and mileage parameters have been set so as to maintain a safe, reliable and increasingly efficient fleet. The vehicle and equipment replacement program is evaluated annually against the business plan and is updated by giving due consideration to on-going vehicle condition assessment surveys, life cycle planning and the historical cost of vehicle repairs.

3 EB-00-0 Exhibit D Schedule - Page of Condition surveys and checklists of detailed problems, deficient conditions and maintenance needs for vehicles are maintained through the use of the Ellipse database as part of the vehicle profile. 0 THESL s organized and structured approach to fleet replacement ensures the benefits from these assets are maximized while meeting work requirements safely and efficiently, thereby minimizing short-term rental and operating costs. Fleet and Equipment capital costs are expected to increase during the Test year in order to support the increase in employee complement, the accelerated work programs associated with the workforce expansion/renewal, and THESL s 0-00 Long-Term Electrical Distribution Capital Plan, filed at Exhibit D,, Schedule 0. CAPITAL TOOL REPLACEMENT PROGRAM This program is intended to support THESL field staff with new and replacement tools. The program is evaluated annually against THESL s business plan to ensure that THESL field staff is equipped with safe, effective and objective-matched tools and equipment. 0 The tool Replacement Program is based on a -year cycle of capital investments. The fixed asset costs associated with this program are required to: replace tools and equipment at the end of their useful life; replace technologically obsolete equipment that is not compliant with current standards and safe work practices; and maintain an adequate supply of equipment and tools consistent with the expansion in work programs and increased staffing levels. All major tools required by THESL s affiliates are directly purchased by the respective affiliate.

4 EB-00-0 Exhibit D Schedule - Page of 0 TOOL CRIB SERVICES Tool Crib Services provides hand tools, small equipment and consumables to field staff on a replacement basis and carries out repairs on high cost or specialized tools. The service ensures reliable availability of tools and equipment to field staff, thus ensuring that employees have consistent access to required tools to complete assigned tasks. Tool Crib Services delivers the following services on behalf of THESL Business Units: Purchases approved hand tools and small equipment; Manages a small inventory of hand tools, small equipment and consumables at each work location for distribution to field staff; Coordinates in-house and external repairs, or replacement of malfunctioning tools and equipment; and Evaluates the practicality of new hand tools and small equipment against established industry practices. The Tool Crib capital budget for the historical, bridge, and test years is shown in Table below. Table : Tool Crib Capital Budget ($ millions) 00 Actual 00 Actual 00 Bridge 0 Test Tool Crib LABORATORY SERVICES Laboratory Services plays an important role in enhancing workplace safety and improving supply system reliability by providing the following services: Cleaning, inspecting and electrically testing insulated tools, insulated gloves and line protection; Repairing and calibrating network system protection relays;

5 EB-00-0 Exhibit D Schedule - Page of Repairing, calibrating, and providing technical support for confined space gas monitors; and Maintaining test data of all insulated material and gloves tested by the lab. 0 0 The specific activities performed by Laboratory Services include: Cleaning, inspection and testing: o Clean electrically insulated gloves and line cover; and o Physically inspect and electrically test gloves and line cover for defects. Repair and Calibration: o Repair distribution network protection relays; o Repair confined space protection gas monitors; o Calibrate network protection relays in keeping with network parameters; and o Calibrate confined space gas monitors in keeping with regulation set out by the Ministry of Labour. Supply and Tracking: o Track testing cycles and asset location of electrically insulated assets including personal protective equipment ( PPE ) used by field staff; o Through purchasing, replenish failed line protection asset and insulated gloves; o Ensure the availability of insulated gloves, PPE, gas monitors and line cover to field staff; and o Recalibrate relays for electrical network fault protection. Laboratory and unit costs are charged to Business Units at the time of use. The Laboratory Services capital budget for the Historical, Bridge, and Test years is indicated in Table below:

6 EB-00-0 Exhibit D Schedule - Page of Table : Laboratory Services Capital Budget ($ millions) 00 Actual 00 Actual 00 Bridge 0 Test Laboratory Services The capital cost of $00,000 for 00 is to replace failed rubber line cover that has been tested and inspected during the year. The service life of rubber line cover is typically seven years due to frequent washing and mandatory high voltage testing. The capital budget for 0 was decreased to $0,000 because the lab no longer provides services for private contract work.