Capacity Allocation Model

Learn more about the OEB's Capacity Allocation Model (CAM) directive.

Background

The Capacity Allocation Model (CAM) supports housing development by allocating capacity and the cost of electricity distribution system expansions in designated development areas.

A CAM is used for large, multi-year expansions where several developments will connect over time. It prevents early developers from carrying the full cost of building the required infrastructure.

Each developer who connects to capacity built under the CAM pays a share of the upstream infrastructure expansion based on their requested load.

Capital contributions are forecast and recovered over a period of up to 15 years.

Developers who connect after the first year also pay a financing charge so that early contributors and electricity ratepayers are not disadvantaged.

Electricity distributors require binding financial commitments, such as letters of credit, for any agreed capacity.


CAM Qualifications

All of the following conditions must be met:

  1. A large, primarily residential area is beginning development. This may include schools, plazas, parks or commercial space on the ground floor of a condo, but the majority of the load must be residential. The local distribution company (LDC) has not entered a final agreement and the expansion plan is not finalized.
  2. More than one developer is expected to connect over multiple years, with full build-out within 15 years. Municipal official plans or secondary plans show further development and expansion needs.
  3. Development plans are mature enough for the LDC to plan infrastructure. At minimum, a site plan is in progress that identifies roads and civil infrastructure so the LDC can design the electricity system and run the model.
  4. Significant system expansion is required, such as adding or expanding transformer or distribution stations or building long distribution feeders.
  5. A significant portion of the agreed and committed security, such as a letter of credit, is submitted.

Methodology

The Ontario Energy Board (OEB) has developed a methodology for implementing a Capacity Allocation Model.

View the OEB methodology.


Estimated kW Demand

For residential units, the estimated planning demand is on average 3 kW. This may vary depending on home size, type, and use of equipment such as electric vehicle chargers or heat pumps. Contact us to discuss the specific requirements for your development.


More Information

Email us at connections@oshawapower.ca or call (905) 723-4626 for more details.

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