August 4, 2005 Mr. Paul Drindak Plant Manager ERCO Worldwide 1535 City Road East P.O. Box 10464 Thunder Bay, ON., P7B 6T9 Dear Mr. Drindak: Disconnection of Transformer T2 Notification of Approval of Connection Proposal CAA ID Number: 2005-EX242 Thank you for the detailed information regarding the shutdown and isolation of the 115/13.8 kV step- down transformer T2 at the Sterling Pulp Chemical facility in Thunder Bay. From the information provided, our review concludes that the proposed changes will not result in a material adverse effect on the reliability of the IESO-controlled grid. The IESO is therefore pleased to grant conditional approval for the modification detailed in the attached assessment report. Any material changes to your proposal may require re-assessment by the IESO in accordance with Market Manual 2.10, and may nullify your conditional approval. Final approval will be granted upon successful completion of the IESO Facility Registration process. During facility registration you will be expected to demonstrate that you have fulfilled the requirements and the modification is in line with the proposal assessed by the IESO. Please contact firstname.lastname@example.org if you have not received a Facility Registration Summary package within the next 10 days. For further information, please contact the undersigned. Yours truly Michael Falvo Manager - Transmission Assessments & Performance Telephone: (:905) 855-6209 Fax: (905) 855-6129 E-mail: email@example.com cc: IESO Records All information submitted in this process will be used by the IESO solely in support of its obligations under the Electricity Act, 1998, the Ontario Energy Board Act, 1998, the Market Rules and associated polices, standards and procedures and in accordance with its licence. All information submitted will be assigned the appropriate confidentiality level upon receipt. ASSESSMENT SUMMARY ERCO Worldwide. Disconnection of Transformer T2 CAA ID Number: 2005-EX242 1.0 GENERAL DESCRIPTION Due to economic reasons, ERCO Worldwide in Thunder Bay wishes to disconnect their Transformer T2 indefinitely. This shutdown results in approximately a maximum of 18 MW of load being removed from the system. 2.0 PROPOSED MODIFICATION As shown in the attached diagram this work will entail locking the 115 kV disconnect switch S-T2 in the open position. The line drops are to be removed from the load side of the switch and grounded. The disconnect will be tagged and the associated metering de-registered. 3.0 ASSESSMENT The transformer has the following ratings: ONAN: 18 MVA ONAF: 24 MVA 3 phase, 60 HZ 117.0 kV / 13.8 kV (tap 4) Since the isolation of the T2 step-down transformer will have no material adverse effect on the IESO controlled grid, the IESO is therefore pleased to grant conditional approval for this work, subject to satisfying any requirements for de-registering the isolated facilities. 4.0 NOTIFICATION OF APPROVAL It is therefore recommended that a Notification of Approval of the disconnection Proposal be issued.