Commission de l énergie de l Ontario NOTICE OF APPLICATION

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Ontario Energy Board Commission de l énergie de l Ontario EB-2007-0947 NOTICE OF APPLICATION Application by Hydro One Networks Inc. and Peterborough Distribution Inc. for Licence Amendments and Sale of Distribution Assets Hydro One Networks Inc. ("Hydro One") and Peterborough Distribution Inc. ("Peterborough Distribution ") have filed a joint application with the under the Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Schedule B, for an order of the Board: amending the applicants' distribution service areas to reflect the transfer of four customers from Hydro One to Peterborough Distribution and two customers from Peterborough Distribution to Hydro One; and approving the sale of distribution assets necessary in serving the public from Hydro One to Peterborough Distribution. The Board has assigned file number EB-2007-0947 to the application. Section 6.5.4 of the Distribution System Code Section 6.5.4 of the Board s Distribution System Code requires distributors to eliminate long term load transfers before January 31, 2009. A long term load transfer is a situation in which a customer is within one distributor's service area but is actually served electricity from a second distributor. The applicants have stated that the service area amendments and the sale of the distribution assets that are the subject of this application are being sought in order to eliminate the long term load transfer between Hydro One and Peterborough Distribution. Service Area Amendments Hydro One s Load Transfer Customers Proposed to be Transferred to Peterborough Distribution The proposed service area amendment will expand Peterborough Distribution s service area to include four customers at the following locations: one customer located on lot 16, concession 9, village of Norwood on the east side of County Road 45 approximately midway between Baker Street to the south and Industrial Drive to the north; and

- 2 - three customers located on lots 7 and 8, concession 1 in the city of Peterborough, on the north side of Parkhill Road West between Brealey Drive to the west and Ravenwood Drive to the east. The customers located at the above noted locations are currently within Hydro One s service area. The proposed amendments, if granted, will result in these customers becoming customers of Peterborough Distribution. As the distribution rates for the two utilities are not identical, these customers will be subject to new distribution rates if the application is approved. Peterborough Distribution s Load Transfer Customers Proposed to be Transferred to Hydro One The proposed service area amendment will expand Hydro One s service area to include two customers at the following locations: the customer located on lot 7, concession 9, on the west side of Douro 9th Line, approximately midway between Nassau Road/Pioneer Road to the south, and Road 32 to the north; and the customer located on lot 15, concession 3, on the west side of Hilliard Street at the junction of Hilliard Street and Cumberland Avenue. The customers located at the above noted locations are currently within Peterborough Distribution s service area. The proposed amendments, if granted, will result in these customers becoming customers of Hydro One. As the distribution rates for the two utilities are not identical, these customers will be subject to new distribution rates if the application is approved. Sale of Distribution Assets Hydro One is seeking approval to sell part of its distribution system that is useful in serving the public to Peterborough Distribution. Peterborough Distribution will purchase these assets from Hydro One for net book value. The assets will continue to be used to serve the same customers presently served by the assets. How to see the Application A copy of the application and related documents are available for inspection at the Board s offices in Toronto. A copy can also be viewed at the Hydro One and Peterborough Distribution offices at the addresses indicated below.

- 3 - How to Participate You may participate in this proceeding in one of three ways: 1. Send a Letter with your Comments to the Board Your letter with comments will be provided to the Board members deciding the application, and will be part of the public record for the application. Your letter must be received by the Board no later than 30 days from the publication or service date of this notice. The Board accepts letters of comment by either post or e-mail at the addresses below. 2. Become an Observer Observers do not actively participate in the proceeding but monitor the progress of the proceeding by receiving documents issued by the Board. You may request observer status in order to receive documents issued by the Board in this proceeding. If you become an observer, you need to contact the applicant and others in order to receive documents that they file in this proceeding and they may charge you for this. Most documents filed in this application will also be available on the Board s website. Your request for observer status must be made in writing and be received by the Board no later than 10 days from the publication or service date of this notice. The Board accepts observer request letters by either post or e-mail at the addresses below; however, two paper copies are also required. You must also provide a copy of your letter to the applicant. 3. Become an Intervenor You may ask to become an intervenor if you wish to actively participate in the proceeding. Intervenors are eligible to receive evidence and other material submitted by participants in the hearing. Likewise, intervenors will be expected to send copies of any material they file to all parties to the hearing. Your request for intervenor status must be made by letter of intervention and be received by the Board no later than 10 days from the publication or service date of this notice. Your letter of intervention must include a description of how you are, or may be, affected by the outcome of this proceeding; and if you represent a group, a description of the group and its membership. The Board may order costs in this proceeding. You must indicate in your letter of intervention whether you expect to seek costs from the applicant and the grounds for your eligibility for costs. You must provide a copy of your letter of intervention to the applicant. The Board may proceed in this matter by way of a written hearing or an oral hearing. The Board will not hold a written hearing if a party satisfies the Board that there is good reason for holding an oral hearing. Your letter of intervention should indicate

- 4 - your preference for a written or oral hearing, and the reasons for that preference. If you already have a user ID, please submit your intervention request through the Board s web portal at www.errr.oeb.gov.on.ca. Additionally, two paper copies are required. If you do not have a user ID, please visit the Board s website under e- filings and fill out a user ID password request. For instructions on how to submit and naming conventions please refer to the RESS Document Guidelines found at www.oeb.gov.on.ca, e-filing Services. The Board also accepts interventions by e- mail, at the address below, and again, two additional paper copies are required. Those who do not have internet access are required to submit their intervention request on a CD or diskette in PDF format, along with two paper copies. Need More Information? Further information on how to participate may be obtained by visiting the Board s Web site at www.oeb.gov.on.ca or by calling our Consumer Relations Centre at 1-877-632-2727. How to Contact Us In responding to this Notice please reference Board file number EB-2007-0947. It is also important that you provide your name, postal address and telephone number and, if available, an e-mail address and fax number. All communications should be directed to the attention of the Board Secretary at the address below, and be received no later than 4:45 p.m. on the required date. IMPORTANT IF YOU DO NOT NOTIFY THE BOARD OF YOUR INTENTION TO PARTICIPATE IN THIS PROCEEDING IN ACCORDANCE WITH THIS NOTICE, THE BOARD MAY PROCEED WITHOUT YOUR PARTICIPATION AND YOU WILL NOT BE ENTITLED TO FURTHER NOTICE IN THE PROCEEDING.

- 5 - Addresses (for viewing copies of the application) The Board P.O. Box 2319 2300 Yonge Street, 27th Floor Toronto, ON M4P 1E4 Attention: Board Secretary Tel: 1-877-632-2727 ( (toll free) Fax: 416-440-7656 E-mail: Boardsec@oeb.gov.on.ca The Applicants Hydro One Networks Inc. 8 th Floor, South tower 483 Bay Street Toronto, ON M5G 2P5 Attention: Mr. Allan Cowan Tel: 416-345-6219 Fax: 416-345-5866 E-Mail: allan.cowan@hydroone.com Peterborough Distribution Inc. P.O. Box 4125 Station Main 1867 Ashburnham Drive Peterborough, ON K9J 6Z5 Attention: Mr. Jeff Guilbeault Tel: 705-748-9301 ext. 1244 Fax: 705-748-4358 E-mail: jguilbea@puc.org DATED at Toronto January 11, 2008 ONTARIO ENERGY BOARD Original signed by John Pickernell Assistant Board Secretary