Ontario Hydro plans 60-cycle conversion

Ontario Hydro has requested approval from the Ontario government to begin converting to 60 cycle an older inefficient 25-cycle system serving a number of mining companies in northeastern Ontario. In the 1950s, Hydro converted most of its customers across the province to 60 cycle, but some large companies chose not to participate because of economic factors such as their substantial investment in 25-cycle equipment.

The conversion of customer equipment is scheduled for implementation over the next five years, with conversion of Hydro’s supply facilities to follow. “Most of the 25-cycle equipment is over 50 years old and nearing the end of its useful life,” explained Bud Barrett, director of Hydro’s northeastern region.

The conversion will provide affected customers with lower power bills through improved efficiency, and a higher level of supply reliability, said Barrett.

Meanwhile, the provincial electrical system will benefit from a 20 megawatt improvement in generation capacity and 21 megawatt reduction in peak demand through lower transmission losses and improvements in customer equipment. For comparison, the total system benefit of 41 megawatts is enough to supply a community half the size of North Bay.

The conversion will likely cost up to $200 million in total, most of which will be spent in Ontario with roughly one third to be spent in northern Ontario alone.

Cost-sharing arrangements are currently being negotiated with more than half a dozen companies that are directly affected by the conversion. Mining firms involved in the conversion to 60 cycle include Royal Oak Resources (TSE) and Placer Dome (TSE) in the Timmins area, as well as LAC Minerals’ (TSE) mining operations at Kirkland Lake, Ont. Also involved are base metal miners Inco (TSE) and Falconbridge Ltd., which is equally owned by Noranda (TSE) and Trelleborg AB of Sweden.

“It should be noted that the conversion will represent only a portion of the electrical load of these companies as much of their operations are already on 60 cycle,” said John Earl, a spokesman at Ontario Hydro’s regional office in North Bay.