IMPACTS ON YUKON INTEGRATED GRID‌ Sample Clauses

IMPACTS ON YUKON INTEGRATED GRID‌. The PPA enables the Mine to be connected to the Yukon grid. This development will have impacts on the Yukon grid development and operation. The Mine being developed by VGC Group will increase utility electrical sales in the Keno region well above earlier levels even when UKHM was operating. This new load will utilize available Mayo hydro generation resources, and require import to the northern grid of available WAF renewable and thermal generation. Initial Yukon Grid Improvements Prior to Commencement of Delivery to the Mine in 2019, the PPA provides for development on the Yukon grid of the McQuesten Substation plus the Initial YEC Facilities Improvements, as described in Schedule C of the PPA. These Yukon grid enhancements and facilities are required to connect the Mine to the existing transmission, to maintain acceptable system voltages while supplying this new load, and to address potential contingent operating conditions such as loss of generation at Mayo or loss of the transmission connection between Mayo and Whitehorse. These initial new facilities and enhancements are to be funded by VGC Group, with the exception of YEC XxXxxxxxx Substation Costs of approximately $0.93 million as described in Schedule B, Table B-2. The PPA recognizes that, with these initial measures, the Yukon grid likely can only deliver to the Mine up to 10,100 kVA until further Yukon grid improvements (i.e., the Transmission Facilities Development) are implemented23 – and the Mine will likely need to utilize its on-site diesel generation to supply some of its peak load from approximately March through to December in years before the Transmission Facilities Development Operation Date. Near-term Transmission Facilities Development The PPA and the Mine’s development provide the basis for moving as quickly as possible to replace the end of life existing Mayo to Keno City transmission facilities. As reviewed in section 4.3 of this Application, YEC is exploring options to secure funding in 2018 for the full SKTP up to 100% of full revenue requirement impact to replace and greatly improve the existing Yukon grid facilities in this region. The PPA is expected to enhance initiatives to secure this funding. The PPA also provides for a default option if such funding cannot be secured in a timely manner, where specific required improvements would be implemented by YEC with costs to be included in rate base and revenue requirements. In summary, after Commencement of Delivery to the Mine and ...
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