Meeting Date: May 12, 2004

Subject: Procurement Authorization - Replacement Of TTC Traction Power Equipment In Toronto Hydro Owned Substations

Recommendation

It is recommended that the Commission approve the issuance of a purchase order in the total upset limit of $1,893,000 to Toronto Hydro Electric Systems (THES) on the basis of a single source for the replacement of TTC traction power equipment in THES owned traction power substations.

Funding

Of the $1,893,000 required for this expenditure, $1,000,000 has been included under Project 2.1 - Electrical Systems, Traction Power (Work Order #6667 – Substation Electrical Rebuild), as set out on pages 109 to 125 of the 2004-2008 "State of Good Repair" Capital Program, as approved by City Council at its meeting of April 21, 2004. The additional $893,000 required will be added to the proposed 2005-2009 Capital Program.

Background

Traction power to the TTC’s subway and surface systems is supplied from 55 substations. The Commission owns 51 and has the traction power equipment in 4 THES owned substations. Most of the DC breakers and rectifier transformers in THES Danforth, Duncan, Carlaw and Ossington substations have exceeded their life expectancy, are prone to imminent failure and can affect the traction power system reliability.

DC feeder breakers in these THES substations are over 50 years old, are beyond repair and have been exposed to extreme operating conditions over the years. They are old open style breakers and they will be replaced with new state-of-the--art high-speed DC breakers, which the TTC is already implementing at its traction power substations. DC breakers are the most critical safety component of the substation equipment.

Rectifier transformers were built in the 1940’s and early 1950’s and their average age is over 45 years. Their anticipated lifetime is approximately 40 years. These units are subjected to severe operating conditions including frequent overloading and they developed cooling oil leaks. The leaks pose environmental risk and leave units without overheating protection making them prone to sudden failures. Also, some of the protective devices on these transformers are no longer working, have become unreliable and replacement parts are not available.

The components that cannot be repaired and are essential for system reliability are scheduled for replacement. Equipment overhaul will be performed where it is feasible to do so. The above work is to be performed within five (5) years. Danforth substation DC breakers are scheduled for replacement in 2004 and the detailed schedule for future years will be determined based on the availability of THES workforce.

The original estimate contained in the 2004 - 2008 Capital Program submission of $1,000,000 was based on historical costs paid by the Commission for comparable work. THES's proposal of $1,893,000 is a "worst case" estimate based on higher labour and equipment costs. This is due to the fact that THES does not feel as comfortable as staff in preparing the estimate since they do not have extensive experience in transit–specific electrical equipment. Staff are confident that the actual billed costs will be significantly lower than the worst case THES estimate. In order to avoid any further service disruptions, staff recommend proceeding with the award of this work. Staff will monitor the work closely in order to ensure only reasonable costs are incurred.

It should be noted that this work must be performed by THES since it is within their premises and in close proximity to their own equipment.

Discussion

On March 12, 2004 a single source proposal was forwarded to the Toronto Hydro Electric System, the owner of the four (4) substations and responsible for the replacement and/or overhaul of the traction power equipment. Staff have reviewed the Toronto Hydro proposal and find it acceptable.

Justification

The existing TTC traction power equipment in THES owned substations has been in use since the early 1950’s. It has exceeded its designed life span and parts for repair are no longer available. DC breakers have become unreliable and rectifier transformers are leaking oil. Failure of these breakers and transformers will result in the shutdown of substations and disruption to revenue service.

April 15, 2004

6-177-6

Attachment: Appendix ‘A’