Document:

f8kex10xxv_pioneer.htm

    Exhibit 10.25

    
      

       

      THE
COMPANY HAS REQUESTED AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE
“COMMISSION”) PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE
CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED
SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “[XX]”.

       

    

     

     

      
        

      

    

     

    THIS
AGREEMENT is made this 5 day of August, 2009,

     

    BETWEEN:

     

    TORONTO
HYDRO-ELECTRIC SYSTEM LIMITED

     

    a
corporation incorporated under the laws of the Province of Ontario

     

    (hereinafter
called the “Buyer”)

     

    and

     

    PIONEER
TRANSFORMERS LIMITED

     

    a
corporation incorporated under the laws of Canada

     

    (hereinafter
called the “Vendor”)

     

    The Buyer
and Vendor are referred to individually herein as a “Party” and collectively as
“the Parties”.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    WHEREAS:

     

    1.           The
Vendor carries on the business of designing, manufacturing and distributing
certain transformers and providing certain services related
thereto;

     

    2.           The
Buyer requires certain transformers and related equipment and services as more
particularly described in Schedule A to this Agreement (“the Transformers”),
which Schedule may be amended from time to time;

     

    3.           The
Buyer has issued, and the Vendor has responded to, a request for proposals
bearing number 05P-074 and request for quotations bearing number
07Q-044;

     

    4.           The
Buyer has determined that the Vendor’s response satisfies the requirements as
set forth. in the request for proposals bearing number 05P-074 and the request
for quotations bearing number 07Q-044;

     

    5.           The
Vendor has agreed to provide the transformers to the Buyer and the Buyer has
agreed to purchase the transformers from the Vendor upon the terms and
conditions as set forth below. In this Agreement, the transformers supplied
pursuant to the request for proposal 05P-074 and the transformer supplied
pursuant to the request for quotations 07Q-44 shall be referred to as the “05
Transformers” and the “07 Transformer”, respectively, and collectively, “the
Transformers”;

     

    6.           The
Vendor has agreed to provide a Warranty for the Transformers as set forth
below;

     

    NOW
THEREFORE, in consideration of the mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

     

    1.           Interpretation

     

    
      	
               
      

            	
              (a)

            	
              All
      capitalized terms in this Agreement shall have the meaning hereby assigned
      to them except where the context otherwise
  requires;

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      recitals hereto shall form an integral part of this Agreement as if
      specifically restated herein;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Words
      denoting the singular include the plural and vice versa and words denoting
      any gender include all genders.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      word “including” shall mean “including without
  limitation”;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Any
      reference to a statute shall mean the statute in force as of the date
      hereof, together with all regulations promulgated thereunder as may be
      amended, re¬enacted, consolidated and/or replaced, from time to time, and
      any successor statute thereto, unless otherwise
  provided;

            

    

     

    
      	
               
      

            	
              (f)

            	
              When
      calculating a period of time within which or following which any act is to
      be done or step taken, the, date which is the reference day in calculating
      such period shall be excluded, and if the last day of such period is a
      Saturday, Sunday or statutory holiday, the period shall end on the next
      Business Day;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (g)

            	
              All
      dollar amounts in this Agreement are expressed in Canadian dollars, unless
      otherwise stated;

            

    

     

    
      	
               
      

            	
              (h)

            	
              The
      division of this Agreement into separate articles, sections, subsections
      and Schedules and the insertion of headings is for convenience of
      reference only and shall not affect the construction or interpretation of
      this Agreement; and

            

    

     

    
      	
               
      

            	
              (i)

            	
              Save
      and except as otherwise expressly defined within the body of this
      Agreement or in Schedule C hereto, words or abbreviations which have well
      known or trade meanings are used herein in accordance with their
      recognized meanings.

            

    

     

    2.           Purchase
and Sale

     

    Subject
to the terms and conditions of this Agreement, and in reliance on the
representations, warranties and conditions set forth in this Agreement, the
Buyer agrees to purchase the Transformers from the Vendor and the Vendor agrees
to supply the Transformers to the Buyer during the Term of this Agreement, but
the Buyer shall be under no obligation to purchase a minimum number of the 05
Transformers from the Vendor, and shall be entitled to purchase transformers of
a similar nature, or otherwise, from any other supplier.

     

    3.           Term

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to any termination rights described herein, this Agreement shall be
      effective as at January 1, 2007 for a term of five (5) years until
      December 31, 2011 (the “Initial
Term”).

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Buyer may, at its sole option, and upon written notice to the Vendor at
      least sixty (60) days prior to the end of the Initial Term, elect to renew
      this Agreement for an additional period of up to five (5) years comprised
      of a single term or any combination of terms totalling up to five (5)
      years (the “Renewal Term”). The terms and conditions contained herein
      shall apply during the Renewal Term, save and except as amended by the
      Parties.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Initial Term and the Renewal Term, if any, shall hereinafter collectively
      be referred to as the “Term” of this
Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              This
      Article 3 shall apply only in respect of the 05
    Transformers.

            

    

     

    4.           Price
and Payment

     

    
      	
               
      

            	
              (a)

            	
              As
      consideration for the sale of the Transformers including, without
      limitation, the representations, warranties and conditions set forth in
      this Agreement,. the Buyer agrees to pay to the Vendor the amount in
      Canadian dollars (the “Purchase Price”) as detailed in Schedule B to this
      Agreement, for the 05 Transformers and the 07 Transformer. The purchase
      price for the 05 Transformers and the. 07 Transformer shall hereinafter be
      referred to as the “05 Purchase Price” and the “07 Purchase Price”,
      respectively, and collectively as the “Purchase Price”. The Purchase Price
      includes all applicable taxes, duties, packaging, handling and delivery
      costs.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              The
      05 Purchase Price shall remain firm for the first three (3) months of the
      Initial Term of this Agreement, and shall thereafter be reviewed and
      agreed to in writing by both Parties at intervals of three (3) months
      (“Quarterly Review Periods”). In the event that there is no increase in
      the 05 Purchase Price after the price reviews for any four (4) consecutive
      Quarterly Review Periods, pricing shall thereafter be reviewed after
      intervals of one (I.) year (“Annual Review Periods”). The first Annual
      Review Period shall commence on the next day after the last Quarterly
      Review Period. The Purchase Price shall be agreed upon by the Parties and
      shall be effective as of the first day of the Quarterly or Annual Review
      Period for which it was to be
determined.

            

    

     

    
      	
               
      

            	
              (c)

            	
              In
      the event of an abnormal increase or decrease in the Vendor’s cost of
      production for the Transformers during an Annual Review Period
      attributable to the cost of raw materials, the existence of which increase
      or decrease, and the reason therefor, shall be mutually agreed to by the
      parties, the parties shall agree upon an increase or decrease in the
      Purchase Price, as may be appropriate. The date on which this increase or
      decrease in the’ Purchase Price is agreed upon shall constitute the first
      day of a Quarterly Review Period, and the Purchase Price shall thereafter
      be reviewed and agreed upon in accordance with this Article
    4.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Vendor shall submit invoices to the Buyer on a monthly basis for the 05
      Transformers and within thirty (30) days of delivery of the 07
      Transformer, which invoices shall be in accordance with Article 7 of this
      Agreement. The Buyer shall make payment to the Vendor within thirty (30)
      days of its receipt of an invoice submitted in accordance with Article 7 unless the
      Buyer disputes part or all of a particular invoice. For the 05
      Transformers only, if the Buyer pays an invoice within three (3) days of
      receipt, the Vendor agrees that the Buyer is entitled to a rebate equal to
      [XX] per cent (%) of the invoice amount. All such rebates shall be paid by
      the Vendor to the Buyer within three (3) months of the date of the invoice
      to which they relate. In the event of a Dispute, the Buyer shall advise
      the Vendor, in writing, within ten (10) days of receipt of the invoice,
      the basis for the Dispute and shall pay the Vendor any undisputed portion
      of the invoice. If the Buyer disputes part of an invoice but pays the
      undisputed portion of the invoice within ten (10) days of receipt of the
      invoice, then the Buyer will he entitled to a discount equal to [XX] per
      cent (1.A) on the undisputed portion of the invoice. The Dispute shall be
      resolved in accordance with Article 21, and the non-payment by the Buyer
      for any disputed amount shall not be considered a default under Article
      13(b) of this Agreement.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Invoice
      amounts shall be in Canadian dollars. Delivery Transformers and their
      components shall be delivered. in accordance with the terms,
      specifications and schedules included in Schedule B to this Agreement. The
      Vendor shall immediately notify the Buyer, in writing, of any.
      circumstances known or suspected that may cause delay in delivery of the
      Transformers. Unless otherwise agreed in writing, the Buyer will not
      accept deliveries in excess of those specified in this Agreement or any
      purchase order made hereunder and such deliveries shall be entirely at the
      Vendor’s risk and may be returned by the Buyer to the Vendor at the
      Vendor’s sole cost and expense.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6.           Risk
of Loss

     

    All
Transformers shall be safely and securely packed for shipment. Title to and risk
in the Transformers shall pass to the Buyer on delivery at the Buyer’s location.
All delivery costs, including insurance, are for the account of the
Vendor.

     

    7.           Invoice
Requirements

     

    The
Vendor shall render invoices in accordance with the following:

     

    
      	
               
      

            	
              (a)

            	
              all
      invoice amounts shall be in Canadian dollars;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      invoices shall be in a form acceptable to the Buyer, rendered in
      triplicate, and be accompanied by a bill of
  lading.

            

    

     

    8.           Time
of the Essence

     

    Time is
of the essence in the Agreement. The Vendor shall deliver all Transformers in
accordance with the dates and times for performance and delivery specified in
Schedule B hereto, and the Buyer shall have the right to take possession of and
use any completed or partially completed or delivered portions notwithstanding
any provisions to the contrary.

     

    9.           Force
Majeure

     

    Either
Party will be relieved of liability for delays in delivery or performance
because of the intervention of a Force Majeure. In no event shall lack of
finances be considered as a Force Majeure. The Party affected by the Force
Majeure shall as soon as reasonably practicable, give prompt notice thereof
stating the date and extent of the Force Majeure and the cause thereof and, upon
cessation of the Force Majeure, take all reasonable steps to resume compliance
with its obligations. If a delay in delivery or performance extends beyond ten
(10) days, either Party may terminate the Agreement by providing written notice
thereof to the other Party.

     

    10.           Warranty

     

    The
Transformers, or parts thereof, manufactured or distributed by the Vendor, are
expressly warranted to be free from defects in workmanship or materials when
subjected to normal and proper use for a period of five (5) years from the date
of shipment of such equipment (“the Warranty”). For the 07 Transformer only, the
Warranty as it applies to oil leaks shall apply for a period of three (3) years,
but shall in all other respects apply for five (5) years. Notice of any claim
arising out of this Warranty shall be made in writing within the Warranty
period. Without limiting the. Buyer’s right to claim for all damages, losses,
expenses, and costs of whatever nature arising out of the Vendor’s breach of
this Agreement, if any Transformer supplied under this Agreement is deficient in
workmanship or material, the Vendor shall, at the sole option of the Buyer,
replace the Transformer or refund the Buyer the price paid for the Transformer.
Additionally, if a Transformer should fail within the Warranty Period then the
Vendor will pay to the Buyer the costs associated with labour and other
associated costs of removal and replacement of the failed unit to a maximum
actual cost of two thousand two hundred dollars ($2,200) per failure occurrence.
This Warranty shall survive the expiration or termination of this
Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    11.           Dedicated
Inventory

     

    The
Vendors shall continuously maintain a quantity of stock dedicated to the
exclusive use of the Buyer (“Dedicated Inventory”). The composition of this
Dedicated Inventory shall consist of one unit of Toronto Hydro stock code
664-3201 and one unit of Toronto Hydro stock code 664- 3202, or their
equivalents should the stock codes be changed. The Vendor shall deliver items
from the Dedicated Inventory to the Buyer within forty-eight (48) hours of
receipt of notification from the Buyer, on an as needed basis.

     

    12.           Inspection

     

    All
Transformers will be subject to final inspection and approval by the Buyer after
delivery, and notwithstanding any prior payment. In the event that Transformers
are delivered which are not in conformity with the terms, conditions and
specifications of this Agreement, the Buyer may, at its option:

     

    
      	
               
      

            	
              (a)

            	
              reject
      the good’s and require the Vendor to immediately deliver replacement
      goods;

            

    

     

    
      	
               
      

            	
              (b)

            	
              negotiate
      with the Vendor an agreeable reduction in the purchase price of the
      delivered, non-conforming goods; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              repair/rework
      the delivered non-conforming goods or cause them to be repaired/reworked
      at the Vendor’s expense, which expense shall, constitute a proper set-off
      by the Buyer against amounts otherwise due the Vendor under this
      Agreement.

            

    

     

    13.           Termination

     

    
      	
               
      

            	
              (a)

            	
              The
      Buyer may, for its convenience and at its sole option, terminate the
      Vendor’s services under this Agreement by providing at least sixty (60)
      days prior written notice of such termination, whereupon the Vendor shall
      stop performance of the Vendor’s services under the Agreement, except as
      may be necessary to carry out such termination and take any other action
      which the Buyer may reasonably direct. Without limiting the generality of
      the foregoing, Buyer may terminate this Agreement hi the event that its
      design specification requirements change. Buyer agrees that it will not
      terminate this Agreement for the sole purpose of purchasing the same
      Transformers as are being supplied under this Agreement from a competitor
      of the Vendor.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the Vendor fails to fulfil its material obligations under this Agreement,
      including, without limitation, the failure to meet the delivery schedule
      contained in Schedule B hereto, then the Buyer may, without prejudice to
      any other right or remedy the Buyer may have, notify the Vendor in writing
      that the Vendor is in default of its contractual obligations and instruct
      the Vendor to correct the default within five (5) Business Days
      immediately following the receipt of such notice. If the Vendor fails to
      correct the default in the time specified then, without prejudice to any
      other right or remedy the Buyer may have, the Buyer may. either correct
      such default and deduct the cost thereof from any payment then or
      thereafter due to the Vendor and/or terminate the
    Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      bankruptcy or insolvency proceedings are instituted by or against the
      Vendor or the Vendor is adjudicated a bankrupt, becomes insolvent, makes
      an assignment for the benefit of creditors or proposes or makes
      arrangements for the liquidation of its debts, or a receiver or receiver
      and manager is appointed with respect to all or part of the assets of the
      Vendor, the Buyer may, without prejudice to any other rights or remedies
      it may have, immediately terminate the
  Agreement.

            

    

     

    14.           Liability
and Indemnification

     

    Subject
to this Article, the Vendor shall be liable for and shall indemnify and save the
Buyer and its Affiliates (as defined in the Business Corporations Act (Ontario))
and each of their respective officers, directors, employees, managers, advisors
and agents (together and hereinafter the “Representatives”) harmless from and
against all loss, damage or injury and all actions, claims, losses, damages,
costs, expenses, obligations and liabilities arising out of any material breach
of the. Vendor’s obligations under the Agreement and/or any of the acts or
omissions of the Vendor or any of its employees, agents or subcontractors,
whether negligent or otherwise. The Vendor’s liability and duty to indemnify
under this Article shall not exceed five million dollars ($5,000,000) per
occurance. This Article shall survive the termination of this
Agreement.

     

    15.           Insurance

     

    The
Vendor shall, during the term of this Agreement, and at its own expense,
maintain and keep in full force and effect:

     

    
      	
               
      

            	
              (a)

            	
              commercial
      general liability insurance on an occurrence basis having a minimum
      inclusive coverage limit, including personal injury and property damage,
      of not less than five million dollars ($5,000,000) per occurrence, which
      shall be extended to cover contractual liability, products completed,
      operations liability, owners/contractors protective liability and must
      also contain a cross liability clause and a severability of interest.
      clause; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              automobile
      liability insurance on all owned and non-owned vehicles used in •
      connection with this Agreement and such insurance coverage shall have a
      limit of not less than two million dollars ($2,000,000) per vehicle, in
      respect of bodily injury (including passenger hazard) and property damage
      inclusive of any one accident and mandatory accident
    benefits.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    The Buyer
and its Affiliates must be added as an additional insured under the above-noted
insurance policies. When requested, the Vendor shall provide the Buyer with
proof of the above-noted insurance.

     

    16.           Intellectual
Property Protection

     

    The
Vendor expressly warrants that the manufacture, delivery, sale or use of the
Vendor’s goods or services will not infringe any Canadian or foreign patents,
trademarks, copyrights, industrial design or other intellectual property rights
and the Vendor shall indemnify and save the Buyer harmless from all claims,
judgments and decrees that may be entered against the Buyer and against, all
damage, liability, costs and expenses (including legal fees and other attendant
costs and expenses) the Buyer incurs by reason of any infringement or claim
thereof

     

    17.           Confidential
Information

     

    The
Parties agree and acknowledge that, subject to applicable laws or court
order,

     

    
      	
               
      

            	
              (a)

            	
              each
      Party (the “Receiving Party”) shall maintain in strict confidence any and
      all proprietary and confidential information about the business,
      operations or customers of the other Party or any of their Affiliates,
      which it acquires in any form from the other Party (the “Disclosing
      Party”) by virtue of this Agreement (“Confidential Information”) and will
      not disclose to any third party or make use of such Confidential
      Information for itself or any third party without the prior written
      consent of the Disclosing Party;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Buyer is subject to the Municipal Freedom of Information and Protection of
      Privacy Act (Ontario) (“MFIPPA”) and may be required to disclose
      Confidential Information concerning the Agreement in accordance with the
      provisions of MFIPPA.

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      Party shall be entitled to all remedies available at law or in equity to
      enforce, or seek relief in connection with any breach of obligations
      pursuant to this section;

            

    

     

    
      	
               
      

            	
              (d)

            	
              upon
      termination of the Agreement, or upon ten (10) days prior written notice
      from the Disclosing Party requesting return of any or all Confidential
      Information, the Receiving Party shall forthwith return all such
      information to the Disclosing Party without retaining any copies
      thereof.

            

    

     

    18.           Assignment

     

    Save and
except for the Buyers’ right to assign this Agreement to any of its Affiliates,
neither Party may assign this Agreement or any of its rights or obligations
hereunder, in whole or in part, without the prior written consent of the other
Party, which consent may not be unreasonably withheld.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    19.           Relationship
of the Parties

     

    Nothing
contained in the Agreement shall be construed to constitute either Party as the
partner, employee or agent of, or joint venturer with the other Party, nor shall
either Party have any authority to bind the other in any respect, it being
intended that each Party shall remain an independent contractor of the
other.

     

    20.           Representations
and Warranties

     

    The
Vendor represents and warrants to the Buyer that:

     

    
      	
               
      

            	
              (a)

            	
              it
      has the corporate power and authority to enter into this Agreement and to
      perform its obligations hereunder, and that this Agreement constitutes the
      legal, valid, and binding obligation of the Vendor, enforceable against
      the Vendor in accordance with its
terms;

            

    

     

    
      	
               
      

            	
              (b)

            	
              it
      is the absolute beneficial owner of the Transformers, with good and
      marketable title, free and clear of all liens, charges, encumbrances or
      rights of others and is exclusively entitled to possess and dispose of the
      same;

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      Transformers it supplies shall be in compliance with all Applicable Laws
      and will conform to the specifications, drawings, samples, symbols or
      other descriptions as specified in the Schedule A hereto, as may be
      amended from time to time, and will be fit and sufficient for their
      intended purpose, merchantable and free from defects in material and
      workmanship. This warranty is in addition to all other warranties
      specified in this Agreement or implied by law and shall survive acceptance
      and payment;

            

    

     

    21.           Dispute
Resolution

     

    
      	
               
      

            	
              (a)

            	
              Any
      and all disputes, disagreements, controversies, questions or claims
      arising out of or in relation to this Agreement which arise between the
      Parties shall be referred to, collectively, as a
  Dispute;

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Parties undertake to cooperate fully and in good faith attempt to promptly
      resolve any Dispute by negotiation between their respective
      representatives, and further, upon the request of either party, executive
      officers of such Party. If the Dispute is resolved, such resolution shall
      be evidenced by an instrument in
writing;

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      a Dispute has not been resolved within fifteen (15) days of a Party’s
      request for executive officer negotiation, the Parties may agree to submit
      the dispute to resolution. The Parties shall bear the costs of any
      mediation equally. If the matter is resolved through mediation, such
      resolution shall be evidenced by an instrument in writing.. Mediation
      shall be considered to have failed if either Party, at any time, gives
      written notice to such effect to the other
  Party;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      Dispute that cannot be amicably settled by negotiation or mediation shall
      be finally settled by compulsory arbitration. Such arbitration shall be
      conducted in accordance with the Arbitration Act (Ontario) and shall take
      place in the City of Toronto. The Parties will bear the cost of any
      arbitration under this Article 21 in the manner specified by the
      arbitrator(s). If the arbitrator(s) do(es) not specify the cost, each.
      Party shall bear its own costs and will share the costs of the
      arbitrator(s) equally.

            

    

     

    
      	
               
      

            	
              (e)

            	
              This
      Article shall survive the expiration or termination of this
      Agreement.

            

    

     

    22.           Reporting

     

    On a
monthly basis, throughout the Term of this Agreement, the Vendor shall submit to
the Buyer a detailed report in accordance with the Buyer’s requirements
providing information related to the status of deliveries under this Agreement
and including an account of any delays, quality control or other issues
experienced by the Vendor during the month which is the subject of the
report.

     

    23.           Severability

     

    In the
event that any of the covenants herein shall be held unenforceable or declared
invalid for any reason whatsoever, to the extent permitted by law, such
unenforceability or invalidity shall not affect the enforceability or validity
of the remaining provisions of the Agreement and such unenforceable or invalid
portion shall be severable from the remainder of the Agreement.

     

    24.           No
Waiver

     

    A waiver
of any provisions of this Agreement shall not constitute either a waiver of any
other provisions or a continuing waiver, unless otherwise expressly indicated in
writing.

     

    25.           Enurement

     

    This.
Agreement and everything contained herein shall enure to the benefit of, and be
binding upon, the Parties hereto and their respective successors and permitted
assigns.

     

    26.           Notice

     

    All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be deemed (in the absence of evidence of prior receipt) to
have been validly and effectively given on the same day if personally served,
the next Business Day if sent by facsimile or similar means of recorded
communication or on the fifth Business Day next following where sent by
registered mail.  Notices shall be addressed as follows:

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    to the
Buyer:

     

    
      	 	Name: 	Joanne
    Kehoe
	 	Title:     	Supervisor, Supply
      Chain
	 	Address:.  	500 Commissioners
      Street, Toronto, ON., M4M 3N7
	 	Telephone: 	416-542-2505
	 	Facsimile:   	416-542-2663
	 	 	 
	to the
    Vendor:
	 	 	 
	 	Name:   	Raymond
    Haddad
	 	Title:   	General
      Manager
	 	Address:   	612 Bernard Road,
      Granby, PQ., J2G 8E5
	 	Telephone: 	450-378-9018
	 	Facsimile:  	450-378-0626

    

     

    27.           Permits
and Applicable Laws

     

    The
Vendor shall, at its sole expense, obtain and maintain during the term of the
Agreement, all permits, licences and approvals required by law to perform its
obligations under the Agreement. The terms and conditions of the Agreement shall
be carried out in strict compliance with all federal, provincial, and local
laws, orders in council, directives, rules, regulations, codes and ordinances of
the Government of Canada. Without limiting the generality of the foregoing, the
Vendor shall comply with the Persona! Information Protection and Electronic
Documents Act (Canada) (“PIPEDA”) and any other applicable privacy legislation
with respect to any personal information it collects, uses or discloses in
connection with the Agreement and shall indemnify and save harmless the Buyer
and its Representatives from and against any and all claims, demands, suits,
losses, damages, causes of action, fines or judgments (including related
expenses and legal costs) they may incur related to or arising out of any
non-compliance therewith.

     

    28.
Governing Law

     

    The
Agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein. The Parties
irrevocably attorn to the jurisdiction of the courts of Ontario with respect to
any matter arising under or related to the Agreement.

     

    29.           Entire
Agreement

     

    
      	
               
      

            	
              (a)

            	
              This
      Agreement, including all Schedules hereto, constitutes the entire
      agreement between the Vendor and the Buyer relating to the subject matter
      hereof. This Agreement supersedes all prior correspondence,
      representations, warranties, covenants, collateral undertakings,
      discussions, negotiations, understandings or agreements, oral or
      otherwise, express or implied, unless otherwise provided in this
      Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              No
      modification or amendment to this Agreement shall be binding on the Buyer
      unless agreed to in writing.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    30.           Schedules

     

    All
schedules described in this Agreement shall be deemed to be incorporated in and
made part of this Agreement, except that if there is any inconsistency between
this Agreement and the provisions of any schedule, the, provisions of this
Agreement shall prevail. Schedule A may be amended from time-to-time by the
Buyer to reflect changes in the technical specifications for the Transformers.
Amended specifications shall form part of this agreement, and shall supersede
and replace all prior versions of the same specification.

     

    IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and
year first written above:

     

    
      	
              PIONEER
      TRANSFORMERS LIMITED

            	
              TORONTO
      HYDRO-ELECTRIC SYSTEM

              LIMITED

            
	 
      	 	 
      	 
	
              Per: /s/ Raymond Haddad

            	 	
              Per:
      /s/  Johanne Kehoe

            	 
	 
      	 	 
      	 
	
              Name:
      Raymond Haddad

            	 	
              Name:  
      Johanne Kehoe

            	 
	 
      	 	 
      	 
	
              Title
      :V-P of Operations

            	 	
              Title:  
      Supervisor, Supply Chain

            	 
	 
      	 	 
      	 
	
              I
      have authority to bind the corporation.

            	 	
              I
      have authority to bind the Buyer.

            	 

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
A

     

    The
following specifications, as may be amended from time-to-time, form part of this
Agreement:

     

    05
Transformers:

     

    DT-SW-02R1
– Three. Phase Subway-Type Distribution Transformers with Primary Disconnecting
& Grounding

     

    D-14-11R1
– Three Phase Network Transformers with Primary Disconnecting & Grounding
Switches

     

    PT-01R1 –
500 to 4000 MVA 27.6kV Grd Y/16000 or 27.6 kV Delta to 208 GrdY/120V or 600
GrdY/347V Power Transformer

     

    07
Transformer:

     

    ED 384
(and the addendum thereto) – Off-Load Tap Changing 10000/13333 kVA 60
Cycle,3Phase Outdoor Station Type Transformers

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

     

     

    TORONTO
HYDRO

     

    TECHNICAL
SPECIFICATION

     

    THREE
PHASE SUBWAY-TYPE

     

    DISTRIBUTION
TRANSFORMERS WITH PRIMARY

     

    DISCONNECTING
& GROUNDING

     

    SPECIFICATION
NO. DT-SW-02R1

     

    

     

    
      	PREPARED
      BY: 	/s/ H.
      Stucklus  	 
	 	ENGINEER, STANDARDS
      & MATERIALS SECTION	 
	 	 	 
	REVIEWED
      BY:  	/s/ L.
    Pen  	 
	 	SUPERVISOR,
      STANDARDS & MATERIALS SECTION	 

    

     

     

    
      	
              CERTIFICATE OF APPROVAL

              THIS
      TECHNICAL SPECIFICATION MEETS THE SAFETY REQUIREMENTS
      OF SECTION 4 OF ONTARIO REGULATION 22/04

            
	
               

               /s/ J.
    Petras  

            	
              Aug. 31/-5

            
	
              JOHN
      PETRAS

              PROFESSIONAL
      ENGINEER

            	
              DATE

              MANAGER,
      STANDARD & MATERIALS

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    THREE
PHASE SUBWAY-TYPE

     

    DISTRIBUTION
TRANSFORMERS

     

    SCOPE

     

    
      	
              i

            	
              This
      specification supplements the requirements of CSA Standard
      CAN/CSA-C199¬M1982 for Toronto Hydro Three Phase Subway - Type
      Distribution Transformers, Type ONAN, suitable for operation in a
      partially or totally submerged condition, with exposure to corrosive
      conditions, and for ratings up to 2500 kVA for installation on the Toronto
      Hydro 13800 V system.

            

    

     

    
      	
              ii

            	
              Except
      where altered by the requirements of this specification, all transformers
      shall be designed and manufactured in accordance with CAN/CSA-C 199-
      M1982.

            

    

     

    
      	
              iii

            	
              The
      numbering of clauses in this specification is identical to that used in
      CSA Standard CI99. Any additional or modifying statements added to the
      same numbered CSA clause shall form part of this specification and the
      requirements, as given in this specification, shall govern. Where no
      reference is made, the CSA Standard C199 applies as
    written.

            

    

     

    
      	
              iv

            	
              All
      specifications mentioned herein shall be the latest
    editions.

            

    

     

    

     

    REFERENCE
PUBLICATIONS

    ANSI
Standard

     

    
      	
              C57.12.90

            	
              Test
      Code for Liquid-Immersed Distribution, Power, and Regulating Transformers
      and Guide for Short-Circuit Testing of Distribution and Power
      Transformers

            

    

     

    
      	
              ANSI\EEE
      386-1985

            	
              Separable
      Insulated Connectors for Power Distribution Systems above 600
      V.

            

    

    
    

    

    
      	
              C57.12.28

            	
              Padmounted
      Equipment – Enclosure Integrity

            

    

    

    
      	
              C57.12.32-2002

            	
              IEEE
      Standard for Submersible Equipment – Enclosure
  Integrity

            

    

    

    
      	
              C57.12.40-1994

            	
              Requirements
      for Secondary Network transformers, Subway and Vault Types (Liquid
      Immersed)

            

    

    
       

      CSA
Standards

    
    

    
      	
              C199-M1982

            	
              Three
      Phase Network Transformers

            

    

    

    
      	
              C2-M91

            	
              Single-Phase
      and Three-Phase Distribution Transformers; Types ONAN and
    LNAN

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              C50

            	
              Insulating
      Oil, Electrical for Transformers and
Switches

            

    

    

    
      	
              C22.2
      No.0.15

            	
              Adhesive
      Labels

            

    

    

    
      	
              CAN3-108.3.1-1987  

            	
              Tolerable
      Limits and Methods of Measurement of Electromagnetic Interference
      from Alternating Current High Voltage Power Systems 0.15 MHz-30
      MHz.

            

    

    
    

     

    ASTM
Standard

     

    
      	
              D1816

            	
              Test
      Method for Dielectric Oil

            

    

    

    
      	
              B6-1

            	
              Insulating
      Oil for New Electrical Apparatus

            

    

    

    ISO
Standards

     

    
      	
              9001

            	
              Quality
      Systems- Model for Quality Assurance in Production, Installation and
      Servicing

            

    

    

    
      	
              3.2

            	
              Service
      Requirements

            

    

     

    
      	
              3.2.1

            	
              Operating
      conditions associated with Category 2 shall
  apply.

            

    

     

    
      	
              4.1

            	
              Tanks,
      General

            

    

     

    
      	
              4.1.2

            	
              The
      maximum dimensions for the transformer are given in Figure 1 attached to
      this specification.

            

    

     

    
      	
              4.1.3

            	
              The
      thicknesses for the tank wall, cover and bottom as shown in CSA Cl 99
      Table 3 shall be changed to read a minimum of 8
  mm.

            

    

     

    
      	
               
      

            	
              Respondents
      are requested to submit a priced proposal for the fabrication of a
      stainless steel tank and provide rationale based on experience that shows
      the technical advantages for the use of stainless steel over finished mild
      steel. Toronto Hydro proposes to carry out a life cycle evaluation of each
      type of tank and determine which tank provides the lower
    cost.

            

    

     

    
      	
              4.1.4

            	
              Liquid
      Insulant

            

    

     

    
      	
               
      

            	
              For
      ONAN type transformers, the dielectric oil shall meet the minimum
      requirements of CSA C50 and shall be Class B, Type II. The dielectric oil
      shall be new and shall contain no detectable amount of PCB’s in accordance
      with CSA C50. The minimum dielectric strength at time of shipment shall
      not be less than 40 kV when tested in accordance with ASTM D1816 using a 2
      mm electrode spacing.

            

    

     

    
      	
              4.2.3

            	
              The
      access opening dimensions shall be increased for the circular opening to.
      510 mm and for the rectangular one to 355 mm x 460 mm. The opening shall
      provide access to winding, tap changer and bushing terminals and shall
      project approximately 10 mm above the tank surface. All covers shall be
      equipped with handles or loops for
lifting.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              4.3

            	
              Tank
      Finish

            

    

     

    
      	
              4.3.2

            	
              Category
      2 service requirements apply. Add the following finishing
      requirements:

            

    

     

    
      	
               
      

            	
              The
      standard exterior finish shall be light grey number 70, Munsell notation
      51307.0/0.4. In addition, the exterior finish shall conform to ANSI
      C57.12.28-1988, clause 5.4, except the salt spray acceptance test criteria
      shall be 3000 hours.

            

    

     

    
      	
               
      

            	
              Submersible
      transformers on the Toronto Hydro system are subjected to a very severe
      salt and wet environment and often display heavy corrosion. Toronto Hydro
      is prepared to consider an alternative paint standard such as IEEE
      Standard C57.12.32 – 2002 if the Respondent can show evidence that it
      provides a superior performance under these adverse
      conditions.

            

    

     

    
      	
              4.4

            	
              Moving
      Facilities

            

    

     

    
      	
              4.4.2

            	
              The
      transformer tank shall be provided with four jack steps 140mm wide, 76mm
      high and not less than 90mm deep, located at a. minimum distance of 100nun
      above the base.

            

    

     

    
      	
              4.5

            	
              Bushings
      and Terminations

            

    

     

    
      	
              4.5.1

            	
              The
      high and low voltage bushing locations are shown in the Figure 1 at the
      end of this specification. Provisions shall be made so that the bushings
      can. be removed and replaced without removing the transformer core from
      the tank.

            

    

     

    
      	
              4.5.2

            	
              The
      high voltage connection shall be three core lead covered cable. Clamp type
      connectors are to be used and are to be suitable for #210 copper or #4/0
      aluminum conductors. The wiping sleeve shall be equipped with a vent hole
      with threaded plug. If predrilled, the wiping sleeve shall be capped, so
      that moisture cannot enter the chamber during transportation and outdoor
      storage.

            

    

     

    
      	
              4.5.5

            	
              Low-voltage
      terminals shall be spade-type sized and drilled according to CSA Standard
      C2-M1982, Figure 3, diagram IV (4 hole) and diagram V (6 hole) as
      applicable. The number of holes per phase are as
  follows:

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    

    
       

      Table 1:
Number of Holes Per Phase on Low-Voltage Termination

    

    
    

    

    
      	
              4.6

            	
              Low
      Voltage Neutral

            

    

     

    
      	
              4.6.1

            	
              The
      neutral bushing location is shown in the Figure 1 at the end of this
      specification. Sub-section (a) applies for voltage 208Y/125 and (b) for
      voltages 433Y/250 and 600Y/347.

            

    

     

    
      	
              4.6.2

            	
              The
      number of holes shall be according to Table
1.

            

    

     

    
      	
              4.7

            	
              Grounding

            

    

     

    
      	
               
      

            	
              Also,
      connectors such as Bundy KPA 28 or equivalent that can accept cable sizes
      #1/0 to # 4/0 shall be provided.

            

    

     

    
      	
              4.8

            	
              Tap
      Changer

            

    

     

    
      	
              4.8.1

            	
              The
      off-load tap changer shall be located on the terminal side of the
      transformer. The tap changer handle shall be designed to allow the use of
      a standard Toronto Hydro padlock in any position (see drawing M-3-30
      attached to this specification).

            

    

     

    
      	
               
      

            	
              A
      separate warning sign shall be mounted close to the tap changer handle and
      shall be engraved using bold letters of at least 15mm high as
      follows:

            

    

     

    
      	
               
      

            	
              OPERATE
      TAP CHANGER SWITCH ONLY WHEN TRANSFORMER IS
  DE-ENERGIZED

            

    

     

    
      	
              5.

            	
              ELECTRICAL
      CHARACTERISTICS

            

    

     

    
      	
              5.1.2

            	
              Item
      (b)(65° rise) shall apply.

            

    

     

    
      	
              5.3

            	
              Voltage
      Rating

            

    

     

    
      	
              5.3.1

            	
              The
      nominal primary voltage shall be 13,800 volts, delta connection, and the
      nominal secondary voltages shall be 216Y/125 volts, 433Y/250 volts, and
      600Y/347 volts. Tests and calculations shall be based on design ratios of
      110:1, 55:1 or 40;1, respectively.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              5.3.2

            	
              The
      full load impedance shall not be less than
4%

            

    

     

    
      	
              6.

            	
              HIGH VOLTAGE
      SWITCH

            

    

     

    
      	
              6.1.1

            	
              The
      primary switch is to be designed for 13,800 volt, three-phase, 60Hz
      operation and shall have a nominal rating of 15,000 volts. The dielectric
      strength of the primary switch in the open position shall be sufficient to
      permit periodic five-minute cable tests at 45 kV D.C. in the
      field.

            

    

     

    
      	
               
      

            	
              The
      switch, non-interrupting type, shall be designed to operate in the
      sequence of open, close,: and ground as
follows:

            

    

     

    
      	
              OPEN:

            	
              incoming
      feeder is disconnected from
transformer.

            

    

     

    
      	
              CLOSED:

            	
              incoming
      feeder is connected to transformer.

            

    

     

    
      	
              GROUND:

            	
              incoming
      feeder is solidly grounded and short circuited between
    phases.

            

    

     

    
      	
               
      

            	
              The
      blade position shall be clearly marked on the front of the switch. The
      primary switch shall be designed so that a standard Toronto Hydro padlock
      (see drawing M¬3-30 attached to this specification).can be used to lock
      the switch in any position.

            

    

     

    
      	
              6.1.4

            	
              The
      primary switch operating handle shaft height shall not be excessively high
      or low. The most desirable heights are given in the table of Figure 1. The
      maximum operating force of the operating handle shall not exceed 180
      Newtons (401bf).

            

    

     

    
      	
              6.2.3

            	
              The
      primary switch shall have a nominal continuous current rating of 200
      amperes. It shall be capable of withstanding a short-circuit current of
      25kA rms symmetrical for 2 seconds, and 40kA rms asymmetrical for 0.2
      seconds without causing any damage to contacts, leads, or other parts, or
      permitting sufficient heat to be generated which could seriously lower
      insulating value of the oil or generate gases to increase the pressure to
      dangerous levels.

            

    

     

    
      	
              9.

            	
              TESTS

            

    

     

    
      	
               
      

            	
              In
      addition to clauses 9.1 to 9.7, the following shall
  apply.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Type
      Tests

            

    

     

    
      	
               
      

            	
              Type
      tests shall be performed and submitted by the successful Respondent(s)
      when changes are made to either the transformer design, manufacturing
      process, component(s) or raw
material.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              The
      type tests for temperature rise, BIL, RN, sound level and short circuit
      shall be carried out on representative unit(s) on order when requested by
      Toronto Hydro unless Certified Test Reports are made available from other
      units whose equivalence with regard to the required tests are acceptable
      to Toronto Hydro. The successful Respondent(s) must submit such Certified
      Test Reports for approval prior by Toronto Hydro upon Toronto Hydro’s
      initial order of the transformer.

            

    

     

    
      	
               
      

            	
              Respondents
      shall include in their Proposal, in addition to unit prices, the cost for
      performing each of the type tests noted should the Certified Type Test
      results, based on similar units, prove unacceptable to Toronto
      Hydro.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Routine
      Tests

            

    

     

    
      	
               
      

            	
              In
      addition to CSA C2 routine tests the following shall be
      conducted:

            

    

     

    
      	
               
      

            	
              1)

            	
              Resistance
      measurement

            

    

     

    
      	
               
      

            	
              2)

            	
              With
      reference to the tank leakage routine tests specified in the CSA C2,
      clause 9.2 (h), the manufacturer is required to submit to TH for approval,
      a detailed explanation of the test procedure and test parameters that he
      proposes to use to conduct the tank leak test on each
  unit.

            

    

     

    
      	
               
      

            	
              3)

            	
              An
      impulse test shall. be conducted on all
units.

            

    

     

    
      	
              11.

            	
              OPTIONAL
      ITEMS

            

    

     

    
      	
              11.1

            	
              The
      following optional items shall be
provided:

            

    

     

    
      	
               
      

            	
              (a)

            	
              An
      automatic pressure relief devise per CSA C2 section
  8.3

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      viewing window shall be provided on the front of the disconnecting and
      grounding switch such that the switch blades and the electrical interlock,
      including their operating states, are visible through the viewing window.
      The viewing window shall be scratch resistance and adequately strong to
      withstand the mechanical force under an electrical
  fault.

            

    

     

    
      	
               
      

            	
              (g)

            	
              High
      voltage bushing connector for copper or aluminum cable sized to
      transformer capacity for ANSI loading
  conditions.

            

    

     

    
      	
               
      

            	
              SUPPLEMENTARY
      REQUIREMENTS

            

    

     

    The
following requirements are in addition to those outline above.

     

    
      	
              12.

            	
              QUALITY
      ASSURANCE

            

    

     

    
      	
               
      

            	
              Transformers
      shall be designed and manufactured to in accordance with a quality
      program, approved by a certified registrar to ISO
  9001.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              13

            	
              MARKINGS

            

    

     

    
      	
              13.1

            	
              Transformer
      Nameplate

            

    

     

    
      	
               
      

            	
              In
      addition to the information to be contained in the combination nameplate
      and connection diagram as outlined in CSA Standard C199, the nameplate
      shall contain the following
information:

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro Purchase Order Number

            

    

    
      	
               
      

            	
              Total
      weight of the insulating liquid

            

    

    
      	
               
      

            	
              Total
      volume of the insulating liquid

            

    

    
      	
               
      

            	
              PCB
      content

            

    

     

    
      	
               
      

            	
              The
      nameplate shall contain the following warning in bold
    prints

            

    

     

    
      	
               
      

            	
              (A)

            	
              OPERATE
      THE PRIMARY DISCONNECTING AND GROUNDING SWITCH ONLY WHEN THE. TRANSFORMER
      AND INCOMING PRIMARY FEEDER ARE
DE-ENERGIZED.

            

    

     

    
      	
               
      

            	
              SWITCH
      IN OPEN POSITION:

            

    

     

    
      	
               
      

            	
              HIGH
      VOLTAGE LINE OPEN AND DISCONNECTED FROM.
  TRANSFORMER.

            

    

     

    
      	
               
      

            	
              SWITCH
      IN GROUND POSITION:

            

    

     

    
      	
               
      

            	
              HIGH
      VOLTAGE LINE GROUNDED, AND
SHORT-CIRCUITED.

            

    

     

    
      	
               
      

            	
              SWITCH
      IN CLOSED POSITON:

            

    

     

    
      	
               
      

            	
              HIGH
      VOLTAGE LINE CONNECTED TO
TRANSFORMER

            

    

     

    
      	
               
      

            	
              (B)

            	
              OPERATE
      THE TAP CHANGER SWITCH ONLY WHEN THE TRANSFORMER IS
      DE-ENERGIZED.

            

    

     

     

    
      	
               
      

            	
              13.2

            	
              High
      Voltage and Low Voltage Terminal
Markings

            

    

     

    
      	
               
      

            	
              The
      high and low, voltage terminals shall be stenciled H1, H2, etc. and X ,
      X2, X3, etc: respectively in minimum 50mm high white
      lettering.

            

    

     

    
      	
               
      

            	
              13.3

            	
              Stock
      Code, kVA and Voltage
Markings

            

    

     

    
      	
               
      

            	
              The
      stock code number shall be stenciled on the front of the switch chamber.
      “< 2 ppm PCB” note shall be shown on the transformer
      nameplate.

            

    

     

    
      	
               
      

            	
              14.

            	
              WITNESSING

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall advise Toronto Hydro a minimum of four (4)
      Business Days in advance of scheduled, testing to enable Toronto Hydro to
      send inspectors to witness the production tests. All testing is to be
      completed during the normal working hours of Toronto Hydro (Monday, to
      Thursday, 7:30 a.m. to 3:30 p.m., Friday, 7:30 a.m. to 12:00 p.m., with
      the successful Respondent(s) responsible’ for all costs incurred by
      Toronto Hydro for time spent beyond said hours. Where the location of
      transformer testing is more than 200 km from Toronto Hydro, a minimum of
      seven (7) Business Days’ notice will be
  required.

            

    

     

    
      	
               
      

            	
              All
      transformers of each rating on order may be test-witnessed at the
      discretion of the inspectors of Toronto
Hydro.

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall provide the inspectors of Toronto Hydro,
      without restriction, access to its premises and test areas for the purpose
      of quality surveillance and
verification.

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro reserves the right to select, at random, transformers from a
      production lot for the production tests, when
  necessary.

            

    

     

    
      	
              15.          
      

            	
              EVALUATION
      DATA

            

    

     

    
      	
               
      

            	
              Respondents
      must provide the following information to Toronto Hydro for the evaluation
      of the transformer losses and characteristics. Proposals lacking the
      required data may not be evaluated.

            

    

     

    
      	
              15.1

            	
              Guaranteed
      value of no-load losses at 105% rated voltage and corrected to
      85°C.

            

    

     

    
      	
              15.2

            	
              Exciting
      current at 105% rated voltage.

            

    

     

    
      	
              15.3

            	
              Guaranteed
      value of load losses and impedance at rated current and voltage, corrected
      to 85° C.

            

    

     

    
      	
              15.4

            	
              Percentage
      regulation at 0.8 and unity power
factors.

            

    

     

    
      	
              15.5

            	
              Efficiency
      at 1/4, 1/2, 3/4, full-load and 5/4
full-load.

            

    

     

    
      	
              15.6

            	
              Material
      used for high-voltage and low-voltage
windings.

            

    

     

    
      	
              15.7

            	
              High
      voltage switch technical data.

            

    

     

    
      	
              15.8

            	
              A
      dimensional outline drawing.

            

    

     

    
      	
              15.9

            	
              Location
      of plant where transformers are to be
  manufactured.

            

    

     

    
      	
              16.

            	
              DRAWINGS

            

    

     

    
      	
               
      

            	
              In
      the event of an order, the successful Respondent(s) shall submit to
      Toronto Hydro three (3) copies of the following drawings for approval,
      prior to commencement of
production:

            

    

     

    
      	
              16.1      

            	
              Dimensional
      outline drawing.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              16.1.1

            	
              The
      drawing shall accurately display all features of the unit to be supplied.
      Any feature not being provided shall not be
  shown.

            

    

     

    
      	
               
      

            	
              16.1.2

            	
              The
      drawing shall show primary and secondary voltages and kVA of unit being
      supplied.

            

    

     

    
      	
               
      

            	
              16.1.3

            	
              The
      drawing shall also bear the name of Toronto Hydro and the relevant
      purchase order number.

            

    

     

    
      	
               
      

            	
              16.2

            	
              Nameplate
      data such as weight, dimensions, litres of fluid, base detail, location of
      bushings and devises, height of switch handle, height if wiping sleeve,
      arrangement of accessories, etc.

            

    

     

    
      	
               
      

            	
              16.3

            	
              Details
      of switch and termination chamber.

            

    

     

    One copy
of each, bearing Toronto Hydro’s approval with any remarks or comments, will be
returned to the successful Respondent(s). If revision to the drawing is made,
re-submission for approval is required unless stated otherwise, in writing, by
Toronto Hydro.

     

    Once the
dimensional outline and the nameplate data drawings are approved by Toronto
Hydro, new drawings are not required for the duration of the Strategic Supply
Agreement.

     

    
      	
              17.

            	
              CERTIFIED
      TEST REPORT

            

    

     

    Upon the
placement of Toronto Hydro’s initial order of the transformer, the successful
Respondent(s) shall submit two (2) copies of a Certified Test Report reflecting
all production and type test results as outlined in this
specification.

     

    Certified
Test Reports shall include all the information as outlined in the attached
sample Test Report format (see Appendices Al & A2 to this
specification).

     

    The
Certified Test Reports must be approved by Toronto Hydro prior to the shipment
of the equipment. Approval or rejection of the Certified Test Reports will be
given within five (5) Business Days of their receipt.

     

    If the
manufactured equipment does not comply with all the requirements of this
specification, Toronto Hydro reserves the right to reject all, or part of, the
equipment under the Strategic Supply Agreement. The right of rejection will
apply whether the equipment is in plant, in the warehouses of Toronto Hydro or
in final installed position.

     

    
      	
              18.

            	
              SHIPMENT

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall take an necessary precautions to avoid
      damage to the transformers during shipment and to ensure safe arrival at
      destination. Any damage to the paint, tank, hood, bushings or internal
      parts of any transformer on receipt at destination will be cause for
      rejection of the units until satisfactory repairs are arranged by the
      successful Respondent(s). Any claims against the transport company will be
      the responsibility of the successful
  Respondent(s).

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              Shipment
      shall only be made when authorization is given by Toronto
      Hydro.

            

    

     

    
      	
              19.

            	
              LATE
      DELIVERY

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) agrees that in the event it should fail to
      deliver the transformer within the time scheduled for delivery as
      specified in the purchase order, it may be required to pay to Toronto
      Hydro a fee, up to a maximum of ten percent (10%) of the total purchase
      price, which will be deducted from the invoice. This fee will be deducted
      only if Toronto Hydro, as a result of the shipment delay, is required to
      construct and remove temporary facilities which may be required to meet
      the commitments of Toronto Hydro to provide electric
  power.

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro also has the right to cancel the order without cost to Toronto Hydro
      if the late delivery is deemed unacceptable, in Toronto Hydro’s sole
      discretion.

            

    

     

    
      	
              20.

            	
              WARRANTY

            

    

     

    
      	
               
      

            	
              If
      a transformer is defective upon arrival or malfunctions in normal service,
      for causes other than accident, misapplication, or abuse, for a period of
      one (1) year after the unit is placed in service, or two (2) years after
      delivery, whichever occurs first, the defective transformer will be
      returned to the successful Respondent(s) by common carrier at the
      successful Respondent(s)’s expense.

            

    

     

    
      	
               
      

            	
              The
      successful respondent(s) shall make good all defects or shall provide a
      new transformer to replace the defective one without cost to Toronto
      Hydro. If the successful Respondent(s) fails to repair or replace the
      returned transformer within a time period agreed upon by the parties, the
      successful Respondent(s) shall reimburse Toronto Hydro for the purchase
      price of the transformer. Transformers returned under warranty shall have
      a Certified Test Report and a report on the cause of
    failure.

            

    

     

    
      	
               
      

            	
              Approval
      of tests by Toronto Hydro or its appointed agents shall not relieve the
      successful Respondent(s) of its responsibilities with respect to
      warranty.

            

    

     

    
      	
              21.

            	
              INFORMATION
      SUBMITTED WITH THE PROPOSAL

            

    

     

    
      	
               
      

            	
              Respondents
      shall submit the following information with their
  Proposal:

            

    

     

    
      	
               
      

            	
              1.

            	
              Layout
      drawing showing dimensions and weights and location of all devices and
      features.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              2.

            	
              Toronto
      Hydro Data Sheets, as attached to this
  specification

            

    

     

    
      	
               
      

            	
              3.

            	
              Guaranteed
      losses, impedances and delivery
times

            

    

     

    
      	
               
      

            	
              4.

            	
              Manufacturers
      technical data, bulletins, switch operation details and test reports on
      bushings, loadbreak switches and
fusing

            

    

     

    
      	
               
      

            	
              6.

            	
              Separate
      optional pricing for type tests.

            

    

     

    
      	
               
      

            	
              7.

            	
              Clearly
      identified exceptions to this
specification.

            

    

     

    
      	
              22.

            	
              TRANSFORMER
      LOSSES EVALUATION

            

    

     

    
      	
              22.1

            	
              Evaluation
      of Proposals

            

    

     

    
      	
               
      

            	
              Respondents
      shall note that, in evaluating the Proposals, Toronto Hydro will calculate
      the present value of the quoted transformer losses and add it to the
      quoted prices using the following formula:

               

              [XX]

               

              Full
      load losses result when the transformer supplies a load at rated current
      and does not include no-load loss.

            

    

     

    
      	
               
      

            	
              For
      this purpose, the dollar values assigned to the losses
  are:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

    

    
      	
              22.2

            	
              Excessive
      Loss Evaluation

            

    

     

    
      	
               
      

            	
              In
      cases where the final average measured losses of identical units exceed
      the guaranteed values, the Toronto Hydro reserves the right to reject all
      of said units. If the Toronto Hydro should choose to accept these units,
      the successful Respondent(s) must reimburse the Toronto Hydro for the
      additional cost of the transformer losses, which will be deducted from the
      successful Respondent(s)’s invoice.

            

    

     

    
      	
               
      

            	
              In
      order to assess the value of non-guarantee, the average value of the
      measured no-load and full-load losses, taken from all of the identical
      units on order, will be used as the basis for the losses calculation. The
      cost. of losses will be calculated as
follows:

            

    

     

    
      	
               
      

            	
              a)

            	
              If
      the no-load losses exceed the guarantee while the full-load losses are
      within the guarantee, the calculation for the cost of losses will be based
      on the following formula:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              b)

            	
              If
      the no-load losses are within guarantee while the full-load losses exceed
      the guarantee, the calculation for the cost of losses will be based on the
      following formula:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

    

    
      	
               
      

            	
              c)

            	
              If
      both no-load and full-load losses exceed the guarantee, the calculation
      for the cost of losses will be based on formula (2).

               

              Present
      value of cost of excess transformer losses in
    dollars

            

    

     

    
      	
               
      

            	
              [XX].........(2)

            

    

     

    Where:

     

    
      	
               
      

            	
              [XX]

            

    

    
      	
               
      

            	
              [XX]

            

    

    
      	
               
      

            	
              [XX]

            

    

     
 

    
      	
              23.

            	
              DELIVERY 

               

              Respondents
      shall state in weeks the shipment time from the date of award of the
      Strategic Supply Agreement.. The location within the City of Toronto to
      which the delivery is to be made will be specified by the time of
      shipment.

               

              The
      successful Respondent(s) is to provide five (5) Business Days’ notice
      prior to shipment so that arrangements can be made to receive
      transformers. Transformers shall be delivered during normal working hours,
      Monday to Thursday (7:30 a.m. to 3:30 p.m.), Friday (7:30 a.m. to 12:00
      p.m.) allowing sufficient time for receiving and offloading the
      transformers.

               

              Transformers
      shall only be delivered after the submitted drawings and test results have
      been approved by Toronto Hydro.

            

    

    
       

      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    

     

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    

     

    TORONTO
HYDRO •

     

    TECHNICAL
SPECIFICATION

     

    THREE
PHASE NETWORK TRANSFORMERS

     

    WITH
PRIMARY DISCONNECTING &

     

    GROUNDING
SWITCHES

     

    SPECIFICATION
NO. D-14:41 R1

     

     

    
      	PREPARED
      BY: 	/s/ H.
      Stucklus	 
	 	ENGINEER, STANDARDS
      & MATERIALS SECTION	 
	 	 	 
	REVIEWED
      BY: 	/s/ L. Pen	 
	 	SUPERVISOR,
      STANDARDS & MATERIALS SECTION	 
	 	 	 
	 	 	 

    

     

     

    

     

    
      	
              CERTIFICATE OF APPROVAL

              THIS
      TECHNICAL SPECIFICATION MEETS THE SAFETY REQUIREMENTS
      OF SECTION 4 OF ONTARIO REGULATION 22/04

            
	
              /s/ J. Petras

            	
               

              August 31, 05

            
	
              JOHN PETRAS

              PROFESSIONAL ENGINEER

            	
              DATE

              MANAGER, STANDARD &

              MATERIALS

            

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    THREE
PHASE NETWORK TRANSFORMERS

     

    INTRODUCTION

     

    
      	
              i

            	
              This
      specification supplements the requirements of CSA Standard CAN/CSA-C199-
      M1982 for Three Phase Neutral Transformers, Type ONAN and LNAN, suitable
      for operation in a partially or totally submerged condition, with exposure
      to corrosive conditions and for ratings up to 2000 kVA for installation on
      the Toronto Hydro 13800 V system.

            

    

     

    
      	
              ii

            	
              Except
      where altered by the requirements of this specification, all transformers
      shall be designed and manufactured in accordance with CAN/CSA-C199-
      M1982.

            

    

     

    
      	
              iii

            	
              The
      numbering of clauses in’ this specification is identical to that used in
      CSA Standard C199. Any additional or modifying statements added to the
      same numbered CSA clause shall form part of this specification and the
      requirements, as given in this specification, shall govern. Where no
      reference is made, the CSA Standard C199 applies as written.
    .

            

    

     

    
      	
              iv

            	
              All
      specifications mentioned herein shall be the latest
    editions

            

    

     

    REFERENCE
PUBLICATIONS

    
       

      CSA
Standards

       

    

    
    

    
      	
              C199-M
      1982

            	
              Three
      Phase Network Transformers

            

    

    

    
      	
              C2-M91

            	
              Single-Phase
      and Three-Phase Distribution Transformers,
Types

            

    

     

    
      	
               
      

            	
              ONAN
      and LNAN

            

    

     

    
      	
              C50

            	
              Insulating
      Oil, Electrical for Transformers and
Switches

            

    

     

    
      	
              C22.2
      No. 0.15

            	
              Adhesive
      Labels

            

    

     

    
      	
              CAN3-108.3.1-1987 

            	
              Tolerable
      Limits and Methods of Measurement of Electromagnetic Interference
      from Alternating Current High Voltage Power Systems 0.15 MHz-30
      MHz.

            

    

    
    

    
       

      ANSI
Standard

    
    

    
      	
              C57.12.90

            	
              Test
      Code for Liquid-Immersed Distribution, Power, and Regulating Transformers
      and Guide for Short-Circuit Testing of Distribution and Power
      Transformers

            

    

    

    
      	
              ANSINIEEE
      386

            	
              Separable
      insulated Connectors for Power Distribution
  Systems

            

    

    

    
      	
              1985

            	
              Above
      600 V.

            

    

    

    
      	
              C57.12.28

            	
              Padmounted
      Equipment – Enclosure Integrity

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              C57.12.40-1994

            	
              Requirements
      for Secondary Network transformers, Subway and Vault Types (Liquid
      Immersed)

            

    

    

    
      	
              IEEE
      C57.12.32

            	
              Submersible
      Equipment – Enclosure Integrity

            

    

    

    ASTM
Standard

     

    
      	
              D1816

            	
              Test
      Method for Dielectric Oil

            

    

    

    
      	
              B6-1

            	
              Insulating
      Oil for New Electrical Apparatus

            

    

    

    ISO
Standards

     

    
      	
              9001

            	
              Quality
      Systems- Model for Quality Assurance In Production, Installation and
      Servicing

            

    

    

    
      	
              3.2

            	
              Service
      Requirements

            

    

     

    

    
      	
               
      

            	
              Operating
      conditions associated with Category 2 shall apply. Add the following
      finishing requirements:

            

    

     

    

    
      	
               
      

            	
              The
      standard exterior finish shall be light grey number 70, Munsell notation
      513G7.0/0.4.

            

    

     

    

    
      	
              4.0

            	
              MECHANICAL CHARACTERISTICS AND
      TRANSFORMER ACCESSORIES

            

    

     

    
      	
              4.1.1

            	
              The
      transformer shall be of sealed construction with the cover bolted in
      place.

            

    

     

    
      	
              4.12

            	
              The
      transformer layout shall conform to CSA C199, Figure 2 except the low
      voltage neutral shall be located close to H1 of the termination chamber.
      The transformer dimensions shall conform to attached drawing
      #D-14-11-D10.

            

    

     

    
      	
              4.1.3

            	
              In
      addition, Respondents are requested to submit a priced proposal for the
      fabrication of a stainless steel tank and provide rationale based on
      experience that shows the technical advantages for the use of stainless
      steel over finished mild steel. Toronto Hydro proposes to carry out a life
      cycle evaluation of each type of tank and determine which tank provides
      the highest reliability for cost.

            

    

     

    
      	
              4.2

            	
              The
      access opening dimensions shall be increased for the circular opening to
      510 mm and for the rectangular one to 355 mm x 460 mm. The opening shall
      provide access to winding, tap changer and bushing terminals and shall
      project approximately 10 mm above the tank surface. All covers shall be
      equipped with handles or loops for
lifting.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              4.3.2

            	
              In
      addition, the exterior finish shall conform to ANSI C57.12.28 1988, clause
      5.4, except the salt spray test acceptance criteria shall be 3000
      hours.

            

    

     

    
      	
               
      

            	
              Submersible
      transformers on the Toronto Hydro system are subjected to a very severe
      salt and wet environment and often display heavy corrosion. Toronto Hydro
      is prepared to consider an alternative paint standard to IEEE Standard
      C57.12.32 – 2002 if the Respondent can show evidence that it provides a
      superior performance under these adverse
  conditions.

            

    

     

    
      	
              4.4.1

            	
              The
      main cover and primary switch tank, if removable, shall be equipped for
      lifting in a properly balanced manner and shall have a safety factor of 5
      in accordance with ANSI per clause
C57.12.40.

            

    

     

    
      	
              4.4.2

            	
              The
      transformer tank shall be provided with four jack steps 140mm wide, 76mm
      high and not less than 90mm deep, located at a minimum distance of 100mm
      above the base channels and usable with or without skids attached.. The
      design in accordance with ANSI C57.12.40 shall provide a safety factor of
      5.

            

    

     

    
      	
              4.5.2

            	
              Straight
      receptacle – three 600 A, 15kV, dead break apparatus bushing externally
      clamped shall be provided for receiving three straight receptacles with
      capacitive test points. The termination chamber has been eliminated and
      the switch chamber is used to terminate the primary connections. The three
      receptacles shall be connected to three single conductor 3/0 XLPE cables,
      100% insulation. The bushings shall be Elastimold Cat. # 675T1 or approved
      equivalent in accordance with ANSI/IEEE
386.

            

    

     

    
      	
              4.5.9

            	
              Provision
      to mount the network protector to the transformer tank shall be in
      accordance with CSA C199 Figure 5 for 1875 A and Figure 6 for 3000 and
      3500 A ratings. The support bracket shall be in the same plane as the
      compressed gasket for the LV flanged throat and recessed as shown in
      Figure 6. The gasket, which shall be included, shall be one piece. The
      dowel pin (see Figure 5 and 6) shall protrude 25 mm
  (1”)).

            

    

     

    
      	
              4.5.10

            	
              A
      steel backing plates 12.7 mm (1/2”) thick (see figures 5 and 6) shall be
      used at the mating surfaces and all fasteners such as washers, bolts,
      etc., required to secure the connection at the protector and transformer
      shall be provided. Bolting surfaces shall be silver plated; brush plated
      is unacceptable.

            

    

     

    
      	
              4.5.11

            	
              The
      flexible connections and secondary bushings shall be rated as
      follows:

            

    

     

    
      	
              216Y/I25
      V

            	
              433Y250
      V.

            	
              Minimum
      Current

            
	
              500
      kVA

            	
              1000
      kVA .

            	
              1875
      A

            
	
              750
      kVA

            	
              1500
      kVA

            	
              3000
      A

            
	
              1000
      kVA

            	
              2000
      kVA

            	
              3500
      A

            

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
              4.6.1

            	
              In
      addition, see CSA CI 99 Figure 2 for approximate location of the neutral
      terminal except the required location is between LV and /IV bushing
      arrangements, and below the cover to provide clear access to the neutral
      terminal. The terminal shall be 6 hole in accordance with CSA C2 Figure
      3(iv). Bolting surfaces shall be silver plated; brush plated is
      unacceptable.

            

    

     

    
      	
              4.7

            	
              The
      ground terminal shall be supplied with a solderless connector suitable for
      receiving 1/0 to 4/0 stranded
conductor.

            

    

     

    
      	
              4.8.1

            	
              The
      tap changer handle shall be designed to allow the use of a standard
      Toronto Hydro padlock (see attached drawing D-14-11-D20) in any position.
      The tap changer shall have a current carrying capacity that. corresponds
      to 150% of the current rating of the winding and shall not limit the
      loading of the transformer in accordance with ANSI
  C57.

            

    

     

    
      	
               
      

            	
              A
      separate warning sign shall be mounted close to the tap changer handle and
      shall be engraved using bold letters of at least 15mm high as
      follows:

            

    

     

    
      
        	
                 
      

              	
                OPERATE
      TAP CHANGER SWITCH ONLY WHEN

              

      

       

      
        	
                 
      

              	
                TRANSFORMER
      IS DE-ENERGIZED

              

      

       

      

    

    
      	
              4.10

            	
              In
      addition, the thermometer shall be equipped with two auxiliary form “C”
      contacts: one to operate at 95° C and the other at 110° C. The auxiliary
      wiring shall terminate in a plug with a weatherproof cap. A sign shall be
      mounted close to the thermometer and shall be engraved using bold letters
      of at least 15mm high as follows:

            

    

     

    
      	
               
      

            	
              Maximum
      Continuous temperature: 95° C

            

    

     

    
      	
               
      

            	
              Maximum
      Permissible temperature: 110° C

            

    

     

    
      	
              4.12.1

            	
              In
      addition, the drain valve shall be Globe type and complete with sampling
      devise.

            

    

     

    
      	
              4.13

            	
              Oil
      Specification

            

    

     

    
      	
               
      

            	
              The
      dielectric oil shall meet the minimum requirements of CSA C50 and shall be
      Class B, Type IL The oil shall be new and shall contain no detectable
      amount of PCB’s in accordance with CSA C50. The minimum dielectric
      strength at time of shipment shall be not less than 40 kV in accordance
      with ASTM D1816 using a 2 mm electrode
spacing.

            

    

     

    
      	
              5.0

            	
              ELECTRICAL
      CHARACTERISTICS

            

    

     

    
      	
              5.1.1

            	
              The
      transformer shall be designed to deal with higher losses associated with
      harmonics that are generated as a result of supplying non-linear loads to
      our commercial customers. In order to deal with harmonic loading, a
      K-factor rating of 4 as defined by ANSI C57.110 is
    required.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
              5.1.2

            	
              The
      kVA rating shall be based on item (a), continuous operation at a winding.
      temperature rise not exceeding 55° C but with a 65° C insulation
      system.

            

    

     

    
      	
              5.3.1

            	
              The
      nominal HV to LV turn ratio shall be 110:1 for 216Y/125 V and 55:1 . for
      433Y/250

            

    

     

    
      	
              5.3.2

            	
              All
      taps shall be rated full capacity.

            

    

     

    
      	
              5.4

            	
              The
      full load impedance shall be 6.44%

            

    

     

    
      	
              5.8

            	
              No-load
      loss must be greater than or equal to 0.12% of the nameplate kVA rating
      and no special devises such as resistor banks shall be used to meet this
      requirement.

            

    

     

    
      	
              6.1.1

            	
              The
      switch voltage rating shall be 13,800 V, 15 kV
  class.

            

    

     

    
      	
              6.1.4

            	
              Three
      auxiliary form “A” contacts shall be provided, one per switch position.
      The wiring from the contacts shall be terminated in a plug that will be
      provided with a weatherproof cap. The switch shall be design to accept the
      Toronto Hydro standard padlock (see attached drawing D-14-11- DI 0). The
      operating handle shall be positioned 900 mm to 1200 mm above ground level
      and the maximum force to operate the handle shall not exceed 180 Newtons
      (40 lb°.

            

    

     

    
      	
              6.2.3

            	
              The
      short time current capability of the switch shall be 25 kA(sym) for 2 s
      and 40 kA(sym) for 0.2 s.

            

    

     

    
      	
              6.2.4

            	
              In
      addition, the interlock shall be internally mounted having a single phase
      coil connected line to ground and shall operate without noise or
      chatter.

            

    

     

    
      	
              7.2.6

            	
              A
      front viewing window shall be provided such that the disconnect and ground
      switch blades, their operating states and interlock are visible. The
      viewing window shall be scratch resistant and adequately strong to
      withstand mechanical forces from an internal
  fault.

            

    

     

    
      	
              9.1

            	
              In
      addition to the routine tests specified in CSA C2, Respondents shall
      conduct the following on each unit:

            

    

    
      	
               
      

            	
              1)

            	
              Resistant
      measurement

            

    

    
      	
               
      

            	
              2)

            	
              Pick
      up and drop out voltage of the electrical
  interlock

            

    

    
      	
               
      

            	
              3)

            	
              Tank
      test: Respondents are required to submit to Toronto Hydro, for approval, a
      detailed explanation of the test procedure and test parameters that they
      propose to use to conduct the tank leak
test.

            

    

    
      	
               
      

            	
              4)

            	
              The
      switch with all terminals in position shall be subjected to a test of
      three times the operating voltage between phases for a period of five
      minutes. Further with the switch in the open position, a 36,000 V test
      shall be applied between phase and ground for one
  minute.

            

    

    
      	
               
      

            	
              5)

            	
              The
      interlock coil and leads must be subjected to 10,000 V to ground for one
      minute.

            

    

    
      	
               
      

            	
              6)

            	
              Percentage
      regulation at 1.0 and 0.8 power
factors.

            

    

    
      	
               
      

            	
              7)

            	
              Efficiency
      at 1/4, 1/2, 3/4, full-load and 5/4
full-load.

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
              9.8

            	
              Type
      Tests

            

    

     

    
      	
               
      

            	
              Type
      tests shall be submitted by the successful Respondent(s) when changes are
      made to either the transformer design,, manufacturing process,
      component(s) or raw material.

            

    

     

    
      	
               
      

            	
              The
      type tests for temperature rise, BIL, RN, sound level and short circuit
      shall be carried out on representative unit(s) on order when requested by
      Toronto Hydro unless Certified Test Reports are made available from other
      units whose equivalence with regard to the required tests are acceptable
      to the Toronto Hydro. The Respondent(s) must submit such Certified Test
      Reports for approval by Toronto Hydro upon Toronto Hydro’s initial order
      of the transformer.

            

    

     

    
      	
               
      

            	
              Respondents
      shall include in their Proposal, in addition to the unit prices, the cost
      for performing each of the type tests noted above in the event that the
      Certified Test Reports results, based on representative units, prove
      unacceptable.

            

    

     

    
      	
              10.

            	
              NAMEPLATE

            

    

     

    
      	
              10.1

            	
              Transformer
      Nameplate

            

    

     

    
      	
               
      

            	
              -

            	
              In
      addition to the information to be contained in the •combination nameplate
      and connection diagram as outlined in CSA Standard C199, the nameplate
      shall contain the following
information:

            

    

     

    
      	
               
      

            	
              -

            	
              Toronto
      Hydro purchase order number -

            

    

     

    
      	
               
      

            	
              -

            	
              Total
      weight and volume of the insulating liquid in switch chamber, termination
      chamber and main tank

            

    

     

    
      	
               
      

            	
              -

            	
              Total
      volume of the insulating liquid

            

    

     

    
      	
               
      

            	
              -

            	
              PCB
      content and k-factor, as applicable

            

    

     

    
      	
               
      

            	
              -

            	
              Title
      “3 Phase Network transformer”

            

    

     

    
      	
               
      

            	
              -

            	
              Transformer
      type e.g. Subway- Category II

            

    

     

    
      	
               
      

            	
              -

            	
              BIL
      and current ratings

            

    

     

    
      	
               
      

            	
              -

            	
              Primary
      switch type e.g. dead break, no load,
etc.

            

    

     

    
      	
               
      

            	
              -

            	
              The
      following warnings:

            

    

     

    
      	
               
      

            	
              OPERATE
      THE PRIMARY DISCONNECTING AND GROUNDING SWITCH ONLY WHEN THE TRANSFORMER
      AND INCOMING PRIMARY FEEDER ARE
DE-ENERGIZED

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              SWITCH
      ON OPEN POSITION:

            

    

     

    HIGH
VOLTAGE LINE OPEN AND DISCONNECTED FROM TRANSFORMER

     

    
      	
               
      

            	
              SWITCH
      IN CLOSED POSITION:

            

    

     

    HIGH
VOLTAGE LINE CONNECTED TO TRANSFORMER

     

    
      	
               
      

            	
              SWITCH
      IN GROUND POSITION:

            

    

     

    HIGH
VOLTAGE LINE GROUNDED

     

    
      	
              11.

            	
              OPTIONAL
      ITEMS

            

    

     

    
      	
               
      

            	
              The
      following items shall be provided:

            

    

     

    
      	
               
      

            	
              a)

            	
              Pressure
      relief devises

            

    

     

    
      	
               
      

            	
              b)

            	
              Viewing
      window for HV switch

            

    

     

    
      	
              12.

            	
              MARKINGS

            

    

     

    
      	
               
      

            	
              In
      addition “< 2 ppm PCB” shall be shown on the transformer
      nameplate.

            

    

     

    
      	
               
      

            	
              The
      stock code number shall be stenciled at the front of the termination or
      switch chamber.

            

    

     

    
      	
              13.

            	
              QUALITY
      ASSURANCE

            

    

     

    
      	
               
      

            	
              Transformers
      shall be designed and manufactured to in accordance with a quality
      program, approved by a certified registrar to ISO
  9001.

            

    

     

    
      	
              14.

            	
              DRAWINGS

            

    

     

    
      	
               
      

            	
              In
      the event of an order, the successful Respondent(s) shall, submit to
      Toronto Hydro three (3) copies of the following drawings for approval,
      prior to the commencement of
production:

            

    

     

    
      	
              -  

            	
              Outline
      and dimensional drawing. –

            

    

     

    
      	
              -  

            	
              Nameplate
      data drawing.

            

    

     

    
      	
               
      

            	
              These
      drawings shall accurately display all features of the unit to be supplied.
      Any feature not being provided shall not be
  shown.

            

    

     

    
      	
               
      

            	
              One
      copy of each, bearing Toronto Hydro approval with any remarks or comments,
      will be returned to the successful Respondent(s). If revision to the
      drawing is made, resubmission for approval is required unless stated
      otherwise, in writing, by Toronto Hydro. The drawings shall also bear
      Toronto hydro’s name and the relevant purchase order
    number.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
              15.

            	
              TRANSFORMER
      LOSSES EVALUATION

            

    

     

    
      	
              15.1

            	
              Evaluation
      of Proposals

            

    

     

    
      	
               
      

            	
              Respondents
      shall note that, in evaluating the Proposals, Toronto Hydro will calculate
      the present value of the quoted transformer losses and add it to the
      quoted prices using the following formula:=

               

              [XX]

            

    

     

    
      	
              15.2

            	
              Excessive
      Loss Evaluation

            

    

     

    
      	
               
      

            	
              In
      cases where the final average measured losses of identical units exceed
      the guaranteed values, Toronto Hydro reserves the right to reject all of
      said units. If Toronto Hydro should choose to accept these units, the
      successful Respondent(s) must reimburse Toronto Hydro for the additional
      cost of the transformer losses, which will be deducted from the successful
      Respondent(s)’s invoice.

            

    

     

    
      	
               
      

            	
              In
      order to assess the value of non-guarantee, the average value of the
      measured no-load and full-load losses, taken from all of the identical
      units on order, will be used as the basis for the losses calculation. The
      cost of losses will be calculated as
follows:

            

    

     

    
      	
               
      

            	
              a)

            	
              If
      the no-load losses exceed the guarantee while the full-load losses are
      within the guarantee, the calculation for the cost of losses will be based
      on the following formula:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

     

    
      	
               
      

            	
              b)

            	
              If
      the no-load losses are within guarantee while the full-load losses exceed
      the guarantee, the calculation for the cost of losses will be based on the
      following formula:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

     

    
      	
               
      

            	
              c)

            	
              If
      both no-load and full-load losses exceed the guarantee, the calculation
      for the cost of losses will be based on formula
  (2).

            

    

     

    
      	
               
      

            	
              Present
      value of cost of excess transformer losses in
  dollars

            

    

     

    
      	
               
      

            	
              [XX]

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
              16.

            	
              CERTIFIED
      TEST REPORT

            

    

     

    
      	
               
      

            	
              Upon
      the placement of Toronto Hydro’s initial order of the transformer, the
      successful Respondent(s) shall. submit two (2) copies of a Certified Test
      Report reflecting all production and type test results as outlined in this
      specification.

            

    

     

    
      	
               
      

            	
              Certified
      Test Reports shall include all the information as outlined in the attached
      sample Test Report format (see Appendices A 1 & A2 to this
      specification).

            

    

     

    
      	
               
      

            	
              The
      Certified Test Reports must be approved by Toronto Hydro prior to.
      shipment of the equipment. Approval or rejection, of the Certified. Test
      Reports will be given within five’ (5) Business Days of their
      receipt.

            

    

     

    
      	
               
      

            	
              If
      the manufactured equipment does not comply with all the requirements of
      this specification, Toronto Hydro reserves the right to reject all, or
      part of, the equipment under the Strategic Supply Agreement. The right of
      rejection will apply whether the equipment is in plant, in Toronto Hydro
      warehouses or in final installed
position.

            

    

     

    
      	
              17.

            	
              SHIPMENT

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall take all necessary precautions to avoid
      damage to the transformers during shipment and to ensure safe arrival at
      destination. Any damage to the paint, tank, cover, bushings or internal
      parts of any transformer on receipt at destination will be cause for
      rejection of the units until satisfactory repairs are arranged by the
      successful Respondent(s). Any claims against the transport company will be
      the, responsibility of the successful
  Respondent(s).

            

    

     

    
      	
               
      

            	
              Shipment
      shall only be made when authorization is given by Toronto
      Hydro.

            

    

     

    
      	
              18.

            	
              LATE
      DELIVERY

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) agrees that in the event it should fail to
      deliver the transformer within the time scheduled for delivery as
      specified in the purchase order, it may be required to pay to Toronto
      Hydro a fee, up to a maximum of ten percent (10%) of the total purchase
      price, which will be deducted from the invoice. This fee will be deducted
      only if Toronto Hydro, as a result of the shipment delay, is required to
      construct and remove temporary facilities which may be required to meet
      Toronto. Hydro’s commitments to provide electric
  power.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              Toronto
      Hydro also has the right to cancel the order without cost to Toronto Hydro
      if the late delivery is deemed unacceptable, in Toronto Hydro’s sole
      discretion.

            

    

     

    
      	
              19.

            	
              WARRANTY

            

    

     

    
      	
               
      

            	
              If
      a transformer is defective upon arrival or malfunctions in normal service,
      for causes other than accident, misapplication, or abuse, for a period of
      one (1) year after the unit is placed in service, or two (2) years after
      delivery, whichever occurs first, the defective transformer will be
      returned to the successful Respondent(s) by common carrier at the
      successful Respondent(s)’s expense.

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall make good all defects or shall provide a
      new transformer to replace the defective one without cost to Toronto
      Hydro. If the successful Respondent(s) fails to repair or replace the
      returned transformer within a time period agreed upon by the parties, the
      successful Respondent(s) shall reimburse Toronto Hydro for the purchase
      price of the transformer. Transformers returned under warranty shall have
      a Certified Test Report and a report on the cause of
    failure.

            

    

     

    
      	
               
      

            	
              Approval
      of tests by Toronto Hydro or its appointed agents shall not relieve the
      successful Respondent(s) of its responsibilities with respect to
      warranty.

            

    

     

    
      	
              20.

            	
              EVALUATION
      DATA

            

    

     

    
      	
               
      

            	
              Respondents
      must supply the following information to Toronto Hydro for the evaluation
      of the transformer losses and characteristics. Proposals lacking the
      required data may not be evaluated.

            

    

     

    
      	
              20.1

            	
              Guaranteed
      value of no-load losses at 105% rated voltage and corrected to 85
      °C.

            

    

     

    
      	
              20.2

            	
              Exciting
      current at 105% rated voltage.

            

    

     

    
      	
              20.3

            	
              Guaranteed
      value of load losses and impedance at rated current and voltage, corrected
      to 85 °C.

            

    

     

    
      	
              20.4

            	
              Percentage
      regulation at 0.8 and unity power
factors.

            

    

     

    
      	
              20.5

            	
              Efficiency
      at 1/4, 1/2, 3/4, full-load and 5/4
full-load.

            

    

     

    
      	
              20.6

            	
              Material
      used for high-voltage and low-voltage
windings.

            

    

     

    
      	
              20.7

            	
              Fuse
      Characteristics, switches and bushing technical
  data.

            

    

     

    
      	
              20.8

            	
              Layout
      drawing showing dimensions and weights and location of all devices and
      features.

            

    

     

    
      	
              20.9

            	
              Location
      of plant where transformers are to be
  manufactured.

            

    

     

    
      	
              20.10

            	
              Delivery
      terms.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
              21.

            	
              DELIVERY

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall state in weeks the shipment time from the
      date of award of the Strategic Supply Agreement. The location within the
      City of Toronto to which the delivery is to be made will be specified by
      the time of shipment.

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) is to provide five (5) Business Days’ notice
      prior to shipment so that arrangements can be made to receive
      transformers. Transformers shall be delivered during normal working hours,
      Monday to Thursday (7:30 a.m.. to 3:30 p.m.), Friday (7:30 a.m. to 12:00
      p.m.), allowing sufficient time for receiving and off loading the
      transformers.

            

    

     

    
      	
               
      

            	
              Transformers
      shall only be delivered after the submitted drawings and test results have
      been approved by Toronto Hydro.

            

    

     

    
      	
              22

            	
              WITNESSING

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall advise Toronto Hydro a minimum of four (4)
      Business Days in advance of scheduled testing to enable a Toronto Hydro
      inspector to witness these tests. All testing is to be completed during
      Toronto Hydra’s normal working hours (Monday to Thursday, 7:30 a.m. to
      3:30 p.m., Friday, 7:30 a.m. to 12:00 p.m., with the successful
      Respondent(s) responsible for all costs incurred by Toronto Hydro for time
      spent beyond said hours. Where the location of transformer testing is more
      than 200 km from Toronto Hydro, a minimum of seven (7) Business Days
      notice will be required.

            

    

     

    
      	
               
      

            	
              All
      transformers of each rating on order may be test-witnessed at the
      discretion of Toronto Hydro’s
inspectors.

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall provide the Toronto Hydro’s inspectors,
      without restriction, access to its premises and test areas for the purpose
      of quality surveillance and
verification.

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro reserves the right to select, at random, transformers from a
      production lot for the production tests, when
  necessary.

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
    

     

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    

     

     

     

    TORONTO
HYDRO ELECTRIC SYSTEM LTD.

     

     

    SPECIFICATION
# PT-01 R1

     

     

    FOR

    
 

     

    500
to 4000 MVA

     

    27.6KVGrd
Y/16000 or 27.6 kV Delta

     

    to
208 GrdY/120V or 600 GrdY/347V

     

    POWER
TRANSFORMER

     

    

    
    

     

    
      	PREPARED
      BY: 	/s/ H.
      Stucklus  	 
	 	ENGINEER, STANDARDS
      & MATERIALS SECTION
	 	 	 
	REVIEWED
      BY: 	/s/ L.
    Pen  	 
	 	SUPERVISOR,
      STANDARDS & MATERIALS SECTION
	 	 	 

    

     

     

    
      	
              CERTIFICATE OF APPROVAL

              THIS
      TECHNICAL SPECIFICATION MEETS THE SAFETY REQUIREMENTS
      OF SECTION 4 OF ONTARIO REGULATION 22/04

            
	
               

              /s/ J. Petras

            	
               

               Aug. 31, 2005 

            
	
              JOHN
      PETRAS

              PROFESSIONAL
      ENGINEER

            	
              DATE

              MANAGER,
      STANDARD &

              MATERIALS

            

    

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
              1

            	
              SCOPE

            

    

     

    
      	
              1.1

            	
              This
      specification covers the requirements for an oil-filled, sealed tank
      design, power class transformer. The work to be done includes the design,
      manufacture, fabrication, shop testing, supply, delivery, placement in
      position and guarantee of the transformer. All work shall be in accordance
      with the following standards, current editions, except as specified
      herein.

            

    

     

    
      	
              2

            	
              REFERENCE
      STANDARDS

            

    

     

    CSA
Standards

     

    
      	
              CSA-C88

            	
              Power
      Transformers and Reactors

            

    

     

    
      	
              CSA-C2

            	
              Single
      Phase and Three Phase Distribution Transformers, Type ONAN and
      LNAN

            

    

     

    
      	
              CSA
      C50

            	
              Insulating
      Oil, Electrical for Transformers and
Switches

            

    

     

    ANSI
Standards

     

    
      	
              C57.12.00

            	
              General
      Requirements for Distribution, Power, Regulating
    Transformers

            

    

     

    
      	
              C57.92

            	
              Guide
      for Loading Mineral Oil Immersed Power Transformers up to and Including
      100 MVA with 55° C or 65° C Average Winding
rise

            

    

     

    
      	
              C57.12.28

            	
              Switchgear
      and Transformers – Padmounted equipment – Enclosure
    Integrit

            

    

     

    ISO
Standards

     

    
      	
              9001

            	
              Quality
      Management and Quality Assurance
Standard

            

    

     

    
      	
              3

            	
              RATINGS

            

    

     

    
      	
              3.1

            	
              Transformers
      Rating

            

    

     

    
      	
               
      

            	
              The
      transformer three phase ONAN rating shall be based on the rating given in
      the item description in the RFP. The average winding temperature rise
      shall be 65° C. Provision for a further 33.3% increase in capacity with
      forced air cooling shall be provided. Limits of temperature rise for
      continuous operation shall be in accordance to CSA-C88-M90 Clause
      9.2.

            

    

     

    
      	
              3.2

            	
              Voltage
      Ratings

            

    

     

    
      	
               
      

            	
              The
      applicable primary and secondary voltages shall be those given in the item
      description in the RFP.

            

    

     

    
      	
              Primary:

            	
              27.6
      kV GrdY/16000 or 27.6 kV delta
connected

            

    

     

    
      	
               
      

            	
              Secondary:
      208Grd Y/120 or 600 GrdY/347

            

    

     

    
      	
               
      

            	
              All
      voltages are based on the turns-ratio of the transformer at
      no-load.

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      	
              3.3

            	
              Electrical
      Characteristics

            

    

     

    
      	
               
      

            	
              Transformer
      impedance shall be 5.5%

            

    

     

    
      	
               
      

            	
              The
      transformer dissipation factor shall be 1.00% or less when corrected to
      20°C.

            

    

     

    
      	
               
      

            	
              Transformer
      sound level shall not exceed 58 dBA. Sound level tests shall be made in
      accordance with ANSI Standard
C57.12.90.

            

    

     

    
      	
               
      

            	
              Winding
      BIL

            

    

     

    
      	
               
      

            	
              The
      minimum winding insulation requirements shall
  be:

            

    

     

    
      	
               
      

            	
              Primary
      BIL

            

    

     

    
      	
               
      

            	
              For
      the 27.6 kVGrdY connection – 150 kV
BIL

            

    

     

    
      	
               
      

            	
              For
      the 27.6 kV.deita connection – 170 kV
BIL

            

    

     

    
      	
               
      

            	
              Secondary
      BIL

               

              For
      the 4160GrtlY connection – 50 kV BIL

               

              For
      the 600GrdY and 208GrdY connections - 30 kV BIL

               

              Winding
      Neutral BIL

               

              The
      winding neutral BIL ratings shall meet the requirements in CSA C88 Table 4
      as follows:

               

              For
      27.6kVGrdY neutral – 95 kV BIL

               

              For
      4160GrdY neutral – 50 kV BIL

               

              For
      208GrdY and 600GrdY — 30 kV BIL

            

    

     

    4           CONSTRUCTION

     

    
      	
              4.1

            	
              Tank
      Features

            

    

     

    
      	
               
      

            	
              A
      sealed tank design shall be provided in accordance with the requirements
      of section 15 of CSA-C88-M90 where the mechanical features and accessories
      listed in clauses 15.1.2 to 15.1.26. shall be considered standard. This
      specification provides clarification of Toronto Hydro’s requirements and
      items for clauses 15.1.2 to 15.1.26 where not specifically mentioned shall
      be supplied as per Respondent’s standard unless identified as an option in
      clauses 15.1.2 to 15.1.26.

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              Hand
      hole suitably located and sized shall be provided on the tank
      cover.

            

    

     

    
      	
               
      

            	
              The
      transformer core shall be designed and constructed to avoid tank •heating
      under, unbalanced loading or, secondary fault conditions. The Respondent
      shall specify whether it will use triplex, five-legged core, or other
      approved equivalent construction.

            

    

     

    
      	
              4.2

            	
              Angular
      displacement

            

    

     

    
      	
               
      

            	
              Winding
      configuration shall be wye primary or delta primary to wye secondary with
      the secondary neutral brought out separately for solid grounding. The
      angular displacement for the star - star or delta – star winding
      connections shall be in accordance with CSA C88 Figure 1 designations for
      angular displacements Yy0 or Dy1.

            

    

     

    
      	
              4.3

            	
              Tap
    Changer

            

    

     

    
      	
               
      

            	
              Transformer
      primary winding shall be provided with a five position off circuit tap
      changer with full capacity rating and features as detailed in CSA-C88-M90
      clauses 8. and 15.1.4. Tap changer positions and corresponding ratings
      shall be as follows:

            

    

     

    
      	
              POSITION

            	
              VOLTAGE

            	
              PERCENT
      REGULATION

            
	 
      	 
      	 
      
	
              1

            	
              28,980

            	
              +5

            
	
              2

            	
              28,290

            	
              +2
      1/2

            
	
              3

            	
              27,600

            	
              0

            
	
              4

            	
              26,910

            	
              -2
      1/2

            
	
              5

            	
              26,220

            	
              -5

            

    

     

    
      
        	
                4.4

              	
                Lugs, Jacking Steps, Maximum
      dimensions, etc.

              

      

    

     

    
      	
               
      

            	
              Four
      lifting lugs shall be provided at the top corners of the tank side walls,
      each of capacity sufficient to support at least half the weight of the
      oil-filled transformer.

            

    

     

    
      	
               
      

            	
              Two
      lifting lugs shall be provided on the top cover of the transformer to
      enable removal of the cover only. These shall be located approximately
      equidistant from the center of gravity of the complete
      transformer.

            

    

     

    
      	
               
      

            	
              Four
      jacking steps shall be provided, on the base or on the tank corners, each
      of capacity sufficient to support at least half the weight of the
      oil-filled transformer. These shall be located on the outermost base
      structure, where the side walls meet the base periphery. The step
      underside surface, free of obstruction, shall extend outwards (measured
      from the transformer base, or tank) for a minimum distance of 8 inches
      (step depth), and is of 6 inch minimum
width.

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              The
      steps shall be located to ensure an unobstructed space, which is
      dimensioned 7 by 7 inches extending directly downward from the step
      underside, for a minimum height of 14 inches (vertically) to accommodate
      the jack.

            

    

     

    
      	
               
      

            	
              Transformer
      dimensions shall be such as to be able to access through the door of the
      transformer vault that measures 8’( 2440 mm )wide x 10’( 3050 mm )
      high.

            

    

     

    
      
        
          	
                  5.

                	
                  ACCESSORIES AND
      OPTIONS

                

        

         

      

      
        	
                5.1

              	
                General

              

      

    

     

    
      	
               
      

            	
              Gauges,
      tap changer handle and other accessories shall be mounted on the
      transformer side not having junction boxes or radiators, etc., thus
      providing clear access for operating or
viewing.

            

    

     

    
      
        	
                5.2

              	
                Accessories

              

      

    

     

    
      	
              a.

            	
              A
      dial type oil temperature gauge complete with adjustable fan-start and
      alarm contacts shall be provided to indicate temperature of the hottest
      liquid. Dial is to be located on the tank wall and shall be “TESTON” or
      “QUALITROL” type or equivalent suitable for the application and subject to
      Toronto Hydro approval.

            

    

     

    
      	
              b.

            	
              A
      magnetic oil level gauge with low level alarm contacts shall be provided
      and shall be “QUALITROL” type or equivalent suitable for application and
      subject to Toronto Hydro approval.

            

    

     

    
      	
              c.

            	
              A
      “QUALITROL” series 208-60 pressure relief device or equivalent suitable
      for application and subject to Toronto Hydro approval shall be provided
      complete with the SPDT alarm switch
option.

            

    

     

    
      	
              d.

            	
              All
      alarm and trip contacts shall be wired to identified terminals in a common
      weatherproof terminal box located on the tank wall and accessible from
      ground level. Terminal box shall include terminals for the future addition
      of a 240/120 volt, 3 wire, 60 Hz. power supply for the purpose of powering
      cooling fans.

            

    

     

    
      	
              e.

            	
              The
      transformer shall be equipped with a .10 PSI positive/negative compound
      pressure-vacuum gauge.

            

    

     

    
      	
              f.

            	
              A
      pressure/vacuum bleeder device with provision to samples gas shall be
      provided.

            

    

     

    
      	
              g.

            	
              For
      transformers equipped with cooling radiators, the radiators shall be
      permanently connected to the tank.

            

    

     

    
      	
              h.

            	
              A
      one inch brass globe valve is to be provided for oil
    drainage.

            

    

     

    
      	
              i.

            	
              The
      liquid sampling valve shall be coupled to the dry side of the one inch
      brass drainage globe valve. A plug shall be installed in the sampling
      valve to prevent accidental oil
spillage.

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      	
              j.

            	
              A
      one inch. brass globe valve shall be provided for the upper conditioning
      unit connection.

            

    

     

    
      
        	
                5.3

              	
                Nameplate

              

      

    

     

    
      	
               
      

            	
              The
      vendor shall affix a nameplate to the transformer. The nameplate shall
      comply with CSA-C88-M90 Section 17. In addition, the words “CONTAINS NO
      PCB” shall be included on the
nameplate.

            

    

     

    
      	
               
      

            	
              For
      the purpose of this specification, “NO PCB” shall mean that, at the time
      of filling the transformer with insulating oil, the level of
      polychlorinated biphenyl in the oil was less than 2
  ppm.

            

    

     

    
      
        	
                5.4

              	
                Finish

              

      

    

     

    
      	
               
      

            	
              The
      finishing exterior paint shall be A.S.A. #61 Grey. The exterior finish
      shall conform to ANSI C57.12.28, clause 5.4, except the salt spray
      acceptance criteria shall be 3000
hours.

            

    

     

    
      	
              6

            	
              BUSHINGS

            

    

     

    
      	
              6.1

            	
              General

            

    

     

    
      	
               
      

            	
              Primary,
      secondary and neutral bushings shall be sized for 200% of the highest
      current rating of the transformer and carry load and overload currents in
      accordance with ANSI C57.92. The electrical characteristics for the
      primary and secondary bushings shall be in accordance with CSA C88 Table
      7. Compliance with EEMAC Standard is not
  required.

            

    

     

    
      	
               
      

            	
              Clearances
      between live parts to ground and phase to phase for primary and secondary
      bushings shall comply with minimum dimensions for indoor application in
      accordance with CEC C22.1, Table 30. The dimensions shall be based on
      distances between live parts including allowance for fasteners, etc., and
      are not centre to centre clearances.

               

              The
      Respondent shall state the conductor materials used in the windings and
      connections.

            

    

    
       

      
        	
                6.2

              	
                Primary
      Bushings

              

      

    

     

    
      	
               
      

            	
              The
      primary bushings shall be supplied with a 4 – hole NEMA spade terminal in
      accordance with CSA C2, Figure 3, Type
III.

            

    

     

    
      	
               
      

            	
              The
      insulation class of the primary bushing shall be rated higher than the
      winding insulation class to which it is connected as
    follows:

            

    

     

    
      	
               
      

            	
              For
      the 27.6 kV GrdY and 27.6 kV delta connections - 200kV
  BIL.

            

    

     

    
      	
               
      

            	
              The
      high voltage phase and neutral bushings (HO) shall be brought out of the
      tank wall into an air insulated weatherproof junction
  box.

            

    

     

    
      	
               
      

            	
              High
      voltage terminals shall be arranged right to left for H1 to H3 with HO to
      the right of H1 as seen when facing the high voltage side of the
      transformer.

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

         

    
      
        	
                6.3

              	
                Secondary
      Bushings

              

      

    

     

    
      	
               
      

            	
              The
      insulation class of the secondary bushing shall be higher than the winding
      insulation class to which it is connected as
  follows:

            

    

     

    
      	
               
      

            	
              For
      the 4160GrdY connection – 50 kV

            

    

     

    
      	
               
      

            	
              For
      the 600VGrdY and 208VGrdY connections -
45kV.

            

    

     

    
      	
               
      

            	
              The
      low voltage bushings, which shall be 4 to 8 hole NEMA spade as required,
      including a fully rated neutral bushing (XO) .shall be brought out through
      the transformer tank wall. The low voltage bushings shall be housed in an
      air insulated weather-proof junction box while, the neutral bushing shall
      be located outside the box (i.e.
exposed).

            

    

     

    
      	
               
      

            	
              Low
      voltage terminals shall be arranged left to right for X1 to X3 with XO to
      the left of Xl, as seen when facing the low voltage side of the
      transformer.

            

    

     

    
      
        	
                6.4

              	
                Neutral
      Bushings

              

      

    

     

    
      	
               
      

            	
              The
      BIL rating of the neutral bushings shall match that for the neutral end of
      both the primary and secondary windings in accordance with CSA C88 Table
      4.

            

    

     

    
      	
              7.

            	
              INSULATING MINERAL
      OIL

            

    

     

    
      	
               
      

            	
              The
      insulating mineral oil shall be new and meet the requirements of CSA C50,
      Class 13, Type IL The transformer shall be filled to the required design
      level when shipped.

            

    

     

    
       

      
        	
                8.

              	
                QUALITY
      ASSURANCE

              

      

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall establish and maintain a quality program in
      accordance with the requirements of ISO Standard 9001
  .

            

    

    
       

      
        	
                9.

              	
                TESTING
      REQUIREMENTS

              

      

    

    
       

      
        	
                9.1

              	
                Type
  Test

              

      

    

         

    
      	
               
      

            	
              The
      type tests listed in CSA C88, section 16, shall be carried out on a
      representative unit when requested by Toronto Hydro unless Certified Test
      Reports on an equivalent unit, that are acceptable to Toronto Hydro, are
      made available. The successful Respondent(s) must submit such test reports
      for approval by Toronto Hydro upon Toronto Hydro’s initial order of the
      transformer. Pricing for conducting the type tests shall be included in
      the Proposal, in the event that the Certified Test Report results prove to
      be unacceptable to Toronto Hydro.

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
              9.2 

            	
              Certified Test
      Reports

               

              The
      Certified Test Report must be submitted by the successful Respondent(s)
      and approved by Toronto Hydro prior to shipment of the equipment. Approval
      or rejection of the Certified Test Report will be given within five (5)
      Business Days of their receipt. The impulse type test report shall include
      a print of the wave form, measured test data, test sequence and wave
      identification, if requested by Toronto
Hydro.

            

    

     

    
      	
               
      

            	
              Upon
      the placement of Toronto Hydro’s initial order of the transformer, the
      successful Respondent(s) shall submit two copies of a Certified Test
      Report reflecting all production and type test results as outlined in this
      specification.

            

    

     

    
      	
               
      

            	
              If
      the manufactured equipment does not comply with all the requirements of
      this specification, Toronto Hydro reserves the right to reject all, or
      part of, the equipment under the Strategic Supply Agreement. The right of
      rejection will apply whether the equipment is in the plant, in Toronto
      Hydro warehouses or in the final installed
  position,

            

    

         

    
      
        	
                10.

              	
                TRANSFORMER LOSS
      EVALUATION

              

      

    

     

    
      	
              10.1

            	
              Respondents
      shall note that, in evaluating the Proposals, Toronto Hydro will calculate
      the present value of the quoted transformer losses and add it to the
      quoted prices using the following
formula:

            

    

     

    
      	
               
      

            	
              [XX]

            

    

     

    
      	
              a.

            	
              Excessive
      Loss Evaluation

            

    

     

    
      	
               
      

            	
              The
      quoted losses will be considered as guaranteed losses. In cases, where the
      final measured losses (or the final average measured losses if more than
      one unit) exceed the guaranteed values, Toronto Hydro reserves the right
      to reject all of the said units. If Toronto Hydro should choose to accept
      these units, the successful Respondent(s) shall reimburse Toronto Hydro
      for the additional cost of the transformer losses, which will be deducted
      from the successful Respondent(s)’s invoice.

               

              The
      additional cost of losses will be calculated as
      follows:

               

              [XX]

            

    

     

    
      	
               
      

            	
              c)

            	
              If
      both no-load and full-load losses exceed the guarantee, the calculation
      for the additional cost of losses will be based on the following
      formula

               

              [XX]

            

    

     

    
      
        	
                11.

              	
                INSTALLATION/MAINTENANCE
      MANUAL

              

      

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall submit two (2) copies of the relevant
      installation/maintenance manual to Toronto Hydro prior to testing of the
      units.

               

              The
      manuals shall include the
following:

            

    

     

    
      	
                  a)   

            	
              The
      successful Respondent(s)’s reference numbers, Toronto Hydro’s purchase
      order number and the proposed address at which the transformers are to be
      located.

            

    

     

    
      	
                  b)   

            	
              Installation
      and maintenance instructions.

            

    

     

    
      	
                  c)   

            	
              Accessories’
      catalogue information, brochures,
etc.

            

    

     

    
      	
                  d)   

            	
              A
      copy of the nameplate and outline
drawings.

            

    

     

    
      	
              12

            	
              STORAGE

            

    

     

    
      	
               
      

            	
              Respondents
      shall include in the quoted price the cost of storing the transformers for
      up to thirty (30) days past the scheduled delivery date indicated on the
      purchase order. A separate price shall be included for storage of the
      transformers on a weekly basis, in the event additional storage time is
      required, after the. thirty (30) day
period.

            

    

     

    
      
        	
                13

              	
                MARKINGS

              

      

    

     

    
      	
               
      

            	
              In
      addition the words “contains no PCB” shall be shown on the transformer
      nameplate, A Non-PCB sticker shall be applied by the successful
      Respondent(s).

            

    

     

    
      	
               
      

            	
              In
      addition, the kVA rating and the voltage rating of the transformer shall
      be marked under the secondary bushings in white. This designation shall
      consist only of the numbers without kVA or volt wording. The numbers shall
      have a uniform minimum height of 50 mm. If decals are used, they shall
      meet the Type A label requirements of CSA C22.2 No. 0.15 and shall
      maintain their integrity down to -40°C. The stock code number shall be
      stenciled at the front of the unit under the kVA and voltage
      markings.

            

    

     

    
      	
              14

            	
              WITNESSING

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall advise Toronto Hydro a minimum of four (4)
      Business Days in advance of scheduled testing to enable Toronto Hydro to
      send inspectors to witness the production tests. All testing shall be
      completed during the Toronto. Hydro normal working hours (Monday to
      Thursday, 7:30 a.m. to 3:30 p.m., Friday, 7:30 a.m. to 12:00 p.m.), with
      the successful Respondent(s) being responsible for all costs incurred by
      Toronto Hydro for time spent beyond the said hours. Where the location of
      transformer testing is more than 200 km from Toronto Hydro, a minimum of
      seven (7) Business Days notice will be
required.

            

    

     

    
      	
               
      

            	
              All
      transformers of each rating on order may be test-witnessed at the
      discretion of Toronto Hydro
inspectors.

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall provide Toronto Hydro inspectors, without
      restriction, access to its premises and test areas for the • purpose of
      quality surveillance and
verification

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro reserves the right to select, at random, transformers from a
      production lot for the production tests, when
  necessary.

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
              15

            	
              EVALUATION
      DATA

            

    

     

    
      	
               
      

            	
              Respondents
      must provide the following information to Toronto Hydro for the evaluation
      of the transformer losses and characteristics. Proposals lacking the
      required data may not be evaluated.
•

            

    

     

    
      	
               
      

            	
              Guaranteed
      value of no-load losses at 100% rated voltage and corrected to 85
      °C.

            

    

     

    
      	
               
      

            	
              Exciting
      current.

            

    

     

    
      	
               
      

            	
              Guaranteed
      value of load losses and impedance at rated current and voltage, corrected
      to 85 °C.

            

    

     

    
      	
               
      

            	
              Percentage
      regulation at 0.8 and unity power
factors.

            

    

     

    
      	
               
      

            	
              Efficiency
      at 1/4, 1/2, 3/4, full-load and 5/4
full-load.

            

    

     

    
      	
               
      

            	
              Material
      used for high-voltage and low-voltage
windings.

            

    

     

    
      	
               
      

            	
              Bushing
      technical data.

            

    

     

    
      	
               
      

            	
              Layout
      drawing showing dimensions and weights and location of all devices and
      features

            

    

     

    
      	
               
      

            	
              Location
      of plant where transformers are to be
  manufactured.

            

    

     

    
      	
               
      

            	
              Delivery
      terms.

            

    

     

    
      
        	
                16

              	
                DRAWINGS

              

      

    

     

    
      	
               
      

            	
              In
      the event of an order, the successful Respondent(s) shall submit to
      Toronto Hydro three (3) copies of the following drawings for approval,
      prior to the commencement of
production:

            

    

     

    
      	
              ·  

            	
              Dimensional
      outline drawing.

            

    

     

    
      	
              ·  

            	
              The
      drawing shall accurately display all features of the unit to be supplied.
      Any feature not being provided shall not be
  shown.

            

    

     

    
      	
              ·  

            	
              The
      drawing shall show primary and secondary voltages and kVA of unit being
      supplied.

            

    

     

    
      	
              ·  

            	
              The
      drawing shall also bear the Toronto Hydro name and the relevant purchase
      order number.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
              ·  

            	
              Nameplate
      data such as weight, dimensions, litres of fluid, base detail, location of
      bushings and devises and other required
data.

            

    

     

    
      	
               
      

            	
              One
      copy of each, bearing Toronto Hydro approval with any remarks or comments,
      will be returned to the successful Respondent(s). If revision to the
      drawing is made, re-submission for approval is required unless stated
      otherwise, in writing, by Toronto
Hydro.

            

    

     

    
      	
               
      

            	
              Once
      the dimensional outline and the nameplate data drawings are approved by
      Toronto Hydro, new drawings for identical units are not required for the
      duration of the Strategic Supply
Agreement.

            

    

     

    
      	
               
      

            	
              The
      drawings shall also bear Toronto Hydro name and the relevant purchase
      order number.

            

    

     

    
      	
              17

            	
              SHIPMENT

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall take all necessary precautions to avoid
      damage to the transformers during shipment and to ensure safe arrival at
      destination. Any damage to the paint, tank, cover, bushings or internal
      parts of any transformer on receipt at destination will be cause for
      rejection of the units until satisfactory repairs are completed by the
      successful Respondent(s). Any claims against the transport company will be
      the responsibility of the successful Respondent(s).

               

              Shipment
      shall only be made when authorization is given by Toronto
      Hydro.

            

    

              

    
      	
              18

            	LATE
    DELIVERY

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) agrees that m the event it should fail to deliver
      the transformer within the time scheduled for delivery as specified in the
      purchase order, it may be required to pay to Toronto Hydro a fee, up to a
      maximum of ten percent (10%) of the total purchase price, which will be
      deducted from the invoice.

            

    

     

    
      	
               
      

            	
              This
      fee will be deducted only if Toronto Hydro, as a result of the shipment
      delay, is required to construct and remove temporary facilities which may
      be required to meet Toronto Hydro’s commitments to provide electric
      power.

            

    

     

    
      	
               
      

            	
              Toronto
      Hydro also has the right to cancel the order without cost to Toronto Hydro
      if the late delivery is deemed unacceptable, in Toronto Hydro’s sole
      discretion.

            

    

     

    
      	
              19

            	WARRANTY

    

     

    
      	
               
      

            	
              If
      a transformer is defective upon arrival or malfunctions in normal service,
      for causes other than accident, misapplication, or abuse, for a period of
      one (1) year after the unit is placed in service, or two (2) years after
      delivery, whichever occurs first, the defective transformer will be
      returned to the successful Respondent(s) by common carrier at the
      successful Respondent(s)’s expense.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) shall make good all defects or shall provide a
      new transformer to replace the defective one without cost to. Toronto
      Hydro. If the successful Respondent(s) fails to repair or replace the
      returned transformer within a time period agreed upon by the parties, the
      successful Respondent(s) shall reimburse Toronto Hydro for the purchase
      price of the transformer. Transformers returned under warranty -shall have
      a Certified Test Report and a report on the cause of
    failure.

            

    

     

    
      	
               
      

            	
              Approval
      of tests by Toronto Hydro or its appointed agents shall not relieve the
      successful Respondent(s) of its responsibilities with respect to
      warranty.

            

    

     

    
      	
              20

            	
              DELIVERY

            

    

     

    
      	
               
      

            	
              Respondents
      shall state in weeks the shipment time from the date of award of the
      Strategic Supply Agreement. The location within the City of Toronto to
      which the delivery is to be made will be specified by the time of
      shipment. ,

            

    

     

    
      	
               
      

            	
              The
      successful Respondent(s) is to provide five (5) Business Days’ notice
      prior to shipment so that arrangements can be made to receive
      transformers. Transformers shall be delivered during normal working hours,
      Monday to Thursday (7:30 a.m. to 3:30 p.m.), Friday (7:30 a.m. to 12:00
      p.m.) allowing sufficient time for receiving and offloading the
      transformers.

            

    

     

    
      	
               
      

            	
              Transformers
      shall only be delivered after the submitted drawings and test results have
      been approved by Toronto Hydra

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    

     

     

     

    Toronto
Hydro-Electric System Limited

     

    ED
384

     

    TECHNICAL
REQUIREMENTS

     

    FOR

     

    OFF-LOAD
TAP CHANGING

     

    10000/13333
KVA 60 CYCLE, 3 PHASE

     

    OUTDOOR
STATION TYPE TRANSFORMERS

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF
CONTENTS

     

    
      
        	1.  	PART 1- GENERAL
      CONDITIONS	2
	 	 	 
	2.	PART 2 -SCOPE OF
      WORK	2
	 	 	 
	 	PART 3 - CONDITIONS
      OF OPERATION	2
	 	 	 
	 	PART 4 - KVA RATING
      & TEMPERATURE RISE	2
	 	 	 
	3.  	PART 5 -VOLTAGE
      RATING	3
	 	 	 
	4.  	PART 6 - VOLTAGE
      TAPS	3
	 	 	 
	 	PART 7 -
      POLARITY	3
	 	PART 8 - IMPEDANCE
      VOLTAGE	3
	 	PART 9 -
      STANDARDS	4
	 	PART 10 -
      TRANSFORMER TANKS	 
	 	PART 11 - PRESSURE
      RELIEF DEVICE 	5
	 	PART 12 - PRESSURE
      VACUUM GAUGES	 
	 	PART 13 - FORCED AIR
      COOLING	5
	 	PART
      14 - CORE & WINDINGS	6
	 	PART
      15 - WINDING TEMPERATURE DEVICE6	6
	 	PART
      16 - PRIMARY TERMINAL ARRANGEMENT	6
	 	PART
      17 - SECONDARY TERMINAL ARRANGEMENT	6
	 	PART
      18 – OIL	6
	 	PART
      19 - INTERNAL CONNECTIONS	7
	 	PART
      20 -CONTROL TERMINAL BOX	7
	 	PART
      21 - ACCESSORIES	7
	 	PART
      22 - NAMEPLATES	8
	 	PART
      23 - PERFORMANCE CHARACTERISTICS	8
	 	PART
      24 - INSPECTION OF MANUFACTURE	8
	 	PART
      25 - TESTS	9
	 	PART
      26 - INFORMATION REQUIRED WITH QUOTATION 	10
	 	PART
      27 - DRAWINGS 	10
	 	PART
      28 - INSTRUCTION MANUALS	11
	 	PART
      29 - GUARANTEES	11
	 	PART
      30 - SPARE PARTS	11

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      PART 1 — GENERAL CONDITIONS

       

      
      

    

    All
general details of construction must be approved by Toronto Hydro before
production commences, but such approval Shall not be permitted to interfere with
the time of shipment specified in the order.

     

    Respondents
shall submit with their Quotations their standard form of technical
specifications, efficiencies, losses, regulation, approximate weight and
dimensions, and all other information and documents requested herein. Nothing
contained in the Quotation shall be construed as permitting any modification of
the requirements of these specifications unless such modification is
specifically approved in writing by the Engineer. Respondents’ are free to
submit Quotations differing from this specification, provided that the
differences proposed are clearly defined and are accepted and approved by the
Engineer.

     

    PART 2 —
SCOPE OF WORK

     

    This
specification covers the supply, delivery FOB to Toronto Hydro premises,
unloading of off-load tap changing, oil immersed, outdoor, station type
transformers, having a self cooled continuous rating 10,000 kVA and a forced air
cooled continuous rating of 13,333 kVA. The number of transformers will be
specified in the enquiry.

     

    PART 3 —
CONDITIONS OF OPERATION

     

    The
transformers shall be suitable in all respects for operation on the 27,600 volt
rated, 60 cycle system of Toronto Hydro. This is either a delta connected system
grounded by means of a grounding transformer or a wye connected system grounded
by means of a current limiting reactor connected between the star point of each
Hydro One transformer winding and the multi-ground system neutral.

     

    Respondents
shall acquaint themselves with the conditions under which the transformers will
be called upon to operate, and upon request, every reasonable facility will be
accorded bonafide Respondents to investigate these conditions. The successful
Respondent(s) will be deemed to have satisfied itself in this regard, and by
executing the Contract, shall assume full responsibility for understanding the
conditions of supply, operation, and service. While provision is made elsewhere
in this specification for the Engineer to Approve drawings, inspect manufacture,
and witness tests, none of these shall, in any way, relieve the successful
Respondent(s) of this responsibility.

     

    PART 4 —
KVA RATING AND TEMPERATURE RISE

     

    The
transformer shall be capable of carrying their full load ratings continuously
with an average temperature rise on any winding, by resistance, not exceeding
55°C.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    PART 5 —
VOLTAGE RATING

     

    The rated
high voltage of the high voltage (primary) windings shall be 27.6 kV delta and
the rated voltage of the low voltage (secondary) winding shall be 13800/7970
volts grounded wye.

     

    PART 6 —
VOLTAGE TAPS

     

    The high
voltage (primary) winding shall have five full load or rated kVA taps such that
normal secondary voltages can be obtained with a primary voltage of 27600,
26910. 26220, 25530 or 24840 volts. Oil immersed off-load tap selector switches
shall have a common external operating mechanism to permit changing taps
simultaneously on all phases, without removing the transformer
cover.

     

    A warning
sign as follows will be mounted on the external face of the operating mechanism
component, with the inscription stating:

     

    “WARNING
- OPERATE TAP CHANGER ONLY WHEN TRANSFORMER IS DE-ENERGIZED”

     

    The
operating mechanism shall indicate the tap in use, and shall be provided. With
facilities for locking in each position a standard Toronto Hydro
padlock.

     

    Accessibility
of the tap changer contacts during repair/ maintenance shall not require removal
of the windings, coil or other major components of the transformer.

     

    PART 7 –
POLARITY

     

    The
primary and secondary connections shall be arranged to produce the following
delta-Y phase relations:

     

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    PART 8 –
IMPEDANCE VOLTAGE

     

    The
transformer shall have an impedance voltage of 5.0%. with a tolerance of
plus/minus 7.5%. and shall be based on the self-cooled rating of 10,000 kVA on
the 27600-13800 volt tap.

     

    PART 9 –
STANDARDS

     

    Unless
otherwise specified, the equipment and accessories shall be designed,
manufactured and tested, where applicable, in accordance with the following
standards:

     

    
      	ANSI  	C57.12  Distribution,
      Power and Regulating Transformers, and
      Reactors other than Current-Limiting Reactors
	 	 
	ANSI	C57.12.90
      Test Code for Transformers, Regulators and
      Reactors
	 	 
	ANSI	C57.92 Guide
      for Loading Mineral-Oil Immersed Power Transformers
      up to and including 100 M VA with 55°C
      or 65°C Average Winding Rise
	 	 
	ANSI	C57.106Guide for
      Acceptance and Maintenance of Insulating Oil
      in Equipment
	 	 
	ANSI	C63.2 Radio Noise
      &.Field Strength Meters
	 	 
	ASTM 	D3487Standard
      Specification for Mineral Insulation Oil Used
      in Electrical Apparatus

    

     

    CSAC88-
1990 Standard Specification for Power Transformers

     

    CSAB11-1949
Unified and American Screw Threads

     

    CSAC13-1958
Instrument Transformers

     

    CSAC22.1
& C22.2 Canadian Electrical Code

     

    CSAC22.2
No.28Wiring

     

    CSAC88
Transformer Nameplates

     

    
      
        	CSA	C22.4, No.103
      Tolerable Limits and Special Methods of Measurement of Radio Interference
      from high Voltages Lines and Apparatus
	 	 
	EEMAC	1 GL-1-1957 Standard
      for Transformer and Apparatus Bushing
	 	 
	EEMAC 	6
      L-1-1959Accessories for Power
Transformers

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      	EEMAC 	Ml
  Motors
	 	 
	EEMAC	LI3- 1Dielectric
      Tests for Test Procedures for Power
Transformers

    

     

    PART 10 –
TRANSFORMER TANK

     

    Each
transformer shall be sealed, with a gas space above the fluid, to prevent
breathing under normal operating conditions. The gas space shall be dry air, and
must allow for expansion and Contraction with temperature changes. The tank and
fittings must be designed to withstand the internal operating pressures without
leaking liquid or gas.

     

    Each tank
and cover shall be of steel plate construction, with a sled type structural
steel base designed to permit skidding or moving the transformer on pipe rollers
in either direction, and fitted with jack steps suitable for use with toe jacks.
A vertical clearance of 21 inches shall be provided above the jack steps. The
transformer shall meet the stability requirements of ANSI Standard
C57.12.

     

    All
gaskets shall be made from cork nitrite rubber sheets or other non-aging
material, which will permit removing and replacing the cover, bushings, etc.,
without damaging the gasket. Separable radiators, if used, shall be complete
with top and bottom valves and drain plugs. Lifting lugs shall permit the
handling of the transformer complete with all fittings and oil.

     

    All steel
parts of the transformer, before painting, shall be thoroughly cleaned of rust,
oil, or scale by blasting with sand or steel shot. All internal steel parts,
including core clamps, shall then be finished with two coats of oil resistant
paint, the exterior with a red non-lead or other approved primer, followed by
two coats of high quality weather resistant enamel, the last of which shall be
equipment green, Munsell 9 GY 1.5/2.6. •

     

    Each
transformer base shall be fitted at two diagonal corners, with a ground
terminal, consisting of a flat terminal pad of bronze or stainless steel, 2” x
3”, drilled with 9/16” holes at 1-3/4” centers. Blind tapped holes are not
acceptable.

     

    PART 11 –
PRESSURE RELIEF DEVICE

     

    Each
transformer shall be equipped with a pressure relief device, Qualitrol Series
208, and a Fluid Deflector, Qualitrol SLD-603. Each transformer shall also
provide 4” pipe securely mounted for discharge 315mm (12”) above
grade.

     

    PART 12 –
PRESSURE VACUUM GAUGE

     

    Each
transformer shall be equipped with a pressure vacuum gauge, Qualitrol model
050-010-01.

     

    PART 13
FORCED AIR COOLING

     

    All fans
supplied for forced air cooling shall be suitable for outdoor operation. Motors
shall be 230 volt, single-phase, 60 cycle, and shall be complete with all wiring
and auxiliary control devices. A terminal strip shall be provided in the control
terminal box described in Section 20, for termination of an external 230 volt,
single phase supply. Wiring to fans and accessories is to be in EMT conduit with
waterproof fittings. Fan guards shall have maximum grid opening of 1⁄2” x
1⁄2”.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    PART 14 –
CORE & WINDINGS

     

    Each
transformers shall have the core ground brought to the outside of the
transformer tank through an insulating bushing and grounded externally via a
removable link.

     

    Windings
shall be copper conductors. Aluminum conductors are not acceptable

     

    PART 15 –
WINDING TEMPERATURE DEVICE

     

    The
winding temperature device shall be a Qualitrol Model /ED509, Electronic
Temperature Monitor, complete with Ambient Temperature Sensor, Qualitrol Model
103L 049-01. The electronic temperature sensor shall be provided in a weather
proof enclosure, with a 120VAC heater. The heater shall be of anti-condensation
type and arranged to operate at ambient air temperature of 10°C and below with a
normally open dry alarm contact.

     

    PART 16 –
PRIMARY TERMINAL ARRANGEMENT

     

    Primary
phase terminal leads shall leave the transformer case through an approved Air
Terminal Chamber (ATC), suitable for both bottom entrance of cable terminators,
or top entrance with a bushing. The ATC shall be suitable for three (3) single
conductors, 4/0 kcmil, 27.6kV, XLPE cable. Access panels should be hinged at the
side, and bolted at the top and bottom.

     

    PART 17 –
SECONDARY TERMINAL ARRANGEMENT

     

    Secondary
phase terminal leads shall leave the transformer case through an approved Air
Terminal Chamber (ATC), suitable for both bottom entrance of cable terminators,
or top entrance with a bushing. The ATC shall be suitable for six (6) single
conductors, two(2) per phase. 500 kcmil, 27.6kV. XLPE cable. Access panels
should be hinged at the side, and bolted at the top and bottom.

     

    The
secondary neutral lead shall be brought out through a cover mounted outdoor
porcelain bushing rated 5 kV, 1200 amperes, and shall be in accordance with the
latest revision of EEMAC GL1-2, and having a 3” x 3” flat terminal pad drilled
with four 9/16” holes at 1-3/4” centres.

     

    AU
terminal pads shall be drilled in accordance with NEMA Standard SG1, Sections
SG1-4.04 and SG1-4.05 (4 hole 1/2” bolts on buildings, 2 hole 1/2” bolts on case
ground)

     

    PART 18 –
OIL

     

    All
transformers shall be vacuum filled with insulating oil.

     

    Each
transformer shall be complete with a first filling of insulating oil that meets
or exceeds CSA-050-97 Specification for Class A, Type II oil.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    The bulk
of the oil shall be contained in the transformer case during shipment, any small
quantity which is removed to facilitate shipping being forwarded in sealed cans
or in returnable sealed steel drums. As an alternative method of shipment, the
transformer cases may be filled with an approved, dry, inert gas, maintained
automatically at a pressure slightly above atmospheric. In this case, all oil
shall be supplied in sealed drums, as specified above. In either case, the final
filling shall be carried out by the successful Respondent.

     

    PART 19 –
INTERNAL CONNECTIONS

     

    All
bolted internal connections shall be provided with lock nuts or other locking
devices approved by the Engineer. In the case of bolted flat surface
connections, single bolt connections are not acceptable.

     

    PART 20 –
CONTROL TERMINAL BOX

     

    At the
side of the transformer tank,. at a convenient working height, shall be located
a weather tight steel plate terminal box with a hinged cover, complete with
glands or connectors to receive Toronto Hydro’s PVC sheathed control cables from
below. To this box shall be brought the alarm and trip connections from the oil
gauge contacts, the pressure vacuum gauge, the winding temperature device, and
the fan supply wiring, etc..

     

    All alarm
and status indication devices shall have electrically separate, normally open
contacts suitable for I25V DC brought out to a terminal block in the control
cabinet.

     

    Each
device shall be furnished with a descriptive nameplate. The wiring shall be
fully labeled for its function and terminations.

     

    The
cabinet shall be NEMA 4, slightly vented to prevent condensation. The cabinet
shall have a thermostatically controlled space heater, programmed to operate at
ambient air temperatures of 10°C and below with a manually operable ON/OFF
switch: The cabinet shall have a 120VAC light with a door activated switch, and
a 120VAC ground fault receptacle.

     

    PART 21 –
ACCESSORIES

     

    Each
transformer shall be equipped with a standard maximum registering oil
temperature thermometer, Qualitrol model 151-103-01, located in a separate well
from the transformer tank.. Suitable manholes shall provide access to the
interior of the transformer for inspection purposes.

     

    Each
transformer shall be equipped with an oil level gauge, Qualitrol Series 035,
with switches for alarm functions.

     

    Each
transformer shall be equipped with a 1/4” oil sampling valve and two 1” filter
press valves, one at the top of the tank, and one at the bottom. A petcock
should be provided in series with the 1/4” oil sampling valve. The petcock
outlet shall be suitable for attaching a rubber tube of 3/16” inside diameter.
An illustration of a typical Toronto Hydro installation is shown on Sketch #1.
All valves shall be rated for 150 pound service of Jenkins manufacture or equal,
having American Standard flanges or taper pipe threads, shall be titled with
brass pipe plugs, and must not project beyond the main dimensions of the
transformers.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    PART 22 —
NAMEPLATES

     

    Nameplates
shall be of etched stainless steel, monel metal, or other approved stainless
metal. Markings shall conform to the latest revision of CSA Standard C88. The
winding material shall be indicated on the nameplate.

     

    In
addition to the main nameplate, each valve shall be provided with a nameplate
indicating its function and normal position.

     

    PART 23 -
PERFORMANCE CHARACTERISTICS

     

    A) The
Respondent shall specifically state and guarantee the performance
characteristics on the attached “Quotation Information Form”.

     

    B) The
Respondent must confirm that the unit is suitable for 125% overloads for 12
hours in a 0°C ambient without exceeding the rated temperature rise of the
windings, or of any other current carrying component (i.e., tap switch and all
bushings, etc...).

     

    PART 24 –
INSPECTION OF MANUFACTURE

     

    During
the period of manufacture, the successful Respondent shall afford the Engineer
safe and proper facilities for inspection of the work. In particular, the
successful Respondent shall specifically inform the Engineer when the core and
coil assembly of each transformer has been completed, so that he or she may
inspect it before it is placed in its tank.

     

    At least
three weeks prior to the commencement of acceptance tests, the successful
Respondent shall submit, for Toronto Hydro review and approval, a detailed test
program and schedule indicating the sequence of tests, proposed dates, the unit
numbers to be tested, diagrams showing proposed connection, thermocouple
locations for temperature rise tests, test methods or procedures and description
of test equipment. Tests shall be conducted during the following hours: Monday
to Thursday, 7:30 a.m. to 3:30 p.m. and Friday, 7:30 a.m. to 12:00 p.m., unless
otherwise agreed upon by the Engineer.

     

    Before
the acceptance tests are made, the successful Respondent shall give Toronto
Hydro notice in writing (at least five (5) Business Days plus travel time prior
to commencement of tests), so that the Engineer or his or her representatives
may witness the tests.

     

    PART 25 -
TESTS

     

    A)
Irrespective of any clauses in the. Quotation, the successful Respondent shall
run full and complete shop tests, in the presence of the Engineer, on all
equipment supplied. These tests shall include the following, all as set out in
ANSI Standards C57 12.90-1973 and CSA-C88-1990 or later revisions.

     

    a)           Winding
resistance measurements of high and low voltage sides at all tap
positions.

     

    b)           Ratio,
polarity and phase relations.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    c)           No
load loss and exciting current at 100%, 110% and 115% normal
voltage.

     

    d)           Load
loss and impedance voltage.

     

    
      	
              e)

            	
              Temperature
      tests - heat run on one transformer (must be done on the transformer with
      the highest. losses).

            

    

     

    
      	
              f)

            	
              Dielectric
      tests at 75°C (approximately) including chopped wave
  tests.

            

    

     

    
      	
              g)

            	
              Standard
      impulse tests one transformer (exception: 75kV BIL on the 4.16kV
      winding)

            

    

     

    
      	
              h)

            	
              Standard
      NEMA transformer noise level tests (exception: maximum sound level of 58
      dB)

            

    

     

    
      	
              i)

            	
              Calibration
      tests on winding temperature
indicator.

            

    

     

    j)           Oil
pressure test – 5 p.s.i. above top oil

     

    
      	
              k)

            	
              Ratio,
      polarity, insulation and functional checks on current transformers and
      associated wiring.

            

    

     

    
      	
              l)

            	
              Power
      factor tests shall be made on all windings in accordance with Method 2 of
      ANSI C57.12.90 after the transformer is completely assembled and filled
      with oil.

            

    

     

    
      	
               
      

            	
              The
      maximum acceptance level for any power factor test is
  0.5%.

            

    

     

    
      	
              B)

            	
              Certified
      Results - Four (4) copies of the certified results will be submitted in a
      report form that will include the certified test results, test program and
      test procedures.

            

    

     

    
      	
               
      

            	
              The
      test procedures document shall define the operating steps and expected
      results and tolerances for each test. As a minimum, each test procedure
      shall include the following
subsections:

            

    

     

    •           purpose

    •           scope

    •           reference
documents

    •           test
equipment

    •           test
procedures and

    •           acceptance
criteria

    

    A test
record shall be created for each equipment delivered. It shall be a form which
identifies, for each test, the following information:

     

    •           identification
of the equipment tested, by model number and serial number

    •           test
results and

    •           date
and signature of person responsible for conducting the test

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    4.1           PART 26 – INFORMATION
REQUIRED WITH QUOTATION

     

    The
information and drawings (5 sets) submitted with the Quotation shall include the
following:

     

    
      	 	• 	Completed technical
      data and guarantee sheets (Quotation Information Form)
	 	•	Outline
      drawings, drawn approximately to scale, indicating the overall dimensions
      of the equipment and location of major components, cable openings, weight
      and foundation and anchor details
	 	•  	Schedule for
      submission of approval drawings
	 	•  	SHIPPING DIMENSIONS,
      WEIGHTS

    

     

    In
addition, Respondents shall include a complete description of the tap changer
mechanism, the transformer construction, details of the auxiliary power
requirements for operation of the cooling fans. etc.. and continuous current
ratings of the tap switch and bushings.

     

    4.2           PART 27 -
DRAWINGS

     

    Respondents
shall submit with their Quotations drawings giving approximate outline
dimensions and weights of the various pieces of equipment, together with
bulletins; photographs, etc., showing the general construction of the equipment
they propose to supply. After the Contract is awarded and an order for equipment
is placed, the successful Respondent shall submit to the Engineer, for his/her
approval and comments, three (3) prints certified for construction purposes, of
drawings and diagrams of connections for the transformers. Production shall not
commence until the successful Respondent receives formal approval of these
drawings from the Engineer, and no  allowance will be made by Toronto
Hydro for any additional cost to the successful Respondent arising from his/her
failure to secure such approval.

     

    The final
drawings shall be submitted in Microstation DGN format (DOS or UNIX). In case
the successful Respondent chooses to use software other than Microstation for
production of drawings, it is the successful Respondent’s sole responsibility to
ensure that the translation between the systems occurs free of errors and that
the resulting final product is 100% Microstation compatible. Files converted on
DGN format that do not plot in Microstation plotting environment will not be
accepted.

     

    Data may
be submitted in one of the four (4) formats listed below with MicroStation –DGN
being the most preferred:

     

    1.           MicroStation
- DGN format

    2.           AutoCAD
- DWG format (up to Release 2004, although Release 13/14 is preferred)
..

    3.           Intergraph
CCIT Group4 - CIT format (scanned raster drawing @ 200 dpi)

    4.           Autodesk
- DXF format

     

    Note: DXF formats may
not be accepted due to the large number of incompatibilities with file
translation.

     

    One set
of prints shall be submitted with discs.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    PART 28 –
INSTRUCTION MANUALS

     

    At the
time shipment is made, the successful Respondent shall forward to the Engineer
five (5) copies of an instruction manual, incorporating manufacturer technical
literature, maintenance and adjustment instructions, and repair parts list for
the transformers and their accessories which include all control devices,
including without limitation, switches, relays and winding temperature
indicators.

     

    PART 29 –
GUARANTEES

     

    Except
where otherwise set out in this specification, the successful Respondent shall
guarantee all equipment supplied for a period of five (5) years after delivery,
against defects in design, materials or workmanship, and against oil leaks
(unless caused by abuse on the part of Toronto Hydro) for a period of three (3)
years after delivery.

     

    PART 30 –
SPARE PARTS

     

    Respondents
shall supply with the Quotations a separate list of recommended spare parts,
including recommended quantities and current unit costs. The list shall include
the off-load tap changer mechanism and the tap contacts.. The Respondent’s spare
parts shall be considered separate from the Quotation, and as such, their costs
shall be quoted separately from the costs for the manufacture, supply and
delivery of the transformers. Toronto Hydro reserves the right, but shall not be
obligated, to purchase any quantities of the recommended spare parts at the
quoted prices for a period of one (1) year from the Date for Execution of the
Contract.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    APPENDIX
A

     

    QUOTATION INFORMATION FORM
PAGE

     

    
    

     

    
      	1.0	SCHEDULE OF
      EVENTS	2
	 	 	 
	2.0 	PERFORMANCE
      DATA	3
	 	 	 
	2.1	RATING S	3
	 	 	 
	2.2  	TAP
    CHANGERS	4
	 	 	 
	2.3  	BUSHINGS	4
	 	 	 
	2.4 	OIL 4,	5
	 	 	 
	3.0 	LIST OF
      DEVIATIONS	6

    

     

     

    NOTES:

     

    1.           All
information requested herein shall be submitted to render the Quotation valid.
..

     

    2.           Items
which do not apply shall be marked “NA”.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.0           SCHEDULE OF
EVENTS.

     

    The
targets are given in weeks and are based on the first item listed.

                        

    
      	EVENTS   	DATES
      SPECIFIED 	DATE
      OFFERED
	BY
      TORONTO HYDRO   	BY
      RESPONDENT	 

       

      	
              1
      .Award of Contract Week 0

            	 
      	 
	
              2.
      Post award meeting to submit

              simplified critical path
      network

              for approval. Outline
      drawings

              indicating foundation details
      Week 2

            	 
      	 
	
              3.
      General arrangement drawings

              with bills of material
      for

              approval Week 6

            	 
      	 
	
              4.
      Schematic diagrams for

              approval Week 6

            	 
      	 
	
              5.
      Wiring diagrams for information Week 8

            	 
      	 
	
              6.
      Final general arrangement

              drawings, schematic
      and

              wiring diagrams Week
      12

            	 
      	 
	
              7.
      Tests Week 20

            	 
      	 
	
              8.
      Final instruction manuals Week 22

            	 
      	 
	
              9.
      Delivery Week 22

            	 
      	 

    

     
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.0         GUARANTEES

     

    
      	
              2.1

            	
              Performance Ratings

            	 	    Unit of
      Measure	 
	 
      	     
      	 	
               

            	 
	 
      	
              MVA
      Transformer

            	 	 
      	 
	 
      	
              1.
      No-load loss at 75°C winding:

            	 	 
      	 
	 
      	
              100% of the rated voltages
      kW

            	 	 
      	 
	 
      	
              110% of the rated voltages
      kW

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              2.
      Full-load loss at 75°C winding: temperature at:

            	 	 
      	 
	 
      	
              100% rated voltages
      kW

            	 	 
      	 
	 
      	
              110% rated voltages
      kW

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              3.
      Exciting current at:

            	 	 
      	 
	 
      	
              100% rated voltage
      Amps

            	 	 
      	 
	 
      	
              115% rated voltage
      Amps

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              4.
      Efficiency- when operating at

            	 	 
      	 
	 
      	
              rated voltages and
      frequency

            	 	 
      	 
	 
      	
              and at unity power factor
      at

            	 	 
      	 
	 
      	
              75°C winding
      temperature:

            	 	 
      	 
	 
      	
              25% of full load
      rating%

            	 	 
      	 
	 
      	
              50% of full load
      rating%

            	 	 
      	 
	 
      	
              75% of full load rating
      %

            	 	 
      	 
	 
      	
              100% of full load rating
      %

            	 	 
      	 
	 
      	
              125% of full load rating
      %

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              5.
      Thermal time constant Hours

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              6.
      Positive sequence impedance %

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              7.
      Zero sequence impedance %

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              8.
      Guaranteed noise level dB

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              9.
      Regulation at 75°C

            	 	 
      	 
	 
      	
              100% P F%

            	 	 
      	 
	 
      	
              80% P F%

            	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
              10.
      Type of Windings

            	 	 
      	 

    

     

    
      
        
        

      

      
        3

        
          

        

      

       

      
        
        

      

    

    
      	
              2.2

            	
              Tap
      Changers

            	
            	Unit
      of Measure	 
	 
      	
              1.

            	
              Manufacturer

            	 
      	 	 
	 
      	
              2.

            	
              Type

            	 
      	 	 
	 
      	
              3.

            	
              Is
      literature enclosed?

            	 
      	 	 
	 
      	
              4.

            	
              Total
      range %

            	 
      	 	 
	 
      	
              5.

            	
              Number
      of steps

            	 
      	 	 
	 
      	
              6.

            	
              Method
      of operation

            	 
      	 	 
	 
      	
              7.

            	
              Capacity
      Amps

            	 
      	 	 
	 
      	
              8.

            	
              BIL
      level kV

            	 
      	 	 
	 
      	
              9.

            	
              Relative
      position on windings

            	 
      	 	 

    

     

    2.3         Bushings
27.6kV13.8kVN

     

    
      	 	1.60Hz with stand
      kV __________________
	 	 
	 	
            	- 1 minute dry
      kV       ____________
	 	 	 
	 	
            	-10 seconds wet
      kV   ____________
	 	 	 
	2.          
      BIL level kV  
	 	 	 
	2.4         Oil
	 	 	 
	 	1.           Manufacturer _____________
	 	 
	 	2.          
      Dielectric constant  _________________
	 	 
	 	3.          
      Dielectric Strength kV  _____________
	 	 	ASTM
    D8777-64
	 	 	(60Hz,
      25 C)
	 	 	 
	4.           PCB
      content ppm 
	 
	5.           Water
      content ppm 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

                                  

    
      	
              2.5         Dimensions

            	 	Unit of Measure	 
	 
      	 	
            	 
	 
      	 	 
      	 
	
              Total
      net weight with oil kg

            	 	 
      	 
	 
      	 	 
      	 
	
              Net
      weight of core & coils kg

            	 	 
      	 
	 
      	 	 
      	 
	
              Net
      weight of oil kg

            	 	 
      	 
	 
      	 	 
      	 
	
              Quantity
      of oil L

            	 	 
      	 
	 
      	 	 
      	 
	
              Minimum
      shipping dimensions

            	 	 
      	 
	
              - height mm

            	 	 
      	 
	
              - width mm

            	 	 
      	 
	
              - length mm

            	 	 
      	 
	 
      	 	 
      	 
	
              Overall
      height incl. bushings mm

            	 	 
      	 
	 
      	 	 
      	 
	
              Overall
      width incl. cooling mm

            	 	 
      	 
	
              equipment
      & accessories

            	 	 
      	 
	 
      	 	 
      	 
	
              Overall
      length incl. cooling mm

            	 	 
      	 
	
              equipment
      & accessories

            	 	 
      	 
	 
      	 	 
      	 
	
              Tank
      height mm

            	 	 
      	 
	 
      	 	 
      	 
	
              Height
      required for untanking mm

            	 	 
      	 
	
               

              Heaviest
      piece

            	 	 
      	 
	
              - weight kg   
      ___________                 

            	 	 
      	 
	
              - height mm  
      ___________      

            	 	 
      	 
	
              - width mm 
      ____________            

            	 	 
      	 
	
              - length
      mm____________                

            	 	 
      	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.0           LIST OF
DEVIATIONS

     

    We hereby
confirm that the equipment offered is in accordance with the present technical
specification, except for the following:

     

    

     

    

     

    

     

    

     

    4.0           Pricing

    
    

     

    
      	Please provide unit
      price   	 	 +
    Taxes	 	 

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

      ADDENDUM A to Technical
Specification ED 384

    

     

    The
following amendments are made to Technical Specification. ED 384:

     

    1)           “Successful
Respondent” shall mean Pioneer Transformers Ltd.

     

    2)           The
last sentence of Part 1 (GENERAL CONDITIONS) is hereby deleted.

     

    3)           Part
26 is hereby deleted and replaced with the following:

     

    4.1           PART 26 – INFORMATION
REQUIRED WITH QUOTATION

     

    The
following information, including without limitation the drawings, technical
bulletins and all other necessary documents included with the Quotation are
incorporated into this specification:

     

    
      	
              •

            	
              Completed
      technical data and guarantee sheets (Quotation Information
      Form)

            

    

     

    
      	
              •

            	
              Outline
      drawings, drawn approximately to scale, indicating the overall dimensions
      of the equipment and location of major components, cable openings, weight
      and foundation and anchor details

            

    

     

    
      	
              •

            	
              Schedule
      for submission of approval drawings

            

    

     

    
      	
              •

            	
              Shipping
      dimensions, weights

            

    

     

    
      	
              •

            	
              a
      complete description of the tap changer mechanism, the transformer
      construction, details of the auxiliary power requirements for operation of
      the cooling fans, etc., and continuous current ratings of the tap switch
      and bushings.

            

    

     

    4)           Part
30 (SPARE PARTS) is hereby deleted.

     

    5)           Part
1.0 (SCHEDULE OF EVENTS).of Appendix A to ED 384 is hereby deleted.

     

    6)          
Part 2.0
(GUARANTEES) of Appendix A to ED 384 is hereby deleted and replaced with the
following:

     

    2.0           GUARANTEES

     

    
      
        	2.1 	Performance
      Ratings	 
	 	 	 
	 	MVA
      Transformer  	Unit of
      Measure
	 	 	 
	 	1.   	No-load loss at 75°C
      winding:	 
	 	 	100% of the rated
      voltages  	7.2 kW
	 	 	110% of the rated
      voltages  	8.0 kW
	 	 	 	 
	 	2. 	Full-load loss at
      75°C winding:	 
	 	 	temperature
      at:	 
	 	 	100% rated
      voltages 	55.9 kW
	 	 	110% rated
      voltages	N/A kW
	 	 	 	 
	 	3. 	Exciting current
      at:	 
	 	 	100% rated
      voltage 	0.2
Amps
	 	 	115% rated
      voltage 	0.6
  Amps

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	 	4. 	Efficiency- when
      operating at	Used NL @ 100% for
      calculations
	 	 	rated
      voltages and frequency	 
	 	 	and
      at unity power factor at	 
	 	 	75°C
      winding temperature:	 
	 	 	25% of full load
      rating  	9.57%
	 	 	50% of full load
      rating   	99.58%
	 	 	75% of full load
      rating 	99.49%
	 	 	100% of full load
      rating 	99.37%
	 	 	125% of full load
      rating  	99.25%
	 	 	 	 
	 	5. 	Thermal time
      constant 	N/A
  Hours
	 	 	 	 
	 	6. 	Positive sequence
      impedance  	5.0%
	 	 	 	 
	 	7.  	Zero sequence
      impedance 	4.7%
	 	 	 	 
	 	8.  	Guaranteed noise
      level  	58 @ 10 MVA
    dB
	 	 	 	 
	 	9. 	Regulation at
      75°C	 
	 	 	100% P F%
    0.68	 
	 	 	80% P F%
    3.49	 
	 	 	 	 
	 	10.	Type of
      Windings  	HV Continuous
      Disk
	 	 	LV Barrel	 

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

                                                                                                                       

    
      	
              2.2

            	
              Tap Changers

            	 	
              Unit of Measure

            	 
	 	 	 	 	 
	 
      	
              1.  Manufacturer

            	 	
              Specialty
      Switch Company

            	 
	 	 	 	 	 
	 
      	
              2.  Type

            	 	
              Off
      Load

            	 
	 
      	 
      	 	 
      	 
	 
      	
              3.  Is
      literature enclosed?

            	 	
              Yes

            	 
	 
      	 
      	 	 
      	 
	 
      	
              4.  Total
      range

            	 	
              10%

            	 
	 
      	 
      	 	 
      	 
	 
      	
              5.  Number
      of Steps

            	 	
              4

            	 
	 
      	 
      	 	 
      	 
	 
      	
              6.  Method
      of operation

            	 	
              External

            	 
	 
      	 
      	 	 
      	 
	 
      	
              7.  Capacity

            	 	
              400
      Amps

            	 
	 
      	 
      	 	 
      	 
	 
      	
              8.  BIL
      level

            	 	
              200
      kV

            	 
	 
      	 
      	 	 
      	 
	 
      	
              9.  Relative
      position windings

            	 	
              N/A

            	 
	 
      	 
      	 	 
      	 

    

    

     

    2.3           Bushings 27.6kV13.8
kVN                                      IIV             
            
       
LV                                  N

     

    1.  60 Hz withstand
kV_____                                70______                      
34_____                      34

    -1 minute dry
_____                               N/A_____                     N/A____                     kV

    -10 seconds wet
___                               N/A_____                    N/A____                      kV

    2.  BIL level
kV________                                      200_____                      
95_____                      kV

     

    2.4          
Oil

     

    1.           Manufacturer                                           Luminol
Tri

     

    2.           Dielectric
constant                                Per
ASTM

     

    3.           Dielectric
Strength                                           48                      kV

    ASTM D8777-64

    (60 Hz, 25 C)

    

    4.           PCB
content                                                     0                      ppm

     

    4.           Water
content                                               
18                      ppm

     

    
      	
              2.5  Dimensions

            	 
      	
              Unit of Measure

            
	 
      	 
      	 
      
	
              Total
      net weight with oil

            	
              25,850

            	
              kg

            
	 
      	 
      	 
      
	
              Net
      weight of core & coils

            	
              12,945

            	
              kg

            

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      	 
      	 
      	 
      
	
              Net
      weight of oil

            	
              6,385

            	
              kg

            
	 
      	 
      	 
      
	
              Quantity
      of oil

            	
              7,415

            	
              l

            
	 
      	 
      	 
      
	
              Minimum
      shipping dimensions

            	 
      	 
      
	
              - height

            	
              3727

            	
              mm

            
	
              -width

            	
              3226

            	
              mm

            
	
              -length

            	
              4177

            	
              mm

            
	 
      	 
      	 
      
	
              Overall
      height incl. bushings

            	
              3727

            	
              mm

            
	 
      	 
      	 
      
	
              Overall
      width incl. cooling

              equipment
      & accessories

            	
              3226

            	
              mm

            
	 
      	 
      	 
      
	
              Overall
      length incl. cooling

              equipment
      & accessories

            	
              4177

            	
              mm

            
	 
      	 
      	 
      
	
              Tank
      height

            	
              3375

            	
              mm

            
	 
      	 
      	 
      
	
              Height
      required for untanking

            	
              N/A

            	
              mm

            
	 
      	 
      	 
      
	
              Heaviest
      piece

            	 
      	 
      
	
              -weight as above
    kg

            	 
      	 
      
	
              -height as above
    mm

            	 
      	 
      
	
              -width as above
mm

            	 
      	 
      
	
              Length as above
mm

            	 
      	 
      

    

    

    7)           Part
3.0 (DEVIATIONS) of Appendix A to ED 384 is hereby deleted.

     

    8)           Part
4.0 (PRICING) of Appendix A to ED 384 is hereby deleted.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Schedule
B

     

    1.           Pricing

     

    Appendix
A and Appendix B, which form part of this Agreement, contains the price
schedules for the 05 Transformers and 07 Transformer, respectively, and are
subject to the terms and conditions of this Agreement, including, but not
limited to, Article 4 “Price and Payment”.

     

    2.           Delivery

     

    For the
05 Transformers, the Parties agree that the times listed below represent the
maximum acceptable Lead Times, but do not apply to the Dedicated
Inventory.

     

    Subway
Transformer                                           (3
phase, all
sizes)                                12
weeks

     

    Network
Transformer                                           (3
phase, all
sizes)                                12
weeks

     

    Power
Transformer                                               (3
phase, all
sizes)                                12
weeks

     

    The
parties agree that the 07 Transformer shall be delivered by no later than May
31, 2008. For greater certainty, failure by the Vendor to deliver an order
within:

           

    
      
        	
                 
      

              	
                (i)

              	
                the
      applicable Lead Time for 05
Transformers;

              

      

       

    

    
      
        	
                 
      

              	
                (ii)

              	
                in
      the case of the 07 Transformer, by May 31, 2008;
  or

              

      

    

     

    
      	
               
      

            	
              (iii)

            	
              in
      the case of Dedicated Inventory, within twenty-four (24) hours of receipt
      of notice by the Buyer.

            

    

     

    shall
constitute a breach of a material obligation by the Vendor for the purposes of
Article 13(b).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    APPENDIX
“A”

     

     

    [XX]

     

    

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    APPENDIX
“B”

     

    Price
Schedule for 07 Transformer:

     

    [XX]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    SCHEDULE
B

     

    1.           Pricing

     

    Appendix
A and Appendix B, which form part of this Agreement, contains the price
schedules for the 05 Transformers and 07 Transformer, respectively, and are
subject to the terms and conditions of this Agreement, including, but not
limited to, Article 4 “Price and Payment”.

     

    2.           Delivery

     

    For the
05 Transformers, the Parties agree that the times listed below represent the
maximum acceptable Lead Times, but do not apply to the Dedicated
Inventory.

     

    Subway
Transformer                                                      (3
phase, all
sizes)                                           12
weeks

     

    Network
Transformer                                                      (3
phase, all
sizes)                                           12
weeks

     

    Power
Transformer                                                         
(3 phase, all
sizes)                                           12
weeks

     

    The
parties agree that the 07 Transformer shall be delivered by no later than May
31, 2008. For greater certainty, failure by the Vendor to deliver an order
within:

            

    
      
        	
                 
      

              	
                (i)

              	
                the
      applicable Lead Time for 05
Transformers;

              

      

       

    

    
      
        	
                 
      

              	
                (ii)

              	
                in
      the case of the 07 Transformer, by May 31, 2008;
  or

              

      

       

    

    
      	
               
      

            	
              (iii)

            	
              in
      the case of Dedicated Inventory, within twenty-four (24) hours of receipt
      of notice by the Buyer.

            

    

     

    shall
constitute a breach of a material obligation by the Vendor for the purposes of
Article I3(b).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
C

     

    Defined
Terms

     

    In this
Agreement, the following definitions shall apply:

     

    “

     

    
      	
              Affiliates”

            	
              shall
      have the meaning as prescribed in the Business Corporations
      Act (Ontario);

               

            
	
              “Agreement”

            	
              means
      this Agreement for Purchase of Transformers, including all Schedules
      hereto and subsequent amendments;

               

            
	
              “Business
      Day”

            	
              means
      a day on which banks are open for business in the City of Toronto,
      Ontario, but does not include a Saturday, Sunday, or a statutory holiday
      in the Province of Ontario;

               

            
	
              “Business
      Hours”

            	
              means
      9:00 a.m. to 4:00 p.m., EST, on a Business Day;

               

            
	
              “Competent
      Persons”

            	
              shall
      have the meaning as prescribed in the Occupational Health and Safety
      Act (Ontario);

               

            
	
              “Confidential
      Information”

            	
              has
      the meaning prescribed to it in Article 17;

               

            
	
              “Disclosing
      Party”

            	
              has
      the meaning prescribed to it in Article 17;

               

            
	
              “Dispute”

            	
              has
      the meaning prescribed to it in Article 21;

               

            
	
              “Force
      Majeure”

            	
              means
      any event or cause beyond the control of the party affected, including,
      without limitation, strikes, lockouts, riots, epidemics, acts of war or
      conditions arising out of or attributable to war (whether declared or
      undeclared), governmental regulations, terrorism, fire, explosion, or acts
      of God;

               

            
	
              “Initial
      Term”

            	
              has
      the meaning prescribed to it in Article 5;

               

            
	
              “Lead
      Time”

            	
              means
      the length of time from the Release Date to the date of delivery to the
      locations designated by the Buyer;

               

            
	
              “MFIPPA”

            	
              means
      Municipal Freedom of
      Information and Protection of Privacy Act (Ontario);

               

            
	
              “Transformers”

            	
              means
      the Transformers and related equipment, parts and components to be
      supplied to the buyer by the Vendor under this
  Agreement;

            

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      	
              “PIPEDA”

            	
              means
      Personal Information
      Protection and Electronic Documents Act (Canada);

               

            
	
              “Purchase
      Price”

            	
              has
      the meaning prescribed to it in Article 4 and Schedule B;

               

            
	
              “Receiving
      Party”

            	
              has
      the meaning prescribed to it in Article 17;

               

            
	
              “Release
      Date”

            	
              means
      the date on which the Buyer places an order with the Vendor;

               

            
	
              “Renewal
      Term”

            	
              has
      the meaning prescribed to it in Article 3;

               

            
	
              “Representative”

            	
              in
      respect of a party, means such party’s directors, officers, employees,
      agents and contractors, the party’s Affiliates, and all such Affiliates’
      respective directors, officers, employees, agent and
      contractors;

               

            
	
              “Term”

            	
              has
      the meaning prescribed to it in Article 3;

               

            
	
              “WSIA”

            	
              means
      Workplace Safety and
      Insurance Act, 1997 (Ontario) and the regulations
      thereunder;

            

    

    
 

    
      
        
        

      

      
        2f8kex10xxvi_pioneer.htm

    Exhibit
10.26

     

    
      THE
COMPANY HAS REQUESTED AN ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE
“COMMISSION”) PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED PORTIONS. ACCORDINGLY, THE
CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED
SEPARATELY WITH THE COMMISSION. OMITTED PORTIONS ARE INDICATED IN THIS EXHIBIT
WITH “[XX]”.

       

    

     

    TRANSLATION

     

    
      	
              HYDRO
      QUÉBEC

            	
              Contract

            
	 
      	 
      
	
              Supplier
      No.:  OA 104 18850

            	
              Contract:

            	
              4600010831

            
	 
      	 
      	 
      
	
              Supplier

            	
              Call
      for tenders:

            	
              6100098418

            
	 
      	
              Request
      for proposals:

            	
              11954845

            
	
              PIONEER
      TRANSFORMERS LTD.

            	 
      	
              yyyy/mm/dd

            
	
              612
      BERNARD ST., P.O. BOX 272

            	
              Date
      of issue:

            	
              2006/04/01

            
	
              GRANBY
      QC  J2G 8E5

            	 
      
	 
      	 
      
	
              Attention:  Raymond
      Haddad

            	 
      
	
              Phone:  450-378-9018
      #
      309                                                                Fax:  450-378-0626

            
	 
      	 
      
	 
      	 
      
	
              Billing
      must be as stipulated in this document.

            
	 
      	 
      

       

      
        	
                Contract
      term

              	
                Ship
  to:

              
	
                yyyy/mm/dd                      to           yyyy/mm/dd

              
	
                2006/04/01                                2008/03/31

              
	
                FOB Point:

                Destination,
      prepaid

              
	
                Terms
      of payment

                NET
      30 DAYS

                 

              

      

      	 
      	 
      
	
              For
      information                                Phone

              Marc
      Desautels                                514-840-3000
      ext. 6765

            	
               

               

              (sgd)
      Marc Desautels

            
	 
      	
              Authorized
      representative

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

     

    GENERAL
CONDITIONS

    

    SUPPLY

    

    (Revised
March 2005)

    

    Table of
Contents

     

    
      	1.	DEFINITIONS
	A.	Request for
      proposals
	B.	Contract
      amendment
	C.	Notice of
      award
	D.	Goods
	E.	Not
used
	
              F.

            	Contract
	G.	Not
used
	H.	Supplier
	
              I.

            	Not
used
	J.	Material
	K.	Equipment
	L.	Contract
    price
	M.	Proposal
	M.	Subcontractor
	O.	Work
	P.	Plant
	
              2. 

            	GENERAL
      PROVISIONS
	A.	Interpretation of
      contract
	B.	Assignment of
      contract
	C.	Standards
	D.	Advertising and
      requests for information
	E.	Place of execution
      of contract
	F.	Representatives of
      the parties and communications
	G.	Confidentiality
	H.	Language of work and
      communications
	I.	Due
  dates
	J.	Notice of
      default
	3.	NOT
USED
	4.	CONTROL OF
      WORK

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	A.	Scope of
      contract
	B.	Subcontracting
	5.	RIGHTS TO USE OF
      GOODS
	6.	AUTHORITY OF
      HYDRO-QUÉBEC REPRESENTATIVE
	A.	Administration of
      contract
	B.	Inspection, control
      and supervision of work
	7.	EXECUTION OF
      WORK
	A.	Not
used
	B.	Not
used
	C.	Drawings and lists
      provided by the supplier
	D.	Technical
      notices
	E.	Rating
    plates
	F.	Not
used
	G.	Delay attributable
      to Hydro-Québec
	H	Changes to
      contract
	I.	Not
used
	J.	Not
used
	K.	Not
used
	L.	Ownership
	M.	Not
used
	N.	Not
used
	O.	Packaging
	P.	Shipping
	8.	NOT
USED
	9.	GOODS, MATERIALS AND
      EQUIPMENT
	A.	Origin, quality and
      implementation of materials
	B.	Not
used
	C.	Goods, materials and
      equipment made available to the supplier by Hydro-Québec
	10.	NOT
USED
	11.	LIABILITY OF THE
      SUPPLIER
	12.	CONTROLLED
      PRODUCTS
	13.	ENVIRONMENTAL
      PROTECTION
	14.	PAYMENT
	15.	GUARANTEE ON LABOUR
      AND MATERIALS
	16.	NOT
USED
	17.	NOT
USED
	18.	DEFAULT –
      TERMINATION

       

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

       

      	A.	Default by
      supplier
	B.	Withdrawal of work
      from the supplier
	C.	Contract
      termination
	
              D.

            	Not
used
	19.	NOT
USED
	20.	RELEVANT
      DOCUMENTS
	A.	Accounting
      principles
	B.	Retention
      period
	C.	Right to
      inspect

    

    

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

1.           DEFINITIONS

    

    When used
in this contract, unless the context otherwise requires, the following terms
shall have the following meanings:

    

    (a)           REQUEST
FOR PROPOSALS

     

    The
document remitted by Hydro-Québec for purposes of obtaining a bid or
proposal.

     

    (b)           
CONTRACT AMENDMENT

     

    A
document signed by Hydro-Québec and the supplier the purpose of which is to
amend the contract.

     

    (c)           NOTICE
OF AWARD

     

    The
document by which Hydro-Québec informs the supplier that is has been awarded the
contract.

     

    (d)           GOODS

     

    The goods
the supplier must supply pursuant to the contract.

     

    (e)           NOT
USED

     

    (f)           CONTRACT

     

    The
contract consists of the following documents:

     

    
      	
              -  

            	
              The
      request for proposals document and its
addenda;

            

    

     

    
      	
              -  

            	
              The
      supplier’s proposal accepted by
Hydro-Québec;

            

    

     

    
      	
              -  

            	
              The
      notice of award;

            

    

     

    
      	
              -  

            	
              The
      contract amendments.

            

    

     

    (g)           NOT
USED

     

    (h)           SUPPLIER

     

    The
person to whom the contract is awarded.

     

    (i)           NOT
USED

     

    (j)           MATERIAL

     

    Anything
incorporated in the goods to be supplied or consumed to perform the
contract.

     

    (k)           EQUIPMENT

     

    All of
the tools, plant, instruments, devices, machines, vehicles, structures and
installations required for the performance of the work or the maintenance of the
goods to be supplied and which are not incorporated in the goods.

     

    (l)           CONTRACT
PRICE

     

    All of
the stipulated prices, unit prices and other remuneration provided for in the
contract, subject to such adjustments as may be made pursuant to the provisions
of the contract.

     

    (m)           PROPOSAL

     

    The
supplier’s bid or proposal.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (n)           SUBCONTRACTOR

     

    Any
person to whom the supplier entrusts the performance of work or the supply or
manufacture of materials or equipment.

     

    (o)           WORK

     

    All of
the goods the supplier must supply and the activities it must carry on to
perform the contract, in particular the design, manufacture and delivery of the
goods covered by the contract.

     

    (p)           PLANT

     

    The place
where the goods are manufactured or assembled.

     

    2.           GENERAL
PROVISIONS

     

    A.           INTERPRETATION
OF CONTRACT

     

    In the
event of ambiguity or contradiction between the various documents constituting
the contract, they shall prevail in the following order of
precedence:

     

    
      	
              -  

            	
              The
      notice of award;

            

    

     

    
      	
              -  

            	
              The
      proposal accepted by Hydro-Québec;

            

    

     

    
      	
              -  

            	
              The
      instructions to tenderers;

            

    

     

    
      	
              -  

            	
              The
      specific clauses;

            

    

     

    
      	
              -  

            	
              The
      general clauses;

            

    

     

    
      	
              -  

            	
              The
      specific technical clauses;

            

    

     

    
      	
              -  

            	
              The
      specific drawings;

            

    

     

    
      	
              -  

            	
              The
      general or standardized technical
clauses;

            

    

     

    
      	
              -  

            	
              The
      standardized drawings.

            

    

     

    Large-scale
drawings shall prevail over smaller-scale drawings.

     

    B.           ASSIGNMENT
OF CONTRACT

     

    The
supplier shall not assign the contract without the prior written consent of
Hydro-Québec’s representative.

     

    C.           STANDARDS

     

    Where the
contract refers to standards, such reference shall mean the standards in force
on the date the proposals are submitted.  In the event of ambiguity or
contradiction between the contract and such standards, the more stringent
document shall prevail.

     

    D.           ADVERTISING
AND REQUESTS FOR INFORMATION

     

    The
request for proposals document and all other information communicated to the
supplier in connection with the contract shall remain the property of
Hydro-Québec and shall not be used for any purpose other than the performance of
the contract.

     

    Any
advertising intended by the supplier concerning the contract shall be subject to
approval by Hydro-Québec’s representative.  This shall apply to all
means of advertising, such as signs and billboards, and to all written and
electronic media.

     

    All
requests for information concerning the contract or the work from any written or
electronic media or from any other person shall be forwarded to Hydro-Québec’s
representative.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    E.           PLACE
OF EXECUTION OF CONTRACT

     

    The
parties agree that the contract was executed in Montreal and shall be governed
by the applicable laws of Quebec and that any dispute arising from its
performance shall be under the exclusive jurisdiction of the courts of
Quebec.

     

    F.           REPRESENTATIVES
OF THE PARTIES AND COMMUNICATIONS

     

    Each
party shall appoint a representative who shall have the power to act on its
behalf. The parties shall advise each other in writing of the names of their
respective representatives and of their replacements, as the case may
be.

     

    Each
party’s representative shall have the requisite authority and power to see to
the performance of the contract and to handle and decide any matter related
thereto.

     

    Any
communications between Hydro-Québec and the supplier regarding the contract
shall be in writing and be addressed to the other party’s
representative.

     

    G.           CONFIDENTIALITY

     

    The
supplier shall protect the confidentiality of the information communicated to it
by Hydro-Québec in connection with the performance of the contract.

     

    H.           LANGUAGE
OF WORK AND COMMUNICATIONS

     

    The
language of work shall be French.  All written and oral communications
pertaining to the contract shall be in French.  All documents or
drawings the supplier remits to Hydro-Québec shall be drafted in
French.

     

    I.           DUE
DATES

     

    Unless
otherwise stipulated in the contract, all due dates shall be calculated from the
date the supplier receives the notice of award.

     

    In
computing any due date established under the contract:

     

    
      	
              -  

            	
              The
      day that marks the start date shall not be counted, but the due date
      shall;

            

    

     

    
      	
              -  

            	
              Saturdays,
      Sundays and statutory holidays shall be counted, but if the last day is a
      Saturday, Sunday or statutory holiday, the due date shall be postponed to
      the next business day.

            

    

     

    J.           NOTICE
OF DEFAULT

     

    If the
contract establishes a due date for the performance of an obligation, the
parties shall be put in default by the mere lapse of time.

     

    3.           NOT
USED

     

    4.           CONTROL
OF WORK

     

    A.           SCOPE
OF CONTRACT

     

    In the
framework of this contract, the supplier shall perform all the activities
required for the design, manufacture and delivery of the goods covered by the
contract, except as expressly excluded in the Specific Clauses.

     

    B.           SUBCONTRACTING

     

    The
supplier agrees that any subcontracts shall be subject to the provisions of this
contract.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    5.           RIGHTS TO
USE OF GOODS

     

    The
supplier agrees to obtain and assign to Hydro-Québec all rights required to
permit the use of the goods for the purposes for which they are intended and, as
the case may be, their maintenance, repair or reconditioning.

     

    These
rights shall include copyright and rights contemplated by the laws respecting
industrial drawings, trade-marks, patents and integrated-circuit
topography.

     

    6.           AUTHORITY
OF HYDRO-QUÉBEC REPRESENTATIVE

     

    A.           ADMINISTRATION
OF CONTRACT

     

    Hydro-Québec’s
representative shall be responsible for administering the contract on
Hydro-Québec’s behalf and shall have the authority to do so.

     

    B.           INSPECTION,
CONTROL AND SUPERVISION OF WORK

     

    At any
time, Hydro-Québec’s representative may inspect the supplier’s work and check
its quality.  For such purposes, he shall have access to any place
where the goods are manufactured and to the materials required for the
performance of the contract.

     

    The
trials, tests and checks required under the contract or prescribed by the laws
and regulations in force shall be carried out in the presence of Hydro-Québec’s
representative and the supplier shall be responsible for giving him sufficient
advance notice to be able to attend.

     

    7.           EXECUTION
OF WORK

     

    A.           NOT
USED

     

    B.           NOT
USED

     

    C.           DRAWINGS
AND LISTS PROVIDED BY THE SUPPLIER

     

    The
supplier shall submit to Hydro-Québec’s representative, for his verification,
the detailed or general drawings required to validate the manufacture,
operation, assembly and disassembly, start-up, utilization and maintenance of
the goods.  The supplier shall also give Hydro-Québec the lists
relating to the drawings: e.g. lists of materials, connections, terminations,
settings, spare parts, special tools, etc.

     

    The
supplier shall give Hydro-Québec’s representative the requisite number of
copies.  The drawings and lists shall be submitted on a timely basis
so as not to delay the progress of the work, while allowing Hydro-Québec’s
representative twenty (20) business days from receipt of the drawings and lists
to review them.

     

    Every
drawing or list or copies thereof remitted to Hydro-Québec shall remain the
property of Hydro-Québec, which may utilize them as it sees fit.

     

    Drawings
shall be prepared in accordance with the requirements and recommendations of
sections 1 to 10 of standard B78.5-93 “Computer-Aided Design Drafting
(Buildings)” of the Canadian Standards Association (CSA/ACN).  All
notations on the drawings and lists shall be in French and dimensions shall be
in the SI system.

     

    When
Hydro-Québec’s representative verifies the supplier’s drawings or lists, it
means that Hydro-Québec’s representative has found that the proposed elements
and systems are consistent with the object of the contract. But it in no way
means that the supplier’s drawings or lists that were submitted or provided meet
the requirements of the contract in every respect.

     

    Work
begun without the submission and verification of the drawings and lists as
aforesaid may be refused by Hydro-Québec’s representative.  The costs
incurred shall be borne by the supplier.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    D.           TECHNICAL
NOTICES

     

    To permit
the operation, maintenance and reconditioning of the goods by Hydro-Québec, the
supplier shall, in accordance with the stipulations in the Specific Clauses,
prepare technical notices describing in detail the construction and recommended
methods for the assembly, disassembly, maintenance and operation of the goods
and a list of all spare parts.  The said notices shall include all
appropriate bulletins and the instructions prepared by the manufacturers of the
parts incorporated in the goods.

     

    E.           RATING
PLATES

     

    The
rating plates on the goods shall be in French.  Warning notices shall
be in French and English.

     

    F.           NOT
USED

     

    G.           DELAY
ATTRIBUTABLE TO HYDRO-QUÉBEC

     

    If an
incident attributable to Hydro-Québec causes delay in the performance of the
contract, the supplier shall be entitled to an extension of the performance
period, on the express condition that it makes a written request therefor to
Hydro-Québec’s representative no later than fifteen (15) days after the incident
warranting such a request. The request shall specify the nature of the incident
and its impact on the work performance period.

     

    Absent
such notice within the aforesaid period, the supplier waives the right to an
extension of the performance period.

     

    H.           CHANGES
TO CONTRACT

     

    Hydro-Québec
may, until the end of the contract, make changes to the contract and demand
their performance by the supplier.

     

    The
supplier shall not proceed with any changes before signing a contract amendment
specifying the nature of the change, the method of payment and the performance
period.  However, in the event of an emergency or a disagreement over
the terms of the contract amendment, the supplier shall promptly proceed with
any change demanded by Hydro-Québec’s representative in writing.

     

    Changes
shall not entail any extension of the contractual periods unless expressly
mentioned in the contract amendment. Any change to the size of the contract or
its terms of performance made or authorized by Hydro-Québec shall entitle the
supplier or Hydro-Québec to obtain a revision of the contract prices to account
for the increase or decrease (as the case may be) in costs due to such
change.

     

    I.           NOT
USED

     

    J.           NOT
USED

     

    K.           NOT
USED

     

    L.           OWNERSHIP

     

    All of
the goods covered by the contract shall become the property of Hydro-Québec as
they are progressively fabricated.  However, the supplier shall be
responsible for their custody and control and any liability arising therefrom
until they are received by Hydro-Québec.

     

    M.           NOT
USED

     

    N.           NOT
USED

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    O.           PACKAGING

     

    To
facilitate handling and protect the goods during shipping and storage, the goods
shall be packaged in accordance with Hydro-Québec’s standard SN-1.1 or such
other standard as may replace it.

     

    The goods
shall be identified as required below to facilitate delivery, receiving and
storage.  Each container shall bear the following minimum mandatory
information in easily legible form:

     

    
      	
              -  

            	
              Supplier’s
      name;

            

    

     

    
      	
              -  

            	
              “Hydro-Québec”
      followed by the order number;

            

    

     

    
      	
              -  

            	
              Item
      number of the order;

            

    

     

    
      	
              -  

            	
              Hydro-Québec’s
      article code, if any;

            

    

     

    
      	
              -  

            	
              Delivery
      address.

            

    

     

    If the
container contains several packages, each package shall also bear the
above-mentioned information specific to its contents.  Each container
shall have a hermetically sealed pocket in which the supplier shall deposit at
least four (4) copies of the list of articles.

     

    P.           SHIPPING

     

    No
shipment shall be made without prior specific instructions from Hydro-Québec’s
representative as to the availability of the delivery location.  No
shipment may be made more than two (2) months before the date required, unless
Hydro-Québec’s representative provides his written authorization.

     

    At least
three (3) days before sending any shipment, full or partial, the supplier shall
give written notice to the addressee indicated on the waybill.

     

    For any
shipments coming from outside Canada, the supplier shall remit to the carrier
along with the waybill:

     

    
      	
              -  

            	
              A
      duly completed “Canada Customs Invoice” specifying the
      following:

            

    

     

    
      	
              -  

            	
              vendor’s
      name;

            

    

     

    
      	
              -  

            	
              purchaser’s
      order number;

            

    

     

    
      	
              -  

            	
              name
      and address of the addressee (to whom the goods are being
      shipped);

            

    

     

    
      	
              -  

            	
              name
      and address of the purchaser (to whom the goods are
  sold);

            

    

     

    
      	
              -  

            	
              payment
      currency;

            

    

     

    
      	
              -  

            	
              detailed
      description of the goods, quantity, unit price,
  total;

            

    

     

    
      	
              -  

            	
              total
      amount of the invoice;

            

    

     

    
      	
              -  

            	
              a
      duly completed NAFTA (North American Free Trade Agreement) certificate of
      origin, if the goods were manufactured in the United States and/or
      Mexico.

            

    

     

    8.           NOT
USED

     

    9.           GOODS,
MATERIALS AND EQUIPMENT

     

    A.           ORIGIN,
QUALITY AND IMPLEMENTATION OF MATERIALS

     

    The
materials, their implementation and the execution of the work shall be
consistent with the requirements of the contract.

     

    If the
quality of a material or labour is not specified, the material shall be new and
of the best quality and the labour shall be performed in accordance with
generally accepted standards.

     

    Unless
otherwise stipulated in the contract, the supplier may use a material equivalent
to the one referred to in the contract by a trade-mark, provided the
substitution is previously authorized in writing by Hydro-Québec.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Hydro-Québec’s
representative will accept or refuse the equivalent material within a time frame
which will depend on the information to be obtained and the trials, tests and
checks necessary to evaluate the proposed material.

     

    The
supplier shall submit the equivalent material for approval by Hydro-Québec’s
representative on a timely basis to avoid any delay in the performance of the
work.

     

    B.           NOT
USED

    
       

      C.   GOODS,
MATERIALS AND EQUIPMENT MADE AVAILABLE TO THE SUPPLIER BY
HYDRO-QUÉBEC

    

     

    The
supplier shall be responsible for the maintenance, safekeeping and control of
all goods, materials or equipment made available to it by Hydro-Québec and shall
use same solely for the purposes for which they were intended.

     

    The
supplier must at all times be in a position to report to Hydro-Québec’s
representative on the use and condition of such goods, materials and
equipment.

     

    10.           NOT
USED

     

    11.           LIABILITY
OF THE SUPPLIER

     

    The
supplier shall be liable to Hydro-Québec for the proper performance of the
contract.

     

    It shall
also be liable for any damages resulting from such performance, save damages for
loss of profits or income, loss of use of the goods supplied under this contract
or of any related equipment, interest and other charges on borrowed money and
the costs of any interruption.  However, the supplier’s liability to
Hydro-Québec shall be limited to $[XX] or another sum equivalent to the contract
price if same exceeds $[XX].

     

    It shall
defend Hydro-Québec against any claims or lawsuits stemming from the contract
and the execution of the work and shall indemnify and hold it harmless with
respect to capital, interest and the indemnity stipulated in the Civil Code of
Quebec, costs of expert reports and costs of any other nature, any judgment
pronounced against it and, where applicable, shall obtain a discharge of any
legal hypothec related to the performance of the contract.

     

    12.           CONTROLLED
PRODUCTS

     

    In the
framework of the application of the Hazardous Products Act,
R.S.C. (1985), c. H-3, the supplier is responsible for determining whether the
goods or part thereof are controlled products.

     

    Before
delivery, the supplier shall forward to Hydro-Québec’s representative a list of
the controlled products, in duplicate, and the relevant safety data sheets, in
French, for each such product.

     

    The
supplier shall be liable for all costs incurred due to its failure to provide
the required information on a timely basis.

     

    13.           ENVIRONMENTAL
PROTECTION

     

    The
supplier shall comply with all laws and regulations applicable in Quebec
concerning the protection of the environment. It shall be responsible for
preventing pollution or any nuisance that could be caused by the products,
services and activities arising from this contract.  In that regard it
shall, at its expense, take all necessary steps to protect the environment and
prevent any form of pollution or nuisance.  In addition, it shall
ensure that it has properly trained personnel who can take action in the event
of an environmental emergency.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    The
supplier shall notify Hydro-Québec’s representative as quickly as possible of
any environmental incident, non-compliance or emergency that arises in the
framework of the performance of the obligations under this
contract.

     

    Furthermore,
it shall comply with the environmental provisions set out in the specific
clauses of this contract.

     

    14.           PAYMENT

     

    Payment
of the contract price shall be made thirty (30) days following receipt of the
equipment at the delivery point or receipt of the invoice, whichever is
later.

     

    At any
time, Hydro-Québec may set-off any debt owed to it by the supplier against any
sums it may owe the supplier or any security delivered pursuant to the
contract.

     

    15.           GUARANTEE
ON LABOUR AND MATERIALS

     

    The
supplier shall guarantee to Hydro-Québec that all goods and materials it has
supplied will operate properly and conform to the stipulations of the contract,
which guarantee shall apply for a period of eighteen (18) months following
receipt of the equipment at the delivery point, unless additional guarantees and
different time frames are stipulated elsewhere in the contract.  This
guarantee shall be in addition to the legal warranty.

     

    During
the warranty period, upon request by Hydro-Québec, the supplier undertakes,
within the time frame determined by Hydro-Québec’s representative, to repair,
correct or replace all defective goods and any resulting deterioration or
degradation, at its own expense, including costs of removal, shipment,
replacement and reinstallation of the property required to access such goods,
except, however, costs of removal, shipment, replacement and reinstallation of
property other than the goods that are the subject of the contract.

     

    In the
event of a disagreement between the supplier and Hydro-Québec as to which party
shall be responsible for the costs of repairs, modifications or replacement, the
supplier agrees to perform such repairs, modifications or replacement diligently
in accordance with the decisions of Hydro-Québec’s
representative.  Failing an agreement between Hydro-Québec and the
supplier as to responsibility for costs of repair, Hydro-Québec acknowledges
that the fact that the supplier has performed the work required by
Hydro-Québec’s representative shall not extinguish the supplier’s right to bring
a legal action.

     

    All goods
thus repaired, corrected or replaced by the supplier shall be under a new
guarantee of the same nature and for the same term as the original
guarantee.

     

    Should
the supplier fail to repair, modify or replace the equipment at the request of
Hydro-Québec’s representative, Hydro-Québec shall be entitled to perform such
repairs, modifications or replacements or have them performed by a third party
at the supplier’s expense.

     

    16.           NOT
USED

     

    17.           NOT
USED

     

    18.           DEFAULT –
TERMINATION

     

    A.           DEFAULT
BY SUPPLIER

     

    If the
supplier fails to comply with the provisions of the contract or the instructions
of Hydro-Québec’s representative, the latter shall give it a notice of default
stipulating the time period for the supplier to comply with the requirements of
the contract.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    If the
supplier fails to comply with the notice from Hydro-Québec’s representative
within the stipulated period or becomes insolvent, it shall be in default and
Hydro-Québec may exercise one or all of the remedies stipulated in the clauses
entitled “Withdrawal of Work from the Supplier” and “Contract
Termination”.

     

    B.           WITHDRAWAL
OF WORK FROM THE SUPPLIER

     

    If the
supplier is in default under the contract, Hydro-Québec may withdraw the work
which is as yet uncompleted from the supplier, without thereby releasing it from
its contractual obligations, save the obligation to complete such
work.

     

    The
supplier shall indemnify Hydro-Québec for all losses and damages resulting from
its default and the withdrawal of the work and shall also reimburse Hydro-Québec
for all costs and expenses Hydro-Québec has incurred further to such withdrawal
to arrange for the full completion of the work.

     

    C.           CONTRACT
TERMINATION

     

    Hydro-Québec
shall at all times have the right to terminate the contract in whole or in part
upon written notice.

     

    If
Hydro-Québec terminates the contract unilaterally without any default by the
supplier, the supplier shall be entitled to the value of the work performed and
the materials supplied as of the termination, less such amounts as it may owe
Hydro-Québec, as well as damages, if any.

     

    If the
supplier is in default under the contract, Hydro-Québec may terminate the
contract in whole or in part. The supplier shall then be entitled to the value
of the work performed and the materials supplied as of the termination, less
such sums as it may owe Hydro-Québec. It shall not be entitled to any damages.
The supplier shall remain liable to Hydro-Québec for any loss or damages
resulting from its default.

     

    D.           NOT
USED

     

    19.           NOT
USED

     

    20.           RELEVANT
DOCUMENTS

     

    A.           ACCOUNTING
PRINCIPLES

     

    The
supplier shall keep separate accounts for the cost of the work in accordance
with Canadian generally accepted accounting principles.

     

    B.           RETENTION
PERIOD

     

    The
supplier shall retain all books and accounting records and the documents
pertaining to the contract for three (3) years after the end of the contract.
Upon request by Hydro-Québec, the retention period shall be
extended.

     

    C.           RIGHT
TO INSPECT

     

    Upon
written request, the supplier shall make all books and accounting records and
documents pertaining to the contract available to
Hydro-Québec.  Hydro-Québec may inspect same and make any
copies.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    TRANSLATION

    

    SPECIFIC
CONDITIONS

    

    

    Table of
Contents

    

    

    

    1.          
 TERM OF MASTER AGREEMENT

     

    2.           
CONTRACT REVIEW AND FOLLOW-UP

     

    3.           
APPROVAL STATUS

     

    4.           
NEW SUPPLIER

     

    5.          
 QUALITY MANAGEMENT SYSTEM, ISO 9001:2000
(F1)

     

    6.           
CERTIFICATE OF REGISTRATION
(F15)

     

    7.           
NOTICE OF PROCEDURE (F18)

     

    8.           
QUALITY RECORD (F21)

     

    9.           
HYDRO-QUÉBEC’S QUALITY PLAN REQUIREMENTS
(F61)

     

    10.          DECISION TO UTILIZE (F11)

     

    11.          POST-D.U. DELIVERY AUTHORIZATION

     

    12.          DELIVERY PERIOD

     

    13.          LATE DELIVERY

     

    14.          COMPLIANCE WITH QUANTITIES

     

    15.          DELIVERY PERFORMANCE

     

    16.          PENALTY FOR LATE DELIVERY

     

    17.          DELIVERY ON PALLETS

     

    18.          DELIVERY BY TRUCK

     

    19.          DELIVERY ADDRESS

     

    20.          INDEXING CLAUSE

     

    21.          ENERGY LOSS VALUES

     

    22.          PENALTY ON SURPLUS EFFECTIVE AVERAGE
LOSSES

     

    23.          QUEBEC CONTENT

     

    24.          INVOICING OF TAXES

     

    25.          GUARANTEE

     

    26.          PAYMENT

     

    27.          SUPPLY SECURITY

     

    28.          CONTRACT ADMINISTRATION

     

    29.          CONTRACT DOCUMENTS

    

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    1.           TERM
OF MASTER AGREEMENT

     

    

    The
initial term of the master agreement shall be two (2) years commencing on April
1, 2006.

     

    Hydro-Québec
reserves the right to extend the master agreement for a further period of two
(2) years, based on two (2) renewal options of twelve (12) months
each.

     

    For the
extension, no less than three (3) months before the expiration of the master
agreement, Hydro-Québec shall send written notice to the supplier of its
intention to extend or not to extend the master agreement.

     

    Within
five (5) business days of the date of Hydro-Québec’s notice, the supplier shall
send written notice to Hydro-Québec of its acceptance or refusal to extend the
master agreement.

     

    It shall
be understood and agreed that the option to extend shall be under the same terms
and conditions as those prevailing until then under the master
agreement.

     

    

    2.           CONTRACT
REVIEW AND FOLLOW-UP

     

    Hydro-Québec
shall call the supplier to a contract review meeting before production of the
first order is begun.  All of the relevant representatives from
Hydro-Québec shall attend to ensure a mutual understanding of the requirements
stipulated in the master agreement.

     

    Hydro-Québec’s
representatives shall be:  the technical officer for the product, the
quality control officer, the materials-in-stock management officer and the
master agreement administrator.

     

    Further
meetings may be called at the parties’ request.

     

    3.           APPROVAL
STATUS

     

    If any of
the products covered by the master agreement are approved products, any change
to the production of the goods, such as the procurement of materials, the
manufacturing or assembly location, etc. shall require prior approval from
Hydro-Québec, which shall assess the impact of the change on the approval status
of the goods.

     

    Hydro-Québec’s
technical officer shall determine the type testing required to extend the
approval status.  The costs inherent in such tests shall be borne by
Hydro-Québec.  However, if the test results do not meet the
requirements, the costs of retesting shall be borne by the
supplier.

     

    The price
list (taxes extra) for the type testing shall be:

     

    [XX]

    

    4.           NEW
SUPPLIER

     

    Clause
deleted.

     

    5.           QUALITY
MANAGEMENT SYSTEM, ISO 9001:2000 (F1)

     

    The
quality management system of the product’s designer, manufacturer and installer
shall be duly ISO 9001:2000 registered.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    If the
design or development activities form part of the contract, the exclusion of
section 7.3 “Design and
Development” </˃ of ISO 9001:2000 shall not be acceptable for the designer of
the product.

     

    At the
specific request of Hydro-Québec’s representative, the supplier shall send him
the quality manual, quality procedures and quality management system forms for
the product’s designer, manufacturer and installer.

     

    Hydro-Québec
or its representative may visit the premises of the supplier and its
subcontractors at any time to verify that the contract requirements are being
met.

     

    Any
proposal involving the use, alteration or repair of the product which is not
consistent with the contract requirements shall be submitted to Hydro-Québec’s
representative.

     

    6.           CERTIFICATE
OF REGISTRATION (F15)

     

    The
supplier must hold an ISO certificate of registration issued by an accredited
registrar indicating that the manufacturer and designer of the product meet the
above-mentioned quality system standards.

     

    Any
change to their quality system or certification shall be sent to Hydro-Québec’s
quality officer during the term of the contract.

     

    7.           NOTICE
OF PROCEDURE (F18)

     

    Any
request made by the supplier for a quality control procedure shall be made in
writing and sent to Hydro-Québec’s representative.  The request shall
be made in advance within a reasonable period of time, having regard to the
place where the procedure will be carried out.  At least two business
days are requested for local procedures.  That time frame may be
several weeks for a procedure carried out in a foreign country.

     

    The
request shall specify the purpose, date and place of the procedure, the order
number, the item number in the order, the material to be controlled and, where
applicable, the serial number.

     

    Hydro-Québec
shall cover its representative’s costs for such procedures. However, if the
control or testing results do not meet the requirements of the client and the
order, or if the procedure is delayed, the repeat or waiting costs shall be
covered by the supplier.

     

    8.           QUALITY
RECORD (F21)

     

    The
quality records containing any documents or objective proof which can
demonstrate the conformity of the product to the contract requirements shall be
retained for at least three (3) years after delivery or three (3) years after
the guarantee expires, whichever is later.

     

    The
records shall be available for consultation by Hydro-Québec or its
representative at all times during that period at the premises of the supplier
and the subcontractors.

     

    9.           HYDRO-QUÉBEC’S
QUALITY PLAN REQUIREMENTS (F61)

     

    This
clause sets out the minimum requirements for the content of a quality plan and
how it must be submitted to Hydro-Québec and managed.  A quality plan
shall be required for each specific product or family of products listed in the
order.

     

    The
quality plan covers all of the development, monitoring and measurement
activities. In addition to the inspection and testing activities, formerly known
as the “Inspection and Testing Plan” (“ITP” or “PIE”), the review activities for
the requirements pertaining to the product, design and development, purchase,
product preservation, etc. shall be covered therein.

     

    Where the
supplier is not also the designer, manufacturer or installer, it shall be
responsible for ensuring that its subcontractors provide their quality plan in
conformity with the requirements.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    It shall
not be necessary to resubmit a quality plan if it covers a family of products
provided it has already been accepted by Hydro-Québec; and there has been no
change to the product’s material, form, function or manufacturing process.
However, acceptance of the quality plan shall be valid for no more than 3 years
from the date of acceptance.

     

    Upon
request, the supplier shall provide Hydro-Québec with the manual, procedures,
instructions and forms referred to in the quality plans, and those relating to
the quality plans of the subcontractors.

     

    
      	
              1.0  

            	
              GENERAL
      REQUIREMENTS

               

              1.1   
      Issue
      Deadline

               

              At
      least four (4) weeks prior to the commencement of realization, the
      supplier shall submit quality plans prepared in accordance with the
      requirements to Hydro-Québec’s quality officer for
      approval.

               

              1.2    Revision
      of Quality Plan

               

              The
      supplier shall keep the quality plans up to date throughout the term of
      the contract or the order.  Any revision made to a quality plan
      relating to the contract requirements shall be submitted immediately to
      Hydro-Québec’s quality officer for
approval.

            

    

     

     

    
      	
              2.0  

            	
              QUALITY
      PLAN PRESENTATION

               

              The
      quality plan shall include:

               

              2.1  
      A
      cover page with:

            

    

     

    
      	
              -  

            	
              The
      name of the supplier/manufacturer.

            

    

     

    
      	
              -  

            	
              The
      quality plan number.

            

    

     

    
      	
              -  

            	
              The
      revision date and number.

            

    

     

    
      	
              -  

            	
              The
      product description.

            

    

     

    
      	
              -  

            	
              The
      order number, master agreement number or lot number, if
    any.

            

    

     

    
      	
              -  

            	
              The
      name and signature of the person responsible for approval by the
      supplier.

            

    

     

    
      
        	
                 

              	
                2.2   
      A
      table of contents listing the sections and their page numbers, if any, in
      the quality plan.

                 

                2.3   
      A
      process diagram (if required by Hydro-Québec’s quality officer); that is,
      a graphic representation of the development, monitoring and measurement
      activities, also including Hydro-Québec’s hold
      points.

                 

                Note:           An
      example of a “CQ-Ps-07/IN01” quality plan is available from Hydro-Québec’s
      quality officer upon
  request.

              

      

    

     

    
      	
              3.0  

            	
              ACTIVITIES
      COVERED IN QUALITY PLAN

               

              The
      quality plan shall include the following activities:

              (If
      some activities do not apply, this must be explained in the quality
      plan.)

               
      

            

    

     

    
      	
              3.1  

            	
              Review
      of the product requirements (contract
review).

            

    

     

    
      	
              3.2  

            	
              Design
      and development

               

              The
      design and development activities shall include, without limitation, the
      following:

            

    

     

    
      	
              3.2.1  

            	
              Design
      and development planning (stages and responsibility for design and
      development)

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
              3.2.2  

            	
              Design
      and development inputs (Hydro-Québec order requirements, Hydro-Québec
      specifications, standards)

            

    

     

    
      	
              3.2.3  

            	
              Design
      and development outputs (approval of drawings, data sheets, calculation
      notes)

            

    

     

    
      	
              3.2.4  

            	
              Design
      and development review (internally and/or with the
  client)

            

    

     

    
      	
              3.2.5  

            	
              Verification
      of design and development (conformity of drawings, calculation notes,
      testing reports compared to inputs)

            

    

     

    
      	
              3.2.6  

            	
              Validation
      of design and development (installation tests, operating
      instructions)

            

    

     

    
      	
              3.2.7  

            	
              Control
      of design and development modifications (quality notification, technical
      modification request (“TMR” or
“DMT”))

            

    

     

    
      	
              3.3  

            	
              Purchasing

            

    

     

    
      	
              3.3.1  

            	
              Principal
      suppliers and subcontractors

               

              For
      each principal product or service purchased or subcontracted, the quality
      plan shall mention (or cite in a
  schedule):

            

    

     

    
      	
              -  

            	
              The
      description of the principal products and services purchased and
      subcontracted.

            

    

     

    
      	
              -  

            	
              The
      names and contact information for the suppliers and
      subcontractors.

            

    

     

    
      	
              -  

            	
              The
      quality requirements sought (including the subcontractors’ quality
      plans).

            

    

     

    
      	
              3.3.2  

            	
              Purchasing
      documents

               

              The
      supplier’s purchasing documents shall include all the requirements
      stipulated in the contract documents.  Hydro-Québec or its
      representative may visit the premises of the supplier and its
      subcontractors at any time to verify that the contract requirements are
      being met.

            

    

     

    
      	
              3.4  

            	
              Client’s
      property (products supplied by the client, if
  any).

            

    

     

    
      	
              3.5  

            	
              All
      relevant development, monitoring and measurement
      operations.  Including the hold points previously identified by
      Hydro-Québec in its request for proposals documents and
      specifications.  Hydro-Québec’s representative may, when
      reviewing the quality plan, ask for the inclusion of additional hold
      points and specify the advance notice required for carrying out the
      procedures.

            

    

     

    
      	
              3.6  

            	
              The
      tests, pre-delivery installation tests and testing programs (where
      required, including the sequence, procedures and test circuit
      diagrams).

            

    

     

    
      	
              3.7  

            	
              The
      identification and traceability (where applicable, an identification and
      recording method to ensure the product can be
  traced)

            

    

     

    
      	
              3.8  

            	
              Preservation
      of the product (packaging and handling: Hydro-Québec requirements SN-1.1
      or other, if specified).

            

    

     

    
      	
              3.9  

            	
              Record
      control (review and closure of quality
record).

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	
              3.10  

            	
              Issuance
      of decision to utilize (DU).  Hold
  point.

            

    

     

    
      	
              4.0  

            	
              CONTENT
      OF QUALITY PLAN

            

    

     

    
      	
              4.1  

            	
              Development,
      monitoring and measurement activities.  (Include or refer to the
      activities of subcontractors, where applicable)

               

              For
      each development, monitoring and measurement activity, the quality plan
      shall include the following
information:

            

    

     

    
      	
              -  

            	
              The
      activity and its reference number.

            

    

     

    
      	
              -  

            	
              The
      reference documents (procedures, drawings, data sheets, technical
      documents reviewed by
Hydro-Québec).

            

    

     

    
      	
              -  

            	
              The
      characteristics to be controlled.

            

    

     

    
      	
              -  

            	
              The
      acceptance criteria.

            

    

     

    
      	
              -  

            	
              The
      monitoring and measurement
frequency.

            

    

     

    
      	
              -  

            	
              The
      title of the person in charge of the
activity.

            

    

     

    
      	
              -  

            	
              The
      expected quality records.

            

    

     

    
      
        	 	
                In
      addition, the quality plan shall cover the
    following:

              

      

    

    
       

    

    
      	
              4.2  

            	
              The
      special skills of the personnel (welders, inspectors) where
      applicable.

            

    

     

    
      	
              4.3  

            	
              The
      validation of the production processes and service preparation processes,
      if any.  (Special processes: processes where the characteristics
      of the product in the finished product cannot be fully
      verified.  For instance, welding, plating, heat treatment,
      non-destructive tests).

            

    

     

    
      	
              4.4  

            	
              Control
      of the monitoring and measurement instruments (measuring and testing
      equipment).

            

    

     

    
      	
              4.5  

            	
              Control
      of non-conforming products (non-conformity of supplier and Quality
      Notification).

            

    

     

    
      	
              4.6  

            	
              Mention
      all requirements of the quality plan that do not
  apply.

            

    

     

    10.           DECISION
TO UTILIZE (F11)

     

    The
supplier shall obtain a decision to utilize from Hydro-Québec’s quality officer
before any product is delivered.

     

    If you do
not know the quality officer’s name, please contact:

     

    Pierre
Guyon

    Head,
Electrical Apparatus

    Phone:  (514)
840-3000 ext. 4915

    Fax:  (514)
840-4320

    

    11.           POST-D.U.
DELIVERY AUTHORIZATION

     

    Further
to the issuance of a D.U. (decision to utilize) the supplier may ship the
equipment directly if the receiving point is a store or a Hydro-Québec material
distribution centre (“MDC” or “CDM”).  For any other delivery point,
the supplier must have authorization from the person who signed the order,
otherwise receipt may be refused and the equipment may be returned to the
shipper, at its expense.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    12.           DELIVERY
PERIOD

     

    The
delivery period shall be between twelve (12) and fifteen (15) weeks from
issuance of the order, depending on the listings.

     

    The
supplier may deliver transformers from the time the order is issued until the
end of the contractual delivery period (ongoing delivery).

     

    Any
delivery which is late due to a non-conformity or which is the subject of a
“Quality Notification” shall be covered by the supplier.

     

    13.           LATE
DELIVERY

     

    If the
supplier expects a delivery to be late, it shall immediately notify the person
who signed the order.

     

    14.           COMPLIANCE
WITH QUANTITIES

     

    The
quantities delivered shall be identical to those indicated in the order. There
shall be no changes without the prior approval of the person who signed the
order.

     

    15.           DELIVERY
PERFORMANCE

     

    Every
quarter, the supplier’s delivery performance shall be measured based on the
quantities per article code delivered on time.  Any breach of
performance shall be subject to a penalty in accordance with section 16 “Penalty
for Late Delivery”, which may even include withdrawal of the article
code.  In addition, the supplier’s performance may be used as a
criterion for awarding any future contracts.  Within 15 days of
receipt of the delivery performance report, the supplier shall validate the
results transmitted and notify Hydro-Québec of any discrepancies.

     

    Calculation
of actual delivery period:

     

    Starting
point for delivery period calculation: the date the order is issued. This date
is recorded in Hydro-Québec’s SAP system and cannot be altered.  The
order is sent to the supplier the same day by fax or e-mail.  The
supplier is responsible for notifying the person who signed the order if there
is a delay.

     

    End point
for delivery period calculation: the date of physical receipt of the equipment
recorded in the SAP system.

     

    16.           PENALTY
FOR LATE DELIVERY

     

    If the
supplier fails to meet the later of the date of delivery to the F.O.B. point
determined on the order and the contractual delivery period, Hydro-Québec will
calculate a penalty as contractual damages without the necessity to provide
proof in an amount equal to [XX]%, but in no event exceeding [XX]%, of the price
(excluding shipping costs, GST, QST where applicable) to the F.O.B. point
indicated on the order for each undelivered unit for each week or partial week
delivery is late between the contractual date and the effective date of delivery
of the said unit to the F.O.B. point.

     

    If the
supplier wishes to have the penalty waived because it was delayed for reasons
beyond its control, it shall submit a written request to the contract
administrator.  Hydro-Québec shall notify the supplier in writing
within ten (10) days of its acceptance or refusal of the request.

     

    Penalties
shall be compiled quarterly with the delivery performance report. Penalties
shall be paid to Hydro-Québec once a year.

     

    17.           DELIVERY
ON PALLETS

     

    The
equipment shall be delivered on pallets open on four (4) sides, built and sized
for the equipment they will support.  They shall be manufactured of
hardwood and the equipment shall be packaged in accordance with standards (use
of metal straps is prohibited) but not exceeding the exterior dimensions of the
pallet.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Shipments
that do not meet these criteria will be returned at the supplier’s
expense.

     

    18.           DELIVERY
BY TRUCK

     

    Equipment
shall only be delivered on OPEN trucks.

     

    19.           DELIVERY
ADDRESS

     

    Deliveries
shall be made to the following addresses:

     

    CDM
St-Hyacinthe

    7300
Avenue Choquette

    St-Hyacinthe,
Quebec

    J2S
8S7

    

    CDM
Quebec

    2600 Rue
Decelles

    Quebec
City, Quebec

    G2C
1R1

    

    The exact
addresses shall appear on each order under contract.

     

    20.           INDEXING
CLAUSE

     

    For
purposes of this contract, the basic unit price for each item shall be subject
to an upward or downward adjustment based on the following formula for orders in
each of the eight (8) quarters corresponding to the contract term commencing as
of April 1, 2006:

     

    [XX]

     

    Notes:

     

    For
purposes of calculating the indexing factor, the months of November 2005,
October 2005 and December 2005 shall respectively be deemed as the month of
opening and the months preceding and following the opening of the
tenders.

     

    If, when
the orders are issued, the indexes required to calculate the price have not been
published, the successful tenderer may issue an initial invoice based on the
prices in force in the previous period.

     

    The
calculations shall be made as of the initial publication of the last index
required for each calculation; the revisions already made to the indexes for the
prior months shall be taken into account, but the subsequent revisions of the
indexes shall not be taken into account.

     

    The
exchange rate used for a given month shall correspond to the monthly average of
the noon rates for US$ expressed in CA$.

     

    Indexing
calculations shall be made to at least four decimal points.

     

    21.           ENERGY
LOSS VALUES

     

    The
economic value of energy losses during the contract term shall be:

     

    [XX]

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    22.           PENALTY
ON SURPLUS EFFECTIVE AVERAGE LOSSES

     

    Where,
for a given item, the average effective losses referred to above exceed the
specified losses, the amount of the penalty shall be calculated as
follows:

     

    [XX]

     

    23.           QUEBEC
CONTENT

     

    Validation of contractual
Quebec content

     

    If an
award is made that includes contractual Quebec content, Hydro-Québec shall
proceed to validate same and it shall be determined by
Hydro-Québec.  This shall include, in particular, an audit of the
manufacturing process used by the successful tenderer and its subcontractors,
the provenance of the materials and services and the successful tenderer’s
actual outlays.  As the Quebec content aspects are gradually attained,
the successful tenderer shall be granted the percentages associated with these
aspects.  For that purpose, Hydro-Québec may require interim
reports.  At the end of the production phase, the successful tenderer
shall submit a final report on the Quebec content reached.

     

    The
successful tenderer shall keep accounting records consistent with generally
accepted accounting principles for all such outlays invoiced.  The
successful tenderer shall retain all supporting documentation regarding Quebec
content until final payment.

     

    On
forty-eight (48) hours’ notice, the successful tenderer shall allow Hydro-Québec
access to all its accounting documentation relating to Quebec content and to
copy and take excerpts of same.

     

    Penalty for failure to meet
contractual Quebec content

     

    If the
successful tenderer fails to meet the contractual Quebec content percentage, a
penalty calculated on the contract price, excluding GST and QST, for the product
for which the contractual Quebec content has not been met shall be determined
based on the following formula:

     

    [XX]

     

    24.           INVOICING
OF TAXES

     

    On each
invoice, the goods and services tax (G.S.T.) and Quebec sales tax (Q.S.T.) at
the legal rates in force shall be indicated separately.

     

    The
registration number for G.S.T. purposes and the registration number for Q.S.T.
purposes shall also appear on each invoice.

     

    If the
successful tenderer fails to comply with these requirements, Hydro-Québec may
refuse the invoice and return it for correction or rectification.

     

    25.           GUARANTEE

     

    
      Not
Used

    

     

    26.           PAYMENT

     

    
      Not
used

    

     

    27.           SUPPLY
SECURITY

     

    Whenever
delivery is compromised in the short or medium term (raw materials supply
problem, strike, lockout, calamity, earthquake, etc.) the supplier shall forward
the contingency plan it plans to follow to the contract administrator within ten
(10) days of the occurrence of the problem.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    To offset
any risk of a shortage and further to the sending of the contingency plan
explaining why the supplier can no longer accept orders, Hydro-Québec reserves
the right in such instance to obtain its supplies elsewhere during such period
as may be necessary pending resumption of normal deliveries by the
supplier.

     

    The
supplier may not claim to have sustained a loss of profits or claim compensation
or an extension of its contract on the pretext that Hydro-Québec did not order a
minimum volume of its needs.

     

    28.           CONTRACT
ADMINISTRATION

     

    Marc
Desautels

    Advisor –
Contract Management

    Supply
Agreements

    Strategic
Goods

    Procurement
Branch, 7th Floor

    855
Ste-Catherine St. East,

    Montreal,
Quebec  H2L 4P5

    

    Phone:  (514)
840-3000 ext. 6765

    Fax:  (514)
840-3322

    Email:
Desautels.Marc@hydro.qc.ca

    
 

    29.           CONTRACT
DOCUMENTS

     

    This
contract is consistent with our request for proposals no. 11954845 dated October
24, 2005, your tender no. 6100098418 dated November 23, 2005, our correspondence
dated January 10 and 31, 2006 and March 9, 2006 and your correspondence dated
December 21, 2005, January 12, 2006, February 7 and 24, 2006 and March 1 and 23,
2006.

    

    
      
        
           

        

        
          23

          
            

          

        

         

      

    

     

    A           REQUEST FOR AMENDMENT – MASTER
AGREEMENT OR ORDER

    
      Supply Agreement - Strategic Goods and
Information Technologies

    

    
      
        

      

    
      	
              SUPPLIER:

            	
              Pioneer
      Transformers Ltd.

              612
      Chemin Bernard, P.O. Box 272

              Granby
      QC

              J2G
      8E5

            	
              DATE:  2008/03/04

            

    

    
 

     

    
      	
              Amendment

              No.

              1

            	
              Contract
      No.

              4600010831

            	
              Order
      No.

            	
              Hydro-Québec
      Official

              Marc
      Desautels

            	
              Tel:
      514-840-3000 ext. 6765

              Fax:
      514-840-3322

            

    

    A
– CURRENT AMENDMENT

    
      	
              Extension
      of the master agreement, under the same business conditions, for a further
      period of 24 months, namely from April 1, 2008 to March 31,
      2010.

               

               

               

               

               

               

               

               

               

               

               

               

               

               

            

    

    B-
SUPPLIER

    
      	
              [x]

               

               

               

               

              [  ]

               

              [  ]

               

            	
              We
      agree to perform the requested amendment on the same terms and conditions
      as the above-mentioned contract, it being agreed that this request does
      not constitute a firm undertaking by Hydro-Québec and that the mere
      authorization to proceed in “C”, approved by the Hydro-Québec contract
      official, will allow the supplier to proceed.

               

              Delivery
      date:                                                                (signed)                                           25-3-08 

              Signature                                       Date

              We
      refuse to perform the requested
      change                                                                                                         

              Signature                                       Date

              Not
      applicable

            

    

    C-
AUTHORIZATION TO PROCEED

    
      	
              You
      are authorized to proceed with this change immediately

               

                                                                                                                                                                              
      

              H.Q.
      Official                                                      Signature                                           Issue
      date

            

    

    c.c.
Supplier, Quality Assurance (CQ)

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    
      
        
          	
                  HYDRO
      QUÉBEC

                	
                  Contract

                

        

        

         

      

    

     

     

    2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]