The Capacity Allocation Model (CAM) is HHHI’s framework for planning and fairly allocating
capacity (and associated expansion costs) when significant, multi-year developments in a
defined area require shared upstream system expansions. CAM prevents “first movers”
from carrying the full cost of station/feeder upgrades that ultimately serve multiple projects.

• Purpose. Allocate capacity and costs for distribution system expansions that serve multiple developments in a defined area over several years.
• How it works. Each developer connecting to CAM-enabled capacity contributes a proportional share of the total upstream infrastructure based on reserved/connected load (kVA).
• Recovery horizon. Capital contributions are forecasted and settled over a period not exceeding 15 years.
• First-mover protection. Developers connecting in later years pay a subsequent participant/financing charge so earlier contributors (and ratepayers) remain whole.
• Financial security. Binding financial commitments (e.g., letters of credit “(LOC”)) are required for committed capacity.
• Transparency & queueing. HHHI maintains a Capacity Ledger and a time-stamped queue; capacity is reserved upon acceptance of a Connection Offer and posting of required deposits.
• Planning assumption (residential). For subdivision planning transparency, HHHI publishes a typical residential usage/demand assumption used for CAM evaluations (updated periodically). Project-specific forecasts remain the basis for economic evaluation.

CAM Qualifications (HHHI)

An area may proceed under CAM when all of the following are met:

1. Large, primarily residential development area. The area is predominantly residential (supportive uses such as schools, parks, and local retail may be included), is new (no final agreements/expansion plan executed), and is suitable for coordinated expansion planning.
2. Multi-developer, multi-year buildout. More than one developer is expected to connect over a period of more than one year (and within 15 years) in alignment with municipal official/secondary plans.
3. Mature planning inputs. Development has reached a stage where HHHI can design the electricity works. E.g., site/servicing plans indicate road/civil layouts, and developers have provided sufficiently detailed load and staging information to run the model.
4. Significant upstream expansions. Efficient supply requires substantial shared system upgrades (e.g., new/expanded transformer or distribution station capacity, long shared feeders, central switching).

Posted security. A significant portion of the agreed/committed security (e.g., LOC) is provided to reserve capacity and enable procurement/construction.

Note: All five criteria must be satisfied for a project to proceed under CAM.

Average residential usage assumption (kW/year) 

To provide Clarity and consistency in subdivision planning and CAM economic evaluation, HHHI will publish and maintain an average residential consumption value.

1. Average annual usage (weather‑normalized): 4.5 kW per premise. This amount can vary depending on the size and type of the home, and other factors such as the use of EV charges and heat pumps. Please get in touch with us to discuss your development’s specific requirements. To ensure clarity and consistency in subdivision planning and CAM economic evaluations, the Distributor will publish and maintain an average residential consumption value for these evaluations.
2. Basis: Residential RPP class typical consumption (TOU/Tiered/ULO), adjusted for electrification trends (e.g., heat pumps, EV adoption) where applicable.
3. Use in CAM: This value is used for planning transparency and communication with developers. Economic evaluations will rely on project-specific load forecasts. Where an applicant substantiates a materially different usage, the Distributor may use that forecast.
4. Updates: Reviewed annually or when usage patterns materially change. The Distributor will post the current value on its website and in developer handouts.

The Ontario energy regulator, the Ontario Energy Board (OEB), has developed a Capacity Allocation Model methodology to be applied by electricity distributors. Please click the link below to view the OEB’s methodology.

Appendix I – Methodology for Implementing a Capacity Allocation Model