Matter Numbers M06400 to M06599
Matter
Number
Maritime Link across Cabot Strait 500 MW 670 000 horsepower
• M06592
NSPML - Nova Scotia Power Maritime Link Inc. - NSPML 2014 Q4 Quarterly Report - December 15, 2014
— This [Exhibit N-1 in Matter Number M06592] is the Q4 2014 Quarterly Report for the Maritime Link as directed by the UARB.
1.0 Introduction
2.0 Update of Project Schedule...
2.1 Gates and Milestones
2.2 Commercial Activities
2.2.1 Land Access Agreements
2.2.2 Funding
2.2.3 Joint Development Agreements
2.3 Engineering Activities
2.4 Submarine Cables (Marine)
2.5 Horizontal Directional Drilling (HDD) Boreholes (NS and NL)
2.6 Converter Stations
2.7 Right of Way Clearing Contractor(s) – Transmission Lines
2.8 Construction Contractor(s) – Transmission Lines
2.9 Construction Contractor(s) – Site Preparation
The designs for the grounding sites, including the breakwaters in NS and NL, were completed
for the Request for Proposals (RFP) which was issued and closed in October 2014. The proposals
are being evaluated and construction of the grounding site marine breakwaters are scheduled to
begin in 2015. The designs of the grounding site electrical specifications are in development and
will be included in the RFP scheduled to be issued in 2015.
2.10 Granite Canal Accommodations Construction
2.11 Granite Canal Accommodations Operations
2.12 Construction Contractor(s) – Other
3.0 Updated Cost Summary
This is the Q4 2014 quarterly report for the Maritime Link as directed by the UARB...
The Independent Engineer, MWH Canada, Inc., (formerly Montgomery Watson Harza)
acting on behalf of the Government of Canada, participated in a site visit for the
Maritime Link (ML) Project during October in both NS and NL. The IE was accom-
panied by a representative of Natural Resources Canada as well as representatives
from NSPML. Please refer to Attachment 7 for a copy of the Report from the site visit...
References:
• Matter Number M06821 –
NSPML - Maritime Link 2015 Q1 Quarterly Report - April 15, 2015
• Matter Number M06592 –
NSPML - Maritime Link 2014 Q4 Quarterly Report - December 15, 2014
• Matter Number M06477 –
NSPML - Maritime Link 2014 Q3 Quarterly Report - October 15, 2014
• Matter Number M06280 –
NSPML - Maritime Link - 2013 Affiliate Code of Conduct Annual Report - June 13, 2014
• Matter Number M06279 –
NSPML - Maritime Link 2014 Q2 Quarterly Report - June 13, 2014
• Matter Number M06191 –
NSPML - Maritime Link 2014 Q1 Quarterly Report - April 15, 2014
• Matter Number M06024 –
NSPML - Maritime Link 2013 Q4 Quarterly Report - December 13, 2013
• Matter Number M05419 –
NSPML - Application for approval of the Maritime Link Project... - January 28, 2013
• Matter Number M05419 – NSP Maritime Link Incorporated (Re), 2013 NSUARB 154 (CanLII) July 22, 2013
§6.4.2 Submarine (underwater) and Land Cables
• Matter Number M05419 – NSP Maritime Link Incorporated (Re), 2013 NSUARB 242 (CanLII) November 29, 2013
§5.2 What should be the reporting requirements for NSPML during the course of the Maritime Link (ML) Project?
The reporting requirements are set out in §7 of the
ML Regulations.
Maritime Link - connecting Muskrat Falls with Nova Scotia
Source: NSPML Quarterly Report, December 2014 - Attachment 6, Page 4 of 5
The Maritime Link Transmission Project
The Maritime Link Project involves the design, construction, operation and maintenance of the 500-megawatt high-voltage
direct current transmission line, as well as a 230 kilovolt high-voltage alternating current transmission line and associated
infrastructure, between Granite Canal, Newfoundland and Labrador, and Woodbine, Nova Scotia. Key components include
two 170-km high-voltage underwater cables across the Cabot Strait, nearly 50 km of overland transmission in Nova Scotia,
nearly 300 km of overland transmission in Newfoundland, as well as related land-based equipment and infrastructure
(e.g., converter stations, grounding facilities). The Project will deliver 986,000 megawatt hours annually (or about 8% to
10% of Nova Scotia's annual electricity demand) of energy generated by Nalcor Energy's Lower Churchill Project (LCP),
which is expected to be operational by the end of 2017. The Project will provide Nova Scotia with a more diversified
portfolio of energy options and reduce dependency on existing commercial-scale carbon-based generation facilities.
It will also provide Newfoundland and Labrador greater interconnection and access to other electricity markets through a
new regional loop. The Project is based on major transaction agreements with Nalcor Energy, which has committed to
deliver 20% of the LCP generation in exchange for Emera's paying for, engineering, constructing, maintaining and owning
the Project and the electricity transmission rights within Nova Scotia. NSPML will own the Project's assets for 35 years
following the beginning of commercial operation, after which ownership will be transferred to Nalcor Energy. The project
company, NSPML, was established as a utility company under Nova Scotia laws. It is regulated by the Nova Scotia Utility
and Review Board (UARB) and will benefit from a regulated revenue requirement, which covers all approved operating
and maintenance costs, debt service and UARB-approved return on equity. All costs "prudently incurred," as defined by
the UARB, will be passed through to rate payers, who will essentially be bearing volume, market and performance risks.
DBRS (originally known as Dominion Bond Rating Service) views the technology risk pertaining to the Project as low
to medium, based on the proven equipment to be used and performance data from existing transmission assets.
However, the installation of the two 170-km underwater cables is not a trivial task and is not considered low risk.
The fabrication and installation of the cables will be provided on a fixed-price basis. Work has started
in 2014 with completion and beginning of commercial operations scheduled for 2017.
The total gross budget for the Project is estimated to be $1.58 billion.
• M06582
Heritage Gas Limited - Natural Gas Storage Services Costs Application - December 11, 2014
– Alton Natural Gas Storage LP (Alton) proposes to establish a large underground gas storage facility near
Alton in Colchester County, Nova Scotia. Heritage Gas Limited (Heritage), a company regulated by the
Nova Scotia Utility and Review Board, wants to use the new facility. In a Decision dated February 20, 2014,
the Board determined that storage costs could be included in Heritage's cost of service. On December 10, 2014,
Heritage filed an Application (M06740) with the Board for approval of the treatment, and the recovery, of
natural gas storage service costs.
– The parties to this proceeding were: Heritage Gas; Alton; the Consumer Advocate, appointed by the Board;
Nova Scotia Power Incorporated (which generates most of the electricity in Nova Scotia, and a major user of
natural gas); and the Nova Scotia Department of Energy.
– Underground storage of natural gas (for example in large caverns) is a common practice around the world.
Benefits include lower costs for natural gas customers, and improved security of supply. All parties in this
proceeding agree that, for exactly these reasons, this proposal promises to be beneficial to natural gas
customers in Nova Scotia, indirectly including everyone who buys electricity from NS Power Inc.
– The proposed storage facility will give Heritage the opportunity to buy extra natural gas when prices are lower.
Later, when prices are higher, Heritage will be able to use the cheaper stored gas, and pass on the saving to its
customers. In the present instance, the parties agree the savings may be large indeed. For example, an expert
witness retained by Heritage suggests they may amount to around $17 million a year.
– Further, the presence of a large quantity of stored gas provides a margin of safety in the event that supplies
of natural gas coming into the province are – for whatever reason – interrupted or impaired.
– On October 20, 2014, Heritage and Alton entered into an agreement (termed a "Precedent Agreement") for
natural gas storage service, which forms the basis of the revenue requirement referred to in this Application...
References:
• Application by Heritage Gas Limited for approval...natural gas storage service costs June 4, 2015
• Heritage Gas Limited (Re), 2015 NSUARB 147 (CanLII) June 4, 2015
• M06564
NSPI WO - TRE (Trenton) Bunker C System Upgrades - $469,838 - December 2, 2014
The Trenton Generating Station's operating approval requires that the current Bunker C oil storage / delivery system be
assessed to ensure compliance with current codes and regulations. This third party assessment has been completed as
requested as well as filed with Nova Scotia Environment (NSE). The purpose of this project is to address the recommen-
dations associated with the report and upgrade the Bunker C system at the Trenton Generation Station. The project will
improve the overall reliability of the system. Trenton Generating Station has boilers that are designed to burn coal, and
like other coal burning facilities, it uses heavy fuel oil (Bunker C) as a backup fuel. Bunker C oil is stored in an above
ground storage tank on site. The storage tank was constructed in 1968, and when filled to capacity, provides enough
fuel for one unit to operate exclusively on oil at full load for approximately six days. Availability of Bunker C is critical to
allow uninterrupted operation of the plant for contingency purposes. Firing Bunker C can also increase plant output in
the event coal quality degrades during winter months. Prior to the Operating Approval renewal, the Bunker C storage
and delivery system was maintained to the standards of the day of construction. Changes in the operating approval
now require this system be brought up to today's standards. As stipulated by NSE, NS Power is required to conduct a
Petroleum Storage Tank System Assessment, with the purpose of assessing petroleum storage tanks and associated
works against the "Nova Scotia Standards for Construction and Installation for Petroleum Storage Tank Systems,"
current edition and the "Nova Scotia Petroleum Management Regulations." The Approval Holder will undertake the
necessary maintenance or upgrades within one year of being identified. If these deficiencies cannot be corrected within
one year of being identified, then the reasons shall be submitted in writing 60 days prior to the deadline with a proposal
for a revised schedule, and a request for an extension. This project will address the required upgrades to the Bunker C
System in order to meet environmental compliance for current standards. Why do this project? The upgrades to the
Bunker C System are required to maintain compliance with the Trenton Plant operating approval and will upgrade the
Bunker C system to current standards. It will also improve reliability of the Bunker C Fuel System.
• M06563
NSPI WO - TRE 5 (Trenton) 5-2 Boiler Feedwater Pump Refurbishment P&A (Planned & Advanced) - $474,925 - December 2, 2014
["Planned & Advanced" (P&A) refers to projects pulled forward from future years for completion in the current year.]
The 5-1 and 5-2 boiler feedwater pumps (BFP) installed on Trenton Unit 5 are Byron Jackson double-case, 9-stage pumps
which supply 1260 gallons per minute (5730 litres per minute) of feedwater to the boiler. The pumps are built with an
external pressure retaining housing which surrounds an internal "volute". The volute includes rotating elements
(shaft, impellers) which pressurize water – to the pressure existing in the boiler during normal operation (in the vicinity
of 13,000 kPa or 1900 pounds per square inch) – as it flows through the pump. There is a spare volute assembly which is
installed in either pump during pump rebuilds. The volute that is removed during a rebuild is refurbished and becomes the
new spare. The BFPs were installed as part of the original equipment in 1969, In order to generate full load, Trenton Unit 5
requires both pumps to be in operation. The Unit is derated to an average capacity of 80MW with only one BFP in
operation (70MW deration). On May 2, 2014, the 5-2 pump motor began drawing excessive current, so Trenton 5 Unit load
was reduced in an effort to minimize the load on the pump while the issue was investigated. Vibration analysis determined
that the pump was in distress, and the pump was taken out of service and dismantled for inspection. Upon disassembly
and inspection of the 5-2 BFP, it was found that the thrust bearing retaining nut had disengaged from the shaft, allowing the
rotating assembly to move approximately 0.500 inch (about 12mm) out of position toward the motor. The internal
clearance between the rotating and stationary components is approximately 0.120 inch (about 3mm) in either direction.
Therefore, this movement resulted in extensive damage to the rotating element (shaft and all nine impellers) and stationary
parts (including volute casting, wear rings and seal bushings). The pump must be refurbished so that a spare is on hand
in the event of unexpected volute failure. This will reduce the time to return the pump to service and the unit to full load.
As part of NS Power's insurance agreement, a spare must be on hand in the event of a failure. Planning assumptions
include an average derate of 70MW for twelve weeks in the event of failure.
• M06562
NSPI WO - HYD (Hydro) - Tom's Lake Spillway Refurbishment U&U - $612,312 - December 2, 2014
This project includes the refurbishment of the Tom's Lake Spillway, located on the Dickie Brook River System, by
extending the length of the spillway and improving the spill channel profile. Erosion in the spillway channel has
progressed over the last few years. In May 2014, inspection found that the erosion was further along than anticipated,
requiring the work to be completed immediately. The erosion is now starting to progress into the spillway toe from the
spillway channel. Why do this project? Erosion in the spillway channel has progressed over the last few years.
In May 2014, inspection found that the erosion was further along than anticipated, requiring the work to be completed
immediately. Erosion is now at the point that the structural adequacy of the spillway is compromised. Its current
condition would not allow for a spill event to take place safely. In the event of a spill event, NS Power would be forced
to drain the Tom's Lake head pond in order to prevent further damage to the dam. Why do this project now?
The erosion in the spillway channel is impeding on the toe of the spillway, structural adequacy is affected and is
threatening the structure. This refurbishment is being completed now in order to avoid dewatering the head pond to
retain the structural stability of the spillway. The current condition of the spillway is not adequate to deal with a spill
event, which could occur in the spring of 2015, and would force the dewatering of the head pond. As of 2015,
generation from NS Power's legacy hydro facilities will qualify under the provisions of the Nova Scotia
Renewable Electricity Regulations. Generation from hydro facilities is an important part of NS Power's
compliance plan to serve 25% of sales from qualifying renewable generation sources. In May 2014, inspection
found that the erosion was further along than anticipated, requiring the work to be completed immediately. Moreover,
the project was originally estimated to be completed for less than $250,000 and not requiring UARB approval.
Further scoping showed additional work needed to be completed.
• M06561
NSPI WO - LIN (Lingan) E-Gallery Floor Replacement U&U - $950,629 - December 2, 2014
The E coal gallery is the main support structure for the two conveyor belts carrying coal into the building servicing the
four units at the Lingan Generating Station. The floor of the structure is steel plate, which has deteriorated due to the
corrosive nature of coal and the wet conditions caused by washing down the gallery for general maintenance. In early
2014, the deterioration was found to be such where access to the E-Gallery was no longer safe. The centre walkway
has grating installed and has not experienced the same amount of deterioration as under the two belts where in some
cases holes have developed. This project includes the replacement of the steel floor and some structural steel
refurbishments to allow for complete access of the gallery for operational and maintenance requirements. Why do
this project? It is essential to have E-belt and the E Coal Gallery completely operational to ensure reliable electric
energy production. The E-gallery is the only route for fuel to get to the boilers. The floor structure is essential for
full access around the belts for long term maintenance and reliability. Why do this project now? The floor must be
replaced now to mitigate any long term potential safety risks associated with the deteriorating floor. In the interim,
limited access for maintenance to the belts is being gained by using fall protection equipment. Guard rails have
been installed to keep personnel from accessing areas where conditions are not safe. Why do this project this way
Replacement of the E Gallery floor is the only option as long term full access of the belts is required for maintenance
and reliability. In the short term, fall restraint and protection is required for limited access to the belts. There is still
access down the center walkway, as inspection has shown it has not deteriorated as quickly as the floor under the belts.
• M06560
NSPI WO - CT (Combustion Turbine) Burnside Unit #3 Generator Refurbishment U&U - $2,567,808 - December 2, 2014
• M06555
NSPI - 2014 Cost of Service Study Progress Update - [373 pages] - November 28, 2014
• M06552
NSPI - DSM (Demand Side Management) Plan 2016-2018 - December 1, 2014
– Letter to UARB from Energy Minister Younger [Exhibit "Doreen Friis.pdf" in Matter Numbers M06552 and M05522]
...I (Energy Minister Younger) would like participants in the regulatory process to understand
the government's purpose
in creating the language in the Electricity Efficiency and Conservation Restructuring (2014) Act. The intent of the deferral
of $35 million in costs for Efficiency Nova Scotia is to generally recognize that efficiency programs are an investment.
As such, it is reasonable to capilatize the cost of the program and to allocate the expenses to the extent possible, in the
year the benefits are received. Those benefits are the reduced electricity generation costs, so our intent is to recognize
the expenses over the period of time when the benefits are realized. This approach was chosen because there is a
challenge in expensing costs in the year they are incurred since the benefits are not immediately realized...
• M06545
NERC - North American Electric Reliability Corporation - Q3 2014 - Application...Approval of Reliability Standard - Nov. 26, 2014
Some or all of NERC's Reliability Standards are mandatory in the Canadian provinces of Alberta, British Columbia, Manitoba,
New Brunswick, Nova Scotia [boldface emphasis added], Ontario, Quebec, and Saskatchewan.
—The North American Electric Reliability Corporation (NERC) hereby submits to the Nova Scotia Utility and Review Board
(NSUARB) an application for approval of the NERC Reliability Standards and an updated NERC Glossary of Terms
approved by the United States Federal Energy Regulatory Commission (FERC or the Commission). This filing covers
(updates and revisions made during) the time period from July 1, 2014 through September 30, 2014. NERC requests that,
as specified herein, these Reliability Standards and the associated NERC Glossary of Terms be made mandatory* and
enforceable for users, owners, and operators of the Bulk-Power System within the Province of Nova Scotia.
– The mission and programs of NERC extend to the United States and Canada.
NERC's primary objective is to ensure that Reliability Standards are adopted as mandatory
and that there is an effective oversight and enforcement regime in all jurisdictions.
The provinces of Nova Scotia, New Brunswick, Quebec and Ontario are included within the boundaries of NPCC.
* Note: NERC standards are now (November 2014) mandatory in Nova Scotia.
References:
• Matter Number M06656 –
NERC - North American Electric Reliability Corporation - Rules Revisions - Jan. 6, 2015
• Matter Number M06545 –
NERC - North American Electric Reliability Corporation - Q3 2014 - November 26, 2014
• Matter Number M06525 –
NSPI - Onslow 345 kV Node Swap - November 14, 2014
• Matter Number M06427 –
NERC - N.A. Electric Reliability Corporation - 2015 Business Plans etc. - Sep. 17, 2014
• Matter Number M06363 –
NERC - North American Electric Reliability Corporation - Q2 2014 - August 15, 2014
• Matter Number M06294 –
NSPI - Protection Risk Reduction 67N-Onslow 230kV - $2,870,285 - June 25, 2014
• Matter Number M06258 –
NERC - North American Electric Reliability Corporation - Q1 2014 - May 20, 2014
• Matter Number M06132 –
NERC - North American Electric Reliability Corporation - Q4 2013 - February 28, 2014
• Matter Number M06011 –
NERC - North American Electric Reliability Corporation - Q3 2013 - November 26, 2013
• Matter Number M05944 –
NERC - N.A. Electric Reliability Corporation - 2014 Business Plans etc. - Nov. 04, 2013
• Matter Number M05862 –
NERC - North American Electric Reliability Corporation - Q2 2013 - August 30, 2013
• Matter Number M05713 –
NERC - North American Electric Reliability Corporation - Q1 2013 - May 31, 2013
• Matter Number M04460 –
NERC - First NERC Quarterly Application...Approval...Reliability Standards... - Sep. 06, 2011
• Matter Number M04025 –
NSPI - Review...Reliability of Service at NSPI - April 04, 2011
• Matter Number M03815 –
NSPI - Backup Control Centre - $3,222,066 - December 24, 2010
• Matter Number M03324 –
NERC - NERC Reliability Standards; and NPCC Regional Reliability Criteria - June 29, 2010
• Matter Number M01989 –
NSPI - CIP Standards Implementation - $422,923 - July 22, 2009
• Matter Number M01871 –
NSPI - Report to the UARB Regarding NSPI/NB Power Interconnection - June 30, 2009
Also See:
• North American Electric Reliability Corporation NERC website
•
North American Electric Reliability Corporation Wikipedia
• NERC's Staff Expertise Recognized by IEEE Engineering Group July 31, 2014
• Keeping the Electricity Moving: NERC Guards the Bulk Power Grid ASME
•
Reliability Standards NERC
• Reliability Standards for the Bulk Electric Systems of North America complete set, 1838 pages
•
Integrated Bulk Power System Risk Assessment Concepts NERC (Chrome browser recommended)
•
Reliability – Canadian Electricity Association
• ISO RTO Independent System Operator (ISO) Regional Transmission Organization (RTO)
Reference:
Memorandum of Understanding
between
Nova Scotia Power Incorporated
and
The Northeast Power Coordinating Council Inc.
and
The North American Electric Reliability Corporation
May 9, 2010
This Memorandum of Understanding (MOU) between Nova Scotia Power Incorporated (NSPI), the
Northeast Power Coordinating Council Inc. (NPCC) and the North American Electric Reliability
Corporation (NERC), supports the December 22, 2006 Memorandum of Understanding between
the Nova Scotia Utility and Review Board (NSUARB, Board) and NERC. This MOU sets forth mutual
understandings of the signatories in relation to the approval and implementation of mandatory NERC
Reliability Standards and NPCC Regional Reliability Criteria in Nova Scotia and other related matters.
• M06536
NSPI - 2015 FAM AA/BA - November 27, 2014
In the matter of the 2015 Fuel Adjustment Mechanism (FAM) proceeding related
to the Actual Adjustment (AA) and Balance Adjustment (BA) recovery values
Reference:
• Matter Number M06536 – UARB Decision - December 12, 2014
Fuel Adjustment Mechanism (FAM)...(AA)...(BA) for 2015
• M06525
NSPI WO - Onslow 345 kV Node Swap - Maritime Link Related Transmission Capital Work - November 14, 2014
This project is to swap the node locations of Line L-8003 and Transformer 67N-T82 on Bus 67N-B82 and add a new
345kV Breaker and two Isolation Switches at the 67N-Onslow Substation (345kV). This will create a new node between
the existing Breaker 67N-815 and the new breaker 67N-816. Why do this project? As a result of the additional generation
associated with the Maritime Link Project, the system impact study identified the potential for a system voltage collapse
based on the current configuration of the 67N-Onslow Substation (345kV). Presently, Breaker 67N-812 is located between
Line L-8002 and L-8003 and failure of this circuit breaker will result in the loss of both lines. To avoid this contingency it is
proposed to swap Line L-8003 and Transformer 67N-T82 nodes in association with the addition of Breaker 67N-816.
Why do this project now? Completing this project now will eliminate the system constraints that would be introduced if the
Maritime Link project were to be completed before this work is carried out. In addition, completing this work now will
increase the power transfer capability from Onslow to Halifax (approximately 80 MW) and will minimize planned system
outages for the work presently being conducted on behalf of Northeast Power Coordination Council (NPCC) and
the Bulk Power System. Completing this work in conjunction with CI 43291 67N Onslow BPS Upgrades 230kV allows
NS Power to complete the work concurrently and reduce the need for an additional outage in the future.
References:
• Matter Number M06545 –
NERC - North American Electric Reliability Corporation - Q3 2014 - November 26, 2014
• Matter Number M06525 –
NSPI - Onslow 345 kV Node Swap - November 14, 2014
• Matter Number M06427 –
NERC - N.A. Electric Reliability Corporation - 2015 Business Plans etc. - Sep. 17, 2014
• Matter Number M06363 –
NERC - North American Electric Reliability Corporation - Q2 2014 - August 15, 2014
• Matter Number M06294 –
NSPI - Protection Risk Reduction 67N-Onslow 230kV - $2,870,285 - June 25, 2014
• Matter Number M06258 –
NERC - North American Electric Reliability Corporation - Q1 2014 - May 20, 2014
• Matter Number M06132 –
NERC - North American Electric Reliability Corporation - Q4 2013 - February 28, 2014
• Matter Number M06011 –
NERC - North American Electric Reliability Corporation - Q3 2013 - November 26, 2013
• Matter Number M05944 –
NERC - N.A. Electric Reliability Corporation - 2014 Business Plans etc. - Nov. 04, 2013
• Matter Number M05862 –
NERC - North American Electric Reliability Corporation - Q2 2013 - August 30, 2013
• Matter Number M05713 –
NERC - North American Electric Reliability Corporation - Q1 2013 - May 31, 2013
• Matter Number M04460 –
NERC - First NERC Quarterly Application...Approval...Reliability Standards... - Sep. 06, 2011
• Matter Number M04025 –
NSPI - Review...Reliability of Service at NSPI - April 04, 2011
• Matter Number M03815 –
NSPI - Backup Control Centre - $3,222,066 - December 24, 2010
• Matter Number M03324 –
NERC - NERC Reliability Standards; and NPCC Regional Reliability Criteria - June 29, 2010
• Matter Number M01989 –
NSPI - CIP Standards Implementation - $422,923 - July 22, 2009
• Matter Number M01871 –
NSPI - Report to the UARB Regarding NSPI/NB Power Interconnection - June 30, 2009
• M06524
ENSC - Update* on Implementation of the Electricity Efficiency and Conservation Restructuring (2014) Act - November 14, 2014
* This update [Exhibit E-1 in Matter Number M06524] is filed as a result of a directive from ENSC's 2015 DSM filing - M06247.
"It is further ordered that ENSC file updates with the Board regarding the implementation of the
recommendations of the Econoler and Peach reports and the internal audit reports, no later than
two weeks from the date that ENSC provides them to the DSM Advisory Group (DSMAG)...
In a letter [Document Number 230686 under Matter Number M06524] to Efficiency Nova Scotia Corporation (ENSC) dated December 1, 2014,
the Utility and Review Board (UARB, Board) makes the following comments:
In the section regarding development of the 2016-2018 Demand Side Management (DSM) Resource Plan
Agreement, the report – filed by ENSC on November 14, 2014 – states that ENSC and NSPI have developed
Guiding Principles [spelled out (made explicit) in Appendix B on page 19 of Exhibit E-1 in Matter Number M06524] for discussions between
the two organizations. The Board takes note of the following shared objectives included in the Guiding Principles:
• The 2016-2018 DSM Resource Plan application and contract submitted to the
regulator are fully
and publicly supported by Nova Scotia Power and Efficiency Nova Scotia.
• The 2016-2018 DSM Resource Plan process develops trust amongst Nova
Scotia Power,
Efficiency Nova Scotia, the UARB and the Provincial Government and stakeholders.
• Furthermore, the report's conclusion [page 11 of Exhibit E-1 under Matter Number M06524] states that ENSC and NSPI
are working to ensure a smooth transition to the new electricity efficiency and conservation model,
and that both organizations are committed to filing the 2016-2018 DSM Resource Plan agreement
on time, with all required elements included.
• M06517
NSPI - Request Approval of the 2015 Annually Adjusted Rates (AARs) - November 7, 2014
In assessing issues for large consumers (industrial and municipal) of electric energy which might unduly affect the
integrity of the NSPI power supply system the following would be considered: reliability, voltage flicker, phase unbalance,
harmonic voltage and current levels, rate of change in load levels, stability, fault levels and other related conditions.
References:
• Matter Number M06517 – Seven UARB Decisions - December 17, 2014
(1)
Wholesale Market Backup/Top-up Service Tariff
(2)
One Part Distribution Voltage Real Time Pricing Tariff
(3)
One Part Extra High Voltage Real Time Pricing Tariff
(4)
One Part High Voltage Real Time Pricing Tariff
(5)
Load Following (LF) of the Generation Replacement and Load Following (GRLF) Tariff
(6)
Seasonal Customer Charge for the Shore Power Tariff
(7)
Monthly Customer Charge for the Wholesale Market Non-dispatchable Supplier Spill Tariff
• M06514
NSPI - Application for approval... Annual Capital Expenditure Plan (ACE) for 2015 [881 pages] - November 6, 2014
Nova Scotia Power Inc. - 2015 ACE Plan Application for approval of $138.7 million of its
Annual Capital Expenditure (ACE Plan) - total $273.0 million
References:
• Matter Number M06963 –
2015 ACE Plan Stakeholder Engagement Report [348 pages] - June 30, 2015
• Matter Number M06514 –
Annual Capital Expenditure Plan (ACE) for 2015 [881 pages] - November 6, 2014
• Matter Number M06514 –
Annual Capital Expenditure Plan (ACE) for 2015 - 2015 NSUARB 92 - CANLII Archive
• Matter Number M06508 –
2014 ACE Directive 5 Report...Capital Expenditure Justification Criteria - Nov. 4, 2014
• Matter Number M05998 –
Annual Capital Expenditure Plan (ACE) for 2014 [853 pages] - November 21, 2013
• Matter Number M05998 –
Annual Capital Expenditure Plan (ACE) for 2014 - 2014 NSUARB 91 - CANLII Archive
• NSPI Responses to SBA Information Requests
• Lingan Reduced Minimum Load and Two Shift Cycling Study - June 2013
• Matter Number M05844 –
2013 Annual Capital Expenditure Plan (ACE) Directive [36 pages] - August 13, 2013
• Matter Number M05355/M04600 –
2013 Capital Expenditure Justification Criteria - NSPI - May 24, 2013
• Matter Number M05339 –
Annual Capital Expenditure Plan (ACE) for 2013 [1184 pages] - November 6, 2012
• Matter Number M05339 –
Annual Capital Expenditure Plan (ACE) for 2013 - 2013 NSUARB 106 - CANLII Archive
• Matter Number M04600 –
Annual Capital Expenditure Plan (ACE) for 2012 [1189 pages] - November 2, 2011
• Matter Number M04600 –
Annual Capital Expenditure Plan (ACE) for 2012 - 2012 NSUARB 53 - CANLII Archive
• Matter Number M03810 –
Annual Capital Expenditure Plan (ACE) for 2011 [657 pages] - December 24, 2010
• Matter Number M03810 –
Annual Capital Expenditure Plan (ACE) for 2011 -
2011 NSUARB 96 - CANLII Archive
• Matter Number M03339 –
2010 Annual Capital Expenditure Plan - Board Directive [2 pages] - September 23, 2010
• Matter Number M02511 –
Annual Capital Expenditure Plan (ACE) for 2010 [268 pages] - December 11, 2009
• Matter Number M02511 –
Annual Capital Expenditure Plan (ACE) for 2010 -
2010 NSUARB 99 - CANLII Archive
• Matter Number M00546 –
Annual Capital Expenditure Plan (ACE) for 2009 [191 pages] - December 12, 2008
• Matter Number M00546 –
Annual Capital Expenditure Plan (ACE) for 2009 -
2009 NSUARB 54 - CANLII Archive
• Matter Number M00221 –
Annual Capital Expenditure Plan (ACE) for 2008 UARB ???
• Matter Number M00221 –
Annual Capital Expenditure Plan (ACE) for 2008 -
2008 NSUARB 86 - CANLII Archive
• M06508
NSPI - 2014 ACE Directive 5 Report - Capital Planning & Capital Expenditure Justification Criteria - November 4, 2014
Nova Scotia Power Inc. Capital Planning & Capital Expenditure Justification Criteria
Detailed Document - Annual Capital Expenditure Plan (ACE)
System Design Criteria
• [page 70] A conductor carrying a current of 325 amperes is considered to be at its load limit...
• [page 100] The purpose of this document is to state the Nova Scotia Power Inc. planning and
development criteria to be applied to new additions to NS Power transmission system planned
or constructed after the effective date of this document...Where and when applicable, NS Power
criteria will be superseded by the Northeast Power Coordinating Council (NPCC) criteria...
• [page 102] Primary Transmission System (defined as 230kV and above)
The protection system must be designed with redundancy to cater to any single element failure,
in keeping with good utility practice and conform to industry standards.
Unless otherwise specified, and determined appropriate by transient stability studies, the following
fault clearing times will be applied to the Primary Transmission system. Any deviations
from these criteria must be submitted to the system planning group for approval.
a. For a three phase or phase to ground fault on the local bus or on any element directly connected to
the local bus such that it is within the instantaneous protection zone for that element...
the fault contribution clearing time will be 4 cycles...
• [page 104] The design criteria are:
1. From normal system conditions, the Interconnected Transmission System dynamic response shall be
stable and positively-damped following a permanent three-phase fault on any one system element
cleared in prime time. No cascade tripping shall occur.
2. From normal system conditions, the Interconnected Transmission System dynamic response shall be
stable and positively-damped following a permanent line-to-ground fault on any one system element
cleared in prime time. No cascade tripping shall occur.
3. From normal system conditions, the Interconnected Transmission System dynamic response shall be
stable and positively-damped following a permanent line-to-ground fault on any one system element
cleared in breaker back-up time. No cascade tripping beyond elements cleared by the
operative back-up protection shall occur...
• [page 106] - For system power transformers, where calculations are not specifically conducted:
a. Under system normal, loading is limited to 100% of the 65°C manufacturer
nameplate MVA
for summer and 110% for winter;
b. Under contingency, the 15 minute short time rating is limited to 110% of the 65°C manufacturer
nameplate MVA for summer and 120% for winter, provided that the system operator has
the means to reduce the overload to system normal rating within 15 minutes...
• M06505
NSPI WO (Q3 2014) - 9C Aberdeen Line Tap - $834,595 - October 31, 2014
This project includes the construction of a short line tap and connection of switches at the 9C substation. Under the current
transmission system configuration – existing switches on L6510 are inoperable under live line conditions – an outage is
required for all customers associated with the Port Hastings substation (2C) during the operation of the switches on L6537
between Port Hastings (2C) and Glen Tosh (5S), specifically Whycocomagh (67C), which includes South West Margaree (58C),
Cheticamp (103C) and Baddeck (104S). This project is required to eliminate switching outages to customers in
central and northeast Cape Breton when isolating transmission lines L6537 (connects 67C Whycocomagh to L6510)
and/or L6510 (connects 2C Port Hastings to 5S Glen Tosh).
• M06504
NSPI WO (Q3 2014) - HYD (Hydro) - Paradise Bearing Replacement (U&U) - $349,957 - October 31, 2014
The Paradise generating unit, a 3.6MW unit, suffered a bearing failure in May 2014, due to the failure of bearing temperature
sensors intended to shut the unit down before damage occurs. This project will replace the damaged bearings in the
Paradise generating unit as well as the temperature sensors and temperature control devices to ensure that the unit shuts
down when necessary to prevent similar damage in the future. Why do this project? The Paradise generating unit suffered
a bearing failure that caused a forced outage. This unit is a source of renewable energy contributing to compliance with
Renewable Electricity Standard targets as well as for grid stability and flexibility leading to the western end of the province.
Why do this project now? This unit is a critical unit to NS Power's electrical system. In order to return the generating unit
to service, this project must be completed now. Why do this project this way? Due to the failure of the bearings and
temperature sensors, the only option is replacement. Replacement of the bearings, temperature sensors and temperature
control devices will prevent this type of failure in the future. An updated control system will ensure the sensors are being
read and responded to accordingly. The bearings, temperature sensors and the control system have been replaced.
• M06502
NSPI WO - HYD (Hydro) - Nictaux Rotor Rewind U & U - $413,143 - October 31, 2014
This project includes the rotor rewind in order to restore the insulation integrity and return the Nictaux Generating Unit to
service. The Nictaux rotor experienced vibration issues caused by magnetic imbalance in the rotor poles. This imbalance
caused a forced outage in April 2014. A repair was made to the rotor in order to return the unit to service, but has not
corrected the vibration issue, therefore a rewind is necessary. Operating the unit with the imbalance can lead to frequent
future forced outages. Why do this project? Nictaux Generating unit recently experienced a forced outage due to vibration
issues related to a fault on the rotor. Temporary repairs have been made to the rotor to allow the unit to be returned to
service, with the risk that another forced outage was possible within the year. Following the repair, the insulation resistance
value was well below the recommended value as per the IEEE 43-2000 standard. The rotor needs to be rewound to
restore the insulation resistance value. Why do this project now? The repair made to the damaged rotor pole is a
temporary solution. The plant has a scheduled outage this year for a pipeline replacement. Therefore, rewinding the
rotor during this planned outage would not result in any additional lost generation. The longer the rotor is in service with
poor ground insulation the greater the chance of a forced outage. As of 2015, generation from NS Power's legacy
hydro facilities will qualify under the provisions of the Nova Scotia Renewable Electricity Regulations. Generation
from hydro facilities is an important part of NS Power's compliance plan to serve 25 percent of sales from
qualifying renewable generation sources. Why do this project this way? Having the rotor rewound will extend the life
of the generator and improve its reliability. Completing this work during a scheduled outage will reduce the amount of lost
generation due to forced spill from the headpond. The other alternatives are to continue operations with the temporary
repair in place, which is shown in the Economic Analysis Model to be a less economic alternative – or to replace* the rotor
entirely. This alternative is a much more costly option and not considered necessary at this time.
* Note: Here we have an example of a Low Probability High Consequence Event. This rotor, manufactured in 1954, is an expensive special design,
to meet the unusual overspeed strength required by the omission of a surge tank at this hydroelectric plant. The lack of a surge tank requires the
governor to be adjusted to shut off the water flow to the turbine markedly slower than usual. In the case of a full-load trip of the generator circuit breaker
(Low Probability), the slow movement of the governor to close the wicket gates means that the generator rotor reaches a much higher maximum rotational
speed (possible High Consequence if the rotor disintegrates) than would normally occur in a hydroelectric plant equipped with a surge tank. Why was the
surge tank omitted? The site geography, with its long gradual downhill slope, makes any effective surge tank design far too expensive.
• M06501
NSPI WO (Q3 2014) - IT Windows Server 2003 Upgrade P & A - $2,242,271 - October 31, 2014
This project will involve the procurement of all required hardware, software and migration tasks to upgrade Windows Server 2003
to Windows Server 2012. In cases where current applications are not supported by 2012, an upgrade to 2008 will occur.
Microsoft is discontinuing support of its Windows Server 2003 Operating System (OS) on July 14, 2015. Microsoft will no longer
provide any patches or security updates beyond this date, putting NS Power servers using this OS and the applications on these
servers at a security risk. Any new security threats will not be addressed by Microsoft. Why do this project? Microsoft has
announced that Windows Server 2003 Operating System (WIN2003) has reached the end of its supported life and is being
decommissioned by July 14, 2015. After this date, NS Power will no longer receive security and functionality patches that allow
the WIN2003 servers to work with other applications and protect it from new viruses and malware. In order to mitigate these risks,
this server upgrade must be completed prior to July 2015. Why do this project now? The migration from WIN2003 is necessary
because Microsoft is no longer supporting WIN2003 after July 2015. Running WIN2003 after July 2015 will expose NS Power to
security risks from viruses and malware. At the time of the Annual Capital Expenditure Plan (ACE) 2014 submission, this work
was expected to be completed in early 2015 in order to meet the July 2015 deadline. Further evaluation showed the scope of the
project to be greater than expected and required the project to begin in 2014. Why do this project now? The migration from
WIN2003 is necessary because Microsoft is no longer supporting WIN2003 after July 2015. Running WIN2003 after July 2015
will expose NS Power to security risks from viruses and malware. At the time of ACE 2014 submission, this work was expected
to be completed in early 2015 in order to meet the July 2015 deadline. Further evaluation showed the scope of the project to be
greater than expected and required the project to begin in 2014.
• M06500
Efficiency Nova Scotia Q3 DSM Report - October 31, 2014
• M06499
Lunenburg Electric Utility - Request approval of Capital Expenditure and Board Opinion - 2014/15 Capital Budget - October 27, 2014
Maritime Link across Cabot Strait 500 MW 670 000 horsepower
• M06477
NSPML - Nova Scotia Power Maritime Link Inc. - NSPML 2014 Q3 Quarterly Report - October 15, 2014
— This [Exhibit N-1 in Matter Number M06477] is the Q3 2014 Quarterly Report for the Maritime Link as directed by the UARB.
1.0 Introduction
2.0 Update of Project Schedule...
2.1 Gates and Milestones
2.2 Commercial Activities
2.2.1 Land Access Agreements
2.2.2 Funding
2.2.3 Joint Development Agreements
2.3 Engineering Activities
2.4 Submarine Cables (Marine)
2.5 Horizontal Directional Drilling (HDD) Boreholes (NS and NL)
2.6 Converter Stations
2.7 Right of Way Clearing Contractor(s) – Transmission Lines
2.8 Construction Contractor(s) – Transmission Lines
2.9 Construction Contractor(s) – Site Preparation
2.10 Construction Contractor(s) – Other (including Grounding Sites in NS and NL)
3.0 Updated Cost Summary
This is the Q3 2014 quarterly report for the Maritime Link as directed by the UARB...
In this reporting period, a significant contracting achievement was reached with the
execution of the ABB contract on 26 June 2014 for the design, construction and
commissioning of the converters and substations. This is the largest contract
within this project... Work to achieve agreements with remaining land owners
continues to be a priority with all DC Line and Grounding Line land rights forecasted
to be secured by year-end in both provinces. Rights associated with Access Trails
are anticipated to continue to be pursued into 2015 as necessary... For the months
of June, July and August 2014, NSPML submitted Maritime Link (MLP) Construction
Reports for the Independent Engineer's (IE) review. The IE reviewed technical aspects
of the MLP, including engineering, construction and other required due diligence
to confirm that Project execution plans are commercially reasonable, progressing in a
satisfactory manner in accordance with the terms of the applicable Material Project
Documents of the ML Credit Agreement and consistent with Good Utility Practice...
References:
• Matter Number M06592 –
NSPML - Maritime Link 2014 Q4 Quarterly Report - December 15, 2014
• Matter Number M06477 –
NSPML - Maritime Link 2014 Q3 Quarterly Report - October 15, 2014
• Matter Number M06280 –
NSPML - Maritime Link - 2013 Affiliate Code of Conduct Annual Report - June 13, 2014
• Matter Number M06279 –
NSPML - Maritime Link 2014 Q2 Quarterly Report - June 13, 2014
• Matter Number M06191 –
NSPML - Maritime Link 2014 Q1 Quarterly Report - April 15, 2014
• Matter Number M06024 –
NSPML - Maritime Link 2013 Q4 Quarterly Report - December 13, 2013
• Matter Number M05419 –
NSPML - Application for approval of the Maritime Link Project... - January 28, 2013
• M06475
NSPI - Fuel Costs Deferral Hearing - October 23, 2014
Reference:
• Matter Number M06475 – UARB Decision - Deferral of Fuel Costs - November 25, 2014
• M06453
Efficiency Nova Scotia Corporation - 2014 Rate and Bill Impact Analysis - Octber 1, 2014
• M06447
NSPI - NERC Bulk Electric System (BES) Definition Project Plan - September 30, 2014
– On November 18, 2010 FERC issued Order 743 and directed NERC to revise the definition of Bulk Electric System
so that the definition encompasses all Elements and Facilities necessary for the reliable operation and planning of
the interconnected bulk power system. Phase One of Project 2010-17 Definition of Bulk Electric System concluded
on November 21, 2011 with stakeholder approval of a revised definition of Bulk Electric System and application form
titled ‘Detailed Information to Support an Exception Request’ referenced in the Rules of Procedure Exception Process.
The revised definition, modifications to the Rules of Procedure to provide a process for determining exceptions to the
definition, and an application form to support that process, will all be presented to the NERC Board of Trustees for
adoption and then filed with regulatory authorities for approval.
– Per the FERC order granting extension, Registered Entities are to apply the definition of Bulk Electric System
to their asset inventory beginning July 1, 2014 and utilize a 24 month implementation period to effect an orderly
transition where all Elements and Facilities necessary for the reliable operation and planning of the interconnected
bulk power system are included in the Bulk Electric System by July 1, 2016.
– NS Power proposes to file by June 15, 2015 an Application to the Utility and Review Board for approval of the following:
• The proposed Nova Scotia Bulk Electric System Exception Procedure;
• The proposed BES Exception Request form;
• A list of NS Power BES definition exceptions;
• BES Exception Request forms for each exception on the list above; and
• A draft plan to address compliance gaps not being addressed by the Exception Procedure.
NS Power notes that the revised BES definition remains under review in a number of Canadian jurisdictions,
while others have adopted province-specific exception processes. Given this, the Company submits that the
schedule and approach proposed in this submission remain aligned with other Canadian jurisdictions.
References:
• NERC Proposed Definition of Bulk Electric System
• FERC
Order No. 743 - Revision to ERO Definition of Bulk Electric System November 18, 2010
• FERC
Order No. 743-A - Order on Rehearing March 17, 2011
• FERC Order Granting Extension of Time on BES June 13, 2013
• FERC Order Approving Revised Definition March 20, 2014
• (U.S.) National Law Review FERC Adopts Revisions to Bulk Electric System Definition March 26, 2014
• M06427
NERC - North American Electric Reliability Corporation - 2015 Business Plan and Budget and 2015 Business Plans
and Budgets of Regional Entities and of Proposed Assessments to Fund Budgets - Sepember 17, 2014
References:
• Matter Number M06545 –
NERC - North American Electric Reliability Corporation - Q3 2014 - November 26, 2014
• Matter Number M06525 –
NSPI - Onslow 345 kV Node Swap - November 14, 2014
• Matter Number M06427 –
NERC - N.A. Electric Reliability Corporation - 2015 Business Plans etc. - Sep. 17, 2014
• Matter Number M06363 –
NERC - North American Electric Reliability Corporation - Q2 2014 - August 15, 2014
• Matter Number M06294 –
NSPI - Protection Risk Reduction 67N-Onslow 230kV - $2,870,285 - June 25, 2014
• Matter Number M06258 –
NERC - North American Electric Reliability Corporation - Q1 2014 - May 20, 2014
• Matter Number M06132 –
NERC - North American Electric Reliability Corporation - Q4 2013 - February 28, 2014
• Matter Number M06011 –
NERC - North American Electric Reliability Corporation - Q3 2013 - November 26, 2013
• Matter Number M05944 –
NERC - N.A. Electric Reliability Corporation - 2014 Business Plans etc. - Nov. 04, 2013
• Matter Number M05862 –
NERC - North American Electric Reliability Corporation - Q2 2013 - August 30, 2013
• Matter Number M05713 –
NERC - North American Electric Reliability Corporation - Q1 2013 - May 31, 2013
• Matter Number M04460 –
NERC - First NERC Quarterly Application...Approval...Reliability Standards... - Sep. 06, 2011
• Matter Number M04025 –
NSPI - Review...Reliability of Service at NSPI - April 04, 2011
• Matter Number M03815 –
NSPI - Backup Control Centre - $3,222,066 - December 24, 2010
• Matter Number M03324 –
NERC - NERC Reliability Standards; and NPCC Regional Reliability Criteria - June 29, 2010
• Matter Number M01989 –
NSPI - CIP Standards Implementation - $422,923 - July 22, 2009
• Matter Number M01871 –
NSPI - Report to the UARB Regarding NSPI/NB Power Interconnection - June 30, 2009
• M06406
NSPI - Emergency Services Restoration Plan (ESRP) - 2014 Drill Report - September 2, 2014
On July 16, 2014 the UARB initiated a formal review of NS Power's response to Post-Tropical Storm Arthur. As part
of the formal requirements of that review process, NS Power submitted a report on the event on August 19, 2014.
The report provides, amongst other items, a detailed description of Nova Scotia Power's Emergency Operations Centre
activities during the event as well as the current Emergency Services Restoration Plan (ESRP) (Appendix 3.01)
— Letter from UARB to NSPI, dated September 3, 2014 (evidence in Matter Number M06406)
2014 ESRP Report considered filed as [Exhibit A-2 in Matter Number M06321]
Emergency Service Restoration Plan (ESRP) beginning on page 6 of Appendix 3.01 in M06321
References:
• Matter Number M07053 –
NSPI - Emergency Services Restoration Plan (ESRP) - 2015 Drill Report - Aug. 31, 2015
• Matter Number M06406 –
NSPI - Emergency Services Restoration Plan (ESRP) - 2014 Drill Report - Sep. 2, 2014
• Post-Tropical Storm Arthur - Review of NS Power's Storm Response eight items - August 2014 to May 2015
• Matter Number M06321 –
2014 NSUARB 163 - Decision: NSPI...Response to Storm Arthur - October 6, 2014
• Matter Number M06321 –
UARB Review: Widespread Power Outages - Storm Arthur: July 5, 2014
• Matter Number M05943 –
NSPI - 2013 ESRP - Level 3 & 4 Response - October 30, 2013
• Matter Number M05861 –
NSPI - Emergency Services Restoration Plan (ESRP) - 2013 Drill Report - August 30, 2013
• Matter Number M05155 –
NSPI - Revised ESRP - Level 3 & 4 Response and 2012 Drill Report - August 31, 2012
• Matter Number M04440 –
NSPI - Revised ESRP - Level 3 & 4 Response - Rev. 1.7 & 2011 Drill Report - Aug. 31, 2011
• Matter Number M02140 –
NSPI - Revised ESRP and 2009 Drill Report - August 31, 2009
• M06404
Berwick Electric Utility - request for Interim Rate - August 29, 2014
Reference:
• Matter Number M06404 – Berwick Electric Commission (Re), 2014 NSUARB 146 (CanLII) September 9, 2014
