Problem at Point Lepreau nuclear plant could prolong 3-month outage, drive up costs
N.B. Power working to address issue days before facility is due to come back online
An unexpected issue at New Brunswick's nuclear power plant could mean it will be offline longer than scheduled, potentially driving up costs for the province's Crown utility company.
N.B. Power says it has already completed planned maintenance work that was expected to take the Point Lepreau Nuclear Generating Station out of operation for 100 days.
But just as crews were bringing the plant back online, an "issue" was identified in the plant's main electrical generator, N.B. Power spokesperson Dominique Couture said in an email.
"The team, along with a number of industry equipment experts, are currently troubleshooting the problem. After investigation and troubleshooting is complete, we will have a better understanding of the impact on the outage schedule and budget," she said.
The planned outage began in April, and Wednesday marked day 95, Couture said.
She said N.B. Power has replaced key equipment during that time in order to make the station more reliable and improve how it performs.
But with the issue discovered in the main generator that feeds the electrical grid, the station outage "may extend beyond the initially planned 100 days," she said.
EUB hearings focus on Point Lepreau issues
The problem at Point Lepreau comes as the province's Energy and Utilities Board hears evidence this week about the plant's declining reliability.
N.B. Power wants to set aside millions of dollars to deal with unplanned Point Lepreau outages. The board now has to decide whether the utility should be allowed to increase power rates by almost 20 per cent to help the utility keep up with its debt payments and cover expenses.
At a hearing this week, an industry consultant testified that it's "reasonable" to budget for more unplanned outages at Lepreau in the coming years.
Marc Miller said recent costly refurbishments helped the nuclear reactor's reliability for a while, but it's been underperforming in the last few years. It's ranked as a poor performer compared to similar reactors, he said.
N.B. Power said it wants a contingency of $5.6 million this year and $7 million next year to make up for unplanned outages. It's forecasting 13 unplanned outage days this year and around 21 days next year.
Toronto
lawyer Glenn Zacher has been hired by J.D. Irving to represent the
company at N.B. Power's rate hearing. He asked a series of pointed
questions about whether N.B. Power has been inflating expected costs
related to the Point Lepreau Nuclear Generating Station this year and
next year. (Stikeman Elliott LLP)
Glenn Zacher, the lawyer representing J.D. Irving, previously suggested that N.B. Power is exaggerating Lepreau's unplanned outage days. This week, Zacher questioned Miller on his methodology and findings about the reactor's reliability.
Zacher asked how Miller could predict 21 days of outages when the five-year average for Lepreau was closer to 16 days.
Miller said the average number of unplanned outage days is just one element he considered, calling his estimate "a conservative and reasonable forecast based on past performance, not just the average performance, but the variability in that performance."
Previous delays in planned work
According to N.B. Power, this year's planned maintenance outage was expected to cost the company a total of $137 million.
Another planned outage is scheduled for next year and is anticipated to last up to 35 days and cost the utility $33 million.
Couture said any extension to the current outage would result in additional costs, depending on a number of factors, including replacement power costs and the repairs required.
If an extension is needed, it would mark the sixth planned outage at the station since 2018 to suffer delays and go over its budget.
Previous planned outages dragged on longer than expected in 2018, 2019, 2020 and 2022, and cost N.B. Power a combined $202 million more than expected, worsening its troubled financial situation.
Information about extra costs from this year's shutdown will be reflected in the company's financial results, Couture said.
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Reply to David Amos
I was wondering when folks were gonna be informed of this
Reply to David Amos
NEW BRUNSWICK ENERGY and UTILITIES BOARD
Matter 552 – NB Power 2024-2025 General Rate Application
IN THE MATTER OF an application by New Brunswick Power Corporation pursuant to subsection 103(1) of the Electricity Act, S.N.B. 2013, c. 7 for approval of the schedules of the rates for the 2024/25 fiscal year and for the 2025/26 fiscal year, capital project and other approvals.
Held at the Delta Fredericton, Fredericton, N.B. on June 24, 2024
Page 436
Q. - Thank you very much. Ms. Clark, could you introduce yourself to the Board, please?
MS. CLARK: Good morning. My name is Lori Clark. I’m the President and CEO of NB Power and I’m also the Chief Nuclear Officer for NB Power.
Q. - Thank you. And again, Ms. Clark, could you describe for the Board the extent of your involvement in the development of NB Power’s evidence?
Reply to David Amos
Wonder how much extra she gets paid for this role?
"Lori began her career with NB Power in 1990. Since that time, she has held positions of increasing responsibility including Controller, Managing Director of Finance, Executive Director of Regulatory Affairs and Vice President, Regulatory Affairs and Strategic Initiatives. Lori has extensive experience with the utility’s rate application process, appearing as a witness for NB Power at several rate hearings.
Lori holds a Bachelor of Business Administration from the University of New Brunswick and is a Chartered Professional Accountant. Lori has also studied Nuclear Reactor Technology at the Massachusetts Institute of Technology (MIT) and Leadership at the Wharton School of Business."
She seems a bit more qualified than either of you. Studying nuclear technology at MIT is nothing to balk at. Maybe you should have taken that huge internet to look up her qualifications before bashing her?
Reply to Alison Jackson
Writing a book on her management qualifications is nice (I also didn’t question her position as President and CEO).
Taking a course or two in nuclear reactor technology falls short, in my opinion, of what it takes to be in charge of a nuclear plant.
Perhaps you should consider reading a post before being so quick to accuse.
Would you like to argue me in court on Lori's behalf?
exactly i guess they don't like my long name .
From: LeBlanc, Dominic - député <dominic.leblanc@parl.gc.ca>
Date: Wed, Jul 10, 2024 at 1:29 PM
Subject: Automatic reply: Hey Higgy Why won't CBC talk about Point Lepreau's generator 'issue???
To: David Amos <david.raymond.amos333@gmail.com>
(English follows)
Bonjour,
Nous
accusons réception de votre courriel adressé à L’honorable Dominic
LeBlanc, cp, cr, député de Beauséjour et nous vous en remercions.
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Merci et bonne journée.
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Député de Beauséjour
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We acknowledge receipt and thank you for your email addressed to the Honourable Dominic LeBlanc, P.C., K.C., M.P. for Beauséjour.
Please note that we are currently receiving a high volume of correspondence. This may mean a delay in our responding to you.
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Member of Parliament for Beauséjour
---------- Original message ---------
Date: Wed, Jul 10, 2024 at 1:29 PM
Subject: Automatic reply: Hey Higgy Why won't CBC talk about Point Lepreau's generator 'issue???
To: David Amos <david.raymond.amos333@gmail.com>
Thank you for contacting the Honourable Rob Moore, P.C., M.P. office. We appreciate the time you took to get in touch with our office.
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Office of the Honourable Rob Moore, P.C., M.P.
Member of Parliament for Fundy Royal
From: Ministerial Correspondence Unit - Justice Canada <mcu@justice.gc.ca>
Date: Wed, Jul 10, 2024 at 1:29 PM
Subject: Automatic Reply
To: David Amos <david.raymond.amos333@gmail.com>
Thank you for writing to the Honourable Arif Virani, Minister of Justice and Attorney General of Canada.
Due to the volume of correspondence addressed to the Minister, please note that there may be a delay in processing your email. Rest assured that your message will be carefully reviewed.
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Merci d'avoir écrit à l'honorable Arif Virani, ministre de la Justice et procureur général du Canada.
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---------- Original message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Wed, Jul 10, 2024 at 1:28 PM
Subject: Hey Higgy Why won't CBC talk about Point Lepreau's generator 'issue???
To: blaine.higgs <blaine.higgs@gnb.ca>, dominic.leblanc <dominic.leblanc@parl.gc.ca>, rob.moore <rob.moore@parl.gc.ca>, mcu <mcu@justice.gc.ca>, pm <pm@pm.gc.ca>, Dominic.Cardy <Dominic.Cardy@gnb.ca>, Susan.Holt <Susan.Holt@gnb.ca>, kris.austin <kris.austin@gnb.ca>, Katie.Telford <Katie.Telford@pmo-cpm.gc.ca>, Clark, Lori <lclark@nbpower.com>, Robert. Jones <Robert.Jones@cbc.ca>, Ross.Wetmore <Ross.Wetmore@gnb.ca>, John.Williamson <John.Williamson@parl.gc.ca>, Mitton, Megan (LEG) <megan.mitton@gnb.ca>, Arseneau, Kevin (LEG) <kevin.a.arseneau@gnb.ca>, <AWaugh@postmedia.com>
EXCLUSIVE: Point Lepreau has a generator 'issue,' says NB Power
Utility doesn't know how long it will take to fix
There’s a problem with the generator at the Point Lepreau nuclear power plant, and NB Power says it doesn’t know how long it will take to fix, or how much it will cost.
The aging facility provides about one third of New Brunswick’s electricity, but has been plagued with problems in the last few years.
“We are currently on day 94 of the planned 100-day outage at the Point Lepreau Nuclear Generating Station,” NB Power spokesperson Dominique Couture said in an email to Brunswick News.
“After successfully completing planned maintenance work for the spring 2024 outage, an issue was identified in the generator, which is on the conventional, non-nuclear side of the station, as it was being returned to service.
“The team, along with a number of industry equipment experts, are currently troubleshooting the problem. After investigation and troubleshooting is complete, we will have a better understanding of the impact on the outage schedule and budget.
“It is important to note that there are no health or safety concerns related to this delay.
“During the outage, the team accomplished a great deal, including replacing key equipment to enhance the reliability of the Station, safely completing over 25,000 tasks to ensure improved performance moving forward.”
In an April 5 press release announcing the 100-day shutdown, NB Power said its “unwavering commitment to reliable generation serves as the cornerstone of our efforts to ensure energy security for New Brunswick.”
“These maintenance outages are vital to continue safe, reliable and low-emitting electricity generation that meets the needs of our customers. The timing for the maintenance is chosen to align with New Brunswick’s heating season needs,” the release read.
“Activities will include inspections and the installation of upgraded equipment on both the nuclear and conventional sides of the Station, benefiting its long-term reliability. Post-maintenance testing will precede a seamless return to full operation.”
At that time, Couture told Brunswick News that it would cost $86 million to replace the energy lost during the shutdown. And in terms of capital spending, Couture said, the job would set the utility back $137 million, spread out over two years, for a total of $223 million.
News of the shutdown possibly needing to be extended comes as the New Brunswick Energy and Utilities Board considers NB Power’s request for the highest rate hikes for its customers in generations. It is seeking increases of 23 per cent for residential and big industrial customers over the next two years, slightly less for small and medium-sized businesses.
NB Power refurbished the nuclear side of the plant in 2012, at a cost of $2.5 billion, a project that was over budget by $1 billion and took 37 months longer to complete than expected. But NB Power didn’t do similar work to other important parts of the plant, leading to frequent breakdowns.
While most Candu reactors around the world operate close to 90 per cent of the time, Lepreau’s average over the last five years has been 78 per cent. That ends up costing ratepayers tens of millions in replacement power and repairs.
– With files from John Chilibeck
More to come …
https://www.cbc.ca/news/canada/new-brunswick/eub-hearing-nb-power-rate-increase-1.7258066
N.B. Power seeking to split 19.4% rate increase evenly over 2 years
Energy and Utilities Board resumes power-rate hearings this week
N.B. Power is asking for permission to split its proposed 19.4 per cent rate increase equally over two years through a deferral account.
The utility says if the request isn't approved, customers would see an increase of 11.15 per cent in 2024-2025 and 5.59 per cent the year after.
The New Brunswick Energy and Utilities Board is holding hearings to determine whether N.B. Power should be allowed to raise its electricity rates by nearly 20 per cent over two years. It's also hearing testimony about how that rate increase should be rolled out.
The utility previously said it's raising rates to keep up with its $5.4 billion debt load. It's also spending billions on major infrastructure projects, including to refurbish the Mactaquac Dam.
On Monday, consultant John Todd said spreading the increase equally over two years maintains rate stability. He said the goal is partly to avoid "rate shock" that would be caused by an 11 per cent increase in one year.
Abigail Herrington, the lawyer representing the New Brunswick Energy and Utilities Board, asked Todd whether he would endorse a plan for a more gradual increase spread out over five years.
Todd said there is too much uncertainty to delay the increase that far in the future.
"The further out you push it, the more challenges could arise in the meantime, put it that way," he said. "You might get lucky but you might not."
No aid for low-income households
The board previously heard evidence about how electricity aid programs, like the rebates for people with low income in Ontario, are not something N.B. Power is allowed to provide in New Brunswick. The board heard that those restrictions do not apply to industrial customers.
N.B. Power previously outlined plans to spend $26.3 million over the next two years to help pulp-and-paper mills with their electricity costs.
Shelley Petit, speaking on behalf of the New Brunswick Coalition of Persons with Disabilities, said the increased rate could result in marginalized people getting disconnected because they're unable to pay their bill.
"I know that for my members, that $25 is going to mean disconnect. They can't afford their power bills now. They're going without food. They're going without medications," she said.
Todd said policies need to be implemented to address that issue but it isn't addressed in his report.
"There's a lot of material and practices elsewhere that you could build on, and this is something that's in collaboration discussion with New Brunswick Power, the government ... policy changes are always possible," he said.
N.B. Power was given permission by the utilities board to begin charging an increase of 9.25 per cent on April 1, but it will have to rebate a portion of what it has collected if the amount is found to be too high.
The utility previously said it needs to earn more than $1 billion in profit over five years to meet 2029 financial targets set by the Blaine Higgs government.
The hearings are expected to take 16 sitting days and they're scheduled to wrap up in August.
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