SaltWire E-Edition

Power supply questions arise

Holyrood Thermal Generating Station Unit 3 down for repairs

GLEN WHIFFEN glen.whiffen @thetelegram.com @Stjohnstelegram

Problems at the Holyrood Thermal Generating Station are sparking concerns about the aging facility being able to help meet the province’s power needs this winter given that the Muskrat Falls hydroelectric project has been delayed once again.

An Oct. 12 letter from Newfoundland and Labrador Hydro to the province’s Public Utilities Board (PUB) informs the PUB that Unit 3 at the station experienced boiler tube failure that will take an expected six to eight weeks to repair, at a cost of about $1.8 million.

According to Newfoundland and Labrador Hydro website, the Holyrood station, put into service in 1969, consists of three turbines (units) with a total generating capacity of 490 megawatts (MW).

“As a major source of our province’s electrical energy, the Holyrood plant generates between 15 per cent and 25 per cent of the island’s electricity every year

More specifically, it produces more than three billion kilowatt hours of electricity in a single year and, if needed, has the capacity to generate up to 40 per cent of the island’s annual energy needs. During peak production, the plant burns approximately 18,000 barrels of oil per day.”

In an Oct. 7 update to the PUB regarding Muskrat Falls, Newfoundland and Labrador Hydro stated that due to continued problems with the Labrador-island-link (LIL) software — and with General Electric (GE) Canada being unable to provide a detailed schedule for resolution of the “software bugs,”… “the overall project completion date of Nov. 26, 2021, is not achievable.”

News of the Muskrat Falls completion date being postponed is nothing new to the people of the province.

Premier Andrew Furey was asked about the latest delay during a briefing on mandatory vaccination policy earlier this week.

“I wish I had a vaccine for Muskrat Falls, I can tell you that,” he said. “We are still working through it. Obviously, when there are delays there are financial impacts, and we are working with (Newfoundland and Labrador Hydro president Jennifer Williams) to come up with how this materially impacts the bottom line of the project.

“As I understand it, they are not substantive delays, but, again, I would never pretend to give an exact date or an exact quantum of the delay itself because one thing is certain, that would seemingly be wrong. We are moving toward a date of completion and as soon as we have an update and the material impacts of that with respect to the fiscal bottom line, I’ll be sure to provide it.”

A statement from Newfoundland and Labrador Hydro on Friday, Oct. 22, said repairs are being completed on Unit 3 at the Holyrood station.

“The unit is expected to be returned to service in November,” the statement read. “We are currently actively planning for our winter season and are on track to have all units at Holyrood online, with all related winter readiness maintenance activities complete by Dec. 1.

“With respect to LIL, a revised schedule has not yet been received from GE Canada. The cost impacts of this delay, including LIL financing costs, will be assessed once the revised timeline is received from GE Canada. At that time, we will be able to better determine the impact.”

The Muskrat Falls project has been plagued with cost overruns, multiple delays and an overall pricetag that went from $6.2 billion to more than $13.1 billion.

The province’s consumer advocate, Dennis Browne, said the Muskrat Falls project continues to plague the ratepayers of the province and the province’s economy in general, and there appears to be no fix in sight.

He noted the situation at the Holyrood plant is one being monitored closely by the PUB.

“We now know there will be no consistency in the supply from Muskrat Falls this winter or for the foreseeable future,” Browne said. “Muskrat Falls continues to be an enduring burden for the ratepayers of the province, and many ratepayers have installed heat pumps and are insulating to do their part, knowing full well the circumstances in which we find ourselves.

“Holyrood is a backup and only used with any kind of consistency in the winter months. It’s not used yearround, as it’s not required. Once there is security of supply coming from Muskrat Falls, Holyrood and the requirement for it will not be as great. However, the board (of Newfoundland and Labrador Hydro) has yet to allow any kind of phasing out of the Holyrood generating station because of the uncertainties surrounding Muskrat Falls.

“Each winter has its particular problems. The oil that will be burned at Holyrood will be paid for by consumers at some point in the future, and ratepayers should be informed by Hydro if there is more fuel being burned at Holyrood this winter than is usually the case, and there should be information on the costing of the same.

“It is important that ratepayers have this information upfront so ratepayers can then take it upon themselves to use their heat in recognition that there may be a more expensive bill to follow.”

In other documents filed with the PUB, the potential risk of LIL failure is covered, and the Holyrood station is an important part of the backup plan.

NEWS

en-ca

2021-10-23T07:00:00.0000000Z

2021-10-23T07:00:00.0000000Z

https://saltwire.pressreader.com/article/281526524258563

SaltWire Network