OPG Update John Murphy Executive Vice President -- Hydro Ontario Power Generation to the NYPA/OPG...
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Transcript of OPG Update John Murphy Executive Vice President -- Hydro Ontario Power Generation to the NYPA/OPG...
OPG Update
John Murphy Executive Vice President -- Hydro
Ontario Power Generationto the
NYPA/OPG Joint Works Committee
Sir Adam Beck GSSeptember 29, 2006
2
OPG Profile
Generated 108.5 TWh in 2005 53.9 TWh in first 6 months 2006
Produces approx. 70% of Ontario’s electricity generation Employs approx. 11,000 employees Operates:
Three nuclear stations (10 operating units, total) Five fossil-fuelled stations 64 hydroelectric stations
Capacity: 22,173 MW (at end of 2005)
Beck 2 GS Lambton GS Pickering B GS
3
OPG Generation Performance
Electricity ProductionTWh
45.0
32.6
30.9
108.5
42.3
35.7
27.0
105.0
2005 2004
Fossil
Hydro
Nuclear23.9
17.7
12.3
Q1-Q2 2006
53.9
4
OPG Financial Performance
2005 2004
500
450
400
350
300
250
200
150
100
50
Net Income ($millions)
$366$342
$42
Q1-Q2 2006
5
Hydroelectric Profile STATIONS PROFILE
NO. OF STATIONS 64
AVERAGE ENERGY 34.5 TWh
CAPACITY 6947 MW
AVERAGE AGE 71 yrs.
NO. OF GENERATING UNITS 240
SMALLEST / LARGEST UNIT 1 MW / 137 MW
NO. OF DAMS 232
PEOPLE / WORK CENTRES / LAND
PLANT GROUPS 5
WORK CENTRES 22
CONTROL CENTRES (includes ICD)
7
TOTAL STAFF ~938
OPERATORS ~100
NO OF RIVER SYSTEMS 26
HYDRO OWNED LAND ~17,000 hectares
LEASED LAND (flooded) ~800, 000 hectares
RH Saunders GS
Ragged Rapids GS
6
OPG’s Management of Existing Hydroelectric Assets
Independent benchmarking studies show plant performance and management systems are strong within the industry
OPG is investing an average of $95 million per year to maintain and enhance hydroelectric capability
OPG increased existing plant capacity by 400 MW since 1992. Further upgrades will add about another 150 MW by 2015
Production Cost per MWh(excluding GRC/Water Rentals)
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4N
o o
f O
PG
Pla
nts
Availability
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4
No
of
OP
G P
lan
ts
Graphs show number of OPG hydroelectric units in each quartile (Q) in their peer group.
O&M Cost per Net KW
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4
No
of
OP
G P
lan
ts
EUCG Benchmarking Results (2003) – Includes total of 764 units from North American utilities
7
Hydro’s Safety Performance
Hydro has surpassed 1 YEAR (> 1.63 million hours) without a lost time accident.
Other injury-free milestones: Niagara Plant Group – 2.8
years Evergreen Energy – 6.1 years Northwest Plant Group – 6.3
years Ottawa/St. Lawrence Plant
Group – 5.8 years
Some work centres have achieved > 11 years without a lost time injury.
OPG received the Electrical and Utilities Safety Award Gold Award in 2005
8
Keys to Safety Success
OPG and Hydro have established a high performance safety culture Safety more than just a top priority…it’s a core value Clear goals & objectives have been established Ultimate goal of “Zero Injuries” Visible commitment to safety…from board room to the shop floor Legislative compliance seen as the “minimum” standard Robust Safety Management Systems (based on OHSAS 18001)
ensure continuous improvement Engaged employees Strong “partnership” approach to health & safety management Effective Joint Health & Safety Committees
9
Hydroelectric Supply Initiatives: Niagara Tunnel
Sir Adam Beck GS No.1
Sir Adam Beck GS No.2
Sir Adam Beck Pump Generating Station
Outlet
Intake
10
Hydroelectric Supply Initiatives: Niagara Tunnel (cont’d)
OPG’s largest current capital project Diverts additional water to Beck
hydroelectric stations 500 cubic metres of water per
second 1.6 billion KWh average per year 10.4 km long
Construction work underway Expected completion: late 2009 90 year life-expectancy Project is on schedule and within
budget OPG is project manager Tunnel Boring began Sept 1
Niagara Tunnel Boring Machine, “Big Becky”
11
Hydroelectric Development Potential in Ontario
OPG will pursue economically viable hydroelectric developments Theoretical potential ~ 12,000 MW Practical/economic potential ~ 5,000 MW
Most potential sites are in Northern Ontario and are restricted by existing government commitments
Key issues: First Nations participation Transmission requirements Restrictions on Northern & Moose Rivers
development Environmental considerations
OPG works with govt. agencies & stakeholders to address existing development restrictions, transmission constraints and environmental considerations.
12
OPG’s Hydroelectric Development Projects in Northern Ontario
Lower Mattagami River Development (450 MW) Replace existing 75-year Smoky Falls station with
new larger station add a generating unit to each of three existing
stations
Lac Seul Development (12.5 MW) Construction underway --completion expected late ‘07
Upper Mattagami River Development (35MW) Replacing 3 existing old stations with 3 larger stations
-- construction expected to start in mid 2007
Hound Chute Redevelopment Replace existing 95-year old station with a new larger
(9 MW) station
Other Projects Little Jackfish River Development (132 MW) Mattagami Lake Control Dam (5 MW) with Mattagami
First Nation Long Lake Control Dam (5-6 MW) Abitibi River sites with Taykwa Tagamou Nation
Lac Seul Construction
Smoky Falls GS
13
First Nations Participation
Active involvement by First Nations in hydroelectric developments includes potential equity
participation.
Recent OPG Agreements signed with First Nations, including: Mattagami FN Taykwa Tagamou Nation Lac Seul First Nation Long Lake #58 First Nation
These agreements are critical to ongoing hydro-electrical operations and future hydroelectric development
Mattagami First Nation Council and OPG representatives
14
Timeline of OPG’s Existing Hydroelectric Projects
Beyond 2011
Niagara Tunnel Project
Lac Seul (12.5 MW)
Lower Mattagami (450 MW)
CONCEPT
Upper Mattagami (35 MW)
Hound Chute (9 MW)
Mattagami Lake Dam (5 MW)
CONCEPT
Long Lake Dam (5-6 MW)
Healey Falls(6 MW)
CONCEPT DEFINITION
Ranney Falls(6-8 MW)
CONCEPT
Lake Gibson (5 MW)
Other Control Dams (10 MW)
Beyond 2011
EXECUTION
201120102006 2007 2008 2009
EXECUTION
EXECUTION
DEFINITION
DEFINITION
EXECUTION
2008
EXECUTIONCONCEPT
2010 2011
DEFINITION
2006 2007 2009
EXECUTION
EXECUTION
EXECUTION
EXECUTION
DEFINITION
CONCEPT DEFINITION
DEFINITION
DEFINITION
CONCEPT
DEFINITION EXECUTION
EXECUTION
15
Timeline of OPG’s Greenfield Hydroelectric Projects
Beyond 2011
New Post Creek (25 MW)
Little Jackfish (130 MW)
Albany (Hat and Chard) (350-1,000 MW)
Big Falls (2-4 MW)
Maynard Falls (50 MW)
Other Moose River Basin Greenfield (200 MW)
Northern Rivers - Other Sites (200 MW)
Beyond 2011
CONCEPT DEFINITION EXECUTION
2006 2007 2008
2006 2007 2008 2009
2009 2010 2011
DEFINITION EXECUTION
CONCEPT DEFINITION EXECUTION
CONCEPT
CONCEPT
CONCEPT DEFINITION EXECUTION
2010 2011
CONCEPT DEFINITION EXECUTION
CONCEPT DEFINITION
16
Other OPG Supply Initiatives: Portlands Energy Centre
Toronto needs extra 500 MW by 2010 PEC is a 550 MW high efficiency
combined-cycle facility: co-generation capable fuelled by natural gas
Located in Toronto’s Portlands area OPG/TransCanada Energy Ltd. are
partnering to build PEC Environmental assessment and
approvals in place Accelerated Clean Energy Supply
contract signed with Ontario Power Authority
Construction underway First power in 2008; fully operational by
2009 capital cost: approx. $730 million
PEC: Artist’s Conception
Site Clearing Underway
17
Nuclear Refurbishment In June, Ont. Govt. Directed OPG to
Undertake feasibility studies re. refurbishment of units at Pickering B & Darlington sites
Begin Environmental Assessment (EA) on Pickering B refurbishment as part of this process
OPG is now assessing the business case for refurbishing Pickering B OPG’s Plant Life Extension Project
Division created in February 2006 On June 15, OPG submitted letter of intent
and project description to CNSC re. potential Pickering B refurbishment
EA for potential Pickering B refurbishment is proceeding as part of business case
Business case study to be reviewed by OPG management and Board in 2008
Solid business case must exist before any decision to refurbish Pickering B (and eventually Darlington) is made
Pickering B
18
New Nuclear
In June, Ont. Govt. also Directed OPG to: Begin federal approvals process for new
nuclear units at an existing facility• Includes an environmental assessment
OPG is developing plan of action to meet this directive
OPG believes its Darlington nuclear site best location for new build Experienced workforce Best-performing multi-unit CANDU station in
Canada in 2004 and 2005 Strong community support Room to build on site
On Sept. 22, OPG filed application for a Site Preparation Licence for new nuclear units at Darlington formally starts the federal approvals process
with the Canadian Nuclear Safety Commission
Darlington
Darlington Nuclear Generating Station
19
OPG’s Fossil-Fuelled Stations
Ontario Govt. responded in June to the Ontario Power Authority’s Supply Mix Report (Dec. 2005) The Govt. has asked OPA to determine
how best to replace coal-fired generation
in Ontario at the earliest possible time As a result…OPG’s coal-fired
stations to continue operating beyond 2009
OPG to meet all environmental regulations governing the operation of its coal-fired stations
OPG will make additional, prudent investments in environmental equipment and systems to further improve environmental performance of its coal-fired plants
Lambton GS
Nanticoke GS
20
Lakeview Stack Demolition
Lakeview Generating Station in Mississauga: in service:1961 capacity 1,140 MW lifetime output: 214 TWh 275 employees permanently shut down in April 2005
June 12, 2006: stack demolition Site now being cleared of
remaining equipment Potential for future high-efficiency
gas plant at the site
21
Earning the Trust and Confidence of our Stakeholders is Essential to our Operations
Kakabeka Falls GS, 100th Anniversary Open House
Ontario Premier Dalton McGuinty at TBM Launch
OPG receives Pickering 2005 Local Business Award
22
Summary
OPG Priorities Going Forward Continuing performance
improvement Contribute to Ontario’s electricity
supply through new power initiatives Focus on expanding and
developing hydroelectric capacity
Implement Ont. government directives on nuclear refurbishment and new build
Operate coal plants efficiently and in an environmentally responsible manner until they are closed