POWER PLANT A CENTERPIECE OF CORRUPT GOVERNANCE

“The Provincial Government, through NLH (Hydro), has investigated the long-term options to address Holyrood emissions and decided to replace Holyrood generation with electricity from the Lower Churchill through a transmission link to the Island”.

Thus ran the 2007 energy plan of the Danny Williams Administration.

The die was cast for energy policy in NL. It meant Gull Island, Muskrat Falls or bust!

In that pursuit for more than a decade, deception, half-truths, outright lies and delusion all played a role in the sanction and construction of Muskrat Falls. Integral to the decision, was the disparagement of the Holyrood Thermal Generating Station (HTGS).

DISPELLING LIES AND HALF-TRUTHS ABOUT HOLYROOD POWER AND RAISING QUESTIONS ABOUT NEXT BLACK-OUT

 Guest Post by PlanetNL

PlanetNL43: Assessing the Holyrood Life Extension Report

Dispelling Lies and Half Truths

On March 31, NL Hydro provided the Public Utilities Board with a consultant report assessing the Holyrood plant with a focus on continuing to use it for potentially decades more as a backup facility in the event of a major loss of power to the Island grid.  The report considers just one of several options being considered in a major Reliability Assessment hearing before the PUB started in 2018 and seems as though it may never conclude.

The new report provides a favorable review of the suitability of the plant, maintained as a backup facility.  To what should be no one’s surprise, the plant is not in an awful and unreliable condition and way past its prime.  It just needs what should be considered ordinary upkeep for any industrial facility.

What we don’t know, however, is what exactly Hydro asked the consultant to study or if the report accurately describes the way the Holyrood plant must be used to provide an acceptable level of utility reliability.  It appears Hydro has guided their consultant to the wrong scenario. 

HYDRO SPINNING A TALE FROM BOTH SIDES OF ITS MOUTH

Written with copious notes from PlanetNL

Few members of the public seem concerned that Hydro is pursuing two rate hikes, the equivalent of 18.6%, to be applied over the next two years. In addition, Hydro wants the PUB to charge for Upper Churchill Recall power on the same basis as if it were generated by oil at Holyrood. Hydro wants a “deferral account” for “rate mitigation” which, for reasons described by PlanetNL, may turn out to be small dollars anyway.

Public quiet over the Hydro rate application suggests they may have already become numbed to it all. Having been deceived by their own government(s) since 2010, and having perhaps learned that fake news is not just an American concept, it is possible that, rather than get mad, they plan to get even. Installers of heat pumps have a bright future in this Province.

LOW RESERVOIRS POSE GREATEST OUTAGE RISK SINCE DARKNL

Guest Post Written By PlanetNL

PlanetNL5: Low Reservoirs Will Strain Thermal Generation This Winter

Uncle Gnarley suggested readers be given a respite from the gloomy Muskrat analysis series and instead asked PlanetNL to provide a critique on a different energy concern: the impact of low reservoir levels on this winter’s energy supply needs, as just revealed in a recent NL Hydro report.

The first concern is the cost of unplanned high fuel consumption at Holyrood and the standby combustion turbines over the winter and possibly well into 2018, a cost that NL Hydro is certain to want to recover through rate adjustments.  A considerable pre-Muskrat rate hike will result. 

THE LIBERTY REPORT: A GLARING OMISSION

Guest Post By David Vardy

The Liberty Group has just reported to the PUB dealing with reliability and supply issues prior to the connection with Muskrat Falls. In this report Liberty notes that NL Hydro has significantly reduced its load forecast over the past 18 months, leading to the conclusion that little if any additional capacity is needed. However, Liberty challenges the assessment of Hydro on its overly optimistic diagnosis of the operating condition of diesel and gas fired generation capacity on the Island and its readiness to provide reliable power up to the interconnection with Muskrat Falls. Liberty also poses the question as to whether we are ready in the event of a two year delay in completing the Muskrat Falls project to 2022-23.  

HOW RELIABLE WILL MUSKRAT POWER BE? PHIL HELWIG DEALS WITH THE QUESTION

Guest Post Written By Phil Helwig, P.Eng. (Retired)

Phil Helwig is a retired Engineer and Hydropower Consultant with over five decades of experience -  much of it right here in Newfoundland and Labrador. He has been a frequent writer to the Telegram on the North Spur stability problem as well as on other issues including power reliability and security.

This is Helwig's first contribution to the Uncle Gnarley Blog. It is a timely one, too. In recent weeks readers have seen posts regarding the Phase I Report of the Public Utilities Board (PUB). It dealt principally with the findings of the Liberty Group's investigation into the root causes of DARKNL. In late August Liberty filed its Report on Phase II of the PUB's mandate which includes consideration of security and reliability issues in the post-commissioning of Muskrat Falls. Phil Helwig has now distilled this Report and comments on the concerns of the Liberty Group for Uncle Gnarley readers. I am pleased to welcome him to the blogosphere and say that I am very grateful to him for lending his expertise in such an important public policy area. - Des Sullivan

SIOBHAN COADY: SO FAR, WE ARE NOT IMPRESSED

Natural Resources minister Siobhan Coady said she is very concerned about the continuing problems at the Holyrood generating plant.

The new Minister of Natural Resources is sounding a lot like the former Tory Minister, Derrick Dalley. And that’s not a tag synonymous with political success. 

The Minister told the CBC  that “the Holyrood plant breaks down too often. I'm concerned that we have an aging asset, that we have an old furnace in our house." The CBC reported the Minister stating “the only solution is to find another way to generate electricity.”

The Minister would only be right if you agreed all the facts should be ignored.