Point Lepreau nuclear station down till at least September, costing utility extra $71M.

All of this has been costly for the utility, which now carries more than $5 billion in debt, and to ratepayers, who are being asked to swallow the biggest increases to their bills in their lifetimes.

New target is a ‘best-case scenario,’ said expert of 27 years, who added it ‘wouldn’t be appropriate’ to give a worst-case scenario.

Telegraph Journal, John Chilibeck, Jul 22, 2024

The prolonged shutdown at the Point Lepreau nuclear plant is raising alarm, including over how it could affect power bills for residents and businesses.

At a rate hearing in Fredericton on Monday, NB Power officials said the longer-than-expected shutdown would likely last until at least September and cost an extra $71 million. That includes $51 million for buying replacement power and about $20 million for added repair and equipment costs.

Craig Church, a chief modeler for the public utility, said it would cost on average an extra $900,000 for each day Lepreau is shuttered given it is one of the cheapest in NB Power’s fleet of generators to run.

It normally provides one-third of the province’s electricity.

“The loss will have to be made up by future ratepayers?” asked public intervenor Allain Chiasson at the hearing.

After a pregnant pause, Church replied yes.

NB Power is already seeking the biggest hike in electrical bills in a lifetime. If the New Brunswick Energy and Utilities Board, an independent regulator, grants its request, households will have to pay 9.8 per cent more this year and 9.8 per cent more next year.

According to NB Power’s evidence, the average electrically heated residential customer is billed about $3,087 annually. Adding 9.8 per cent to that bill would be another $303, or a total of $3,390.

Big industry is facing a similar percentage hike, whereas small and medium-sized businesses would face slightly smaller increases.

But the evidence before the board does not take into account the prolonged shutdown of Lepreau, meaning those extra costs will only come into play in future years.

NB Power undertook a 100-day outage of Lepreau, west of Saint John along the Fundy coast, from mid-April to mid-July to overhaul parts of the non-nuclear side of the plant at a cost of $124 million.

It was part of a planned shutdown to renew the plant and make sure it was robust enough for the winter, when it supplies baseload power for the province. According to the plan, the upgrades were supposed to be completed last week.

But on Monday, an expert on the NB Power panel, Jason Nouwens, the director of regulatory and external affairs at Lepreau, said on June 29, the team discovered a problem with the main generator on the non-nuclear side of the plant.

Specifically, one of 144 stator bars in a giant rotor had failed, but NB Power isn’t sure why. To get to the failed equipment, workers must painstakingly take apart the generator piece by piece, a job that will take at least two weeks.

Then, Nouwens said, the troubleshooting team that includes outside experts from the Canadian nuclear industry will try to figure out why the stator bar broke and possible remedies to prevent such a failure from happening again.

The expert, who has been working at Lepreau 27 years, said the plant coming back online in September was a best-case scenario. When asked by one of the interveners, Nouwens said it “wouldn’t be appropriate” to give a worst-case scenario.

Besides the extra costs caused by the delayed re-start, questions have been raised about possible spillover.

On Friday at the same hearings at the Fredericton Convention Centre, a lawyer working on behalf of J.D. Irving, Limited asked NB Power officials repeatedly how the longer-than-expected outage at the nuclear generator would affect other important power plants in the electrical system.

The lawyer Glenn Zacher had before him Phil Landry, NB Power’s executive director of project management offices, who answered questions about other power plants in the system.

The other plants are also supposed to undergo regular outages for maintenance and repairs to ensure they are safe and reliable.

But some of the maintenance work has already been delayed because those plants need to be running when Lepreau is down, otherwise people’s lights and air conditioners wouldn’t work.

“When is it too late to do undertake maintenance elsewhere?” asked Zacher. “It seems to be an important question to be answered.”

Landry, however, didn’t have any firm answers and struggled to give any specific timelines, given the uncertainty at Lepreau

Landry explained to the board that NB Power has been running the Belledune Generating Station – which belches out emissions from high-polluting coal – and Coleson Cove, which burns similarly polluting heavy oil, to replace the energy lost at Lepreau.

Belledune was supposed to undergo maintenance and repairs right now, at a cost of $17.1 million, but its 46-day outage has been indefinitely delayed………………………………….

Pushing out the maintenance to later in the year, closer to the winter months, is not an ideal scenario, Landry said, because they need to be running smoothly when people heat their homes and electrical demand is greatest.

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.

All of this has been costly for the utility, which now carries more than $5 billion in debt, and to ratepayers, who are being asked to swallow the biggest increases to their bills in their lifetimes.

NB Power CEO Lori Clark has promised Lepreau will no longer be neglected in the hopes of improving its performance. The utility has partnered with Ontario Power Generation, which has more expertise with nuclear plants, to ensure the next phase of the overhaul is done right.

A benchmarking study showed Lepreau is one of the worst performers out of 38 similar nuclear power plants in the world, consistently in the bottom quarter.

On Monday, Nouwens said NB Power was committed to improving the plant’s performance but cautioned it would take years of extra spending and repair work to get to the average performance of most nuclear plants. He pointed out that Lepreau has 115,000 different components, many of which have to be replaced or repaired with age.

Even by 2030, NB Power still thinks the plant will be mired in the basement, performance wise.

“In the past, the work hasn’t been comprehensive and intrusive enough to reach the performance we need,” the executive said. “We’ve under-invested, causing unreliability.” https://tj.news/new-brunswick/long-shutdown-of-nuclear-plant-would-have-knock-on-effect-warns-lawyer