2012 Nalcor Energy Environmental Performance Report by Nalcor Energy

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2 0 1 2 E N V I RO N M E N TA L P E R FO R M A N C E R E P O RT

boundless.

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Environmental Policy & Guiding Principles All Nalcor Energy companies will help

of electricity, and the operation of its

sustain a diverse and healthy environment

facilities, and promote efficient use of

for present and future Newfoundlanders

electricity by stakeholders

COMPLY WITH LEGISLATION • Comply with all applicable environmental laws and regulations, and participate in the

and Labradorians by maintaining

• Maintain an adequate level of emergency

Canadian Electricity Association’s Sustainable

a high standard of environmental

preparedness in order to respond quickly

Electricity Program

responsibility and performance through the implementation of a comprehensive environmental management system.

and effectively to environmental emergencies

• Periodically report to the Board of Directors,

• Recover, reduce, reuse and recycle waste

Leadership Team, employees, government

materials whenever feasible.

agencies, and the general public on environmental performance, commitments

The following guiding principles set out the

IMPROVE CONTINUALLY

and activities

environmental responsibility, actions and

• Audit facilities to assess potential environmental

• Monitor compliance with environmental

decision-making of Nalcor Energy’s companies.

risks and to identify opportunities for continual

laws and regulations, and quantify predicted

improvement of environmental performance

environmental impacts of selected activities

PREVENTION OF POLLUTION • Implement reasonable actions for prevention of pollution of air, water and soil, and minimize the impact of any pollution that is accidental or unavoidable • Use the province’s natural resources in a wise and efficient manner

• Establish environmental objectives and targets, and monitor environmental performance • Integrate environmental considerations into decision-making processes at all levels • Empower employees to be responsible for the environmental aspects of their jobs and ensure that they have the skills and knowledge

• Use energy as efficiently as possible during

necessary to conduct their work in an

the generation, transmission, and distribution

environmentally-responsible manner.

on the environment • Respect the cultural heritage of the people of the province and strive to minimize the potential impact of company activities on heritage resources.

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About Nalcor Energy Nalcor Energy’s business includes the

needs and future growth. Hydro generates

development, generation, transmission

and delivers electricity in Newfoundland and

and sale of electricity; the exploration, development, production and sale of oil and gas; industrial fabrication; and energy marketing.

Labrador to utility, industrial, residential and commercial customers in over 200 communities across the province. Hydro has an installed generating capacity of 1608 megawatts (MW). Every year, Hydro

Focused on sustainable growth, the company

generates and transmits over 80 percent of the

is leading the development of the province’s

electrical energy consumed by Newfoundlanders

energy resources and has a corporate-wide

and Labradorians, 84 percent of which in 2012

framework that facilitates the prudent

was clean, hydroelectric generation. In 2012,

management of its assets while continuing

Hydro supplied over 6,964 gigawatt hours (GWh)

an unwavering focus on the safety of its

of energy for use by residential, commercial and

workers and the public.

industrial customers on the island and Labrador.

Nalcor currently has six lines of business:

Hydro’s power generating assets consist of nine

Newfoundland and Labrador Hydro (Hydro),

hydroelectric plants (939 MW), one oil-fired

Churchill Falls, Lower Churchill Project, Oil and

plant (490 MW), three gas turbines (127 MW)

Gas, Bull Arm Fabrication and Energy Marketing.

and 25 diesel plants (52 MW). In addition, Hydro has entered into a number of power

NEWFOUNDLAND AND LABRADOR HYDRO

purchase agreements with non-utility generators to supplement its own generation capacity

Hydro provides safe, reliable and cost-effective

including two wind developments on the island

electricity supply to meet current electricity

of Newfoundland (54 MW).

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BULL ARM FABRICATION

Hydro is focused on strengthening and ensuring

Churchill Falls focuses on safety excellence,

the integrity of its existing business of power

delivering reliable electricity to customers

generation, transmission and distribution.

and ensuring future generations benefit from

The Bull Arm Fabrication site is a world-class

The company’s goal of business excellence

this world-class resource through long-term

facility spanning more than 6,300 acres with

focuses on delivering value to its customers and

asset management.

capabilities for steel fabrication and concrete construction, outfitting installation, at-shore

executing its strategy with an uncompromising commitment to safety, environmental

OIL AND GAS

stewardship, operational excellence, its people and the communities where it operates.

Nalcor is a partner in three developments in the

hook-up and deep water commissioning. The site is leased to ExxonMobil Canada Properties for the Hebron project until 2017.

Newfoundland and Labrador offshore: the Hebron CHURCHILL FALLS

oil field, the White Rose Growth Project and the

ENERGY MARKETING

Hibernia Southern Extension. Oil and Gas is also Nalcor’s flagship operation in Churchill Falls is

executing a comprehensive exploration strategy

Nalcor is involved in energy marketing and

one of the largest underground hydroelectric

to accelerate the discovery of new resources in

other energy activities, including non-regulated

powerhouses in the world with a rated capacity

the offshore.

electricity generation, wind energy and research and development. Nalcor’s energy marketing

of 5,428 MW. The Churchill Falls generating station provides clean, renewable electricity

LOWER CHURCHILL PROJECT

to millions of consumers throughout North America. A significant portion of that electricity

The hydroelectric potential of Muskrat Falls

is sold to Hydro-Québec through a long-term

and Gull Island make the lower Churchill River

power purchase agreement with additional

the best undeveloped hydroelectric source in

sales to Hydro and Twin Falls Power Corporation

North America. Together, they have a combined

to meet the needs of residential, commercial

capacity of more than 3,000 MW. The Muskrat

and industrial customers on the Labrador

Falls Project was sanctioned in 2012 and is

Interconnected electricity system.

currently under construction.

portfolio will grow over the coming years and currently includes recall power not required by Hydro.

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Message from the CEO

At Nalcor Energy, we are dedicated to

Our 2012 Environmental Performance Report is

accountability and to ensure a healthy and

environmentally-sound practices and

an opportunity to share with our stakeholders

sustainable environment for Newfoundlanders

what we have been doing to manage responsibly

and Labradorians, now and in the future.

good stewardship of our natural resources. Over the last few years, while maintaining

our footprint within the many environments in which we work. This report describes our

I am proud of our work and grateful to our

the safe and reliable delivery of energy,

environmental commitments, accomplishments,

dedicated team of employees who help protect

we have continued to move forward to

partnerships and energy conservation activities.

our environment through their daily contributions

maintain or exceed our environmental performance, including our processes for environmental reporting.

and constant diligence. I encourage you to read In preparing this report, we make clear our

this yearâ&#x20AC;&#x2122;s report and I welcome your feedback.

ongoing commitment as an environment leader in Newfoundland and Labrador. In effect, it is our promise to seek improvement, to promote

Ed Martin PRESIDENT AND CEO

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2012 Highlights NEWFOUNDLAND AND LABRADOR HYDRO

CHURCHILL FALLS

The Ramea Wind-Hydrogen-Diesel Project,

Churchill Falls is guided environmentally by

operated by Hydro on behalf of Nalcor, continued

an ISO 14001 certified Environmental Management

making progress in 2012. The success of the

System, and this past year marked five

proposed project will put Hydro in a leading

consecutive years of completing 100 percent

position in the Canadian and North American

of its environmental targets and milestones.

electrical industries with respect to the ability

One significant accomplishment in 2012 was

to develop and implement a renewable energy

the successful completion of an action plan to

supply serving isolated and remote areas.

improve further the powerhouse spill response and prevention measures. This plan was a

During 2012, commissioning work was completed

continuation of a spill prevention and response

on the Energy Management System and the

measures improvement target that Churchill Falls

project moved into the operational phase.

has been working on for the past several years.

In 2013, Hydro will collect and analyze operational

However, it is a significant milestone because once

data. The collected data will be used to optimize

all of the actions within this plan are completed,

and improve the performance and efficiency of

all identified prevention and response efforts

the system. This operational data will play a very

will have been implemented.

important role in determining how the technology used in Ramea can be effectively used in other

BULL ARM FABRICATION

isolated electrical systems. In 2011, Bull Arm Fabrication signed a six-year lease agreement with ExxonMobil Canada Properties with respect to the use of the site for the construction and fabrication of the Hebron

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project. During 2012, the early works phase of

Muskrat Falls (824 MW) and Gull Island (2,250

Generating Project design and planning work.

the project began in preparation for the

MW) will have a combined capacity of over

In April 2012, Nalcor submitted the required

construction of the gravity-based structure

3,000 MW. The development of the Muskrat Falls

Environmental Impact Statement (EIS) for the

and the living quarters module.

Project will provide a clean, renewable source

Labrador-Island Transmission Link environmental

of electricity to meet the province’s growing

assessment. Nalcor’s submission of the EIS is an

Consistent with Nalcor’s corporate policy

energy demands. It will provide Newfoundland

important part of the environmental assessment

and guiding principles, an environmental

and Labrador homes and businesses with stable

process for the Labrador-Island Transmission

management framework is in place for the

electricity rates well into the future, and will

Link. Nalcor completed significant analysis of the

duration of the Hebron project. The framework

be a valuable power-producing asset for the

likely environmental effects of the transmission

documents and outlines the systems and

province for more than 100 years.

line and Strait of Belle Isle crossing, which was

processes, which are the primary means for

incorporated into the EIS prior to submitting

Nalcor to ensure the consistent environmental

Environmental Assessment is a regulatory review

it to the provincial and federal governments;

management of the Bull Arm Fabrication

and planning process administered by the federal

Nalcor anticipates a response in 2013.

site under the terms of the lease agreement.

and provincial governments for identifying the

The framework is another way Nalcor

potential environmental and socioeconomic

demonstrates its commitment to a high standard

effects of proposed development projects and to

of environmental responsibility and performance.

inform project planning and decision making.

LOWER CHURCHILL PROJECT

Nalcor received release from environmental assessment for the Lower Churchill Hydroelectric

The lower Churchill River is one of the most

Generation Project from the governments of

attractive, undeveloped hydroelectric sites in

Newfoundland and Labrador and Canada on

North America and is a key component of the

March 15, 2012. Nalcor is incorporating the terms

province’s energy warehouse. The Lower Churchill

and conditions outlined in the governments’

development’s two proposed installations at

responses into the Muskrat Falls Hydroelectric

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OIL AND GAS As part of an extensive environmental approval process for the Parsons Pond onshore exploration program on the province’s West Coast, Nalcor submitted an Environmental Preview Report (EPR) to the Minister of Environment and Conservation in early 2010 for the proposed Darcy exploratory well site. The Minister subsequently released the project, subject to conditions. These conditions included the submission of an Environmental Protection Plan (EPP), an Environmental Effects Monitoring Plan (EEM) and stipulations on when road construction could be performed.

manages a monitoring program where 25 caribou

project received an honourable mention in the 2013

in the local herd wear radio transmitter collars

Canada Clean50 Awards. The Wind-Hydrogen-Diesel

In 2011, the decommissioning of the access road

to allow monitoring of the caribou movement

Energy Project is one of the world’s first projects

to the Darcy well site was initiated and in 2012,

by satellite. In 2012, a report was prepared

to incorporate renewable wind and hydrogen

it was completed. Today, in consultation with the

focusing on identifying any disruption in caribou

energy sources to supplement the diesel

Department of Environment and Conservation,

movement in the area that may be attributed

generation requirements of an isolated island

Nalcor continues to follow through with all

to project activities.

community. Receiving the honourable mention

environmental commitments outlined in the EPP and EEM for the Darcy well site.

means national and international recognition of EXTERNAL RECOGNITION

the project’s significance to clean energy and sustainable development.

To fulfill its commitments in the EPP and EEM,

In 2012, Nalcor continued to receive external

Nalcor committed to the analysis of caribou

recognition for its commitment to the

movement data. The provincial wildlife division

environment. The Ramea Wind-Hydrogen-Diesel

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Our People MANAGEMENT REPRESENTATIVES COMMITTEE

The MR Committee keeps a global watch over the progress and development of Environmental

Nalcor Energy’s Environmental Management

Management Programs (EMP) within each MA

System (EMS) allows for the management of its

to ensure the overall approach and philosophy

environmental affairs and is applied to activities,

of Nalcor’s commitment to environmental

products and services across Nalcor companies

responsibility and responsiveness is upheld every

that can have an impact on the environment.

day. The successful completion of the registration

The Management Representatives (MR)

process for ISO 14001 across the company was

Committee oversees the operational management

reflective of the efforts of Nalcor’s MR Committee.

of the EMS. Each of the Management Areas (MA) within the EMS is represented on the committee.

In 2012, the membership of the MR Committee included Frank Ricketts, Corporate MA; Rob Bartlett,

The MR Committee meets on a regular basis

Hydro Plant Operations MA; Cindy Michelin, Churchill

and provides:

Falls MA; Rod Healey, Services MA; Michael Manuel,

• an open exchange of information,

Holyrood Generating Station MA; and Paul Smith,

approaches and ideas related to EMS

Transmission and Rural Operations MA.

development and implementation • a consistent application of company EMS procedures • a single point of communication between the Leadership Team and Management in each MA

RECOGNIZING OUR PEOPLE PRESIDENT’S AWARD — ENVIRONMENT: HUGHIE IRELAND The President’s Awards are Nalcor’s most

• a forum for training and mentoring newly

prestigious form of recognition. Recipients are

appointed Management Representatives.

considered role models who live the corporate

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goals on a day-to-day basis and take personal

presented to an individual in Churchill Falls

encouraging them to participate in environmental

action to improve Nalcor’s performance. Hughie

in recognition of his or her commitment

conservation activities.

Ireland, Manager Long-term Asset Planning

to the environment and demonstration of

at Hydro’s Bishop’s Falls office, was the 2012

environmental leadership. The recipient of the

recipient of the President’s Award — Environment.

Environmental Stewardship Award for 2012 was

Staff highlighted Hughie’s commitment to

Jodean Hancock, Labourer. Jodean exhibits her

enhancing the role of the Transmission and Rural

commitment to the conservation and protection

Operation (TRO) with respect to the environment.

of the environment on a daily basis, promoting environmental protection through leadership

2012 CHURCHILL FALLS ENVIRONMENTAL AWARD: JODEAN HANCOCK

and example. She composts, plants greenery and reuses household items for toys. Jodean makes an effort to reduce waste by conserving

Churchill Falls holds Nalcor’s commitment to

household supplies and recycling. She promotes

the environment in high esteem. Since 2010,

environmental protection to children by teaching

Jodean Hancock: 2012 recipient of the

the Environmental Stewardship Award is

and practicing waste reduction techniques and

Environmental Stewardship Award

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Environmental Management Systems Nalcor Energy has chosen the ISO 14001

The six designated MAs within Nalcor manage

certified EMS to drive the continual improvement

their environmental aspects through the EMS

of the company’s environmental performance.

(Figure 1). Each EMS is certified and registered

An EMS provides a management framework for

by an independent Registrar, Quality Management

an organization’s environmental responsibilities

Institute (QMI - SAI Global). More information

and is an integral component of the organization’s

can be found at www.qmi-saiglobal.com.

business operations. The EMS governs the

Nalcor has undertaken a comprehensive and

environmental activities in Nalcor’s electricity

phased approach to environmental management

businesses — Hydro and Churchill Falls. Nalcor is

within the company and has registered and

committed to the use of the EMS for its other

maintained EMSs at its six existing MAs over

lines of business.

the period since 1999.

CORPORATE

Input Ouput

Senior Leadership Team

MR Committee

OPERATIONAL MANAGEMENT AREAS Services Service input to Operational Management Areas

Thermal Plant Operations

Hydro Generation

Figure 1: Structure of Nalcor Energy’s Environmental Management System

Churchill Falls

TRO Operations

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While the company made progress in reducing

For example, in 2012, environmental programs

development and maintenance of the overall EMS

its impact on the environment in 2012, Nalcor

focused on preparing and executing a workshop

for Nalcor and to identify environmental aspects

will continue to develop long-term plans to

and training on environmental requirements and

appropriate to the Leadership Team’s activities

achieve its environmental targets and corporate

protection measures for transmission line access

and responsibilities. Although the operational

environmental goal — to be an environmental

trail travel, work in wetlands and project planning

and services EMS are managed independently,

leader. Throughout the year, Nalcor continued

and implementation with personnel from Hydro’s

a common and consistent Corporate Environmental

tracking and reporting EMS performance to

TRO and Engineering Divisions. The workshop and

Policy and Guiding Principles set the standard for

the Leadership Team and achieved 97 percent

training focused on further refining the company’s

all Nalcor companies. Periodic reviews of activities

completion of EMS targets and milestones.

planning and control processes related to work on

and issues are conducted to ensure consistency

transmission lines and work involving major civil

with corporate standards.

EMS programs developed under the EMS

projects, to ensure that adequate notice is given to

cover a broad range of areas:

identify and address environmental considerations

• Alternative energy and conservation

and sensitivities and to ensure permitting and approvals processes and timelines are adhered to.

• Emissions control; waste management and recycling • Spill prevention and management

Additional accomplishments resulting from the EMP in each of the MAs in 2012 are detailed in this section.

• Environmental site assessment and remediation • Species and habitat diversity.

CORPORATE MANAGEMENT AREA

These systems include specific performance

The Corporate MA consists of the Leadership Team

measures and a commitment to continual

and a committee of managers with responsibilities

improvement.

for facilities and operations with environmental aspects. The goal of this MA is to coordinate the

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TO BE AN ENVIRONMENTAL LEADER

From these objectives, targets were set in each line of business in 2012, including increasing the

Nalcor has developed a corporate strategy that

number of Leadership Team approved EMS targets

sets the stage for performance and guides the

and objectives accomplished across the company,

direction of all Nalcor companies. This strategy

increasing internal and external energy savings,

involved developing goals, objectives and targets

reducing emissions per unit of energy delivered at

for the company.

the Holyrood Generating Station and completing EMS implementation and compliance audit closure

The following objectives are reviewed

plans for the new lines of business.

annually and are established to support Nalcor’s environmental goal — to be an

SERVICES MANAGEMENT AREA

environmental leader: Environmental aspects are an element of a • Reduce emissions per unit of energy delivered

department’s activities, products or services

by achieving not more than 10 percent variance

that can interact with the environment.

from ideal production schedule at the Holyrood

Currently, there are five departments within the

Generating Station through 2015

Services MA that have identified environmental

• Maintain the number of environmental

aspects. These groups include Systems Operations,

leadership targets accomplished at or greater

Corporate Relations, Project Execution and

than 95 percent each year for the next 5 years

Technical Services, Supply Chain Management and Environmental Services.

• Have all current non-regulated generating entities and lines of business under an EMS

In 2012, the Services MA managed 13

fully compliant with the ISO 14001 standard

environmental management programs.

by 2014.

Some results included:

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• Controlled release of over 149 million cubic

• Continuing the optimization of exploits

• Improved recycling by implementing

metres of water from reservoirs, as part of

generation through detailed vista modeling.

a non-rechargeable battery recycling program

long-term agreements with the Department of Fisheries and Oceans for fish and fish

OPERATIONAL MANAGEMENT AREAS

habitat protection THERMAL • Completing a feasibility study of hydraulic potential of coastal Labrador • Development of short-term demand management programs for rural isolated systems

The Holyrood Generating Station is a 490 MW plant

• Reduced fuel consumption through completion of the second phase of work to improve synchronous condenser operation of Unit 3 to minimize switch from generation to voltage support.

located in Holyrood, Conception Bay. The Holyrood plant’s EMS was initially registered in January 1999

HYDRO OPERATIONS

and staff successfully completed a surveillance audit in January 2012.

The Bay d’Espoir MA consists of eight generating stations on the island with

• Preparing and executing a workshop and training on environmental requirements

In 2012, the Holyrood Generating Station made

a total installed capacity of 939 MW. In 2012,

and protection measures for transmission

progress on 17 environmental targets, resulting in:

some of the Environmental Management

line access trail travel, work in wetlands and project planning and implementation • Identification of internal energy-saving opportunities at selected sites

• Improved guide curve performance for plant efficiency at dispatch load • Improved energy efficiency through lighting and heating improvements

Program results included: • Assessment of opportunities for the implementation of energy efficiency and conservation applications such as replacing older type heaters and lights with more energy

• Improving load and implementing wind

• Improved marine terminal operations and spill

efficiency type in numerous locations throughout

generation forecasting, along with the

mitigation with a completed marine terminal

Hydro Generation facilities and prepared a cost

possibility of introducing additional wind

guidelines document

proposal for executing an energy audit

• Reduced environmental risk by elimination

• Review of emergency response spill equipment

of a decommissioned lubrication system

and additional purchasing of equipment

on the interconnected system • Developing EMSs for new lines of business

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• Development of an EMS for the Star Lake

their understanding and responsibilities

generating facility and integration into the

of spill and environmental SWOP reporting

Hydro Generation EMS

and investigation processes

• Fuel storage tank improvements

• Implementation of a five-year plan for

• Review of water spilling procedures and identification of measures to assess and mitigate environmental risk and/or impact.

improvements to prevent potential environmental impacts from fuel storage systems with the installation of one new fuel storage tank and one used oil tank

CHURCHILL FALLS The Churchill Falls Hydroelectric Generating Station has an installed capacity of 5,428 MW. Associated with this development is approximately 1,200 km of high-voltage transmission lines, an airport and the Town of Churchill Falls. Environmental aspects of these facilities are included in the EMS. The environmental aspects of the former Twin

• Continued testing of electrical equipment

Falls Hydroelectric Generating Station are also

potentially containing Polychlorinated Biphenyls

managed through the Churchill Falls EMS. The EMS

The TRO division operates three gas turbines, three

(PCBs) and the implementation of a 15-year

was registered in 2000 and successfully completed

interconnected diesel generating stations, three

replacement plan for sealed equipment

a re-registration audit in 2012.

TRANSMISSION AND RURAL OPERATIONS

wind turbines, one mini-hydro plant and 22 isolated diesel generating and distribution systems. Hydro also maintains 54 high-voltage terminal stations, 34 lower-voltage interconnected distribution

• Conducted trials of new products or new rates with existing products with the potential to reduce herbicide use; trials included alternative herbicide for weed control program (Arsenal

Environmental targets and programs were developed at Churchill Falls as part of the EMS. Some results of 2012 targets were:

substations, 3,743 km of interconnected high-voltage

herbicide) and the reduction of the standard

• 100 percent completion of 31 environmental

transmission lines and 3,427 km of distribution lines.

rate of Roundup WeatherMAX from 1.34 percent

management system targets

to one percent on 10 sites In 2012, significant EMS programs completed in TRO included:

• Internal energy efficiency program improvements due to the installation of T12

• Implemented idle reduction campaign • Completed River Spill Response training

• Continued focus on spill/leak reduction

light fixtures and the installation of automated

• Reviewed other utility spill control practices,

by replacing 110 distribution transformers

temperature set back controls on ceiling

and developed a plan to improve spill

and providing employee training to enhance

mounted electric fan heaters at three locations.

prevention and response measures

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• Performed extra work on unit number

Nalcor’s Environmental Policy and Guiding

EMS in place suitable for an independent audit

two turbine to reduce oil loss

Principles, as well as developed procedures to

review in 2014.

• Continuation of a multi-year program for reduction of oil leaks from switchyard transformers by repairing apparent leaks on three transformers

set the foundation for ongoing development of its EMS. In 2013, Oil and Gas will continue to

2012 also proved to be a successful year for

explore its options for EMS structure that is suitable

Exploits Generation with the completion of all

for its business needs.

environmental targets identified in the gap

• Developed a Halocarbon Management Plan

closure plan. Exploits continues to develop and Bull Arm Fabrication continued to build upon its

implement EMS procedures ensuring continual

Environmental Management Framework (EMF)

growth and development of its EMS. Star Lake

ensuring a more cohesive management process

Hydroelectric Generating Station was successfully

between Bull Arm Fabrication and ExxonMobile

incorporated into the existing EMS for Hydro

Canada Properties. In 2012, Environment Services

Generation. In 2013, implementation work will

developed and implemented pertinent internal

continue on the EMS to ensure it is ready for

Nalcor has decided on a staged approach to

procedures to ensure consistency between the

an independent review.

developing and implementing an EMS across the

sublease and EMF, as well as safeguarding a

new lines of business. The new operating facilities

high level of Environmental Management at

and lines of business for which EMS requirements

the Bull Arm site.

• Continuation of a multi-year contaminated lands program. ENVIRONMENTAL MANAGEMENT SYSTEMS FOR THE NEW LINES OF BUSINESS

are being developed include: Oil and Gas; Bull Arm Fabrication; Menihek Hydroelectric Generating

Menihek Hydroelectric Generation Station made

Station; Exploits Generation; and Star Lake

significant steps towards the implementation of its

Hydroelectric Generating Station.

ISO 14001:2004 consistent EMS. All key elements were developed to address the requirements of

In 2012, Oil and Gas made great progress with

the standard including successful testing of the

developing and implementing elements of its EMS.

Environmental Emergency Response Plan. In 2013,

During the past year, Oil and Gas has reviewed

Menihek will continue to work towards having an

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Emissions WASTEWATER CONTROL

island’s electricity continues to come from fossil-

Holyrood plant in 2012 resulted in a 2.5 percent

fuel fired generation at the Holyrood Generating

decrease in carbon dioxide (CO2) emissions. The

The Holyrood Generating Station’s wastewater

Station each year. Hydro also operates 25 diesel

decrease in CO2 emissions is directly attributed to

treatment plant treats the wastewater resulting

plants across the province and three wind turbines

less fuel being consumed. The sulfur dioxide (SO2)

from the combustion of fuel and run-off from

in the isolated community of Ramea.

emissions from the plant in 2012 were equal to

an on-site solid waste landfill. Components of

those experienced in 2011.

the wastewater are measured and compared to

The company continues to use alternative sources

regulatory limits. Once all aspects of the wastewater

of energy supplementing the province’s energy

Overall, energy received into the system increased

meet provincial regulatory requirements, it is

supply and to reduce emissions from burning

by nearly seven percent in 2012, mainly because

released in the plant’s cooling water discharge and

fossil fuels. In 2012, Hydro purchased 195,042

of the increased production from Exploits and

into Conception Bay. In 2012, three million litres of

megawatt hours of clean energy from the island’s

Star Lake Generating facilities. This increase was

wastewater were treated and discharged, which

two wind farm projects. That is enough green

partially offset by decreased generation from the

was similar to the 3.07 million litres of wastewater

energy to power more than 13,210 homes. This

wind projects, Rattle Brook and the Corner Brook

treated and discharged in 2011.

is equal to burning 310,000 barrels of oil at the

Pulp and Paper Co-generation facility. Overall

Holyrood plant and is a reduction of more than

energy supply requirements increased by nearly

160,000 tonnes of greenhouse gas emissions.

two percent in 2012, which was primarily due

AIR QUALITY MANAGEMENT

to an increase in industrial load in addition to Hydro has a mandate to meet the province’s

Overall, thermal production at the Holyrood

slight increases in utility load. Hydro’s hydroelectric

growing electricity needs. In 2012, on the Island

Generating Station decreased in 2012 by 3.4

production on the island was up by nearly

Interconnected System, approximately 83 percent

percent from 2011, primarily due to decreased

two percent from 2011, primarily due to the

of this electricity was generated from clean

requirements of the plant for Avalon transmission

reduced Holyrood requirements and increased

hydroelectric power. However, in order to meet

support. The Holyrood plant produced a little

demand requirements.

the total customer demand requirements and to

more than 13 percent of the energy supplied by

secure the transmission supply into the Avalon

Hydro in 2012, down slightly from 14 percent in

Total emissions for CO2, nitrogen oxides (NOx)

Peninsula, between 10 and 25 percent of the

2011. The decreased energy production from the

and SO2 for the Holyrood Generating Station,

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ANNUAL CO2 EMISSIONS

gas turbine facilities and isolated diesel generating stations are calculated using formulas approved

6,000

by the Department of Environment and

2,000 1,800

Conservation. Nalcorâ&#x20AC;&#x2122;s overall air emissions are 5,000

of CO2, NOx and SO2 for the Labrador Isolated Diesel System, Labrador Interconnected System and the Island Isolated Diesel System, were calculated to be approximately 42.4, 1.24 and 0.05 kilotonnes respectively. Emissions for the Island Interconnected System, including the Holyrood Generating Station, interconnected gas turbines and the standby diesel plants are outlined in the following graphs:

1,600 1,400

4,000

1,200 1,000

3,000

800 2,000

600 400

1,000

200 0

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Hydraulic Production

Island Interconnected Emissions

Emissions (kilotonnes)

at the Holyrood Generating Station. Emissions

Hydraulic Production (GWh)

dominated by those resulting from production

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

ANNUAL NOX EMISSIONS

ANNUAL SO2 EMISSIONS 5.0

6,000

4.5 5,000

3.0 2.5

3,000

2.0 2,000

1.5 1.0

1,000

4,000 15 3,000 10 2,000 5

1,000

05 0

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Hydraulic Production

Island Interconnected Emissions

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Hydraulic Production

Island Interconnected Emissions

Emissions (kilotonnes)

3.5

4,000

Hydraulic Production (GWh)

4.0 Emissions (kilotonnes)

Hydraulic Production (GWh)

5,000

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

COME BY CHANCE CAPACITOR BANK INSTALLATION In 2012, Hydro completed construction of four

The capacitor banks were commissioned in

Using Hydro’s approved fuel conversion factor

230 kilovolt (kV), 38.35 megavolt-amps reactive

two stages, with two banks placed in service in

of 630 kilowatt-hour/barrel (kWh/bbl) and

(MVAR) switched shunt capacitor banks at the

December 2011 and the remaining two banks in

the average Holyrood Generating Station’s fuel

Come By Chance Terminal Station to reduce

February 2012. It is estimated that the capacitor

consumption prices in 2012 ($115/bbl), this

the amount of minimum energy production

banks resulted in nearly 2,200 hours of reduced

represents over 190,000 barrels of avoided fuel

from the Holyrood Generating Station needed

unit operation at the Holyrood Generating Station

usage at a savings of nearly $22 million. Using

to maintain acceptable voltages on the

2012. In a further analysis, it was determined that

the last five-year’s emissions intensity rate for

Avalon Peninsula during system contingencies.

these reduced minimum operating requirements

the Holyrood Generating Station (0.819 kg/kWh),

The capacitor bank, in turn, improves the use

will result in nearly 120 GWh of avoided spill

the use of the capacitor banks has resulted in

of the hydroelectric energy sources on the Island

from Hydro’s reservoirs to the end of the current

a 100,000 tonne reduction in greenhouse gas

Interconnected System.

forecast period (December 2016).

emissions since commissioning.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Waste Management POLYCHLORINATED BIPHENYLS (PCBs)

service transformers. In 2012, Hydro sampled

information was added to the database to ensure

50 units, none of which contained greater than

that all equipment 50 mg/kg and greater PCBs

PCBs are the most significant waste management

50 mg/kg of PCB. This equipment will be removed

is removed from service by 2025.

issue in the electric utility industry. This substance

from service prior to the regulated 2025 deadline.

was commonly used in electrical equipment prior to the late 1970s, when PCB production was banned. The effect of this ban on Hydro and many other utilities was two-fold. The amount of PCB in-service declined as new PCB-free equipment was installed, and inventories of PCB-contaminated wastes increased as older equipment was retired. Hydro had a PCB management program in

Churchill Falls continued with its annual PCB New federal PCB regulations brought into effect in

training program, with minor updates, for all

2008 focused on removal of higher concentration

personnel handling and transporting PCBs.

PCB equipment from service by planned dates

The program ensures that all personnel

and more restrictive handling of PCB waste.

are aware of the requirements under the

The limits for identifying high-concentration PCBs

Transportation of Dangerous Goods (TDG)

were also lowered to any equipment having a PCB

Regulations, PCB Regulations, Storage of PCB

concentration greater than 500 mg/kg.

Wastes Regulations, Certificate of Approval for the PCB Storage Building, Equivalency Certificate,

place since the early 1980s to reduce the risks

and local EMS Standard Operating Procedures.

associated with in-service equipment containing

In 2012, Hydro’s TRO Division continued to

PCBs. The earlier focus of this program was to

follow its PCB phase-out plan that was submitted

remove all items with a high-concentration

to Environment Canada in 2010 under a Section

In 2011, 21 surge capacitors, removed from the

(greater than 10,000 milligrams per kilogram

33(2) extension permit. Each year, there are

Bay d’Espoir Hydroelectric Generating Station

(mg/kg)) PCB equipment from service and to

slight revisions to the plan as work priorities

that had been granted an extension permit

reduce the concentration of PCBs in larger volume

change. In 2012, TRO discovered five pieces of

by Environment Canada, were transported

oil filled equipment to less than 50 mg/kg.

sealed equipment, under the extension permit,

to a certified PCB destruction facility in 2012

that were removed and had a PCB concentration

and destroyed.

In 2012, Hydro continued with a program to test

of 500 mg/kg or greater.

all other oil-filled equipment that were not sealed

Nalcor submitted its fourth set of online PCB

such as reclosers, voltage regulators, tap changer

Churchill Falls continued to refine its PCB phase-

reports under the PCB Regulations for the year

compartments, oil circuit breakers and station

out program in 2012. Additional equipment and

2012 for the Bishop’s Falls PCB Waste Disposal

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Facility, the Churchill Falls PCB Facility and the Bay d’Espoir Hydroelectric Generating Station.

PCB Material in Storage, Sent for Disposal and Destroyed (Bishop’s Falls PCB Waste Storage Facility)

2012 Tonnes

Reports were submitted under Sections 33(2) and 33(3) of the PCB Regulations.

Total inventory of PCB material (50-500mg/kg) in storage

1.7

Total inventory of PCB material (>500mg/kg) in storage

storage facility at its Bishop’s Falls area office

Total inventory of PCB material (50-500mg/kg) sent for disposal

and inventory storage yard. See Table 1 for

Total inventory of PCB material (>500mg/kg) sent for disposal

1.5

Total amount of PCB material (50-500mg/kg) destroyed

0.9

Total amount of PCB material (>500mg/kg) destroyed

0.75

Hydro operates one approved PCB waste

PCB material in storage, sent for disposal and destroyed as of December 31, 2012 at the Bishop’s Falls PCB Waste Storage Facility. Churchill Falls operates one approved PCB waste

Table 1: PCB material in storage, sent for disposal and destroyed as of December 31, 2012 at Bishop’s Falls.

storage facility. Table 2 provides an inventory of PCB material in storage, sent for disposal and destroyed as of December 31, 2012.

PCB Material in Storage, Sent for Disposal and Destroyed (Churchill Falls PCB Waste Storage Facility)

2012 Tonnes

Total inventory of PCB material (50-500mg/kg) in storage

Total inventory of PCB material (>500mg/kg) in storage

Total inventory of PCB material (50-500mg/kg) sent for disposal Total inventory of PCB material (>500mg/kg) sent for disposal

1.8 0

Total amount of PCB material (50-500mg/kg) destroyed

1.2

Total amount of PCB material (>500mg/kg) destroyed

0.1

Table 2: PCB material in storage, sent for disposal and destroyed as of December 31, 2012 at Churchill Falls.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

REUSE AND RECYCLING INITIATIVES

Location

Used Oil Type

Volume (litres)

Diesel Plants

lubricating oil

33,342

Hydroelectric Generating Stations

lubricating oil

12,918

HTGS

lubricating oil

19,305

generated and new oil purchased. Used oil is

HTGS

oil/water mixture

63,515

stored in either 205 litre drums or storage tanks

Bishopâ&#x20AC;&#x2122;s Falls

insulating oil

102,873

for either recycling or reuse. Table 3 summarizes

Churchill Falls

lubricating and insulating oil

4,175

used oil information by location, used oil type

Churchill Falls

oil/water mixture

19,100

Exploits Generation

lubricating oil

3,900

Menihek Generating Station

lubricating oil

1,230

Menihek Generating Station

Insulating oil

2,050

USED OIL Nalcor has a waste oil management system for handling and disposing of used oil. On an annual basis, facilities record the amounts of used oil

and collected by a certified waste oil handler

and volume collected.

Table 3: Volumes and types of used oil collected by location.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

At Hydroâ&#x20AC;&#x2122;s central maintenance facility in Bishopâ&#x20AC;&#x2122;s Falls, insulating oil from transformers brought in for servicing, is collected in oil storage tanks and processed for recycling if suitable. If the quality of the oil is not suitable for recycling, the oil is collected by a certified waste handler for proper disposal. In 2012, 101,710 litres of insulating oil taken from transformers was recycled. Only 1,163 litres was disposed of as waste, which represents 99 percent recycling of insulating oil at the central maintenance facility in 2012. WOOD POLE LINE MANAGEMENT PROGRAM

and life-extension program. In 2012, Hydro

2012 was 241 tonnes. This amount is up slightly

treated 1,717 poles with boron rods to provide

from the amount of ash disposed in 2011.

As part of its transmission line network, Hydro

extra protection and to extend the in-service life

manages approximately 26,000 poles of varying

expectancy of new poles. Since the start of the

age. Wooden poles have an in-service lifespan

program, about 22,362 poles have been treated.

of 50 years and with proper management, maintenance and refurbishment the life can be extended by 10 years or more. Core samples

SCRAP METAL AND BATTERY RECYCLING AND REUSE During 2012, Hydro decommissioned 298 distribution

FUEL ASH DISPOSAL AT HOLYROOD GENERATING STATION

taken from some poles in 1998 indicated that the

transformers and two voltage regulators, all of which contained non-PCB oil. The transformers were drained and sold to a transformer manufacturer

preservative retention level was not adequate.

During 2012, all fuel ash produced at the Holyrood

for reuse, while the voltage regulators were sold

As a result, Hydro initiated a Wood Pole Line

Generating Station was disposed of in an on-site,

to a local scrap metal dealer. There were also 179

Management Program in 2003 and it is expected

controlled, solid waste landfill. The amount of total

terminal station batteries taken out of service and

to continue as a long-term asset management

ash produced and disposed of at the landfill in

sold to a scrap dealer for recycling.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

WASTE MANAGEMENT STUDY The Environmental Services Department has

• Metal food container recycling • Composting of organic food and yard wastes

worked with staff at the Holyrood Generating

• Installing hand dryers and removing paper

Station, Hydro Generation and the central regional

towels from washrooms or installing

office in Bishop’s Falls to implement new waste

levered dispensers

management initiatives. Each of these areas are now participating in the Call2Recycle program,

• Removing all paper cups from lunch rooms.

whereby rechargeable batteries (lithium ion, nickel cadmium, nickel metal hydride and small

The study also recommended developing an

sealed lead acid batteries) and cell phones are

environmental committee to oversee current

collected and sent to a recycling program funded

and upcoming waste diversion programs and

by product manufacturers.

to implement a training program to boost participation rates. All recommendations in the

In 2012, Hydro Generation’s Bay d’Espoir

waste study will be evaluated in 2013 and shared

powerhouse complex completed a solid waste

with all operational areas at Nalcor for possible

study. The study evaluated solid waste generation

implementation. Similar studies may occur in

and the current recycling program to identify

other operational areas in the future, if the

options to reduce waste generation and divert

completed solid waste studies prove to be

solid waste from the landfill. The waste reduction

beneficial and result in waste reduction.

options included implementing: • An environmental purchasing policy • Fibre and mixed container recycling

2 0 1 2 EEN N V I RON MEN TA L PERFORMANC E REPORT

Spills and Other Incidents The very nature of Hydro’s work to generate and

for all reportable spills was 758 litres. All but one

transmit electricity requires the safe handling

reportable spill involved petroleum products or its

and use of a variety of potential environmental

derivatives. One reportable incident at Churchill Falls

contaminants such as fuel oils, lubricating oils and

involved the release of 12 kilograms of refrigerant.

chemicals. Each year, Hydro uses approximately 300 million litres of fuel to generate electricity.

Two releases accounted for approximately

The company strives to reduce the potential

587 litres of lubricating oil that was spilled or leaked.

for leaks and spills.

Six releases involved spills or leaks of transformer insulating oil with an approximate volume of 145

Being prepared for such an incident is critical

litres. Two of these incidents involved the release

to mounting a quick and effective response to

of 28 litres of PCB contaminated oil. One incident

minimize impacts on people and the environment.

involved a leak of approximately 25 litres of #6 fuel

Nalcor Energy and its lines of business have

oil. One incident involved a spill of a total of one litre

developed Environmental Emergency Response

of hydraulic oil from mobile equipment.

Plans (EERPs) to quickly, effectively and safely deal with such incidents. All personnel who handle or

It should be noted that staff responded promptly to

work around petroleum products receive training

all spills and leaks with spill response equipment.

related to the EERP and, where applicable, specific

Contaminated materials were collected in suitable

operating procedures have been developed to

containers for appropriate disposal. Appropriate

facilitate the safe handling of the products used.

sampling was also undertaken, where applicable, to ensure adequate clean-up was completed.

Nalcor’s lines of business had a total of 12 reportable

In some incidents, independent site professionals

spill and leak incidents in 2012: Hydro reported

were engaged to manage the spill clean-up,

eight; Churchill Falls reported two; and Menihek

soil sampling and spill closure. Table 4 outlines the

Generation reported two. The approximate volume

details of Nalcor’s more significant spill incidents.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Date

Source

March 10

Lubricating oil released from Unit no. 3 at the Menihek Generating Station.

March 20

Transformer insulating oil with a PCB concentration of 200 mg/kg was released from a transformer in Happy Valley-Goose Bay.

May 2

Non PCB transformer insulating oil leaked from a transformer stored at the Port Saunders storage yard.

Table 4: Details of Nalcorâ&#x20AC;&#x2122;s more significant spill incidents.

Volume

Response/Status

585 L

The leak occurred when unit no. 3 was in operation and oil escaped through the runner blades. The unit was shutdown and dewatered. An investigation revealed the need to replace the seals on several runner blades. No oil was recovered as the leak occurred over time when the unit was in operation.

27 L

A power surge caused a bushing explosion on a distribution transformer. The transformer and contaminated snow were placed in overpack drums prior to being sent for destruction by a certified hazardous waste company. An independent site professional was engaged to manage and document the clean-up for spill response closure.

70 L

An oil stain was identified during an inspection of the transformer storage ramp. The cause of the leak was found to be around a rusted area on the transformer body. The transformer and stained snow were placed in drums for oil recovery and disposal. After snow melt, further investigation revealed an area of contaminated soil. The contaminated soil was removed, sampled and appropriately disposed of by an independent site professional.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

TRO OIL SPILL TRENDS ANALYSIS Nalcor continues to focus on eliminating spills and leaks from its fuel storage systems and operating and electrical equipment. Detailed information related to reportable and non-reportable spills and leaks are maintained and these are reviewed annually for trends and concerns. If trends are identified, preventative actions are considered and implemented to address the concerns. For example, in Hydroâ&#x20AC;&#x2122;s TRO Division, trends were identified in hydraulic oil hose breaks from aerial lift devices in 2012. To help prevent these types of incidents, TROâ&#x20AC;&#x2122;s fleet services identified equipment for increased inspection frequency. TRO have also identified trends from leaks and spills from pole top transformers and have an ongoing program of inspection and replacement of transformers with evidence of corrosion.

the Churchill Falls powerhouse spill response and

that compared its spill prevention and response

prevention measures. This plan was a continuation

measures with other similar large hydroelectric

of spill prevention and response measures target

facilities that are also located in northern climates

that Churchill Falls management have been

with large moving water bodies at the tailrace.

working on for the past several years. However,

As a result of the study, spill prevention and

it is a significant milestone because once all of

response techniques unique to the challenging

the actions within this plan are completed, all

conditions in Churchill Falls were determined.

identified prevention and response efforts will have been implemented.

The 2012 action plan closes gaps that will meet and even exceed what was determined to be industry

Over the past several years, Churchill Falls has

standard. Spill prevention actions include reviewing

focused a significant effort into limiting the

and communicating standard operating procedures

likelihood of any oil being discharged into the

for drainage sump monitoring and maintenance

Churchill River from the powerhouse. The focus

and improving drainage sump infrastructure such

has been to improve the response measures

as installing skimmers and a redundant low level

in place through the installation of oil water

pump switch. Spill response actions included the

separators in the powerhouse, the purchase

purchase of additional materials and equipment,

of spill response materials and equipment and

and a consultant review of the spill response plan.

the implementation of prevention and response procedures. Churchill Falls wanted to make sure

The work done on improving the spill prevention

that equipment and procedures were in place

and management program in recent years, and

to prevent and respond to oil spills to the tailrace

the subsequent work recommended for 2013 and

and Churchill River and that, at a minimum,

beyond, reinforces the commitment to minimize

One of the ongoing programs in 2012 was the

the equipment and procedures met the industry

the risks and potential consequences of spills

completion of an action plan to further improve

standard. Churchill Falls completed a study in 2010

entering the Churchill River from Churchill Falls.

CHURCHILL FALLS SPILL PREVENTION AND MANAGEMENT PROGRAM

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Environmental Site Assessment (ESA) and Remediation In 2000, Hydro implemented an ESA program for all properties it owns or operates. The ESA process the company follows is illustrated in Figure 2.

Regulator Input

Remediation Action Plan

List of Sites

Criteria

Completion Remediation Phase Assessment Phase Communication and Input Reporting

Remediation Contract Management

Criteria

Phase I

Phase II

Risk Assessment

Phase III

Remediation

Regulator Input

Criteria

No Further Work Required

Notification to Stakeholder

Figure 2: Environmental Site Assessment Process

Annual Report

Regulator Input

No Further Work Required

Notification to Stakeholder

Confirmatory Sampling

No Further Work Required

Notification to Stakeholder

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

The objectives of the ESA program are to: • Evaluate the potential for environmental contamination • Undertake sampling to characterize and delineate any contamination

• A human health risk assessment

located throughout central Newfoundland

was completed at one site

and Labrador. The sites include Millertown Dam,

• Additional delineation, soil and groundwater sampling and monitoring programs were continued or completed on five properties

Bishop’s Falls Powerhouse, Transmission Line, Buchans Upper Dam, Buchans Powerhouse, Goodyear’s Dam, First Falls and Grand FallsWindsor Powerhouse. The 2012 ESA was

• There were also two hazardous material

completed as a follow up to a Phase I ESA

associated with any contamination identified

assessments completed.

carried out at the site in 2009.

• Identify sites requiring monitoring

In 2012, the Churchill Falls ESA program

The company’s ESA program continues to be

continued at seven sites (five sites were located

successful in identifying and managing the

• Develop and implement remediation

in remote areas while the other two sites were

potential environmental contamination associated

programs when necessary.

located within close proximity to the town site)

with Nalcor’s past and present operations.

• Assess the potential risks and liabilities

or remediation

with the following highlights: Following the recommendations of previous ESA-related work at Hydro, the following are noteworthy points related to the 2012 ESA program: • Complete Phase II assessments were

• Completed ongoing ground water monitoring and free product recovery at four sites • Additional delineation with monitoring well installations at two sites

performed at four sites

• Soil removal and capping at one site

• A supplemental Phase II was completed

• Some locations had monitoring

at two sites

wells decommissioned.

• Free product remediation was completed

Nalcor completed a Phase II Environmental Site

at one site

Assessment on eight Exploits Generation facilities

Phase l — review of information and records, site visit and interviews Phase II — characterization of a site for physical aspects and potential contamination

Risk-based corrective action (RBCA) — a methodology that identifies a site-specific target level of contamination that has an acceptable risk to human health

Remediation — site cleanup to a specified regulatory standard

2 0 1 2 EEN N V I RON MEN TA L PERFORMANC E REPORT

Species and Habitat Diversity FISHERIES COMPENSATION WATER RELEASE

RAPTOR PROTECTION PROGRAM

In 2012, as part of long-term agreements with

For more than 20 years, Hydro has managed a

the Department of Fisheries and Oceans, Hydro

raptor protection program. In keeping with Nalcor’s

released approximately 149 million cubic metres

EMS and the corporate Environmental Policy and

of water at its fisheries compensation facilities.

Guiding Principles, surveys are undertaken by

The water released at White Bear River, Grey River,

Hydro’s Environmental Services Division on the

Granite Canal, Upper Salmon and Hind’s Lake was

transmission lines in Labrador for the presence

performed at established times throughout the

of active raptor nests. This is an annual survey

year for habitat protection and fish migration.

undertaken in consultation with the Department of Environment and Conservation, Wildlife Division.

Because of the isolated nature of the island’s

These nests are primarily osprey, with smaller

electrical system, lost hydroelectric energy

numbers of northern ravens, red tailed hawks and

production associated with these water releases

bald eagles. Surveys are undertaken early in the

under normal conditions must be provided by

egg-laying stage of the breeding season at which

thermal generation from the Holyrood Generating

time nests that would be active for the year are

Station. The amount of thermal production required

usually occupied or show signs of occupancy.

to offset the amount of water released in 2012 was nearly 45 GWh. When the 2012 thermal conversion

Surveys were undertaken in late June 2012

rate and average cost of fuel are considered,

and found a total of 168 nests on the three

the equivalent value of the water released at all

transmission line corridors in Labrador. On the

fisheries compensation facilities was approximately

island transmission grid, 32 active nests were

$8.6 million. This resulted in a potential increase of

identified on various structures. This data was

161 tonnes of sulphur dioxide (SO2) emissions and

provided to work crews in Labrador immediately

37,000 tonnes of carbon dioxide (CO2) emissions.

following completion of the surveys to allow

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

for planning of maintenance activities on these

RAMEA BIRD MONITORING SURVEY

transmission lines. Structures with active nests

site were consistent. A seasonal trend of increasing numbers of birds from winter through fall was

are avoided until after the breeding season,

As part of the release from the Environmental

found at both locations. There was no seasonal

usually after August 15. This allows line crews

Assessment process, the Canadian Wildlife Service

variation in collisions or for flights within

to avoid potential negative impacts on these

required a post-construction bird monitoring

50 metres of turbines. Rotor activity did not

species during the critical periods within

program at the Nalcor Energy Ramea wind-

affect the number of flights close to the turbines.

the breeding regime, which in turn ensures

hydrogen-diesel facility. A 23-month bird

Estimated collision rates were comparable to

compliance with wildlife legislation regarding

monitoring program was completed between

known collision rates for terrestrial turbines.

migratory birds in Newfoundland and Labrador.

May 2010 and April 2012. The methods used

The study results were also compared to the

adhered to Environment Canadaâ&#x20AC;&#x2122;s Canadian

pre-construction bird study from 2007 and the

Wildlife Service protocols for such monitoring.

results of the two were consistent.

The program involved two years of monitoring

GLENBURNIE DISTRIBUTION LINE UPGRADE

to quantify avian utilization and mortality in the area encompassing the three turbines and

The Glenburnie Distribution Line Upgrade involved

at a comparable control site. It included weekly

the rebuilding of approximately 18.5 kilometres

surveys from April to November and monthly

of single pole, three-phase distribution line along

from December to March. Carcass detection and

the foothills of the Tablelands within Gros Morne

scavenger removal experiments were completed

National Park, a UNESCO World Heritage Site since

each season. Bird carcasses in the study area were

1987. The original line, built in 1968, traverses

recovered during and following the early morning

some of the most unique habitat on earth, along

point count surveys.

one of the most spectacular view planes within the province, and it is one of the most visited

The study results were positive. The number of birds in the turbine study area and the control

areas within the Park.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Original plans in 2008 proposed the replacement

interfere with visitors to the park during the prime

of the park. In doing so, Hydro would also be able

of more than one hundred poles and hardware

tourism period and rebuilding the line away from

to remove the old line and substantially improve

in the existing 170 pole line and keeping the line

sensitive species and habitat within this region

the view plane of the Tablelands (Figure 3).

in the same corridor. This would require alternate generation in the community of Trout River and numerous customer outages; it would also require a two-year period to complete because of the sensitivity of the flora and surrounding habitat. Working with construction equipment in this area also presents a significant challenge for environmental protection. After further research and planning by Hydroâ&#x20AC;&#x2122;s Environmental Services, Project Execution and Technical Services Departments and in consultation with staff at Gros Morne National Park, the original plan was changed to completely rebuild the existing line adjacent the main road to Trout River. The main objective was to rebuild the distribution line to the community of Trout River to address reliability and accessibility concerns. Additional objectives also included building the new line as quickly and efficiently as possible so as not to

Figure 3: A segment of the old line to Trout River along the foothills of the Tablelands before the upgrade.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

Moving older distribution lines out of

has shown a strong continued commitment to

Labrador Fields Unit of Parks Canada was the

environmentally sensitive areas, where possible,

continual environmental improvement as well as

most important stakeholder with which Hydro

is not a new innovation for Hydro. This approach

consideration for the environmental sensitivity and

engaged for this project. It was very important

has been successful when taking on other projects

biodiversity of the Tablelands.

to Hydro to meet with Parks Canada in the early

on the Northern Peninsula in recent years.

planning stages and present them with an outline

Environmental considerations are an important

As an ISO 14001 certified company, Hydro strives

of the work we had planned. It was through this

factor, but sometimes it is just simply the safety

to be an environmental leader. In particular,

engagement that Hydro was able to determine

and economic concerns that make this approach

Hydroâ&#x20AC;&#x2122;s platform for continued environmental

that issues surrounding the presence of rare or

more feasible than trying to replace structures

performance is embedded in the Environmental

uncommon plant species were the main concern.

in older and remote lines. Some existing aging

Policy and Guiding Principles and is sustained

Hydro was also able to call upon expertise within

infrastructure predates integrated planning

through the ISO-certified Environmental

Parks Canada to help determine where the most

processes and awareness of local environmental

Management System. The environmental

sensitive areas were located. This involvement

sensitivities. Application of appropriate planning

sensitivities related to the Glenburnie distribution

allowed Hydro to select pole locations that would

processes can provide for improvements over and

line have been a limiting factor to the

not interfere with these species and to avoid areas

above those associated with the primary goal of

maintenance and upgrade of this line. Focus on

where any brush clearing would be required.

infrastructure replacement.

environmental performance improvement was the

Subsequently, there were no trees cut as part of

deciding factor in rerouting this distribution line so

this upgrade or with the removal of the old line.

Hydro worked closely with Parks Canada to plan

that it is more accessible. The terrain and habitat

and execute this work in a manner that was

along the foothills of the Tablelands are unique in

Equally important to Gros Morne National Park was

beneficial to the residents of Trout River. It also

many ways. Hydroâ&#x20AC;&#x2122;s awareness of these factors

the view plane of the Tablelands. Input from staff

provided long-term easy access to structures

meant that this project could be executed with

at Parks Canada was very important in determining

along this line and removed structures from one

minimal environmental impact.

where Hydro could start the reroute along the

of the most unique view planes within the park

road to Trout River to avoid obstructing one of

and some of the most significant geological

As the controlling authority for Gros Morne

the most photographed sections of the park.

formations on earth (Figure 4). In doing so, Hydro

National Park, the Western Newfoundland and

The main outcomes for Parks Canada included:

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

• An easily accessible new line for

The planning and execution of this work was

Hydro, similar to many Canadian electric utilities,

future maintenance

consistent with the Parks Canada Management

has an expanding capital program associated with

Plan for Gros Morne National Park. For the

the replacement of aging existing infrastructure.

community of Trout River, the upgrade has meant

Some of this infrastructure was put in place prior

a reliable and secure power supply and a reduced

to the establishment of some significant pieces

risk of outages during winter storms.

of environmental protection legislation relating

• No need for Hydro to traverse a very sensitive and unique area with heavy equipment • An unobstructed view plane of the Tablelands • An enhanced visitor experience (Figure 4).

to environmental impact assessment and species at risk. As well, knowledge of environmental sensitivities and environmental protection practices have changed considerably since this original infrastructure was developed. Application of today’s environmental planning tools when planning for aging infrastructure replacement can provide opportunities for improvements over and above the basic objectives of infrastructure upgrades. The replacement of the Glenburnie to Trout River distribution line is an example of where such planning allowed significant improvements for Hydro, Parks Canada, the community of Trout River and visitors to Gros Morne National Park. The planning and execution of this upgrade has been a great success for Hydro and for Parks Canada. This project demonstrated a high level

Figure 4: Looking west along the road to Trout River after the upgrade.

of commitment by Hydro to the protection of

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

the environment wherever work is undertaken.

Every year, spring runoff brings with it adult

relationship between attraction flow and fish

It allowed the public to see how a well-planned

salmon that have migrated downstream from

passage at Millertown Dam.

project in a very sensitive area could be

their spawning grounds. Some of these adult

accomplished with the right approach. Visitors

salmon will enter the power canal at the Grand

The Exploits River continues to get international

from all over the world come to Gros Morne

Falls hydroelectric plant. Barriers prevent the

attention for its success story around Atlantic

National Park and the response from visitors to

salmon from entering the power generation

salmon and in 2012 Exploits Generation produced

this upgrade was very positive. The attention

turbines once they reach the power canal.

a video that depicted Nalcorâ&#x20AC;&#x2122;s role in the safe

to detail by Hydro and the contractor during

Without assistance, they can be delayed in their

passage of Atlantic salmon smolt to the ocean.

this project showed a strong commitment to

annual migration downstream.

The video also speaks to the positive outcomes

environmental protection and this has helped

of the great cooperation with ERMA who operate

Hydro solidify a positive working relationship

Exploits Generation staff begin visually

the fishway and salmonoid interpretation center

with the staff at Gros Morne National Park.

monitoring the power canal at the end of April

at Grand Falls during the passage of the upstream

when water temperatures begin to rise. Through

migrating salmon.

PRESERVING THE ATLANTIC SALMON RUN

a cooperative effort that started in 1997, local fishermen and Exploits Generation employees

Exploits Generation staff manage a very

remove salmon from the power canal and

successful Atlantic salmon diversion system

transport them downstream.

on the Exploits River in Central Newfoundland. In partnership with the Department of Fisheries

In 2012, approximately 31,000 adult salmon

and Oceans, fish biologists and the Environmental

migrated upstream of Bishopâ&#x20AC;&#x2122;s Falls into various

Resource Management Association (ERMA),

tributaries of the Exploits watershed. In the upper

an Atlantic salmon enhancement project that

reaches of the Exploits River, the number of adult

started in the early 1960s has seen the natural

fish that passed Millertown Dam increased from

adult salmon run grow from 1,200 strong to an

an average of 250 to 1,500. Efforts in 2013 will

adult incoming run in the range of 40,000 today.

focus on getting a better understanding of the

2 0 1 2 EEN N V I RON MEN TA L PERFORMANC E REPORT

Alternative Energy WIND PROJECTS PROVIDE GREEN ENERGY TO ISLAND CONSUMERS

• Reduction in sulphur dioxide emissions

Hydro is demonstrating its commitment as an

• Reduction in carbon dioxide emissions

environmental leader. In 2009, in an effort to

by over 160,000 tonnes

reduce emissions from burning fossil fuels, Hydro increased its renewable generation. Hydro has power purchase agreements for 54 MW of clean, renewable wind energy on the island of Newfoundland. The integration of wind power

by over 660 tonnes

• Generation of green energy for the equivalent of up to 13,100 homes. WIND-HYDROGEN-DIESEL ENERGY PROJECT

in Newfoundland has broadened Hydro’s energy

While the province has an abundance of

mix and allowed the company to continue

renewable resources, many coastal isolated

providing electricity at a reasonable cost.

communities rely on diesel-fueled generation

Wind generation is an environmentally friendly, pollution-free and endless source of energy. It is clean and leaves a small environmental footprint on the province. On the island, wind generation will help reduce fossil-fuel generation at Hydro’s thermal generating station in Holyrood. On average, the annual environmental benefits from the wind farms in St. Lawrence and Fermeuse are:

systems for electricity generation. In its efforts to reduce reliance on fuel-fired generation, Hydro has built one of the first projects in the world to integrate generation from wind, hydrogen and diesel in an isolated electricity system. The Wind-Hydrogen-Diesel Energy Project in Ramea is a research and development project that uses renewable energy sources to supplement the diesel requirements of the island community.

• Reduction in fuel consumption

This unique project has attracted attention from

by about 310,000 barrels

around the world. Hydro continues to promote

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

the renewable energy and energy storage

Throughout 2012 to 2015, Hydro will complete

This initiative is guided primarily by the two

benefits of the project through presentations

further analysis of possible hydro generation

main objectives outlined in the Newfoundland

at various workshops and conferences. During

sites and wind power potential in this region.

and Labrador Energy Plan: protection of the

2012, commissioning work was completed on

The hydroelectric study is focused on possible

environment through the reduction of

the Energy Management System and the project

hydroelectric sites near Maryâ&#x20AC;&#x2122;s Harbour,

emissions and the development of energy

moved into the operational phase. In 2013,

Port Hope Simpson, Charlottetown, Makkovik

projects in the best long-term interests of

operational data will be collected and analyzed.

and Hopedale. The wind resource study is

residents of the province.

The collected data will be used to optimize

focused on wind power potential near Cartwright,

and improve the performance and efficiency

Makkovik, Hopedale and Nain.

of the system. This operational data will play a very important role in determining how the technology used in Ramea can be effectively used in other isolated electrical systems. ALTERNATIVE ENERGY STUDY UNDERTAKEN IN COASTAL LABRADOR Hydro is also investigating renewable energy sources for diesel communities. In late 2011, through a joint venture with the Government of Newfoundland and Labrador, $3.4 million was allocated to further study small-scale hydroelectric projects and conduct an assessment of the wind resource for some Labrador coastal communities.

2 0 1 2 EEN N V I RON MEN TA L PERFORMANC E REPORT

Energy Efficiency and Conservation INTERNAL ENERGY EFFICIENCY

T5 fixtures and then placed on occupancy sensor control. All T12 fluorescent lighting in the facility

Hydro’s Internal Energy Efficiency Advisor

was converted to more efficient T8 fixtures

conducts energy use tracking, walkthrough

and also placed on occupancy sensor control.

audits of facilities, supports the evaluation of

Many benefits in addition to energy savings

energy efficiency options for capital projects and

were noted by operators, the most notable of

provides education on energy use to employees.

which was the fact that the quality of light and

In 2012, several energy efficiency retrofits were

level of brightness increased in the engine hall,

implemented for a predicted annual savings of

eliminating the need for them to use flashlights

278 MWh. Several of the retrofits in 2012 focused

to check gauges and equipment. Given the fact

on implementing temperature set back control

that T5 lighting technology has proven itself

and lighting retrofits in select line depots and

in the harsh environment of Hydro’s diesel

garages. These types of buildings have minimal

generating plants, the company will be collecting

insulation and high wattage heaters; as well,

site information throughout 2013 to begin the

they do not typically reduce space temperatures

process of performing similar retrofits in all its

when unoccupied. The retrofits converted all T12

diesel plants.

fluorescent lighting to more efficient T8 fixtures, and heaters are now automatically controlled based on an occupancy schedule.

THE ISOLATED SYSTEMS ENERGY EFFICIENCY PROGRAM

Hydro successfully retrofitted all lighting in the

Hydro’s Isolated Systems Energy Efficiency

Black Tickle Diesel Generation Station. The plant

Program was designed to gain energy savings

provides power for the isolated community

in homes and businesses, engage the local

of Black Tickle. This retrofit saw metal halide

community and retailers in awareness building,

lighting in engine halls converted to high-output

create a conversation about efficiency and energy

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

use and further enhance participation in other

showerheads, water conservation items and LED

existing rebate programs that offer assistance for

Exit sign retrofit kits among other technologies

larger retrofits and can provide larger savings for

for the small commercial market.

the customer. In addition to the direct installs, mail-in rebates This program is offered to residential and

were offered for select appliances and at-cash

commercial customers in Hydroâ&#x20AC;&#x2122;s isolated diesel

retail coupons were also available for additional

systems and the Lâ&#x20AC;&#x2122;Anse au Loup system. Hydro

small technologies such as CFLs, thermostats

engaged a consultant to deliver this program,

and other products. Local retailers were

using a number of delivery strategies to

engaged through the coupon offerings as well

engage residential and commercial customers.

as providing other events for product exchanges

It is estimated that this initiative will result in

and giveaways including exchanging

estimated annual savings of 1,549 megawatt-

incandescent seasonal light strings for

hours per year.

efficient LED seasonal lighting.

Contracted representatives from the communities

Cross promotion of the existing takeCHARGE

A Community Energy Representative for Hydroâ&#x20AC;&#x2122;s

provided local delivery of these efforts. The

Energy Savers Rebate programs was a strong

Isolated Systems Energy Efficiency Program helps

largest is the direct install effort, where the

component of the project as well, which enabled

a homeowner save energy and save money with

customer receives the technology in their home

increased activity through existing home retrofit

the free installation of energy efficient products.

or business at no cost. During the direct install

programs. Commercial customers were also

visit, customers also received information on

encouraged to engage in the newly launched

energy usage and efficiency options. In 2012,

Isolated Systems Business Efficiency Program as

there were 1,355 direct completed. The installs

a way to gain further energy savings with a new

included: CFLs, hot water heater pipe insulation,

custom program that provides cents/kwh saved

hot water tank wrap, weather stripping, low flow

from retrofit projects.

2 0 1 2 EEN N V I RON MEN TA L PERFORMANC E REPORT

Committed to Our Communities Nalcor is dedicated to the promotion of environmental awareness and preservation

CONSERVATION CORPS NEWFOUNDLAND AND LABRADOR

of Newfoundland and Labrador’s unique

Since 1996, Nalcor and Hydro have supported

environment. A priority for Nalcor is to

25 Green Teams through Conservation Corps

build and cultivate partnerships with other agencies and organizations to

Newfoundland and Labrador’s Green Team Program, employing almost 100 youth and contributing about $340,000 to support local

achieve common environmental objectives.

employment opportunities for youth throughout

These partnerships maximize human and

the province. Though the two projects in Happy

financial resources to generate a body of

Valley-Goose Bay and Flower’s Cove in 2012

knowledge and experience that can be

had a different focus, they all shared a common goal, as do all Green Teams, which is to provide

used for environmental decision-making

meaningful youth employment opportunities

in a variety of applications.

with an environmental and cultural focus.

2 0 1 2 E N V I RON MEN TA L PERFORMANC E REPORT

HAPPY VALLEY – GOOSE BAY TEAM: MUD LAKE WALKING TRAIL DEVELOPMENT

special restoration project at the Long’s Braya

implementation of activities that advance sustainable

site in Sandy Cove. This is one of the final

forest management and community-based economic

stages in a project that has been carried out

development utilizing forest resources. Deer Lake’s

by a number of Green Teams in recent years.

Elwood High School Envirothon Team, Enviropedia,

The team also conducted community land

the winners of the 2012 provincial competiton,

use surveys in the areas of Savage Cove,

represented Newfoundland and Labrador in

Sandy Cove, Flower’s Cove and Anchor Point,

Selinsgrove, Pennsylvania, USA at the Canon

which will provide valuable information to groups

Envirothon. Hydro has been a proud supporter

and municipalities working to save the Long’s

of this initiative for several years and in 2012

Braya and the limestone barrens.

continued its support as a bronze partner.

ENVIROTHON NEWFOUNDLAND AND LABRADOR

TROUT UNLIMITED CANADA

Envirothon is an environmental education

In 2012, Nalcor donated $10,000 to Trout

competition for youth that raises awareness of

Unlimited Canada (TUC), an organization

environmental issues through hands-on learning

committed to conserving, protecting and

In Flower’s Cove, the Team was sponsored by

and outdoor competitions in five subject areas:

restoring Canada’s freshwater ecosystems

Hydro and engaged in restoration activity at

Aquatic Ecology, Forestry, Soils and Land Use,

and their cold water resources for current and

Sandy Cove Provincial Ecological Reserve.

Wildlife; and a Current Environmental Issue (selected

future generations. TUC’s work includes stream

The team worked to increase public awareness

annually). The 2012 special topic was Nonpoint

restoration, scientific research and education.

of the Long’s Braya population in Sandy Cove,

Source Pollution/Low Impact Development and

by conducting a number of Environmental

the Environthon took place April 26-28, 2012 in

Awareness Events that focused on both the

Bishop’s Falls. This competition is organized

limestone barrens and the Long’s Braya.

by Model Forest Newfoundland and Labrador,

The team also assisted MUN researchers with a

a not-for-profit corporation working on the

Happy Valley-Goose Bay’s Green Team, sponsored by Nalcor and in partnership with the Town of Happy Valley – Goose Bay, worked on the trail development started in 2010 and continued in 2011. The team built upon the work completed by the 2010 Green Team and continued work on the Mud Lake Walking Trail, finishing a sevenkm walkway system along the Churchill River, clearing brush, planting trees, and providing scenic rest areas along the trail. FLOWER’S COVE: SANDY COVE PROVINCIAL ECOLOGICAL RESERVE RESTORATION