Page 1

2013 ENVIRONMENTAL PERFORMANCE REPORT

2013 ENVIRONMENTAL PERFORMANCE REPORT

1


Environmental Policy and Guiding Principles

All Nalcor Energy companies help sustain a diverse and healthy environment for present and future Newfoundlanders and Labradorians by using a comprehensive environmental management system to maintain a high standard of environmental responsibility and performance.

• Include energy efficiency in all elements of asset

COMPLY WITH LEGISLATION

management and promote energy efficiency for our

• Comply with all applicable environmental laws and

customers and other stakeholders

regulations, and participate in the Canadian Electricity

• Maintain a high standard of emergency preparedness to

Association’s Sustainable Electricity Program

respond quickly to environmental emergencies.

• Periodically report to the Nalcor Board of Directors, Leadership Team, employees, government agencies, and

IMPROVE CONTINUALLY

the public on environmental performance, commitments

• Audit facilities to assess potential environmental risks

and activities

These principles guide the environmental actions and

and to identify opportunities for continual improvement

• Monitor compliance with environmental laws and

decision-making of Nalcor companies:

of environmental performance

regulations, and quantify predicted environmental

• Establish environmental objectives and targets, and

impacts of selected activities on the environment

PREVENT POLLUTION

monitor environmental performance

• Respect the cultural heritage of the people of the

• Implement reasonable actions to prevent pollution of air,

• Integrate environmental considerations into decision-

province and strive to minimize the potential impact of

water and soil and to reduce the impact of any accidental

making processes at all levels

company activities on heritage resources.

or unavoidable pollution

• Empower employees to be responsible for the environ-

• Use the province’s natural resources in a wise and

mental aspects of their jobs and ensure that they

efficient manner

have the skills and knowledge necessary to conduct their

• Recover, reduce, reuse and recycle waste materials when

work in an environmentally-responsible manner

and where feasible

• Add value by engaging key stakeholders and partners.

2013 ENVIRONMENTAL PERFORMANCE REPORT

2


About Nalcor Energy

Nalcor Energy’s business includes the development, generation, transmission, and sale of electricity; the exploration, development, production, and sale of oil and gas; industrial fabrication; and energy marketing. The company leads the development of the province’s energy resources with a focus on sustainable growth. Nalcor uses a corporate-wide framework to facilitate the prudent management of its assets while maintaining an unwavering commitment to the safety of its workers and the public. There are six lines of business for Nalcor: Newfoundland and Labrador Hydro (Hydro), Churchill Falls, Lower Churchill Project, Oil and Gas, Bull Arm Fabrication, and Energy Marketing.

NEWFOUNDLAND AND LABRADOR HYDRO

Hydro is focused on strengthening and ensuring the integrity

Hydro provides safe, reliable, and cost-effective electricity

of its existing business of power generation, transmission,

to meet current and future electricity needs. Hydro

and distribution. The company’s goal of business excellence

generates and delivers electricity in Newfoundland and

focuses on delivering value to its customers and executing

Labrador to utility, industrial, residential and commercial

its strategy with an uncompromising commitment to

customers in more than 200 communities across the province.

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

Hydro is the primary generator of electricity in Newfoundland and Labrador with an installed generating

CHURCHILL FALLS

capacity of 1,609 megawatts (MW). In 2013, 84 per

Nalcor’s flagship operation in Churchill Falls is one of

cent of the net energy produced by these sources was

the largest underground hydroelectric powerhouses in

from clean hydroelectric generation. Hydro’s generating

the world with a rated capacity of 5,428 MW. In 2013,

assets consist of nine hydroelectric plants (939 MW), one

approximately 35 terawatt hours of clean electricity was

oil-fired plant (490 MW), three gas turbines (127 MW),

produced, with the majority of that energy sold to Hydro-

and 25 diesel plants (52.6 MW). In addition, Hydro has

Québec through a long-term power purchase arrangement

entered into power purchase agreements with non-utility

set to expire in 2041. Most of the remaining production is

generators to supplement its own generation capacity

used for mining operations in Labrador West and Hydro’s

including two wind developments (54 MW).

Labrador Interconnected System. Nalcor Energy Churchill Falls focuses on promoting safety excellence, delivering

2013 ENVIRONMENTAL PERFORMANCE REPORT

3


reliable power to customers, and ensuring future

LOWER CHURCHILL PROJECT

fabrication and concrete construction, outfitting installation,

generations benefit from this world-class resource through

The hydroelectric potential of Muskrat Falls and Gull Island

at-shore hook-up, and deep water commissioning. The site

long-term asset management.

make the Lower Churchill River the best undeveloped

is leased to ExxonMobil Canada Properties for the Hebron

hydroelectric source in North America. Together, they

Project until 2017.

OIL AND GAS

have a combined capacity of more than 3,000 MW. The

Nalcor is a partner in three developments in the

provincial government sanctioned the Muskrat Falls Project

ENERGY MARKETING

Newfoundland and Labrador offshore: the Hebron oil field,

in 2012 and construction is now underway.

Nalcor is involved in energy marketing and other energy

the White Rose Growth Project, and the Hibernia Southern

activities, including non-regulated electricity generation,

Extension. Oil and Gas is also executing a comprehensive

BULL ARM FABRICATION

wind energy, and research and development. Nalcor’s energy

exploration strategy to accelerate the discovery of new

The Bull Arm Fabrication site is a world-class facility

marketing portfolio will grow over the coming years and

resources in the offshore.

spanning more than 6,300 acres with capabilities for steel

it currently includes recall power not required by Hydro.

2013 ENVIRONMENTAL PERFORMANCE REPORT

4


Message from the CEO

At Nalcor Energy, we focus on effective and environmentally sound practices as part of our promise to be environmentally responsible and sustainable. We produce the Environmental Performance Report as our record of our environmental commitments, accomplishments, partnerships, and energy conservation activities.

In this 2013 report, we continue to document our activities dedicated to our goal of becoming an environmental leader in Newfoundland and Labrador. We have focused on the many improvements we make to support accountability, transparency and sustainability in environmental protection, not just for today, but also for our future. Our report also highlights the innovations we implement and the measures we take to ensure our environmental work both protects our resources and enhances conservation and efficiency. Our experienced and knowledgeable employees help us keep that promise to protect and enhance our environment through their daily contributions and constant diligence. Please read this year’s report and share your thoughts with us as we maintain our commitment to our natural environment and its many resources. Ed Martin, PRESIDENT AND CEO

2013 ENVIRONMENTAL PERFORMANCE REPORT

5


2013 Highlights

NEWFOUNDLAND AND LABRADOR HYDRO

project that will see the addition of a Hydrogen Fuel Cell

BULL ARM FABRICATION

The Ramea Wind-Hydrogen-Diesel Project, operated by

to the system. The project will consist of an operational

During the fall of 2011, Bull Arm Fabrication signed a six-

Hydro on behalf of Nalcor, continued making progress

phase and a commercialization phase.

year lease agreement with ExxonMobil Canada Properties

in 2013. Designed as a research and development

with respect to the use of the site for the construction

project using renewable energy sources and the Energy

CHURCHILL FALLS

and fabrication of the Hebron Project. During 2013, the

Management System (EMS), it also supplements the diesel

An ISO 14001–certified Environmental Management System

company began construction of the gravity-based structure

requirements of the island community.

guides the work in Churchill Falls; this past year marked

and the living quarters module.

four consecutive years of completing 100 per cent of its This unique project has attracted attention from around the

environmental targets and milestones. Completing leak

Consistent with Nalcor’s corporate policy and guiding

world. Hydro continues to promote its renewable energy

repairs on 13 of the 735 kV transformers was an important

principles, the company developed an environmental

and energy storage benefits through presentations at

accomplishment achieved in 2013. The contractor made

management framework for the duration of the Hebron

various workshops and conferences.

the leak repairs while the transformers were still in

Project.

service, therefore eliminating the need for interruptions in

systems and processes providing the primary means

In 2013, operation of the EMS resulted in a significant

supplying power. Another significant accomplishment was

by which Nalcor will ensure consistent environmental

reduction in diesel fuel consumption and assisted in the

the finalization and approval of the River and Reservoir

management of the Bull Arm Fabrication site under the

collection of valuable operational data. Data analysis led

Spill Response Plan. While the plan had been in place

terms of the lease agreement. The framework is another

Nalcor Energy to proceed with Phase II of the project in

since 2010, the company carried out a consultant review

way Nalcor demonstrates its commitment to a high

2014. The Atlantic Canada Opportunities Agency, through its

in 2013, which led to the plan’s revision and finalization.

standard of environmental responsibility and performance.

The framework documents and outlines the

Atlantic Innovation fund, will support Phase II, a five-year 2013 ENVIRONMENTAL PERFORMANCE REPORT

6


LOWER CHURCHILL PROJECT

governments to identify the potential environmental and

the Minister of Environment and Conservation in early 2010.

The lower Churchill River is one of the most attractive,

socioeconomic effects of proposed development projects

The Minister subsequently released the project subject to

undeveloped hydroelectric resources in North America and

and to inform project planning and decision making. In

conditions. These conditions included the submission of an

is a vital component of the province’s energy warehouse.

April 2012, Nalcor submitted the required Environmental

Environmental Protection Plan (EPP) and an Environmental

The project’s two sites at Muskrat Falls and Gull Island have

Impact Statement (EIS) for the Labrador-Island Transmission

Effects Monitoring plan (EEM), and stipulations on when

a combined capacity of more than 3,000 MW. The Muskrat

Link (LIL) environmental assessment. In 2013, the LIL was

road construction could be performed.

Falls Project consists of the construction of an 824 MW

released from Environmental Assessment.

hydroelectric dam and more than 1,500 km of transmission

In 2013, the removal and disposal of drill cuttings were

lines; it will provide Newfoundlanders and Labradorians

OIL AND GAS

completed at the Seamus and Finnigan well sites. This was

with long-term stable electricity rates and will serve as a

In 2009, Nalcor Energy announced its plan to proceed with

completed in consultation with the provincial Department

valuable power-producing asset for generations.

the Parsons Pond onshore exploration program on the

of Environment and Conservation and the operator of the

province’s West Coast, involving three exploration permits.

local waste disposal site.

Environmental Assessment is a regulatory review and

As part of an extensive environmental approval process,

planning process administered by the federal and provincial

Nalcor submitted an Environmental Preview Report (EPR) to

2013 ENVIRONMENTAL PERFORMANCE REPORT

7


Our People

MANAGEMENT REPRESENTATIVES COMMITTEE

The MR Committee keeps a global watch over the progress

RECOGNIZING OUR PEOPLE

Nalcor Energy’s Environmental Management System

and development of Environmental Management Programs

President’s Award – Environment: Craig Parsons

(EMS) allows for the management of its environmental

(EMP) within each MA to ensure the overall approach and

The President’s Awards are Nalcor’s most prestigious form

affairs and is applied to activities, products, and services

philosophy of Nalcor’s commitment to environmental

of recognition. Recipients are considered role models who

across Nalcor companies that may have an effect on the

responsibility and responsiveness is upheld every day. The

live the corporate goals on a day-to-day basis and take

environment. The Management Representatives (MR)

successful completion of the registration process for ISO

personal action to improve Nalcor’s performance.

Committee oversees the operational management of the

14001 across the company reflects the efforts of Nalcor’s

EMS. Each of the Management Areas (MA) within the EMS

MR Committee.

is represented on the committee.

The 2013 honoree, Craig Parsons, has been with Nalcor since 2008 as a Vegetation Control Specialist. Long

In 2013, the membership of the MR Committee included

considered an environmental ambassador, Craig makes

The MR Committee meets on a regular basis and provides:

Frank Ricketts, Corporate MA; Rob Bartlett, Hydro Plant

sure his efforts to safeguard and improve the environment

• An open exchange of information, approaches, and ideas

Operations MA; Cindy Michelin, Churchill Falls MA; Rod

encompass work, home, and community. From the time

related to EMS development and implementation

Healey, Services MA; Michael Manuel, Holyrood Generating

he was first hired with Newfoundland and Labrador Hydro,

• A consistent application of company EMS procedures

Station MA; and Paul Smith, Transmission and Rural

Craig’s priorities have been the environment and how to

• A single point of communication between the Leadership

Operations MA.

find operational improvements in that area.

Team and Management in each MA • A forum for training and mentoring newly appointed

Early in his career with Hydro, Craig realized the existing

Management Representatives.

vegetation program had the potential to be more effective; he readjusted this program to produce higher

2013 ENVIRONMENTAL PERFORMANCE REPORT

8


quality results. Craig has maintained this constant focus on

need to balance environmental stewardship with getting

The recipient of the Environmental Stewardship Award for

environmental improvement and efficiency throughout his

the job done and ensures that all regulatory requirements

2013 was Anna Dawe. Anna exhibits her commitment to

career, including the introduction of GPS/GIS technology in

are met.”

the conservation and protection of the environment on a

the vegetation management program and in the frequent

daily basis, promoting environmental protection through 2013 Churchill Falls Environmental Award: Anna Dawe

leadership and example. She plants greenery, regularly

Churchill Falls holds Nalcor’s commitment to the

helps with the community beverage container recycling

Craig also maintains his environmental commitment

environment

the

program, uses cloth grocery bags, conserves energy and

by working with the Atlantic Vegetation Management

Environmental Stewardship Award is presented to

water, and volunteers on the Environment Week Committee

Association and the Grand Falls-Windsor Scout Group.

an individual in Churchill Falls in recognition of their

each year. Anna promotes environmental protection to

He has used his expertise to help a berry-picking co-op

commitment to the environment and demonstration of

others by encouraging them to participate in beverage

maintain their green certification. “Craig understands the

environmental leadership.

container recycling activities.

review of the herbicide products Hydro uses.

in

high

Craig Parsons (right) receiving the President’s Award from Ed Martin (left) President and CEO of Nalcor Energy. 2013 ENVIRONMENTAL PERFORMANCE REPORT

esteem.

Since

2010,

Anna Dawe (left) receiving the Environment Stewardship Award from Cindy Michelin (right) at Churchill Falls in 2013. 9


Environmental Management Systems

Nalcor Energy has chosen the ISO 14001–certified EMS to drive the continual improvement of the company’s environmental performance. An EMS provides a management framework

CORPORATE

Input Ouput

Senior Leadership Team

for an organization’s environmental responsibilities and is an integral component of the organization’s business

MR Committee

operations. The EMS governs the environmental activities in Nalcor’s electricity businesses: Hydro and Churchill Falls. Nalcor is also committed to the use of the EMS for its other lines of business. The six designated MAs within Nalcor manage their

OPERATIONAL MANAGEMENT AREAS Services Service input to Operational Management Areas

Thermal Plant Operations

Hydro Generation

Churchill Falls

TRO Operations

environmental aspects through the EMS (Figure 1). Each EMS is certified and registered by an independent Registrar, Quality Management Institute (QMI – SAI Global). More

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

information can be found at www.qmi-saiglobal.com. Nalcor has undertaken a comprehensive and phased

While the company has made progress in 2013 to reduce

environmental leader. In 2013, Nalcor continued tracking

approach to environmental management within the

its impact on the environment, Nalcor will continue to

and reporting EMS performance to the Leadership Team

company and has registered and maintained EMSs at its

develop long-term plans to achieve its environmental

and achieved 95 per cent completion of its EMS targets

six existing MAs over the period since 1999.

targets and its corporate environmental goal – to be an

and milestones.

2013 ENVIRONMENTAL PERFORMANCE REPORT

10


EMS programs developed under the EMS cover a broad

Corporate Environmental Policy and Guiding Principles set

• Reducing emissions per unit of energy delivered at the

range of areas:

the standard for all Nalcor companies. Employees also

Holyrood Generating Station

• Alternative energy and conservation

carry out periodic reviews of activities and issues to ensure

• Completing EMS implementation and compliance audit

• Emissions control, waste management, and recycling

consistency with corporate standards.

closure plans for the new lines of business.

• Spill prevention and management • Environmental site assessment and remediation

TO BE AN ENVIRONMENTAL LEADER

• Species and habitat diversity.

Nalcor developed a corporate strategy that today sets the stage for environmental performance and guides

These systems include specific performance measures and

the direction of all Nalcor companies, including the

a commitment to continual improvement. For example, in

development of goals, objectives, and targets for each.

2013, Hydro developed and implemented a strategy for the identification and mitigation of construction effects on

Nalcor established three objectives to support Nalcor’s

bogs and wetlands. The strategy included reviewing the

environmental goal – to be an environmental leader. These

2013 and 2014 capital transmission and distribution work

are reviewed annually:

to identify sensitive bogs and wetlands and developing

• Reduce emissions per unit of energy delivered through

mitigation strategies to minimize impacts.

2015 by achieving not more than 10 per cent variance from ideal production schedule at the Holyrood

Additional

accomplishments

resulting

from

the

Generating Station

Environmental Management Plan in each of the

• Maintain the number of environmental leadership

Management Areas in 2013 follow.

targets accomplished at, or greater than, 95 per cent each year for the next five years

CORPORATE MANAGEMENT AREA

• Have all current non-regulated generating entities and

The Corporate MA consists of the Leadership Team and a

lines of business under an EMS fully compliant with the

committee of managers with responsibilities for facilities

ISO 14001 standard by 2015.

and operations with environmental aspects. The goal of this MA is to co-ordinate the development and maintenance of

The company set targets arising from these objectives in

the overall EMS for Nalcor and to identify environmental

each line of business. The 2013 targets included:

aspects appropriate to the Leadership Team’s activities and

• Increasing the number of Leadership Team-approved EMS

responsibilities. Although the operational and services EMSs

targets and objectives accomplished across the company

are managed independently, a common and consistent

• Increasing internal and external energy savings

2013 ENVIRONMENTAL PERFORMANCE REPORT

11


SERVICES MANAGEMENT AREA

OPERATIONAL MANAGEMENT AREAS

• Assessment of opportunities for the implementation

Environmental aspects are an element of a department’s

Thermal

of energy efficiency and conservation applications

activities, products, or services that can interact with the

The Holyrood Thermal Generating Station is a 490 MW

such as installing programmable thermostats in locations

environment. Currently, there are five departments within

plant located in Holyrood, Conception Bay. Although the

throughout Hydro Generation facilities

the Services MA that have identified environmental aspects.

Holyrood plant’s EMS was initially registered in January

• Review of our Granite Canal Plant Operating Requirements

These groups include Systems Operations and Planning,

1999, this plant continues to maintain registration.

and the Fish Habitat Compensation Facility as it pertains

Corporate Relations, Project Execution and Technical Services, Supply Chain Management, and Environmental Services.

to

the

Department

of

Fisheries

and

Oceans

In 2013, the Holyrood Thermal Generating Station made

Authorization Agreement

progress on 14 environmental targets resulting in the

• Development and implementation of an Environmental

In 2013, the Services MA managed nine environmental

following improvements:

Management System for the Star Lake generating facility

management programs. Some results included:

• Spill mitigation was improved through completion of

and integration into the Hydro Generation EMS

• Controlled release of more than 126 million cubic metres

three tank upgrades

• Fuel storage tank improvements

of water from reservoirs, as part of long-term agreements

• Spill mitigation was improved through completion of day

• Improvements in the reduction of oil losses and increased

with the Department of Fisheries and Oceans for fish and

tank upgrades

emphasis on training awareness.

fish habitat protection

• Energy efficiency and spill mitigation were improved

• Initiating a Marine Environmental Effects Monitoring

through fuel line heating system upgrades

Transmission and Rural Operations (TRO)

study at the Holyrood Thermal Generating Station

• Marine terminal operations and spill mitigation were

The TRO division operates three gas turbines, three 100

• Implementing Year Two activities of the isolated systems

improved through completed marine terminal upgrades

kW wind turbines, three interconnected diesel generating

community energy efficiency program and creating and

• New ambient monitoring data loggers were installed

stations, and 22 isolated diesel generating and distribution

implementing a communication plan for Hydro facilities

to support government initiatives to improve community

systems. Hydro also maintains 54 high-voltage terminal

• Developing and implementing a strategy for the

awareness of ambient air quality

stations, 34 lower-voltage interconnected distribution

identification and mitigation of impacts of construction

• The main condenser performance was analyzed to identify

substations, 3,743 km of interconnected high-voltage

on bogs and wetlands

efficiency improvements to reduce fuel consumption.

transmission lines, and 3,428 km of distribution lines.

Hydro Place building automation system

Hydro Operations

In 2013, the staff completed significant EMS programs in

• Continuing the optimization of Exploits Generation

The Bay d’Espoir MA consists of eight generating stations

TRO by:

through detailed vista modelling and incorporating the

on the island with a total installed capacity of 939 MW. In

• Developing procedure and tool list required to complete

Star Lake Generating Station into the generation

2013, some of the Environmental Management Program

vacuum testing of fuel storage tanks in TRO

scheduling and water management processes

results included:

• Reducing the risk of spill/leaks to the environment

• Optimizing energy usage by reviewing and changing the

• Developing EMSs for new lines of business. 2013 ENVIRONMENTAL PERFORMANCE REPORT

through replacement of Transformer Radiators 12


• Continuing testing of electrical equipment potentially

The employees also developed environmental targets and

fit its current structure. In 2014, Oil and Gas will continue to

containing Polychlorinated Biphenyls (PCB) and the

programs at Churchill Falls as part of the EMS. Some results were:

expand on the EMF and develop and implement pertinent

implementation of a 15-year replacement plan for

• 100% completion of 21 environmental management

internal procedures to ensure a high level of environmental

sealed equipment

system targets

management exists for its operations.

• Continuing to recycle/reuse 100% of salvageable

• Finalized the River and Reservoir Spill Response Plan

material at TRO

• Installed new treated wood pole rack

Bull Arm Fabrication completed its Environmental

• Conducting trials of new products or new rates with

• Installed new transformer oil tank farm

Management Framework (EMF) ensuring a more cohesive

existing products with the potential to reduce herbicide

• Installed skimmers in powerhouse drainage sumps to

management process between Bull Arm Fabrication and

use; trials included alternative herbicide for weed

augment the oil water separator systems

ExxonMobil Canada Properties. In 2013, Environmental

control program (Arsenal herbicide,) and the reduction

• Ensured maintenance programs in place for all three

Services, with the Bull Arm Team, completed a final review

of the standard rate of Roundup Weathermax from

horsepower and greater refrigeration units

of the EMF and finalized pertinent internal procedures to

1.34 per cent to one per cent on 20 sites

• Performed extra work on unit A2 turbine to reduce oil loss

ensure consistency between the sublease and EMF.

• Completing Environmental Protection Plan training for

• Continued a multi-year program for reduction of oil

67 personnel

leaks from switchyard transformers by repairing apparent

The Menihek Hydroelectric Generation Station is in the final

• Identifying a facility in each region for replacement of

leaks on transformers

stages of implementing its ISO 14001:2004 consistent EMS.

T12 light fixtures and electronic ballasts. The facilities

• Continued a multi-year contaminated lands program.

In 2014, Menihek will continue to work towards having an

retrofitted included the Bishop’s Falls Service Building Classroom #2 and lunchroom/office, Happy Valley/

EMS in place by completing an internal review to ensure its ENVIRONMENTAL MANAGEMENT SYSTEMS FOR THE NEW LINES OF BUSINESS

suitability for an independent audit review in 2015.

Nalcor has decided on a staged approach to developing

2013 also proved to be a successful year for Exploits

CHURCHILL FALLS

and implementing an EMS across the new lines of business,

Generation with the completion of all environmental

The Churchill Falls Hydroelectric Generating Station has

including Oil and Gas; Bull Arm Fabrication; Menihek

targets identified in its gap closure plan. The Exploits team

an installed capacity of 5,428 MW. Associated with

Hydroelectric Generating Station; Exploits Generation; and

continues to develop EMS-specific procedures to ensure

this development are about 1,200 km of high-voltage

Star Lake Hydroelectric Generating Station.

the continual growth and development of its EMS.

Falls. Environmental aspects of these facilities are included

In 2013, Oil and Gas made great progress with developing

Star Lake Hydroelectric Generation Station was successfully

in the EMS. The Churchill Falls EMS also manages the

and implementing elements of its EMS. During the past year,

incorporated into the existing EMS for Hydro Generation

environmental aspects of the former Twin Falls Hydroelectric

Oil and Gas reviewed the available options as they relate to

and the team completed an independent internal EMS

Generating Station. The EMS was registered in 2000 and

the best EMS structure suitable for its business and decided

review. In 2014, the Star Lake team will deal with the

successfully completed a surveillance audit in 2013.

that an Environmental Management Framework (EMF) best

issues identified during the independent review.

Goose Bay North Plant, and Cow Head Line Depot.

transmission lines, an airport, and the Town of Churchill

2013 ENVIRONMENTAL PERFORMANCE REPORT

13


Emissions

WASTEWATER CONTROL

10 and 25 per cent of the island’s electricity continues

Avalon transmission support. This was driven by colder

The Holyrood Generating Station’s wastewater treatment

to come from fossil-fuel fired generation at the Holyrood

temperatures and increased customer demand.

plant treats the wastewater resulting from the combustion

Generating Station each year. Hydro also operates 25

of fuel and run-off from an on-site solid waste landfill.

diesel plants across the province and three wind turbines

The Holyrood plant produced just over 14 per cent of the

Components of the wastewater are measured and

in the isolated community of Ramea.

energy supplied by Hydro in 2013, up slightly from 13 per

compared to regulatory limits. Once all aspects of the

cent in 2012. The increased energy production from the

wastewater meet provincial regulatory requirements, it is

The company continues to use alternative sources of

Holyrood plant in 2013 resulted in a 10.9 per cent increase

released in the plant’s cooling water discharge and into

energy supplementing the province’s energy supply and

in carbon dioxide (CO2) emissions. The increase in CO2

Conception Bay. In 2013, 3.4 million litres of wastewater

to reduce emissions from burning fossil fuels. In 2013,

emissions is the direct result of more fuel being consumed.

were treated and discharged, which was similar to the 3

Hydro purchased 191,904 MW hours of clean energy from

The sulfur dioxide (SO2) emissions from the plant in 2013

million litres of wastewater treated and discharged in 2012.

the island’s two wind farm projects, representing enough

were 8.1 per cent higher than those experienced in 2012.

green energy to power more than 12,880 homes. This is AIR QUALITY MANAGEMENT

equal to burning 305,000 barrels of oil at the Holyrood

Overall, energy received into the system increased

Hydro has a mandate to meet the province’s growing

plant, and is a reduction of more than 159,000 tonnes of

by nearly two per cent in 2013, mainly because of the

electricity needs. In 2013, on the Island Interconnected

greenhouse gas emissions.

increased production from the Exploits Generating plants

System, approximately 82 per cent of this electricity was

and the Corner Brook Pulp and Paper Co-generation unit.

generated from clean hydroelectric power. To meet the

Overall, thermal production at the Holyrood Generating

This increase was partially offset by decreased generation

total customer demand requirements and to secure the

Station increased in 2013 by 11.7 per cent from 2012,

from the wind projects and the Star Lake Generating

transmission supply into the Avalon Peninsula, between

primarily due to increased requirements of the plant for

Station. Overall energy supply requirements increased by

2013 ENVIRONMENTAL PERFORMANCE REPORT

14


3.4 per cent in 2013, primarily due to an increase in utility load which was partially offset by an overall decrease in industrial requirements. Hydro’s hydroelectric production on the island was up by two per cent from 2012, primarily due to the increased customer demand requirement and

ANNUAL CO2 EMISSIONS

partially offset by increased Holyrood requirements for Avalon Peninsula transmission support.

6,000

2,000

Total emissions for CO2 , nitrogen oxides (NOx), and

1,800

SO2 for the Holyrood Generating Station, gas turbine

5,000

1,600

calculated using formulas approved by the provincial overall air emissions are dominated by those resulting from production at the Holyrood Generating Station. Emissions 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 47.8, 1.4, and 0.06 kilotonnes respectively.

1,400

4,000

1,200 1,000

3,000

800 2,000

600

Emissions (kilotonnes)

Department of Environment and Conservation. Nalcor’s

Hydraulic Production (GWh)

facilities, and isolated diesel generating stations are

400

1,000

200

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:

2013 ENVIRONMENTAL PERFORMANCE REPORT

0

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hydraulic Production

Island Interconnected Emissions

15


ANNUAL NOX EMISSIONS 6,000

ANNUAL SO2 EMISSIONS 5.0

6,000

25

4.5 5,000

3.5 3.0 2.5

3,000

2.0 2,000

1.5 1.0

1,000

20

4,000 15 3,000 10 2,000

Emissions (kilotonnes)

4,000

Hydraulic Production (GWh)

4.0

Emissions (kilotonnes)

Hydraulic Production (GWh)

5,000

5

1,000

0.5 0

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hydraulic Production

2013 ENVIRONMENTAL PERFORMANCE REPORT

Island Interconnected Emissions

0

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hydraulic Production

Island Interconnected Emissions

16


Waste Management

POLYCHLORINATED BIPHENYLS (PCBs)

In 2013, Hydro continued to test all other equipment that

Canada in 2010 under a Section 33(2) extension permit.

PCBs are the most significant waste management issue in

was not sealed such as reclosers, voltage regulators, tap

Each year there are slight revisions to the plan as work

the electric utility industry. This substance was commonly

changer compartments, oil circuit breakers, and station

priorities change. In 2013, TRO discovered five pieces of

used in electrical equipment prior to the late 1970s, when

service transformers. In 2013, Hydro sampled 46 units, and

sealed equipment, under the extension permit, that had a

PCB production was banned. The effect of this ban on

found only one piece of equipment containing greater than

PCB concentration of 500 mg/kg or greater. They were all

Hydro and many other utilities was two-fold. The amount

50 mg/kg of PCBs; this item was subsequently removed

oil circuit breaker bushings and all five were taken out of

of PCB in-service declined as new PCB-free equipment was

and disposed of properly.

service and sent for destruction.

New federal PCB regulations, brought into effect in 2008,

Nalcor Energy Churchill Falls (NE-CF) continued to refine its

focused on the removal of higher concentration PCB

PCB phase-out program in 2013. Additional equipment and

Hydro has had a PCB management program in place since

equipment from service by planned dates, and introduced

information was added to its database to ensure that all

the early 1980s to reduce the risks associated with in-

more restrictive handling of PCB waste. The limits for

equipment 50 mg/kg and greater PCBs is removed from

service equipment containing PCBs. The earlier focus of this

identifying high-concentration PCBs were also lowered to

service by 2025.

program was to remove all items with a high concentration

any equipment having a PCB concentration greater than

(greater than 10,000 milligrams per kilogram [mg/kg])

500 mg/kg.

installed, and inventories of PCB-contaminated wastes increased as older equipment was retired.

of PCBs from service and to reduce the concentration of

NE-CF continued with its annual PCB training program, with minor updates, for all personnel handling and transporting

PCBs in larger volume oil-filled equipment to less than

In 2013, Hydro’s Transmission and Rural Operations (TRO)

PCBs. The program ensures everyone is aware of the

50 mg/kg.

division continued to follow their PCB phase-out plan for

requirements under the Transport of Dangerous Goods

sealed equipment that was submitted to Environment

(TDG) Regulations, PCB Regulations, Storage of PCB Wastes

2013 ENVIRONMENTAL PERFORMANCE REPORT

17


Regulations, Certificate of Approval for the PCB Storage Building, Equivalency Certificate, and local EMS Standard Operating Procedures.

PCB Material in Storage, Sent for Disposal and Destroyed (Bishop’s Falls PCB Waste Storage Facility) Total inventory of PCB material (50-500mg/kg) in storage

2013 Tonnes 2.3

Nalcor Energy submitted its fifth set of online PCB reports under the PCB Regulations for the year 2013 for the Bishop’s Falls PCB Storage Facility, the Churchill Falls PCB Storage Facility, and the Menihek Hydroelectric Generating Station. Reports were submitted under Sections 33(2),

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

0

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

11.7

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

1.6

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

1.1

33(3) and 37 of the PCB Regulations. Hydro operates one approved PCB waste storage facility at its Bishop’s Falls area office and inventory storage yard. See Table 1 for PCB material in storage, sent for disposal and destroyed as of December 31, 2013 at the

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

0

Table 1: PCB material in storage, sent for disposal and destroyed as of December 31, 2013 at Bishop’s Falls.

Bishop’s Falls PCB Waste Storage Facility. Churchill Falls operates one approved PCB waste storage facility. Table 2 provides an inventory of PCB material in storage, sent for disposal and destroyed as of December 31, 2013.

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

2013 Tonnes

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

0

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

0

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

0

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

0

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

14.4 0.0005

Table 2: PCB material in storage, sent for disposal and destroyed as of December 31, 2013 at Churchill Falls. 2013 ENVIRONMENTAL PERFORMANCE REPORT

18


REUSE AND RECYCLING INITIATIVES Used Oil

Location

Used Oil Type

Volume (litres)

Diesel Plants

lubricating oil

42,472

Hydroelectric Generating Stations

lubricating oil

4,893

Holyrood Generating Station (HTGS)

lubricating oil

18,890

HTGS

oil/water mixture

569,661

Bishop’s Falls

insulating oil

34,324

Churchill Falls

lubricating and insulating oil

33,845

Churchill Falls

oil/water mixture

33,290

Exploits Generation

lubricating oil

1,360

Menihek Generating Station

lubricating oil

0

Menihek Generating Station

Insulating oil

56,000

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 generated and new oil purchased. Used oil is stored in either 205 litre drums or storage tanks and is collected by a certified waste oil handler for either recycling or reuse. Table 3 summarizes used oil information by location, used oil type, and volume collected. At Hydro’s central maintenance facility in Bishop’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 2013, 23,600 litres of insulating oil taken from transformers was recycled with 10,724 litres disposed of as waste. This represents 69 per cent recycling of insulating oil at the central maintenance facility in 2013, down from 99 per cent in 2012. The amount of insulating oil disposed of as a waste will likely increase in the coming years due to the removal of oil-filled equipment with a PCB concentration between 2mg/kg and 50mg/kg; this oil cannot be reused and will have to be disposed of as a waste.

Table 3: Volumes and types of used oil collected by location. 2013 ENVIRONMENTAL PERFORMANCE REPORT

19


WOOD POLE LINE MANAGEMENT PROGRAM

treated 2,070 poles with boron rods to provide extra protection

SCRAP METAL AND BATTERY RECYCLING AND REUSE

As part of its transmission line network, Hydro manages about

and to extend the in-service life expectancy of new poles. Since

During 2013, Hydro decommissioned 151 distribution

26,000 poles of varying age. Wooden poles have an in-service

the start of the program, about 24,432 poles have been treated.

transformers, all of which contained non-PCB oil. The

lifespan of 50 years. With proper management, maintenance,

transformers were drained and sold to a transformer

and refurbishment, the in-service lifespan can be extended by

FUEL ASH DISPOSAL AT HOLYROOD GENERATING STATION

manufacturer for reuse. No voltage regulators or batteries

10 years or more. Core samples taken from some poles in 1998

During 2013, all fuel ash produced at the Holyrood

were recorded as sold in 2013.

showed the preservative retention level was not adequate.

Generating Station was disposed of in an on-site, controlled,

As a result, Hydro initiated a Wood Pole Line Management

solid waste landfill. The amount of total ash produced and

Program in 2003 and it is expected to continue as a long-term

disposed of at the landfill in 2013 was 206 tonnes, down

asset management and life-extension program. In 2013, Hydro

slightly from the 241 tonnes reported in 2012.

2013 ENVIRONMENTAL PERFORMANCE REPORT

20


Spills and Other Incidents

The very nature of Hydro’s work to generate and transmit electricity requires the safe handling and use of a variety of potential environmental contaminants such as fuel oils, lubricating oils, and chemicals. Each year, Hydro uses about 300 million litres of fuel to generate electricity. The company strives to reduce the potential for leaks and spills.

Nalcor’s lines of business had a total of 10 reportable spill

In all incidents, staff responded promptly to the spills

and leak incidents in 2013: Hydro reported five; Churchill

and leaks with spill response equipment. Staff collected

Falls reported four; and Menihek Generation reported

the contaminated materials in suitable containers for

one. The approximate volume for all reportable spills was

appropriate disposal, and where necessary, staff also

1,196 litres.

undertook appropriate sampling to ensure adequate clean-up was completed. In some incidents, the company

All but one reportable spill involved petroleum products

engaged independent site professionals to manage the spill

or its derivatives. One reportable incident at Churchill Falls

clean-up, soil sampling, and spill closure. Table 4 outlines

involved the release of 39 kilograms of refrigerant. The

the details of Nalcor’s more significant spill incidents.

Being prepared for such an incident is critical to mounting

other releases are categorized as follows:

a quick and effective response that will reduce negative

• One release accounted for approximately 910 litres of

effects on people and the environment. Nalcor Energy

glycol and water mixture

and its lines of business have developed Environmental

• Five releases involved spills or leaks of transformer

Emergency Response Plans (EERPs) to deal quickly,

insulating oil with an approximate volume of 215 litres

effectively and safely with such incidents. All personnel

• One incident involved a one litre release of lubricating oil

who handle or work around petroleum products, receive

• One incident involved a leak of approximately 50 litres

training related to the EERP and, where applicable, specific

of #6 fuel oil

operating procedures have been developed to facilitate

• One incident involved a spill of 20 litres of hydraulic oil

the safe handling of the products used.

from mobile equipment.

2013 ENVIRONMENTAL PERFORMANCE REPORT

21


Date

Source

Volume

Response/Status

March 4

Non-PCB transformer insulating oil leaked from a transformer in Happy Valley Goose Bay.

120 L

Pole containing 3 transformers cracked off due to falling ice. Oil was confirmed non-PCB. Absorbent pads and snow were used to contain and absorb the spilled oil. Contaminated materials were removed in drums for subsequent disposal at an approved facility.

April 5

Non-PCB transformer insulating oil leaked from a transformer in Happy Valley Goose Bay.

88 L

Pole containing 1 transformer cracked off when a transport truck hooked Aliant wires. Oil was confirmed non-PCB. Absorbent pads and snow were used to contain and absorb the spilled oil. Contaminated materials were removed in drums for subsequent disposal at an approved facility.

October 21

33% Glycol to water mix leaked from cooling unit piping in Churchill Falls Curling Club.

910 L

System was not checked between Friday and Monday. Glycol mix entered drains leading to the community waste water treatment system. Minimal glycol was recovered.

Table 4: Details of Nalcor’s more significant spill incidents.

TRO OIL SPILL TRENDS ANALYSIS

For example, in Hydro’s TRO Division in 2013, the identified

Nalcor continues to focus on eliminating spills and leaks

trends were weeps and leaks from oil-filled equipment in

MENIHEK ELECTRICAL EQUIPMENT REFURBISHMENT PROGRAM

from its fuel storage systems and its operating and

terminal stations. To help prevent these types of incidents,

The three power transformers and two oil circuit breakers

electrical equipment. Staff maintain detailed information

TRO Asset Managers will reinforce and promote the

(OCB) at the Menihek hydroelectric generating plant are all

related to reportable and non-reportable spills and leaks

inspection and monitoring of oil-filled equipment for leaks.

original to the plant construction and more than 50 years

and these are reviewed annually for trends and concerns.

TRO has also identified trends from leaks and spills from

old. In 2013, a transformer and OCB refurbishment program

If staff identify trends, they will consider and implement

hydraulic line failures in mobile equipment and it has a

was undertaken. Associated with the refurbishment

preventative actions to address the concerns.

program for in-depth pre-use boom and vehicle inspections.

program was the replacement of about 56,000 litres

2013 ENVIRONMENTAL PERFORMANCE REPORT

22


of insulating oil with Luminol and the replacement of

has their own spill response materials and equipment

emergency response plans. The 2013 revisions included

13 oil filled bushings. Luminol transformer fluids are

including boats and booms. The plan specifies the roles

the addition of a quick reference flowchart that outlines

biodegradable, free of carcinogenic polynuclear aromatics

and responsibilities of On Scene Commanders and their

roles and responsibilities.

(PNAs) and virtually non-toxic, thereby helping to reduce

supporting response team, as well as training and

environmental concerns about transformer oil toxicity,

plan testing, and revision requirements. The plan also

The finalization and management approval of this

spill liability, and potential disposal costs. All bushings

includes information such as potential spill sources,

plan was another completed element of the Churchill

and insulating oil were tested for PCB concentration to

personal protective equipment (PPE), Material Safety

Falls powerhouse spill response and prevention

determine the means of destruction and/or disposal.

Data Sheets (MSDSs), and ties in other Nalcor Energy

measures program.

CHURCHILL FALLS SPILL PREVENTION AND MANAGEMENT PROGRAM One of the ongoing programs in 2013 was the completion of an action plan to improve further the Churchill Falls powerhouse spill response and prevention measures. This plan maintained a target for spill prevention and response measures that the management at Churchill Falls has worked on for the past several years. This is a significant milestone because once all of the actions within this plan are completed, all identified prevention and response efforts will have been implemented. In 2013, stakeholders within the corporation and an independent consultant reviewed Nalcor’s River and Reservoir Spill Response Plan. The response plan was revised using the National Standard of Canada, “CAN/ CSA-Z731-03, Emergency Planning for Industry,” and reflects evolving needs within NE-CF. The plan uses local resources, but provides for the opportunity to call in external resources if required. NE-CF 2013 ENVIRONMENTAL PERFORMANCE REPORT

River Spill Responders train at the Churchill Falls Tailrace using peat moss, a commonly used method to simulate oil in training exercises. 23


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.

Figure 2: Environmental Site Assessment Process.

Completion Remediation Phase Assessment Phase Communication and Input Reporting

Regulator Input

Remediation Action Plan

List of Sites

Criteria

Remediation Contract Management

Criteria

Phase I

Phase II

Risk Assessment

Phase III

Remediation

Regulator Input

Criteria

No Further Work Required

Notification to Stakeholder

2013 ENVIRONMENTAL PERFORMANCE REPORT

Annual Report

Regulator Input

No Further Work Required

Confirmatory Sampling

Notification to Stakeholder

No Further Work Required

Notification to Stakeholder

24


The objectives of the ESA program are to:

In 2013, the Churchill Falls ESA program continued at seven

The ESA program continues to be successful in identifying

• Evaluate the potential for environmental contamination

sites (five sites were located in remote areas while the

and managing the potential environmental contamination

• Undertake sampling to characterize and delineate

other two sites were located close to the town site) with

associated with Nalcor’s past and present operations.

any contamination

the following highlights:

• Assess the potential risks and liabilities associated with

• Ongoing ground water monitoring and free product

any contamination identified

recovery at three sites

Phase l — review of information and records,

• Identify sites requiring monitoring or remediation

• Additional delineation with monitoring well installations

site visit and interviews.

• Develop & implement remediation programs

at one site

when necessary.

• Phase I & 2 and hazardous materials survey at one site

Phase II — characterization of a site for

• Stain removal and capping at one site

physical aspects and potential contamination.

Risk-Based Corrective Action (RBCA) —

a methodology that identifies a site-specific

Arising from the recommendations of previous ESA-related

• Remediation of affected soil at one site

work at Hydro, the following are noteworthy points related

• Monitoring well decommissioning at a few locations.

to the 2013 ESA program: • Groundwater and/or soil vapor monitoring was

Nalcor completed a Phase II Environmental Site

target level of contamination that has an

completed at five sites

Assessment on eight Exploits Generation facilities located

acceptable risk to human health.

• Additional

delineation

to

supplement

previously

throughout central Newfoundland in 2013. Staff also

completed Phase II assessments were completed at

completed additional Phase II ESA investigations as a

Remediation — site cleanup to a specified

four sites

follow up to previous investigations. During 2013, staff

regulatory standard.

• Free product assessment and recovery was completed

carried out a hazardous materials abatement program

at one site

at multiple facilities to address asbestos and lead paint

• Phase II ESAs were completed at two sites

issues. The most significant abatement program occurred

• Decommissioning of ground water monitor wells was

in the former Grinder Room in preparation for the

completed at one site.

eventual demolition of the building.

2013 ENVIRONMENTAL PERFORMANCE REPORT

25


REMOVAL OF DRILL CUTTINGS AT PARSONS POND 2013 AS PART OF PROJECT RAINBOW REMEDIATION

Slurry conditions in two of the pits at the Finnigan Site meant

While the contractor was hauling material, a second

that soil samples couldn’t be taken from the bottom as was

excavator was set up at the regional landfill to grade

In December 2013, the company awarded a contract for

done at the Seamus Site. In 2014, ESD will revisit the site to

material that was removed from the Seamus and Finnigan

the removal of an estimated 300 dump truck loads of

determine if samples can be collected once the area has dried.

Sites (Figure 7). The regional waste management authority

drill cuttings at the Project Rainbow drill sites at Parsons

was very pleased with the condition of the landfill upon

Pond. Drill cuttings were stored in pits at two sites: four

At each site, once all visible drill cuttings were removed, the

completion of the work and no additional concerns

pits at the Seamus Site at Parsons Pond Head and three

area was back bladed and graded (Figure 6). Some material

regarding the landfill were identified.

pits at the Finnigan Site at Five Mile Road (Figure 3). A

was hard to grade because it was frozen in large chunks;

preconstruction orientation session was held between

some additional grading may be required in 2014.

Hydro’s Environmental Services Department (ESD) and the contractor on December 9, 2013 and excavation and removal of materials began on December 10, 2013. Excavation and removal of drill cuttings first began at the Seamus Site (Figure 4). This site is located 23 kilometers from the waste disposal site and would take longest to complete. Due to the time of year, excavated materials were nearly frozen during removal. This meant additional mitigation was not required inside the trucks to prevent liquids spilling from the vehicles on route to the landfill. A total of 160 loads were removed from the Seamus Site over six days. Work at the Finnigan Site (Figure 5) began on December 17 and was completed on December 22, 2013. Due to slurry conditions in two of the pits, some over-excavation was required to ensure complete removal of all drill cuttings. A total of 188 loads was hauled from this site, making the overall number of loads at 348. Figure 3: Project Rainbow Drill sites. 2013 ENVIRONMENTAL PERFORMANCE REPORT

26


Figure 4: Pits at Seamus Site before water removal.

Figure 5: Pits at the Finnigan Drill Site.

Figure 6: Graded area of a pit at the Seamus Site. Further grading may be needed in 2014.

Figure 7: Dumped drill cutting graded at the waste management site.

2013 ENVIRONMENTAL PERFORMANCE REPORT

27


Species, Habitat Diversity, and Historical Resources

FISHERIES COMPENSATION WATER RELEASE

at all fisheries compensation facilities was about $4.5

Surveys carried out in late June 2013 found a total of 171

In 2013, as part of long-term agreements with the

million. This resulted in a potential increase of 86 tonnes

nests on the three transmission line corridors in Labrador.

Department of Fisheries and Oceans, Hydro released

of sulphur dioxide emissions and 20,700 tonnes of carbon

On the island transmission grid, 29 active nests were

approximately 126 million cubic metres of water at its

dioxide emissions.

identified on various structures. The work crews received

fisheries compensation facilities. The water released

the data immediately following completion of the surveys

at White Bear River, Grey River, Granite Canal, Upper

RAPTOR PROTECTION PROGRAM

to allow for planning of maintenance activities on these

Salmon, and Hind’s Lake was performed at established

For more than 20 years, Hydro has managed a raptor

transmission lines.

times throughout the year for habitat protection and

protection program. In keeping with Nalcor’s EMS and the

fish migration.

corporate Environmental Policy and Guiding Principles,

Structures with active nests are avoided until after the

staff with Hydro’s Environmental Services Division

breeding season, usually after August 15. This allows line

Because of the isolated nature of the island’s electrical

survey transmission lines in Labrador for the presence of

crews to avoid potential negative effects on these species

system, lost hydroelectric energy production associated

active raptor nests. This is an annual survey undertaken

during the critical periods within the breeding regime,

with these water releases under normal conditions must

in consultation with the provincial Department of

which in turn ensures compliance with wildlife legislation

be replaced by thermal generation from the Holyrood

Environment and Conservation, Wildlife Division. These

regarding migratory birds in Newfoundland and Labrador.

Generating Station. The amount of thermal production

nests are primarily osprey, with smaller numbers of

required to offset the amount of water released in 2013

northern ravens, red tailed hawks, and bald eagles.

PRESERVING THE ATLANTIC SALMON RUN

was just over 25 Gigawatt Hours (GWh). When the 2013

Surveys are undertaken early in the egg laying stage of the

Exploits Generation staff manage a very successful Atlantic

thermal conversion rate and average cost of fuel are

breeding season at which time nests that would be active

salmon diversion system on the Exploits River in Central

considered, the equivalent value of the water released

for the year are usually occupied or show signs of occupancy.

Newfoundland in partnership with the Department of

2013 ENVIRONMENTAL PERFORMANCE REPORT

28


Fisheries and Oceans, fish biologists, and the Environmental

400 m long, 40 m wide and roughly 10 m deep power

Resource Management Association (ERMA). One Atlantic

canal to replace the aging penstocks. Concurrent with

LOWER CHURCHILL PROJECT ARCHAEOLOGICAL RECOVERY AT MUSKRAT FALLS

salmon enhancement project, started in the early 1960s, has

the construction of the power canal was the design and

When the Lower Churchill Project began, Nalcor Energy

seen the natural adult salmon run grow from 1,200 strong to

implementation of a fish protection system to assist in the

committed to carrying out all project work in a manner

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

removal of smolt trapped in the power canal. At the core

that respects the culture and heritage of the area. The

of the fish protection system is a 185 m long, 2 m deep

protection and preservation of historical resources in the

Every year, spring runoff brings adult salmon that have

floating louver system that exploits behavioral guidance

project area – including any archaeological findings that

migrated downstream from their spawning grounds.

principles to direct smolt toward a 40 m long concrete and

would provide a glimpse of the past – was a key part of

Some of these adult salmon will enter the power canal

wood fish bypass structure that diverts guided fish back to

that commitment.

at the Grand Falls hydroelectric plant. Barriers prevent the

the Exploits River to continue their out-migration. Through consultations and interviews during the

salmon from entering the power generation turbines once they reach the power canal. Without this assistance, they

In 2012, the louver system was replaced with a new

environmental assessment process, the team learned

could be delayed in their annual migration downstream.

system based on the same design principles of the former

about various Aboriginal peoples’ historic use of the

system. Studies undertaken in 2013 to document the

land near Muskrat Falls. They recognized the possibility

Exploits Generation staff begin visually monitoring the

effectiveness of the new louver system found its guidance

that important cultural remnants could be buried within

power canal at the end of April when water temperatures

efficiency to be the same or better than the performance

the proposed project footprint, and determined to better

begin to rise. Through a cooperative effort started in

of the former system.

define the true archaeological potential of the site.

remove salmon from the power canal and transport

Upgrades continued in 2013 with the replacement of the

The Environmental and Regulatory Compliance Manager

them downstream.

fish bypass entrance system. Installed in 1997, the existing

with the Lower Churchill Project currently manages the

system was based on a preliminary design concept with an

ongoing archeological assessment and recovery at Muskrat

In 2013, approximately 33,000 adult salmon migrated

understanding that further modifications and testing of the

Falls. Once Nalcor became aware that historical resources

upstream of Bishop’s Falls into various tributaries of the

design would be required to optimize its performance. In light

may be present, the company needed to determine the

Exploits watershed. About 600 adult fish passed the

of this, the system was installed using temporary materials

actual extent of those resources within the project footprint.

Millertown dam in the upper reaches of the Exploits River.

which simplify the completion of any reconfigurations required

It was extremely important to Nalcor that the recovery of

for system optimization. In 2013, the company undertook to

any archaeological resources was completed before site

FISH BYPASS UPGRADES

remove the existing temporary materials and replace them

work could begin in a particular area.

Over its existence, the Grand Falls hydroelectric plant has

with new material to create a more permanent installation.

undergone various upgrades and expansions, the most

Additional studies are planned for 2014 to document the

In 2012, Nalcor hired Stantec Consulting Ltd. to complete

significant occurring in 1997 with the construction of a

effectiveness of the new fish bypass entrance system.

further assessment and move forward with excavation

1997, local fishermen and Exploits Generation employees

2013 ENVIRONMENTAL PERFORMANCE REPORT

29


of the identified archaeological sites. The process began

Through the recovery work that was carried out over the

Although the recovery work has now been completed in

with a desktop review for historic resources potential.

past two years, archaeologists have uncovered significant

the south area of the river, Stantec will continue to record

High potential areas were flagged for field testing. Based

evidence of past occupation by Aboriginal peoples in the

and analyze all remaining material using radiocarbon

on this work, known sites were identified within the

area. More than 40,000 artifacts were recovered, including

dating and mapping. It will then hand all findings over to

project footprint.

hearths and pit features, stone tools, burnt food, bone, and

the Provincial Archaeology Office for further examination.

charcoal as well as some ceramics, representing ancient In 2012, excavation began on the south side of the

Amerindian campsites in the area dating back to between

Future archaeological recovery work is planned in 2014 and

river in the area to be developed for the power house

2,000 and 3,500 years ago.

2015 for additional sites in the reservoir area of the project.

and spillway. The crew returned to the field in 2013 for additional recovery work, including eight new sites on the North Spur. Working in a series of grids, a team of three archaeologists and their field staff excavated areas by hand, then carefully cleaned and stored all material. Only when all required excavation was complete could equipment and machinery be cleared to operate in the identified areas.

2013 ENVIRONMENTAL PERFORMANCE REPORT

30


Alternative Energy

WIND PROJECTS PROVIDE GREEN ENERGY TO ISLAND CONSUMERS

• Reduction in fuel consumption by about 300,000 barrels

System (EMS), to supplement the diesel requirements of

• Reduction in sulphur dioxide emissions by nearly

the island community.

In 2009, in an effort to reduce emissions from burning

700 tonnes

fossil fuels, Hydro increased its renewable generation.

• Reduction in carbon dioxide emissions by nearly

This unique project has attracted attention from around

Hydro has power purchase agreements for 54 MW of clean,

160,000 tonnes

the world. Hydro continues to promote the renewable

renewable wind energy on the island of Newfoundland.

• Generation of green energy for the equivalent of up to

energy and energy storage benefits of the project through

The integration of wind power in Newfoundland has

12,700 homes.

presentations at various workshops and conferences.

WIND-HYDROGEN-DIESEL ENERGY PROJECT

In 2013, operation of the EMS resulted in a significant

While the province has an abundance of renewable

reduction in diesel fuel consumption and in a continued

Wind generation is an environmentally-friendly, pollution-

resources, many coastal, isolated communities rely on

focus on the collection of valuable operational data. Data

free and endless source of energy. It is clean and

diesel-fueled generation systems for electricity generation.

analysis has led Nalcor Energy to proceed with Phase II

leaves a small environmental footprint on the province.

In its efforts to reduce reliance on fuel-fired generation,

of the project in 2014. The Atlantic Canada Opportunities

On the island, wind generation will help reduce fossil-

Newfoundland and Labrador Hydro (Hydro) has built one

Agency, through its Atlantic Innovation Fund, will support

fired generation at Hydro’s thermal generating station

of the first projects in the world to integrate generation

Phase II, a five-year project that will see the addition

in Holyrood.

from wind, hydrogen, and diesel in an isolated electricity

of a Hydrogen Fuel Cell to the system, along with an

system. The Wind-Hydrogen-Diesel Energy Project in

operational phase and a commercialization phase.

broadened Hydro’s energy mix and allowed the company to continue providing electricity at a reasonable cost.

On average, the annual environmental benefits from the

Ramea is a research and development project using

wind farms in St. Lawrence and Fermeuse are:

renewable energy sources and the Energy Management

2013 ENVIRONMENTAL PERFORMANCE REPORT

31


ALTERNATIVE ENERGY STUDY UNDERTAKEN IN COASTAL LABRADOR From 2012 to 2015, Hydro will complete further analysis of possible hydro generation sites and wind power potential in this region. The hydroelectric study is focused on possible hydro electric sites near Mary’s Harbour, Port Hope Simpson, Charlottetown, Makkovik, and Hopedale. The wind resource study is focused on wind power potential near Cartwright, Makkovik, Hopedale, and Nain. This initiative is guided primarily by the two main objectives outlined in the Newfoundland and Labrador Energy Plan: the protection of the environment through the reduction of emissions and the development of energy projects in the best long-term interests of residents of the province.

2013 ENVIRONMENTAL PERFORMANCE REPORT

32


Energy Efficiency and Conservation

INTERNAL ENERGY EFFICIENCY

improving occupant comfort (no new equipment was

energy consumption categories at these sites are heating

Offices

installed; it was just controlled better). Their efforts

and lighting. It has been a challenge to find cost-effective

Hydro is always looking to reduce energy waste in

proved to be effective, with 2013 being the year that HYP

commercial control solutions for these sites; however,

their facilities, and its main office, Hydro Place (HYP),

used the least amount of electricity since tracking began

Hydro is continually evaluating proposed technologies to

is no exception. In 2012, the Internal Energy Efficiency

in 2007. HYP used 420,000 kWh less electricity than the

meet their heating and lighting control requirements.

Advisor (IEEA) identified a number of energy conservation

previous year, which is equivalent to what 17 electrically

opportunities (ECOs) relating to the control of heating,

heated island homes use in a year, and it has reduced

Hydro’s vision for these types of facilities is to install small

ventilation, and air conditioning (HVAC). Over the years,

consumption by 882,000 kWh since 2007. All electricity

scale building automation systems (BASs) which will be

the team responsible for HYP’s operation have consistently

consumption was normalized for weather. The focus

linked via a network, and observed and/or controlled via

maintained a focus on reducing HYP’s energy consumption

on further energy consumption reductions at HYP will

one location. With that said, instead of waiting for an

and improving facility performance. In addition to energy

continue, while several of the regional offices have been

ideal solution, Hydro has pushed forward to do what is

savings, the ECOs have several other non-energy benefits,

selected to undergo similar HVAC optimization initiatives

reasonable to achieve energy savings at these locations.

some of which include increased occupant comfort, more

along with full lighting retrofits over the next two years.

The company is installing stand-alone low voltage

reliable operation of the HVAC system, and reduced wear

control circuits with programmable thermostats so that Other

night setbacks are employed. This initiative is laying the

Hydro’s line depots and other support buildings are

foundation for the company to realize maximum energy

In 2013, the HYP facility operations team, with help

relatively small structures and can have infrequent

savings in the future through the installation of small-

from the IEEA and controls contractors, placed a focus

occupancy; however, their annual consumption is more

scale BASs and by networking the facilities together.

on optimizing the operation of HVAC equipment while

than an average electrically-heated home. The largest

and runtime on HVAC equipment.

2013 ENVIRONMENTAL PERFORMANCE REPORT

33


To reduce energy consumption associated with lighting,

fuel transfer line to be more than 980,000 kWh. In 2013, an

placed on identifying ways to reduce station service

staff are retrofitting T12 fluorescent fixtures with T8

operation procedure was formalized with the sole purpose

at these sites. The two largest energy consumption

ballasts and lamps. In 2013, heating setback control and

of reducing energy consumption related to this system.

categories at these sites are lighting and pumps and

lighting retrofits were completed at three of the company’s

fans. Hydro has planned capital projects to install variable

locations (Cow Head Line Depot, North Plant Depot, and

The Environment and Long Term Asset Planning

frequency drives on radiator fans over the next two years

Bishop’s Falls Carpenter Shop).

departments for EHTS, along with Hydro’s Internal Energy

to reduce station service loads significantly.

Efficiency Advisor, developed and submitted a 2013 EMS GENERATION STATIONS

target to create an efficient control procedure for the new

In 2013, the engine hall lighting at Paradise River Diesel

Thermal Generation

heat trace system. HTGS personnel formalized a control

Plant was retrofitted from metal halide fixtures to T5

Holyrood Thermal Generation Station (HTGS) is used to meet

procedure that has temperature set points based on the

fluorescent fixtures with occupancy sensors. Control of

increased load on the island system during the heating season.

operating season and fuel properties. The new procedure

ventilation fans was improved at several sites to reduce

It is a large and complex site, with several support buildings.

has two seasonal set points, 20°C (68°F) from October 1st

unnecessary fan operation, and metal halide exterior

Its marine terminal receives number 6 fuel shipments from

to May 1st (operating season), and 10°C (50°F) outside of

wall packs were replaced with LED wall packs. In 2013,

large tanker ships, and transfers the fuel shipment to onsite

that time period.

Hydro chose an LED fixture for use in engine hall high bay

storage tanks via a 1 km, 18 inch pipe line.

applications. The Charlottetown Diesel plant will be the The new efficient control procedure for the EHTS will result

first site to install the new LED fixtures.

The entire length of the pipeline is fitted with an electric

in 344,000 kWh of annual electricity savings; this is equal

heat trace system (EHTS) which keeps the contents of the

to what 13 electrically-heated island homes would use in

Hydraulic Generation

pipe at 60°C (140°F) year-round to maintain an acceptable

a year. The company has the potential to reduce further

The company’s hydraulic generation stations vary greatly

viscosity for pumping. Historically, the site only receives

energy consumption associated with the EHTS by more

from large hydro plants to mini hydro and from manned

tanker shipments in an eight-month window, and within

than 200,000 kWh, when we control the temperature set

stations to unmanned ones. There are also some very

that timeframe, there can be several weeks to a month in

point with actual deliveries, as opposed to by season. This

remote structures with infrequent occupancy. Three of

between deliveries. The EHTS provides an opportunity to

will require further investigation to assess requirements

the major energy consumption categories at these sites

reduce energy consumption significantly just by reducing

for implementation.

with significant energy savings potential are: electric trace

the temperature set point of the EHTS outside of delivery season, and in between deliveries.

heating, space heating, and lighting. Isolated Diesel Generation Hydro operates diesel plants in more than 20 isolated

Staff identified an opportunity to reduce electricity

In 2006, a consultant’s energy audit of various support

communities. Wasted electricity at Hydro’s diesel

consumption associated with space heating in the penstock

buildings and systems at HTGS calculated the annual

generation stations directly relate to increased diesel

inlet structures at the Bay d’Espoir plant. These structures

electricity consumption associated with the EHTS for the

consumption and emissions. A strong focus has been

have very infrequent occupancy, and were equipped with

2013 ENVIRONMENTAL PERFORMANCE REPORT

34


high wattage electric unit heaters with a knob on the back

reports identified no cost recommendations for electricity

of the heater to control temperature. Often, employees

savings and provided high-level opportunity assessments

would turn up a heater on a cold day, and then it would

for possible retrofit projects to complete through ISBEP.

be left at that temperature indefinitely. These types of

The Program provides a custom approach that will allow

heaters can often be found operating in summer months.

larger commercial customers to explore a wide range of

In 2013, heater controls were installed to maintain the

technologies suitable to their own operations, and let small

space temperature in these structures at the precise,

business to focus in on smaller more common projects

minimum temperature required, and automatically reset

and technologies.

to that minimum temperature, after a delay, even if the heaters are turned up.

Hydro employees have completed walkthrough audits on commercial facilities across many sectors and

Transmission & Distribution Facilities/Systems

currently there are projects involving lighting, process

Equipment used at terminal stations is reviewed continually

improvements, refrigeration, and small equipment

to improve efficiencies. Significant electricity loads at these

upgrades. Hydro has taken an aggressive approach to

sites are lighting, heating, and compressed air systems.

engagement with customers on this program, conducting

In previous years, line selection for distribution and

in person cold calls for walkthroughs, and providing

transmission systems was based on reducing transmission

significant incentives to ensure customers take action.

losses. While these projects have been executed with the intention of improving overall efficiency of the system,

The program components include financial incentives

there is a gap in the communication of electricity savings

based on energy savings, and other supports to assist

associated with these projects. A strong focus in the coming

in opportunity identification and evaluation. Financial

years will be to ensure electricity savings associated with

incentives are based on the lower of $0.4/kWh first

any future transmission/distribution projects are properly

year savings or 80% of capital project costs. By the end

captured and reported.

of 2013, program staff had installed 2,176 residents and commercial kits with a significant savings in energy. In

ISOLATED SYSTEMS BUSINESS EFFICIENCY PROGRAM (ISBEP)

2014, the program will continue to focus on more ways

The ISBEP is offered to commercial customers in Hydro’s

to save.

isolated diesel and L’Anse aux Loup systems. In 2013, more than 40 on site facility energy walkthroughs were conducted with reports submitted to customers. These 2013 ENVIRONMENTAL PERFORMANCE REPORT

35


Commited to Our Communities

Nalcor is dedicated to the promotion of environmental awareness and preservation of Newfoundland and Labrador’s unique environment. A priority for Nalcor is to build and cultivate partnerships with other agencies and organizations to achieve common environmental objectives. These partnerships maximize human and financial resources to generate a body of knowledge and experience that can be used for environmental decisionmaking in a variety of applications.

Bay and Flower’s Cove in 2013 had a different focus, they

Flower’s Cove – Sandy Cove Provincial Ecological Reserve Restoration

all shared a common goal, as do all Green Teams, which

In 2013, the Flower’s Cove Green Team worked with

is to provide meaningful youth employment opportunities

sponsors Newfoundland and Labrador Hydro and the

with an environmental and cultural focus.

Limestone Barrens Habitat Stewardship Program to protect

province. Though the two projects in Happy Valley-Goose

the vulnerable and ecologically important limestone Happy Valley–Goose Bay Team – Illegal Dumping Prevention and Mud Lake Walking Trail Development

barrens. The team used GPS technology to plot the three-

The Happy Valley-Goose Bay Green Team worked with

Cove Lions Club; this information will help Hydro avoid

Healthy Waters Labrador to identify illegal dumping sites in

critical habitat during future pole repairs and replacements.

the Upper Lake Melville area. They created brochures and

The team worked to restore the natural slope of the

other tools to raise awareness of how to properly dispose

land, which was disrupted many years ago when heavy

of household items. The team also worked with the Town

equipment damaged the landscape. The barrens were

CONSERVATION CORPS NEWFOUNDLAND AND LABRADOR

of Happy Valley-Goose Bay to continue beautifying and

also greened as the team collected more than 20 bags of

Since 1996, Nalcor and Hydro have supported 25 Green

restoring the Mud Lake walking trail. This work included

garbage and debris. The team carried out public education

Teams through Conservation Corps Newfoundland and

spreading gravel, cutting brush, and creating viewing areas

to educate the community on the need to protect the

Labrador’s Green Team Program, employing almost 100

of the beautiful Churchill River. Working with two different

limestone barrens. The team also worked with researchers

youth and contributing about $340,000 to support local

organizations gave the team valuable work experience

from Memorial University to tag, identify, and count rare

employment opportunities for youth throughout the

and offered project variety.

flora and important fauna on the limestone barrens.

2013 ENVIRONMENTAL PERFORMANCE REPORT

phase telephone poles from Flower’s Cove to the Sandy

36

Nalcor Energy - 2013 Environmental Performance Report