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NALCORENERGY.COM

2010 Environmental Performance Report NEWFOUNDLAND AND LABRADOR HYDRO

CHURCHILL FALLS

OIL AND GAS

LOWER CHURCHILL PROJECT

BULL ARM FABRICATION


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL POLICY AND GUIDING PRINCIPLES All Nalcor Energy companies will

Continuously Improve

help sustain a diverse and healthy

• Audit facilities to assess potential environmental risks and identify

environment for present and future

opportunities for continual improvement of environmental performance.

Newfoundlanders and Labradorians by maintaining a high standard of environmental responsibility and performance through the

• 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

implementation of a comprehensive

their jobs and ensure that they have the skills and knowledge necessary

environmental management system.

to conduct their work in an environmentally-responsible manner.

The following guiding principles set out Nalcor Energy companies’

Comply with Legislation

environmental responsibility, actions and decision-making:

• Comply with all applicable environmental laws and regulations, and participate in the Canadian Electricity Association’s ‘Sustainable

Prevention of Pollution

Electricity’ Program.

• Implement reasonable actions for prevention of pollution of air, water,

• Periodically report to the Board of Directors, Leadership Team,

and soil, and minimize the impact of any pollution which is accidental

employees, government agencies, and the general public

or unavoidable.

on environmental performance, commitments and activities.

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

• Monitor compliance with environmental laws and regulations,

• Use energy as efficiently as possible during the generation,

and quantify predicted environmental impacts of selected activities.

transmission, and distribution of electricity, and the operation of its

• Respect the cultural heritage of the people of the province and

facilities, and promote efficient use of electricity by stakeholders.

strive to minimize the potential impact of company activities

• Maintain an adequate level of emergency preparedness in order

on heritage resources. 

to respond quickly and effectively to environmental emergencies. • Recover, reduce, reuse and recycle waste materials whenever feasible.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ABOUT NALCOR ENERGY Nalcor Energy’s business includes the

Hydro has an installed generating capacity of 1,637 megawatts (MW).

development, generation, transmission

In 2010, more than 80 per cent of this energy was clean, renewable,

and sale of electricity; the exploration,

hydroelectric generation. Hydro’s power-generating assets consist of nine

development, production and sale of oil and gas; industrial fabrication; and energy marketing. Focused on sustainable growth, the company is leading the development of the province’s energy resources and has a corporate-wide framework which facilitates the prudent management of its assets while continuing an unwavering focus on the safety of its workers, contractors and the public. Nalcor currently has five lines of business: Newfoundland and Labrador Hydro, Churchill Falls, Oil and Gas, Lower Churchill Project, and Bull Arm Fabrication.

Newfoundland and Labrador Hydro As the province’s main electricity provider, Hydro is focused on providing a safe, reliable and cost-effective electricity supply to meet current electricity needs and accommodate future growth. Hydro’s primary business is to generate and deliver electricity in Newfoundland and Labrador to utility, industrial, residential and commercial customers in over 200 communities across the province.

hydroelectric plants (939 MW), one oil-fired plant (490 MW), four gas turbines (150 MW) and 25 diesel plants (58 MW). In addition, Hydro has entered into a number of power purchase agreements with non-utility generators to supplement its own generation capacity, including two wind developments on the island (54 MW). Hydro is focused on strengthening and ensuring the integrity of its core business of power generation, transmission and distribution. The company’s goal of business excellence focuses on delivering value to its customers and executing its strategy with an uncompromising commitment to safety, environmental stewardship, operational excellence, its people and the communities where it operates.

Churchill Falls Nalcor’s

flagship

operation

in

Churchill

Falls is one of the largest underground hydroelectric powerhouses in the world with a rated capacity of 5,428 megawatts (MW). The Churchill Falls generating station provides clean, renewable electricity to millions of consumers throughout North America.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ABOUT NALCOR ENERGY The majority of that electricity is sold to Hydro-Québec through a long-term

an environmentally sustainable way, while also exporting electricity to other

power purchase agreement, with the remainder servicing the electricity

jurisdictions where the demand for clean, renewable energy continues to grow.

needs on Labrador’s interconnected electricity system. Churchill Falls focuses on safety excellence, delivering reliable electricity to

Bull Arm Fabrication

customers and ensuring future generations benefit from this world-class

The Bull Arm Fabrication site is Atlantic Canada’s largest fabrication site.

resource through long-term asset management.

Close to international shipping lanes and Europe, this site has unobstructed, deep water access to the Atlantic Ocean. This world-class facility spans over 2,560 hectares and has integrated and comprehensive infrastructure

Oil and Gas

to support fabrication and assembly in three project areas simultaneously,

Nalcor is currently a partner in three developments in the Newfoundland

in three separate theatres: Topsides Fabrication and Assembly; Drydock

and Labrador offshore oil and gas industry: the Hebron oil field,

Fabrication and Construction; and the Deepwater Site. 

the province’s fourth offshore oil project; the White Rose Growth Project; and the Hibernia Southern Extension.

Lower Churchill Project The lower Churchill River hydroelectric resource is the most attractive undeveloped hydroelectric project in North America and is a key component of the province’s energy warehouse. The Project’s two proposed installations at Gull Island and Muskrat Falls will have a combined capacity of over 3,000 megawatts and can provide 16.7 terawatt-hours of electricity per year. This clean, stable, renewable electricity provides the opportunity for Newfoundland and Labrador to meet its own domestic and industrial needs in


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2010 ENVIRONMENTAL PERFORMANCE REPORT

MESSAGE FROM THE PRESIDENT AND CEO Nalcor

Energy’s

Annual

Environmental

Over the years, our Environmental Performance Reports have summarized

Performance Report provides an update to our

environmental initiatives and activities driven by Newfoundland and

stakeholders on our environmental activities.

Labrador Hydro (Hydro) and Churchill Falls, and most recently, the

This report highlights our environmental

addition of our various lines of business. Our employees in Oil and Gas,

accomplishments, ongoing commitment to

Lower Churchill Project, Bull Arm Fabrication and other energy activities

the environment, environmental partnerships

within Nalcor, are taking a lead role in promoting and moving forward on

and energy conservation activities. Areas of

important environmental initiatives. We feel it’s important to report on their

improvement are also identified through this

efforts as well through the Environmental Performance Report.

report to further our commitment to being an environmental leader.

Focusing on how to continually improve environmental performance is a key part of Nalcor Energy’s second corporate goal: Environment. To drive

Through our Environmental Performance Reports, Nalcor Energy and its

this performance, Nalcor chose the ISO 14001 Certified Environmental

lines of business demonstrate not only the commitment within Nalcor

Management Systems (EMS), which provides a framework for an

to environmentally sound practices and good stewardship of our natural

organization’s environmental responsibilities and is an integral component

resources, but also our commitment to ensure that we report on our

of the organization’s business operations. Nalcor’s EMS governs the

environmental activities to stakeholders.

environmental activities of its electricity businesses — Hydro and Churchill Falls – both of which are ISO 14001 certified.

Over the last few years, we’ve made great achievements in our environmental performance, while maintaining the safe and reliable

In 2010, for a third consecutive year, Churchill Falls successfully completed

delivery of energy to residents of Newfoundland and Labrador. Ensuring we

100 per cent of its EMS targets and milestones. Hydro also exceeded its EMS

practice and promote safety is our top priority, but it is also important that

targets, completing 99 per cent of its targets in 2010.

we respect our environment. Our commitment to being an environmental leader helps ensure a healthy and sustainable environment for future

Nalcor has also committed to use the EMS platform for its other lines of

generations of Newfoundlanders and Labradorians.

business, and is developing an EMS structure to extend across the company’s operations. Based on the past 10 years and the successes of the EMS at Hydro and Churchill, we’re looking at how the elements of the standard are


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2010 ENVIRONMENTAL PERFORMANCE REPORT

MESSAGE FROM THE PRESIDENT AND CEO applied in the existing operations and how they can be applied to our other

Our environmental commitment to sustainable

lines of business. This is a system which can be applied to any part of our

practices into our operations is demonstrated

business - it becomes a standard way of doing business.

throughout the company’s activities. We have integrated initiatives in alternative energy,

An important step in implementing an EMS across Nalcor’s other lines

energy conservation and community partnerships

of business is to complete the appropriate gap analysis, which will help

into our operations throughout the province.

identify the current state and potential areas for improvement. This exercise

We also take very seriously our responsibility

will help lines of business set and meet future environmental targets.

to preserve sensitive habitats and vegetation and make every effort to ensure minimal

In 2009, a gap analysis was completed for Menihek operations and actions

environmental impacts through our operations.

were identified to implement Nalcor’s ISO 14001 EMS. Nalcor anticipates that by 2013, Menihek’s EMS will be in compliance with the ISO 14001 standards.

I am proud of the environmental successes we have achieved and grateful to our dedicated team

Exploits Generation completed a similar gap analysis in 2010. From 2011 to

of employees for the positive contribution they

2013, Exploits will complete the elements of its gap closure plan, focusing

have made to help protect our environment. Led by

primarily on compliance and prevention of pollution. Nalcor Energy Oil and

the outstanding efforts of our Environmental Services

Gas will also develop an ISO 14001 compliant EMS, and by 2013 anticipates

Departments, and guided by our Environmental

completing development of all required elements. The approach to

Management Systems, we will continue to improve our

developing EMS structures for each of these lines of business is to first

operational and environmental performance. 

focus on areas with the highest risk, such as aspects of the operations with potential for significant impact on the environment, environmental emergency response and compliance with regulatory requirements. Implementing the EMS across Nalcor isn’t only about being an environmental leader, it’s also about sound business practices. This is a good basic management system, the aspects of which can be applied to any part of the business.

Ed Martin | PRESIDENT AND CEO


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2010 ENVIRONMENTAL PERFORMANCE REPORT

2010 HIGHLIGHTS Newfoundland and Labrador Hydro

Churchill Falls

The Ramea Wind-Hydrogen-Diesel project continued making progress in

Nalcor Energy Churchill Falls continued with their multi-year Environmental

2010. Success of the proposed project will put Hydro in a leading position

Site Assessment (ESA) Program, which involved the completion of ESAs

in the Canadian and North American electrical industry with respect to

and on going site remediation. This work included three Phase Two ESAs

the ability to develop and implement a renewable energy supply to serve

completed at priority sites, additional delineation and/or groundwater

isolated and remote areas.

monitoring undertaken at four sites, and site remediation (i.e. free product recovery) undertaken at three sites.

In 2010, the project team was busy with commissioning activities. Once commissioning is completed and the project is placed in service,

As a follow-up to the recommendations of the Environmental Assessment,

the project team will transition to the operations phase. Nalcor’s Business

Human Health and Ecological Risk Assessment completed in 2005, fish and

Development team is working on an operations plan that includes specific

sediment monitoring at Twin Falls was completed again in 2010.

objectives and strategic initiatives around safety, environment, business

The original recommendation was to complete periodic re-sampling of

excellence, community and people.

fish for Polychlorinated Biphenyls (PCBs) and of sediment for the presence of Total Petroleum Hydrocarbons (TPH) and PCBs from Bonnell Creek. The recommended schedule for sampling was 2006, 2010 and every five years thereafter until fish tissue concentrations of PCBs are below site specific target levels. The 2010 sampling results indicated slight increases in some of the parameters of concern and the consultant has recommended that additional sampling be undertaken in 2 to 3 years, to further assess this trend.

Oil and Gas In 2010, Nalcor Energy undertook an extensive environment approval process for the Parsons Pond onshore exploration project on the province’s


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2010 ENVIRONMENTAL PERFORMANCE REPORT

2010 HIGHLIGHTS west coast. Nalcor followed all necessary compliance procedures and

This analysis will be focused on identifying any disruption in caribou

ensured all necessary permits were in place before the drill site and access

movement in the area that may be attributed to project activities; and,

road construction began. • Nalcor also committed to two helicopter surveys to monitor caribou At the request of the Minister of Environment and Conversation,

presence in the study area. The surveys would be completed by Nalcor

Nalcor submitted an Environmental Preview Report (EPR) in January 2010.

and provincial wildlife personnel. The purpose of these surveys

After review of this report by an Environmental Assessment Committee,

is to determine if the number of caribou viewed in targeted areas

the Minister released the project subject to conditions. These conditions

correspond with the collar monitoring program.

included the submission of an Environmental Protection Plan (EPP) and an Environmental Effects Monitoring Plan (EEM), and stipulations on when

Nalcor will follow through with all environmental commitments outlined in

road construction could be performed.

the EPP and EEM. The drill sites, Seamus and Finnegan, have been monitored since the drill rig was demobilized. The drill cuttings have been analyzed to

The EPP and EEM extensively outline Nalcor’s mitigation plans and process

determine the next steps for safe disposal of the cuttings.

to minimize impact on the environment and on activity of woodland caribou. Nalcor worked closely with the Department of Environment and Conservation’s Wildlife Division to ensure every effort was made to minimize impact on the environment and wildlife in this area. Two further commitments were made as part of the EEM: • the provincial wildlife division manages a monitoring program, where 25 caribou in the local herd wear radio transmitter collars that allow monitoring of the caribou movement by satellite. Nalcor committed to an analysis of this monitoring program for caribou in this local herd from 2009 to six months beyond project completion in the area.

Lower Churchill Project Muskrat Falls (824 megawatts) is one of two hydro sites on the Lower Churchill River. The development of Muskrat Falls with transmission lines to the island of Newfoundland and Nova Scotia makes up Phase One of the Lower Churchill Project. It has the potential to: • deliver the lowest-cost power for our homes and businesses; • provide stable electricity rates for Newfoundlanders and Labradorians; • support industrial development in Labrador; and, • provide long-term revenue to the province from the export sales of electricity.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

2010 HIGHLIGHTS Phase Two of the development includes the 2,250 megawatt Gull Island

1) Lower Churchill Hydroelectric Generation

hydro site on the Lower Churchill River. Developing Gull Island can provide

Project (generation project), which consists

long-term revenue for Newfoundland and Labrador through export, and

of Muskrat Falls, Gull Island and transmission

meet potential future industrial growth in Labrador.

from Muskrat Falls to Churchill Falls; and,

When it comes to developing the Lower Churchill Project, environmental

2) Labrador-Island Transmission Link

sustainability is critical. Nalcor’s Environmental Policy and Guiding Principles,

(transmission project), which includes

which highlight commitments such as to sustain a diverse and healthy

1,100 km of transmission from Muskrat

environment for present and future Newfoundlanders and Labradorians,

Falls in Central Labrador to Soliders Pond,

and respect the cultural heritage of the people of the province are priorities

near Holyrood on the island’s Avalon Peninsula.

for Nalcor. Currently, Nalcor has two projects under review through the federal and provincial environmental assessment processes:

In 2010, significant progress was made for both generation and transmission environmental assessments. Nalcor submitted its Environmental Impact Statement for the generation project in 2009 and by the end of 2010, provided answers to 166 information requests. Throughout 2010, Nalcor completed environmental studies for the generation project, covering fish habitat characterization, mercury and fish sampling, human health risk assessment, ice observation, slope and bank stability, uncommon plants, dispersion modeling and wetland habitat. The transmission project, which is at an earlier stage in the environmental assessment process, focused on consultation and environmental studies in 2010.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

2010 HIGHLIGHTS Nalcor held a series of public open houses and stakeholder meetings across

Nalcor continues to progress its environmental assessments throughout

the province. During this consultation process, Nalcor shared information

2011. For updates on the environmental assessments, visit www.ceaa.gc.ca

with participants about the Project and stakeholders provided feedback

for the generation project and www.env.gov.nl.ca/env for the

and shared local knowledge, which has been incorporated into the

transmission project.

environmental assessment. In 2010, environmental studies for the transmission project focused on timber resources, vegetation, avifauna, caribou and its predators, moose, black bear, the marine and freshwater environment, ambient noise, historic resources, socio-economics, accessibility and viewscapes. The results of these studies, along with information obtained through consultation, will be part of the Environmental Impact Statement for the transmission project which is expected to be submitted for government and public review in the fall of 2011.

Bull Arm Fabrication Throughout 2010, Bull Arm Fabrication continued its focus on safety and maintenance, asset management, and environmental stewardship. In 2010, the Bull Arm Fabrication team committed to remedy or mitigate all remaining issues identified in the 2008 Phase One Environmental Site Assessment. Mostly, these initiatives pertained to cleaning and disposing of contaminated soil and remediating the areas to their natural condition, and removing drums of unidentified liquids from the site to minimize the potential of adverse environmental incidents. ď Ž


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OUR PEOPLE Management Representatives Committee

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

Nalcor Energy’s Environmental Management System (EMS) allows for

Management Programs (EMP) within each MA

the management of its environmental affairs, and is applied to activities,

to ensure the overall approach and philosophy of

products and services across Nalcor Energy companies that can have an

Nalcor Energy’s commitment to environmental

impact on the environment. Overseeing the operational management of the

responsibility and responsiveness is upheld

EMS is the Management Representatives Committee (MR Committee) with

every day. The successful completion of the

representatives from each of the Management Areas (MA) within the EMS.

registration process for ISO 14001 across the company was reflective of the efforts of Nalcor

The MR Committee meets on a regular basis and provides:

Energy’s MR Committee.

• an open exchange of information, approaches and ideas related to EMS development and implementation;

In 2010, the MR Committee included: Frank

• a consistent application of company EMS procedures;

Ricketts, Corporate MA; Rob Bartlett, Hydro Plant

• a single point of communication between the Leadership Team

Operations MA; Cindy Michelin, Nalcor Energy

and Management in each MA; and,

Churchill Falls MA; Rod Healey, Environmental

• a forum for training and mentoring newly-appointed

Services

Management Representatives.

Generating MA; and Paul Smith and Dennis

MA;

Michael

Manuel,

Holyrood

O’Grady, Transmission and Rural Operations MA.

Environmental Services Department While everyone at Nalcor Energy plays an important role in ensuring the organization meets its environmental commitments, Nalcor’s Environmental Services Department lead the responsibility for environmental reporting, environmental training and awareness, environmental impact and site


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OUR PEOPLE

ENVIRONMENTAL MANAGEMENT SYSTEMS

assessment, environmental auditing, identifying appropriate environmental

Nalcor Energy has chosen the ISO 14001 Certified EMS to drive

standards and tracking environmental issues. As well, this department

the continual improvement of the company’s environmental performance.

provides advice and service to all Nalcor Energy companies and departments

The EMS governs the environmental activities in Nalcor Energy’s electricity

to assist them with their legislative compliance responsibilities.

businesses, Hydro and Churchill Falls. Nalcor is committed to the use of the EMS for its other lines of business.

Recognizing our People

An EMS provides a management framework for an organization’s environmental responsibilities and is an integral component of the

In 2010, Wilmore Eddy, Manager of Exploits Generation, was recognized

organization’s business operations.

as an environment champion with a President’s Award. The President’s Awards is Nalcor’s prestigious awards program that recognizes employees

Programs developed under the EMS cover a broad range of areas:

for their dedication, achievements and embodiment of our 5 goals: safety,

alternative energy and conservation; emissions control; waste management

environment, business excellence, people and community.

and recycling; spill prevention and management; environmental site assessment and remediation; and species and habitat diversity. These

Wilmore is responsible for all aspects of water management and power

systems include specific performance measures and a commitment to

production for hydro assets located along the Exploits River. He is a passionate

continual improvement.

and energetic champion of the Exploits River ecology and Atlantic salmon. He goes beyond simply complying with legislation — he skillfully integrates

The six designated MAs within Nalcor Energy manage their environmental

his passion for the environment into all decision-making processes, and is

aspects through EMS (Figure 1). Each EMS is certified and registered by an

dedicated to continuous improvement of the Exploits River ecology.

independent registrar, Quality Management Institute (QMI – SAI Global). More information can be found at www.qmi-saiglobal.com. Nalcor has

Wilmore’s commitment is recognized by the communities along the river,

undertaken a comprehensive and phased approach to environmental

by federal and provincial officials, by not-for-profit organizations and by

management within the company and has registered and maintained EMS

anglers on the river. 

at its six existing MAs since 1999.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL MANAGEMENT SYSTEMS Corporate Management Area

Input Output

CORPORATE Senior Leadership Team

The Corporate MA consists of the Leadership Team and a committee of managers with responsibilities for facilities and operations with environmental aspects.

MR Committee

The goal of this MA is to coordinate the development and maintenance of the overall EMS for Nalcor Energy and to identify environmental aspects OPERATIONAL MANAGEMENT AREAS Services Service input to Operational Management Areas

Thermal Plant Operations

Hydro Generation

Churchill Falls

TRO Operations

appropriate to the Leadership Team’s activities and responsibilities. Although the operation and services EMS are managed independently, a common and consistent Corporate Environmental Policy and Guiding Principles set the standard for all Nalcor Energy companies. Periodic reviews of activities and issues are conducted to ensure consistency with corporate standards.

Figure 1: Structure of Nalcor Energy’s Environmental Management System While the company made progress in reducing its impact on the environment in 2010, Nalcor Energy will continue to develop long-term plans to achieve its environmental targets and goal of becoming an environmental leader. Throughout the year, Nalcor continued tracking and reporting EMS performance to the Leadership Team and achieved 98 per cent completion of EMS targets and milestones. Additional accomplishments resulting from the EMS in each of the MAs in 2010 are detailed in this section.

To be an Environmental Leader Nalcor Energy has developed a corporate strategy that sets the stage for performance and guides the direction of all Nalcor Energy companies. This strategy involved developing goals, objectives and targets for the company. The following objectives are reviewed annually and are established to support Nalcor Energy’s environmental goal — to be an environmental leader: • reduce emissions per unit of energy delivered by achieving no more than 10 per cent variance from ideal production schedule at Holyrood Generating Station through 2015; • maintain the number of environmental leadership targets accomplished at or greater than 95 per cent each year for the next five years; and,


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL MANAGEMENT SYSTEM • have all current non-regulated generating entities under an EMS fully

To accomplish this level of energy saving, one of the first things to look for

compliant with the ISO 14001 standard by 2014.

are areas where energy is being used when it’s not needed, such as leaving lights, heating and appliances on unnecessarily. Hydro reminds its employees

From these objectives, targets were set in each line of business in 2010,

that lights, heating, air conditioning and computers should be turned down,

including: increasing the number of Leadership Team approved EMS targets

or turned off whenever possible and at the end of the work day. After regular

and objectives accomplished across the company; increasing internal and

business hours, only security and emergency lighting should be necessary.

external energy savings; reducing emissions per unit of energy delivered at the Holyrood Generating Station; completing detailed EMS gap analysis for

Using higher energy efficient equipment has also contributed to Hydro’s

new lines of business; and completing compliance audit closure plans for

energy savings. A complete retrofit of the lighting, air conditioning system,

new lines of business.

and building energy management system at Nalcor’s head office, Hydro Place, is making a significant difference to its energy use, which is at the lowest levels seen in more than 16 years. In other locations, inefficient mechanical

Hydro Achieves Corporate Environmental Target for 2010

thermostats were replaced with high efficiency electronic programmable thermostats to control electric heating systems. Our new regional office at

Hydro promotes energy efficiency to electricity consumers through the

Happy Valley-Goose Bay, Labrador, was constructed to LEED Standards in 2010.

takeCHARGE program. takeCHARGE is a joint initiative between Hydro and

LEED stands for Leadership in Energy and Environmental Design and is a third-

Newfoundland Power that is aimed at providing Newfoundlanders and

party certification program and an internationally accepted benchmark for

Labradorians with information, tools and rebate programs to assist them in

the design, construction and operation of high performance green buildings.

using energy wisely. Using more energy efficient devices, such as lighting products, programmable In addition to assisting electricity customers save energy, Hydro and Nalcor

thermostats, and having recommended insulation levels will help save energy,

are taking charge of its own energy use at its offices, plants, and facilities

save money and improve comfort. It’s also environmentally responsible. There

throughout the province. Since 2007, Hydro has taken the steps to save over

are many opportunities to reduce energy use by improving efficiency. Each year,

2,700,000 kWh of energy per year. That is about the same amount of energy

Hydro sets energy savings targets and with the help of our employees, many

used by more than 100 electrically-heated, average-sized homes in a year.

actions are taken to achieve these targets. At Hydro, we are continually seeking areas where energy can be saved by using it as efficiently as possible. 


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2010 ENVIRONMENTAL PERFORMANCE REPORT

SERVICES MANAGEMENT AREA

OPERATIONAL MANAGEMENT AREAS

Environmental aspects are an element of a

Thermal

department’s activities, products, or services that can interact with the environment.

The Holyrood Generating Station is a 490 megawatt (MW) plant located in

Currently

departments

Holyrood, Conception Bay. The Holyrood plant’s EMS was initially registered

within the Services MA that have identified

in January 1999 and successfully completed reassessment audits every

environmental

three years, and again in 2010.

there

are

four

aspects.

These

groups

include: Systems Operations and Customer Services, Project Execution and Technical

In 2010, the Holyrood Generating Station made progress on 10

Services, Supply Chain Management and

environmental targets, resulting in:

Environmental Services.

• achieved uptime targets for ambient air monitoring sites at 99.2 per cent; • improved guide curve performance for plant efficiency at dispatch load;

In 2010, results included:

• renovation of one main fuel storage tank;

• controlled release of over 135 million cubic metres of water from

• commission of a new Continuous Emission Monitoring system

reservoirs, as part of long-term agreements with the Department

which analyzes each unit separately; and,

of Fisheries and Oceans for fish and fish habitat protection;

• improved shoreline stability around the jetty and fuel lines

• identifying sites for waste management program improvements

to minimize spill risk.

and reduction initiatives; • launching a new Conservation and Demand Management (CDM) program for residential, commercial and industrial customers; • improving load and inflow forecasting and implementing wind generation forecasting; • optimizing Exploits Generation through detailed VISTA modeling; and, • completion of gap analysis reports for new lines of business. 


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS Hydro Operations

systems. Hydro also maintains 54 high-voltage terminal stations, 25 lowervoltage interconnected distribution substations, 3,742 km of interconnected

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

high-voltage transmission lines and 3,360 km of distribution lines.

a total installed capacity of 939 MW. In 2010, significant EMS programs completed in TRO included: In 2010, some of the EMPs results included:

• a focus on spill/leak reduction by replacing distribution transformers

• the implementation of energy efficiency and conservation initiatives

and installing new transformer storage ramps;

such as reducing heat consumption at the intake building and

• implementation of a five-year plan for improvements to prevent

investigating insulating opportunities at remote camp;

potential environmental impacts from fuel storage systems;

• implementing actions to address generator oil losses and investigating

• testing of electrical equipment potentially containing Polychlorinated

options in cost/benefit for oil recovery at remote hydroelectric

Biphenyls (PCBs) and the development of a 15-year replacement plan

generating stations;

for sealed equipment;

• investigating actions required at the Paradise River Hydroelectric

• continuing the environmental assessments of properties that may have

Generating Station to deal with fish entrainment issues and summarize

sensitivities to herbicide application;

completeness of fisheries compliance obligations;

• conducting the trial use of a new vegetation control product with

• promotion of an anti-idling program;

the potential to reduce herbicide use; and,

• fuel storage tank improvements;

• continuing the collection of information and mapping related

• review of emergency response spill equipment and develop

to environmental sensitivities for transmission and distribution lines.

a plan to address gaps; and, • improvements in the management of hazards of liquid waste. Nalcor Energy Churchill Falls Transmission and Rural Operations (TRO) The TRO division operates three gas turbines, three interconnected diesel generating stations, and 22 isolated diesel generating and distribution

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.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS The environmental aspects of the former Twin Falls Hydroelectric Generating

• established an action plan to phase-out potential PCB-contaminated

Station are also managed through the Churchill Falls EMS. The EMS was

equipment as per the new PCB Regulatory requirements;

registered in 2000 and successfully completed a surveillance audit in 2010.

• conducted an engineering review of the bulk transformer oil storage system to identify future use requirements and make recommendations

Environmental targets and programs were developed at Churchill Falls as

for system improvements;

part of the EMS. Some results of 2010 targets were:

• performed extra work on unit #5 turbine to prevent oil leaks,

• 100 per cent completion of 38 Environmental Management System targets;

including tightening or replacement of all covers, gaskets and seals;

• Through site visits and interviews at selected similar utilities,

• continuation of multi-year contaminated lands program; including:

conducted a review of practices regarding risk reduction measures

• Three Phase Two ESA completed at priority sites (Gas Station, Lobstick, Mile 35); • Additional delineation and/or groundwater monitoring undertaken at four sites (Orma, Former Scrap metal, Line Shop, Airport); and, • Site remediation (i.e. free product recovery) undertaken at four sites (Orma, Esker, Seahorse, Twin Falls Construction Camp). • fish and sediment monitoring at Twin Falls as a follow-up to the recommendations of the Environmental Assessment, Human Health and Ecological Risk Assessment completed in 2005. The original recommendation was to complete periodic re-sampling of fish (PCBs) and of sediment (TPH and PCBs) from Bonnell Creek (recommended for 2006, 2010 and every five years thereafter until fish tissue concentrations of PCBs reach site specific target levels); • continuation of multi-year program for clean-up of old construction related sites by removal of debris from 5 large sites; and, • continuation of multi-year program for reduction of oil leaks from switchyard transformers by repair of apparent leaks on three transformers.

to prevent and respond to oil spills entering rivers;


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS

EMISSIONS

ISO 14001 Certified Environmental Management Systems (EMS)

Wastewater Control

Nalcor has committed to developing a plan to extend the EMS across the

The Holyrood Generating Station’s wastewater treatment plant treats the

company’s operations. In 2010, Exploits Generation and Nalcor Energy Oil

wastewater resulting from the combustion of fuel and run-off from an on-

and Gas completed a gap analysis to compare its current environmental

site solid waste landfill.

management programs with the requirements of the ISO 14001 standard. From 2011 to 2013, Exploits will complete the elements of its gap closure

Components of the wastewater are measured and compared to regulatory

plan, focusing initially on compliance and prevention of pollution.

limits. Once all aspects of the wastewater meet provincial regulatory requirements, it is released in the plant’s cooling water discharge and into

In 2011, Nalcor Energy Oil and Gas will initiate the development of an ISO

Conception Bay. In 2010, 4.56 million litres of wastewater was treated and

14001 compliant EMS. In 2012, they will continue to follow the EMS gap

discharged, up slightly over 2009 when 4.08 million litres of wastewater

closure plan and by 2013, anticipates having an EMS in place and suitable

was treated and discharged.

for an independent audit review. The Menihek Hydroelectric Generating

Air Quality Management

Station has been working towards the development of an EMS since the

Hydro has a mandate to meet the province’s growing electricity needs. In

completion of the EMS Gap closure

2010, approximately 80 per cent of this electricity was generated from clean

plan in December 2008. In 2010, the

hydroelectric power. However, to meet the growing electricity demands on

environmental aspects, legal and

the Avalon Peninsula, between 15 and 25 per cent of the island’s electricity

other requirements were identified

comes from fossil fuel-fired generation at the Holyrood Generating Station

and

each year. Hydro also operates 25 diesel plants across the province.

the

emergency

response

requirements were developed.  The company continues to incorporate alternative sources of energy into the province’s energy supply to reduce emissions from burning fossil fuels. In 2010, Hydro purchased 183,252 megawatt-hours of clean energy from


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2010 ENVIRONMENTAL PERFORMANCE REPORT

EMISSIONS the island’s two wind projects. That’s enough green energy to power over

Total emissions for CO2, nitrogen oxides (NOx) and SO2 for the Holyrood

12,300 homes – which is equivalent to burning 290,000 barrels of oil at

Generating Station, gas turbine facilities and isolated diesel generating

the Holyrood plant, and is a reduction of more than 143,000 tonnes of

stations, are calculated using formulas approved by the Department of

greenhouse gas emissions.

Environment and Conservation. Nalcor’s overall air emissions are dominated by those resulting from production at the Holyrood Generating Station.

Overall, thermal production at the Holyrood Generating Station decreased

Emissions of CO2, NOx and SO2 for the isolated systems, which include the

in 2010 by 14 per cent from 2009, primarily due to decreased energy

Labrador Isolated Diesel System, Labrador Interconnected System, and the

supply requirements from the plant. The Holyrood plant produced just

Island Isolated Diesel System, were calculated to be approximately 39,

over 13 per cent of the energy supplied by Hydro in 2010, down from

1.2 and 0.05 kilotonnes respectively.

15 per cent in 2009. The reduced energy production from the Holyrood plant in 2010 resulted in an over 23 per cent reduction in sulfur dioxide

Emissions for the Island Interconnected System, including the Holyrood

(SO2) emissions and a nine per cent reduction in carbon dioxide emissions

Generating Station, and interconnected gas turbines and the standby diesel

(CO2). The reduction in CO2 emissions is directly attributed to less fuel being

plants are outlined in the following graphs:

consumed, while the reduction in SO2 is attributed to less fuel consumption and lower sulfur content in the fuel.

Annual CO2 Emissions 6,000

2,000

Overall, energy received into the system decreased by four per cent in

the Fermeuse wind project which did not go on-line until April 2009. Energy supply requirements were reduced nearly two per cent in 2010, which was due to a reduction in load from the island’s utility and industrial customers. Hydro’s hydroelectric production on the island was up by nearly two per cent from 2010, due primarily to the reduced energy received into the system.

1,600 1,400

4,000

1,200 3,000

1,000 800

2,000

600 400

1,000

200 0

0 2001

2002

2003

2004

 Hydraulic Production

2005

2006

2007

2008

2009

2010

 Island Interconnected Emissions

Emissions (kilotonnes)

facilities. This reduction was offset somewhat by increased generation at

Hydraulic Production (GWh)

2010, primarily due to decreased production from Exploits Generation

1,800 5,000


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2010 ENVIRONMENTAL PERFORMANCE REPORT

EMISSIONS

WASTE MANAGEMENT Polychlorinated Biphenyls (PCBs)

Annual NOX Emissions 5.0

5,000

4.5

PCBs are the most significant waste management issue in the electric utility

4.0

industry. This substance was commonly used in electrical equipment prior

3.5

4,000

3.0 3,000

2.5 2.0

2,000

1.5

Emissions (kilotonnes)

Hydraulic Production (GWh)

6,000

1.0

1,000

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 PCBs in service declined as new PCB-free equipment was installed, and inventories of PCB-contaminated wastes increased as older equipment was retired.

0.5 0

Hydro has had a PCB management program in place since early 1980s

0.0 2001

2002

2003

2004

 Hydraulic Production

2005

2006

2007

2008

2009

2010

to reduce risks associated with in-service equipment containing PCBs.

 Island Interconnected Emissions

The earlier focus of this program was to remove all high-concentration PCB equipment from service. This was successfully accomplished by 2003.

Annual SO2 Emissions In 2002, Hydro developed an EMS program focused on further PCB reduction

25

and elimination. From 2002 to 2010 Hydro has tested all distribution

5,000

20

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

1,000 0

0 2001

2002

2003

2004

 Hydraulic Production

2005

2006

2007

2008

2009

2010

Emissions (kilotonnes)

Hydraulic Production (GWh)

6,000

transformers and identified all units with PCB levels greater than 50 milligrams/kilogram (mg/kg), a regulatory limit for defining PCB equipment below which the equipment is permitted to remain in service until the end of its useful life. Through this process there were 3,147 distribution transformers tested and 55 identified as having a PCB concentration of greater than 50 mg/kg. The transformers containing greater than 50 mg/ kg were removed from service and stored for PCB waste disposal.

 Island Interconnected Emissions

Starting in 2009, Hydro put a plan in place to test all other oil-filled 

equipment that was not sealed, such as reclosers, voltage regulators, tap


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2010 ENVIRONMENTAL PERFORMANCE REPORT

WASTE MANAGEMENT changer compartments, oil circuit breakers, and station service transformers.

Hydro operates one approved PCB waste storage facility at its Bishop’s Falls

From 2009 to 2010 there were 388 units sampled and 7 units identified to

area office and inventory storage yard. In 2010, there were 0.52 tonnes of

contain greater than 50 mg/kg of PCB. The plan is to have the remaining

low-level PCB material transported to an approved facility for destruction.

equipment (approximately 150) in this category tested by the end of 2012.

There were 0.75 tonnes of high-level PCB material taken out of service and stored at the Bishop’s Falls PCB waste storage facility.

New Federal PCB Regulations brought into effect in 2008 focused on removal of higher concentration PCB equipment from service by planned dates, and

It is recognized that some older equipment such as capacitors and

more restrictive handling of PCB waste. In response to these requirements,

fluorescent light ballasts, which may contain high levels of PCB, remain in

both Hydro and Nalcor Energy Churchill Falls have put in place programs

service. It is estimated that there is less than one tonne of PCB contained

to improve databases for tracking in-use PCB equipment and revised PCB

in this equipment.

phase-out programs to include identification of sealed equipment that could have PCB contamination. In 2010, Churchill Falls continued to improve the database for in-use PCB equipment and its PCB phase-out program. The Bay

PCB Material in Storage (Bishop’s Falls PCB Waste Disposal Facility)

D’Espoir Hydroelectric Generating Station removed 21 Pyranol-filled surge

2009 Tonnes

2010 Tonnes

Total inventory of high-level PCB material in storage

0.00

0.75

Total inventory of low-level PCB material in storage

0.52

0.14

Total amount of high-level PCB material sent for destruction

0.00

0

Canada, and sent them to a PCB storage facility at Bishop’s Falls to await

Total amount of low-level PCB material sent for destruction

0.17

6.34

destruction. TRO worked on its PCB phase-out program as defined in their

Total amount of high-level PCB material taken out of service

0.00

0

end-of-use extension, with some minor changes to the proposed program.

Total amount of low-level PCB material taken out of service

0.67

0.14

2009 Tonnes

2010 Tonnes

Total estimated inventory of high-level PCB material in service

<1

<1

Total estimated inventory of low-level PCB material in service

0

0

capacitors that had been granted an end-of-use extension by Environment

Most of these changes were around timelines for testing equipment. None of the TRO or Churchill Falls equipment removed from service were found to have a PCB concentration of 500 ppm or above.

PCB Material in Service (TRO)

Nalcor Energy submitted its second set of online PCB reports under the PCB Regulations for 2010 for the Bishop’s Falls PCB Waste Disposal Facility, the Churchill Falls PCB Facility and the Bay D’Espoir Hydroelectric Generating Station. Reports were submitted under three sections of the PCB Regulations.

Table 1: PCB material in storage and in service in Bishop’s Falls and TRO in 2009 and 2010.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

WASTE MANAGEMENT

PCB Material in Storage (NE-CF)

2009 Tonnes

2010 Tonnes

Total inventory of high-level PCB material in storage

0

0

Total inventory of low-level PCB material in storage

0.70

0.14

Total amount of high-level PCB material sent for destruction

0.01

0

Total amount of low-level PCB material sent for destruction

0.15

6.34

Total amount of high-level PCB material taken out of service

0

0

Total amount of low-level PCB material taken out of service

0.19

0.14

2009 Tonnes

2010 Tonnes

Total estimated inventory of high-level PCB material in service

unknown

unknown

Total estimated inventory of low-level PCB material in service

unknown

unknown

PCB Material in Service (NE-CF)

Nalcor Energy Churchill Falls operates one approved PCB waste storage facility. Table 2 provides an inventory of PCB material in storage and in service at this

Table 2: PCB material in storage and in service in NE-CF in 2009 and 2010.

facility at the end of 2010. At present, there is no high-level PCB material in storage in the Churchill Falls PCB waste storage facility. There were 0.14 tonnes of low-level PCB material in storage and 6.34 tonnes sent for destruction in

REUSE AND RECYCLING INITIATIVES

2010. The low-level PCB material sent for destruction consisted mainly of clean-up materials that were temporarily stored and sent for destruction. The

Lubricating Oil

6.34 tonnes of material sent for destruction also includes the 0.70 tonnes of low-level PCB material in storage at the facility in 2009.

Hydro has a waste oil management system for handling and disposing of used oil. On an annual basis, the company records the amount of used oil

PCB materials known to be in service are fluorescent light ballasts and capacitors;

generated and new oil purchased at diesel and hydroelectric generating

however, there is no inventory completed of this electrical equipment to date,

stations. In 2010, approximately 47,781 litres and 1,858.1 litres of used

and therefore indicated as â&#x20AC;&#x153;unknownâ&#x20AC;? in Table 2. Churchill Falls is currently

oil was generated from the diesel generating stations and hydroelectric

developing an inventory database for oil-filled equipment and a phase-out

generating system, respectively. These volumes were captured and a

program for equipment that has the potential to have PCB contamination.

certified waste oil handler was contracted to remove the oil for either


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2010 ENVIRONMENTAL PERFORMANCE REPORT

WASTE MANAGEMENT recycling or reuse. Approximately 2,400 litres of waste oil and 78,000 litres

Wood Pole Line Management Program

of a water/oil mixture was collected at the Holyrood Generating Station for disposal through a government certified waste oil handling company.

As part of its transmission line network, Hydro manages approximately 26,000 poles of varying age. Wooden poles have an in service lifespan of 50

At Hydroâ&#x20AC;&#x2122;s central maintenance facility in Bishopâ&#x20AC;&#x2122;s Falls, approximately

years and with proper management, maintenance and refurbishment the life

20,252 litres of insulating oil was reused following processing or cleaning

can be extended by 10 years or more. Core samples taken from some poles

by internal forces, while 42,700 litres was reused following processing or

in 1998 indicated that the preservative retention level was not adequate. As a

cleaning by a third-party contractor. In 2010, there was no insulating oil

result, Hydro initiated a Wood Pole Line Management Program in 2003 and it

disposed of as waste. This represents a 100 per cent reuse of insulating

is expected to continue as a long-term asset management and life-extension

oil at the central maintenance facility.

program. In 2010, Hydro treated 2,763 poles with boron rods to provide extra protection and extend the in service life expectancy of new poles. Since the

At Churchill Falls, approximately 22,465 litres of used oil was collected

start of the program approximately 21,163 poles have been treated.

and stored at the waste oil storage building. Approximately 25,547 litres was later disposed of by a third-party contractor for reuse or recycling. In addition, approximately 49,855 litres of waste oil was collected and stored at the waste oil storage building and approximately 61,290 litres was later disposed of by a certified waste oil disposal company. Due to the remoteness of Churchill Falls, all waste oil is stored at a designated

Disposal of Fuel Ash at Holyrood Generating Station During 2010, all fuel ash produced at the Holyrood Generating Station was disposed of in an on-site, controlled solid waste landfill. The amount of total ash produced and disposed of at the landfill in 2010 was 206 tonnes, down from 275 tonnes in 2009.

waste oil storage building prior to disposal. The waste oil is usually collected twice during the year by a government certified waste handler.

Scrap Metal Recycling and Reuse During 2010, Hydro decommissioned 386 distribution transformers, all of which were non-PCB, drained of oil and sold to a transformer manufacturer for reuse.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

WASTE MANAGEMENT Construction Debris Removal Plan for Churchill Falls

Waste Management Study

In 2006, NE-CF management received funding approval from its Board

In 2010, the Environmental Services Department worked with personnel

of Directors for a five-year clean-up program to remove the debris

at the Holyrood Generating Station, Hydro Generation and the central

from abandoned construction camps that were used during the original

regional office in Bishopâ&#x20AC;&#x2122;s Falls to implement new waste management

construction of the Churchill Falls project in the late 1960s and early 1970s.

initiatives. Each of these areas is now participating in the Call2Recycle

There is a substantial amount of debris located at sites spread over a large

program, whereby rechargeable batteries (lithium ion, nickel cadmium,

geographical area, running approximately 300 kilometers north to south

nickel metal hydride and small sealed lead acid batteries) and cellphones

from Sail Lake to the QuĂŠbec border, and 180 kilometers west to east from

are collected and sent to a free-of-charge recycling program funded

Esker to Churchill Falls. Over a five-year period, NE-CF has committed to

by product manufacturers. The Holyrood Generating Station also began

cleaning up the large sites with the aid of contractors, and the smaller sites

corrugated cardboard recycling in 2010. All areas are very interested in

with NE-CF internal resources.

new and improved waste management practices and are working toward continual improvement. Hydro Place budgeted for a Solid Waste Study to

In 2010, approximately 425 tonnes of scrap metal was recovered from the

be completed in 2011. The intent of the study is to evaluate solid waste

debris sites and shipped out for recycling. Since 2007, approximately 1,600

generation and identify options to reduce waste generation and divert solid

tonnes of scrap metal was recovered from the debris sites. Areas where

waste from the landfill. Nalcor plans to implement similar studies in other

debris has been removed in 2010 include: Mile 35 Camp, Ossokmanuan

operational areas in the future.

Structure Area, Scale Shack at the Twin Falls Airstrip, Jacopie Structure Area, Lobstick Area near the Control Structure, and Esker and Esker Road. Employees lend an environmental hand to the Town of Southern Harbour Nalcor Energy is committed to being a part of the communities in which we operate, and the Bull Arm Fabrication site is no exception. Since Nalcor is relatively new as operator of the Bull Arm site, efforts have been ongoing to demonstrate our support for the surrounding area.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

WASTE MANAGEMENT

SPILLS AND OTHER INCIDENTS

In 2010, Nalcor Energy joined the Town of Southern Harbour for a beach

The very nature of our work, to generate and transmit electricity, requires

clean-up of Bottom Beach. Close to 30 people, including Nalcor volunteers

handling and use of a variety of potential environmental contaminants

and members of the community demonstrated their commitment to

such as fuel oils, lubricating oils and chemicals. Each year, Hydro uses

environmental conservation and preserving the beauty of part of

approximately 300 million litres of fuel to generate electricity. The company

Newfoundland’s coastline. The Bull Arm team continued their efforts in 2011

strives to reduce the potential for leaks and spills.

and partnered with the Town of Southern Harbour for another beach clean-up.  Being prepared for such incidents is critical to mounting a quick and effective response in order to minimize impacts on people and the environment. Nalcor Energy and its lines of business have developed Environmental Emergency Response Plans (EERPs) to quickly, effectively and safely deal with such incidents. All personnel who handle or work around petroleum products receive training related to the EERP and, where applicable, specific operating procedures have been developed to facilitate the safe handling of the products used. Nalcor Energy’s lines of business had a total of 12 reportable spill and leak incidents in 2010. Hydro reported five, Churchill Falls reported six and Exploits Generation reported one spill. The approximate volume for all reportable spills was 1,604 litres. All reportable spills involved petroleum products or its Nalcor co-op students Christopher Newport, Kyle King, Karl Hartmann and

derivatives. About 755 litres, or 47 per cent of the total volume, was transformer

Mary Devine participate in the Southern Harbour beach clean-up in 2010.

insulating oil, 589 litres was glycol and 260 litres was hydraulic oil. At Hydro, approximately 621 litres was spilled or leaked. Four out of the five spills involved spills or leaks of transformer insulating oil with an approximate volume of 441 litres. One of these transformer spills involved a release of a small quantity of transformer insulating oil from a transformer


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2010 ENVIRONMENTAL PERFORMANCE REPORT

SPILLS AND OTHER INCIDENTS in storage with a PCB concentration of 3.2 ppm. Changes to the federal PCB Date

Source

January 26

Hydraulic brake failure at the Bishop’s Falls Powerhouse.

260 L

Approximately 30 litres was recovered inside the plant and the remaining 230 litres was released to the Exploits River and was unable to be recovered.

litres of glycol from a heater hose failure on a mobile diesel generating unit.

June 11

Holyrood Terminal Station – current transformer explosion released non-PCB oil.

230 L

Contaminated surfaces cleaned and contaminated soil collected for treatment.

Churchill Falls had six reportable spills in 2010. Three incidents involved

September 19

Churchill Falls switchyard – overfill of conservator tank on transformer during maintenance; level gauge was found to have been inaccurate.

200 L

Apparent contaminated soil was removed for treatment and disposal. Soil samples taken and analyzed to confirm acceptable residual contamination levels. Transformer filling procedure has been reviewed and revised.

Regulations in September 2008 require the reporting of such incidents. Prior to that change, releases of oil with less than 50 mg/kg and less than one

Volume

gram of PCBs were not reportable. The other incident involved a spill of 180

spills or leaks of transformer insulating oil with an approximate volume of 314 litres, two spills involved 409 litres of glycol being released from operating equipment and one involved an unknown amount of battery acid

Source

being released with the potential to enter a water supply. Approximately 114 litres of PCB-contaminated transformer insulating oil leaked from electrical equipment. One leak of approximately 3 litres of insulating oil from a mobile oil degasifier unit had a PCB concentration of 2 ppm. The other leak involved approximately 111 litres of insulating oil from a pole mount transformer that had a PCB concentration of 33 ppm. All spills and leaks were responded to promptly with spill response equipment and contaminated materials were collected in suitable containers for appropriate disposal. Appropriate sampling was also taken, where applicable, to ensure adequate clean-up was undertaken. Table 3 outlines the details of Nalcor’s more significant spill incidents.

Table 3: Details of Nalcor’s more significant spill incidents. 


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL SITE ASSESSMENT AND REMEDIATION In 2000, Hydro implemented an Environmental Site Assessment (ESA) program for all properties it owns or operates. The ESA process the company follows is illustrated in Figure 1.

Completion Remediation Phase

Regulator Input

Assessment Phase Communication and Input

Criteria

Reporting

Remediation Contract Management

Remediation Action Plan

List of Sites

Criteria

Phase I

Phase II

Risk Assessment

Phase III

Remediation Annual Report Regulator Input

Criteria Regulator Input Confirmatory Sampling

No Further Work Required Notification to Stakeholder

Notification to Stakeholder

No Further Work Required Notification to Stakeholder

Figure 1: Process Flow Diagram for the Environmental Site Assessment Process

No Further Work Required


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENVIRONMENTAL SITE ASSESSMENT AND REMEDIATION The objectives of the ESA program are to:

The company’s ESA program continues to be successful in identifying and

• evaluate the potential for environmental contamination;

managing the potential environmental contamination associated with Nalcor’s

• undertake sampling to characterize and delineate any contamination;

past and present operations.

• assess the potential risks and liabilities associated with any contamination identified; • identify sites requiring monitoring or remediation; and,

Phase One: review of information and records, site visit and interviews.

• develop and implement remediation programs when necessary.

Phase Two: characterization of a site for physical aspects and potential contamination.

In 2010, work continued at Exploits Generation in Central Newfoundland with the completion of a hazardous materials identification survey. At our Bull Arm Fabrication Facility, a limited Phase Two was completed with surface staining removal from areas that were identified during the Phase One process. Following the recommendations of previous ESA-related work at Hydro, complete Phase Two assessments were performed at two sites and additional delineation, soil, and groundwater sampling and monitoring programs were continued or completed on ten properties, four on the island and six in Labrador. Churchill Falls ESA program continued with the completion of three Phase Two assessments, additional delineation and groundwater monitoring was performed at four sites, and free product recovery continued at three sites. Six sites were located in remote areas while the other four sites were located around the town site and airport infrastructure.

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 clean-up to a specified regulatory standard. 


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2010 ENVIRONMENTAL PERFORMANCE REPORT

SPECIES AND HABITAT DIVERSITY Fisheries Compensation Water Release

undertaken by Hydro’s Environmental Services Division on the transmission lines in Labrador for the presence of active raptor nests. This is an annual

In 2010, as part of long-term agreements with the Department of Fisheries

survey that is undertaken in consultation with the Department of Environment

and Oceans, Hydro released approximately 135 million cubic metres of

and Conservation’s Wildlife Division. These nests are primarily Osprey, with

water at its fisheries compensation facilities. The water released at White

smaller numbers of Northern Ravens, Red Tailed Hawks and Bald Eagles.

Bear River, Grey River, Granite Canal, Upper Salmon and Hind’s Lake was

Surveys are undertaken early in the egg laying stage of the breeding season

performed at established times throughout the year for habitat protection

at which time nests that would be active for the year are usually occupied or

and fish migration.

show signs of occupancy.

Because of the isolated nature of the island’s electrical system, lost

Surveys were undertaken in late June 2010 and there were a total of 100

hydroelectric energy production associated with these water releases,

nests on the three transmission line corridors in Labrador. The annual survey

under normal conditions, must be provided by thermal generation from the

is undertaken in consultation with the Department of Environment and

Holyrood Generating Station. The amount of thermal production required to

Conservation’s Wildlife Division.

offset the amount of water released in 2010 was nearly 33 gigawatt-hours. When the thermal conversion rate and average cost of fuel are considered,

This data was provided to work crews in Labrador immediately following

the equivalent value of the water released at all fisheries compensation

completion of the surveys to allow for planning of maintenance activities

facilities was approximately $4.1 million and resulted in a potential increase

on these transmission lines. Structures with active nests are avoided until

of 122 tonnes of sulphur dioxide emissions and 27,000 tonnes of carbon

after the breeding season, usually after August 15. This allows line crews to

dioxide emissions.

avoid potential negative impacts on these species during the critical periods within the breeding regime, which in turn ensures compliance with wildlife legislation regarding migratory birds in Newfoundland and Labrador.

Raptor Protection Program Raptor nests are also found on Hydro’s transmission and distribution For more than 20 years, Hydro has managed a Raptor Protection Program.

structures on the island of Newfoundland, but there are not nearly as many

In keeping with Nalcor’s Environmental Management System and the

as on Labrador structures. Active nests on island structures are also surveyed

corporate Environmental Policy and Guiding Principles, surveys are

periodically to access status and potential conflicts with Hydro’s operations. 


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS Nalcor works to help protect the province’s birds When three Churchill Falls Line Workers headed to work on Tuesday, August 24, they had no idea their work plan would include a high-rise rescue of an immature bald eagle. While on ground patrol inspecting the 230 kV power lines, Phil Morris discovered the eagle hanging by the tip of its wing, trapped in the frame of a transmission line tower. Morris, wildlife officer Ellis Bartlett, and NE-CF employees Chris Kehoe and Donnie Philpott discussed the rescue plan in a tailboard safety talk, and the employees then climbed 60 feet up the steel structure, freed the pinned wing, and coaxed the eagle into a crate. “We don’t do many rescues in our job,” said Morris, “but it felt pretty good to do what we did.” The eagle, named Ossok by Phil’s son Thomas, was transferred to the Animal Care Unit of the Salmonier Nature Park. Ossok was assessed and treated by the Nature Park’s veterinarian, and although Ossok lost the tip of its wing, the eagle is in overall good health and will become an educational bird at the Nature Park or another park or zoo, said Rod Collins, Animal Curator of Salmonier Nature Park. “It’s an unbelievable story for this bird to survive this stressful ordeal,” said Collins. “We’re so happy the bird is doing as well as it is.”

Line workers, Phil Morris and Chris Kehoe, rescue an immature bald eagle from Tower 82 in Churchill Falls.

Preserving the Atlantic salmon run Exploits Generation staff manage a very successful Atlantic salmon diversion system on the Exploits River in Central Newfoundland. In partnership with the Department of Fisheries and Oceans, fish biologists and the Environmental Resource Management Association, an Atlantic salmon enhancement project that started in the early 1960s has seen the natural adult salmon run grow from 1,200 strong to an adult incoming run in the range of 40,000 today.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

OPERATIONAL MANAGEMENT AREAS

ALTERNATIVE ENERGY

Every year, spring runoff brings with it adult salmon that have migrated

Wind projects provide green energy to island consumers

downstream from the spawning grounds. Some of these adult salmon will enter the power canal at the Grand Falls hydroelectric plant. Barriers

Hydro is demonstrating its commitment as an environmental leader. In

prevent the salmon from entering the power generation turbines once they

2009, in an effort to reduce emissions from burning fossil fuels, Hydro

reach the power canal. Without assistance, they can be delayed in their

increased its renewable generation. Hydro has power purchase agreements

migration downstream.

for 54 megawatts of clean, renewable wind energy. The integration of wind power in Newfoundland has broadened Hydro’s energy mix and allowed

Exploits Generation staff began visually monitoring the power canal at the end

the company to continue providing electricity at a reasonable cost.

of April when water temperature begins to rise. Through a cooperative effort which started in 1997, local fishermen and Exploits Generation employees

Wind generation is an environmentally-friendly, pollution-free and endless

remove salmon from the power canal and transport them downstream.

source of energy. It is clean and leaves a small environmental footprint on the province. On the island, wind generation will help reduce fossil-fired

In 2010, Nalcor employees safely relocated over 7,000 adult salmon from

generation at Hydro’s thermal generating station in Holyrood. On average,

the Grand Falls hydroelectric power canal and the adult incoming run was

the annual environmental benefits from the wind farms in St. Lawrence and

in the range of 47,000. This success story is well known in the international

Fermeuse are:

scientific community.  • reduction in fuel consumption by about 300,000 barrels; • reduction in sulphur dioxide emissions by over 660 tonnes; • reduction in carbon dioxide emissions by over 147,000 tonnes; and, • generation of green energy for the equivalent of up to 12,700 homes.

Wind-Hydrogen-Diesel Energy Project While the province has an abundance of renewable resources, many isolated coastal communities rely on diesel-fueled generation systems for electricity


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ALTERNATIVE ENERGY generation. In its efforts to reduce reliance on fuel-fired generation, Nalcor

Alternative Energy Study Undertaken in Coastal Labrador

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-

The company is also investigating renewable energy sources for diesel

Hydrogen-Diesel Energy Project in Ramea is a research and development

communities. In late 2010, the Government of Newfoundland announced

project that uses renewable energy sources to supplement the diesel

$2.5 million to further study small-scale hydroelectric projects for some

requirements of the island community.

Labrador coastal communities. Throughout 2011 and 2012, Hydro will complete further analysis of potential hydro generation sites in this region.

This unique project has attracted attention from around the world, and in 2010

The Coastal Labrador Alternative Energy study is a joint venture between

Nalcor, in conjunction with the North Atlantic Hydrogen Association, hosted

Hydro and the Government of Newfoundland and Labrador. In 2009,

an international conference. Following a one-day workshop, participants

Government invested approximately $250,000 for Hydro to investigate the

travelled to Ramea for a tour and demonstration of the Energy Project.

potential for the integration of alternative energy sources, including solar, wind and mini-hydroelectric facilities into isolated communities that rely

In 2010, Nalcor completed the construction of the project, individually

on diesel generation as a primary means of electricity. Seven communities

commissioned all equipment and continued to design and build the Energy

selected for the study were: Cartwright, Charlottetown, Hopedale, Makkovik,

Management System (EMS). The EMS will automatically control and monitor

Maryâ&#x20AC;&#x2122;s Harbour, Nain and Port Hope Simpson.

the equipment to safely and reliably deliver electricity to customers in Ramea. In 2011, final commissioning will be completed and Nalcor will

This initiative is primarily guided by the two main objectives outlined in the

embark on the demonstration phase of the project. This multi-year phase

Newfoundland and Labrador Energy Plan: protection of the environment

involves studying the operation of the facility, analyzing collected data and

through the reduction of emissions, and the development of energy projects

considering issues around the role this technology can play in an isolated

in the best long-term interests of residents of the province. ď Ž

electricity system.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENERGY EFFICIENCY AND CONSERVATION Industrial Energy Efficiency Program

Over the last couple of years, Hydro has made significant steps to support the Nalcor Energy corporate goal of environmental leadership. Hydro’s

Hydro also launched its Industrial Energy Efficiency Program (IEEP) in

energy conservation programs resulted in almost seven gigawatt-hours of

2010, providing a customized approach to energy savings for industrial

energy savings from Hydro retail customers and its own facilities in 2010.

customers. Baseline energy end-use audits were conducted to assist industrial customers in identifying opportunities for capital projects and

Hydro is planning more building upgrades in the future to increase

employee engagement opportunities. The results of these audits indicate

efficiency and demonstrate its commitment to the environment. In addition

priority areas for electricity efficiency for these customers and are useful in

to equipment changes, operational changes have been implemented to

Hydro’s validation of savings from completed projects. The IEEP also provides

reduce our office and facility’s consumption and lower peak demand.

funding for training and employee awareness projects to create the culture of conservation within the employee base and encourage innovation on conservation and efficiency.

Internal Energy Efficiency Hydro is continually seeking areas where energy can be saved by using energy as efficiently as possible, and are taking steps to create energy savings in its own facilities. Since 2007, Hydro has taken steps to save over 2,700,000 kWh of energy per year. That is about the same amount of energy used by 100 electrically heated, average sized homes in a year. Hydro promotes to its employees that lights, heating, air conditioning, and computers should be turned down, or turned off whenever possible, and at the end of the work day. Only after regular business hours should security and emergency lighting be necessary.

Hydro Place at night, where the only lights on are for cleaning crews and a few employees working late.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

ENERGY EFFICIENCY AND CONSERVATION takeCHARGE energy conservation program

On October 7, 2010, takeCHARGE launched the province’s first energy efficiency challenge for municipalities - takeCHARGE of Your Town Challenge.

takeCHARGE is a joint initiative between Newfoundland and Labrador Hydro

Between November 1, 2010 and January 31, 2011, 106 communities took

and Newfoundland Power that is aimed at providing Newfoundlanders and

the challenge to reduce their energy consumption. Energy consumption was

Labradorians with information, tools and rebate programs to assist them in

measured over this three-month period and the municipality that reduced

using energy wisely. 2010 was the first full year of activity for the takeCHARGE

their energy consumption by the highest percentage (compared to the

energy efficiency program, which provides rebates for ENERGY STAR windows,

same period last year) was determined the challenge winner. The winner of

insulation and thermostat upgrades, and commercial lighting.

the challenge, Admiral’s Beach, St. Mary’s Bay, received a $10,000 energy

®

efficiency upgrade for their municipal building(s). 

Mayors and Town Councillors who signed up for the takeCHARGE of Your Town Challenge at the launch held at the St. John’s Convention Centre.


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2010 ENVIRONMENTAL PERFORMANCE REPORT

COMMITTED TO OUR COMMUNITIES Hydro is dedicated to the promotion of environmental awareness and

Cartwright Green Team - Shoreline restoration project

preservation of Newfoundland and Labrador’s unique environment. A priority for Hydro is to build and cultivate partnerships with other

In partnership with the Southeastern Aurora Development Corporation

agencies and organizations to achieve common environmental objectives.

(SADC) and corporate support from Nalcor Energy, the Cartwright Green

These partnerships maximize human and financial resources to generate

Team improved the shoreline around the community of Cartwright, Labrador,

a body of knowledge and experience that can be used for environmental

as well as other beaches and walking trails in the area. The Green Team

decision-making in a variety of applications.

documented all refuse found along the shoreline, removed what refuse could be moved, and recorded GPS coordinates of immovable objects.

Conservation Corps Newfoundland and Labrador

By documenting the refuse found along the shoreline and presenting the findings to the community members, the Green Team aimed to educate the

Since 1996, Hydro has supported the Conservation Corps of Newfoundland

community on better environmental practices. Plant, animal and bug life

and Labrador’s Green Team Program. The program employs youth for summer

were also documented on log sheets and photos were taken.

terms to support programs focused on the environment, conservation, education and community. Hydro’s support of more than $200,000 over the

The Green Team also educated youth and the community about global

last 15 years has funded 15 Green Teams.

warming, water conservation and pollution through Environmental Awareness Events held at the Cartwright Family Resource Centre.

Nalcor and Hydro share the Conservation Corps’ vision of healthier communities and recognize the importance of empowering and educating Cook’s Harbour – Limestone Barrens

our youth through projects such as Green Team. a

The Cook’s Harbour Green Team worked with Dulcie House, Coordinator of

restoration and protection project of the

the Limestone Barrens Habitat Stewardship Program, to complete

Limestone Barrens near Cooks Harbour on

Community Land and Use Surveys in the rural Newfoundland communities

the Great Northern Peninsula; while Nalcor

of Cook’s Harbour, Wild Bight, and Boat Harbour. The goal of completing

funded a shoreline restoration project in

these surveys was to raise awareness among the surrounding community

Cartwright, Labrador.

about the critical habitat they are living in.

Hydro’s

2010

sponsorship

funded


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2010 ENVIRONMENTAL PERFORMANCE REPORT

COMMITTED TO OUR COMMUNITIES The team spent two days in Sandy Cove, NL working with Susan Squires of

Nature Conservancy of Canada

the Department of Environment and Conservation, Dulcie House, Regional Supervisor Kara Snow, students from Memorial University, and the Flower’s

Since the early 1990s, the Nature Conservancy of Canada (NCC) has protected

Cove Green Team. The goal for these two days was to restore the limestone

22 properties encompassing 2,549 acres of Newfoundland’s natural habitat,

barrens in the Sandy Cove area without using automotives that would

such as Sandy Point and Lloyd’s River Escarpment. Hydro’s support over

disturb and destroy the critical habitat. The Cook’s Harbour Green Team

the last number of years has helped the NCC, a conservation land trust

also completed five environmental awareness events focused on climate

organization which protects the country’s most ecologically significant land,

change, limestone barrens, and water conservation.

acquire 145 acres of land in the internationally recognized Grand Codroy Estuary Ramsar site.

Envirothon Newfoundland and Labrador Envirothon is an environmental education competition for youth that raises awareness of environmental issues through hands-on learning and outdoor competitions in five subject areas: Aquatic Ecology, Forestry, Soils and Land Use, Wildlife, and Current Environmental Issues (selected annually). This competition is organized by Model Forest Newfoundland and Labrador, a not-for-profit corporation working on the implementation of activities that advance sustainable forest management and community-based economic development utilizing forest resources. Hydro has been a proud supporter of this initiative for several years, and in 2010, continued its support as a bronze partner. In 2010, the Cook’s Harbour Green Team worked with Dulcie House, Coordinator of the Limestone Barrens Habitat Stewardship Program, to complete Community Land and Use Surveys to raise awareness about the critical habitat they are living in.


2010 ENVIRONMENTAL PERFORMANCE REPORT

COMMITTED TO OUR COMMUNITIES MUN’s Botanical Garden Hydro owns and operates transmission and distribution line facilities on the Great Northern Peninsula. Some of the environments in this area are the limestone barrens habitat which contains rare and endangered plants (e.g., Barrens willow, Fernald’s braya and Long’s braya) protected by the Federal Species at Risk Act and Provincial Endangered Species Act. As part of Hydro’s commitment to protecting species of the limestone barrens, a strong partnership has been in place with Memorial University’s Botanical Garden for several years. In 2010, Hydro’s financial support and guidance was focused on the Botanical Garden’s efforts to develop a recovery plan for these species. Through this support, the Botanical Garden has been involved in off-site (or ex-situ) conservation. Ex-situ collections are used for experimentation and for reintroduction trials at suitable sites. They are invaluable as a failsafe in the event that the natural populations become extinct in the wild and for public education about these species. Work in 2010 was particularly focused on the propagation, maintenance and evaluation of the ex-situ populations of Braya longii, B. fernaldii and Salix jejuna. Field work was undertaken to collect Salix jejuna cuttings, and data collected on Braya seeds through counting and sorting. Consultation also took place with the Limestone Barrens Recovery Team on recommendations for the establishment and maintenance of the ex-situ populations of the rare and endangered species of the limestone barrens. 

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Profile for Nalcor Energy

2010 Environmental Performance Report  

All Nalcor Energy companies will help sustain a diverse and healthy environment for present and future Newfoundlanders and Labradorians by m...

2010 Environmental Performance Report  

All Nalcor Energy companies will help sustain a diverse and healthy environment for present and future Newfoundlanders and Labradorians by m...

Profile for nalcor
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