Hydro-Qu├®bec

A strong currentAs the official energy supplier to the Province of Qu├®bec, Hydro-Qu├®bec finds energy in both the water and the air. Hydro-Qu├®bec owns and operates 53 power generating facilities across the Province. In 1944, the Qu├®bec Hydro-Electric Commission was created by the provincial government from the electric and gas assets of Montreal Light, Heat and Power Company Consolidated. Hydro-Qu├®bec was officially ÔÇ£nationalizedÔÇØ by the provincial government in 1963, following the provinceÔÇÖs buyout of the 45 remaining private electricity distributors.The next several decades saw the company expand into both traditional and alternative types of power generation, including nuclear technology, hydroelectric-power, oil-fired power plants, and the La Grande complex at James Bay in northern Qu├®bec, which the company likes to call ÔÇ£the most imposing hydroelectric facility in the worldÔÇØ. One gem in Hydro-Qu├®becÔÇÖs crown is its Beauharnois generating station, located along the St. Lawrence River 25 miles south of Montreal. Equipped with 38 generating units stretching for nearly a kilometer, it is one of Hydro-Qu├®becÔÇÖs most powerful generating stations. Built in 1929, Beauharnois is an example of both function and form. Thanks to its award-winning Art Deco architecture, it is one of Qu├®becÔÇÖs outstanding heritage buildings. It is as long as three Eiffel towers laid end to end, and the equivalent of three Olympic swimming pools flow through the station every second.A rehabilitation project to extend the service life of Beauharnois is currently underway, at an estimated cost of $1.3 billion. Generators are replaced at a rate of one per year, at a cost of $30 million each (triple the price of 1998). Thanks to improved turbine technology in the generators, operating efficiency has increased between three and four percent. In addition to the overhaul of individual generating units, Hydro-Qu├®bec is constructing new buildings and rehabilitating the 120-kV lines. The facility control room also underwent a major overhaul to completely automate the process and provide a single operator with a full view of the plant operation, which significantly reduces labor costs. Other recent improvements have been made to the fire protection equipment, as well as upgrading a rail connection to the plant. Another major facet of the Beauharnois renovation project involved risk-based analysis using HydroVantage, Web-based decision support software. With 36 generating units at the site, each is equipped with a single 3-phase transformer. If a transformer failed, there would be a daily loss C$30,000 each day it is out of commission. Hydro-Qu├®bec constructed a detailed model that considered the individual characteristics of each of the 36 transformers, and also an aggregate model for a bank of standard transformers. Sensitivity analyses were conducted and correlated between the two models. The resulting recommendation was immediate purchase of a single spare transformer, which would create significant savings in case of a failure. ÔÇ£HydroVantage recommended the right amount of investment at the right time to avoid significant production losses in case of major failures. Recommendations have been fully implemented,ÔÇØ said Bernard Bourgeois, assistant plant manager at Beauharnois.An increase in wind energy is also on the horizon for Hydro-Qu├®bec, with plans to expand its wind power capacity, with deliveries to come on stream in stages from 2011 to 2015. The projects will require an estimated overall capital outlay of $5.5 billion, including $1.1 billion for transmission infrastructure. Hydro-Qu├®bec Distribution has been working with Deloitte Inc. to analyze the bids and to apply the prescribed tendering and contract award procedure. ÔÇ£Hydro-Qu├®becÔÇÖs commitment to renewable energy sources gives us a substantial edge in an energy market where reducing greenhouse gas emissions has become an important issue,ÔÇØ said Daniel Garant, executive vice president of finance and CFO. ÔÇ£We contribute to the growth of other green energies, such as wind power, by signing contracts for energy purchases from private companies, and we encourage our customers to conserve energy.ÔÇØ ┬á