Ontario Power Generation

Future needs are leading Ontario Power Generation into a new era of infrastructure construction and recommissioning, executive vice president John Murphy tells Ruari McCallionOntario is a fortunate Canadian province. In Niagara Falls, it has one of the most popular tourist attractions in North America. While the visitor cannot fail to be impressed by the majesty and sheer power of the millions of tons of water thundering past every minute of the day, itÔÇÖs actually the river feeding the Falls that is the real treasure chest. North AmericaÔÇÖs industrial revolution began here, with hydroelectric turbines feeding power plants on either side of the international border through the waterway. To the south, itÔÇÖs the New York Power Authority (NYPA) that gains the benefit; on the Canadian side, Ontario Power Generation (OPG) is responsible for maintaining and developing most of the electricity that Ontario, the long-established heart of the countryÔÇÖs industry, needs to power its factories, offices and homes. OPG was formed in 1999 as an incorporated company owned by the Province of Ontario. It currently generates around 70 percent of the ProvinceÔÇÖs total electricity supply, from a mixture of hydro, nuclear and coal-fired power stations. Total capacity is in excess of 22,000 megawatts. OPGÔÇÖs revenues in 2007 were CAN$5.6 billion; it employs over 11,000 people and is headquartered in Toronto. Of all its power generating resources, thereÔÇÖs no doubt which people like most. ÔÇ£Hydroelectricity is one of peopleÔÇÖs favorite sources of supply,ÔÇØ says John Murphy, executive vice president - hydro. ÔÇ£ItÔÇÖs clean, renewable, and it lasts as long as thereÔÇÖs water.ÔÇØ OPGÔÇÖs hydro stations are the companyÔÇÖs heritage. Across the province of Ontario OPG operates 64 hydro stations, stretching from Caribou Generating Station north of Kenora (near the Manitoba border) to the R.H. Saunders station in Cornwall. ThatÔÇÖs about the same distance as from Buffalo, New York to Tampa, Florida. The oldest is Decew Falls GS, located in St. Catharines, and it has provided electricity since 1898. While the average age of OPGÔÇÖs stations is over 70 years, these heritage assets continue to provide clean, renewable electricity for the people of Ontario. Last year they produced more than 31 billion kilowatt-hours of electricity. However, in terms of total output, hydro lies second to OPGÔÇÖs nuclear stations, Darlington and Pickering A and B, which produced over 44 billion kilowatt-hours in 2007.┬á ÔÇ£The provincial government has selected OPG to build two new nuclear reactors at the site of the current Darlington nuclear power plant, which is located about 70 kilometers east of Toronto,ÔÇØ says Murphy. Darlington on its own provides about 20 percent of OntarioÔÇÖs electricity needs, from four CANDU (Canadian deuterium uranium) generators. ÔÇ£The government is leading a Request for Proposal process through Infrastructure Ontario. This process will determine which technology choice will be used to operate the new plants. ItÔÇÖs a competitive bidding process involving Atomic Energy Canada Limited (AECL), Areva and Westinghouse. Once the decision is made, the project will be handed over to OPG.ÔÇØ Two other major nuclear plants are located in Pickering, on the eastern border of Toronto. Pickering A and Pickering B each have four units, though their capacity is smaller than the newer Darlington reactors. Like Darlington, the Pickering stations use AECL CANDU reactors. Pickering A, consisting of four generators, was laid up in 1998 and 2003. Pickering A Unit 4 was returned to operation in 2003, followed by Unit 1 in 2005. Today, six of the Pickering siteÔÇÖs eight units are operational. OPG is currently determining whether there is a business case to refurbish some of its other units as they approach the end of their original life in the next decade or so.Nuclear also produces virtually no carbon during operation. In the context of concern over greenhouse gases and atmospheric pollution, coal-fired power is not viewed as part of OntarioÔÇÖs energy future, and the provincial government has directed that coal-fired generation cease by 2014. OPG has four coal-fired plants: at Atikokan and Thunder Bay, in the northwest; at Lambton, near Sarnia; and at Nanticoke, on the north shore of Lake Erie. With a capacity of just under 4,000 MW, Nanticoke is the largest. With a total capacity of more than 6,000 MW, coal-fired power will be missed when it ends. ÔÇ£WeÔÇÖre looking to the future,ÔÇØ says Murphy. ÔÇ£WeÔÇÖre testing the use of renewable biomass at all the coal plants. ItÔÇÖs challenging, but itÔÇÖs an exciting opportunity. We have already demonstrated that we can possibly achieve 100 percent capacity at the Atikokan plant. The supply of biomass fuel, processing and transportation infrastructure will have to develop. What weÔÇÖre looking at is wood pellets from forestry and agricultural by-products. We have no intention of competing with food stocks.ÔÇØ While a nuclear plant is capable of generating a lot of powerÔÇöfar more than either hydro or fossil from the same physical footprintÔÇöitÔÇÖs a complex technology and takes time to build. ÔÇ£With regulatory approvals and build requirements, nuclear has a longer lead time than other power sources. We donÔÇÖt yet have the final timetable for the new generators, so we can say with confidence that any new nuclear capacity will not arrive in time for the end of 2014, when we will stop using coal,ÔÇØ says Murphy. At the same time as existing capacity is going to be reduced, load growth continues. So Ontario will need new sources of electricity. One thing that Canada has in abundance is water; while the southern part of the province is heavily industrialized, the northern hinterland is still mostly rural, with a lot of wilderness through which run a multitude of riversÔÇöthus the early reliance on hydroelectric power. But the estate is aging, and, while the flow of water can be pretty firmly relied upon for hundreds of years into the future, the power stations themselves require maintenance and renewal, and that is a major project for OPG.ÔÇ£The existing fleet of assets ranges from very small to very large. Unit One at the DeCew plant at St. Catharines is over 110 years old, and itÔÇÖs still capable of producing 23 MW,ÔÇØ Murphy says. ÔÇ£We have embarked on a significant reinvestment and upgrade project, which begins with looking at the available waterflow. We have already been applying more modern and efficient technologies for a number of years, with more efficient runners [turbines], transformers and upgraded control systems. Over the past five years we have added 125 MW of power, entirely from our existing plants. Over the next five years, weÔÇÖre scheduled to add a further 53 MW, again from our existing capital infrastructure.ÔÇØ OPGÔÇÖs most recent results from its hydro plants have been the best in its history. One of the biggest projects underway is the 10.4-kilometer Niagara Tunnel, being dug by the worldÔÇÖs largest hard-rock tunneling machine. The tunnel is 14.4 meters in diameter and will have a peak capacity of 500 cubic meters of water per second when completed. It will run from just above the Falls on the Niagara River to the Sir Adam Beck hydro station, located about 7 miles south of Lake Ontario. When completed, the new tunnel will provide enough additional water to the Adam Beck station to generate enough electricity each year to power 160,000 homes. But if so much water is being taken out of the river, wonÔÇÖt there be a noticeable impact on the Falls themselvesÔÇöand so on the tourist economy of the area?Murphy explains: ÔÇ£Under the international agreement, the water is shared to accommodate tourism and electricity generation. The 1950 treaty between the two countries stipulates the amount of water that must flow over the Falls to maintain its scenic beauty and permits the remaining flow to be diverted for hydroelectric power generation. The treaty states that no less than 2,832 cubic meters of water per second must flow over the falls during the daytime in the annual tourist season, from April 1st to October 31st. At all other times, no less than 1,416 cubic meters of water per second must flow over the Falls. Right now weÔÇÖre not using the full amount of water that is allotted to us. The Tunnel will allow us to use that water.ÔÇØWater is controlled at the International Niagara Control Works (INCW), which was constructed in the 1950s as part of a program of remedial works on the Niagara River designed to control the volume and distribution of flow over the Falls. Operation of INCW is monitored by the International Niagara Control Board. But while the Niagara Tunnel is OPGÔÇÖs biggest hydro infrastructure scheme, it is by no means the only one, and much smaller projects can have significance far beyond their size.ÔÇ£On Lac Seul in the northwest, weÔÇÖre optimizing the use of water at Ear Falls generating station with a new 12.5-MW station,ÔÇØ he says. ÔÇ£ItÔÇÖs a relatively small plant, but itÔÇÖs brand new and is the first new hydro construction in Ontario in decades. It represents a ramp-up of our move back into construction, and itÔÇÖs a test of our design and build capabilities and the evolution of our relationships with the First Nations of Ontario.ÔÇØ That last point, the relationship with the indigenous communities, is a very important one, and it wasnÔÇÖt always either happy or nurtured.ÔÇ£No hydro development in the north of the province is taking place without the support of the First Nations. The issue is how we garner and ensure that support,ÔÇØ says Murphy. ÔÇ£The process begins with looking back on the past. Realistically, there was a lot of historical wrongdoing 50 to 80 years ago, when a lot of our infrastructure was constructed. There was a lack of consultation and an absence of assessment of the impact of those projects and the consequences. We have to understand and appreciate what was wrong in the past and work out settlements for past grievances, from financial redress through formal apologies. At that point we can move forward to develop partnerships with Aboriginal peoples for future development.ÔÇØIn addition to the Tunnel and the project in Ear Falls the company is also rebuilding four stations in northeast Ontario and adding a unit to its Healey Falls Station, located in southern Ontario. Other projects are in the planning stages.┬á The company is focused on performance, providing about 70 percent of the provinceÔÇÖs electricity in an open and environmentally responsible manner.┬á ┬á