2013-03-11 Nspml-Nspi (Ca-Sba) Ir-01-46
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Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Request IR-1: 2 3 With reference to Application, page 15, lines 5-8, what electricity markets would have 4 improved access with the Project? 5 6 Response IR-1: 7 8 The Project will provide access to Newfoundland and Labrador’s hydroelectric resources and 9 other sources of generation that are expected to be developed in NL as well as improve access to 10 NB and New England markets. Date Filed: March 11, 2013 NSPML (CA/SBA) IR-1 Page 1 of 1 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Request IR-2: 2 3 With reference to Application, page 16, lines 2-6: 4 5 (a) Please explain and quantify how the Project will also increase Nova Scotia’s 6 capacity to develop new intermittent sources of electricity, such as wind, and 7 incorporate them in the Nova Scotia’s electrical transmission system. 8 9 (b) Please explain and quantify how the transmission upgrades postulated for the 10 “Other Import” alternative would increase Nova Scotia’s capacity to develop new 11 Intermittent sources of electricity, such as wind, and incorporate them in the Nova 12 Scotia’s electrical transmission system. 13 14 Response IR-2: 15 16 (a) With the addition of the Maritime Link, a second interconnection to new, incremental and 17 dispatchable renewable energy, NS Power will have the ability to schedule the NS Block 18 daily and it will be able to optimize the daily profile of the NS Block within the agreed 19 parameters. This will enhance the ability to respond to other intermittent sources like 20 wind. Additionally, the Surplus Energy could be used to fill in for periods when wind 21 production is below schedule. 22 (b) In the Other Import scenario, there is a required capital investment in the second interconnection or tie between NS-NB. This second tie will allow the import of energy and capacity and allow the first tie to remain available for balancing intermittent energy sources. The limitation of the “Other Import” is that the same market exists as with the original tie, therefore there is no new source of energy. NS Power’s needs for the energy will increase the demand placed upon this market. The Maritime Link on the other hand brings new sources and potential new counterparties. Date Filed: March 11, 2013 NSPML (CA/SBA) IR-2 Page 1 of 1 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Request IR-3: 2 3 With reference to Application, page 17, lines 2, 13-14; page 105, lines 13-15; page 106, lines 4 3-4; page 149, line 12; and page 150, lines 3-4; please explain why only the Project but not 5 the “Other Import” alternative supports the development of additional intermittent 6 renewable energy resources in Nova Scotia, such as wind and tidal. 7 8 Response IR-3: 9 10 Please refer to SBA-IR2. 11 12 One of the benefits of an energy loop in Atlantic Canada, enabled through the Maritime Link, is 13 the creation of an electricity market that has abundant supply of energy. The energy flowing 14 through this new loop is reliable energy and of such quantities that it can serve as back-up for 15 Wind and eventually tidal. The “other import” does not enable an energy loop and as a result 16 could only import a specific amount of energy into Nova Scotia and would provide limited 17 additional energy to support a back-up for wind or tidal. 18 19 It should also be noted that the location of the Maritime Link provides access to energy in the 20 vicinity of where NS Power’s coal fired units will be required to come off line to meet new 21 Federal emissions regulations. This ensures that transmission capacity throughout the entire 22 province will continue to be used when electricity starts flowing from Newfoundland and 23 Labrador. Based on its location and where most of the energy demand is in Nova Scotia, the 24 other import would leave these transmission assets underutilized in Cape Breton. Date Filed: March 11, 2013 NSPML (CA/SBA) IR-3 Page 1 of 1 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Request IR-4: 2 3 With reference to Application, page 18, lines 25, please quantify the remaining technical 4 potential for hydroelectric generation in Nova Scotia. Distinguish new sites from nameplate 5 expansions at existing facilities. 6 7 Response IR-4: 8 9 There are no further large scale (>30 MW) hydroelectric generation identified in Nova Scotia by 10 NS Power. The sites that exist for small scale hydro are limited, as well as difficult to justify 11 economically and environmentally. The two hydro river systems not developed in Nova Scotia 12 are in salmon bearing rivers in sensitive ecological areas – Northeast Margaree River in Cape 13 Breton and St Mary’s River in Guysborough County on mainland Nova Scotia. NS Power 14 considers neither to be viable from an environmental perspective alone. NS Power has very 15 modest expansion opportunities at existing sites. Most of the improvement opportunity is in 16 technologically upgrading components, automating the facilities and extending life through re- 17 investment. Date Filed: March 11, 2013 NSPML (CA/SBA) IR-4 Page 1 of 1 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Request IR-5: 2 3 With reference to Application, page 18, lines 25-26: 4 5 (a) Please quantify the remaining technical potential for natural gas generation in Nova 6 Scotia. Distinguish new sites from expansions at existing facilities. Please base the 7 analysis on unused pipeline capacity. 8 9 (b) For new gas fired peakers or combined cycle plants located in Nova Scotia, what 10 pipeline or local distribution system improvements would be needed, if any, to 11 support gas assurance requirements for each technology type? 12 13 (c) For new gas fired peakers or combined cycle plants located in Nova Scotia, what 14 upstream pipeline system improvements would be needed, if any, to support 15 deliverability into the Province for each technology type? 16 17 (d) What assumptions did NSPML or its advisors make regarding the emergence of 18 new natural gas supplies in New Brunswick, Sable Island, or Deep Panuke to 19 support gas fired generation in Nova Scotia? 20 21 (e) What assumptions did NSPML or its advisors make regarding the utilization of the 22 Repsol Canaport LNG import terminal over the study period to support gas fired 23 generation in Nova Scotia? Date Filed: March 11, 2013 NSPML (CA/SBA) IR-5 Page 1 of 3 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 Response IR-5: 2 3 (a-c) Natural gas generation limits in the province would be based upon existing infrastructure 4 (generation and pipelines) and available supply, and the cost of the generation would be 5 subject to market or contracted prices available. Currently, the Province is fed by a single 6 pipeline that has a technical capacity of 600 mcf/day North to South if a source exists to 7 fill the pipe. The Lateral pipeline to Halifax has a capacity of approximately 100 mcf/day, 8 and can support the 500 MW of existing gas generation currently located in Dartmouth, 9 Nova Scotia. Any further gas generation added to the Halifax lateral will restrict the 10 potential to produce more electricity at peak demand. If we assume the 100 mcf/day 11 supports 500 MW, the main line if only serving Nova Scotia (not New Brunswick and 12 New England) and dedicated to generation only, we could assume 3000 MW would be 13 possible (500MW/100mmcf x 600 mmcf= 3000 MW). There presently exists about 14 1000 MW of natural gas based generation in Nova Scotia and New Brunswick. The 15 growth to 3000 MW would be an unrealistic level of capital investment without multiple 16 pipelines and back-up generation alternatives. 17 18 (d) NSPML has not included any limitation on the use of natural gas generation in the 19 modeling other than the emission constraints which would be required. NSPML is aware 20 of the publicly stated plans of Exxon Mobil to initiate decommissioning plans for SOEP 21 and the expected life Encana has proposed for Deep Panuke. NSPML is also aware of the 22 progress in potential for shale gas development in New Brunswick. These were not used 23 to modify or alter the natural gas price forecast used in the alternatives analysis. 24 However, the expectation that SOEP may finish production by 2017 and that Deep 25 Panuke has an expected life of 13 years would indicate that by the mid 2020’s there is a 26 higher degree of concern that gas prices will be pressured higher than lower for our 27 region without new source development. Despite natural gas prices in the US being 28 depressed by shale gas, the gas market in New England remains volatile and demand 29 spikes place upward pressure on prices in our region. Date Filed: March 11, 2013 NSPML (CA/SBA) IR-5 Page 2 of 3 Maritime Link Project (NSUARB ML-2013-01) NSPML Responses to Consumer Advocate/Small Business Advocate Information Requests NON-CONFIDENTIAL 1 2 (e) NSPML has not limited the use of any source of natural gas, including LNG imports, in 3 selecting the use of natural gas generation in the dispatch plans for the alternatives.