a nalcor energy company May 15, 2017

Transcription

1 +.-, ~ t.:,... ;. ~... ~ ~ :,.,. ~ 'n :... ~ r _ P...4 n n '^lu 1. newfoundland labrador ro a nalcor energy company May 15, Hydro Place. 500 Columbus Drive. Ṗ O. Box 124Q0, St. John's, N~ Canada A16 4K7 t q0 f i800 Board of Commissioners of Public Utilities Prince Charles Building 120 Torbay Road St. John's, NL A1A 5B2 Attention: Ms. Cheryl Blundon Director of Corporate Services &Board Secretary Dear Ms. Blundon: Enclosed are nine (9) copies of Newfoundland and Labrador Hydro's Quarterly Regulatory Report for the period ending March 31,. The report is divided into four sections, as follows: Section I -Quarterly Summary; Section II -Contribution In Aid of Construction Activity; Section III -Customer Damage Claim; and, Section IV -Quarterly Performance Indicators Report. Several new items have been added to the Quarterly Regulatory Report in compliance with the revised Power Outage Incident Reporting Policy, which became effective January 1, as follows: Section I s , Generation Outage Summary; Section I s. 9.5, Line Contacts; and, ~ Section IV s. 5.7, Rural Systems Service Continuity Customer Interruptions by Cause. Section I s. 9.2 includes an update on the status of the Rate Stabilization Plan Surplus Refund, in accordance with Board Order No. P.U. 36(2016). If you have any questions on the enclosed, please contact the undersigned. Yours truly, NEWFOUNDLAND AND LABRADOR HYDRO..r _ ~' ~ Tracey ~L ennell Senior Counsel, Regulatory TLP/Ib Encl. cc: Gerard M. Hayes -Newfoundland Power,...,,.

2 ARTER ENDED December 31, 2016 A REPORT TO THE BOARD OF COMMISSIONERS OF PUBLIC UTILITIES Quarterly Regulatory Report For the Quarter Ended March 31, A Report to the Board of Commissioners of Public Utilities

3 UTILITIES Quarterly Summary For the Period Ended March 31, A Report to the Board of Commissioners of Public Utilities

4 Quarterly Regulatory Report For the Period Ended March 31, INDEX TAB Quarterly Summary 1 Contribution In Aid of Construction Activity 2 Customer Damage Claim 3 Quarterly Performance Indicators Report 4

5 Q1/ Quarterly Regulatory Report Table of Contents 1.0 Highlights Safety Hydro s Safety Vision for Safety Performance Safety Initiatives Customer Service Customer Statistics Operations Energy Supply Energy Supply Island Interconnected System System Hydrology Island Interconnected System Energy Supply Labrador Interconnected System Fuel Prices Energy Supply Isolated Systems Statement of Energy Sold Asset Management and Investment Capital Budget TL TL Circuit Breakers Distribution Systems Reliability Customer Reliability Indicators Generation Outage Summary Integrated Annual Work Plan March Wind Storm Financial Capital Expenditures Environment and Conservation Customer Conservation and Demand Management takecharge Partnership Hydro CDM Targets Hydro Residential Program Isolated Systems Community Energy Efficiency Program Hydro Commercial Program Hydro Internal Program Community Partnership with Heart and Stroke Foundation Other Ramea Update Capital Costs Operating Costs Newfoundland and Labrador Hydro i

6 Q1/ Quarterly Regulatory Report Reliability and Safety Issues Rate Stabilization Plan Surplus Refund First Disposition of Refunds Residential Energy Rebate (RER) Inter-utility Cooperation Customer Communications Special Cases Rate Stabilization Plan Surplus Refund Costs Diversity and Inclusion Women s Leadership Network International Women s Day Line Contacts APPENDICES Appendix A Generation Outage Report Appendix B Financial Statements Appendix C Rate Stabilization Report Newfoundland and Labrador Hydro ii

7 Q1/ Quarterly Regulatory Report 1.0 Highlights Table 1: Highlights For the twelve months ended March 31, Actual 1st Quarter Target Actual 2016 Actual YTD Annual Target Safety Lead: Lag Ratio 1950:1 750:1 783:1 1950:1 750:1 All Injury Frequency Rate Production Quarter End Reservoir Storage (GWh) 1, ,350 1, Hydraulic Production (GWh) 1, , , , ,490.8 Holyrood Fuel cost per barrel ($) Holyrood Efficiency (kwh/bbl) Electricity Delivery Energy Sales (GWh) 2,578 2,579 2,544 2,578 7,666 Financial ($millions) 2 Revenue Expenses Net Operating (Loss) Income (2.8) Rate Stabilization Plan ($millions) Current RSP Balance (217.7) (55.8) (356.2) (217.7) (31.2) Hydraulic (58.9) (28.1) (69.0) (58.9) (14.8) Utility (30.3) (25.9) (77.9) (30.3) (16.3) Industrial (1.7) (1.8) (0.4) (1.7) (0.1) Segregated Load (101.2) N/A (70.6) (101.2) N/A Utility Surplus (25.9) N/A (135.8) (25.9) N/A Industrial Surplus 0.3 N/A (2.5) 0.3 N/A Full Time Equivalent (FTE) Employees 3 Regulated N/A Non-Regulated 56.0 N/A Minimum energy storage target. 2 The Hydro budget reflects proposed new customer rates to reflect Board Order No. P.U. 49(2016). Financial figures exclude non-regulated activities. Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. 3 One FTE is the equivalent of actual paid regular hours - 2,080 hours per year in the operating environment and 1,950 hours per year in Hydro's head office environment. budgeted FTE includes home based FTEs only, not including any FTE charges in or out to account for unregulated activities. The actual 2016 and FTEs include home based FTEs, net of FTE charges in and out to account for unregulated activities. Newfoundland and Labrador Hydro Page 1

8 Q1/ Quarterly Regulatory Report 2.0 Safety 2.1 Hydro s Safety Vision for Hydro s vision for safety remains unchanged in. Safety is goal one and, as such, Hydro has developed and continues to foster a safety culture in which all employees share a zero harm mindset. Hydro s employees continue to embrace its Safety Credo by demonstrating personal ownership for their own safety and the safety of others. Hydro takes its responsibility to ensure the safety of its employees and the community at large very seriously and continues to strive for zero harm. Hydro s framework for safety excellence includes a balanced focus on culture and process as it evolves its safety program towards an ISO Safety Management System. As Hydro maintains its focus on injury prevention awareness in areas such as mental health, hearing conservation, and driving safety, it will continue to improve its safety performance as it progresses on its journey to achieve reach world class safety status. 2.2 Safety Performance Table 2 provides an overview of Hydro s safety performance in the first quarter of compared to the first quarter of 2016, as well as 2016 s annual performance. Newfoundland and Labrador Hydro Page 2

9 Q1/ Quarterly Regulatory Report Table 2: Safety Performance Detail First Quarter First Quarter 2016 Annual 2016 Safety Observations 1, ,775 Lost Time + Medical Treatment Injuries LT 0 MT 1 LT 0 MT 1 LT 1 MT 5 Lead/Lag Ratio 1,950:1 783:1 629:1 All Injury Freq. Rate Lost Time Freq. Rate Severity Rate (Days Lost) High Potential Incidents 0.00 (0) 0.00 (0) 0.25 (2) Hydro experienced one medical treatment injury during the first quarter of and maintained zero lost time due to injury. This is consistent with the same period in Hydro continues to work to reduce its average All Injury Frequency (AIF) rate, which, for the first quarter of is Injury prevention awareness activities, safety culture initiatives, and adherence to established safety programs have all contributed to a downward trend in Hydro s year-over-year AIF rate for the past two years. Chart 1 shows Hydro s AIF rate for the past 10 years, and the opportunity AIF rate for. Newfoundland and Labrador Hydro Page 3

10 Q1/ Quarterly Regulatory Report Chart 1: Hydro All Injury Frequency Compared to CEA Benchmarks 4 Consistent with the AIF rate trend, Hydro has also experienced a reduction in its Lost Time Injury Frequency (LTIF) in the past two years. Hydro did not experience any lost time injuries in the first quarter of and aspires to maintain this performance throughout to achieve an annual LTIF rate of 0.00 this year. Chart 2 shows Hydro s LTIF rate for the past 10 years, and the opportunity LTIF rate for. 4 CEA benchmark data for 2016 is not yet available. Newfoundland and Labrador Hydro Page 4

11 Q1/ Quarterly Regulatory Report Chart 2: Hydro Lost Time Injury Frequency Compared to CEA Benchmarks Hydro s lost time severity rate has fluctuated considerably over the past 10 years, which reflects the varying nature of injuries experienced throughout this time period. As Hydro did not experience any lost time injuries in the first quarter of, the lost actual time severity rate for this period is Opportunity for is also Chart 3: NL Hydro Lost Time Severity Rate Compared to CEA Benchmarks Newfoundland and Labrador Hydro Page 5

12 Q1/ Quarterly Regulatory Report 2.3 Safety Initiatives During the first quarter of, Hydro continued several initiatives from the prior year. Hydro continued to support the Corporate Injury Prevention Campaign, which emphasized Hydro s top injury trends. These include slips, trips and falls, strain and sprains, and hand-related injuries. Hydro continued to focus on integrating new and young workers into its safety culture. Driving-related safety continues to be a high priority for Hydro. In, Hydro will expand its young workers program to include safety awareness and injury prevention related to dropped objects. Hydro remains committed to the continual improvement of the High Voltage Switching Program. Field visibility of management and safety professionals continued to be high priority for Hydro throughout the first quarter of. Hydro s public safety campaign regarding Power Line Hazards continued in partnership with other utilities and agencies across Canada during the first quarter of. The campaign focused heavily on promoting public awareness of the hazards posed by power lines. Hydro continued to maintain many industry safety partnerships, which include: the NL Joint Utilities Safety Committee, Atlantic Canada Electrical Utilities Safety Professionals, and the Canadian Electricity Association Safety Committee. The intent of these partnerships is to share information related to industry safety amongst members. Hydro s commitment to continual improvement of safety and health information remains unchanged and Hydro has continued to work on the development of a Safety Management System (SMS). Through the first quarter of, Hydro supported the development of a Corporate SMS Manual. Revisions completed or initiated to date in include: Incident Investigation and Reporting, Incident Communication, Emergency Preparedness and Response, and Workplace Violence Prevention. Hydro s Safety & Health Monitoring Plan continued to focus on program assessments, which are designed to confirm program compliance and identify opportunities for Newfoundland and Labrador Hydro Page 6

13 Q1/ Quarterly Regulatory Report improvement. Hydro established a plan for and is in compliance with quarter one targets. Newfoundland and Labrador Hydro Page 7

14 Q1/ Quarterly Regulatory Report 3.0 Customer Service 3.1 Customer Statistics Table 3 summarizes the number of Hydro customers in each customer class as of March 31,. Table 3: Customer Statistics for the Quarter ended March 31, FIRST QUARTER Actual 2016 Actual Budget ANNUAL 2016 Actual Customers Rural 38,634 38,432 38,458 38,594 Industrial CFB Goose Bay Utility Reading Days N/A 29.8 Newfoundland and Labrador Hydro Page 8

15 Q1/ Quarterly Report 4.0 Operations 4.1 Energy Supply Table 4 provides a summary of the sources of energy supply (Hydro owned and purchases) used to meet Hydro s Island Interconnected customer load requirements. Table 4: Hydro System Produced and Purchased For the period ended March 31, Actual (GWh) 2016 Actual (GWh) YTD Budget (GWh) Annual Forecast (GWh) YTD Actual ($ 000) Production (net) Hydro 1, , , ,600.6 N/A Thermal ,580.6 N/A Gas Turbines N/A Diesels (0.1) N/A Total Production 2, , , ,214.5 Energy Purchases Non-Utility Generators Rattle Brook Corner Brook Pulp and Paper ,016.1 Co-generation St. Lawrence Wind ,081.5 Fermeuse Wind ,784.5 Total Non-Utility Generators ,977.6 Secondary and Others CBPP Secondary and Capacity ,509.4 Assistance Vale Capacity Assistance Hydro Request for NP Standby Nalcor Energy ,506.2 Total Secondary and Other ,687.5 Total Energy Purchases , ,665.2 Hydro System Produced and Purchased 2, , , , Nalcor Energy includes Star Lake, Grand Falls and Bishop s Falls generation. Newfoundland and Labrador Hydro Page 9

16 Q1/ Quarterly Regulatory Report Energy Supply Island Interconnected System The total energy produced and purchased on the Island Interconnected System was 43.2 GWh (1.8%) higher in the first quarter of than during the same period in This is primarily a reflection of greater Utility requirement due to lower winter temperatures during the quarter. Higher energy requirements by Vale were partially offset by lower requirements at Corner Brook Pulp and Paper and Teck Resources; however, overall energy requirements from Island Industrial Customers was 5.4% higher during the first quarter of than the same period in Teck Resources ceased operations in June 2015 and remains at minimum power levels. Hydroelectric production in the first quarter of was 111 GWh (8.1%) higher during the first quarter of compared to the same period in The relative increase from 2016 is largely a reflection of significantly lower than average reservoir levels during the same period in Low inflows into the reservoir systems in the fall of 2015 and early in 2016 produced low storage levels, which resulted in increased thermal production and decreased hydroelectric production in early Reservoir inflows were below average in fall of 2016; however, reservoir levels remained well above minimum storage levels and no increase in thermal generation was required. Energy production from the Holyrood Thermal Generating Station was 20.1 GWh (3.0%) lower through the first quarter of than the same period in This is largely due to the increased thermal production in 2016 to support the recovery of reservoir levels. Standby generation was 74.3 GWh (73.9%) lower during the first quarter of compared to the same period in 2016, again due to the increased thermal production in 2016 to support the recovery of reservoir levels. Standby support was not required for hydrology reasons in but was still required for reliability considerations. Total energy purchases were 27.1 GWh (11.6%) higher during the first quarter of than the same period in This is primarily due to higher production from the Nalcor Exploits Newfoundland and Labrador Hydro Page 10

17 Q1/ Quarterly Regulatory Report generation facilities in the first quarter of. Production in early 2016 was low as a result of low inflows and reservoir storage during the winter months while production was closer to average. Production at the Corner Brook Pulp and Paper Co-Generation unit and the two wind farms were marginally lower than that of The energy supply for the Island Interconnected System is shown in Chart 4 and Tables 5 and 6. Chart 4: Island Interconnected System Energy Supply System Hydrology Island Interconnected System On December 31, 2016, storage in the system reservoirs was 11% lower than the seasonal Maximum Operating Level (MOL), which is above average. Inflows during the first quarter of were 34% lower than average. Generally, during the first few months of the year, there is at least one significant rain event and a period of snowmelt which causes high inflows and a rise in reservoir levels; however, that was not the case in the first quarter of. Although reservoir levels steadily declined through the quarter, they remained above minimum storage targets. As such, there was no requirement to increase thermal generation to displace hydraulic generation and improve/maintain water storage levels. Newfoundland and Labrador Hydro Page 11

18 Q1/ Quarterly Regulatory Report At the end of the first quarter, the aggregate reservoir storage level was 1,200 GWh (46% below seasonal MOL), which is lower than average but above minimum. This compares with an aggregate storage that of 1,350 GWh (45% below seasonal MOL) at the end of the first quarter of Snowpacks were low throughout the winter of 2015/2016 and by the end of March 2016 most of the snowpack had melted. In contrast, the snow survey undertaken in March found significant depths of snow remaining and overall 13% above average snow water equivalent values across the system. Table 5: March Snow Survey Results Basin (MCM) Average (MCM) Percent of Average (%) Long Pond Upper Salmon Meelpaeg Granite Burnt Victoria Hinds Lake Cat Arm Storage Levels End of First Quarter Table 6: System Hydrology Storage Levels (GWh) 2016 Minimum Target (GWh) 2016 (GWh) 1, ,346 6 Seasonal MOL was higher in winter 2015/2016 due to low snowpacks. Newfoundland and Labrador Hydro Page 12

19 Q1/ Quarterly Regulatory Report Chart 5: Total System Energy Storage Energy Supply Labrador Interconnected System Production (net) Table 7: Labrador Interconnected System Production For the period ended March 31, Actual (GWh) Year-To-Date 2016 Actual Forecast Annual Forecast (GWh) (GWh) (GWh) Gas Turbines (0.9) (0.7) Diesels (0.1) (0.2) Total Production (1.0) (0.9) Purchases CF(L)Co for Labrador (at CF) ,591.2 Labrador Interconnected Total Produced and Purchased , Purchases reflect recall energy from CF(L)Co for Labrador rural and industrial use including the former TwinCo block. Newfoundland and Labrador Hydro Page 13

20 Q1/ Quarterly Regulatory Report The purchased and produced energy on the Labrador Interconnected System was 27.2 GWh (3.7%) higher during the first quarter of than the first quarter of This is a result of increases in both the Hydro Rural requirements (increased 3.6%) and Industrial requirements in Labrador West (increased 3.0%) Fuel Prices During the first quarter of, market prices for No. 6 fuel decreased from approximately $76 per barrel at the beginning of the quarter to $64 per barrel at the end of the quarter. Ending inventory cost was $68.94 per barrel. This is higher than the current Newfoundland Power fuel rider price of $59.15 per barrel. There is currently no Industrial Customer fuel price rider for. There were five No. 6 fuel shipments received during the first quarter of, as listed below. Table 8: Fuel Shipments Delivery Date Quantity Price per bbl. (bbls.) ($) January , February 2 206, February 9 210, March 1 225, March , No. 6 fuel inventory on March 31, was 587,559 barrels. The following chart shows the No. 6 fuel prices for, compared to 2015 and 2016, as well as the Newfoundland Power fuel rider price of $59.15 per barrel. Newfoundland and Labrador Hydro Page 14

21 Q1/ Quarterly Regulatory Report Chart 6: No. 6 Fuel Oil 0.7% Sulphur Average Weekly New York Spot Price Table 9 provides the monthly forecast price of No. 6 fuel (0.7% sulphur) up to the end of March 2018 landed on the Avalon Peninsula. Newfoundland and Labrador Hydro Page 15

22 Q1/ Quarterly Regulatory Report Table 9: No. 6 Fuel Oil Sulphur Forecast Price April March Month April May June July August September October November December January 2018 February 2018 March 2018 Price ($Cdn/bbl) 0.7% The following chart shows Low Sulphur Diesel No. 1 (used in diesel generation) fuel prices for, compared to 2015 and Chart 7: Ultra Low Sulphur diesel Weekly Montreal Rack Price 8 The forecast is based on the PIRA Energy Group price forecast available March and an exchange rate forecast by Canadian financial institutions as of March 28,. Newfoundland and Labrador Hydro Page 16

23 Q1/ Quarterly Regulatory Report Energy Supply Isolated Systems Total isolated energy supply decreased by 0.6 GWh (2.5%) in the first quarter of compared to the same period in In comparison to the quarterly forecast for total produced and purchased energy for the isolated systems, year to date is slightly higher than forecast. The average cost of power purchased from Hydro Quebec, based on Montreal rack fuel prices, has increased from $88 per megawatt hour in the first quarter of 2016 to $109 per megawatt hour in. Average cost of power from Non-Utility Generators, based on current diesel fuel prices, has increased from $224 per megawatt hour in 2016 to $250 per megawatt hour in. Table 10: Isolated Systems Production For the Quarter ended March 31, Production (Diesels) Year-to-date Annual Forecast Actual 2016 Actual Forecast (GWh) ($000) (GWh) ($000) (GWh) ($000) (GWh) ($000) Gross , , , ,769.1 Net Purchases 9 Non-Utility Generators (NUGS) Hydro Québec ,089.8 Total Purchases ,271.5 Isolated Systems Total Produced (Net) and Purchased , , , , Purchases before taxes. 10 NUGS includes Frontier Power and Nalcor s wind/hydrogen facility in Ramea. Newfoundland and Labrador Hydro Page 17

24 Q1/ Quarterly Regulatory Report 4.2 Statement of Energy Sold Table 11: Statement of Energy Sold (GWh) For the Quarter ended March 31, YEAR TO DATE ACTUAL 2016 ACTUAL YTD BUDGET BUDGET Island Interconnected Newfoundland Power 2,061 2,037 2,059 5,915 Island Industrials Rural Domestic General Service Streetlighting Sub-total Rural Sub-Total Island Interconnected 2,328 2,294 2,321 6,956 Island Isolated Domestic General Service Streetlighting Sub-Total Island Isolated Labrador Interconnected CFB Goose Bay Rural Domestic General Service Streetlighting Sub-total Rural Sub-Total Lab. Interconnected Labrador Isolated Domestic General Service Streetlighting Sub-Total Labrador Isolated L'Anse au Loup Domestic General Service Streetlighting Sub-Total L'Anse au Loup Total Energy Sold (Before Rural 2,584 2,549 2,579 7,666 Accrual) Rural Accrual (6) (5) n/a n/a Total Energy Sold 2,578 2,544 2,579 7,666 Non-Regulated Customers 11 Labrador Industrials , Does not include non-regulated sales to Hydro Quebec for export. Newfoundland and Labrador Hydro Page 18

25 Q1/ Quarterly Regulatory Report 5.0 Asset Management and Investment 5.1 Capital Budget Hydro s Capital Budget was approved by the Board of Commissioners of Public Utilities (Board) in P.U. 45(2016). In addition to this approval for investment of $271 million in capital projects, Hydro carried forward $40 million from its 2016 capital program. As a result, Hydro s opening capital budget for was $312 million. 12 Hydro s forecasted capital expenditure as of March 31,, had increased to $355 million. The increase is largely due to the advancement of 2018 activities into related to the project to construct a 230 kv transmission line from Bay d Espoir to Western Avalon (TL 267). This project accounts for $37 million of the $43 million change. The remaining $6 million is primarily a result of two supplemental projects. One project is the construction of a fourth distribution feeder at the Bottom Waters Terminal Station 13 and another for the acquisition of two 230 kv transmission lines serving Labrador West. 14 Actual expenditures in the first quarter of were $61 million. During this period, projects advanced through various stages of planning, execution and close-out. The most significant capital expenditures and associated project activities in the first quarter are summarized below TL 267 Of the total forecasted expenditure in of $355 million, $213 million is for the construction of a 230 kv transmission line from Bay d Espoir to Western Avalon (TL 267). This project continued throughout the first quarter of and incurred a total quarterly expenditure of approximately $46 million. All necessary clearing activities were completed this period. The right-of-way access road construction continued, with access to approximately 75% of the tower locations completed. Tower foundation installation continued, with 379 of 583 tower foundations installed. Tower assembly continued, with 170 of 583 towers assembled. Anchor drilling also continued, with 165 of 583 structures completed. In addition, work continued by 12 Difference due to rounding. 13 Approved in Board Order No. P.U. 5(). 14 Approved in Board Order No. P.U. 7(). Newfoundland and Labrador Hydro Page 19

26 Q1/ Quarterly Regulatory Report both major contractors at the terminal stations. At the Western Avalon Terminal Station, work was focused on the interior fit up of the new building and manufacturing of the major equipment, including the gas insulated switchgear. At the Bay d Espoir Terminal Station, foundation works and other civil works advanced significantly and the major equipment, such as the breakers and disconnect switches, were received TL 266 Throughout the first quarter of, construction continued on TL 266, an 18 km transmission line between the Soldier's Pond and Hardwoods Terminal Stations. Approximately $4 million was expended in the first quarter of on this project. All remaining transmission line materials were received in the first quarter, including tower steel, foundation steel, anchors, guy wire, optical ground wire, and line hardware. Tower foundation installation began, with five of the 81 tower foundations installed. Progress has slowed recently to allow the TL 266 line contractor to supplement the TL 267 line contractor s resources to assist with achieving the required in service date for TL Circuit Breakers The capital program to upgrade circuit breakers continued in the first quarter of. A total of $2 million was expended for the engineering and procurement of various 230 kv, 138 kv, and 69 kv breakers. Construction activity will commence in the second quarter Distribution Systems There was significant activity and expenditures of over $1 million to upgrade Hydro s distribution systems during the first quarter of. This work included the installation of service extensions for 19 new customers, the replacement of 60 deteriorated or damaged wood poles identified during inspections, and engineering design and procurement activity for planned upgrades to the systems in Happy Valley, King s Point, L Anse au Loup, Bay d Espoir, Farewell Head, Paradise River (Labrador), and Sally s Cove. Newfoundland and Labrador Hydro Page 20

27 Q1/ Quarterly Regulatory Report Unforeseen Capital On Saturday, March 11,, the Island portion of the Province experienced a significant windstorm (the Windstorm) which resulted in damage to some of Hydro s transmission infrastructure. Hydro completed an unforeseen capital project to repair damage to structures on two of Hydro s transmission lines which failed as a result of the Windstorm. One of the failed structures was a three pole deadend structure on TL 201, while the two others were guyed Y aluminum towers on TL 212. Replacement of these three structures commenced immediately to enable Hydro to restore and maintain reliable service to customers. All three structures were replaced with wood pole structures, with those on TL 212 requiring engineering effort to design permanent replacements for the aluminum towers that no longer have replacements available due to age. The work was completed on March 16, at a cost of $449,000 using the Allowance for Unforeseen account. The March Windstorm is further discussed in Section 5.4. Newfoundland and Labrador Hydro Page 21

28 Q1/ Quarterly Regulatory Report 5.2 Reliability Customer Reliability Indicators Table 12: Customer Reliability Indicators For the Quarter ended March 31, Q Q1 Percent End Customer 16 SAIDI % End Customer SAIFI % Transmission SAIDI % Transmission SAIFI % Under frequency Load Shedding Events Distribution SAIDI % Distribution SAIFI % Hydro experienced two under frequency load shedding events during the first quarter. Event No. 1 On January 30,, at 1406 hours, the Hinds Lake unit became unavailable when the TL 243 transmission line breaker (B1L43) tripped in the Howley terminal station. The removal of approximately 60 MW of generation caused system frequency to drop to 58.7 Hz. This resulted in the activation of under frequency protection at Newfoundland Power (affecting 4,823 customers) and Corner Brook Pulp & Paper Limited. The total island load at the time of the incident was 1,117 MW. Hydro's Energy Control Center worked closely with Newfoundland 15 First quarter data does not include the March 11, Windstorm Significant Event. End Customer SAIFI: 0.44 interruptions/customer, End Customer SAIDI: 1.29 hours/customer including March 11 Windstorm Transmission T-SAIFI: 0.46 interruptions/dp, Transmission T-SAIDI: mins/dp including March 11 Windstorm 16 End Customer is a reliability measure of all end customers of electricity in the province supplied by Newfoundland & Labrador Hydro. The measure is a combination of Hydro s service continuity data and Newfoundland Power (NP) service continuity data for Loss of Supply outages resulting from events on Hydro s transmission system. Newfoundland and Labrador Hydro Page 22

29 Q1/ Quarterly Regulatory Report Power's Operations Group and all customers were restored within 5 minutes of the event occurring. Load Shed: Corner Brook Pulp and Paper 15 MW Newfoundland Power Total Load Shed: 20 MW 35 MW At 1415 hours on January 30,, the Hinds Lake unit became available and was returned to service at 1459 hours. Investigation determined that breaker B1L43, which isolates TL 243 and the Hinds Lake Generating Station on the end of TL 243 in the Howley Terminal Station, tripped while a technologist was testing circuits for TL 245. Test meter probes were inadvertently placed across the TL 243 contacts instead of the TL 245 contacts. Both terminal blocks for TL 243 and TL 245 are within the same cabinet. The meter had sufficient voltage to trigger the protection signal on B1L43, opening the breaker and isolating both TL 243 and the Hinds Lake Station. To prevent this from happening again in the future, a clear lexan cover has been placed over the two terminal blocks to prevent contact of the wrong points, and the crews have been informed of the lessons learned. Event No. 2 On February 13,, at 0921 hours, the Holyrood Combustion Turbine tripped. The removal of approximately 80 MW of generation caused system frequency to drop to Hz, resulting in the activation of the under frequency protection at Newfoundland Power (affecting 4,190 customers) and Corner Brook Pulp & Paper Limited. Total island load at the time of the incident was 1,580 MW. Hydro's Energy Control Center worked closely with Newfoundland Power's Operations Group and advised that power to customers could be restored within four minutes of the event occurring. Load Shed: Corner Brook Pulp and Paper 15 MW Newfoundland Power Total Load Shed: 22 MW 37 MW Newfoundland and Labrador Hydro Page 23

30 Q1/ Quarterly Regulatory Report Investigation determined that the unit tripped after the fire suppression system went off in the exhaust tunnel. A damaged cable in the fire detection system was discovered and repaired Generation Outage Summary Appendix A provides a summary of the status of Hydro s generating units throughout the first quarter of. It classifies which units were available, unavailable, and/or any associated derates. Further information is provided to the Board in Hydro s daily supply and demand reports Integrated Annual Work Plan Hydro has an integrated annual work plan (IAWP) consisting of all capital and maintenance work, for all regions and plants. The integration of the capital and operating plans provides many benefits for Hydro, including the ability to improve coordination of equipment outages. Chart 8: NL Hydro All AWP Activities A maintenance tracking system was implemented in early March 2016 and a maintenance tracking report is compiled on a bi-weekly basis. As shown in Chart 8, Hydro tracked on target with its revised baseline plan throughout the first quarter of. 17 Daily reports can be accessed at DemandStatusReports.htm. Newfoundland and Labrador Hydro Page 24

31 Q1/ Quarterly Regulatory Report Hydro also has an outage readiness tracker with a two and four week projection on equipment outage readiness. This provides visibility on factors that can affect upcoming maintenance or capital work, such as permitting or resource availability. Any areas that may prove a risk to readiness are flagged and addressed in advance of outages to ensure the plan can proceed. 5.4 March Windstorm On Saturday, March 11,, the Island portion of the Province experienced a significant Windstorm which resulted in outages to customers of Hydro and Newfoundland Power on the Burin and Avalon peninsulas. At its peak, Environment Canada reported sustained wind speeds of 106 km/hr and gusts of up to 158 km/hr at the St. John s International Airport. In preparation of the Windstorm, Hydro reviewed the weather warnings issued by Environment Canada in the days leading up to and including March 11, to ensure it was ready to respond to system related events and that necessary supplies and equipment were available. This included placing staff on standby, ensuring specific sites were staffed, ensuring vehicles and snowmobiles were fueled and available in strategic locations, and communicating storm /outage preparedness messages to the public. Due to extreme wind loads, Hydro experienced catastrophic failures of three structures over two transmission lines; TL201 connecting Western Avalon and Hardwoods terminal stations, and TL212 connecting Sunnyside and Linton Lake terminal stations serving the Burin Peninsula. Hydro also experienced trips to Units 1 and 3 at the Holyrood Thermal Generating Station as a result of the transmission events. Newfoundland Power also experienced damage to its assets, resulting in outages to its customers on the Burin and Avalon Peninsula. Both utilities worked together, and in parallel, to ensure that customers were restored as expeditiously and safely as the weather and electrical systems permitted. Hydro was able to return Holyrood Units 1 and 3 to service on March 12 and March 11, respectively, and reestablished TL201 and TL212 on March 12 and 13, respectively. During the Windstorm, there Newfoundland and Labrador Hydro Page 25

32 Q1/ Quarterly Regulatory Report was much uncertainty in how much damage the distribution system had sustained, thus Hydro worked closely with Newfoundland Power to restore customers as Newfoundland Power s distribution feeders became available to ensure the system was not negatively impacted. In the early evening on March 13,, upon replacement of the second failed structure on Hydro s transmission line TL212, the remaining Newfoundland Power customers on the Burin Peninsula were restored. 18 Hydro recognizes that power outages can have significant impacts on customers. For that reason, Hydro is committed to being prepared in advance for severe weather events such that it can respond to system events as quickly and safely as possible in order to restore power. Hydro is also committed to providing timely and accurate information to its customers and to the general public during power interruptions. 18 Hydro submitted a report on the Windstorm to the Board on April 7, which outlines the significant events on Hydro s system during the Windstorm event. It addresses the actions taken by Hydro in preparation of the Windstorm, an agreed joint timeline of the events leading up to and including the conclusion of customer outages, a description of the efforts undertaken by Hydro to restore its system, system reserves, and Hydro s communications to customers and key stakeholders during the Windstorm. Hydro also identified any new capital investments made within the last five years that were of assistance in preventing extended outages and expediting the restoration of power to customers. Newfoundland and Labrador Hydro Page 26

33 Q1/ Quarterly Regulatory Report Figure 1: Maximum Wind Gusts March 11-12, (Environment Canada) Figure 2: TL201, Structure 139 during Restoration Figure 3: TL212, Structure 397 during Restoration Newfoundland and Labrador Hydro Page 27

34 Q1/ Quarterly Regulatory Report 6.0 Financial On March 30,, Nalcor Energy, Hydro s parent company, held its Annual General Meeting (AGM) following the release of its Annual Report. The AGM is available to stream online at Statement of Income Regulated Operations For the three months ended March 31, 19 ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget Revenue 203, , ,783 Energy sales 203, , , ,553 1,254 1, Other revenue 1,254 1, , , , , , , , ,515 Expenses 33,936 33,811 31,560 Operating costs 33,936 33,811 31, , ,892 75, ,026 Fuels 100,892 75, , ,080 17,967 19,495 17,470 Power purchased 17,967 19,495 17,470 64,792 18,522 18,125 16,736 Amortization 18,522 18,125 16,736 73, ,653 6,866 Other (income) and expense 396 1,653 6,866 6,098 22,483 21,923 24,858 Interest 22,483 21,923 24,858 80, , , , , , , ,397 10,664 26,515 (2,780) Net (loss) income 10,664 26,515 (2,780) 23,118 Hydro's first quarter actual results have been completed using the 2007 Test Year inputs. Hydro anticipates that once the Board has made its final order regarding Hydro s Amended 2013 General Rate Application (GRA), Hydro s actuals will reflect the 2015 Test Year cost of service inputs. It is presumed that the difference between the revised balances reflecting the approved 2015 Test Year will be reflected as an adjustment in. Hydro's first quarter budget was completed using 2015 Test Year inputs. Hydro s regulated net income was $10.7 million, which represents an increase in profit of $13.4 million over This is primarily due a reduction in fuel consumed by the Holyrood combustion turbine. 19 Certain of the comparative figures have been reclassified with presentation adopted during the current period. Newfoundland and Labrador Hydro Page 28

35 Q1/ Quarterly Regulatory Report 6.1 Capital Expenditures Table 13: Capital Expenditures - Overview For the Quarter ended March 31, ($000) Board Approved Budget Q1 Actual Year to Date Actual Expected Remaining Expenditures Generation 25, ,363 Transmission & Rural Systems 235,587 27,690 27, ,294 General Properties 9, ,099 Allowance for Unforseen Events 1, Subtotal 271,266 28,916 28, ,307 Carryover Projects 38,256 31,295 31,295 6,961 Projects Approved by OC Projects Approved by Board Order 7, ,145 New Projects Less than $50,000 approved by Hydro Total Capital Budget ,021 60,580 60, ,196 FEED costs for 2019 Projects Total Capital Including 2019 FEED 317,021 61,035 61, , The construction of the Labrador West Transmission was authorized by OC , February 2, The total capital expenditures associated with this project to date were $12.6 million at March 31, and were included in Work in Progress. As such, they are currently excluded from average rate base. The costs to be included in rate base will be subject to review by the Board. 21 Includes CIAC s of $0.7M and Actuals of $0.1M. 22 Table 13 does not detail modifications to Hydro s infrastructure due to implementation of the Muskrat Falls Project, given that all aspects of incorporation of the Muskrat Falls Project are fully funded by the project. (Labrador Hydro Project Exemption Order (O.C and O.C , Newfoundland and Labrador Regulation 120/13). Expenditures related to these modifications were $2.4 million in the first quarter of. 23 These costs represent Front End Engineering and Design (FEED) costs incurred in related to, 2018, and 2019 capital projects. Newfoundland and Labrador Hydro Page 29

36 Q1/ Quarterly Regulatory Report Table 14: Capital Expenditures by Board Order For the Quarter ended March 31, ($000) Capital Budget Approved by Board Order No. P.U. 45(2016) 271,266 Carryover Projects 2016 to 38,256 Projects Approved by P.U. Board Order: Board Order No. P.U. 20(2016) 24 1,533 Board Order No. P.U. 5() 25 3,045 Board Order No. P.U. 7() 26 2, ,832 New Projects Under $50,000 approved by Hydro 189 Total Approved Capital Budget 317, TL 227 Distribution Line Sally s Cover L1. 25 Additions for Load Growth Bottom Waters. 26 Acquisition of two 230 kv Transmission Lines Labrador West. Board Order No. P.U. 7() approved the purchase of two 230kV transmission lines and corresponding capital spares and inventory totaling $3.2 million. The $0.4M inventory that is referenced in the application has been excluded for purposes of capital reporting. Newfoundland and Labrador Hydro Page 30

37 Q1/ Quarterly Regulatory Report 7.0 Environment and Conservation 7.1 Customer Conservation and Demand Management Table 15: Customer Conservation and Demand Management Measurement Year-to-date Annual Annual 2016 Actual Target Actual Achievement of EMS targets 27 3% > 95% 100% Annual energy savings from Residential and Commercial Conservation and Demand Management Programs 403 1,215 1,976 Annual energy savings from Internal Energy Efficiency Programs 28 All projects in progress takecharge Partnership Energy efficiency is important for the Province because it helps to reduce fuel burned at Hydro s thermal generating plants and helps reduce demand on the electricity system, all of which helps reduce emissions and operating costs. Hydro and Newfoundland Power partner to deliver the takecharge program which offers rebate programs to assist residential and commercial customers in reducing their electricity usage. takecharge combines the expertise and customer reach of both utilities and the two utilities work together to bring energy efficiency awareness and rebate programs to everyone in the Province Hydro Conservation and Demand Management Targets In, Hydro s activities in the takecharge program for residential and commercial customers are targeted to achieve annual energy savings of 1,215 MWh. Hydro is also targeting internal annual energy savings of 220 MWh from efficiency initiatives being pursued at Hydro s own facilities across the province. 27 An EMS target is an initiative undertaken to improve environmental performance internal energy savings were higher than planned due to additional work being completed beyond the original plan. Hydro seeks to identify and complete additional opportunities when possible. Newfoundland and Labrador Hydro Page 31

38 Q1/ Quarterly Regulatory Report Hydro Residential Program Hydro s residential portfolio included five programs offered jointly by the utilities and one solely by Hydro. The joint utility programs offered in include rebates for insulation, thermostats, heat recovery ventilators, a small technologies-appliance-and-electronics program, and a Residential Benchmarking program. Residential Benchmarking was launched in December 2016 and will continue until the end of It promotes customer behavior changes to a targeted number of participants to encourage more efficient energy use. In addition to the rebate programs, the joint utility partnership provided customer education and support activities that included outreach events, the takecharge website, and retailer partnerships. An initiative to promote mini-split heat pumps was added to the customer supports in 2016, which includes education, marketing, and an on-bill financing option for customers, as well as direct engagement with certified suppliers and installers of the equipment. In fall, the Provincial Government s Office of Climate Change will launch the Home Energy Efficiency Loan Program (HEELP). HEELP will provide low-interest loans to eligible residential customers for installation of heat pumps and insulation during the to 2020 period. This program will be delivered in partnership with takecharge Isolated Systems Community Energy Efficiency Program Hydro also provides an Isolated Systems Community Energy Efficiency Program. This is a direct install program specifically for residential and commercial customers in Hydro s Isolated Diesel systems. The objective is to help customers save energy by providing outreach, education, and energy efficient products free of charge to residential and business customers in the remote diesel system communities within Newfoundland and Labrador. It also focuses on building knowledge and capacity in the communities by hiring and training local representatives. These representatives work within their own communities to promote the program, provide useful information on energy use, and provide direct installation of energy efficient products. Newfoundland and Labrador Hydro Page 32

39 Q1/ Quarterly Regulatory Report Hydro Commercial Program Hydro s commercial portfolio includes the Business Efficiency and Isolated Business Efficiency Programs, which are available to business customers in Hydro s interconnected system and isolated diesel service areas. The business programs include a prescriptive component that offers rebates on many energy efficient lighting technologies, and rebates for heating and lighting controls. The custom component of the business program offers incentives based on economical energy saving improvement projects specific to individual customer facilities. The custom program also provides technical support to help commercial customers identify economical energy efficiency opportunities and provide financial support for capital upgrades. The aim is to engage customers in the business efficiency programs by facilitating opportunity identification, technical analysis, and project completion Hydro Internal Program Hydro s internal energy efficiency program aims to achieve energy savings from initiatives to reduce electricity consumption at its facilities located in both diesel and interconnected service areas. The initiatives planned for include upgrades to diesel plant lighting, 29 warehouse lighting, and variable frequency controls on diesel engine radiator fans. 30 In addition to the planned actions, Hydro continually seeks to identify opportunities that improve energy efficiency at its sites. Hydro routinely reviews operating and capital projects for current and future opportunities. 29 To be financed through Hydro s operating budget. 30 Bishop s Falls warehose lighting and Grey River variable frequency controls are approved capital expenditures in accordance with Board Order No. P.U. 45(2016) Newfoundland and Labrador Hydro Page 33

40 Q1/ Quarterly Regulatory Report 8.0 Community 8.1 Partnership with Heart and Stroke Foundation Hydro is a partner with The Heart & Stroke Foundation of Newfoundland and Labrador (the Foundation). On Tuesday, February 7th, Hydro employees participated in the Foundation s Annual Radiothon, which raised $30,000 for the Foundation. Figure 4: Hydro employees taking phone calls and pledges. Newfoundland and Labrador Hydro Page 34

41 Q1/ Quarterly Regulatory Report 9.0 Other 9.1 Ramea Update In accordance with Board Order No. P.U. 31(2007), Hydro provides the following update on the Ramea Wind-Hydrogen-Diesel Project as part of its Quarterly Report to the Board. Work on Phase II of the Ramea Project has been delayed as a result of higher than expected tender prices for the Hydrogen Fuel Cell and the reallocation of internal resources. Options for the optimal approach for proceeding with the project are currently under evaluation and an update on a revised project timeline is expected in the second quarter of Capital Costs Phase I of the project is complete. Table 16 shows the capital expenditures which occurred for Phase II of the project during the reporting period. Table 16: Phase II Capital Expenditures During ($000) Approved Budget Budget Forecast Actual Amount to March 31, Total Commitments to March 31, 2,626 2, Operating Costs During Phase I of the project, technical challenges associated with the Hydrogen Genset delayed the start of the Operations Phase. In order to perform and track preventative and corrective maintenance costs on project equipment, an operating business unit was created. Costs associated with this business unit are reported below. Costs associated with the Operational Phase will be reported once that phase has commenced. Newfoundland and Labrador Hydro Page 35

42 Q1/ Quarterly Regulatory Report Table 17: Operating Business Unit Costs ($000) Approved Budget Actual Amount to March 31, Total Commitments to March 31, The Operational Phase of the project is planned to start after the installation and integration of the fuel cell in Phase II Reliability and Safety Issues The wind turbines in Ramea have experienced performance issues during the reporting period. Work continued during the period to resolve these issues. There are no safety issues to report. 9.2 Rate Stabilization Plan Surplus Refund 31 To the end of the first quarter of, Hydro was engaged in the following activities with respect to the RSP Refund: First Disposition of Refunds Commencing on February 10,, both Hydro and Newfoundland Power provided refunds to customers in the form of cheques and/or credits (for those customers with outstanding balances on their account(s)). As of the end of the first quarter of, approximately 90% of the Hydro portion of the RSP Refunds had been distributed to Hydro customers (including active and inactive customers), which is summarized in Table Board Order P.U. 36(2016) approved the Hydro Customer Refund Plan and requires Hydro to file a report on the status of the refunds in its Quarterly Regulatory Report to the Board throughout the refund process. Newfoundland and Labrador Hydro Page 36

43 Q1/ Quarterly Regulatory Report Table 18: Rate Stabilization Plan Surplus Refund Status Adjustments include cheque reversals and cheques re-issued. The $8.0 million settled through the cheque process was settled by first applying refund amounts to any outstanding balance on the customer s account (26% or $2.0 million), with the remainder distributed by cheque (74% or $6.0 million). Of the Hydro RSP refunds distributed by cheque, approximately 88% of these cheque funds were cashed as of March 27,. Less than 1% of the cheques have been returned. Information regarding each customer s refund was provided on the cheque stub and in a separate Refund Statement, which, in Hydro s case, was mailed out just prior to distribution of cheques Residential Energy Rebate (RER) Hydro received its formal interpretation from the Provincial Department of Finance as to the applicability of the RER to refunds under the Refund Plan in January. RER is to be deducted from customer refunds and returned to the Province. The first payment of RER to the Province from the RSP refund was made during the first quarter of In accordance with Board Order No. P.U. 36(2016), Hydro provided a copy of the interpretation letter to the Board on February 13,. Newfoundland and Labrador Hydro Page 37

44 Q1/ Quarterly Regulatory Report Inter-utility Cooperation Throughout the first quarter of, Hydro and Newfoundland Power continued to share information concerning overall planning activities for the RSP Refund process. Communications staff from both utilities also maintained regular contact to ensure consistent messaging to customers Customer Communications Work with an IT consultant to modify the MyHydro web application to allow RSP eligible-users to access information about their RSP Refund was completed prior to the first disposition of funds in February. Customer Service staff focused on confirming addresses for both e- billing and inactive customers. A separate phone queue was provided for customers seeking information on their refunds. Call volume was significant following the first disposition in February, but has since dropped to normal volumes as of the end of March. As of the end of the first quarter, work had commenced with the two utilities for the national advertising campaign to reach inactive customers Special Cases Various individual cases with special requirements were catalogued by Customer Service staff (as identified) and reviewed with appropriate members of the RSP team and/or Hydro s Legal Department to determine the appropriate course of action in each case. 9.3 Rate Stabilization Plan Surplus Refund Costs In accordance with Board Order No. P.U. 36(2016), Table 19 outlines Hydro s year-to-date RSP refund costs for the current period. Newfoundland and Labrador Hydro Page 38

45 Q1/ Quarterly Regulatory Report Table 19: Hydro s Actual Incremental Plan Administration Costs For the period ending March 31, Actuals ($) Total Budget ($) December 31, March 31, Total Customer Service costs ,000 Banking ,000 Advertising ,000 Information technology 7,650-7,650 67,000 modifications Miscellaneous , , , ,000 Subtotal 180, , , ,000 Board related costs 20,000-20,000 20,000 Board audit fees ,000 Total 200, , , , Diversity and Inclusion Women s Leadership Network As part of Hydro s commitment to Diversity and Inclusion and to increasing the representation of women in leadership roles within the company s workforce, an internal Women s Leadership Network (WLN) was created in. The WLN aspires to encourage and facilitate the development of women leaders within Nalcor and its subsidiary companies by raising awareness of the importance of increasing the representation of women at the leadership level and by supporting women s career development. The WLN will promote a diverse and inclusive work environment, support Nalcor s vision for diversity and inclusion, and enable employees to reach their full potential. 33 Includes banking fees and cheque production as well as financing costs associated with HST refunds (not included in the RSP to be financed by Hydro). 34 RSP costs only. Joint costs are noted in Newfoundland Power s application. Allocation of those costs as between utilities to be determined. 35 Including incremental costs incurred to date, tax related research, and professional services fees (project management / legal). Newfoundland and Labrador Hydro Page 39

46 Q1/ Quarterly Regulatory Report International Women s Day On March 8, Hydro celebrated International Women s Day by highlighting some of the skilled and talented women who work for Hydro. Using the hashtag #BeBoldforChange, employees were also encouraged to share photos of themselves and their female coworkers, showcasing their many roles at Hydro. 9.5 Line Contacts Hydro had two reportable line contact incidents 36 during the first quarter of, as shown in Table 20. Table 20: Contacts with Distribution System Quarterly Summary Quarter Ended March 31, Type of Contact No. of Incidents Contacts by Individuals 0 Contacts by Equipment/Vehicles 2 On January 27,, a snow removal contractor came in contact with a pole in the Labrador City Industrial Park while snow clearing. No injuries were sustained; however, damage to the pole occurred and it required replacement. A planned outage was executed to tie the new pole into the primary line. On February 15,, a snow clearing contractor in Springdale made contact with a pole while removing snow. No injuries were sustained and the inspection of the pole deemed the damages to be superficial in nature. 36 The Electrical Utility Power Outage and Incident Advisory Policy, Policy Number 11.4, section (B)i) requires Hydro to report [a]ny contact with the electric power distribution system arising as a consequence of the operation of heavy equipment, dump trucks, boom trucks, cranes, forklifts and similar vehicles, machinery and equipment including automobiles, but excluding vehicular highway accidents, which is not reportable as an outage/incident under other provisions of this policy, whether or not an outage occurs. Newfoundland and Labrador Hydro Page 40

47 Q1/ Quarterly Regulatory Report Appendix A Generation Unit Outages Newfoundland and Labrador Hydro

48 Q1/ Quarterly Regulatory Report Appendix A Plant Unit Bay d'espoir G1 (76.5 MW) G2 (76.5 MW) G3 (76.5 MW) G4 (76.5 MW) G5 (76.5 MW) G6 (76.5 MW) G7 (120 MW) Upper Salmon (84 MW) January Granite Canal (40 MW) Hinds Lake (75 MW) Paradise River (8 MW) Cat Arm G1 (67 MW) G2 (67 MW) Holyrood G1 (170 MW) G2 (170 MW) G3 (150 MW) 50 Holyrood CT (123.5 MW) Holyrood Diesels (10MW) 6 Hardwoods (50 MW) 25 Stephenville (50 MW) St. Anthony (9.7 MW) 8.7 Hawkes Bay (5 MW) Available Available Derated Unavailable Generation Unit Outages Newfoundland and Labrador Hydro Page A-1

49 Plant Unit Bay d'espoir G1 (76.5 MW) G2 (76.5 MW) G3 (76.5 MW) G4 (76.5 MW) G5 (76.5 MW) G6 (76.5 MW) G7 (120 MW) Upper Salmon (84 MW) Granite Canal (40 MW) Hinds Lake (75 MW) Paradise River (8 MW) Cat Arm G1 (67 MW) G2 (67 MW) Holyrood G1 (170 MW) G2 (170 MW) G3 (150 MW) Holyrood CT (123.5 MW) Holyrood Diesels (10MW) 8 Hardwoods (50 MW) Stephenville (50 MW) St. Anthony (9.7 MW) Hawkes Bay (5 MW) Available Available Derated Unavailable February Q1/ Quarterly Regulatory Report Appendix A Newfoundland and Labrador Hydro Page A-2

50 Q1/ Quarterly Regulatory Report Appendix A Plant Unit Bay d'espoir G1 (76.5 MW) G2 (76.5 MW) G3 (76.5 MW) G4 (76.5 MW) G5 (76.5 MW) G6 (76.5 MW) G7 (120 MW) Upper Salmon (84 MW) March Granite Canal (40 MW) Hinds Lake (75 MW) Paradise River (8 MW) Cat Arm G1 (67 MW) G2 (67 MW) Holyrood G1 (170 MW) G2 (170 MW) G3 (150 MW) Holyrood CT (123.5 MW) Holyrood Diesels (10MW) Hardwoods (50 MW) Stephenville (50 MW) St. Anthony (9.7 MW) Hawkes Bay (5 MW) Available Available Derated Unavailable Newfoundland and Labrador Hydro Page A-3

51 Q1/ Quarterly Regulatory Report Appendix B Financial Statements Newfoundland and Labrador Hydro

52 Q1/ Quarterly Regulatory Report Appendix B As at March 31, Balance Sheet - Regulated Operations ($000) Mar-17 Mar-16 ASSETS Current assets Cash and cash equivalents 3,140 2,902 Accounts receivable 92,668 81,118 Current portion of regulatory assets 2,157 2,157 Current portion of sinking funds 78,097 - Inventory 80,617 64,888 Prepaid expenses 7,744 8, , ,171 Property, plant, and equipment 1 1,861,046 1,686,536 Intangible assets 6,962 6,720 Sinking funds 180, ,377 Regulatory assets 161, ,574 Long-term receivable Total assets 2,474,180 2,234,708 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Accounts payable and accrued liabilities 109,656 68,716 Accrued interest 14,561 16,057 Current portion of long-term debt 143, ,229 Current portion of regulatory liabilities 57, ,557 Deferred credits Current portion of deferred contributions Due to related parties 2, Promissory notes 312,646 57,540 Promissory notes - non regulated 2 14,677 12, , ,814 Deferred Contributions 1 36,006 20,560 Long-term debt 1,153,724 1,006,858 Regulatory liabilities 160, ,053 Asset retirement obligations 14,383 28,079 Employee future benefits 2 81,568 83,032 Contributed capital 100, ,000 Retained earnings 2 257, ,820 Accumulated other comprehensive income 2 14,679 24,492 Total liabilities and shareholder's equity 2,474,180 2,234, The March 31, 2016 balances have been restated for non-customer contributions received from a Related Party that were previously netted. The presentation has resulted in an increase in both property, plant and equipment and deferred contributions of $16.7 million as at, March 31, The March 31, 2016 balances have restated as a result of a misstatement relating to the calculation of the other post-employment benefit health and dental liabilities for retires. The figures have been restated to reduce employee future benefits liability by $14.6 million and promissory notes by $0.9 million, increase opening retained earnings by $7.3 million and increase in Accumulated other comprehensive income of $8.2 million. 3 Note: Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. Newfoundland and Labrador Hydro Page B-1

53 Q1/ Quarterly Regulatory Report Appendix B Statement of Income - Regulated Operations 4 For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget Revenue 203, , ,783 Energy sales 203, , , ,553 1,254 1, Other revenue 1,254 1, , , , , , , , ,515 Expenses 33,936 33,811 31,560 Operating costs 33,936 33,811 31, , ,892 75, ,026 Fuels 100,892 75, , ,080 17,967 19,495 17,470 Power purchased 17,967 19,495 17,470 64,792 18,522 18,125 16,736 Amortization 18,522 18,125 16,736 73, ,653 6,866 Other (income) and expense 396 1,653 6,866 6,098 22,483 21,923 24,858 Interest 22,483 21,923 24,858 80, , , , , , , ,397 10,664 26,515 (2,780) Net (loss) income 10,664 26,515 (2,780) 23, The March 31, 2016 figures have been restated as a result of a misstatement relating to the calculation of the other post-employment benefit health and dental liabilities for retirees. The beginning retained earnings has been increased by $7.3 million. Newfoundland and Labrador Hydro Page B-2

54 Q1/ Quarterly Regulatory Report Appendix B Statement of Comprehensive Income - Regulated Operations For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget 10,664 26,515 (2,780) Net income (loss) 10,664 26,515 (2,780) 23,118 Other comprehensive income Employee future benefit actuarial loss Change in fair value of sinking fund (14,893) investments (14,893) (4,201) 26,515 (2,355) Total comprehensive income (4,201) 26,515 (2,355) 23,118 Newfoundland and Labrador Hydro Page B-3

55 Q1/ Quarterly Regulatory Report Appendix B Statement of Cash Flows - Regulated Operations 5 For the three months ended March 31, ($000) Year-to-date 2016 Operating activities Net income (loss) 10,664 (2,780) Adjusted for items not involving cash flow Amortization of property, plant and equipment 18,522 16,736 Accretion of asset retirement obligation and long term debt Amortization of deferred contributions (429) (142) Employee future benefits 661 1,108 Loss on disposal of property, plant and equipment Other (3,381) (3,282) 26,197 12,314 Changes in non-cash working capital balances Accounts receivable 2,379 1,221 Inventory (4,419) 669 Prepaid expenses (3,979) (3,770) Regulatory assets 486 8,594 Regulatory liabilities (6,644) 31,668 Accounts payable and accrued liabilities (4,308) (1,259) Accrued Interest (12,546) (12,694) Due to related parties (1,120) 372 (3,954) 37,115 Financing activities Increase in deferred credits Increase in deferred capital contribution 2,441 3,025 Decrease in promissory notes (96,610) (15,620) Issuance of long-term debt 282,463 - Long-term debt retired - (100) Rate stabilization plan refund (119,289) - 69,249 (12,486) Investing activities Additions to property, plant and equipment (63,547) (20,166) Additions to intangible assets (82) (391) Increase in sinking funds (2,400) (2,400) Changes in non-cash working capital balances 849 (2,729) (65,180) (25,686) Net increase (decrease) in cash 115 (1,057) Cash position, beginning of period 3,025 3,959 Cash position, end of period 3,140 2, Note: Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. Newfoundland and Labrador Hydro Page B-4

56 Q1/ Quarterly Regulatory Report Appendix B Revenue Summary - Regulated Operations 6 For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget REVENUE Industrial Corner Brook Pulp and Paper Ltd , Wabush Mines ,780 2,763 2,303 Vale Inco 2,780 2,763 2,303 14,817 3,183 3,001 3,191 North Atlantic Refinery 3,183 3,001 3,191 12, Iron Ore Company , C.F.B. Goose Bay Teck Cominco Limited Praxair ,149 8,190 8,024 7,842 Total Industrial 8,190 8,024 7,842 35,847 Utility 167, , ,773 Newfoundland Power Inc. 167, , , ,575 Rural 27,927 24,344 28,168 Interconnected and diesel 27,927 24,344 28,168 77,131 1,254 1, Other 1,254 1, , , , ,736 Total 204, , , , Note: Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. Newfoundland and Labrador Hydro Page B-5

57 Q1/ Quarterly Regulatory Report Appendix B Supplementary Schedule - Regulated Operations 7 For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget Other revenue Sundry Pole attachments , Amortization of CIAC , Generation Demand Recovery ,213 1,254 1, Total other revenue 1,254 1, ,962 Interest 27,572 27,323 28,615 Gross interest 27,572 27,323 28, , Accretion of long-term debt (1,542) (2,110) (497) Interest during construction (1,542) (2,110) (497) (13,266) (3,630) (3,471) (3,563) Interest earned (3,630) (3,471) (3,563) (12,480) (82) Accretion of asset retirement obligations (82) ,483 21,923 24,858 Total interest 22,483 21,923 24,858 80, Note: Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. Newfoundland and Labrador Hydro Page B-6

58 Q1/ Quarterly Regulatory Report Appendix B As at March 31, Balance Sheet - Non-Regulated Activities ($000) Mar-17 Mar-16 ASSETS Current assets Accounts receivable 12,958 12,639 Prepaid expenses Deferred assets 38,361 45,931 51,546 58,717 Investment in CF(L)Co , ,294 Total assets 573, ,011 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Accounts payable and accrued liabilities 6,331 6,563 Promissory notes 8 14,677 12,730 Derivative liabilities 40,097 50,197 61,105 69,490 Employee future benefits 8 3,779 2,762 Share capital 22,504 22,504 Lower Churchill Development Corporation 15,400 15,400 Retained earnings 8 474, ,248 Accumulated other comprehensive loss 8 (3,459) (4,393) Total liabilities and shareholder's equity 573, , The March 31, 2016 figures have been restated as a result of misstatements relating to the calculation of the other post-employment benefit health and dental liabilities for retirees and investment. The figures have been restated to reduce employee future benefits liability by $0.6 million and increased Investment in CF(L)Co. by $2.6 million, promissory notes of $0.9 million, opening retained earnings by $1.4 million and Accumulated other comprehensive income of $0.9 million. Newfoundland and Labrador Hydro Page B-7

59 Q1/ Quarterly Regulatory Report Appendix B Statement of Income - Non-Regulated Activities 9 For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget Revenue 11,694 11,277 11,385 Energy sales 11,694 11,277 11,385 44,176 5,106 5,142 4,909 Other revenue 5,106 5,142 4,909 20,569 16,800 16,419 16,294 16,800 16,419 16,294 64,745 Expenses (273) Operating costs (273) ,440 5,154 5,142 4,909 Transmission rental 5,154 5,142 4,909 20,569 10,877 10,863 10,929 Power purchased 10,877 10,863 10,929 42,806 1,736-4,265 Other expense and (income) 1,736-4,265-17,494 16,576 20,385 17,494 16,576 20,385 65,815 (694) (157) (4,091) Net operating (loss) income (694) (157) (4,091) (1,070) 14,938 13,866 19,850 Equity in CF(L)Co 14,938 13,866 19,850 23,522 1,964 1,449 3,792 Preferred dividends 1,964 1,449 3,792 5,794 16,902 15,315 23,642 16,902 15,315 23,642 29,316 16,208 15,158 19,551 Net income 16,208 15,158 19,551 28, Note: Certain of the comparative figures have been reclassified with presentation adopted during the current reporting period. Newfoundland and Labrador Hydro Page B-8

60 Q1/ Quarterly Regulatory Report Appendix B Statement of Retained Earnings - Non-Regulated Activties For the three months ended March 31, ($000) First Quarter Actual 2016 Actual Year-to-date Actual 2016 Actual 459, ,489 Balance, beginning of period , ,489 16,208 19,551 Net income 16,208 19,551 (1,964) (3,792) Dividends (1,964) (3,792) 474, ,248 Balance, end of period 474, , The March 31, 2016 figures have been restated as a result of misstatements relating to the calculation of the other post-employment benefit health and dental liabilities for retirees and equity return on investment. The beginning retained earnings has been increased by $1.4 million. Newfoundland and Labrador Hydro Page B-9

61 Q1/ Quarterly Regulatory Report Appendix B Statement of Comprehensive Income - Non-Regulated Activities For the three months ended March 31, ($000) Actual First Quarter Budget 2016 Actual Actual Year-to-date Budget 2016 Actual Annual Budget 16,208 15,158 19,551 Net income 16,208 15,158 19,551 28,246 Other comprehensive income Share of CF(L)Co other comprehensive 9 - (65) (loss) income and other 9 - (65) - 16,217 15,158 19,486 Total comprehensive income 16,217 15,158 19,486 28,246 Newfoundland and Labrador Hydro Page B-10

62 Q1/ Quarterly Regulatory Report Appendix B Statement of Cash Flows - Non-Regulated Activities For the three months ended March 31, ($000) Year-to-date 2016 Operating activities Net income 16,208 19,551 Adjusted for items not involving cash flow Employee Future Benefits Equity in CF(L)Co (14,938) (19,850) Loss on power purchase agreement balances 1,735 4,266 Other - 1,889 3,068 5,930 Changes in non-cash balances Accounts receivable (5,075) (4,751) Accounts payable and accrued liabilities 100 (226) Prepaid expenses (1,798) 961 Financing activities Increase in promissory notes 3,611 1,620 Dividends (1,964) (3,792) 1,647 (2,172) Investing activities Additions to property, plant and equipment 93 - Changes in non-cash working capital balances 58 1, ,211 Net change in cash - - Cash position, beginning of period - - Cash position, end of period - - Newfoundland and Labrador Hydro Page B-11

63 Q1/ Quarterly Regulatory Report Appendix C Rate Stabilization Report Newfoundland and Labrador Hydro

64 Q1/ Quarterly Regulatory Report Appendix C Summary of Key Facts Rate Stabilization Plan Report March 31, The Rate Stabilization Plan of Newfoundland and Labrador Hydro (Hydro), as amended by Board Order No. P.U. 40 (2003) and Order No. P.U. 8 (2007), is established for Hydro s utility customer, Newfoundland Power, and Island Industrial customers to smooth rate impacts for variations between actual results and Test Year Cost of Service estimates for: - Hydraulic production; - No. 6 fuel cost used at Hydro s Holyrood generating station; - Customer load (Utility and Island Industrial); and - Rural rates. The Test Year Cost of Service Study was approved by Board Order No. P.U. 8 (2007) and is based on projections of events and costs that are forecast to happen during a test year. Finance charges are calculated on the balances using the test year Weighted Average Cost of Capital which is currently 7.529% per annum. Holyrood's operating efficiency is set, for RSP purposes, at 630 kwh/barrel regardless of the actual conversion rate experienced. The RSP balances have been completed on an interim basis using the 2007 cost of service inputs. Upon receipt of the final Board Order of the Amended 2013 GRA, Hydro assumes that the RSP balances will be recalculated in using the approved 2015 Test Year cost of service inputs. The difference between the revised RSP balances reflecting the approved Test Year and the interim balances as reflected in this report will be recorded as an adjustment in the RSP balances Test Year Cost of Service Net Hydraulic No. 6 Fuel Utility Industrial Production Cost Load Load (kwh) ($Can/bbl.) (kwh) (kwh) January 427,100, ,800,000 78,300,000 February 388,680, ,600,000 70,900,000 March 415,080, ,700,000 76,600,000 April 355,520, ,200,000 75,600,000 May 324,240, ,700,000 69,500,000 June 328,500, ,400,000 73,800,000 July 386,790, ,400,000 77,500,000 August 379,140, ,000,000 77,900,000 September 363,560, ,700,000 73,000,000 October 340,510, ,200,000 74,400,000 November 364,390, ,300,000 74,100,000 December 398,560, ,800,000 72,700,000 Total 4,472,070,000 4,925,800, ,300,000 Newfoundland and Labrador Hydro Page C-1

65 Q1/ Quarterly Regulatory Report Appendix C Rate Stabilization Plan Plan Highlights March 31, Actual Cost of Service Variance Year-to-Date Due (To) From customers Reference Hydraulic production year-to-date 1,473.6 GWh 1,230.9 GWh GWh $ (21,105,397) Page C-3 No 6 fuel cost - Current month $ $ $ $ 12,506,839 Page C-4 Year-to-date customer load - Utility 2,060.9 GWh 1,618.1 GWh GWh $ (3,598,543) Page C-7 Year-to-date customer load - Industrial GWh GWh GWh $ (4,597,650) Page C-9 $ (16,794,751) Rural rates Rural Rate Alteration (RRA) $ 3,104,332 Less : RRA to utility customer $ 2,765,960 Page C-8 RRA to Labrador interconnected 338,372 Fuel variance to Labrador interconnected $ 94,968 Page C-5 Net Labrador interconnected $ 433,340 Current plan summary One year recovery Due (to) from utility customer $ (30,285,944) Page C-8 Due (to) from Industrial customers $ (1,687,354) Page C-10 Sub total (31,973,298) Four year recovery Hydraulic balance $ (58,932,849) Page C-3 Segregated Load Variation Page C-11 Utility Customer $ (13,121,346) Industrial Customer $ (88,079,097) Sub Total $ (101,200,443) Utility RSP Surplus $ (25,945,604) Page C-12 Industrial RSP Surplus $ 346,655 Page C-13 Total plan balance $ (217,705,539) Newfoundland and Labrador Hydro Page C-2

66 Q1/ Quarterly Regulatory Report Appendix C Rate Stabilization Plan Net Hydraulic Production Variation March 31, A B C D E F G Cost of Monthly Cost of Cumulative Service Actual Net Hydraulic Service Net Hydraulic Variation Net Hydraulic Net Hydraulic Production No. 6 Fuel Production Financing and Financing Production Production Variance Cost Variation Charges Charges (kwh) (kwh) (kwh) ($Can/bbl.) ($) ($) ($) (A - B) (C / O (1) X D) (E + F) (to page C-14) Opening balance (37,018,152) January 427,100, ,587,079 (86,487,079) (7,436,516) (224,608) (44,679,276) February 388,680, ,205,211 (77,525,211) (6,734,849) (271,092) (51,685,217) March 415,080, ,847,401 (78,767,401) (6,934,032) (313,600) (58,932,849) April May June July August September October November December 1,230,860,000 1,473,639,691 (242,779,691) (21,105,397) (809,300) (58,932,849) Hydraulic Allocation Hydraulic variation at year end (21,105,397) (809,300) (58,932,849) 1 O is the Holyrood Operating Efficiency of 630 kwh/barrel. Newfoundland and Labrador Hydro Page C-3

67 Q1/ Quarterly Regulatory Report 1 Rate Stabilization Plan No. 6 Fuel Variation March 31, A B C D E F G Cost of Actual Actual Actual Quantity Net Service Average No.6 Quantity No. 6 Fuel for Quantity No. 6 Fuel No. 6 Fuel Cost Fuel No. 6 Fuel Non-Firm Sales No. 6 Fuel Cost Cost Variance Variation (bbl.) (bbl.) (bbl.) ($Can/bbl.) ($Can/bbl.) ($Can/bbl.) ($) (A - B) (E - D) (C X F) (to page C-5) January 375, , ,237,880 February 364, , ,714,509 March 330, , ,554,450 April May June July August September October November December 1,070, ,070,952 12,506,839 Newfoundland and Labrador Hydro Page C-3

68 A B C D E F G H I J Twelve Months-to-Date Year-to-Date Fuel Variance Island Customers (1) Industrial Rural Island Industrial Rural Island Labrador Utility Customers Customers Total Utility Customers Interconnected Total Utility Interconnected (kwh) (kwh) (kwh) (kwh) ($) ($) ($) ($) ($) ($) (A+B+C) (A/D X H) (B/D X H) (C/D X H) (G X 89.10%) (G X 10.90%) (from page C-4) (to page C-6) January 5,834,707, ,513, ,656,913 6,813,878,021 2,772, , ,502 3,237, ,813 24,689 February 5,861,296, ,837, ,507,277 6,841,640,845 6,812, , ,032 7,952, ,534 60,498 March 5,868,946, ,539, ,768,433 6,858,253,984 10,702, , ,267 12,506, ,299 94,968 April May June July August September October November December Rate Stabilization Plan Allocation of Fuel Variance - Year-to-Date March 31, (to page C-6) Reallocate Rural Q1/ Quarterly Regulatory Report 1 The Fuel Variance initially allocated to Rural Island Interconnected is re-allocated between Utility and Labrador Interconnected customers in the same proportion which the Rural Deficit was allocated in the approved Cost of Service Study, which is 89.10% and 10.90% respectively. The Labrador Interconnected amount is then removed from the plan and written off to net income (loss). Newfoundland and Labrador Hydro Page C-4

69 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Allocation of Fuel Variance - Monthly March 31, A B C D E F G Total Fuel Fuel Variance Rural Allocation Variance Fuel Variance Year-to-Date Current Month Year-to-Date Current Month Activity for Year-to-Date Current Month ($) ($) ($) ($) ($) ($) ($) (from page C-5) (from page C-5) (to page C-8) (from page C-5) (to page C-10) January 2,772,589 2,772, , ,813 2,974, , ,789 February 6,812,884 4,040, , ,721 4,333, , ,684 March 10,702,719 3,889, , ,765 4,171, , ,380 April May June July August September October November December Utility Industrial (B + D) 10,702, ,299 11,479, ,853 1 The current month activity is calculated by subtracting year-to-date activity for the prior month from year-to-date activity for the current month. Activity Activity (1) Activity Activity (1) the month Activity Activity (1) Newfoundland and Labrador Hydro Page C-5

70 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Load Variation - Utility March 31, A B C D E F G H I J K Firm Energy Secondary Energy Cost of Cost of Service Firm Cost of Firming Total Service Actual Sales No. 6 Fuel Energy Load Service Actual Up Load Load Sales Sales Variance Cost Rate 2 Variation Sales Sales Charge 2 Variation Variation (kwh) (kwh) (kwh) ($Can/bbl.) ($/kwh) ($) (kwh) (kwh) ($/kwh) ($) ($) (B - A) C x {(D/O 1 ) - E} (G - H) x I (F + J) (to page C-11) January 574,800, ,432, ,632, (1,353,425) 0 784, (7,120) (1,360,545) February 518,600, ,922, ,322, (1,169,458) 0 559, (5,080) (1,174,538) March 524,700, ,523, ,823, (1,057,491) 0 657, (5,969) (1,063,460) April May June July August September October November December 1,618,100,000 2,058,877, ,777,507 (3,580,374) 0 2,000,961 (18,169) (3,598,543) 1 O is the Holyrood Operating Efficiency of 630 kwh/barrel. 2 Per Board Order No. P.U. 9(2016) firm energy rate for Utility is cents per kwh effective December 1, 2015 and a firming up charge of cents per kwh effective December 1, Newfoundland and Labrador Hydro Page C-6

71 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Summary of Utility Customer March 31, A B C D E F H Allocation Subtotal Cumulative Load Allocation Rural Rate Monthly Financing Net Variation Fuel Variance Alteration (1) Variances Charges Adjustment (2) Balance ($) ($) ($) ($) ($) ($) ($) (A + B + C) (from page C-6) (to page C-14) Opening Balance (68,976,964) January 2,974, ,641 3,828,043 (418,518) 8,951,313 (56,616,126) February 4,333, ,715 5,210,731 (343,518) 8,175,911 (43,573,002) March 4,171,600 1,034,604 5,206,204 (264,379) 8,345,233 (30,285,944) April May June July August September October November December Year to date 11,479,018 2,765,960 14,244,978 (1,026,415) 25,472,457 38,691,020 Hydraulic allocation 0 (from page C-3) Total 11,479,018 2,765,960 14,244,978 (1,026,415) 25,472,457 (30,285,944) 1 The Rural Rate Allocation is allocated between Utility and Labrador Interconnected customers in the same proportion which the Rural Deficit was allocated in the approved Cost of Service Study, which is 89.10% and 10.90% respectively. The Labrador Interconnected amount is then removed from the plan and written off to net 2 The RSP adjustment rate for the Utility was cents per kwh effective July 1, 2015 to June 30, 2016 and is cents per kwh effective July 1, 2016 to June 30, income (loss).. Newfoundland and Labrador Hydro Page C-7

72 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Load Variation - Industrial March 31, A B C D E F Cost of Cost of Service Firm Service Actual Sales No. 6 Fuel Energy Load Sales Sales Variance Cost Rate Variation (kwh) (kwh) (kwh) ($) ($/kwh) ($) (B - A) C x {(D/O 1 ) - E} (to page C-11) January 78,300,000 36,580,091 (41,719,909) (1,889,667) February 70,900,000 39,488,172 (31,411,828) (1,450,693) March 76,600,000 50,042,258 (26,557,742) (1,257,290) April May June July August September October November December 225,800, ,110,521 (99,689,479) (4,597,650) 1 O is the Holyrood Operating Efficiency of 630 kwh/barrel. Newfoundland and Labrador Hydro Page C-8

73 Q1/ Quarterly Regulatory Report Newfoundland and Labrador Hydro Page C-9

74 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Load Variation January - December 2014 March 31, A B C D E F G Utility Customer Island Industrial Customers Load Financing Total Load Financing Total Total To Date (1) Variation Charges To Date Variation Charges To Date ($) ($) ($) ($) ($) ( A + B ) ( D+ E ) ( C +F ) (from page C-7) (from page C-9) (to page C-14) Opening Balance (9,328,286) (81,948,901) (91,277,187) January (1,360,545) (56,599) (10,745,430) (1,889,667) (497,225) (84,335,793) (95,081,223) February (1,174,538) (65,198) (11,985,166) (1,450,693) (511,707) (86,298,193) (98,283,359) March (1,063,460) (72,720) (13,121,346) (1,257,290) (523,614) (88,079,097) (101,200,443) April May June July August September October November December Total (3,598,543) (194,517) (13,121,346) (4,597,650) (1,532,546) (88,079,097) (101,200,443) 1 Per Board Order No. P.U. 29(2013), the load variation from the Industrial and Utility Customers as of September 1, 2013 be held in a separate account until its disposition. Newfoundland and Labrador Hydro Page C-10

75 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Utility RSP Surplus March 31, A B C D Industrial Customer Utility Financing RSP Surplus Payout Cumulative Adjustment Payout Charges & Admin Costs 1 Balance ($) ($) ($) ($) (to page C-14) Opening Balance 59,087 (143,331,382) January (869,663) (144,201,045) February (874,940) 118,912,863 (26,163,122) March (158,745) 376,263 (25,945,604) April May June July August September October November December Year to date - - (1,903,348) 119,289, ,385,778 Total (1,903,348) 119,289,126 (25,945,604) 1 The RSP Surplus Payout and Admin Costs are comprised of a payout of $118,912,863, Hydro administrative costs of $59,087 and NL Power administrative costs of $376,263. Newfoundland and Labrador Hydro Page C-11

76 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Industrial RSP Surplus March 31, A B C D E Industrial Teck Industrial Financing Cumulative Surplus Allocation (1) Drawdown (2) Charges Balance ($) ($) ($) ($) ($) (to page C-14) Opening Balance (388,883) January 4, ,983 (2,360) (163,424) February 4, ,053 (992) 72,894 March 4, , ,655 April May June July August September October November December Year to date 0 13, ,679 (2,910) 735,538 Total 0 13, ,679 (2,910) 346,655 1 Per Board Order No. P.U. 29(2013), the RSP drawdown adjustment rate for Teck Resources is cents per kwh effective September 1, Effective July 1, 2015 the RSP drawdown adjustment rate for Teck 2 Drawdown of Industrial Customers RSP Surplus balance effective July 1, 2015 using RSP Adjustment rates for all Industrial Customers are $1.52 per kw per month and cents per kwh as approved in Board Order No. Resources is cents per kwh. P.U. 35(2015). Newfoundland and Labrador Hydro Page C-12

77 Q1/ Quarterly Regulatory Report Rate Stabilization Plan Overall Summary March 31, A B C D E F G Hydraulic Utility Industrial Segregated Utility Industrial Total Balance Balance Balance Load Balance RSP Surplus RSP Surplus To Date ($) ($) ($) ($) ($) ($) ($) (A + B + C + D + E + F) (from page C-3) (from page C-8) (from page C-10) (from page C-11) (from page C-12) (from page C-13) Opening Balance (37,018,152) (68,976,964) (2,578,000) (91,277,187) (143,331,382) (388,883) (343,570,568) January (44,679,276) (56,616,126) (2,354,853) (95,081,223) (144,201,045) (163,424) (343,095,948) February (51,685,217) (43,573,002) (2,023,457) (98,283,359) (26,163,122) 72,894 (221,655,263) March (58,932,849) (30,285,944) (1,687,354) (101,200,443) (25,945,604) 346,655 (217,705,539) April May June July August September October November December Newfoundland and Labrador Hydro Page C-13

78 UTILITIES CIAC Activity For the Period Ended March 31, A Report to the Board of Commissioners of Public Utilities

79 Q1/ CIAC Activity Table 1: CIAC Quarterly Report Q1 TYPE OF SERVICE CIACs QUOTED CIACs OUTSTANDING PREVIOUS QTR. TOTAL CIACs QUOTED CIACs ACCEPTED CIACs EXPIRED TOTAL CIACs OUTSTANDING Domestic Within Plan. Boundary Outside Plan. Boundary Sub-total General Service Total Tab 1 summarizes the Contribution in Aid of Construction (CIAC) 1 divided into three sections, as follows: activity for this quarter. The table is The first section outlines the type of service for which a CIAC has been calculated, either Domestic or General Service. The second section indicates the number of CIACs quoted during the quarter as well as the number of CIAC quotes that remained outstanding at the end of the previous quarter. This format facilitates a reconciliation of the total number of CIACs that were active during the quarter. The third section provides information as to the disposition of the total CIACs quoted. A CIAC is considered accepted when a customer indicates they wish to proceed with construction of the extension and has agreed to pay any charge that may be applicable. A CIAC is considered outdated after six months has elapsed and the customer has not indicated its intention to proceed with the extension. A quoted CIAC is outstanding if it is neither accepted nor outdated. 1 Involves residential, non-residential and General Service CIACs for Northern, Central and Labrador regions. Newfoundland and Labrador Hydro Page 1

80 Q1/ CIAC Activity Table 2: CIAC Quarterly Activity Report For the Quarter ended March 31, DATE QUOTED SERVICE LOCATION CIAC NO. CIAC AMOUNT ESTIMATED CONST. COST ACCEPTED DOMESTIC - WITHIN RESIDENTIAL PLANNING BOUNDARIES N/A DOMESTIC - OUTSIDE RESIDENTIAL PLANNING BOUNDARIES January 10, Triton $ 18,905 $ 19,850 January 17, South Brook; Green Bay $ 999 $ 1,924 Yes February 3, South Brook; Green Bay $ 10,131 $ 11,056 Yes GENERAL SERVICE January 10, Conne River $ 8,916 $ 13,421 January 24, Pilley's Island $ 2,879,860 $ 2,884,365 February 16, Hawkes Bay $ 13,445 $ 17,950 February 21, Conne River $ 6,095 $ 10,600 March 23, Main Brook $ 260,102 $ 264,607 March 30, Rocky Harbour $ 17,566 $ 22,071 Newfoundland and Labrador Hydro Page 2

81 UTILITIES Customer Damage Claim For the Period Ended March 31, A Report to the Board of Commissioners of Public Utilities

82 Q1/ Customer Damage Claim The Customer Property Damage Claims Report contains a summary of all damage claims activity on a quarterly basis. The information contained in the report is broken down by cause as well as by the operating region where the claims originated. The report is divided into four sections as follows: 1. The first section indicates the number of claims received during the quarter coupled with claims outstanding from the previous quarter. 2. The second section shows the number of claims for which the Company has accepted responsibility and the amount paid to claimants versus the amount originally claimed. 3. The third section shows the number of claims rejected and the dollar value associated with those claims. 4. The fourth section indicates those claims that remain outstanding at the end of the current quarter and the dollar value associated with such claims. Definitions of Causes of Damage Claims 1. System Operations: Claims arising from system operations. Examples include normal reclosing or switching. 2. Power Interruptions: Claims arising from interruption of power supply. Examples include all scheduled or unscheduled interruptions. 3. Improper Workmanship: Claims arising from failure of electrical equipment caused by improper workmanship or methods. Examples include improper crimping of connections, insufficient sealing and taping of connections, improper maintenance, inadequate clearance or improper operation of equipment. 4. Weather Related: Claims arising from weather conditions. Examples include wind, rain, ice, lightning or corrosion caused by weather. 5. Equipment Failure: Claims arising from failure of electrical equipment not caused by improper workmanship. Examples include broken neutrals, broken tie wires, transformer failure, insulator failure or broken service wire. 6. Third Party: Claims arising from equipment failure caused by acts of third parties. Examples include motor vehicle accidents and vandalism. 7. Miscellaneous: All claims not related to electrical service. 8. Waiting Investigation: Cause to be determined. Newfoundland and Labrador Hydro Page 1

83 CLAIMS REJECTED # AMT. CLAIMED AMT. PAID # AMOUNT # AMOUNT Q1/ Customer Damage Claim Central Region $ 3,283 $ 2,509 2 $ $ 6,658 Northern Region $ 7,371 $ 4,653 3 $ 1,350 4 $ 2,337 Labrador Region $ - $ - 1 $ 1,100 3 $ - Total $ 10,654 $ 7,163 6 $ 2, $ 8,995 REGION REGION NUMBER RECEIVED NUMBER RECEIVED Table 1: Customer Property Damage Claims Report By Region OUTSTANDING LAST QTR. OUTSTANDING LAST QTR. TOTAL TOTAL For the Quarter ended Mar 31, CLAIMS ACCEPTED For the Quarter ended Mar 31, 2016 CLAIMS OUTSTANDING CLAIMS ACCEPTED CLAIMS REJECTED CLAIMS OUTSTANDING # AMT. CLAIMED AMT. PAID # AMOUNT # AMOUNT Central Region $ 2,527 $ 1,960 6 $ 1,732 7 $ 4,641 Northern Region $ 1,727 $ 1,528 3 $ 1,500 5 $ 2,227 Labrador Region $ - $ - 1 $ - 3 $ 9,894 Total $ 4,254 $ 3, $ 3, $ 16,762 Newfoundland and Labrador Hydro Page 2

84 Q1/ Customer Damage Claim For the Quarter ended Mar 31, CAUSE NUMBER RECEIVED OUTSTANDING LAST QTR. TOTAL CLAIMS ACCEPTED CLAIMS REJECTED CLAIMS OUTSTANDING # AMT. CLAIMED AMT. PAID # AMOUNT # AMOUNT System Operations $ - $ - 1 $ $ - Power Interruptions $ - $ - 0 $ - 0 $ - Improper Workmanship $ 4,629 $ 4,184 0 $ - 5 $ 3,235 Weather Related $ 4,225 $ 1,569 3 $ $ 5,760 Equipment Failure $ 1,282 $ 1,263 1 $ 1,100 0 $ - Third Party $ - $ - 0 $ - 0 $ - Miscellaneous $ 518 $ $ - 0 $ - Awaiting Investigation $ - $ - 0 $ - 4 $ - Total $ 10,654 $ 7,163 6 $ 2, $ 8,995 For the Quarter ended Mar 31, 2016 CAUSE NUMBER RECEIVED OUTSTANDING LAST QTR. TOTAL CLAIMS ACCEPTED CLAIMS REJECTED CLAIMS OUTSTANDING # AMT. CLAIMED AMT. PAID # AMOUNT # AMOUNT System Operations $ - $ - 0 $ - 0 $ - Power Interruptions $ - $ - 4 $ 1,763 0 $ - Improper Workmanship $ 2,527 $ 1,960 0 $ - 4 $ 1,727 Weather Related $ 1,399 $ 1,201 5 $ 1,469 5 $ 3,644 Equipment Failure $ 328 $ $ - 2 $ 9,394 Third Party $ - $ - 0 $ - 0 $ - Miscellaneous $ - $ - 0 $ - $ - Awaiting Investigation $ - $ - 1 $ - 4 $ 1,998 Total $ 4,254 $ 3, $ 3, $ 16,762 Table 2: Customer Property Damage Claims Report By Clause Newfoundland and Labrador Hydro Page 3

85 UTILITIES Quarterly Performance Indicators Report For the Period Ended March 31, A Report to the Board of Commissioners of Public Utilities

86 Q1/ Quarterly Performance Indicators Report Table of Contents 1.0 End Customer Service Continuity Performance Bulk Power System Delivery Point Interruption Performance Transmission System Average Interruption Duration Index Transmission System Average Interruption Frequency Index Transmission System Average Restoration Index (T-SAIRI) Transmission Outages Forced Outages Planned Under Frequency Load Shedding Rural System Service Continuity Performance System Average Interruption Duration Index System Average Interruption Frequency Index Noteworthy Outages Rural Systems Service Continuity Performance by Area Rural Systems Service Continuity Performance by Origin Rural Systems Service Continuity Performance by Type First Quarter Only Rural Systems Service Continuity Customer Interruptions by Cause Newfoundland and Labrador Hydro Page i

87 Q1/ Quarterly Performance Indicators Report 1.0 End Customer Service Continuity Performance This performance index was developed to measure the reliability of all end customers of electricity in the province supplied by Newfoundland & Labrador Hydro (Hydro). The measure is a combination of Hydro s service continuity data and Newfoundland Power service continuity data for Loss of Supply outages resulting from events on Hydro s transmission system. Therefore, the System Average Interruption Frequency Index 1 (SAIFI) and System Average Interruption Duration Index 2 (SAIDI) data below is a measure of the duration and frequency of service interruptions experienced as a result of Hydro system events. This does not reflect interruptions to Hydro or Newfoundland Power customers related to issues on the Newfoundland Power system. Targets were developed using the past performance of Hydro and Newfoundland Power service continuity data. As electrical systems are not constructed, or expected, to fully withstand extreme weather conditions such as hurricanes and ice storms, the impacts of such extreme conditions, or significant events, are typically excluded from the evaluation of electrical system reliability performance. 3 The effects of the significant interruptions on January 11, 2013 and January 2 to 8, 2014, were removed from the data and a modified 2012 to 2016 five year average was created. These events were removed due to the significant effect these events had on the five year data set. The modified average was then compared to the 2015 CEA Region 2 Loss of Supply outcome. 4 The target was set using the modified 2012 to 2016 average with the goal of reaching the latest CEA Region 2 Loss of Supply value in five years. 1 System Average Interruption Frequency Index is a reliability key performance indicator for distribution service which measures the average cumulative number of sustained interruptions per customer per year. 2 System Average Interruption Duration Index is a reliability Key Performance Indicator for distribution service and it measures service continuity in terms of the average cumulative duration of outages per customer served during the year. 3 The Canadian Electricity Association (CEA) defines such extreme conditions as significant events which are defined as events that exceed reasonable design and/or operational limits of the electrical power system. Examples of significant events include hurricanes, ice storms, and loss of supply, such as the generation shortages that occurred on the Island Interconnected system in January 2013 and January Latest available information from the CEA Newfoundland and Labrador Hydro Page 1

88 Q1/ Quarterly Performance Indicators Report The SAIFI and SAIDI values add cumulatively through the year, with the final targets for SAIFI and SAIDI set at 1.50 interruptions/customer and 2.43 interruption hours/customer, respectively. Table 1 End User Service Continuity Performance Q1 Q YTD Annual Target Average SAIFI SAIDI Performance during the first quarter was affected by two underfrequency events and one significant transmission outage. The under frequency events are described in detail in a later section of this report. The transmission outage event occurred in January to transmission line TL215, affecting Newfoundland Power customers in the Port Aux Basque area. This event contributed 75% of the total Newfoundland Power portion of the end customer SAIDI for the first quarter of. Hydro customers were affected by transmission and distribution events which are further described later in this report. On Saturday, March 11,, the Island portion of the Province experienced a significant windstorm which resulted in outages to customers of both Hydro and Newfoundland Power on the Burin and Avalon Peninsulas. At its peak, Environment Canada reported sustained wind speeds of 106 km/hr and gusts of up to 158 km/hr at the St. John s International Airport. Due to very high winds, Hydro experienced catastrophic failures of three structures over two transmission lines: TL201, which connects the Western Avalon and Hardwoods terminal stations, and TL212, which connects the Sunnyside and Linton Lake terminal stations serving the Burin Peninsula. Hydro also experienced trips to Units 1 and 3 at the Holyrood Thermal Generating Station. In addition, Newfoundland Power also experienced damage to its assets, resulting in outages to customers on the Burin and Avalon Peninsula. This event has been identified as a Significant Event by Newfoundland Power and Hydro. 5 5 Significant Events are defined by CEA guidelines. Newfoundland and Labrador Hydro Page 2

89 Q1/ Quarterly Performance Indicators Report The following charts compare the performance during the first quarter of to that of the same period for Chart 1: End User SAIFI March Chart 2: End User SAIDI March 9 6 January Event contributed 4.05 to 2014 NP SAIFI, not shown in graph. 7 March Windstorm contributed 0.33 to NP SAIFI, not shown in graph. 8 January Event contributed 8.76 to 2014 NP SAIDI, not shown in graph. 9 March Windstorm contributed 0.98 to NP SAIDI, not shown in graph. Newfoundland and Labrador Hydro Page 3

90 Q1/ Quarterly Performance Indicators Report 2.0 Bulk Power System Delivery Point Interruption Performance 2.1 Transmission System Average Interruption Duration Index The Transmission System Average Interruption Duration Index 10 (T-SAIDI) improved during the first quarter of to 13 minutes per delivery point (forced and planned combined) compared to 43 minutes per delivery point in the first quarter of The planned component was three minutes per delivery point during the first quarter of, compared to 13 minutes per delivery point in the first quarter of The forced component was 10 minutes per delivery point in the first quarter of, compared to 36 minutes per delivery point in the first quarter of Chart 3: Transmission System Average Interruption Duration Index (T-SAIDI) (March ) T-SAIDI is a reliability key performance indicator for bulk transmission assets which measures the average duration of outages in minutes per delivery point. 11 January Winter Storm contributed (forced) to 2013 T-SAIDI, not shown in graph. 12 March Windstorm contributed (forced) to to SAIDI, not shown in graph. Newfoundland and Labrador Hydro Page 4

91 Q1/ Quarterly Performance Indicators Report 2.2 Transmission System Average Interruption Frequency Index The Transmission System Average Interruption Frequency Index 13 (T-SAIFI) for the first quarter of was 0.35 outages per bulk delivery point, with contributions of forced and planned outage frequency of 0.32 and 0.03, respectively. This compares with a 2016 first quarter T-SAIFI of 1.13 outages per bulk delivery point. The contributions in the first quarter of 2016 were 0.87 outages per bulk delivery point for forced outages and 0.26 outages per bulk delivery point for planned outages Chart 4: Transmission System Average Interruption Frequency Index (T-SAIFI) (March ) Transmission System Average Restoration Index (T-SARI) Hydro s Transmission System Average Restoration Index 17 (T-SARI) was 35 minutes per interruption for the first quarter of, compared to 43 minutes per interruption during the 13 Transmission System Average Interruption Frequency Index is a reliability key performance indicator for bulk transmission assets that measures the average number of sustained outages per delivery point. 14 January Winter Storm contributed 0.73 (forced) to 2013 T-SAIFI, not shown in graph. 15 January Event contributed 0.68 (forced) to 2014 T-SAIFI, not shown in graph. 16 March Windstorm contributed 0.11 (forced) to T-SAIFI, not shown in graph. Newfoundland and Labrador Hydro Page 5

92 Q1/ Quarterly Performance Indicators Report same quarter in The forced outage component of T-SARI was 31 minutes per interruption, compared to 41 minutes per interruption in the same quarter of The planned outage component of T-SARI was 83 minutes per interruption compared to 48 minutes per interruption in the same quarter of Chart 5: Transmission System Average Restoration Index (T-SARI) (March ) 3.0 Transmission Outages There were five forced transmission outages and two planned transmission outages during the first quarter of. 3.1 Forced Outages On January 24,, Newfoundland Power customers (3,563) supplied by transmission line TL215 in the Port Aux Basque area experienced an unplanned power outage of five hours and 38 minutes. The outage was caused by a jumper which burnt off on a dead end structure. 17 Transmission System Average Restoration Index is a reliability key performance indicator for bulk transmission assets which measures the average duration per transmission interruption. T-SARI is calculated by dividing T-SAIDI by T-SAIFI. Newfoundland and Labrador Hydro Page 6

93 Q1/ Quarterly Performance Indicators Report Repairs were completed and, while in the process of restoring the line, breaker B1L15 tripped during switching which caused the outage time to be extended. No issues were found with breaker B1L15. On February 2,, there were two events. During the first event, customers (7,362) north of Cow Head on the Great Northern Peninsula supplied by transmission line TL259 experienced an unplanned power of up to 27 minutes. The outage was caused by ice buildup on TL259. Customers in Hawke s Bay experienced a longer outage due to the requirement of resetting the mobile substation after the loss of power to the unit. Table 2 outlines the customer outages. Delivery Point Affected Customer Affected Table 2 TL 259 Trip #1, February 2, Start Time Time of Restoration Outage Duration (mins) Load Loss (MW) MW-Mins Parson's Pond :11 11: Daniel's Harbour :11 11: Hawke's Bay 1,321 11:11 11: Plum Point :11 11: Bear Cove :11 11: Main Brook :11 11: Roddickton :11 11: St. Anthony 2,424 11:11 11: During the second event on February 2,, customers (7,362) north of Cow Head on the Great Northern Peninsula supplied by transmission line TL259 experienced an unplanned power of up to 21 minutes. The outage was caused by ice buildup on TL259. Customers in Hawke s Bay experienced a longer outage due to the requirement of resetting the mobile substation after the loss of power to the unit. Table 3 outlines the customer outages. Newfoundland and Labrador Hydro Page 7

94 Q1/ Quarterly Performance Indicators Report Delivery Point Affected Customer Affected Table 3 TL 259 Trip #2, February 2, Start Time Time of Restoration Outage Duration (mins) Load Loss (MW) MW-Mins Parson's Pond :21 13: Daniel's Harbour :21 13: Hawke's Bay 1,321 13:21 13: Plum Point :21 13: Bear Cove :21 13: Main Brook :21 13: Roddickton :21 13: St. Anthony 2,424 13:21 13: On February 12,, customers (909) supplied by transmission line TL250 and the Grandy Brook Terminal Station experienced an unplanned power of three minutes. The outage was caused by melting ice and salt contamination on the phase insulators on TL250. On February 12,, a second unplanned power outage occurred which affected customers (909) supplied by transmission line TL250 and the Grandy Brook Terminal Station. This outage lasted 15 minutes and was also caused by melting ice and salt contamination on the phase insulators on TL250. A line patrol by helicopter did not determine any permanent issues with TL Planned On January 20,, customers (2,342) supplied by South Brook Terminal Station experienced a planned outage of two hours and 36 minutes. The outage was required to repair a hot spot on voltage regulator T1B1-VR1 at South Brook station. On January 27, customers (908) supplied by Grand Brook Terminal Station experienced a planned outage of ten minutes. The outage was required to repair an issue with disconnect switch L50T1 at Grandy Brook station. Newfoundland and Labrador Hydro Page 8

95 Q1/ Quarterly Performance Indicators Report 3.3 Significant Events The events on March 11,, have been classified as a Significant Event. 18 On March 11,, at 1222 hours, transmission line TL212 tripped at Sunnyside Terminal Station and Linton Lake substation. This resulted in an unplanned power outage to 1,816 Newfoundland Power and Hydro customers. The following is a summary of the customers affected: Newfoundland Power customers at Monkstown Substation (466) Newfoundland Power customers at Bay L Argent Substation (1,161) Hydro customers at Monkstown and South East Bight (126) Hydro customers at Petit Forte (63) A line patrol found two structures on the ground on TL212: one structure between Sunnyside terminal station and Monkstown terminal station, and the other between Bay L Argent terminal station and Linton Lake substation. No customers could be restored until new structures were built in both locations. After reviewing the construction requirements, it was decided to start repairs on the structure between Linton Lake and Bay L Argent. Repairs were completed on March 13,, at 1954 hours and customers were restored. Delivery Point Affected Table 4 TL 212 Sunnyside Events, March 11, Start Time Time of Restoration Outage Duration (mins) Load Loss (MW) MW-Mins Linton Lake 12:23 19:54 33: Bay L Argent 12:23 19:54 33: ,992 Monkstown 12:23 20:10 33:47 1 4,686 Total 16,677 The section between Sunnyside terminal station and Monkstown terminal station was restored on March 16,, at 2014 hours. On March 11,, at 1359 hours, Newfoundland Power customers (9,953) served by transmission line TL219 on the Burin Peninsula experienced an unplanned power outage of The event was identified as a Significant Event using CEA Guidelines; Newfoundland Power also identified the same event as Significant. Newfoundland and Labrador Hydro Page 9

96 Q1/ Quarterly Performance Indicators Report minutes. Transmission TL212 had been out of service from a trip experienced earlier in the day. TL219 tripped due to the very high wind in the area at the time. Line patrol found no damage to the line. Wind speeds of 180 km/h were recorded in the area. On March 11, at 1554 hours, Newfoundland Power customers (approximately 125,000) served by the Oxen Pond and Hardwoods Terminal Stations experienced an unplanned power outage; see Table 5 for details. The outage occurred after transmission line TL218 tripped due to the very high winds. Transmission line TL236 and Hardwoods transformers T1 and T2 had been out of service after a Bus B1 lockout earlier on March 11. The remaining transformers (T3 and T4) at Hardwoods tripped due to overload. Wind speeds of 157 km/h were recorded in the general area. A line patrol did not find any damage to TL218. Table 5 Hardwoods and Oxen Pond Terminal Station Events, March 11, Delivery Point Affected Start Time Time of Restoration Outage Duration (mins) Load Loss (MW) MW-Mins Hardwoods 15:54 16: ,560 Oxen Pond 15:54 16: ,620 Total 10,180 On March 11,, Industrial customers Vale and Praxair (Long Harbour) experienced an unplanned power outage of 50 minutes after transmission line TL208 tripped. TL208 tripped due the very high wind in the area at the time. Wind speeds of 148 km/h were recorded in the general area. A line patrol did not find any damage to TL Under Frequency Load Shedding Under Frequency Load Shedding (UFLS) is a reliability key performance indicator that measures the number of events in which shedding of a customer load is required to counteract a generator trip. Customers are shed automatically depending upon the generation lost. There were two under frequency events during the first quarter of, summarized as follows: Newfoundland and Labrador Hydro Page 10

97 Q1/ Quarterly Performance Indicators Report Event 1 On January 30,, at 1406 hours the Hinds Lake unit became unavailable when the transmission line TL243 breaker B1L43 tripped in the Howley terminal station. With the removal of generation (approximately 60 MW) the system frequency dropped to 58.7 Hz resulting in the activation of the under frequency protection at Newfoundland Power (4,823 customers) and Corner Brook Pulp & Paper Limited. The total island load at the time of the incident was 1117 MW. Hydro's Energy Control Center worked with Newfoundland Power's Operations Group and all customers were restored within 5 minutes of the event occurring. Load Shed: Corner Brook Pulp and Paper 15 MW Newfoundland Power Total Load Shed: 20 MW 35 MW At 1415 hours on January 30,, the Hinds Lake unit became available and was returned to service at 1459 hours. Investigation determined that breaker B1L43, which isolates TL 243 and the Hinds Lake Generating Station on the end of TL 243 in the Howley Terminal Station, tripped while a technologist was testing circuits for TL 245. The test meter probes were inadvertently placed across the TL 243 contacts instead of the TL 245 contacts. Both terminal blocks for TL 243 and TL 245 are within the same cabinet. The meter had sufficient voltage to trigger the protection signal on B1L43, opening the breaker and isolating both TL 243 and the Hinds Lake Station. To prevent this from happening again, a clear Lexan cover has been placed over these terminal blocks to prevent contact of the wrong points, and the crews have been informed of the lessons learned. Event 2 On February 13,, at 0921 hours the Holyrood Combustion Turbine tripped. With the removal of generation (approximately 80 MW) the system frequency dropped to Hz resulting in the activation of the under frequency protection at Newfoundland Power (4,190 customers) and Corner Brook Pulp & Paper Limited. Total island load at the time of the incident was 1,580 MW. Hydro's Energy Control Center worked with Newfoundland Power's Operations Newfoundland and Labrador Hydro Page 11

98 Q1/ Quarterly Performance Indicators Report Group and advised that power to customers could be restored within four minutes of the event occurring. Load Shed: Corner Brook Pulp and Paper 15 MW Newfoundland Power Total Load Shed: 22 MW 37 MW Investigation determined that the unit tripped after the fire suppression system activated in the exhaust tunnel. A damaged cable in the fire detection system was discovered and repaired. Chart 6 outlines the year to date performance compared to performance over the previous five years. Chart 6: Hydro s Underfrequency Load Shedding Events (March ) Table 6 compares the UFLS events in the first quarter of to the same quarter in 2016 and the annual performance. Newfoundland and Labrador Hydro Page 12

99 Q1/ Quarterly Performance Indicators Report Table 6 Underfrequency Load Shedding Number of Events Customers First Quarter 12 Months to Date 5 Year Average Newfoundland Power Industrials Hydro Rural Total Events Table 7 Underfrequency Load Shedding Undersupplied Energy (MW-min) Customers First Quarter 12 Months to Date 5 Year Average Newfoundland Power 198 1,455 1,047 3,003 5,492 Industrials Hydro Rural Total Events 348 1,467 1,452 3,522 5, Rural System Service Continuity Performance 5.1 System Average Interruption Duration Index In the first quarter of, SAIDI performance was 1.84 hours per customer, compared to 4.05 hours per customer during the same quarter of The forced component was 1.59 hours per customer and the planned was 0.25 hours per customer in the first quarter of. The forced component in the first quarter of 2016 was 3.90 hours per customer and 0.15 hours per customer for the planned component. 19 Underfrequency activity affecting Hydro Rural Customers may also result in a number of delivery point outages. Outage frequency and duration are also included in totals shown in the delivery point statistics section of the report for these areas, namely the Connaigre Peninsula and Bonne Bay. Newfoundland and Labrador Hydro Page 13

100 Q1/ Quarterly Performance Indicators Report Chart 7: Service Continuity System Average Interruption Duration Index (SAIDI) (March ) 5.2 System Average Interruption Frequency Index (SAIFI) 20 was 0.54 interruptions per customer during the first quarter of, compared to 2.38 interruptions per customer during the same quarter of The forced component was 0.41 interruptions per customer and the planned component was 0.13 interruptions per customer in the first quarter of. The forced component in the first quarter of 2016 was 2.27 interruptions per customer and 0.11 interruptions per customer for the planned component. 20 System Average Interruption Frequency Index is a reliability key performance indicator for distribution service which measures the average cumulative number of sustained interruptions per customer per year. Newfoundland and Labrador Hydro Page 14

101 Q1/ Quarterly Performance Indicators Report Chart 8: Service Continuity System Average Interruption Frequency Index (SAIFI) (March ) 5.3 Noteworthy Outages During the first quarter of, there were several noteworthy outages. On January 8,, there were two outages to the Grandy Brook distribution system (848 customers). The first outage occurred when an insulator failure on Line 1 recloser GB1 R1 operated and subsequently transformer T1 in Grandy Brook Terminal Station locked out. The outage had a duration of 4 hours 35 minutes. The second outage occurred when a second insulator failure on Line 1 feeding Burgeo recloser GB1 R1 operated and subsequently transformer T1 in Grandy Brook Terminal Station locked out. This outage had a duration of 3 hours 55 minutes. On January 14,, customers (244) in Green Island Brook, Green Island Cove, Lower Cove, Pines Cove, and Eddies Cove serviced by Bear Cove L6 experienced an unplanned power outage Newfoundland and Labrador Hydro Page 15