Burrard Generating Station

Transcription

1 Burrard Generating Station MLA Review Committee Review of Operations Historic, Current and Future February 2003 T H E POWER IS YOURS

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3 Overview History of key events and Burrard Generating Station s contribution to BC Hydro Value of Burrard Generating Station Environmental and Air Quality Opportunities for Burrard Generating Station HE POWER I S YOURS BChyclro m 3

4 Historical Key Events East side Units 1, 2, 3 - construction commenced 1960, last unit commissioned 1963 West side Units 43, 6 - construction commenced mid-l960 s, last unit commissioned to 87 - Reduced requirement to generate power due to recession and implementation of new hydro at Revelstoke Burrard sets record production (4,200 GWh) Task force recommends Selective Catalytic Reduction (SCR) installation to reduce NOx emissions and improve environmental performance 1995 to SCR s installed on all Units Integrated Electricity Plan recommends replacement of east side with Combined Cycle Gas Turbine (CCGT) technology, possible in-service date on 2004 / International environmental registration with IS THE POWER I S YOURS BGhydro 3 4

5 THF: Historical Expenditures Capital + Total from I987 to 2002 is $160 million + $59 million to upgrade Units 4, 5 & 6 + $47 million to install SCR to reduce NOx air emissions + $10 million to upgrade old equipment + $10 million for asbestos removal Income Statement + Fixed Operation & Maintenance $13.5 million per year + Variable Operation & Maintenance $1.25/MWh, plus natural gas costs + Pro-forma income statement indicates near break-even when not generating POWER I S V'OURb BGhydro m 5

6 Capital Expenditures Burrard GS Distributed Control System (DCS) on Units 4, 5, 6 (West) - enhanced operation & control T H E POWER I S YOUR6 BChydm a 6

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9 Value of Burrard Generating Station I Net contribution of $900 million for 1999 to 2003 Voltage support (VARs) increase transfer ca pa b i I it y Mitigates transmission grid improvements requiring: 0 capital expenditures of $50 million 0 operating & maintenance costs of $8 million per year Mitigates annual transmission line losses of $6 million per year Insurance against transmission line failures Local contribution in annual grants and municipal taxes of $1.4 million per year T H E POWEU I S YOURS BChydro 0 9

10 The Environmental and Social Side of Burrard GS T H E PQWER I S YOURS BChudro m I Community Liaison Committee of Municipal Council Philanthropic activity Grants & taxes Employment & other indirect benefits Environment Air emission improvements Aquatic & fish habitat studies 0 Water quality improvement 0 Noise & visual effect i m p rovemen ts 0 IS registration 10

11 Heavy-Duty Vehicles 15% Air Contaminants in Lower Fraser Valley Airshed Local Airshed Issue Nitroaen Oxides Marine Rail 22% All Other Sources 27% Non-Road 17% Global Warming Issue Greenhouse Gases A Electric Power Generation Mineral Processing Industries 7% Petroleum Products 7% Ligl Light-Duty Vehicles 24% lures Vehicles 17% 23% Burrard GS: 0.2% Burrard GS: 6.2% Sources of Common Air Contaminants in the Lower Fraser Valley Air Shed 2000 Emission Inventory THE POWE& I S YOURS BChydro a 11 20%

12 Air Contaminants in Lower Fraser Valley Airshed Agriculture Burning 7% 8% All Ott ier Sources 30% Fine Particulates (PM 2.51 Burrard GS: 1% Non-Road 16% All Other Sources Sources of Common Air Contaminants in the Lower Fraser Valley Ai rshed 2000 Emission Inventory T H E POWER I S YOURS BChudro Wood Products Bulk Shipping 8% Terminals m 12% 12

13 Opportunities and Related Benefits Replace east side Units l9 2, 3 with advanced Combined Cycle Gas Turbine (CCGT) technology w Environmental Improvements + Reduced fresh water, saltwater cooling requirements + Improved emissions per MWh of energy produced Efficiency and Reliability Improvements + Improved heat rate reducing total cost per MWh + Lower maintenance cost per MWh of energy produced, enhancing BC Hydro net income THE POWER I S TOURS BChydro 13

14 Opportunities and Related Benefits 4 Local Social Benefits (Present & Future) + Construction employment + Ongoing taxation + Ongoing skilled employment # Market Opportunities (Current to approx. 3 Years) + Short-term favourable market conditions exist to replace east side Units T H E POWER IS YOURS BChudro 0 14

15 Summary w $900 million contribution I999 to 2003 Annual local grants & taxes of $1.4 million per year w $47 million invested in BGS to reduce NOx emissions w Mitigation of $14 million per year in transmission costs w Burrard GS is strategically located at the hub of transmission lines and close to load centre Burrard GS provides insurance against power disruptions to the Lower Mainland rn Opportunities exist to replace ageing east side (Units I, 2, 3) equipment with advanced technology T H E POWER I S YOURS BChydro 3 15

16 Options Moving Forward + Phase out in I O to 20 years 3 Continue as-is and replace equipmenvunits at end-of-life + initiate replacement of east side Units 1, 2, 3 with advanced technology PHE POWER IS YOURS BChydro 16

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