SOMBA K'E/YELLOWKNIFE
The city's reliance on diesel is costing an additional $40,000 a day after a breakdown at a power plant left the city in the dark on Valentine's Day.
The Snare Falls hydroelectric plant is the second of four plants generating power on the Snare River. The water is currently being diverted around the plant while repairs to the turbine bearings take place. - photo ourtesy of NTPC |
One of four plants in the Snare River hydro system went offline early in the morning on Feb. 15 due to a mechanical failure - the cause of which is not yet known, said Pam Coulter, NWT Power Corporation spokesperson.
"At this point we know a bearing failed and that's really what we know," said Coulter, adding the broken turbine bearing at the Snare Falls plant could take between two and six weeks to repair.
The remaining three plants in the system are operating as usual with the costly alternative of burning diesel compensating for the loss.
Yellowknife Centre MLA Robert Hawkins brought up the high cost of backup power in the legislative assembly on Monday, asking for transparency on when repairs to the hydro plant could be expected.
"If we estimate that this could take one day it's $40,000 - if we estimate it takes six weeks, that's almost $1.7 million," Hawkins said.
"This is certainly an expensive meter running at the cost of NWT taxpayers."
Few details were given by Michael Miltenberger, minister responsible for Northwest Territories Power Corporation, but he said the cost could fall under the $20 million offered up by the government in January to offset the increase in diesel generation due to low water levels. That top-up of diesel generation continues to cost an additional $45,000 per day. In total, diesel generation is costing $85,000 per day, compared to a little more than $1,100 at regular water levels and all four hydro plants online.
"This is related but not directly tied to (the low water levels)," Miltenberger said.
"However, we had anticipated that we would be saving some of that money with the lower price of diesel and we will be using that $20 million to offset additional diesel costs as the appropriate repairs are affected."
Miltenberger voiced concern in January that without heavy snow this winter, water levels could remain low and the territory could be in for another year of increased reliance on diesel.
If any costs associated with the downed hydro plant are reflected in the rates, Coulter said that would, like any rate increase, have to first go through a general rate application with the Public Utilities Board. The next one is scheduled for 2015.
Until that time, Coulter said the $40,000 per day cost of diesel generation would not affect the rate at which the power corp. sells electricity to Northland Utilities - the city's franchisor.
If the cost is an expense to the power corp., it would appear on bills as a rate rider - an additional charge to cover unforeseeable expenses, said Duane Morgan, Northland general manager. This would also require the regulator's approval, and would not likely be applied for several months.
At the moment, Morgan said Northland's focus is ensuring there is an appropriate supply to provide electricity to the city.
"We're more concerned right now about the operational effectiveness of it and making sure we can still function and get ahead," said Morgan.
"Our main concern right now is reliability."
All bearings in the plant were scheduled for repair this summer, following an inspection in 2014, said Coulter.
Normally, she said, the bearings can last up to 25 years - the last overhaul at Snare Falls was 19 years ago in 1996. She said this was not necessarily a matter of waiting too long for repairs. The actual cause is still unknown.
"That's something we'll look at after it gets fixed," said Coulter.
"The focus right now is getting it up and running again."
The system is on a regular maintenance schedule but Coulter said any repairs needed within the Snare Falls plant will be done before the unit goes back online. As for the remaining pieces scheduled for replacement this summer, she said, "I would believe they are replacing those bearings."
Snare Falls, at the time of breakdown, was producing about 4 megawatts of electricity.
