Diesel costs for downed hydro plant projected at $1.7M
Additional repairs needed on Snare Falls will extend need for backup generation to six weeks
Elaine Anselmi
Northern News Services
Wednesday, March 4, 2015
SOMBA K'E/YELLOWKNIFE
The downed Snare Falls hydro plant won't be back online for at least six weeks, costing $1.7 million in backup diesel generation, and it's unclear who will pay the bill.
Following the Feb. 15 failure that caused a city-wide power outage, repairs on the plant were estimated to take between two and six weeks.
But with cracks discovered on the turbine blades following a more thorough inspection, repairs are now confirmed to be on the longer end of the spectrum, said Pam Coulter, Northwest Territories Power Corporation spokesperson. With the new repairs adding 10 days of work, the plant will be down for at least six weeks, at a cost of $40,000 per day in backup diesel generation.
How the steep price tag for diesel will ultimately be paid off - whether by customers, government or otherwise - is still undetermined.
After the initial breakdown, it was suggested that the added cost of diesel backup could come out of the $20 million from the GNWT that was granted to cover the increase of diesel due to low water levels last year. This has not been confirmed, said Coulter, but is still possible.
"The power corp. also carries insurance for this type of loss," she added.
"The insurers have been notified and we've opened a claim and will work with insurance through the normal process in hopes of recouping the loss."
Otherwise, the additional costs would be borne by the power corp., and could eventually be reflected on bills through a rate change approved by the Public Utilities Board. The power corp.'s next general rate application is in 2017.
Depending on the damage, the plant will either require short-term repairs and be put back into service until an overhaul can take place in the summer, or a full repair will be required immediately. An overhaul would take the plant out of operation for between four and six months.
"It is all depending on what we find," Coulter said.
"We're not giving a lot of information because we really don't know for sure yet."
The extent of the damage on the turbine is not fully known as crews have only been able to drain and enter the upper chamber.
Repairs on the lower chamber are usually done in the summer due to ice in the river which complicates access to its gates, said Coulter. Divers have arrived and are working on the lower chamber, which will then be sealed and emptied, allowing crews to get in.
"Once we get inside we will be able to provide a much more accurate estimate of time and cost," Coulter said.
The Snare Falls plant was due for a complete overhaul in the summer of 2016. Some parts, such as the bearings that were originally deemed the cause of the failure, were set to be replaced this summer.
"Right now, we just don't know," said Coulter.
"We want to make sure that whatever we do, when we return it to service it is with a reasonable expectation of it not failing again and it will hold until the next overhaul."
The backup cost, should the plant go down for several months, would depend on the time of year as energy usage significantly decreases in the warmer months.
