Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators A REPORT TO 2014 ANNUAL REPORT

Transcription

1 1\1LH 2013 Amended General Rate Application Information - 'kt ) p iled:p ''Gelb- Board Secretary: Quarterly Regulatory Report December 31, 2014 Appendix E A REPORT TO THE BOARD OF COMMISSIONERS OF PUBLIC UTILITIES 2014 ANNUAL REPORT ON KEY PERFORMANCE INDICATORS Pursuant to Order No. P.U. 14(2004) NEWFOUNDLAND AND LABRADOR HYDRO Page El a Rakcar energy company

2 TABLE OF CONTENTS 1 Introduction Overview of Key Performance Indicator Results Overview Performance in 2014 versus 2014 Target Performance Indices Reliability Performance Indicators Reliability KPI: Generation Reliability KPI: Transmission Reliability KPI: Distribution Reliability KPI: Other Operating Performance Indicators Operating KPI: Generation Financial Performance Indicators Customer Related Performance Indicators Appendix A: Rationale for Hydro s 2014 KPI Targets Appendix B: Computation of Weighted Capability Factor and Factors Impacting Performance Appendix C1: Significant Transmission Events 2014 Appendix C2: Significant Distribution Events 2014 (Excluding Fourth Quarter) Appendix C3: Underfrequency Load Shedding Events (Excluding Fourth Quarter) Appendix D: List of U.S. Based Peers for Financial KPI Benchmarking Page E2

3 1 Introduction In Order No. P.U. 14(2004), the Board required Newfoundland and Labrador Hydro (Hydro) to file appropriate historic, current and forecast comparisons of reliability, operating, financial and other Key Performance Indicators (KPIs). These were ordered to be filed with Hydro s annual financial report, commencing in In compliance with the above Order, Hydro has 16 individual KPIs within the following four general categories: Reliability; Operating; Financial; and Customer Related. Within each of these categories, KPI data is reported on a historic basis for Hydro. Where appropriate, KPIs are subcategorized based on whether they relate to generation, transmission, distribution or overall corporate activity. For most of the Reliability KPIs, data from the Canadian Electricity Association (CEA) is provided in this report, as has been the case in prior years. At the time of this report, CEA data has been published only to CEA data is unavailable for underfrequency load shedding, a reliability KPI, as this measure is unique to Hydro s Island Interconnected System. In the Operating category, the KPIs used to measure performance relate to two specific facilities within Hydro s system: Bay d Espoir and Holyrood. For these two generation plants, performance is measured and compared on a year over year basis. Section 2 of this report provides an overview of Hydro s KPI performance in 2014 compared with the prior year as well as a comparison of actual KPI results compared with targets. Section 3 of this report provides a detailed analysis of each individual KPI within the four categories named above in Section 3. In addition, it provides fourth quarter data for transmission and distribution reliability which is routinely included in Hydro s quarterly regulatory reports. Section 3.3 Financial Performance Indicators are not yet available but will follow after the audited financial statements are available. In addition, it provides fourth quarter data for transmission and distribution reliability which is routinely reported in quarterly regulatory reports. The 2014 financial data and 2015 targets in Section 4 Data Table of Key Performance Indicators are not available at this time. This section will be re filed after the financial data is available and the 2015 target levels have been established. Page E3

4 2 Overview of Key Performance Indicator Results 2.1 Overview A number of key indices measured by Hydro showed improvement when compared to 2013 or the targets for All indices are discussed in the following sections of this Appendix. Some highlights are below. Residential Customer Satisfaction was 84% in 2014 compared to a target of 80%. There was an improvement in generation availability in 2014 when compared to Hydro s Weighted Capability factor, which measures generating unit availability, was 79.7% in 2014 compared to 75.5% in The availability of the Holyrood thermal plant improved to 63% in 2014, compared to 46% in The availability of gas turbines improved to 80%, compared to 62% in The availability of Hydro s hydraulic plants was 88% in 2014, compared to 92% in With the exception of Unit 6 at the Bay d Espoir generating station, Hydro s hydraulic units availability was consistent with historic performance. Impacting on the overall hydraulic unit availability was a failure of a rectifying transformer Unit 6 and the subsequent failure of the spare during the winter months. These transformer issues resulted in an extended outage to Unit 6 that impacted hydraulic availability. Derating Adjusted Forced Outage Rate (DAFOR measures the percentage of the time that a unit or group of units is unable to generate at its Maximum Continuous Rating (MCR) due to forced outages) Hydro s DAFOR performance was 8.2% in 2014, compared to 13.7% in The frequency of transmission delivery point outages improved in 2014, compared to The forced outage component of transmission delivery point outages also improved in 2014, compared to The hydraulic conversion factor at Bay d Espoir improved in 2014 from In 2014, the water levels experienced in the reservoirs were generally lower. This allowed greater output flexibility resulting in improved water utilization at the Bay d Espoir plant. The target was met in 2014 for this measure. Other indices did not exhibit the same improvement in comparison to the 2013 performance or target. There were 14 underfrequency load shedding events in This is compared to a 2014 target of six events and a 2013 performance of seven events. Transmission and Distribution reliability were impacted by the significant disturbances on January 4 and 5 which were precipitated by a transformer failure at Sunnyside Terminal Station and subsequent breaker failures. Additionally, there were a number of severe weather related outages, primarily occurring in the Central region in February and April. The 2014 operating KPI for energy conversion at Holyrood was primarily impacted by the low heating content in the fuel consumed at the plant, in addition to a lower average unit loading. A review of all indices are contained in the following sections. Page E4

5 Hydro s 2014 operating and maintenance costs are not available at this time. Financial KPI data will be provided at a later date. 2.2 Performance in 2014 versus 2014 Target The table below summarizes Hydro s KPI performance in The rationale for the 2014 targets was summarized in the February 2014 report to the Board entitled 2013 Annual Report on Key Performance Indicators. The 2014 rationale is included in this report as Appendix A. Category KPI Units 2014 Target 2014 Results Weighted Capability Factor (WCF) % DAFOR % T SAIDI Minutes/Point Reliability T SAIFI Number/Point T SARI Minutes/Outage SAIDI Hours/Customer SAIFI Number/Customer Underfrequency Load Shedding # of events 6 14 Operating Hydraulic CF GWh/MCM Thermal CF kwh/bbl Financial Controllable Unit Cost $/MWh Not Available Other Customer Satisfaction (Residential) Max=100% 80% 84% 1 The Weighted Capability Factor target is based on planned annual maintenance outages, an allowance for other short duration maintenance outages and targeted forced outage durations. 2 Transmission and distribution reliability targets were set on combined planned and unplanned outages. Page E5

6 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators 3 Performance Indices The following defines and describes detailed Key Performance Indicator data within four general categories: Reliability, Operating, Financial, and Customer Related. 3.1 Reliability Performance Indicators Hydro monitors reliability performance with eight separate metrics. These metrics have been dividedd into the following subcategories: Generation, Transmission, Distribution, and Other Reliability KPI: Generation a) Weighted Capability Factor (WCF) a reliability KPI for generation assets that includes Hydro s thermal, gas turbine and hydroelectric generationn assets on the Island and Labrador Interconnected Systems. The WCF measures the percentage of the time that a unit or a group of units is available to supply power at maximum continuous generating capacity. The factor is weighted to reflect the difference in generating unit sizes, meaning larger units have a greater impact on this measure. In 2014, Hydro s WCF was 79.7% %, compared to 75.5% in 2013 and a target of 84%. The 2009 to 2013 Hydro five year average is 81.6% %. The annual target for availability includes the time that units are out for maintenance. Therefore, the capability in any year is affected by the maintenance and capital work planned for that year. Page E6

7 Thermal unit WCF was 63% in 2014 compared to 46% in The overall 2014 Thermal WCF target was 67%. Holyrood Unit 3 had a capability factor of 69%, Unit 2 had a capability factor of 61%, and Unit 1 had a capability factor of 60%. Holyrood unit maintenance and planned outages were completed within the intended timeframes. A Holyrood unit was operated throughout the summer months in 2014 in order to support the transmission into the Avalon Peninsula. Overall, the hydraulic unit WCF performance was 88%, compared to 92% in 2013 and a target of 92%. The primary driver for the 88% WCF is the failure of two rectifying transformers on Bay d Espoir Unit 6. The in service rectifying transformer failed on January 30 and the unit was returned to service on February 1, using the spare transformer. This spare transformer failed on February 17 and, with no other spares available, a new transformer was required to be built. The unit was returned to service on August 5 with a new rectifying transformer. Removing the impact of the rectifying transformer failure from the hydraulic WCF, results in an annual hydraulic WCF outcome which is approximately equal to the target of 92%. Gas turbine availability improved to 80% in 2014 from 62% in The 2014 gas turbine WCF target was 86%. Calculation details for weighted capability as well as a list of factors that can impact KPI performance are included in Appendix B of this report b) Weighted Derating Adjusted Forced Outage Rate (DAFOR) a reliability KPI for generation assets that includes Hydro s thermal and hydroelectric generation assets on the interconnected systems 3. DAFOR measures the percentage of the time that a unit or group of units is unable to generate at its Maximum Continuous Rating (MCR) due to forced outages. The KPI is weighted to reflect differences in generating unit sizes. In 2014, Hydro s weighted DAFOR was 8.2%, compared to 12.2% in 2013 and a target of 2.7%. The thermal DAFOR for 2014 was 13.7%, compared to 36.6% in 2013 and a target of 8.0%. The variance from target for the thermal units was not attributed to any major failures on any one unit, but rather a series of minor failures of one to three days in duration. The hydraulic DAFOR was 5.9% compared to 0.55% in 2013 and a target of 0.6%. The hydraulic DAFOR was impacted by the failures of the rectifying transformers on Bay d Espoir Unit 6, as described in the previous section. These failures contributed approximately 83% of the overall 2014 hydraulic DAFOR. Hydro s overall weighted DAFOR for the period 2009 to 2013 is 5.0%, 2.0% better than the equivalently weighted national average of 7.0% for the same period. 3 DAFOR is not applicable to the gas turbines because of the gas turbines low operating hours. Page E7

8 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators c) Generation Equipment Performance The table below highlights the various performance indices for Hydro ss generation facilities. Indices for 2013 and for the latest CEA national average for the period are included for comparison. Generation Performance Indices Index Failure Rate (Forced Outages per 8,760 operating hours) Incapability Factor (Percent of Time) Derating Adjusted Forced Outage Rate (Percent of Time) Utilization Forced Outage Probability (Percent of Time) Hydro NLH NLH CEA NLH NLH CEA NLH NLH CEA NLH 2014 NLH 2013 CEA Thermal Gas Turbine Page E8

9 Hydraulic Unit Performance The extended forced outage to Unit 6 at Bay d Espoir resulting from the rectifying transformer failures impacted all hydraulic unit measures in 2014, when compared to 2013 and to the national five year averages. In excluding these transformer failures, the performance of the remaining hydraulic units was consistent with past performance. Thermal Unit Performance Thermal unit performance improved in 2014 in the areas of Incapability Factor and DAFOR, when compared to Failure rate performance in 2014, when compared to 2013, was impacted by a series of minor vibration issues at Unit 2 which occurred during startup of the unit following its annual maintenance. These vibration issues were addressed in the fourth quarter of Gas Turbine Unit Performance The Incapability Factor and Utilization Forced Outage Probability (UFOP) performance of Hydro s gas turbines improved in 2014 when compared to In comparison to the national average, the Failure Rate is high due to the normally low operating hour requirements of Hydro s gas turbines. Units across the country are often used on a more frequent basis and therefore their failure rate percentage is lower than those of a standby unit. Of particular importance to Hydro s gas turbines fleet is the UFOP which measure the degree to which a standby unit can be called upon to supply load when requested. The UFOP in 2014 was 14.3%, compared to 28.1% in 2013 and the CEA five year average of 13.1%. Page E9

10 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators Reliability KPI: Transmission a) Transmission System Average Interruption Duration Index (T SAIDIof outages in minutes per delivery point. reliability KPI for bulk transmission assetss which measures the average duration The fourth quarter T SAIDI was 96 minutes per delivery point (forced and planned combined) compared to 120 minutes in The total 2014 T SAIDI was 458 minutes per delivery pointt compared to a 2013 total of 469 minutes per delivery point and a target of 180 minutes per deliveryy point. The forced outage duration in 2014 was 214 minutes, compared to 277 minutes in 2013 and a 2014 target of 53 minutes per delivery point. The planned outage duration was 244 minutes, compared to 192 minutes in 2013 and a target of 128 minutes per delivery point. The significant outages which occurred on January 4 and 5, originatingg on the Avalon Peninsula, contributed 120 minutes per delivery point to the forced outage T SAIDI for 2014 (approximately 56% of the total forced T SAIDI). The increase in the T SAIDI for planned outages was the result of increased maintenance on terminal station equipment. Page E10

11 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators b) Transmission System Average Interruption Frequency Index (T SAIFI) a reliability KPI for bulk transmission assets that measures the average number of sustained outages per delivery point. The fourth quarter T SAIFI was 0.48 outages per bulk delivery point, with contributions of forced and planned outage frequency of 0.17 and 0.31, respectively. The 2013 fourth quarter T SAIFI was 0.91 outages per bulk delivery point. The 2014 T SAIFI was 3.78 outages per bulk delivery point, compared to 2013 T SAIFI of 3.45 outages per delivery point and the 2014 target of The number of forced outages per delivery point in 2014 was 2.90 compared to 2.59 in The number of planned outages per delivery point in 2014 was compared to 0.86 in Page E11

12 Quarterly Regulatory Report December 31, 2014 Appendix E Transmission -System Average Interruption Frequency Index (T-SAIFI) FORCED OUTAGES ONLY c "- ~ <II -~ -.; 0.. ~ <II Q. ~ Q c 2.00 " t:: <II ~ 1.50 (\ I \ ~ I \. / I \ / I \/!!. y NLH Average ( ) CEAAverage ( ) cea..nlh Transmission - System Average Interruption Frequency Index (T-SAIFI) Forced & Planned Comb/ned E ~ 3.50 "- ~.~ 3.00 Qj 0 X ;::; 2.00 Q. 2 ~ \ I \ -A / \? / '\. / I \ /!!. \/... ~ NLH Average ( ) 3.19 CEAAverage ( ) NLH Page E12

13 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators c) Transmission System Average Restoration Index (T SARI) reliability KPI for bulk transmission assetss which measures the average duration per transmission interruption. T SARI is calculated by dividing T SAIDI by T SAIFI. Hydro s total transmission T SARI was 199 minutes per interruption forr the fourth quarter of 2014, compared to 131 minutes per interruption during the same quarter in The forced outage component of T SARI was 42 minutes per interruption, compared to 91 minutes per interruptionn in The planned outage component of T SARI was 286 minutes per interruption compared to 192 minutes in Hydro s 2014 total transmission T SARI on an annual basiss was 121 minutes per interruption, compared to 136 minutes in 2013 and a 2014 target of 114 minutes. The forced outage component of T SARI was 74 minutes per interruption, compared to 107 minutes in The planned outage component of T SARI was 277 minutes per interruption, compared to 223 minutes in Since T SARI is the ratio of T SAIDI to T SAIFI, this increase results from the increase in T SAIDI relative to T SAIFI. Hydro s total T SARI performance improved in 2014 compared to 2013 and is better than the latest CEA five year average. Page E13

14 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators Transmission - System Average Restoration Index (T-SARI) Forced & Planned Combined c.,g a. E s -= a; a. ~ 95 " c ~ 80 65, A /\ ~ / \ / / / \. / / ~ ~ \~/.. /!!"' ",, ~ CEA Average ( ) NLH Average ( ) cea Transmission - System Average Restoration Index (T-SARI) Forced & Planned Combined c.2 Q. 125 ~ 110 -= a; a. s "' 95.5 " ~ 80, A /\ ~ / \ / / " / \. / / ~ ~ \~/.. /!!"',, ~ CEA Average ( ) NLH Average ( cea There were four forced transmission outages and 11 planned transmission outages in the fourth quarter. A summary of these outages follows: Page E14

15 Forced On October 4, customers supplied by the Main Brook and Roddickton Terminal Stations experienced an unplanned power outage of ten minutes. The outage occurred at the commencement of a planned outage to perform preventative maintenance on breakers at the St. Anthony Airport Terminal Station. During the switching to prepare for the planned outage, there was a protection trip of TL261 on opening L56T1. Customers in St. Anthony continued to be supplied via the St. Anthony Diesel Plant. On October 29, all customers on the Great Northern Peninsula, north of and including Plum Point, experienced an unplanned power outage of up to one hour and 32 minutes. The outages were caused by the misoperation of the neutral overcurrent protection on Plum Point transformer T1 resulting in a transformer lockout which tripped transmission Lines TL241 and TL244. The protection was activated by issues on feeder L2 in the Plum Point distribution area. Customers north of Plum Point were subjected to an extended outage due to the failure of a micro switch on the high side disconnect switch B1T1 on T1 at Plum Point. The failure of this micro switch required that personnel travel to Plum Point to reset the transformer lockout before TL241 and TL244 could be restored. The St. Anthony Diesel Plant was started to restore St. Anthony customers. On November 9, customers supplied by the Main Brook and Roddickton Terminal Stations experienced an unplanned power outage of 25 minutes. The outage occurred during switching for a planned outage at the St. Anthony Airport Terminal Station. The customers in Main Brook, Roddickton and St. Anthony distribution systems were planned to be supplied by the St. Anthony diesel plant. The outage occurred when TL261 tripped when disconnect switch L56T1 was opened. The trip is related to an issue with the line distance protection on TL261 operating when the St. Anthony Airport Terminal Station is disconnected from the grid, while the St. Anthony Diesel Plant is on line supplying customers in the St Anthony, Roddickton and Main Brook areas. A similar trip occurred on October 4. The problem with the line protection has been addressed to prevent further misoperations. On December 17, customers supplied by the Hawke s Bay Terminal Station experienced an unplanned power outage of 16 minutes. The outage occurred after a fault occurred during the energization of the Mobile Substation P235 at Hawke s Bay during planned work. A set of temporary transportation grounds were not removed from P235 prior to its energization. Planned On October 4, customers supplied by the Bear Cove Terminal Station experienced a planned power outage of 13 minutes. The outage was required to isolate transmission line TL244 to perform preventative maintenance on breaker B1L44 at Plum Point Terminal Station. On October 7, customers supplied by the Parson s Pond Terminal Station experienced a planned power outage of five hours and 16 minutes. The outage was required to perform preventative maintenance on equipment in the terminal station. Page E15

16 On October 18, customers supplied by the Wiltondale and Glenburnie Terminal Stations experienced a planned power outage of five hours. The outage was required to connect mobile substation P235 in Wiltondale in order to perform terminal station improvements. On November 1, customers supplied by the Jackson s Arm and Hampden Terminal Stations experienced a planned power outage of six hours and 17 minutes. The outage was required to perform preventive maintenance on equipment in the terminal stations. On November 2, customers supplied by the Jackson s Arm and Hampden Terminal Stations experienced a planned power outage of five hours and 36 minutes. The outage was required to complete preventive maintenance on equipment in the terminal stations. On November 3, customers supplied by the Cow Head Terminal Station experienced a planned power outage of five hours and 36 minutes. The outage was required to remove the high voltage leads on circuit breaker B1L27 in the terminal station. Working is continuing to replace this breaker. On November 5, customers supplied by the Rocky Harbour Terminal Station experienced a planned power outage of one hour and 11 minutes (71 minutes). The outage was required to obtain a dissolved gas analysis sample from transformer T1 in the station, in addition to the installation of a new pole on feeder L1 in the Rocky Harbour distribution system. On November 13, customers supplied by the Cow Head and Parson s Pond Terminal Stations experienced a planned power outage of five minutes. The outage was required to safely close bypass switch B1L27 BP at Cow Head Terminal Station. On November 16, all customers supplied by the Plum Point and Bear Cove Terminal Stations and customers supplied by feeder L2 in St. Anthony experienced a planned power outage of up to seven hours and 44 minutes. Customers in Main Brook, Roddickton, and St. Anthony feeders L1 and L3 were supplied via the St. Anthony Diesel Plant. The outages were required to perform preventative/corrective maintenance on circuit breaker B1L56, disconnect switch B1L44 and the BC6 R1 recloser structure at the Bear Cove station; and to perform preventative/corrective maintenance on circuit breaker B1L41, bypass switch B1L41 BP and disconnect switch B1T1 at the Plum Point station. In addition, the outage facilitated replacement of a pole on structure 405 on transmission line TL241. On November 22, NP customers supplied by the Sunnyside Terminal Station experienced a planned power outage of five hours and 45 minutes. The outage was required to complete corrective and preventive maintenance on disconnect switches on bus B3 at the terminal station. On December 2, customers supplied by the Wiltondale and Glenburnie Terminal Stations experienced a planned power outage of five hours and 51 minutes. The outage was required to disconnect the mobile substation P235 in Wiltondale and to energize the new Wiltondale Terminal Station. Page E16

17 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators Reliability KPI: Distribution a) System Average Interruption Duration Index (SAIDI) a reliability KPI for distribution service and it measures service continuity in terms of the averagee cumulative duration of outages per customer served during the year. In the fourth quarter of 2014, SAIDI was 2.56 hours per customer, compared to 5.01 hours per customer during the same quarter of The total 2014 SAIDI was hours per customer, compared to hours per customer in One of the main contributors to SAIDI was a series of planned outages in Labrador City and Wabush in the summer and fall of The planned outages in Labrador City were required to completee the voltage conversion project, while the Wabush planned outages were to complete upgrades at the Wabush Substation and for various distribution feeders b) System Average Interruption Frequency Index (SAIFI) reliability KPI for distribution service which measures the average cumulative number of sustained interruptions per customer per year. In the fourth quarter of 2014 SAIFI was 1.18, compared too 1.41 during the same quarter of The total 2014 SAIFI was 6.77, compared to 5.82 in 2013 and a target of 3.65 in Page E17

18 Quarterly Regulatory Report December 31, 2014 Appendix E Annual Report on Key Performance Indicators The outages during the fourth quarter resulted from a variety of causes. The following table presents a summary of the major interruptions. Distribution System Outage Date Outage Cause Customers Affected Outage Duration (Hours) Notes Labrador City Labrador City L'Anse Au Loup Oct 04, 2014 Oct 19, 2014 Oct 25, 2014 Sched Outage Planned Sched Outage Planned Adverse Weather Planned outage to safely perform voltage 4.00 conversion upgrades Planned outage to safely perform voltage 4.00 conversion upgrades 7.47 High Winds/Line damaged and required repairs Ramea Oct 31, 2014 Adverse Weather Phase wired burnt off and had to be re attached Rigolet Black Tickle Black Tickle Nov 08, 2014 Nov 19, 2014 Dec 25, 2014 Loss of Supply Defective Equipment Loss of Supply Problems with diesel generator. Power rotation Broken Conductor on feeder. Outage extended to due weather delay in getting extra crews on site. Severe icing on feeder caused problems on diesel plant. Outage extended to due weather delays In getting extra crews on site. Page E18

19 A summary of the more significant 2014 interruptions affecting the distribution systems (i.e., outages generally to a complete system with duration of greater than five hours) are contained in Appendix C c) Additional Information As per Hydro s regular quarterly report, this section provides more detailed information on distribution system interruptions with performance broken down by Area, Origin, and Type. Page E19

20 Rural Systems Service Continuity Performance by Area SAIFI (Number per Period) Area Fourth Quarter 12 Mths to Date 5 Year Average Central Interconnected Isolated Northern Interconnected Isolated Labrador Interconnected Isolated Total Note: System Average Interruption Frequency Index (SAIFI) is the average number of interruptions per customer. It is calculated by dividing the number of customers that have experienced an outage by the total number of customers in an area SAIDI (Hours per Period) Area Fourth Quarter 12 Mths to Date 5 Year Average Central Interconnected Isolated Northern Interconnected Isolated Labrador Interconnected Isolated Total Note: System Average Interruption Duration Index (SAIDI) is the average interruption duration per customer. It is calculated by dividing the number of customer outagehours (e.g. a two hour outage affecting 50 customers equals 100 customer outagehours) by the total number of customers in an area. Page E20

21 Rural Systems Service Continuity Performance by Origin Area SAIFI (Number per Period) Fourth Quarter 12 Mths to Date 5 Year Average Loss of Supply Transmission Loss of Supply NF Power Loss of Supply Isolated Loss of Supply L'Anse au Loup Distribution Total Note: System Average Interruption Frequency Index (SAIFI) is the average number of interruptions per customer. It is calculated by dividing the number of customers that have experienced an outage by the total number of customers. Area SAIDI (Hours per Period) Fourth Quarter 12 Mths to Date 5 Year Average Loss of Supply Transmission Loss of Supply NF Power Loss of Supply Isolated Loss of Supply L'Anse au Loup Distribution Total Note: System Average Interruption Duration Index (SAIDI) is the average interruption duration per customer. It is calculated by dividing the number of customer outage hours (e.g. a two hour outage affecting 50 customers equals 100 customer outage hours) by the total number of customers in an area. Page E21

22 Rural Systems Service Continuity Performance by Type 2014 Fourth Quarter Only Area Scheduled Unscheduled Total SAIFI SAIDI SAIFI SAIDI SAIFI SAIDI Central Interconnected Isolated Northern Interconnected Isolated Labrador Interconnected Isolated Total Note: 1. System Average Interruption Frequency Index (SAIFI) is the average number of interruptions per customer. It is calculated by dividing the number of customers that have experienced an outage by the total number of customers in an area. 2. System Average Interruption Duration Index (SAIDI) is the average interruption duration per customer. It is calculated by dividing the number of customer outage hours (e.g. a two hour outage affecting 50 customers equals 100 customer outage hours) by the total number of customers in an area. Page E22

23 3.1.4 Reliability KPI: Other a) Under Frequency Load Shedding (UFLS) reliability KPI that measures the number of events in which shedding of a customer load is required to counteract a generator trip. Customer loads are shed automatically depending upon the generation lost. There were four underfrequency events during the fourth quarter of 2014, summarized as follows: On October 13, Holyrood Unit 2 tripped. Hydro s investigation has concluded that the Holyrood Terminal Station (HRD TS) Unit #2 unit breakers (B2L42 & B2B11) tripped forcing Unit 2 offline. Hydro was conducting commissioning testing on the HRD TS Unit #1 unit breakers (B1L17 & B1B11) when the incident occurred. As part of the commissioning testing, a protection relay trip check was being performed on the Unit 1 unit breakers. The incorrect protection relay, the protection relay associated with Unit 2 unit breakers, was triggered. The incident and commissioning procedures have been reviewed to ensure a repeat of similar incidents is prevented. With the removal of generation (approximately 70 MW) the system frequency dropped to Hz resulting in the activation of the under frequency protection at Newfoundland Power. Total system load at the time of the incident was 730 MW. All Newfoundland Power customers were reported to be restored within four minutes after the event occurred. Load Shed: Newfoundland Power: 16 MW. (Unsupplied Energy: 65 MW Mins) On November 15, at 1621 hours, Holyrood Unit 2 tripped. Hydro s investigation has determined that part of the commissioning activities ongoing on Holyrood Unit 1 included control valve programming and testing. Completing this work required working on the Mark V Distributed Control System (DCS) which is common to both Units 1 and 2. Comparisons between Unit 1 and Unit 2 control valve programming were being checked when a test was initiated to stroke the valve on Unit 1. This test was accidentally initiated on Unit 2 causing the trip. The Unit 1 and Unit 2 distributed control system programming parameters are not distinguishable from each other at the programming level. The technologists mistakenly thought they were testing the Unit #1 parameters. Both the Hydro and the OEM contractor technologists are very familiar with this control system. Hydro has identified a failure to check/identify the task as the root cause. The outcomes of the investigation were reviewed with employees who may work inside the DCS to highlight the system limitations on naming convention. With the removal of generation (approximately 70 MW) the system frequency dropped to Hz resulting in the activation of the under frequency protection at Newfoundland Power. Total system load at the time of the incident was 964 MW. All Newfoundland Power customers were reported to be restored within 2 minutes after the event occurred. Newfoundland Power load loss: 15 MW (Unsupplied Energy: 30 MW Mins) Page E23

24 On December 19, at 0849 hours, Holyrood Unit 2 tripped. Hydro s investigation determined the trip was the result of loss of power to all eight of the unit s 4160V motors. The motors tripped due to the failure of a motor lug resulting in a fault which was detected by the overcurrent protection. This subsequently tripped the unit. With the removal of generation (approximately 72 MW) the system frequency dropped to Hz resulting in the activation of the under frequency protection at Newfoundland Power. Total Island load at the time of the incident was 1125 MW. All Newfoundland Power customers were reported to be restored within 2 minutes after the event occurred. Newfoundland Power load loss: 23 MW (Unsupplied Energy: 46 MW Mins) On December 30, at 2334 hours, Holyrood Unit 3 tripped. Hydro s investigation determined that the unit tripped because of a loss of atomizing steam going to the burner. Operations found two manual valves in the incorrect position (one 90% closed and one 100% closed). The unit controls operated correctly to adjust for a low aux steam pressure but the position of these valves resulted in the cut off of all atomizing steam. With the removal of generation (approximately 130 MW) the system frequency dropped to Hz resulting in the activation of the under frequency protection at Newfoundland Power, Hydro, and Corner Brook Pulp & Paper Limited. Total Island load at the time of the incident was 1370 MW. Hydro advised Newfoundland Power to begin customer restoration within 4 minutes of the incident. Relative to the time of the incident: all (919) Hydro customers were restored within 4 minutes; Corner Brook Pulp & Paper Limited was restored within 5 minutes; the majority (15,683) of Newfoundland Power customers were reported to be restored within 22 minutes; and the remaining (1299) Newfoundland Power customers were reported to be restored within 69 minutes. Load Shed: Newfoundland Power: 95 MW Hydro: 3 MW Corner Brook Pulp & Paper: 14 MW Total Load Shed: 112 MW (Unsupplied Energy: 1,664 MW Mins) In total, there were 14 UFLS events in 2014, compared to 7 in 2013 and the five year average ( ) of 5.6 events. Refer to the graph below which compares the UFLS events over the past five years to this year s performance. Page E24

25 Quarterly Regulatory Report December 31, 2014 Appendix E The following table compares the UFLS events in the fourth quarter of 2014 to the same quarterr in 2013 in addition to annual performance. Underfrequency Load Shedding Number of Events Customers NF Power Industrialss Hydro Rural* Total Events Fourth Quarter Year to Date 5 Year Average ( ) Underfrequency Load Shedding Unsupplied Energy (MW min) Customers Fourth Quarter Year to Date 5 Year Average ( ) NF Power 1, ,798 13, 917 4,713 Industrialss Hydro Rural* Total Events 1, ,046 14, 241 4,901 * 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. The details of the previous 10 UFLS events in 2014 are summarized in Appendix C3. Page E25

26 Quarterly Regulatory Report December 31, 2014 Appendix E 3.2 Operating Performance Indicators This section presents information on two indicators of operating performance, both of which are associated with generation Operating KPI: Generation a) Hydraulic Conversion Factor (Bay d Espoir) a representative performancee KPI for the principal hydroelectric generation assets located at Bay d Espoir. This KPI tracks the efficiency in converting water to energy and it is calculated as the ratioo of Net GWh generated for every one million cubic metres (MCM) of water consumed. In 2014, the hydraulic conversion factor for Bay d Espoir was GWh/MCM, compared to GWh/MCM compared to a 2014 target of GWh/MCM. In 2014, the water levels were lower in the reservoirs allowing for improved water utilization at the Bay d Espoir plant, as there were fewer hours where plant production was higher at less efficient output levels. Page E26

27 3.2.1 b) Thermal Conversion Factor a representative performance KPI for the oil fired thermal generation assets located at Holyrood. This KPI tracks the efficiency in converting heavy fuel oil into electrical energy and is measured as the ratio of the net kwhs generated to the number of barrels of No. 6 fuel oil consumed. The thermal conversion factor for Holyrood is proportional to the output level of the three units, with higher averages and sustained loadings resulting in higher conversion factors. The output level of the Holyrood Thermal Generating Station will vary depending on hydraulic production on the Island, quantity of power purchases, customer energy requirements and system security requirements. The thermal conversion factor is also impacted by the heating content in the No. 6 fuel consumed at the plant, measured in BTUs/bbl. In 2014, Hydro s net thermal conversion factor was 584 kwh per barrel compared to a 2014 target of 615 kwh per barrel. The lower energy conversion rate in 2014, relative to the target, is resulting from two primary factors: operating the units at a lower average output level due to the high volume of water resources on the Island and energy receipts relative to the system load requirements; and a low heating content in the No. 6 fuel consumed at the Holyrood generating station. The efficiency at the Holyrood plant has remained relatively consistent with a gross heat rate performance of 10,124 BTU/kWh in 2014 compared to 10,127 BTU/kWh in In 2014, the units were dispatched as required for Avalon transmission support and system peak load considerations. The average net unit load while operating was 83.2 MW, down from 87.6 MW in 2013 and a forecast of 92.3 MW for Overall, net production from Holyrood for 2014 was 1,315 GWh, a 37% increase from 2013 production levels and a decrease of 8% from the 2014 forecast. The production increase in 2014 relative to 2013 was related to operating one unit throughout the summer months in 2014 in order to support the transmission into the Avalon Peninsula, in addition to higher customer demand requirements during the winter and early spring period. Page E27

28 Quarterly Regulatory Report December 31, 2014 Appendix E Hydro's Thermal Conversion Factor {Holyrood) Page E28

29 3.3 Financial Performance Indicators 2014 Financial results are not available at this time. 3.4 Customer Related Performance Indicators a) Residential Customer Satisfaction an indicator of Hydro s residential customers overall satisfaction level with service, which is tracked by the Percent Satisfied Customers KPI 4. The Percent Satisfied Customers measure is also a corporate performance KPI that tracks the satisfaction of rural residential customers with Hydro s performance. The Percent Satisfied Customers measure is produced via an annual survey of Hydro s residential customers. The 2014 residential customer satisfaction survey shows that 84% of customers are either very satisfied or somewhat satisfied with Hydro. Overall Customer Satisfaction Redidential Customer Satisfaction As of 2009, the Customer Satisfaction index (CSI) is no longer being calculated as a Customer Related Performance Indicator. Page E29

30 Appendices Page E30

31 Appendix A: Rationale for Hydro s 2014 KPI Targets Reliability KPI Weighted Capability Factor Weighted DAFOR Transmission SAIDI, SAIFI, and SARI Distribution SAIDI & SAIFI Underfrequency Load Shedding Operating Hydraulic Conversion Factor Thermal Conversion Factor Other Customer Satisfaction Comment on KPI 2014 Target Hydro has adopted a target setting approach wherein known factors that affect reliability performance are incorporated into the target setting process wherever practical. This approach also uses percentage improvements and past performance levels to set target levels for continuous improvements. The 2014 target is set using the expected annual generation unit outage schedule combined with performance improvements relative to recent history. The 2014 target is set using the expected annual generation unit outage schedule combined with performance improvements relative to recent history. The 2014 targets for forced outage performance are set based upon recent performance improvements. The planned outage contribution to total performance is set using the annual transmission terminals maintenance outage plan. Improvements relative to the most recent five year average. The 2014 target is based upon improvement over the most recent five year average. Hold at the previous target value. The 2014 target is based on November 2013 budget for 2014 Holyrood plant operation. Targeting continuous improvement. Page E31

32 Appendix B: Computation of Weighted Capability Factor and Factors Impacting Performance Weighted Capability Factor is calculated using the following formula: Where, 1 all units unit total equivalent outage time unit unit hours unit MCR all units MCR MCR = Maximum Continuous Rating, the gross maximum electrical output, measured in megawatts, for which a generating unit has been designed and/or has been shown capable of producing continuously. MCR would only change if the generating capability of a unit is permanently altered by virtue of equipment age, regulation, or capital modifications. Such changes to MCR are infrequent and have not actually taken place within Hydro since the 1980 s when two units at Holyrood were uprated due to modifications made to these units. Unit hours = the sum of hours that a unit is in commercial service. This measure includes time that a unit is operating, shut down, on maintenance, or operating under some form of derating. Unit hours will only be altered in the infrequent event that a unit is removed from commercial service for an extended period of time. Unit total equivalent outage time = the period of time a unit is wholly or partially unavailable to generate at its MCR. For the purposes of calculating outage time, the degree to which a unit is derated is converted to an outage equivalency. Thus, a unit that is able to generate at 75% load for four days would have an equivalent outage time of one full day out of four. Factors that can affect unit total equivalent outage time are classified by CEA under nine categories, which are outlined in Appendix A to this Report. Hydro tracks the time that each unit spends in each of these nine states and calculates the weighted capability accordingly. Unit total equivalent outage time is the measure that is most likely to impact Weighted Capability Factor on a year to year basis, since MCR and unit hours are unlikely to change. Page E32

33 Appendix B: Computation of Weighted Capability Factor and Factors Impacting Performance (Cont d) Factors that Affect Unit Total Equivalent Outage Time 1. Sudden Forced Outage. An occurrence wherein a unit trips or becomes immediately unavailable. 2. Immediately Deferrable Forced Outage. An occurrence wherein a unit must be made unavailable within a very short time (10 minutes). 3. Deferrable Forced Outage. An occurrence or condition wherein a unit must be made unavailable within the next week. 4. Starting Failure. A condition wherein a unit is unable to start. 5. Planned Outage. A condition where a unit is unavailable because it is on its annual inspection and maintenance. 6. Maintenance Outage. A condition where a unit is unavailable due to repair work. Maintenance outage time covers outages that can be deferred longer than a week, but cannot wait until the next annual planned maintenance period. 7. Forced Derating. A condition that limits the usable capacity of a unit to something less than MCR. The derating is forced in nature, typically because of the breakdown of a subsystem on the unit. 8. Scheduled Derating. A condition that limits the usable capacity of a unit to something less than MCR, but is done by virtue of the decision of the unit operator. Scheduled deratings are less common than forced deratings, but can arise, for example, when a unit at Holyrood is derated to remove a pump from service. 9. Common Mode Outages. Common mode outages are rare, and arise when an event causes multiple units to become unavailable. An example might be the operation of multiple circuit breakers in a switchyard at Holyrood due to a lightning strike, rendering up to three units unavailable. Note: There are hundreds of CEA equipment codes for generator subsystems that track the cause for the time spent in each of the above categories. Page E33

34 Appendix C1: Significant Transmission Events 2014 There were 12 significant events in The details follow: Event 1 On January 4 at 0905 hours, transformer T1 at the Sunnyside Terminal Station faulted resulting in a fire. Circuit breaker B1L03 failed to isolate T1, and resulted in a trip of transmission lines TL203 and TL237, isolating the Avalon Peninsula from the remainder of the power system. This resulted in the interruption of the following generation: Holyrood Plant, Cat Arm Plant, Hinds Lake Plant, Granite Canal Plant, Upper Salmon Plant, Stephenville Gas Turbine, St. Anthony Diesel Plant, and Hawke s Bay Diesel Plant. (Unsupplied Energy: 158,954 MW Mins) The following table outlines the delivery point customer interruptions. Events on January 4, 2014 (09:05 hrs) Delivery Point Affected Start Time Finish Time Duration of Interruptions (mins) MW Load MW Mins Hardwoods 1/4/2014 9:05 1/4/2014 9: ,596 Oxen Pond 1/4/2014 9:05 1/4/ : ,067 Holyrood 39L 1/4/2014 9:05 1/4/ : ,320 Holyrood 38L 1/4/2014 9:05 1/4/ : ,771 Western Avalon 64L 1/4/2014 9:05 1/4/ : ,735 Western Avalon Bus B2 1/4/2014 9:05 1/4/ : ,780 Vale (Long Harbour) 1/4/2014 9:05 1/4/ : ,143 Sunnyside rural (T5) 1/4/2014 9:05 1/4/ : ,091 Sunnyside TL219 1/4/2014 9:05 1/4/ : ,445 Linton Lake 1/4/2014 9:05 1/4/ : ,985 Bay L'Argent 1/4/2014 9:05 1/4/ : ,653 Monkstown 1/4/2014 9:05 1/4/ : ,397 Duck Pond Mine 1/4/2014 9:05 1/4/ : ,923 Wiltondale 1/4/2014 9:05 1/4/2014 9: Glenburine 1/4/2014 9:05 1/4/2014 9: Rocky Harbour 1/4/2014 9:05 1/4/2014 9: Grandy Brook 1/4/2014 9:05 1/4/2014 9: St Alban's 1/4/2014 9:05 1/4/ : Conne River 1/4/2014 9:05 1/4/ : English Harbour West 1/4/2014 9:05 1/4/ : Barachoix 1/4/2014 9:05 1/4/ : Come By Chance T2 1/4/2014 9:05 1/4/ :18 N/A (BES: 253 mins) N/A N/A Totals 158,954 Page E34