CI Number: ACE CI Page 1 of 9. Title: Metro Voltage Support - Add Capacitor Bank

Transcription

1 216 ACE CI Page 1 of 9 CI Number: Title: Metro Voltage Support Add Capacitor Bank Start Date: 215/6 InService Date: 216/12 Final Cost Date: 217/6 Function: Transmission Forecast Amount: 3,373,511 DESCRIPTION: This work order provides the cost for design, supply, and installation of 5 MVAR capacitor banks, complete with breaker and associated protection, on the 138 kv busses at Sackville (9H) and Lakeside (13H) substations. The purpose of this project is to increase the transfer limit on the Onslow South transmission corridor into the metro Halifax load centre. It will allow oil and natural gas fired generation in Halifax to be incrementally displaced by more economic power from coal plants in Eastern Nova Scotia or from New Brunswick imports. This is the first phase of investment to address transmission system restrictions that limit the uneconomic dispatch of Tuft s Cove generation. Five additional capital items, listed in Summary of Related CIs, will be submitted in 216. Summary of Related CIs +/ 2 years: 216 CI 4825 L718 Upgrade to 345kV & Capacitor 21,55, CI 4822 Spider Lake Substation Addition 6,354, CI H Sackville: Capacitor Bank Addition & L61/L65 Breaker Upgrades 3,857, CI H Lakeside: Capacitor Bank Additions & L63 Breaker Upgrades 3,236, CI 4826 L633/L635 CT Ratio Changes at 1H Water St. 5,516 Depreciation Class: Transmission Equipment Substation Estimated Life of the Asset: 4 Years JUSTIFICATION: Justification Criteria: Transmission Plant Why do this project? Tuft s Cove generation in the metro Halifax area supplies reactive power to support steady state voltages during the combination of high transfer levels on the Onslow South transmission corridor and high system load (greater than 16 MW). This isn t a concern when the Tuft s Cove fuel (gas or oil) is comparable to other fuel sources in the system, as these units would be dispatched economically. However, Tuft s Cove is occasionally required to be dispatched in order to provide reactive power capability in the metro Halifax area. Some of the reactive power is used for steady state voltage support while the rest is counted towards the reactive reserve which is needed for dynamic voltage support (required in the event of a transmission line trip). In this scenario, when gas or oil prices are higher than other fuel sources in the system, the cost of running Tufts Cove is uneconomic. By installing capacitor banks, reactive power requirements to support steady state voltage from Tuft s Cove generators can be reduced. Additional static reactive power sources will release dynamic reactive power from generators and the Brushy Hill SVC. This additional reactive power can be counted towards reactive power reserve needed during contingency. In this way, higher Onslow South transfer can be achieved with reduced Tuft s Cove Generation. Another benefit of using capacitor banks over synchronous condensers is that capacitors banks have much lower real power losses. Date Revised: December 9, 215 Page 618 of 966 REDACTED

2 216 ACE CI Page 2 of 9 Why do this project now? System study has shown that, 1 MVAR of reactive power located on the power system south of Onslow substation increases the Onslow South corridor transfer capability by 79 MW. A study using the system planning simulation model Plexos has concluded that a reduction in mustrun Halifax based generation improves the economics of system dispatch. Why do this project this way? Alternative A Do Nothing : This is a status quo option. There is no investment and no benefit. NPV is zero. Alternative B Install 5MVAR CAP Banks at both Sackville and Lakeside substations : This is the economic option the capital investment avoids incremental uneconomic dispatch fuel costs at Tuft s Cove. Please refer to the corresponding Economic Analysis Model. Using the Plexos model, the optimum size of capacitor bank that would minimize the fuel cost was found to be 1 MVAR. Upgrading to higher than 1 MVAR will not have further significant fuel savings. NS Power transmission planning engineers consider the maximum size of a single capacitor bank in the metro area to be 5 MVAR for all possible operating conditions. Capacitor banks larger than 5 MVAR would change the system voltage significantly causing adverse impact on voltage sensitive customer equipment. More than two capacitor banks smaller than 5 MVAR each and totaling 1 MVAR would increase the capital investment significantly. Hence, it was decided to install two capacitor banks of size 5 MVAR each. Five 138 kv substations in the metro were considered. It was found that Sackville and Lakeside substations can each accommodate a 5 MVAR capacitor bank. Physical space was a concern at other substations considered. Date Revised: December 9, 215 Page 619 of 966 REDACTED

3 CI Number : 46587T856 Metro Voltage Support Add Capacitor Project Number T ACE CI Page 3 of 9 Parent CI Number : Cost Centre : 8 8Services Admin. Budget Version 216 ACE Plan Capital Item Accounts Acct Actv Account Activity Forecast Amount Amount Variance 92 92Vehicle T&D Reg. Labour AO 114, , Interest Capitalized 99,521 99, COPS Regular Labour AO 171, , COPS Contracts AO 182, , Materials 3 TP Bldg.,Struct.Grnd. 127, , COPS Contracts 3 TP Bldg.,Struct.Grnd. 382,62 382, T&D Regular Labour 22 TP Elec Contr.Equip. 22,25 22, Materials 22 TP Elec Contr.Equip. 124,2 124, COPS Contracts 22 TP Elec Contr.Equip. 48, 48, Materials 23 TP Power Equip.Station S 23,2 23, COPS Contracts 23 TP Power Equip.Station S 12,16 12, T&D Regular Labour 43 TP Substn Dev. 3,45 3, Materials 43 TP Substn Dev. 1,6,14 1,6, COPS Contracts 43 TP Substn Dev. 256,88 256, Rental and Maintenance of 43 TP Substn Dev. 1,5 1, T&D Regular Labour 85 Design 12,137 12, Travel Expense 85 Design 1,88 1, COPS Contracts 85 Design 92, 92, Other Goods & Services 85 Design 255,79 255, T&D Regular Labour 86 Commissioning 111,2 111, Travel Expense 87 Field Super.& Ops. 2,8 2, COPS Contracts 87 Field Super.& Ops. 83,28 83, Meals & Entertainment 87 Field Super.& Ops. 12, 12, Consulting 88 Survey/Mapping 74,25 74,25 Total Cost: Original Cost: 3,373,511 3,373,511 Date Revised: December 9, 215 Page 62 of 966 REDACTED

4 216 ACE CI Page 4 of 9 Capital Project Detailed Estimate Location: Transmission CI# : Title: Metro Voltage SupportAdd Capacitor Bank Execution Year: 216 Description Unit Quantity Unit Estimate Total Estimate Cost Support Reference Completed Similar Projects (FP#'s) Electrician Engineering & Project Support Technologists 1 Regular Labour PD ,65 PD ,137 PD ,25 SubTotal 239,37 Travel to Site 11 Travel Expense Lot 1 4,68 4,68 SubTotal 4,68 Structural Steel Grounding Materials Protection Panels / Control Cables Distribution Panels 138kV Switches, Insulators, Circuit Breakers & Reactors Capacitor Banks Concrete Foundations / Conduit / Fencing Control Cable Installation Dist. Panel Installation 138kV Equip. Installation Field Supervision Electrical Field Supervision Civil Survey and Mapping Project Management 12 Materials Lot 1 111, 111, Lot 1 16,847 16,847 Lot 1 124,2 124,2 Lot 1 23,2 23,2 Lot 1 64,14 64,14 Ea 2 21, 42, SubTotal 1,335, Contracts Lot 1 382,62 382,62 Lot 1 48, 48, Lot 1 12,16 12,16 Lot 1 256,88 256,88 hr ,48 hr ,8 Lot 1 4, 4, hr , SubTotal 874,94 Engineering Design 28 Consulting Hrs ,25 SubTotal 74,25 Boom Truck Rental 33 Rentals Lot 1 1,5 1,5 SubTotal 1,5 Meals during Construction 41 Meals & Entertainment Lot 1 12, 12, SubTotal 12, Contingency 66 Other Goods & Services % 1% 2,55, ,79 SubTotal 255,79 Vehicle T&D Labour Regular AO Vehicle T&D Labour Overtime AO 92 Vehicle Overhead 94 Interest Capitalized 114,767 SubTotal 114,767 99,521 SubTotal 99, Administrative Overhead COPS T&D Labour Regular AO COPS Contract AO Project Support Regular AO 171, ,217 SubTotal 353,35 SUBTOTAL (no AO, AFUDC) TOTAL (AO, AFUDC included) 2,85,874 3,373,511 Original Cost 724,751 Note 1: The labour figures noted above are an average of salaries across a variety of jobs within similar classifications including fringe, and are used solely for budgeting purposes. Note 2: Small differences in totals are attributable to rounding. Date Revised: December 9, 215 Page 621 of 966 REDACTED

5 216 ACE CI Page 5 of 9 Metro Voltage Support Add Capacitor Banks Summary of Alternatives Division : Transmission Planning Date : 3Dec15 Department : T&D Engineering CI Number: Originator : Project No. : Alternative After Tax WACC PV of EVA / NPV Rank (based on PV of RR) IRR Disc Pay A 1 MVAR Capacitor Bank 6.11% 25,88,327 19,125, % 1.3 years B Test % 2 #NUM!. years C Test % 2 #NUM!. years D Test % 2 #NUM!. years Recommendation : Based on the analysis, installing these two capacitor banks is a more economical option due to the avoided fuel costs. Notes/Comments : 1 MVAR Capacitor Bank This option compares the proposed option of installing two capacitor banks with a "do nothing" option. The revenue shown represents fuel savings from avoided outofmerit generation due to system constraints. By removing these constraints, NS Power is able to generate electricity at a less costly generating station. The annual avoided fuel costs are estimated at 3,394,93, which was calculated through NS Power's generation modelling tool, Plexos. Test 2 Test 3 Test 4 Date Revised: December 9, 215 Page 622 of 966 REDACTED 3/12/215

6 216 ACE CI Page 6 of 9 Metro Voltage Support Add Capacitor Banks Summary of Sensitivities Division : Transmission Planning Date : 3Dec15 Department : T&D Engineering CI Number: Originator : Project No. : Alternative After Tax WACC PV of EVA / NPV Rank IRR Disc Pay A 1 MVAR Capacitor Bank 6.11% 25,88,327 19,125, % 1.3 years B Test % 2 #NUM!. years C Test % 2 #NUM!. years D Test % 2 #NUM!. years Alternative Variance on Capital Spend Variance (%) PV of EVA / NPV Rank IRR Disc Pay A 1 MVAR Capacitor Bank 1% 25,613,6 18,9, % 1.4 years B Test 2 1% 2 #NUM!. years C Test 3 1% 2 #NUM!. years D Test 4 1% 2 #NUM!. years Change: A 267, , %.1 years B #NUM!. years C #NUM!. years D #NUM!. years Alternative Variance on Avoided Expenses Variance (%) PV of EVA / NPV Rank IRR Disc Pay A 1 MVAR Capacitor Bank 1% 25,88,327 19,125, % 1.3 years B Test 2 1% 2 #NUM!. years C Test 3 1% 2 #NUM!. years D Test 4 1% 2 #NUM!. years Change: A.%. years B #NUM!. years C #NUM!. years D #NUM!. years Alternative Variance on Avoided Expenses Change in Revenue Delay? Yrs Delay: A 126,635 2,976,96 5,543,463 No B No C No D No Date Revised: December 9, 215 Page 623 of 966 REDACTED 3/12/215

7 216 ACE CI Page 7 of 9 Metro Voltage Support Add Capacitor Banks Avoided Cost Calculations Division : Transmission Planning Date : Department : T&D Engineering CI Number: Originator : Project No. : 3Dec MVAR Capacitor Bank Avoided Replacement Energy Costs Avoided Unplanned Repair Costs Total Annual Avoided Costs Year Replacement Energy Cost (/MWh).. Repair Cost () Events/Outages (#) Probability of Occurance (%) % % % % Capacity Factor (%) 1% 1% Energy Replaced (MW).. Duration (Hours) Totals Total Capital Cost of Alternative 3,373,511 Test 2 Avoided Replacement Energy Costs Avoided Unplanned Repair Costs Total Annual Avoided Costs Year Replacement Energy Cost (/MWh).. Repair Cost () Events/Outages (#) Probability of Occurance (%) % % % % Capacity Factor (%) 1% 1% Energy Replaced (MW).. Duration (Hours) Totals Total Capital Cost of Alternative Test 3 Avoided Replacement Energy Costs Avoided Unplanned Repair Costs Total Annual Avoided Costs Year Replacement Energy Cost (/MWh).. Repair Cost () Events/Outages (#) Probability of Occurance (%) % % % % Capacity Factor (%) 1% 1% Energy Replaced (MW).. Duration (Hours) Totals Total Capital Cost of Alternative Test 4 Avoided Replacement Energy Costs Avoided Unplanned Repair Costs Total Annual Avoided Costs Year Replacement Energy Cost (/MWh).. Repair Cost () Events/Outages (#) Probability of Occurance (%) % % % % Capacity Factor (%) 1% 1% Energy Replaced (MW).. Duration (Hours) Totals Total Capital Cost of Alternative Date Revised: December 9, 215 Page 624 of 966 REDACTED

8 216 ACE CI Page 8 of 9 Metro Voltage Support Add Capacitor Banks 1 MVAR Capacitor Bank Operating Avoided Applicable Year Total Revenue Costs Expenses Capital CCA UCC CFBT Taxes CFAT PV of CF Discount Factor CNPV 215 (12,51.8) (12,51.8) (12,51.8) (12,51.8) 1. (12,51.8) ,455.4 (2,547,813.2) 12,31.8 2,577,962.9 (2,46,357.8) (12,221.3) (2,418,579.2) (2,279,313.1).94 (2,381,815.) 217 3,394,93. (255,79.4) 216,37.4 2,595, ,139,85.6 (985,373.) 2,154, ,913, (468,311.1) 218 3,394, ,2.8 2,376, ,394,93. (99,737.4) 2,44, ,12, ,544, ,394, ,82.6 2,174, ,394,93. (995,672.7) 2,399, ,892, ,436, ,394, , ,989, ,394,93. (1,,213.2) 2,394, ,78, ,216, ,394, , ,819, ,394,93. (1,4,39.4) 2,39, ,674, ,891, ,394, , ,662, ,394,93. (1,8,233.4) 2,386, ,575, ,467, ,394, , ,518,39.2 3,394,93. (1,11,769.) 2,383,161. 1,482, ,95, ,394,93. 12, ,385,69.6 3,394,93. (1,15,21.7) 2,379,98.3 1,395, ,345, ,394, ,13. 1,263, ,394,93. (1,18,14.3) 2,376, ,313, ,659, ,394,93. 12,132. 1,151,29.2 3,394,93. (1,2,767.4) 2,374, ,236, ,895, ,394,93. 93, ,47, ,394,93. (1,23,3.3) 2,371, ,164, ,59, ,394,93. 86, , ,394,93. (1,25,63.5) 2,369, ,95, ,155, ,394,93. 79, , ,394,93. (1,27,774.3) 2,367, ,31, ,187, ,394,93. 73, , ,394,93. (1,29,746.6) 2,365, , ,159, ,394,93. 67, , ,394,93. (1,31,561.2) 2,363, , ,74, , , , , , ,81, , , , , , ,87, , , , ,249. 5, ,92, , , , , , ,97, , , , , , ,11, , , , , , ,14, , , , ,64.7 2, ,17, , , ,79.4 1,79.4 2, ,11, , , , , , ,112, , , ,64.4 9,64.4 1, ,114, , , , , , ,116, , , , , , ,117, , , ,58.4 7,58.4 1, ,118, , ,483. 6, , , ,12, , , , , ,12, , , , , ,121, , , ,56.6 5, ,122, ,6.6 49,35.4 4,652. 4, ,123, , , , , ,123, ,71.6 2, , , ,124, , , , , ,124, ,75.6 (4,474.1) 3, , ,124, ,89.6 (15,351.) 3,66.1 3, ,125, ,99.3 (25,357.7) 2,82.8 2, ,125,441.9 Total 51,65,45.4 (2,95,394.5) 2,71, ,16,1.9 (14,992,893.9) 33,167, ,125,441.9 Date Revised: December 9, 215 Page 625 of 966 REDACTED

9 ,, 1,, 15,, 2,, 25,, 3,, COMPARATIVE CUMULATIVE REVENUE REQUIREMENT 1 MVAR Capacitor Bank Test 2 Test 3 Test 4 Year Date Revised: December 9, 215 Page 626 of 966 REDACTED 216 ACE CI Page 9 of 9