FortisBC 2011 Capital Expenditure Plan August 4, 2010 Kelowna, BC - PDF document

F ORTIS BC – 2011 C APITAL E XPENDITURE P LAN E XHIBIT B-2 FortisBC 2011 Capital Expenditure Plan August 4, 2010 Kelowna, BC 2011 Capital Expenditure Plan • 9:00 Opening Remarks Joyce Martin • 9:10 Overview System Development Plan / Integrated System Plan / 2011 CEP Overview Overview Paul Chernikhowsky Paul Chernikhowsky • 9:30 Generation Ian Finke • 9:55 Stations Tim Richter • 10:15 BREAK • 10:25 Distribution Gary Williams • 10:45 Transmission/Telecommunications Paul Chernikhowsky • 11:30 General Plant Tim Swanson • 12:00 LUNCH • 12:45 2009/10 Capital Plan Operational Improvements Marko Aaltomaa • 1:05 Demand Side Management Mark Warren • 1:45 Final Submission Process Ludmila Herbst • 2:00 WRAP-UP Joyce Martin 2

System Development Plan & Integrated System Plan Overview Overview Paul Chernikhowsky August 4, 2010 Kelowna, BC Director, Engineering Services System Planning Overview • Why We Need A Plan? y • Current Plan Created in 2004 • Minor Updates Annually • 2005 SDP Projects either completed or underway completed or underway 2 1

SDP Station Projects Completed: • Nk’Mip (East Osoyoos) Substation • Big White Substation • Ellison Substation • Black Mountain Substation • Arawana Substation • Kettle Valley Project • Ootischenia Substation In progress: In progress: • Benvoulin Substation • Distribution Substation Automation Program • Okanagan Transmission Reinforcement Project 3 2012 Integrated System Plan Transmission / Distribution + Generation + General Plant + Demand Side Management + Resource Plan = 2012 ISP To be filed in 2011 4 2

CEP Overview 2011 Plan Future ($million) Generation 18.7 5.3 Transmission & Stations 28.3 - Distribution 23.6 - Telecommunications 7.1 - General Plant 13.6 - Plant & Equipment 91.3 5.3 Demand Side Management D d Sid M t 5.8 5 8 - Subtotal (Additions) 97.1 5.3 Cost of Removal 6.2 0.0 TOTAL EXPENDITURES 103.3 5.3 Annual Operating Savings ($000s) 128 283 Note: 2011 CEP - Table 1.1, page 6 5 CEP Summary of Expenditures 2011 Plan Future ($million) TOTAL EXPENDITURES 103.3 5.3 Previously Approved 37.1 3.8 CPCN to be Submitted 0 0 Remainder (for approval) R i d (f l) 66 2 66.2 1.5 1 6 3

CEP Overview Approval Category Requested ($millions) Generation 2.5 Transmission & Stations 12.3 Distribution 23.6 Telecommunication 5.6 General Plant 13.0 Plant & Equipment Plant & Equipment 57 0 57.0 Demand Side Management 5.8 Subtotal (Additions) 62.7 Cost of Removal 3.4 66.2 TOTAL EXPENDITURES 7 Historical Expenditures by Category 180 Plant & Equipment 160 6 yr avg. = $115M 140 120 $ millions 100 $91.3M 80 60 40 0 20 - 2005 2006 2007 2008 2009 2010 2011 Generation Distribution Transmission P&C General DSM COR 8 4

2011 Capital Expenditure Plan Questions / Comments 5

2011 Generation Ian Finke August 4, 2010 Manager , Generation Kelowna, BC FortisBC Generating Plants Corra Linn Corra Linn Upper Bonnington Lower Bonnington Kootenay Canal (BCH) South Slocan 2 1

Generation Projects 1 Major Projects Approval to 2010 2011 2012 Total 2 ($000s) South Slocan Unit 1 3 G-52-05 15,777 41 - 15,818 Life Extension Corra Linn Unit 1 Life 4 G-147-06 13,505 2,433 - 15,938 Extension Corra Linn Unit 2 Life 5 C-5-09 3,248 12,373 3,464 19,085 Extension Generating Plants 6 Upgrade Station G-147-06 3,324 1,309 378 5,011 Service Supply Upper Bonnington 7 - 610 1,010 1,620 Spill Gate Rebuild Subtotal Major 8 35,854 16,766 4,852 57,472 Projects Note: 2011 CEP - Table 2.1, page 13 3 Corra Linn Unit 2 ULE • Estimated 2011 expenditures - $12 373 million $12.373 million • Low cost energy for customers • Longer term reliability • Longer term reliability • Estimated annual increase of 8.2 GWh 4 2

Generating Plants Station Service Supply • Reliability • Estimated 2011 expenditures - expenditures - • Environmental $1.309 million 5 Upper Bonnington Spill Gate Rebuild • Run of the river dam • Spill gates built in 1940 • Prevent dam overtopping during P t d t i d i flood conditions • Project driver is dam safety 6 3

Upper Bonnington Spill Gate Rebuild • 2 gates, 40,000 lbs each • 2011 - $0.61 million - Cut stop log slots to provide isolation • 2012 - $1.010 million Refurbish gates 7 Generation Small Sustaining Minor Projects Approval To 2010 2011 2012 Total ($000s) South Slocan Plant 9 - 243 - 243 Automation 10 South Slocan Fire Panel - 266 - 266 Lower Bonnington and 11 Upper Bonnington Plant - 86 85 171 Totalizer Upgrade Lower Bonnington 12 Powerhouse Plant - 351 344 695 Windows All Plants Minor 13 13 - - 957 957 - - 957 957 Sustaining 15 Subtotal Minor Projects 1,903 429 2,332 Note: 2011 CEP - Table 2.1, page 13 8 4

South Slocan Plant Automation Temperature Temperature Wireless Wireless Pressure Plant PLC Generation Historian Historian Vibration Smart Trend Motor Humidity Samples 9 Overload Lower Bonnington Powerhouse Windows • Estimated at $0.695 million over two years • Driven by safety and operations • Driven by safety and operations • Originally installed in 1925 • Necessary for plant temperature control 10 5

LBO and UBO Plant Totalizers • Estimated project value $0.171 million • Existing equipment is obsolete • Required to as part of Canal Plant agreement From old to new 11 Generation Small Projects UBO Extension Powerhouse Crane Upgrade - $0 241 million Crane Upgrade - $0.241 million All Plants Powerhouse Crane Brakes - $0.231 million 12 6

Upgrade and Life Extension Program Schedule Plant Upper Lower South Corra Linn Bonnington Bonnington Slocan Units Unit 5 ULE Units 1 & 2 ULE Unit 1 & 3 LE Unit 3 LE Completed Unit 3 LE Unit 6 LE Unit 2 ULE 2011 Schedule Unit 1 LE 2012 Schedule Unit 2 ULE Total Units 2 3 3 3 13 2011 Generation Questions / Comments 7

2011 Stations F.A. Lee Tim Richter August 4, 2010 Maintenance Planner Kelowna, BC 2011 Stations Sustaining 2011 Plan ($000s) ($000s) Station Condition Assessment & Minor 913 Projects Station Urgent Repairs 676 Lambert 230 kV Switch Replacement 535 OKM Load Tap Changers Upgrade 681 Addition of Arc Flash Detection to 538 Legacy Metal-Clad Switchgear TOTAL STATIONS SUSTAINING 2,662 2 1

Station Condition Assessments & Minor Planned Projects • Annual assessments conducted • Minor Planned Projects drivers: Minor Planned Projects dri ers • Safety, Environment, Reliability • Cascade Computerized Maintenance Management System (CMMS) • Project & station deficiency lists • Expenditures of $0.913 million in 2011 Fruitvale 3 Station Urgent Repairs • Repair of station equipment • Damage caused by: • Damage caused by: • Severe Weather • Vandalism and Theft • Animals • Unexpected equipment failure • Expenditures of $0.676 E dit f $0 676 million in 2011 Waterford 4 2

OKM Load Tap Changer Upgrade • Reliability • September 2009 outage • 2010 Maintenance • High industry failure rate • Failures disruptive • Expenditures of $0.621 million in 2011 illi i 2011 OK Mission 5 Lambert 230kV Switch Replacement • Reliability driven • Reliability driven replacement • Installed 1976 • Parts unavailable • Unreliable • 7,000 customers • Expenditures of $0.535 E dit f $0 535 million in 2011 A.A. Lambert 6 3

Add Arc Flash Detection to Legacy Metal-Clad Switchgear Arc Flash • Passage of current through air • Passage of current through air • Explosive • High heat and pressure Arc Flash Detection • Safety driven • Fast tripping • Minimize equipment damage q p g • Expenditures of $0.538 million in 2011 OK Mission 7 8 4

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2011 Stations Questions / Comments 6

2011 Distribution Projects Gary Williams August 4, 2010 Manager , Network Services Kelowna, BC Distribution Growth 1 Approval 2011 2012 Total 2 ($000s) 3 GROWTH 4 New Connects - System Wide 10,581 10,581 5 Distribution Growth Projects - - 6 Unplanned Growth Projects 948 948 7 TOTAL GROWTH 11,529 11,529 Note: 2011 CEP - Table 4.1, page 35 2 1

Distribution Sustaining Approval 2011 2012 Total 8 SUSTAINING ($000s) 9 Distribution Urgent Repair 2,274 2,274 Distribution Line Condition 10 938 938 Assessment 11 Distribution Line Rehabilitation 2,331 2,331 12 Distribution Line Rebuilds 1,783 1,783 Distribution Right-of-Way 13 578 578 Reclamation Distrib tion Pine Beetle Ha ard Tree Distribution Pine Beetle Hazard Tree 14 1,913 1,913 Removal 15 Small Planned Capital 802 802 16 Forced Upgrades and Line Moves 1,456 1,456 17 TOTAL SUSTAINING 12,075 12,075 Note: 2011 CEP - Table 4.1, page 35 3 Distribution Sustaining • Condition Assessment • Rehabilitation • Rebuilds 4 2