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How OPGs Nuclear Operations Contribute to Meeting Ontarios Electricity Supply Bruce Boland Senior Vice President Corporate Affairs Ontario Power Generation.

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Presentation on theme: "How OPGs Nuclear Operations Contribute to Meeting Ontarios Electricity Supply Bruce Boland Senior Vice President Corporate Affairs Ontario Power Generation."— Presentation transcript:

1 How OPGs Nuclear Operations Contribute to Meeting Ontarios Electricity Supply Bruce Boland Senior Vice President Corporate Affairs Ontario Power Generation Ontario Power Summit June 14, 2006

2 Contents OPGs Nuclear Operations Ontarios Supply Outlook Ontario Govt. Response to OPA Supply Mix Advice Report Refurbishment New Nuclear OPGs Current Nuclear Performance Pickering A, Unit 1 Continuous Improvement Strategies Community and Employees

3 OPGs Nuclear Operations 10 nuclear units at three stations Pickering A in service: operating units –2 others in safe storage 1,030 MW Pickering B in service: units 2,064 MW Darlington in service: units 3,512 MW Nuclear = 30% of OPGs capacity, but 41% of our production (2005) OPG nuclear delivered almost 30% of Ontarios electricity (2005) Pickering A and B Darlington Nuclear GS

4 Ontarios Supply Outlook …the combination of demand growth and generation retirements would create a gap of roughly 24,000 MW by 2025, equivalent to about 80% of Ontarios current capacity. Ontario Power Authority, Supply Mix Advice Report, December 2005 Ontario needs between 20- and 25,000 MW of new supply and necessary transmission enhancements over the next years. Dave Goulding, IESO, January 2006 …250 MW of generation is required within the central Toronto area by the summer of 2008 to adequately address the risk to reliability of an aging transmission infrastructure…Present forecasts indicate that 500 MW of total capacity should be planned for summer, IESO Ontario Reliability Outlook, February 2006 IESO, Ontario Reliability Outlook, February 2006

5 Ontarios Supply Outlook (contd.) Ontario is a summer– peaking jurisdiction IESOs demand and supply assumptions have been revised Need for an additional 2,500 to 3,000 MW IESO, Ontario Reliability Outlook, June 2006

6 Ontario Govts. Response to OPA Supply Mix Advice Report Limiting nuclear to todays installed capacity of 14,000 MW OPG will be directed to undertake feasibility studies to refurbish units at Pickering & Darlington sites OPG will begin an EA very soon on the refurbishment of Pickering B units OPG will be directed to begin a federal approval process for new nuclear units at an existing facility Includes an environmental assessment

7 OPGs Nuclear Refurbishment/Life Extension OPG is assessing business case for refurbishment Pickering B and eventually Darlington OPGs Plant Life-Extension Projects Division created in February 2006 Refurbishment process includes: Completing of plant condition assessment for Pickering B in 2007 Beginning of an Environmental Assessment process Undertaking safety reviews required by CNSC Conceptual engineering for replacement of components – i.e, feeder tubes; fuel channels; steam generators OPG mgmt. makes recommendation to OPG Board Business case must be approved by OPG Board Pickering B (foreground) Darlington

8 New Nuclear OPG has extensive expertise in operating nuclear facilities and in earning regulatory approvals Darlington well suited as a potential site for new nuclear Strong performance of Ontarios nuclear plants remains a key driver for the industry Darlington Planned Outage, 2006

9 OPG Nuclear: 2005 Performance Highlights Darlington best performing multi-unit nuclear station in Canada -- 2nd consecutive year Four OPG nuclear units among 10 best performing CANDUS in 2005 Returned Pickering A, Unit 1 to service Pickering A receives Five Year licence from CNSC Decided not to return Pickering A, Units 2 & 3 to service Pickering A and B Darlington

10 Capability Factors Darlington Pickering B Pickering A OPG is Improving Its Nuclear Performance TWh Blackout Nuclear Units returning & reliability improving

11 is Also Improving Human Performance at its Nuclear Operations OPG is Also Improving Human Performance at its Nuclear Operations Event free-day resets are a key HP metric Events = human actions with negative consequences Fewer is better From 223 to 33 in four years – 84% reduction

12 Adds 515 MW to Ontarios electricity supply Returned to service Nov Project delivered on time and essentially on budget Performance 0.61 TWh 92.94% UCF Q Performance 1.07TWh 96.14% UCF An important achievement as OPG prepares for potential future refurbishment projects Pickering A, Unit 1 is Making an Important Contribution

13 OPG Nuclear Stations Have Specific Performance-Improvement Strategies Pickering A: Path to Excellence continue to improve plant reliability through improved equipment reliability, preventive maintenance, reduced backlogs successfully manage safe-storage of Units 2 and 3 Pickering B: 85/5 achieve and sustain 85% capacity factor and 5% forced loss rate by 2007 complete inspection & maintenance of all fuel channels (SLAR) move to 40 day outages Darlington: Navigator maintain performance as Canadas best performing multi-unit nuclear station through improved human performance improved plant condition move to 36-month outage cycle

14 Earning the Trust and Confidence of Communities is Essential to our Nuclear Operations OPG is much more than simply our most well-known corporate citizen…It's also one of our most generous corporate citizens. OPG gives back to our community in many ways, including the sponsoring of many city events, programs and initiatives. Pickering Mayor Dave Ryan, May 2006 The strong safety record and exceptional corporate citizenship demonstrated by OPG has given our community a very positive attitude toward nuclear technology, leading to high support for OPG operations in the host communities. [Durham] Regional Chair, Roger Anderson, June 2006 We are proud of the open and transparent relationship that we have with OPG. Clarington Mayor, John Mutton, June 2006 Pickering Neighbourhood Walk Participants, including OPG President Jim Hankinson Darlington Employees, Earth Day 2006 Local high school students who participated in charity bowling event with Darlington employees

15 Summary OPG nuclear provides about 30% of Ontarios energy needs OPG has improved its nuclear performance and will continue to do so Sustained, exceptional performance is key to our future success as a nuclear operator Community support and employee commitment help ensure our licence to operate Yesterdays announcement ….more to come Pickering Employees Darlington Employees

16 How OPGs Nuclear Operations Contribute to Meeting Ontarios Electricity Supply Bruce Boland Senior Vice President Corporate Affairs Ontario Power Generation Ontario Power Summit June 14, 2006


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