You are on page 1of 55

A REPORT TO

THE BOARD OF COMMISSIONERS OF PUBLIC UTIUTIES

Electrical
Mechanical
Civil
Protection & Control
Transmission & Distribution
Telecontrol
System Planning

UNIT 1TURBINE GENERATOR


MAJOR OVERHAUL
Holyrood Thermal Generating Station
July 2011

hyaro
a nalcor energy compaoy

Unit 1 Turbine Generator Major


Overhaul

1
2

Table of Contents
INTRODUCTION........................................................................................................................1
PROJECT DESCRIPTION................................................................................................................5
3.1
Age of Equipment or System.................................................................................9
3.2
Major Work and/or Upgrades .....................................................................10
3.3
Anticipated Useful life ...............................................................................12
3.4
Maintenance History .................................................................................15
3.5
Outage Statistics .......................................................................................16
3.6
Industry Experience ...................................................................................16
3.7
Maintenance or Support Arrangements ....................................................16
3.8
Vendor Recommendations .........................................................................16
3.9
Availability of Replacement Parts ................................................................17
3.10 Safety Performance ...................................................................................17
3.11 Environmental Performance .......................................................................18
3.12 Operating Regime ......................................................................................18
JUSTIFICATION........................................................................................................................20
4.1
Net Present Value ......................................................................................21
4.2
Levelized Cost of Energy ............................................................................21
4.3
Cost Benefit Analysis .................................................................................21
4.4
Legislative or Regulatory Requirements ......................................................21
4.5
Historical Information ................................................................................22
4.6
Forecast Customer Growth .........................................................................23
4.7
Energy Efficiency Benefits ..........................................................................24
4.8
Losses during Construction .........................................................................24
4.9
Status Quo ................................................................................................24
4.10 Alternatives ...............................................................................................24

CONCLUSION..........................................................................................................................25
5.1
Budget Estimate ........................................................................................25
5.2
Project Schedule .......................................................................................26
APPENDIX A............................................................................................................................. A1
APPENDIX B ............................................................................................................................. B1
APPENDIX C ............................................................................................................................. C1
APPENDIX D............................................................................................................................. D1
5

Newfoundland and Labrador Hydro

Newfoundland and Labrador Hydros Holyrood Thermal Generating Station is located


within the town of Holyrood and is an integral part of the Island Interconnected System.
The Generating Station itself (Figure 1) consists of three oil fired units capable of
producing a total capacity of 490 MW which is approximately 33 percent of the Island
Interconnected Systems installed capacity. Units 1 and 2 were commissioned in 1969
and 1970 respectively and Unit 3 in 1979. Units 1 and 2 were originally designed to
produce 150 MW, but were upgraded to 175 MW in 1988 and 1989 respectively. Unit 3
retains its original configuration and is rated at 150 MW. In 1986, Unit 3 was retrofitted
with synchronous condensing capability to provide voltage support on the eastern end of
the Island Interconnected System during periods when power generation from the
Holyrood station is not required.

Figure 1: Holyrood Thermal Generating Station


The three major components of the thermal generating process are the power boiler,
turbine and generator. Through combustion of No. 6 fuel oil, the power boiler provides
high energy steam to the turbine. The turbine is directly coupled to the generator and
Newfoundland and Labrador Hydro

Page 3

provides the rotating energy necessary for the generator to produce rated output power
to the Island Interconnected System. The turbine is a General Electric (GE) Lynn Model
D3 made up of three stages each designed to extract maximum energy from the high
pressure steam and in turn to provide maximum rotational energy to the generator. Each
turbine is constructed of three stages: a single flow high pressure section, a single flow
intermediate section (both in one high pressure-high temperature casing) and a separate
double flow low pressure section. The high, intermediate and low pressure stages of the
turbine rotor are built on a single shaft with solid couplings to form what is known as a
tandem compound, double flow, reheat turbine. Each stage is designed such that it
extracts energy from the supplied steam as efficiently as possible converting it into
rotational energy.
The electrical generator is coupled to the steam turbine and converts the rotating energy
into electrical power. The generator itself is a General Electric (GE) 194 MVA two pole unit
rotating at 3600 rpm to produce 3 phase, 0.9 power factor, 60 cycle, 16,000 volt energy at
its stator terminals. It is pressurized and cooled by hydrogen gas to provide maximum
efficiency both in heat transfer and windage losses.
The generator has two basic components; a rotational excitation field and three
stationary stator coils. The rotational field, through magnetic coupling, induces a high
voltage into the stationary stator coils. The stator coils are connected via a step-up
transformer to the main Holyrood terminal sub-station and then to the Island
Interconnected System. The turbine generator (T/G) assembly is approximately 80 feet
in length and 24 feet in diameter and is shown in the accompanying photos (Figures 2,
3, and 4) in both its assembled and disassembled states. The turbine is designed to
operate using high energy steam at approximately 14,000 Kpa pressure and 500 C
temperature. The generator operates at approximately 16,000 Volts and 7,000 Amps
when providing full load (175 MW) to the island power grid.

Figure 2: Unit 1 Turbine Generator Assembled

Figure 3: Unit 1 LP Turbine Disassembled

Figure 4: Unit 1 HP/IP Turbine Disassembled

PROJECT DESCRIPTION

The scope of work for the project is to perform a scheduled major overhaul of
Unit 1 turbine generator and auxiliary systems located at the Holyrood Thermal
Generating Station.

Unit 1 turbine generator (Serial Number 940310 and 980485 respectively) was designed
and built by General Electric. The turbine itself is constructed of special metal alloys to
withstand the extreme temperatures and pressures and must conform to very close
tolerances in order to convert the steam energy as efficiently as possible. The generator
is subjected to significant electrical and magnetic stresses while providing megawatt and
megavar loading for the Island Interconnected System. The generator stator windings
have increased forces and loading induced upon them during severe system events. Unit
1 is no exception and encounters numerous power grid faults and swings in load during
system events. To ensure that these units operate at peak performance and provide
maximum energy on demand, it is necessary that they undergo major overhauls on a
scheduled basis to return the equipment to design specification. The last major overhaul
took place in 2003 and was completed by General Electric. In their report they noted that
the generator testing showed signs of electrical and mechanical wear and
recommended that this be investigated in a more indebt level during the next major
overhaul. (Appendix A)

This major overhaul consists of a total dismantling of all turbine stages, removal of the
generator rotor, and internal inspections of all systems including auxiliary equipment.
The work is mainly completed by contracted services with assistance from plant
personnel where and when required. The contracted work consists of technical services,
labour, materials and supervision. Plant support is required for work protection
application and services, parts procurement, removal of specific monitoring and control
systems, overall contract management, and technical liaison with Hydros management
personnel.

The work consists of three types: Routine Standard Work (Appendix B) that is defined
by the equipment manufacturer, Defined Work which is extra to the standard work and
identified prior to the overhaul, and the Unforeseen Work which may result from
examination of the equipment during the internal inspection. The Contractor is
responsible to schedule and complete the standard and defined work within the
specified overhaul period. The unforeseen work and repair schedule is determined in
consultation with Newfoundland and Labrador Hydro. A major overhaul requires
approximately 12 weeks to complete with work crews working two shifts. Unforeseen
work coupled with transportation costs due to out of province repairs could alter the
schedule and have a significant effect on the overall cost. In addition to the major
overhaul, a minor overhaul is performed every three years wherein the turbine generator
control and stop valves and related auxiliary equipment are refurbished. The minor
overhaul work is included as part of the work schedule for the nine year major overhaul.

For many years the North American standard for major turbine generator overhauls was
based on a six year cycle. This frequency was in agreement with the original equipment
manufacturers guidelines and was acceptable to the utility industry in general. In the
late 1990s, in an effort to reduce operating costs, utilities began scrutinizing their turbine
generator major overhauls, and in particular the six year schedules, to determine the
viability of extending the overhaul frequency. Following comprehensive reviews, the
utility industry, in general, endorsed the findings which resulted in the major overhauls
being extended from the traditional six years to a nine year frequency.

In 2003, Hydro undertook a similar initiative and contracted Hartford Steam Boiler
Inspection and Insurance Company (HSB) to review its turbine generator operation
using their proprietary Turbine Outage Optimization Program (TOOP) to determine if
Holyrood could extend its current overhaul program to a longer interval. All aspects of
the turbine generator were reviewed (design, construction, historical experience,
operation, maintenance, inspections and monitoring). Their findings were detailed in
separate reports

which included risk ranking, outage extension calculations, conclusions and


recommendations. The reports concluded that all three units could extend their major
overhauls from the previous six year to a nine year frequency provided some upgrading
and repairs were completed and instrumentation installed to enhance the existing
turbine monitoring program. (Appendix C). Hydro completed an analysis of the reports
and determined that the upgrades and improved monitoring required to extend the major
overall frequency was warranted as a cost savings measure without jeopardizing the
safe and reliable operation of either unit. The necessary upgrades were completed for
all three units and the maintenance plan for major overhauls revised to the nine year
frequency.

In January 2010, AMEC Americas Limited (AMEC) was contracted by Newfoundland


and Labrador Hydro to conduct a Phase 1 Condition Assessment and Life Extension
Study of the Holyrood Generating facility. This was a non-intrusive assessment
concentrating mostly on historical data, maintenance reports, operations logs, existing
maintenance and inspection plans and reviews with operations staff. Their investigation
took a year to complete with a finalized report delivered to Holyrood management in
March 2011 (Appendix D). The study agrees with the 2003 TOOP report to extend the
major overhaul schedule for the turbine to the nine year frequency but recommends that
overhauls on the generators revert back to the six year interval. This specific
recommendation will be further reviewed by Hydro before a final decision is made. The
AMEC study also agreed with the 2003 General Electric (GE) recommendation to
complete a more indebt inspection of Unit 1 generator during the next major overhaul
with a follow-up plan to recondition both the rotor and stator if required.

The first major overhaul since the nine year extension decision is scheduled for Unit 1 in
2012. Its last major overhaul was completed in 2003. Over the past eight years (2003
2011), Unit 1 has seen 38,674 operating hours or 4.42 unit years, and approximately 14
unit starts per year. Operating hours are low in comparison to industry standard hours
for that period but the number of starts would be considered high and is one of the

governing factors in any major overhaul schedule. This overhaul is necessary to inspect
the turbine

components for wear, to inspect the generator for its electrical and mechanical condition,
and to inspect all auxiliary equipment. This major overhaul is also the first under the
extended maintenance plan and it will provide valuable data on the effects of a longer
operating period.

EXISTING SYSTEM

3.1

Age of Equipment or System

Unit 1 turbine generator was installed and commissioned in 1969. In 1988 its maximum
continuous rating (MCR) output was increased from 150 MW to 175 MW.
The Unit 1 operating hours to the end of February 2011 were 171,951. Assuming the
generator operates for approximately 5,000 hours per year until 2012, it is expected to
attain approximately 179,000 hours before the next major inspection in 2012. Due mainly
to system requirements, the unit has averaged about 14 starts per year which when
projected to 2012 will total about 126 for the nine year operating period. This is
significant when compared to similar operations and has an overall negative effect on the
turbine generators condition.

Following industry standards, Unit 1 has undergone scheduled major and valve overhauls
on a one year frequency starting in 1969, increasing to a three and a four year frequency in
the 1970s and major overhauls increased to a six year frequency from the mid 1980s to
2003. In 2007 Unit 2 turbine experienced an unscheduled overhaul to replace a damaged
st

1 stage nozzle block in the HP section. A remedial action from that event saw Unit 1
st

turbine being dismantled in 2009 under a scheduled overhaul to inspect its 1 stage nozzle
block. It was found to be cracked but the peripheral damage had not migrated to the
same degree as Unit 2. A follow-up investigation determined that the nozzle block
installed during the turbine upgrade in 1988 by GE was substandard. A GE redesigned
nozzle block was installed on both units.

Table 1 shows Unit 1 and plant performance for a five year period (2005-2009).

Table 1 Holyrood Unit 1 and Plant Performance


Five Year
All Causes
Average 2005Capability
2009
Factor
DAFOR
(%)
Failure Rate
Unit
(%)
Holyrood Unit 1

59.24

23.19

14.05

Holyrood Plant

60.04

14.43

9.69

CEA (2005-2009)

74.74

10.31

8.91

Capability Factor is defined as unit available time. It is the ratio of the unit's
available time to the total number of unit hours.
DAFOR is defined as Derated Adjusted Forced Outage Rate. It is the ratio of
equivalent forced outage time to equivalent forced outage time plus the total
equivalent operating time.
Failure Rate is defined as the rate at which the generating unit encouters a
forced outage. It is calculated by dividing the number of transitions from an
Operating state to a forced outage by the total operting time.

3.2

Major Work and/or Upgrades

The following upgrades have occurred since Unit 1 was installed:

Newfoundland and Labrador Hydro

Page 13

Year

Table 2 - Unit 1 Turbine Generator - Major Upgrades


Major Work

2009

Redesigned 1 stage nozzle block installed

2009

Fast dump of generator hydrogen installed;

2008

Stator winding ground fault protection improved.

2008

Boroscope Inspection of the turbine (1 stage) nozzle block

2003

Hydrogen dryer and purity meter replaced;

st

st

Newly designed stator slot ripple springs installed and


end- winding support system re-tightened;
Defective RTD repaired;
Digital multi-functional generator protection relay installed
2003

(for improved winding ground protection, alarms


connected, and sequence of events);
New Mark V Governor
Four new cold gas RTDs in stator installed;
Realigned hydrogen seal housing and rotor shaft

2000
1997

line.
GE static exciter and AVR replaced;
New 18 %Mn/18 %Cr retaining rings;
Partial discharge monitoring installed - stator windings.

1988

Up-rated from 174.160 MVA at 30 psi hydrogen pressure, to

to 92

194.445 MVA at 45 psi hydrogen pressure;


Retaining rings polished and NDE inspected in situ.

1969
to 2003

Major overhauls occurred on a 6 year schedule and minor


overhauls (valves) on a 3 year schedule. Major overhauls
continued after 2003 on a 9 year frequency and minor
overhauls on a 3 year frequency.

3.3

Anticipated Useful life

Holyroods Unit 1 turbine and generator were depreciated over a 40 year period (1969 2009). However, in its 2010 Holyrood condition assessment report, AMEC concluded
that Unit 1 turbine has a reliable remaining life in the order of twenty years (to 2020),
provided that sufficient inspection and testing is performed during the 2012 major
overhaul and remedial action taken as required. AMEC also concluded that Unit 1
generator has a reliable remaining life in the order of five years (to 2015) due to the
condition of the stator windings. Replacement of the stator windings will be required to
extend the generator life beyond that date.

The life cycle curves for Unit 1 turbine generator (as presented in the AMEC report) are
illustrated in Figures 5 and 6. The curves plot the historic and projected operating hours
for equipment over time. They have several vertical lines representing different nominal
age limits for various components and several horizontal lines that represent a range of
practical operating-hour life limits based on historical information and expert opinions.
The risk boxes provide an indication of potential issues either from an age or operatinghour perspective. The two early risk areas for the turbine are the high pressure and
intermediate pressure valves beyond 2010 and the low pressure turbine beyond 2015.
The two risk areas for the generator are the stator winding beyond 2015 and the rotor
winding and cores beyond 2025. The major overhaul scheduled for 2012 will extend the
turbine remaining life to the desired 2020 End of Life (EOL) date. The major risk factor
for the generator is the stator rewind which will be covered under a separate capital
budget proposal.

Unit 1 Turbine Generator Major


Overhaul

350000

1 970 + 30
Years - HP,
IP, & L P

300000

250000

200000

1970+ 40
Year s
-HP, IP,
LP

4 0 Years
800 0 Hr s/
Yr Maxi
mum

198 8+30
Years - H P
& IP

1988+ 40
Year s - HP &
IP

Risk Are-a
LP Tur bi
ne

3 0 Years
800 0 Hr s/
Yr N ormal
Maxi mum

Ri sk Ar e-a
HP/IP T urbi
ne
Risk Ar
ea- HP &
IP
Valv
es;
SSR

200,000 H rs
Nom inal
End of Life

HP 1969 Equip

HP 1988 Equip

I P 1 969 E quip

I P 1988 E quip

150000

LP 1969 Equip

LI FE LOW E R
LI FE UP PE R
100000

LI FE M AX

50000

19 70

1 97 5

1 98 0

19 8 5

19 90

1 99 5

20 0 0

20 05

2 0 10

2 01 5

20 2 0

20 25

2 03 0

20 3 5

20 40

Year

Figure 5Unit 1 Turbine Life Cycle Curves

Newfoundland and Labrador Hydro

Page 16

400000

30 Years

40 Years

Next
Overhau
l

350000

Generation
(Gen) Hrs

300000

Ho
ur
s
of
Lif
e
Us

Lif e
Maximu
m

Risk Area Rotor Winding,


Cores

250000

Rewind Unit 1
Max
Recommended

Synchr.
Condensin
g (SC) Hrs

LIFE LOWER
Risk Area Stator Winding

200000

LIFE UPPER
Rewind Unit 1
Recommende
d

LIFE MAX
150000

30 Years
100000

40 Years

50000

0
1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

Figure 6 Unit 1 Generator Life Cycle Curve

2025

2030

2035

2040

Unit 1 Turbine Generator Major


Overhaul

3.4

Maintenance History

The 20 year maintenance history for Unit 1 turbine generator is shown in Table 3 below.
The major overhaul cost for each of the years 1992, 1997 and 2003 is a total of the
standard, defined and unforeseen work for those years. Escalation in the costs of the
standard and defined work is mainly due to increases in contractual labour rates. The cost
of any unforeseen work however is somewhat unknown until the T/G has been dismantled
and internal inspections performed. Turbine valves provide primary protection for the
turbine and are overhauled every three years. In 2009 the turbine nozzle block was replaced
as a remedial action following a failure on Unit 2 in 2007.

Table 3: Unit 1 Twenty-Year Maintenance History


Year

2012

Major
Overhaul Cost
($000)
3,500
(Estimated)

Valve Overhaul Cost


($000)

Unscheduled
Maintenance
Costs ($000)

Included in major
overhaul

Total
Maintenance
Cost ($000)
3,500
(Estimated)

645
nozzle block

2009
2009

525

525

2006

353

153

2003

2,404

Included in major
overhaul

2000
1997

262
1,600

Included in major
overhaul

1994
1992

111
559

Included in major
overhaul

Newfoundland and Labrador Hydro

2,404
262
1,600
111
559

Page 18

3.5

Outage Statistics

Other than the scheduled major overhauls outlined in Table 3, which also includes the
st

2009 overhaul to inspect the 1 stage nozzle block, there were no other documented
outages for Unit 1 turbine generator.

3.6

Industry Experience

For many years the North American standard for turbine and generator major overhauls
was based on a six year cycle. This frequency was in agreement with the original
equipment manufacturers guidelines and was acceptable to the utility industry in
general. In an effort to reduce operating costs, utilities began to scrutinize turbine
generator major overhauls, in particular the six year cycle, to determine the viability of
increasing the cycle time. Following comprehensive reviews performed both internally,
and also by external experts in the field, many North American utilities accepted
recommendations to extend the time between overhauls from the traditional six years
nine.

3.7

Maintenance or Support Arrangements

Prior to 2011 General Electric had been contracted by Hydro under a maintenance
services agreement to perform all major and minor overhauls on its Holyrood turbine
generator units. In 2011, Hydro retendered its requirement for another three year
period. Plant personnel assist the service contractor when required, oversee the work
protection application, and provide overall management and liaison for the overhaul
work.

3.8

Vendor Recommendations

For many years turbine generator major overhauls in North America were scheduled

mainly around a six year frequency. However some utilities scheduled their overhauls at
reduced

frequencies of three to four years. Since its installation Unit 1 has undergone scheduled
major and valve overhauls on a 1 year frequency starting in 1969, increasing to a three
and a four year frequency in the 1970s and for major overhauls a six year frequency
from the mid 1980s to 2003. In the 1990s following deregulation, most utilities further
extended major overhauls to the accepted nine year frequency.

In 2003, Hydro contracted Hartford Steam Boiler (HSB) to investigate the possibility of
extending the traditional major overhaul interval. HSB recommended that a 9 year
frequency be implemented. Hydro accepted their recommendation and revised the
major overhaul schedule to the extended frequency. The OEM for Units 1 and 2,
General Electric, did not formally document their opinion but verbally indicated that they
did not endorse the 6 year overhaul frequency. The AMEC Condition Assessment and
Life Extension study completed in 2011 agreed with the 2003 TOOP (HSB) report to
extend the major overhaul schedule for the turbine to the nine year frequency but
recommended that overhauls on the generator revert back to the six year interval.

3.9

Availability of Replacement Parts

The availability of replacement parts from the original T/G manufacturers (General Electric
and Hitachi) has not been an issue to date. There has not been any correspondence from
either of these OEMs that parts will not be available into the foreseeable future. GE as well
as the other large generator manufacturers can provide replacement parts designed
specifically for the Holyrood units and can provide reverse engineering and delivery times
suitable to meet major overhaul schedules.

3.10

Safety Performance

Unit 1 turbine operates at very high steam flows which combined with high pressures
and temperatures contribute to the wear and tear of internal components. The
combined T/G

weight is approximately 60 tons, it is 80 feet in length, and rotates at 3600 rpm requiring
specific speed governing and tripping mechanisms to eliminate any possibility of overspeed. The generator itself operates at high voltages and uses hydrogen gas as a
coolant both requiring special containment mechanisms to prevent exposure to
personnel and the environment. Maintenance of these systems is vital to ensure the
units safety performance and as such forms part of the major overhaul criteria. There
are, however, no specific safety performance regulations or codes requiring
compliance.

3.11

Environmental Performance

Environmental performance details are not factors to be considered for this capital
budget proposal. There are no specific environmental regulations or codes requiring
compliance.

3.12

Operating Regime

Unit 1 is designed for continuous operation with varying loads but is typically operated
as a seasonally base-loaded unit (November to March) to meet island system
requirements. All three generating units at Holyrood provide about 33% of the Island
Interconnected System load during the crucial winter peak period. Maintenance outages
are taken during the summer months when its capacity is not required. Unit 1 has been
operating in this mode, within design capability, since it was commissioned in 1969.

The anticipated operational schedule for Unit 1 during the period 2011 to 2041 is shown
in the following table:

Table 4: Holyrood Generating Station Anticipated Mode of Operation 2011 through


2041
2011 through 2013 - Generation:
Capacity factor between 30% and 75%; Availability of 90% to 95%.
2014 through 2016 - Generation:
Capacity factor between 50% and 100%; Availability of 95%.
2017 through 2019 - Generation Standby:
Capacity factor less then 10%; Availability of 90% to 95%.
2020 Onward - Synchronous Condenser Mode:
Synchronous Condenser Operation Capacity factor (MVAR only) 50% to 100%.
Availability of 95%.

Unit 1 turbine generator will continue as a generating unit with an increased operating
regime until sometime after 2016. It is planned to retrofit the unit in 2017-2018 so it can
also operate as a synchronous condenser for system VAR support.

JUSTIFICATION

This is a normal project that is justified on the requirement to maintain the generating
equipment in its optimal operating condition for Hydro to provide safe, least-cost, reliable
electrical service to its customers. The purpose of the major overhaul is to return the T/G
and auxiliary systems to design specifications such that they can perform safely, efficiently,
and reliably to meet island system demands until the next major overhaul. It will also
identify any unusual findings (internally or externally) that if not corrected or controlled
could lead to premature failure of the equipment.

Since the installation of Unit 1 in 1969, major overhauls of the T/G and auxiliaries have
been performed on a scheduled basis that reflected industry standards. They ranged
from a 1 year frequency in 1969 to a 6 year frequency prior to 2003. As noted
previously, Holyrood contracted Hartford Steam Boiler (HSB) in 2003 to investigate the
possibility of extending the traditional overhaul interval as a cost saving measure. The
AMEC Condition Assessment and Life Extension study completed in 2011 agreed with
the 2003 TOOP (HSB) report to extend the major overhaul schedule for the turbine to
the 9 year frequency but recommended that overhauls on the generator revert back to
the 6 year interval. The manufacturer (GE), in their 2003 report (FRS-No: 20350670),
has identified some 50 recommendations to be completed during or immediately prior to
the next major overhaul of Unit 1 T/G (Appendix A). Based on their conclusions and
recommendations, and Holyroods implementation of their findings, the next major
overhaul of Unit 1 will be in 2012 (9 year interval).

Holyrood supplies approximately 33 percent of the Island Interconnected Systems


capacity and is particularly important due to its location on the Avalon Peninsula close to
the large customer base. A loss of Unit 1 generation during high load requirements could
have a significant impact on the Island Interconnected Systems ability to meet load
demand.

Newfoundland and Labrador Hydro

Page 24

In previous years Hydro used the Generally Accepted Accounting Principles (GAAP)
guidelines for budgeting major unit overhauls and as such expenses were deemed an
operating and maintenance cost which formed part of Holyroods operating,
maintenance and administration (OM&A) budget. In 2012, Hydro will implement the
International Financial Reporting Standard (IFRS) accounting guidelines which direct all
major overhauls to be financed through capital expenditure. Prior to 2012 all Unit 1
major overhauls have been completed on a scheduled basis consistent with industry
standards and have been included in Holyroods 10 year plan for Projected Operating
Maintenance Expenditures.

4.1

Net Present Value

A net present value calculation was not performed as there are no viable alternatives.

4.2

Levelized Cost of Energy

As this project does not involve new generation sources , a levelized cost of energy analysis
is not applicable.

4.3

Cost Benefit Analysis

A cost benefit analysis is not required for this project. There are no alternatives other
than to delay the major overhaul which based on the manufacturers (GE) reports,
independent expert reviews, and operations experience would not be acceptable.

4.4

Legislative or Regulatory Requirements

There are no legislative or regulatory requirements that would make this capital budget
proposal necessary.

4.5

Historical Information

As noted previously, since 1969, major overhauls of Unit 1 T/G and auxiliaries have
been performed on a frequency basis that matched industry standards ranging from a 1
year frequency in 1969 to a 6 year frequency prior to 2003. Minor overhauls (valves)
have taken place on a 3 year frequency and is typically included in the 6 year major
overhaul schedule. Holyrood contracted Hartford Steam Boiler (HSB) in 2003 to
investigate the possibility of extending the traditional 6 year major overhaul frequency
as a cost saving measure. Based on their conclusions and recommendations, and
Holyroods implementation of their recommendation to extend the major overhaul cycle
to 9 years, the next major overhaul of Unit 1 will take place in 2012.

Under the previously followed GAAP guidelines, the costs of all major overhauls were
completed under Holyroods operating and maintenance budget. Table 5 details costs
incurred for major overhauls on all units since 1992. The major overhaul costs for each of
the years 1992 to 2007 is a total of the standard, defined and unforeseen work for those
years. Escalations in the cost of the standard and defined work are mainly due to increases
in contractual labour rates. The cost of any unforeseen work however is unknown until the
turbine generator has been dismantled and internally inspected. Note that the $3,297,000
cost of Unit 3 in 2007 was escalated due to extra repairs noted by General Electric in their
2001 overhaul report. The primary cause was exfoliation carry-over from the power boiler.

Year
2007
2005
2003
2001
1999
1997
1994
1993
1992

Table 5: Maintenance History All Units


Unit
Type of Overhaul
3
Major
2
Major
1
Major
3
Major
2
Major
1
Major
3
Major
2
Major
1
Major

Costs ($ 000)
3,297
2,609
2,404
2,381
1,849
1,600
1,262
1,287
559

Appendix 2 of Plan of Projected Operating Maintenance Expenditures 2011 2020 for


Holyrood Generating Station Tab 1 from the 2011 Capital Application listed the Turbine
Major Overhaul at a cost of $2,081,000. The increase to $4.2 million is due to the
following:

The original amount reflected the cost of a six year overhaul versus a nine year
overhaul which is more extensive due to three more years of wear and tear. This
is estimated to be approximately $3.2 million. In addition, the original $2.1 million
had not been adjusted in recent years to reflect recent increases in material and
external labour costs.

Internal labour costs are not included in the system equipment maintenance cost.
This is approximately $0.3 million.

4.6

Interest and contingency have resulted in $0.7 million in increased costs.

Forecast Customer Growth

This project is required to maintain Unit 1 turbine generator in optimal condition to


provide safe, least-cost, reliable electrical service to Hydros existing customers.
Forecasted Customer Growth is not a consideration.

4.7

Energy Efficiency Benefits

This project will not provide any energy efficiency benefits other than to restore the T/G
to its optimal performance condition.

4.8

Losses during Construction

Not applicable for this capital budget proposal.

4.9

Status Quo

Status Quo is not an acceptable option for this project. A major overhaul is a
requirement to maintain the T/G and auxiliary equipment in optimal operating condition
in order for Hydro to provide safe, least-cost, reliable electrical service to its customers.
Industry standards, manufacturers recommendations, and consultants reports all
deem these major overhauls to be required.

4.10

Alternatives

There are no alternatives to this project other than to delay the major overhaul which
based on the manufacturers (GE) reports, independent expert reviews, and operations
experience would not be acceptable.

CONCLUSION

This project is justified on the requirement to maintain the generating equipment in its
optimal operating condition for Hydro to provide safe, least-cost, reliable electrical service
to its customers. The purpose of the major overhaul is to return the T/G and auxiliary
systems to design specifications such that they can perform safely, efficiently, and reliably
to meet system demands until the next major overhaul. It will also identify any unusual
findings (internally or externally) that if not corrected or controlled could lead to premature
failure of the equipment and a significant unplanned unit outage.

There are no alternatives to this project other than to delay the major overhaul which
based on the manufacturers (GE) reports, independent expert reviews, and operations
experience would not be acceptable.
5.1

Budget Estimate

The budget estimate is shown in Table 5.

Project Cost:($ x1,000)


Material Supply
Labour
Consultant
Contract Work
Other Direct Costs
Interest and Escalation
Contingency
TOTAL

Table 5: Budget Estimate


2012
2013
350.0
0.0
257.1
0.0
0.0
0.0
2,850.0
0.0
0.0
0.0
395.2
0.0
340.8
0 .0
4,193.1
0.0

Beyond
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Total
350.0
257.1
0.0
2,850.0
0.0
395.2
340.8
4,193.1

5.2

Project Schedule
Table 6: Project Schedule
Activity

Milestone

Pre-shutdown Checks

May 2012

Mobilize

June 2012

Dismantle turbine, Generator, valves, and June/July 2012


auxiliary equipment
Equipment inspection

June/July 2012

Equipment repairs

July/August 2012

Assemble turbine, generator, valves, and August 2012


auxiliary equipment
Operational checks

August 2012

Demobilize

September 2012

Unit 1 Turbine Generator Major Overhaul


Appendix A

APPENDIX A
General Electric Major Overhaul Report - Frs Number
20350670 Unit 1 Steam Turbine Inspection Report May
September 2003

Newfoundland and Labrador Hydro

A3
1

Newfoundland and Labrador Hydro

A40

Unit 1 Turbine Generator Major Overhaul


Appendix B

APPENDIX B
Unit 1 Major Overhaul
- Turbine Generator Standard Overhaul Work

Newfoundland and Labrador Hydro

B4
6

Turbine Generator Major


Overhaul Standard Outage
Work:
A. Generator
1.

Pre-shutdown Checks

(5 Days)

2.

Mobilize

(4 Days)

3.

Remove Lagging

(3 Days)

4.

Disassemble Generator

(15 Days)

5.

Inspection

(10 Days)

6.

Electrical Tests (Stator & Rotor)

(5 Days)

7.

Visual Inspection

(2 Days)

8.

Assemble Generator

(25 Days)

9.

Excitation Inspection

(3 Days)

10.

Assemble Lagging

(4 Days)

11.

Pre-start and Operational Checks

(5 Days)

12.

Demobilize

(5 Days)

B. Steam Turbine
1.

Pre-shutdown Checks

(5 Days)

2.

Mobilize

(6 Days)

3.

Remove Lagging

(5 Days)

3.

Disassemble Turbine (HP/IP/LP)

(20 Days)

4.

Disassemble Valves (Main Stop/Control,

(20

Days) Reheat Stops/Intercepts & NonReturn Valves)


5.

Bearing Inspection including Thrust

(5 Days)

B. Steam Turbine (contd)


6.

Turbine Controls (Actuators, Hydraulics)

(7 Days)

7.

Lube Oil System

(10 Days)

8.

Turning Gear

(6 Days)

9.

Steam Seal System

(5 Days)

10.

Turbine Supervisory Instrumentation

(6 Days)

11.

Assemble Turbine

(25 Days)

12.

Assemble Valves

(20 Days)

13.

Install Lagging

(6 Days)

14.

Pre-Start and Operational Checks

(5 Days)

15.

Demobilize

(6 Days)

Unit 1 Turbine Generator Major Overhaul


Appendix C

APPENDIX C
Hartford Steam Boiler (Hsb)
Turbine Steam Optimization Program
(TOOP)

Newfoundland and Labrador Hydro

C4
9

Unit 1 Turbine Generator Major Overhaul


Appendix D

APPENDIX D
Amec Condition Assessment And Life Assessment Study

Newfoundland and Labrador Hydro

D5
1