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OPG Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Page 1: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

OPG Regulated Facilities Payment Amounts

Tom MitchellChief Nuclear Officer

Nuclear

Stakeholder Meeting #1November 2, 2007

Nuclear Business Overview

Page 2: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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1. Nuclear facilities

2. Business Overview

I. Performance

II. Programs

III. Risks

3. Nuclear Refurbishment & New Build

Presentation Outline

Page 3: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Nuclear Generating Stations – Base loadPickering A & B

Pickering A2 X 542 MW gross

Date in-service: 1971 to 1973

Units 1 & 4 in-service

Units 2 & 3: shut down & being placed into safe storage

Pickering B4 X 540 MW gross

Date in-service: 1983 to 1986

4 units in-service

Darlington 4 X 935 MW gross

Date in-service: 1989 to 1992

4 units in-service

Bruce A & B Owned by OPG but leased to Bruce Power

Six Units in operation, two being refurbished

OPG operates nuclear waste site

On a steady state basis the output from OPG’s 10 units at PA, PB and DN is expected to produce in the range of 50-51 TWh / year.

Page 4: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Technology While there are major design and operating differences CANDU vs typical US (PWR & BWR) reactors – there are also differences in Pickering A (PA), Pickering B (PB) and Darlington (DN) reactors reflecting different generations of design –mostly in improved containment design, computers & safety systems.

Components Pickering A

Pickering B

Darling -ton

PWR (900MW)

BWR(500MW)

ReactorHorizontal

pressure tubes

Horizontal pressure

tubes

Horizontal pressure

tubesPressure

vesselPressure

vessel

Reactor coolant and associated systems Heavy water Heavy water Heavy water Light water Light water

Generator Output 540MW 540MW 900MW 900MW 500MW

Steam Generators (SG)/unit 12 12 4 3 NA

Main Coolant Pumps/unit 16 16 4 3 2

Large Isolation valves Main Circuit 40/unit 40/unit 0 0 4/unit

Standby Generators & EPG’s 6 fo r 4 units 8 for 4 units 6 for 4 units 2/unit 2/unit

Computers/unit 2 2 8 0 0

Shut Down Systems/unit 2 2 2 1 1

On line Fuelling Machines 8 for 4 units 8 for 4 units 6 for 4 units NA NA

H -3 Removal Facility 0 0 1 NA NA

Heat Transport System Carbon steel Carbon steel Carbon steel Stainless Stainless

Page 5: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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CANDU Technology

Heavy Water ModeratorHeavy Water Moderator Heavy Water HeatTransport System

SteamSteam WaterWater

CANDU Pressurized Heavy Water ReactorCANDU Pressurized Heavy Water ReactorCANDU Pressurized Heavy Water Reactor

Pressure ReliefDuct and Valves

Vacuum Building

Dousing Sprays

Dousing Tank

Pressure ReliefDuct and Valves

Vacuum Building

Dousing Sprays

Dousing Tank

CoolingWater

Condenser

CondensateExtractionPump

FeedPump

Powerhouse Switchyard

GENERATOR

TURBINE

CoolingWater

Condenser

CondensateExtractionPump

FeedPump

Powerhouse Switchyard

GENERATOR

TURBINE

Calandria

Reactor

Reactor Building

STEAMGENERATORS

FUELLINGMACHINES

PUMPS

COOLING

Calandria

Reactor

Reactor Building

STEAMGENERATORS

FUELLINGMACHINES

PUMPS

COOLING

Page 6: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Organization [1]CHIEF NUCLEAR OFFICER

STATION OPERATIONS

Pickering A

Pickering B

Darlington

NUCLEAR SUPPORT

Nuclear Supply Chain

Nuclear Programs and Training- Radiation Protection- Training - Facilities and Administration- Security

Engineering and Modifications- Safety Analysis- Specialized Engineering - Projects

- Nuclear Safety- Operations and Maintenance- Planning and Control- System and Equipment Engineering- Environment- Nuclear Regulatory Affairs

(Canadian Nuclear Safety Commission)- Business Support

Performance Improvement and Oversight

[1] NUCLEAR GENERATION DEVELOPMENT AND SERVICES (NGD&S) PROVIDES SUPPORT (INSPECTION AND MAINTENANCE SERVICES) TO STATION OPERATIONS. ALL NGD&S COSTS INCLUDED IN NUCLEAR BASE OM&A

Page 7: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Federal

Canadian Nuclear Safety Commission (CNSC) – all nuclear construction requirements, equipment, safety systems, security, operating limits, licences, security, emergency response, decommissioning and waste management are subject to CNSC approval. The requirement to meet nuclear safety regulations and standards is imposed by the Federal Nuclear Safety and Control Act (NSCA).

Environmental legislation includes the Canadian Environmental Protection Act, the Fisheries Act and the Canadian Environmental Assessment Act.

Provincial/Municipal

OPG is subject to provincial and municipal legislation including the Ontario Energy Board Act, the Electricity Act, the Environmental Protection Act, and the Ontario Water Resources Act, etc.

Regulatory Framework

Page 8: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Key Characteristics impacting Operations

SAFETY in terms of Nuclear and worker safety is the highest priority – hence the processes to operate, maintain our plants are highly prescriptive. Our plants are major industrial facilities with large sources of mechanical and electrical energy, process steam and chemicals. In addition, we have radioactive materials and radiation sources. All of these require stringent measures in the form of administrative controls and protective equipment for our workers. Safety practices are subject to frequent audits and industry reviews. Facility Security is also a major component of the business.

COMPLEXITY plants are technologically sophisticated facilities, with a large number of Nuclear safety and process systems, and a high level of redundancy for critical components within the plant.

MATERIALS used in the plant are subject to very high quality and stringent standards and pedigree, especially those used to handle high pressure radioactive materials.

TRAINING - OPG hire staff with special skills and provide extensive, ongoing training. There are extensive requirements which are CNSC mandated for nuclear operators and certain maintainers.

Page 9: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Nuclear Objectives

Continued focus on high Safety performance

Continued improvements in Human Performance by addressing leadership and demographics/knowledge transfer issues.

Improving Plant performance from Reliability improvement through material condition enhancements and outage efficiencies.

Value for Money - getting the right work and parts to the line to improve efficiency (supply chain improvements) and reducing infrastructure costs

Page 10: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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2007 Performance and Near Term Plan

Darlington:DN’s recent operational performance has been outstanding . DN ranks high among CANDU reactors and other nuclear reactors world-wide, e.g. high Nuclear Performance Index (a standard industry measure of good, sustainable performance) and in recent WANO (World Association of Nuclear Operators) assessment.

Recent achievements include completion of major component work (e.g. steam generators, feeders and turbines) and industry leading implementation of three-year outage cycle mode.

Major work ahead is execute vacuum building outage in 2009.

Pickering A:PA return to service successfully addressed several regulatory and safety concerns with very large scale modifications.

Performance in 2007 impacted by emerging issues and reliability remains a concern.

Page 11: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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2007 Performance and Near Term PlanPickering A (Cont’d):

Major work ahead:– Complete the Safe Storage Project on Units 2/3.

– Assess and resolve reliability issues and execute major component programs (feeder, turbines).

– Plan the vacuum building outage in 2010.

Pickering B:PB has completed major fuel channel inspection campaigns, safetymodifications (fire and environmental qualification), and reliability improvements.

Major work ahead to achieve and sustain target capacity factors in the mid 80s and Forced Loss Rate in the 5 % range:

– Working to reduce maintenance backlogs to industry standards.

– Outage improvement plan including moving to standard shorter outage

– Plan for vacuum building outage in 2010.

Page 12: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Major CANDU Technology Fleet issues being managed

Reactor

-

Steam Generator TubeAging Issues

Pump

Feeder Aging Issues

Pressure Tube Aging Issues

Wider Nuclear industry issue

Issues unique to CANDU

Life Cycle Plans in place and operational (major inspection and maintenance programs) to manage the known risks around these issues

Page 13: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Managing Business Risks

Technology risks

“Discovery type” risks – that could result in high cost of remediation and /or threat to generation output. Specific current technology ‘discovery’ areas could be realized in Feeder problems, turbine blade degradation, PA Calandria vault, Pickering Vacuum Building material degradation.

Changing Regulatory Requirements

There is an ongoing risk around changing regulatory requirements, especially in the Security area – susceptibility to world events.

Human resource development and planning

Demographic profile and shrinking replacement pool challenge ability to sustain performance. In the next 5 years, a significant part of the highly skilled trades and technical staff have the option to retire.

Page 14: OPG Regulated Facilities Payment Amounts Regulated Facilities Payment Amounts Tom Mitchell Chief Nuclear Officer Nuclear Stakeholder Meeting #1 November 2, 2007 Nuclear Business Overview

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Refurbishment and New Development

Government direction June 2006:

Begin feasibility studies on refurbishing existing plants and begin an Environmental Assessment on refurbishing Pickering B

Begin investigating new nuclear development at an existing site

Estimated end of production life:

Pickering B: 2014 – 2016

Darlington: 2018 – 2020

Current work:

Pickering B refurbishment – Currently conducting assessment and developing viability recommendation for decision for OPG Board of Directors in 2008

Darlington refurbishment – Phase 1 work planned to begin in early 2008

Darlington new development – conducting pre-development work including work on an environmental assessment and other regulatory approvals and a technology assessment