Nalcor Energy - 2013 Environmental Performance Report

12013 ENVIRONMENTAL PERFORMANCE REPORT



Environmental Policy and Guiding Principles

All Nalcor Energy companies help sustain a

diverse and healthy environment for present

and future Newfoundlanders and Labrador-

ians by using a comprehensive environmental

management system to maintain a high standard

of environmental responsibility and performance.

These principles guide the environmental actions and

decision-making of Nalcor companies:

PREVENT POLLUTION

• Implement reasonable actions to prevent pollution of air,

water and soil and to reduce the impact of any accidental

or unavoidable pollution

• Use the province’s natural resources in a wise and

efficient manner

• Recover, reduce, reuse and recycle waste materials when

and where feasible

• Include energy efficiency in all elements of asset

management and promote energy efficiency for our

customers and other stakeholders

• Maintain a high standard of emergency preparedness to

respond quickly to environmental emergencies.

IMPROVE CONTINUALLY

• Audit facilities to assess potential environmental risks

and to identify opportunities for continual improvement

of environmental performance

• Establish environmental objectives and targets, and

monitor environmental performance

• Integrate environmental considerations into decision-

making processes at all levels

• Empower employees to be responsible for the environ-

mental aspects of their jobs and ensure that they

have the skills and knowledge necessary to conduct their

work in an environmentally-responsible manner

• Add value by engaging key stakeholders and partners.

COMPLY WITH LEGISLATION

• Comply with all applicable environmental laws and

regulations, and participate in the Canadian Electricity

Association’s Sustainable Electricity Program

• Periodically report to the Nalcor Board of Directors,

Leadership Team, employees, government agencies, and

the public on environmental performance, commitments

and activities

• Monitor compliance with environmental laws and

regulations, and quantify predicted environmental

impacts of selected activities on the environment

• Respect the cultural heritage of the people of the

province and strive to minimize the potential impact of

company activities on heritage resources.


About Nalcor Energy

Nalcor Energy’s business includes the

development, generation, transmission, and sale

of electricity; the exploration, development,

production, and sale of oil and gas; industrial

fabrication; and energy marketing.

The company leads the development of the province’s

energy resources with a focus on sustainable growth.

Nalcor uses a corporate-wide framework to facilitate the

prudent management of its assets while maintaining an

unwavering commitment to the safety of its workers and

the public.

There are six lines of business for Nalcor: Newfoundland

and Labrador Hydro (Hydro), Churchill Falls, Lower

Churchill Project, Oil and Gas, Bull Arm Fabrication, and

Energy Marketing.

NEWFOUNDLAND AND LABRADOR HYDRO

Hydro provides safe, reliable, and cost-effective electricity

to meet current and future electricity needs. Hydro

generates and delivers electricity in Newfoundland and

Labrador to utility, industrial, residential and commercial

customers in more than 200 communities across the province.

Hydro is the primary generator of electricity in

Newfoundland and Labrador with an installed generating

capacity of 1,609 megawatts (MW). In 2013, 84 per

cent of the net energy produced by these sources was

from clean hydroelectric generation. Hydro’s generating

assets consist of nine hydroelectric plants (939 MW), one

oil-fired plant (490 MW), three gas turbines (127 MW),

and 25 diesel plants (52.6 MW). In addition, Hydro has

entered into power purchase agreements with non-utility

generators to supplement its own generation capacity

including two wind developments (54 MW).

Hydro is focused on strengthening and ensuring the integrity

of its existing business of power generation, transmission,

and distribution. The company’s goal of business excellence

focuses on delivering value to its customers and executing

its strategy with an uncompromising commitment to

safety, environmental stewardship, operational excellence,

its people and the communities where it operates.

CHURCHILL FALLS

Nalcor’s flagship operation in Churchill Falls is one of

the largest underground hydroelectric powerhouses in

the world with a rated capacity of 5,428 MW. In 2013,

approximately 35 terawatt hours of clean electricity was

produced, with the majority of that energy sold to Hydro-

Québec through a long-term power purchase arrangement

set to expire in 2041. Most of the remaining production is

used for mining operations in Labrador West and Hydro’s

Labrador Interconnected System. Nalcor Energy Churchill

Falls focuses on promoting safety excellence, delivering


reliable power to customers, and ensuring future

generations benefit from this world-class resource through

long-term asset management.

OIL AND GAS

Nalcor is a partner in three developments in the

Newfoundland and Labrador offshore: the Hebron oil field,

the White Rose Growth Project, and the Hibernia Southern

Extension. Oil and Gas is also executing a comprehensive

exploration strategy to accelerate the discovery of new

resources in the offshore.

LOWER CHURCHILL PROJECT

The hydroelectric potential of Muskrat Falls and Gull Island

make the Lower Churchill River the best undeveloped

hydroelectric source in North America. Together, they

have a combined capacity of more than 3,000 MW. The

provincial government sanctioned the Muskrat Falls Project

in 2012 and construction is now underway.

BULL ARM FABRICATION

The Bull Arm Fabrication site is a world-class facility

spanning more than 6,300 acres with capabilities for steel

fabrication and concrete construction, outfitting installation,

at-shore hook-up, and deep water commissioning. The site

is leased to ExxonMobil Canada Properties for the Hebron

Project until 2017.

ENERGY MARKETING

Nalcor is involved in energy marketing and other energy

activities, including non-regulated electricity generation,

wind energy, and research and development. Nalcor’s energy

marketing portfolio will grow over the coming years and

it currently includes recall power not required by Hydro.


Message from the CEO

At Nalcor Energy, we focus on effective and

environmentally sound practices as part of our

promise to be environmentally responsible and

sustainable. We produce the Environmental

Performance Report as our record of our

environmental commitments, accomplishments,

partnerships, and energy conservation activities.

In this 2013 report, we continue to document our

activities dedicated to our goal of becoming an

environmental leader in Newfoundland and Labrador. We

have focused on the many improvements we make to

support accountability, transparency and sustainability

in environmental protection, not just for today, but also

for our future. Our report also highlights the innovations

we implement and the measures we take to ensure our

environmental work both protects our resources and

enhances conservation and efficiency.

Our experienced and knowledgeable employees help us

keep that promise to protect and enhance our environment

through their daily contributions and constant diligence.

Please read this year’s report and share your thoughts

with us as we maintain our commitment to our natural

environment and its many resources.

Ed Martin, PRESIDENT AND CEO


2013 Highlights

NEWFOUNDLAND AND LABRADOR HYDRO

The Ramea Wind-Hydrogen-Diesel Project, operated by

Hydro on behalf of Nalcor, continued making progress

in 2013. Designed as a research and development

project using renewable energy sources and the Energy

Management System (EMS), it also supplements the diesel

requirements of the island community.

This unique project has attracted attention from around the

world. Hydro continues to promote its renewable energy

and energy storage benefits through presentations at

various workshops and conferences.

In 2013, operation of the EMS resulted in a significant

reduction in diesel fuel consumption and assisted in the

collection of valuable operational data. Data analysis led

Nalcor Energy to proceed with Phase II of the project in

2014. The Atlantic Canada Opportunities Agency, through its

Atlantic Innovation fund, will support Phase II, a five-year

project that will see the addition of a Hydrogen Fuel Cell

to the system. The project will consist of an operational

phase and a commercialization phase.

CHURCHILL FALLS

An ISO 14001–certified Environmental Management System

guides the work in Churchill Falls; this past year marked

four consecutive years of completing 100 per cent of its

environmental targets and milestones. Completing leak

repairs on 13 of the 735 kV transformers was an important

accomplishment achieved in 2013. The contractor made

the leak repairs while the transformers were still in

service, therefore eliminating the need for interruptions in

supplying power. Another significant accomplishment was

the finalization and approval of the River and Reservoir

Spill Response Plan. While the plan had been in place

since 2010, the company carried out a consultant review

in 2013, which led to the plan’s revision and finalization.

BULL ARM FABRICATION

During the fall of 2011, Bull Arm Fabrication signed a six-

year lease agreement with ExxonMobil Canada Properties

with respect to the use of the site for the construction

and fabrication of the Hebron Project. During 2013, the

company began construction of the gravity-based structure

and the living quarters module.

Consistent with Nalcor’s corporate policy and guiding

principles, the company developed an environmental

management framework for the duration of the Hebron

Project. The framework documents and outlines the

systems and processes providing the primary means

by which Nalcor will ensure consistent environmental

management of the Bull Arm Fabrication site under the

terms of the lease agreement. The framework is another

way Nalcor demonstrates its commitment to a high

standard of environmental responsibility and performance.


LOWER CHURCHILL PROJECT

The lower Churchill River is one of the most attractive,

undeveloped hydroelectric resources in North America and

is a vital component of the province’s energy warehouse.

The project’s two sites at Muskrat Falls and Gull Island have

a combined capacity of more than 3,000 MW. The Muskrat

Falls Project consists of the construction of an 824 MW

hydroelectric dam and more than 1,500 km of transmission

lines; it will provide Newfoundlanders and Labradorians

with long-term stable electricity rates and will serve as a

valuable power-producing asset for generations.

Environmental Assessment is a regulatory review and

planning process administered by the federal and provincial

governments to identify the potential environmental and

socioeconomic effects of proposed development projects

and to inform project planning and decision making. In

April 2012, Nalcor submitted the required Environmental

Impact Statement (EIS) for the Labrador-Island Transmission

Link (LIL) environmental assessment. In 2013, the LIL was

released from Environmental Assessment.

OIL AND GAS

In 2009, Nalcor Energy announced its plan to proceed with

the Parsons Pond onshore exploration program on the

province’s West Coast, involving three exploration permits.

As part of an extensive environmental approval process,

Nalcor submitted an Environmental Preview Report (EPR) to

the Minister of Environment and Conservation in early 2010.

The Minister subsequently released the project subject to

conditions. These conditions included the submission of an

Environmental Protection Plan (EPP) and an Environmental

Effects Monitoring plan (EEM), and stipulations on when

road construction could be performed.

In 2013, the removal and disposal of drill cuttings were

completed at the Seamus and Finnigan well sites. This was

completed in consultation with the provincial Department

of Environment and Conservation and the operator of the

local waste disposal site.


Our People

MANAGEMENT REPRESENTATIVES COMMITTEE

Nalcor Energy’s Environmental Management System

(EMS) allows for the management of its environmental

affairs and is applied to activities, products, and services

across Nalcor companies that may have an effect on the

environment. The Management Representatives (MR)

Committee oversees the operational management of the

EMS. Each of the Management Areas (MA) within the EMS

is represented on the committee.

The MR Committee meets on a regular basis and provides:

• An open exchange of information, approaches, and ideas

related to EMS development and implementation

• A consistent application of company EMS procedures

• A single point of communication between the Leadership

Team and Management in each MA

• A forum for training and mentoring newly appointed

Management Representatives.

The MR Committee keeps a global watch over the progress

and development of Environmental Management Programs

(EMP) within each MA to ensure the overall approach and

philosophy of Nalcor’s commitment to environmental

responsibility and responsiveness is upheld every day. The

successful completion of the registration process for ISO

14001 across the company reflects the efforts of Nalcor’s

MR Committee.

In 2013, the membership of the MR Committee included

Frank Ricketts, Corporate MA; Rob Bartlett, Hydro Plant

Operations MA; Cindy Michelin, Churchill Falls MA; Rod

Healey, Services MA; Michael Manuel, Holyrood Generating

Station MA; and Paul Smith, Transmission and Rural

Operations MA.

RECOGNIZING OUR PEOPLE

President’s Award – Environment: Craig Parsons

The President’s Awards are Nalcor’s most prestigious form

of recognition. Recipients are considered role models who

live the corporate goals on a day-to-day basis and take

personal action to improve Nalcor’s performance.

The 2013 honoree, Craig Parsons, has been with Nalcor

since 2008 as a Vegetation Control Specialist. Long

considered an environmental ambassador, Craig makes

sure his efforts to safeguard and improve the environment

encompass work, home, and community. From the time

he was first hired with Newfoundland and Labrador Hydro,

Craig’s priorities have been the environment and how to

find operational improvements in that area.

Early in his career with Hydro, Craig realized the existing

vegetation program had the potential to be more

effective; he readjusted this program to produce higher


quality results. Craig has maintained this constant focus on

environmental improvement and efficiency throughout his

career, including the introduction of GPS/GIS technology in

the vegetation management program and in the frequent

review of the herbicide products Hydro uses.

Craig also maintains his environmental commitment

by working with the Atlantic Vegetation Management

Association and the Grand Falls-Windsor Scout Group.

He has used his expertise to help a berry-picking co-op

maintain their green certification. “Craig understands the

need to balance environmental stewardship with getting

the job done and ensures that all regulatory requirements

are met.”

2013 Churchill Falls Environmental Award: Anna Dawe

Churchill Falls holds Nalcor’s commitment to the

environment in high esteem. Since 2010, the

Environmental Stewardship Award is presented to

an individual in Churchill Falls in recognition of their

commitment to the environment and demonstration of

environmental leadership.

The recipient of the Environmental Stewardship Award for

2013 was Anna Dawe. Anna exhibits her commitment to

the conservation and protection of the environment on a

daily basis, promoting environmental protection through

leadership and example. She plants greenery, regularly

helps with the community beverage container recycling

program, uses cloth grocery bags, conserves energy and

water, and volunteers on the Environment Week Committee

each year. Anna promotes environmental protection to

others by encouraging them to participate in beverage

container recycling activities.

Craig Parsons (right) receiving the President’s Award from Ed Martin (left) President and CEO of Nalcor Energy.

Anna Dawe (left) receiving the Environment Stewardship Award from Cindy Michelin (right) at Churchill Falls in 2013.


Nalcor Energy has chosen the ISO 14001–certified EMS to drive

the continual improvement of the company’s environmental

performance. An EMS provides a management framework

for an organization’s environmental responsibilities and

is an integral component of the organization’s business

operations. The EMS governs the environmental activities

in Nalcor’s electricity businesses: Hydro and Churchill Falls.

Nalcor is also committed to the use of the EMS for its other

lines of business.

The six designated MAs within Nalcor manage their

environmental aspects through the EMS (Figure 1). Each

EMS is certified and registered by an independent Registrar,

Quality Management Institute (QMI – SAI Global). More

information can be found at www.qmi-saiglobal.com.

Nalcor has undertaken a comprehensive and phased

approach to environmental management within the

company and has registered and maintained EMSs at its

six existing MAs over the period since 1999.

While the company has made progress in 2013 to reduce

its impact on the environment, Nalcor will continue to

develop long-term plans to achieve its environmental

targets and its corporate environmental goal – to be an

environmental leader. In 2013, Nalcor continued tracking

and reporting EMS performance to the Leadership Team

and achieved 95 per cent completion of its EMS targets

and milestones.

Environmental Management Systems

Figure 1: Structure of Nalcor Energy’s Environmental Management System

CORPORATESenior Leadership Team

OPERATIONAL MANAGEMENT AREAS

Thermal Plant Operations

Hydro Generation

Churchill Falls

TRO Operations

MR Committee

ServicesService input

to Operational Management Areas

Input

Ouput


EMS programs developed under the EMS cover a broad

range of areas:

• Alternative energy and conservation

• Emissions control, waste management, and recycling

• Spill prevention and management

• Environmental site assessment and remediation

• Species and habitat diversity.

These systems include specific performance measures and

a commitment to continual improvement. For example, in

2013, Hydro developed and implemented a strategy for

the identification and mitigation of construction effects on

bogs and wetlands. The strategy included reviewing the

2013 and 2014 capital transmission and distribution work

to identify sensitive bogs and wetlands and developing

mitigation strategies to minimize impacts.

Additional accomplishments resulting from the

Environmental Management Plan in each of the

Management Areas in 2013 follow.

CORPORATE MANAGEMENT AREA

The Corporate MA consists of the Leadership Team and a

committee of managers with responsibilities for facilities

and operations with environmental aspects. The goal of this

MA is to co-ordinate the development and maintenance of

the overall EMS for Nalcor and to identify environmental

aspects appropriate to the Leadership Team’s activities and

responsibilities. Although the operational and services EMSs

are managed independently, a common and consistent

Corporate Environmental Policy and Guiding Principles set

the standard for all Nalcor companies. Employees also

carry out periodic reviews of activities and issues to ensure

consistency with corporate standards.

TO BE AN ENVIRONMENTAL LEADER

Nalcor developed a corporate strategy that today sets

the stage for environmental performance and guides

the direction of all Nalcor companies, including the

development of goals, objectives, and targets for each.

Nalcor established three objectives to support Nalcor’s

environmental goal – to be an environmental leader. These

are reviewed annually:

• Reduce emissions per unit of energy delivered through

2015 by achieving not more than 10 per cent variance

from ideal production schedule at the Holyrood

Generating Station

• Maintain the number of environmental leadership

targets accomplished at, or greater than, 95 per cent

each year for the next five years

• Have all current non-regulated generating entities and

lines of business under an EMS fully compliant with the

ISO 14001 standard by 2015.

The company set targets arising from these objectives in

each line of business. The 2013 targets included:

• Increasing the number of Leadership Team-approved EMS

targets and objectives accomplished across the company

• Increasing internal and external energy savings

• Reducing emissions per unit of energy delivered at the

Holyrood Generating Station

• Completing EMS implementation and compliance audit

closure plans for the new lines of business.


SERVICES MANAGEMENT AREA

Environmental aspects are an element of a department’s

activities, products, or services that can interact with the

environment. Currently, there are five departments within

the Services MA that have identified environmental aspects.

These groups include Systems Operations and Planning,

Corporate Relations, Project Execution and Technical Services,

Supply Chain Management, and Environmental Services.

In 2013, the Services MA managed nine environmental

management programs. Some results included:

• Controlled release of more than 126 million cubic metres

of water from reservoirs, as part of long-term agreements

with the Department of Fisheries and Oceans for fish and

fish habitat protection

• Initiating a Marine Environmental Effects Monitoring

study at the Holyrood Thermal Generating Station

• Implementing Year Two activities of the isolated systems

community energy efficiency program and creating and

implementing a communication plan for Hydro facilities

• Developing and implementing a strategy for the

identification and mitigation of impacts of construction

on bogs and wetlands

• Optimizing energy usage by reviewing and changing the

Hydro Place building automation system

• Continuing the optimization of Exploits Generation

through detailed vista modelling and incorporating the

Star Lake Generating Station into the generation

scheduling and water management processes

• Developing EMSs for new lines of business.

OPERATIONAL MANAGEMENT AREAS

Thermal

The Holyrood Thermal Generating Station is a 490 MW

plant located in Holyrood, Conception Bay. Although the

Holyrood plant’s EMS was initially registered in January

1999, this plant continues to maintain registration.

In 2013, the Holyrood Thermal Generating Station made

progress on 14 environmental targets resulting in the

following improvements:

• Spill mitigation was improved through completion of

three tank upgrades

• Spill mitigation was improved through completion of day

tank upgrades

• Energy efficiency and spill mitigation were improved

through fuel line heating system upgrades

• Marine terminal operations and spill mitigation were

improved through completed marine terminal upgrades

• New ambient monitoring data loggers were installed

to support government initiatives to improve community

awareness of ambient air quality

• The main condenser performance was analyzed to identify

efficiency improvements to reduce fuel consumption.

Hydro Operations

The Bay d’Espoir MA consists of eight generating stations

on the island with a total installed capacity of 939 MW. In

2013, some of the Environmental Management Program

results included:

• Assessment of opportunities for the implementation

of energy efficiency and conservation applications

such as installing programmable thermostats in locations

throughout Hydro Generation facilities

• Review of our Granite Canal Plant Operating Requirements

and the Fish Habitat Compensation Facility as it pertains

to the Department of Fisheries and Oceans

Authorization Agreement

• Development and implementation of an Environmental

Management System for the Star Lake generating facility

and integration into the Hydro Generation EMS

• Fuel storage tank improvements

• Improvements in the reduction of oil losses and increased

emphasis on training awareness.

Transmission and Rural Operations (TRO)

The TRO division operates three gas turbines, three 100

kW wind turbines, three interconnected diesel generating

stations, and 22 isolated diesel generating and distribution

systems. Hydro also maintains 54 high-voltage terminal

stations, 34 lower-voltage interconnected distribution

substations, 3,743 km of interconnected high-voltage

transmission lines, and 3,428 km of distribution lines.

In 2013, the staff completed significant EMS programs in

TRO by:

• Developing procedure and tool list required to complete

vacuum testing of fuel storage tanks in TRO

• Reducing the risk of spill/leaks to the environment

through replacement of Transformer Radiators


• Continuing testing of electrical equipment potentially

containing Polychlorinated Biphenyls (PCB) and the

implementation of a 15-year replacement plan for

sealed equipment

• Continuing to recycle/reuse 100% of salvageable

material at TRO

• Conducting trials of new products or new rates with

existing products with the potential to reduce herbicide

use; trials included alternative herbicide for weed

control program (Arsenal herbicide,) and the reduction

of the standard rate of Roundup Weathermax from

1.34 per cent to one per cent on 20 sites

• Completing Environmental Protection Plan training for

67 personnel

• Identifying a facility in each region for replacement of

T12 light fixtures and electronic ballasts. The facilities

retrofitted included the Bishop’s Falls Service Building

Classroom #2 and lunchroom/office, Happy Valley/

Goose Bay North Plant, and Cow Head Line Depot.

CHURCHILL FALLS

The Churchill Falls Hydroelectric Generating Station has

an installed capacity of 5,428 MW. Associated with

this development are about 1,200 km of high-voltage

transmission lines, an airport, and the Town of Churchill

Falls. Environmental aspects of these facilities are included

in the EMS. The Churchill Falls EMS also manages the

environmental aspects of the former Twin Falls Hydroelectric

Generating Station. The EMS was registered in 2000 and

successfully completed a surveillance audit in 2013.

The employees also developed environmental targets and

programs at Churchill Falls as part of the EMS. Some results were:

• 100% completion of 21 environmental management

system targets

• Finalized the River and Reservoir Spill Response Plan

• Installed new treated wood pole rack

• Installed new transformer oil tank farm

• Installed skimmers in powerhouse drainage sumps to

augment the oil water separator systems

• Ensured maintenance programs in place for all three

horsepower and greater refrigeration units

• Performed extra work on unit A2 turbine to reduce oil loss

• Continued a multi-year program for reduction of oil

leaks from switchyard transformers by repairing apparent

leaks on transformers

• Continued a multi-year contaminated lands program.

ENVIRONMENTAL MANAGEMENT SYSTEMS FOR THE NEW LINES OF BUSINESS

Nalcor has decided on a staged approach to developing

and implementing an EMS across the new lines of business,

including Oil and Gas; Bull Arm Fabrication; Menihek

Hydroelectric Generating Station; Exploits Generation; and

Star Lake Hydroelectric Generating Station.

In 2013, Oil and Gas made great progress with developing

and implementing elements of its EMS. During the past year,

Oil and Gas reviewed the available options as they relate to

the best EMS structure suitable for its business and decided

that an Environmental Management Framework (EMF) best

fit its current structure. In 2014, Oil and Gas will continue to

expand on the EMF and develop and implement pertinent

internal procedures to ensure a high level of environmental

management exists for its operations.

Bull Arm Fabrication completed its Environmental

Management Framework (EMF) ensuring a more cohesive

management process between Bull Arm Fabrication and

ExxonMobil Canada Properties. In 2013, Environmental

Services, with the Bull Arm Team, completed a final review

of the EMF and finalized pertinent internal procedures to

ensure consistency between the sublease and EMF.

The Menihek Hydroelectric Generation Station is in the final

stages of implementing its ISO 14001:2004 consistent EMS.

In 2014, Menihek will continue to work towards having an

EMS in place by completing an internal review to ensure its

suitability for an independent audit review in 2015.

2013 also proved to be a successful year for Exploits

Generation with the completion of all environmental

targets identified in its gap closure plan. The Exploits team

continues to develop EMS-specific procedures to ensure

the continual growth and development of its EMS.

Star Lake Hydroelectric Generation Station was successfully

incorporated into the existing EMS for Hydro Generation

and the team completed an independent internal EMS

review. In 2014, the Star Lake team will deal with the

issues identified during the independent review.


Emissions

WASTEWATER CONTROL

The Holyrood Generating Station’s wastewater treatment

plant treats the wastewater resulting from the combustion

of fuel and run-off from an on-site solid waste landfill.

Components of the wastewater are measured and

compared to regulatory limits. Once all aspects of the

wastewater meet provincial regulatory requirements, it is

released in the plant’s cooling water discharge and into

Conception Bay. In 2013, 3.4 million litres of wastewater

were treated and discharged, which was similar to the 3

million litres of wastewater treated and discharged in 2012.

AIR QUALITY MANAGEMENT

Hydro has a mandate to meet the province’s growing

electricity needs. In 2013, on the Island Interconnected

System, approximately 82 per cent of this electricity was

generated from clean hydroelectric power. To meet the

total customer demand requirements and to secure the

transmission supply into the Avalon Peninsula, between

10 and 25 per cent of the island’s electricity continues

to come from fossil-fuel fired generation at the Holyrood

Generating Station each year. Hydro also operates 25

diesel plants across the province and three wind turbines

in the isolated community of Ramea.

The company continues to use alternative sources of

energy supplementing the province’s energy supply and

to reduce emissions from burning fossil fuels. In 2013,

Hydro purchased 191,904 MW hours of clean energy from

the island’s two wind farm projects, representing enough

green energy to power more than 12,880 homes. This is

equal to burning 305,000 barrels of oil at the Holyrood

plant, and is a reduction of more than 159,000 tonnes of

greenhouse gas emissions.

Overall, thermal production at the Holyrood Generating

Station increased in 2013 by 11.7 per cent from 2012,

primarily due to increased requirements of the plant for

Avalon transmission support. This was driven by colder

temperatures and increased customer demand.

The Holyrood plant produced just over 14 per cent of the

energy supplied by Hydro in 2013, up slightly from 13 per

cent in 2012. The increased energy production from the

Holyrood plant in 2013 resulted in a 10.9 per cent increase

in carbon dioxide (CO2) emissions. The increase in CO

2

emissions is the direct result of more fuel being consumed.

The sulfur dioxide (SO2) emissions from the plant in 2013

were 8.1 per cent higher than those experienced in 2012.

Overall, energy received into the system increased

by nearly two per cent in 2013, mainly because of the

increased production from the Exploits Generating plants

and the Corner Brook Pulp and Paper Co-generation unit.

This increase was partially offset by decreased generation

from the wind projects and the Star Lake Generating

Station. Overall energy supply requirements increased by


3.4 per cent in 2013, primarily due to an increase in utility

load which was partially offset by an overall decrease in

industrial requirements. Hydro’s hydroelectric production

on the island was up by two per cent from 2012, primarily

due to the increased customer demand requirement and

partially offset by increased Holyrood requirements for

Avalon Peninsula transmission support.

Total emissions for CO2, nitrogen oxides (NO

x), and

SO2 for the Holyrood Generating Station, gas turbine

facilities, and isolated diesel generating stations are

calculated using formulas approved by the provincial

Department of Environment and Conservation. Nalcor’s

overall air emissions are dominated by those resulting

from production at the Holyrood Generating Station.

Emissions of CO2, NO

x, and SO

2 for the Labrador Isolated

Diesel System, Labrador Interconnected System, and the

Island Isolated Diesel System, were calculated to be

approximately 47.8, 1.4, and 0.06 kilotonnes respectively.

Emissions for the Island Interconnected System, including

the Holyrood Generating Station, interconnected gas

turbines and the standby diesel plants are outlined in the

following graphs:

ANNUAL CO2 EMISSIONS

Hydraulic Production Island Interconnected Emissions

6,000

5,000

4,000

3,000

2,000

1,000

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Hydr

aulic

Pro

duct

ion

(GW

h) Emissions (kilotonnes)


ANNUAL NOX EMISSIONS ANNUAL SO2 EMISSIONS

Hydraulic Production Island Interconnected Emissions Hydraulic Production Island Interconnected Emissions

6,000

5,000

4,000

3,000

2,000

1,000

0

6,000

5,000

4,000

3,000

2,000

1,000

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

Hydr

aulic

Pro

duct

ion

(GW

h)

Hydr

aulic

Pro

duct

ion

(GW

h)Emissions (kilotonnes)

Emissions (kilotonnes)

25

20

15

10

5

0


Waste Management

POLYCHLORINATED BIPHENYLS (PCBs)

PCBs are the most significant waste management issue in

the electric utility industry. This substance was commonly

used in electrical equipment prior to the late 1970s, when

PCB production was banned. The effect of this ban on

Hydro and many other utilities was two-fold. The amount

of PCB in-service declined as new PCB-free equipment was

installed, and inventories of PCB-contaminated wastes

increased as older equipment was retired.

Hydro has had a PCB management program in place since

the early 1980s to reduce the risks associated with in-

service equipment containing PCBs. The earlier focus of this

program was to remove all items with a high concentration

(greater than 10,000 milligrams per kilogram [mg/kg])

of PCBs from service and to reduce the concentration of

PCBs in larger volume oil-filled equipment to less than

50 mg/kg.

In 2013, Hydro continued to test all other equipment that

was not sealed such as reclosers, voltage regulators, tap

changer compartments, oil circuit breakers, and station

service transformers. In 2013, Hydro sampled 46 units, and

found only one piece of equipment containing greater than

50 mg/kg of PCBs; this item was subsequently removed

and disposed of properly.

New federal PCB regulations, brought into effect in 2008,

focused on the removal of higher concentration PCB

equipment from service by planned dates, and introduced

more restrictive handling of PCB waste. The limits for

identifying high-concentration PCBs were also lowered to

any equipment having a PCB concentration greater than

500 mg/kg.

In 2013, Hydro’s Transmission and Rural Operations (TRO)

division continued to follow their PCB phase-out plan for

sealed equipment that was submitted to Environment

Canada in 2010 under a Section 33(2) extension permit.

Each year there are slight revisions to the plan as work

priorities change. In 2013, TRO discovered five pieces of

sealed equipment, under the extension permit, that had a

PCB concentration of 500 mg/kg or greater. They were all

oil circuit breaker bushings and all five were taken out of

service and sent for destruction.

Nalcor Energy Churchill Falls (NE-CF) continued to refine its

PCB phase-out program in 2013. Additional equipment and

information was added to its database to ensure that all

equipment 50 mg/kg and greater PCBs is removed from

service by 2025.

NE-CF continued with its annual PCB training program, with

minor updates, for all personnel handling and transporting

PCBs. The program ensures everyone is aware of the

requirements under the Transport of Dangerous Goods

(TDG) Regulations, PCB Regulations, Storage of PCB Wastes


Regulations, Certificate of Approval for the PCB Storage

Building, Equivalency Certificate, and local EMS Standard

Operating Procedures.

Nalcor Energy submitted its fifth set of online PCB reports

under the PCB Regulations for the year 2013 for the

Bishop’s Falls PCB Storage Facility, the Churchill Falls PCB

Storage Facility, and the Menihek Hydroelectric Generating

Station. Reports were submitted under Sections 33(2),

33(3) and 37 of the PCB Regulations.

Hydro operates one approved PCB waste storage facility

at its Bishop’s Falls area office and inventory storage

yard. See Table 1 for PCB material in storage, sent for

disposal and destroyed as of December 31, 2013 at the

Bishop’s Falls PCB Waste Storage Facility.

Churchill Falls operates one approved PCB waste storage

facility. Table 2 provides an inventory of PCB material in

storage, sent for disposal and destroyed as of December

31, 2013.

Table 1: PCB material in storage, sent for disposal and destroyed as of December 31, 2013 at Bishop’s Falls.

Table 2: PCB material in storage, sent for disposal and destroyed as of December 31, 2013 at Churchill Falls.

PCB Material in Storage, Sent for Disposal and Destroyed (Churchill Falls PCB Waste Storage Facility)

2013 Tonnes

Total inventory of PCB material (50-500mg/kg) in storage 0

Total inventory of PCB material (>500mg/kg) in storage 0

Total inventory of PCB material (50-500mg/kg) sent for disposal 0

Total inventory of PCB material (>500mg/kg) sent for disposal 0

Total amount of PCB material (50-500mg/kg) destroyed 14.4

Total amount of PCB material (>500mg/kg) destroyed 0.0005

PCB Material in Storage, Sent for Disposal and Destroyed (Bishop’s Falls PCB Waste Storage Facility)

2013 Tonnes

Total inventory of PCB material (50-500mg/kg) in storage 2.3

Total inventory of PCB material (>500mg/kg) in storage 0

Total inventory of PCB material (50-500mg/kg) sent for disposal 11.7

Total inventory of PCB material (>500mg/kg) sent for disposal 1.6

Total amount of PCB material (50-500mg/kg) destroyed 1.1

Total amount of PCB material (>500mg/kg) destroyed 0


REUSE AND RECYCLING INITIATIVES

Used Oil

Nalcor has a waste oil management system for handling and

disposing of used oil. On an annual basis, facilities record

the amounts of used oil generated and new oil purchased.

Used oil is stored in either 205 litre drums or storage tanks

and is collected by a certified waste oil handler for either

recycling or reuse. Table 3 summarizes used oil information

by location, used oil type, and volume collected.

At Hydro’s central maintenance facility in Bishop’s Falls,

insulating oil from transformers brought in for servicing is

collected in oil storage tanks and processed for recycling if

suitable. If the quality of the oil is not suitable for recycling,

the oil is collected by a certified waste handler for proper

disposal. In 2013, 23,600 litres of insulating oil taken from

transformers was recycled with 10,724 litres disposed of as

waste. This represents 69 per cent recycling of insulating oil

at the central maintenance facility in 2013, down from 99

per cent in 2012. The amount of insulating oil disposed of as

a waste will likely increase in the coming years due to the

removal of oil-filled equipment with a PCB concentration

between 2mg/kg and 50mg/kg; this oil cannot be reused

and will have to be disposed of as a waste.

Location Used Oil Type Volume (litres)

Diesel Plants lubricating oil 42,472

Hydroelectric Generating Stations lubricating oil 4,893

Holyrood Generating Station (HTGS) lubricating oil 18,890

HTGS oil/water mixture 569,661

Bishop’s Falls insulating oil 34,324

Churchill Falls lubricating and insulating oil 33,845

Churchill Falls oil/water mixture 33,290

Exploits Generation lubricating oil 1,360

Menihek Generating Station lubricating oil 0

Menihek Generating Station Insulating oil 56,000

Table 3: Volumes and types of used oil collected by location.


WOOD POLE LINE MANAGEMENT PROGRAM

As part of its transmission line network, Hydro manages about

26,000 poles of varying age. Wooden poles have an in-service

lifespan of 50 years. With proper management, maintenance,

and refurbishment, the in-service lifespan can be extended by

10 years or more. Core samples taken from some poles in 1998

showed the preservative retention level was not adequate.

As a result, Hydro initiated a Wood Pole Line Management

Program in 2003 and it is expected to continue as a long-term

asset management and life-extension program. In 2013, Hydro

treated 2,070 poles with boron rods to provide extra protection

and to extend the in-service life expectancy of new poles. Since

the start of the program, about 24,432 poles have been treated.

FUEL ASH DISPOSAL AT HOLYROOD GENERATING STATION

During 2013, all fuel ash produced at the Holyrood

Generating Station was disposed of in an on-site, controlled,

solid waste landfill. The amount of total ash produced and

disposed of at the landfill in 2013 was 206 tonnes, down

slightly from the 241 tonnes reported in 2012.

SCRAP METAL AND BATTERY RECYCLING AND REUSE

During 2013, Hydro decommissioned 151 distribution

transformers, all of which contained non-PCB oil. The

transformers were drained and sold to a transformer

manufacturer for reuse. No voltage regulators or batteries

were recorded as sold in 2013.


Spills and Other Incidents

The very nature of Hydro’s work to generate and

transmit electricity requires the safe handling

and use of a variety of potential environmental

contaminants such as fuel oils, lubricating oils, and

chemicals. Each year, Hydro uses about 300 million

litres of fuel to generate electricity. The company

strives to reduce the potential for leaks and spills.

Being prepared for such an incident is critical to mounting

a quick and effective response that will reduce negative

effects on people and the environment. Nalcor Energy

and its lines of business have developed Environmental

Emergency Response Plans (EERPs) to deal quickly,

effectively and safely with such incidents. All personnel

who handle or work around petroleum products, receive

training related to the EERP and, where applicable, specific

operating procedures have been developed to facilitate

the safe handling of the products used.

Nalcor’s lines of business had a total of 10 reportable spill

and leak incidents in 2013: Hydro reported five; Churchill

Falls reported four; and Menihek Generation reported

one. The approximate volume for all reportable spills was

1,196 litres.

All but one reportable spill involved petroleum products

or its derivatives. One reportable incident at Churchill Falls

involved the release of 39 kilograms of refrigerant. The

other releases are categorized as follows:

• One release accounted for approximately 910 litres of

glycol and water mixture

• Five releases involved spills or leaks of transformer

insulating oil with an approximate volume of 215 litres

• One incident involved a one litre release of lubricating oil

• One incident involved a leak of approximately 50 litres

of #6 fuel oil

• One incident involved a spill of 20 litres of hydraulic oil

from mobile equipment.

In all incidents, staff responded promptly to the spills

and leaks with spill response equipment. Staff collected

the contaminated materials in suitable containers for

appropriate disposal, and where necessary, staff also

undertook appropriate sampling to ensure adequate

clean-up was completed. In some incidents, the company

engaged independent site professionals to manage the spill

clean-up, soil sampling, and spill closure. Table 4 outlines

the details of Nalcor’s more significant spill incidents.


Date Source Volume Response/Status

March 4Non-PCB transformer insulating oil leaked from a transformer in Happy Valley Goose Bay.

120 LPole containing 3 transformers cracked off due to falling ice. Oil was confirmed non-PCB. Absorbent pads and snow were used to contain and absorb the spilled oil. Contaminated materials were removed in drums for subsequent disposal at an approved facility.

April 5Non-PCB transformer insulating oil leaked from a transformer in Happy Valley Goose Bay.

88 L

Pole containing 1 transformer cracked off when a transport truck hooked Aliant wires. Oil was confirmed non-PCB. Absorbent pads and snow were used to contain and absorb the spilled oil. Contaminated materials were removed in drums for subsequent disposal at an approved facility.

October 2133% Glycol to water mix leaked from cooling unit piping in Churchill Falls Curling Club.

910 LSystem was not checked between Friday and Monday. Glycol mix entered drains leading to the community waste water treatment system. Minimal glycol was recovered.

Table 4: Details of Nalcor’s more significant spill incidents.

TRO OIL SPILL TRENDS ANALYSIS

Nalcor continues to focus on eliminating spills and leaks

from its fuel storage systems and its operating and

electrical equipment. Staff maintain detailed information

related to reportable and non-reportable spills and leaks

and these are reviewed annually for trends and concerns.

If staff identify trends, they will consider and implement

preventative actions to address the concerns.

For example, in Hydro’s TRO Division in 2013, the identified

trends were weeps and leaks from oil-filled equipment in

terminal stations. To help prevent these types of incidents,

TRO Asset Managers will reinforce and promote the

inspection and monitoring of oil-filled equipment for leaks.

TRO has also identified trends from leaks and spills from

hydraulic line failures in mobile equipment and it has a

program for in-depth pre-use boom and vehicle inspections.

MENIHEK ELECTRICAL EQUIPMENT REFURBISHMENT PROGRAM

The three power transformers and two oil circuit breakers

(OCB) at the Menihek hydroelectric generating plant are all

original to the plant construction and more than 50 years

old. In 2013, a transformer and OCB refurbishment program

was undertaken. Associated with the refurbishment

program was the replacement of about 56,000 litres


of insulating oil with Luminol and the replacement of

13 oil filled bushings. Luminol transformer fluids are

biodegradable, free of carcinogenic polynuclear aromatics

(PNAs) and virtually non-toxic, thereby helping to reduce

environmental concerns about transformer oil toxicity,

spill liability, and potential disposal costs. All bushings

and insulating oil were tested for PCB concentration to

determine the means of destruction and/or disposal.

CHURCHILL FALLS SPILL PREVENTION AND MANAGEMENT PROGRAM

One of the ongoing programs in 2013 was the completion

of an action plan to improve further the Churchill Falls

powerhouse spill response and prevention measures. This

plan maintained a target for spill prevention and response

measures that the management at Churchill Falls has

worked on for the past several years. This is a significant

milestone because once all of the actions within this plan

are completed, all identified prevention and response

efforts will have been implemented.

In 2013, stakeholders within the corporation and an

independent consultant reviewed Nalcor’s River and

Reservoir Spill Response Plan. The response plan was

revised using the National Standard of Canada, “CAN/

CSA-Z731-03, Emergency Planning for Industry,” and

reflects evolving needs within NE-CF.

The plan uses local resources, but provides for the

opportunity to call in external resources if required. NE-CF

has their own spill response materials and equipment

including boats and booms. The plan specifies the roles

and responsibilities of On Scene Commanders and their

supporting response team, as well as training and

plan testing, and revision requirements. The plan also

includes information such as potential spill sources,

personal protective equipment (PPE), Material Safety

Data Sheets (MSDSs), and ties in other Nalcor Energy

emergency response plans. The 2013 revisions included

the addition of a quick reference flowchart that outlines

roles and responsibilities.

The finalization and management approval of this

plan was another completed element of the Churchill

Falls powerhouse spill response and prevention

measures program.

River Spill Responders train at the Churchill Falls Tailrace using peat moss, a commonly used method to simulate oil in training exercises.


Environmental Site Assessment (ESA) and RemediationIn 2000, Hydro implemented an ESA program for all properties it owns or operates.

The ESA process the company follows is illustrated in Figure 2.

Figure 2: Environmental Site Assessment Process. Completion

Remediation Phase

Assessment Phase

Communication and Input

Reporting

List of Sites

Phase III

No Further Work Required


Notification to Stakeholder


Regulator Input

Remediation Action Plan

Remediation Contract Management

CriteriaCriteria

Criteria Regulator Input

Confirmatory Sampling

Phase I Phase II


Regulator Input

Risk Assessment Remediation


Annual Report


The objectives of the ESA program are to:

• Evaluate the potential for environmental contamination

• Undertake sampling to characterize and delineate

any contamination

• Assess the potential risks and liabilities associated with

any contamination identified

• Identify sites requiring monitoring or remediation

• Develop & implement remediation programs

when necessary.

Arising from the recommendations of previous ESA-related

work at Hydro, the following are noteworthy points related

to the 2013 ESA program:

• Groundwater and/or soil vapor monitoring was

completed at five sites

• Additional delineation to supplement previously

completed Phase II assessments were completed at

four sites

• Free product assessment and recovery was completed

at one site

• Phase II ESAs were completed at two sites

• Decommissioning of ground water monitor wells was

completed at one site.

In 2013, the Churchill Falls ESA program continued at seven

sites (five sites were located in remote areas while the

other two sites were located close to the town site) with

the following highlights:

• Ongoing ground water monitoring and free product

recovery at three sites

• Additional delineation with monitoring well installations

at one site

• Phase I & 2 and hazardous materials survey at one site

• Stain removal and capping at one site

• Remediation of affected soil at one site

• Monitoring well decommissioning at a few locations.

Nalcor completed a Phase II Environmental Site

Assessment on eight Exploits Generation facilities located

throughout central Newfoundland in 2013. Staff also

completed additional Phase II ESA investigations as a

follow up to previous investigations. During 2013, staff

carried out a hazardous materials abatement program

at multiple facilities to address asbestos and lead paint

issues. The most significant abatement program occurred

in the former Grinder Room in preparation for the

eventual demolition of the building.

The ESA program continues to be successful in identifying

and managing the potential environmental contamination

associated with Nalcor’s past and present operations.

Phase l — review of information and records,

site visit and interviews.

Phase II — characterization of a site for

physical aspects and potential contamination.

Risk-Based Corrective Action (RBCA) —

a methodology that identifies a site-specific

target level of contamination that has an

acceptable risk to human health.

Remediation — site cleanup to a specified

regulatory standard.


REMOVAL OF DRILL CUTTINGS AT PARSONS POND 2013 AS PART OF PROJECT RAINBOW REMEDIATION

In December 2013, the company awarded a contract for

the removal of an estimated 300 dump truck loads of

drill cuttings at the Project Rainbow drill sites at Parsons

Pond. Drill cuttings were stored in pits at two sites: four

pits at the Seamus Site at Parsons Pond Head and three

pits at the Finnigan Site at Five Mile Road (Figure 3). A

preconstruction orientation session was held between

Hydro’s Environmental Services Department (ESD) and

the contractor on December 9, 2013 and excavation and

removal of materials began on December 10, 2013.

Excavation and removal of drill cuttings first began at the

Seamus Site (Figure 4). This site is located 23 kilometers

from the waste disposal site and would take longest to

complete. Due to the time of year, excavated materials

were nearly frozen during removal. This meant additional

mitigation was not required inside the trucks to prevent

liquids spilling from the vehicles on route to the landfill.

A total of 160 loads were removed from the Seamus Site

over six days.

Work at the Finnigan Site (Figure 5) began on December 17

and was completed on December 22, 2013. Due to slurry

conditions in two of the pits, some over-excavation was

required to ensure complete removal of all drill cuttings.

A total of 188 loads was hauled from this site, making the

overall number of loads at 348.

Slurry conditions in two of the pits at the Finnigan Site meant

that soil samples couldn’t be taken from the bottom as was

done at the Seamus Site. In 2014, ESD will revisit the site to

determine if samples can be collected once the area has dried.

At each site, once all visible drill cuttings were removed, the

area was back bladed and graded (Figure 6). Some material

was hard to grade because it was frozen in large chunks;

some additional grading may be required in 2014.

While the contractor was hauling material, a second

excavator was set up at the regional landfill to grade

material that was removed from the Seamus and Finnigan

Sites (Figure 7). The regional waste management authority

was very pleased with the condition of the landfill upon

completion of the work and no additional concerns

regarding the landfill were identified.

Figure 3: Project Rainbow Drill sites.


Figure 4: Pits at Seamus Site before water removal.

Figure 6: Graded area of a pit at the Seamus Site. Further grading may be needed in 2014.

Figure 5: Pits at the Finnigan Drill Site.

Figure 7: Dumped drill cutting graded at the waste management site.


Species, Habitat Diversity, and Historical Resources

FISHERIES COMPENSATION WATER RELEASE

In 2013, as part of long-term agreements with the

Department of Fisheries and Oceans, Hydro released

approximately 126 million cubic metres of water at its

fisheries compensation facilities. The water released

at White Bear River, Grey River, Granite Canal, Upper

Salmon, and Hind’s Lake was performed at established

times throughout the year for habitat protection and

fish migration.

Because of the isolated nature of the island’s electrical

system, lost hydroelectric energy production associated

with these water releases under normal conditions must

be replaced by thermal generation from the Holyrood

Generating Station. The amount of thermal production

required to offset the amount of water released in 2013

was just over 25 Gigawatt Hours (GWh). When the 2013

thermal conversion rate and average cost of fuel are

considered, the equivalent value of the water released

at all fisheries compensation facilities was about $4.5

million. This resulted in a potential increase of 86 tonnes

of sulphur dioxide emissions and 20,700 tonnes of carbon

dioxide emissions.

RAPTOR PROTECTION PROGRAM

For more than 20 years, Hydro has managed a raptor

protection program. In keeping with Nalcor’s EMS and the

corporate Environmental Policy and Guiding Principles,

staff with Hydro’s Environmental Services Division

survey transmission lines in Labrador for the presence of

active raptor nests. This is an annual survey undertaken

in consultation with the provincial Department of

Environment and Conservation, Wildlife Division. These

nests are primarily osprey, with smaller numbers of

northern ravens, red tailed hawks, and bald eagles.

Surveys are undertaken early in the egg laying stage of the

breeding season at which time nests that would be active

for the year are usually occupied or show signs of occupancy.

Surveys carried out in late June 2013 found a total of 171

nests on the three transmission line corridors in Labrador.

On the island transmission grid, 29 active nests were

identified on various structures. The work crews received

the data immediately following completion of the surveys

to allow for planning of maintenance activities on these

transmission lines.

Structures with active nests are avoided until after the

breeding season, usually after August 15. This allows line

crews to avoid potential negative effects on these species

during the critical periods within the breeding regime,

which in turn ensures compliance with wildlife legislation

regarding migratory birds in Newfoundland and Labrador.

PRESERVING THE ATLANTIC SALMON RUN

Exploits Generation staff manage a very successful Atlantic

salmon diversion system on the Exploits River in Central

Newfoundland in partnership with the Department of


Fisheries and Oceans, fish biologists, and the Environmental

Resource Management Association (ERMA). One Atlantic

salmon enhancement project, started in the early 1960s, has

seen the natural adult salmon run grow from 1,200 strong to

an adult incoming run in the range of 40,000 today.

Every year, spring runoff brings adult salmon that have

migrated downstream from their spawning grounds.

Some of these adult salmon will enter the power canal

at the Grand Falls hydroelectric plant. Barriers prevent the

salmon from entering the power generation turbines once

they reach the power canal. Without this assistance, they

could be delayed in their annual migration downstream.

Exploits Generation staff begin visually monitoring the

power canal at the end of April when water temperatures

begin to rise. Through a cooperative effort started in

1997, local fishermen and Exploits Generation employees

remove salmon from the power canal and transport

them downstream.

In 2013, approximately 33,000 adult salmon migrated

upstream of Bishop’s Falls into various tributaries of the

Exploits watershed. About 600 adult fish passed the

Millertown dam in the upper reaches of the Exploits River.

FISH BYPASS UPGRADES

Over its existence, the Grand Falls hydroelectric plant has

undergone various upgrades and expansions, the most

significant occurring in 1997 with the construction of a

400 m long, 40 m wide and roughly 10 m deep power

canal to replace the aging penstocks. Concurrent with

the construction of the power canal was the design and

implementation of a fish protection system to assist in the

removal of smolt trapped in the power canal. At the core

of the fish protection system is a 185 m long, 2 m deep

floating louver system that exploits behavioral guidance

principles to direct smolt toward a 40 m long concrete and

wood fish bypass structure that diverts guided fish back to

the Exploits River to continue their out-migration.

In 2012, the louver system was replaced with a new

system based on the same design principles of the former

system. Studies undertaken in 2013 to document the

effectiveness of the new louver system found its guidance

efficiency to be the same or better than the performance

of the former system.

Upgrades continued in 2013 with the replacement of the

fish bypass entrance system. Installed in 1997, the existing

system was based on a preliminary design concept with an

understanding that further modifications and testing of the

design would be required to optimize its performance. In light

of this, the system was installed using temporary materials

which simplify the completion of any reconfigurations required

for system optimization. In 2013, the company undertook to

remove the existing temporary materials and replace them

with new material to create a more permanent installation.

Additional studies are planned for 2014 to document the

effectiveness of the new fish bypass entrance system.

LOWER CHURCHILL PROJECT ARCHAEOLOGICAL RECOVERYAT MUSKRAT FALLS

When the Lower Churchill Project began, Nalcor Energy

committed to carrying out all project work in a manner

that respects the culture and heritage of the area. The

protection and preservation of historical resources in the

project area – including any archaeological findings that

would provide a glimpse of the past – was a key part of

that commitment.

Through consultations and interviews during the

environmental assessment process, the team learned

about various Aboriginal peoples’ historic use of the

land near Muskrat Falls. They recognized the possibility

that important cultural remnants could be buried within

the proposed project footprint, and determined to better

define the true archaeological potential of the site.

The Environmental and Regulatory Compliance Manager

with the Lower Churchill Project currently manages the

ongoing archeological assessment and recovery at Muskrat

Falls. Once Nalcor became aware that historical resources

may be present, the company needed to determine the

actual extent of those resources within the project footprint.

It was extremely important to Nalcor that the recovery of

any archaeological resources was completed before site

work could begin in a particular area.

In 2012, Nalcor hired Stantec Consulting Ltd. to complete

further assessment and move forward with excavation


of the identified archaeological sites. The process began

with a desktop review for historic resources potential.

High potential areas were flagged for field testing. Based

on this work, known sites were identified within the

project footprint.

In 2012, excavation began on the south side of the

river in the area to be developed for the power house

and spillway. The crew returned to the field in 2013 for

additional recovery work, including eight new sites on the

North Spur.

Working in a series of grids, a team of three archaeologists

and their field staff excavated areas by hand, then carefully

cleaned and stored all material. Only when all required

excavation was complete could equipment and machinery

be cleared to operate in the identified areas.

Through the recovery work that was carried out over the

past two years, archaeologists have uncovered significant

evidence of past occupation by Aboriginal peoples in the

area. More than 40,000 artifacts were recovered, including

hearths and pit features, stone tools, burnt food, bone, and

charcoal as well as some ceramics, representing ancient

Amerindian campsites in the area dating back to between

2,000 and 3,500 years ago.

Although the recovery work has now been completed in

the south area of the river, Stantec will continue to record

and analyze all remaining material using radiocarbon

dating and mapping. It will then hand all findings over to

the Provincial Archaeology Office for further examination.

Future archaeological recovery work is planned in 2014 and

2015 for additional sites in the reservoir area of the project.


Alternative Energy

WIND PROJECTS PROVIDE GREEN ENERGYTO ISLAND CONSUMERS

In 2009, in an effort to reduce emissions from burning

fossil fuels, Hydro increased its renewable generation.

Hydro has power purchase agreements for 54 MW of clean,

renewable wind energy on the island of Newfoundland.

The integration of wind power in Newfoundland has

broadened Hydro’s energy mix and allowed the company

to continue providing electricity at a reasonable cost.

Wind generation is an environmentally-friendly, pollution-

free and endless source of energy. It is clean and

leaves a small environmental footprint on the province.

On the island, wind generation will help reduce fossil-

fired generation at Hydro’s thermal generating station

in Holyrood.

On average, the annual environmental benefits from the

wind farms in St. Lawrence and Fermeuse are:

• Reduction in fuel consumption by about 300,000 barrels

• Reduction in sulphur dioxide emissions by nearly

700 tonnes

• Reduction in carbon dioxide emissions by nearly

160,000 tonnes

• Generation of green energy for the equivalent of up to

12,700 homes.

WIND-HYDROGEN-DIESEL ENERGY PROJECT

While the province has an abundance of renewable

resources, many coastal, isolated communities rely on

diesel-fueled generation systems for electricity generation.

In its efforts to reduce reliance on fuel-fired generation,

Newfoundland and Labrador Hydro (Hydro) has built one

of the first projects in the world to integrate generation

from wind, hydrogen, and diesel in an isolated electricity

system. The Wind-Hydrogen-Diesel Energy Project in

Ramea is a research and development project using

renewable energy sources and the Energy Management

System (EMS), to supplement the diesel requirements of

the island community.

This unique project has attracted attention from around

the world. Hydro continues to promote the renewable

energy and energy storage benefits of the project through

presentations at various workshops and conferences.

In 2013, operation of the EMS resulted in a significant

reduction in diesel fuel consumption and in a continued

focus on the collection of valuable operational data. Data

analysis has led Nalcor Energy to proceed with Phase II

of the project in 2014. The Atlantic Canada Opportunities

Agency, through its Atlantic Innovation Fund, will support

Phase II, a five-year project that will see the addition

of a Hydrogen Fuel Cell to the system, along with an

operational phase and a commercialization phase.


ALTERNATIVE ENERGY STUDY UNDERTAKEN IN COASTAL LABRADOR

From 2012 to 2015, Hydro will complete further analysis of

possible hydro generation sites and wind power potential

in this region. The hydroelectric study is focused on

possible hydro electric sites near Mary’s Harbour, Port Hope

Simpson, Charlottetown, Makkovik, and Hopedale. The

wind resource study is focused on wind power potential

near Cartwright, Makkovik, Hopedale, and Nain.

This initiative is guided primarily by the two main objectives

outlined in the Newfoundland and Labrador Energy Plan:

the protection of the environment through the reduction

of emissions and the development of energy projects in

the best long-term interests of residents of the province.


Energy Efficiency and Conservation

INTERNAL ENERGY EFFICIENCY

Offices

Hydro is always looking to reduce energy waste in

their facilities, and its main office, Hydro Place (HYP),

is no exception. In 2012, the Internal Energy Efficiency

Advisor (IEEA) identified a number of energy conservation

opportunities (ECOs) relating to the control of heating,

ventilation, and air conditioning (HVAC). Over the years,

the team responsible for HYP’s operation have consistently

maintained a focus on reducing HYP’s energy consumption

and improving facility performance. In addition to energy

savings, the ECOs have several other non-energy benefits,

some of which include increased occupant comfort, more

reliable operation of the HVAC system, and reduced wear

and runtime on HVAC equipment.

In 2013, the HYP facility operations team, with help

from the IEEA and controls contractors, placed a focus

on optimizing the operation of HVAC equipment while

improving occupant comfort (no new equipment was

installed; it was just controlled better). Their efforts

proved to be effective, with 2013 being the year that HYP

used the least amount of electricity since tracking began

in 2007. HYP used 420,000 kWh less electricity than the

previous year, which is equivalent to what 17 electrically

heated island homes use in a year, and it has reduced

consumption by 882,000 kWh since 2007. All electricity

consumption was normalized for weather. The focus

on further energy consumption reductions at HYP will

continue, while several of the regional offices have been

selected to undergo similar HVAC optimization initiatives

along with full lighting retrofits over the next two years.

Other

Hydro’s line depots and other support buildings are

relatively small structures and can have infrequent

occupancy; however, their annual consumption is more

than an average electrically-heated home. The largest

energy consumption categories at these sites are heating

and lighting. It has been a challenge to find cost-effective

commercial control solutions for these sites; however,

Hydro is continually evaluating proposed technologies to

meet their heating and lighting control requirements.

Hydro’s vision for these types of facilities is to install small

scale building automation systems (BASs) which will be

linked via a network, and observed and/or controlled via

one location. With that said, instead of waiting for an

ideal solution, Hydro has pushed forward to do what is

reasonable to achieve energy savings at these locations.

The company is installing stand-alone low voltage

control circuits with programmable thermostats so that

night setbacks are employed. This initiative is laying the

foundation for the company to realize maximum energy

savings in the future through the installation of small-

scale BASs and by networking the facilities together.


To reduce energy consumption associated with lighting,

staff are retrofitting T12 fluorescent fixtures with T8

ballasts and lamps. In 2013, heating setback control and

lighting retrofits were completed at three of the company’s

locations (Cow Head Line Depot, North Plant Depot, and

Bishop’s Falls Carpenter Shop).

GENERATION STATIONS

Thermal Generation

Holyrood Thermal Generation Station (HTGS) is used to meet

increased load on the island system during the heating season.

It is a large and complex site, with several support buildings.

Its marine terminal receives number 6 fuel shipments from

large tanker ships, and transfers the fuel shipment to onsite

storage tanks via a 1 km, 18 inch pipe line.

The entire length of the pipeline is fitted with an electric

heat trace system (EHTS) which keeps the contents of the

pipe at 60°C (140°F) year-round to maintain an acceptable

viscosity for pumping. Historically, the site only receives

tanker shipments in an eight-month window, and within

that timeframe, there can be several weeks to a month in

between deliveries. The EHTS provides an opportunity to

reduce energy consumption significantly just by reducing

the temperature set point of the EHTS outside of delivery

season, and in between deliveries.

In 2006, a consultant’s energy audit of various support

buildings and systems at HTGS calculated the annual

electricity consumption associated with the EHTS for the

fuel transfer line to be more than 980,000 kWh. In 2013, an

operation procedure was formalized with the sole purpose

of reducing energy consumption related to this system.

The Environment and Long Term Asset Planning

departments for EHTS, along with Hydro’s Internal Energy

Efficiency Advisor, developed and submitted a 2013 EMS

target to create an efficient control procedure for the new

heat trace system. HTGS personnel formalized a control

procedure that has temperature set points based on the

operating season and fuel properties. The new procedure

has two seasonal set points, 20°C (68°F) from October 1st

to May 1st (operating season), and 10°C (50°F) outside of

that time period.

The new efficient control procedure for the EHTS will result

in 344,000 kWh of annual electricity savings; this is equal

to what 13 electrically-heated island homes would use in

a year. The company has the potential to reduce further

energy consumption associated with the EHTS by more

than 200,000 kWh, when we control the temperature set

point with actual deliveries, as opposed to by season. This

will require further investigation to assess requirements

for implementation.

Isolated Diesel Generation

Hydro operates diesel plants in more than 20 isolated

communities. Wasted electricity at Hydro’s diesel

generation stations directly relate to increased diesel

consumption and emissions. A strong focus has been

placed on identifying ways to reduce station service

at these sites. The two largest energy consumption

categories at these sites are lighting and pumps and

fans. Hydro has planned capital projects to install variable

frequency drives on radiator fans over the next two years

to reduce station service loads significantly.

In 2013, the engine hall lighting at Paradise River Diesel

Plant was retrofitted from metal halide fixtures to T5

fluorescent fixtures with occupancy sensors. Control of

ventilation fans was improved at several sites to reduce

unnecessary fan operation, and metal halide exterior

wall packs were replaced with LED wall packs. In 2013,

Hydro chose an LED fixture for use in engine hall high bay

applications. The Charlottetown Diesel plant will be the

first site to install the new LED fixtures.

Hydraulic Generation

The company’s hydraulic generation stations vary greatly

from large hydro plants to mini hydro and from manned

stations to unmanned ones. There are also some very

remote structures with infrequent occupancy. Three of

the major energy consumption categories at these sites

with significant energy savings potential are: electric trace

heating, space heating, and lighting.

Staff identified an opportunity to reduce electricity

consumption associated with space heating in the penstock

inlet structures at the Bay d’Espoir plant. These structures

have very infrequent occupancy, and were equipped with


high wattage electric unit heaters with a knob on the back

of the heater to control temperature. Often, employees

would turn up a heater on a cold day, and then it would

be left at that temperature indefinitely. These types of

heaters can often be found operating in summer months.

In 2013, heater controls were installed to maintain the

space temperature in these structures at the precise,

minimum temperature required, and automatically reset

to that minimum temperature, after a delay, even if the

heaters are turned up.

Transmission & Distribution Facilities/Systems

Equipment used at terminal stations is reviewed continually

to improve efficiencies. Significant electricity loads at these

sites are lighting, heating, and compressed air systems.

In previous years, line selection for distribution and

transmission systems was based on reducing transmission

losses. While these projects have been executed with the

intention of improving overall efficiency of the system,

there is a gap in the communication of electricity savings

associated with these projects. A strong focus in the coming

years will be to ensure electricity savings associated with

any future transmission/distribution projects are properly

captured and reported.

ISOLATED SYSTEMS BUSINESS EFFICIENCY PROGRAM (ISBEP)

The ISBEP is offered to commercial customers in Hydro’s

isolated diesel and L’Anse aux Loup systems. In 2013,

more than 40 on site facility energy walkthroughs were

conducted with reports submitted to customers. These

reports identified no cost recommendations for electricity

savings and provided high-level opportunity assessments

for possible retrofit projects to complete through ISBEP.

The Program provides a custom approach that will allow

larger commercial customers to explore a wide range of

technologies suitable to their own operations, and let small

business to focus in on smaller more common projects

and technologies.

Hydro employees have completed walkthrough audits

on commercial facilities across many sectors and

currently there are projects involving lighting, process

improvements, refrigeration, and small equipment

upgrades. Hydro has taken an aggressive approach to

engagement with customers on this program, conducting

in person cold calls for walkthroughs, and providing

significant incentives to ensure customers take action.

The program components include financial incentives

based on energy savings, and other supports to assist

in opportunity identification and evaluation. Financial

incentives are based on the lower of $0.4/kWh first

year savings or 80% of capital project costs. By the end

of 2013, program staff had installed 2,176 residents and

commercial kits with a significant savings in energy. In

2014, the program will continue to focus on more ways

to save.


Commited to Our Communities

Nalcor is dedicated to the promotion of

environmental awareness and preservation

of Newfoundland and Labrador’s unique

environment. A priority for Nalcor is to

build and cultivate partnerships with other

agencies and organizations to achieve common

environmental objectives. These partnerships

maximize human and financial resources to

generate a body of knowledge and experience

that can be used for environmental decision-

making in a variety of applications.

CONSERVATION CORPS NEWFOUNDLAND AND LABRADOR

Since 1996, Nalcor and Hydro have supported 25 Green

Teams through Conservation Corps Newfoundland and

Labrador’s Green Team Program, employing almost 100

youth and contributing about $340,000 to support local

employment opportunities for youth throughout the

province. Though the two projects in Happy Valley-Goose

Bay and Flower’s Cove in 2013 had a different focus, they

all shared a common goal, as do all Green Teams, which

is to provide meaningful youth employment opportunities

with an environmental and cultural focus.

Happy Valley–Goose Bay Team – Illegal Dumping Prevention and Mud Lake Walking Trail Development

The Happy Valley-Goose Bay Green Team worked with

Healthy Waters Labrador to identify illegal dumping sites in

the Upper Lake Melville area. They created brochures and

other tools to raise awareness of how to properly dispose

of household items. The team also worked with the Town

of Happy Valley-Goose Bay to continue beautifying and

restoring the Mud Lake walking trail. This work included

spreading gravel, cutting brush, and creating viewing areas

of the beautiful Churchill River. Working with two different

organizations gave the team valuable work experience

and offered project variety.

Flower’s Cove – Sandy Cove Provincial Ecological Reserve Restoration

In 2013, the Flower’s Cove Green Team worked with

sponsors Newfoundland and Labrador Hydro and the

Limestone Barrens Habitat Stewardship Program to protect

the vulnerable and ecologically important limestone

barrens. The team used GPS technology to plot the three-

phase telephone poles from Flower’s Cove to the Sandy

Cove Lions Club; this information will help Hydro avoid

critical habitat during future pole repairs and replacements.

The team worked to restore the natural slope of the

land, which was disrupted many years ago when heavy

equipment damaged the landscape. The barrens were

also greened as the team collected more than 20 bags of

garbage and debris. The team carried out public education

to educate the community on the need to protect the

limestone barrens. The team also worked with researchers

from Memorial University to tag, identify, and count rare

flora and important fauna on the limestone barrens.

Documents

Nalcor Energy - 2013 Environmental Performance Report