Reliability of power winter supply puts Newfoundland 'at mercy of weather': report

An independent consultant is questioning ifthe brand new Labrador Island link can be counted on to supply power to Newfoundlandthis coming winter

In June,Nalcor Energy confirmed it had successfully sent power from Churchill Falls to the Avalon Peninsula through its more than 1500-kilometre link, but now the Liberty Consulting Group says it doesn't expect the linkwill be up and running consistently this winter.

Poor performance at the Holyrood thermal generating station increases the risk of outages considerably.- Liberty Consulting Group

In a report prepared for the PUB,Liberty says that Nalcor consistently reported that the $3.4-billion link from Muskrat Falls to Soldiers Pond would be available this winter, but now there is a strong possibility that will not be the case.

"What we have learned supports a conclusion that the Labrador Island Link is unlikely to be reliably in commercial operation at the start of the winter," says the report dated Aug. 30, 2018.

The link relies on software provided by General Electric but Liberty says there are lingering questions about GE's ability to ensure the necessarysoftware will be in place this fall.

"At an August meeting, company representatives did not express confidence in GE's ability to meet an in-service date for the Labrador Island Link of mid-November," says the report.

Liberty also says testing the link for a brief period this spring and fall doesn't demonstrate long-term reliability.

"The link will remain prone to the uncertainties any new major facility faces early in its operating life, especially one involving technology new to the operating company," according to the report.

Holyroodtrouble

The report goes on to say island residents should also be worried about the reliabilityof the troubled Holyrood facility a facility that's important whendemand for energy is high during winter months.

Liberty says "poor performance at the Holyrood thermal generating station increases the risk of outages considerably."

The group's report concludes the deteriorating condition of Holyrood is a major threat to the island's power supply and Liberty says that threat "could produce very severe consequences when the Labrador Island Link is unavailable."

The consultant says questions about the Labrador Island Link's readiness combined with concerns about the reliability of Holyroodmay mean power outages.

"This all suggests that, for at least part of this winter, the island interconnected system may be at the mercy of the weather."

• Power knocked out for tens of thousands in Newfoundland

The consultant's report also includes fiverecommendations to the PUB.

In essence,Liberty is calling forthe board to direct Newfoundland and Labrador Hydroto make plans for the possibility that the link won't be available this winter. It's also calling on hydro to do more to improve the reliability of its other assets, such asHolyrood.

Response to Liberty's report

NalcorCEO Stan Marshall defended the Crown corporation's winter preparedness in an email statement to CBC.

"The right level of planning and investment has been made for our existing equipment so we can continue to meet all of our customer electricity needs for this coming winter season," he wrote.

Regarding the Labrador Island Link, Marshallcalled for patience.

"This is new technology for our province and integrating the new transmission assets into our current electricity system is complex work that takes time," he said.

There is also a more detailed response from Newfoundland and Labrador Hydro whichwas sent to the province's Public Utiltiies Board.

Hydro says it will keep testing the Labrador Island Link and increasing the megawatts that are wheeled through it. It also saysin October it will begin to give the PUB regular reports on the link's anticipated in-service date.

The consultant'sreport and the response to it are available on the PUB's website.