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UARB approved Nova Scotia Power's $381,736 unforeseen and unbudgeted work order for emergency refurbishment of the Lingan Generating Station Unit 3A circulating water pump

M03428 · CI# 39623 - P-510 - NSPI WO - LIN-U&U CW Pump Refurbishment $381,736
AI summary
  • The Unit 3A Circulating Water Pump at Lingan Generating Station failed in March 2010 due to a broken shaft at the coupling taper, causing bearing and running surface damage; the pump was removed from service and sent to an ISO 9002 repair facility (CI# 39623, Work Order N-1).
  • Nova Scotia Power Inc submitted the $381,736 Capital Expenditures request on July 30, 2010 under the Unforeseen and Unbudgeted (U&U) process (P-510), citing risk of unit de-rating or forced outage if the second pump also failed during warmer months when both pumps are required to maintain condenser vacuum.
  • The refurbishment scope included a new chromed stainless pump shaft, new marine bearings, re-surfacing of corroded components, and installation of an additional bearing to reduce shaft whipping — the root cause of the failure (Work Order N-1, project justification section).
  • An alternatives analysis ranked pump refurbishment ($381,736) ahead of full pump replacement ($640,000 capital) based on NPV/EVA, with the refurbishment option yielding a PV of EVA of approximately $14.64 million and an IRR of 376%, with a discounted payback of 1.3 years (Work Order N-1, Summary of Alternatives).
  • The Nova Scotia Utility And Review Board approved the full $381,736 amount on August 16, 2010, finding the decision to repair and refurbish prudent based on the economic analysis and the necessity of a speedy return to full service (Board Decision Letter, August 16, 2010).

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What was filed

Documents filed on this day

  • N-1 Non-Confidential Work Order 7/30/2010 exhibits
  • 05002 Board Decision Letter 8/16/2010 key_documents
  • 05002 Board Decision Letter 8/16/2010 other_documents