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NSUARB approved Nova Scotia Power's $2,532,039 work order for the LM6000 hot section overhaul and service bulletin implementation on Tuft's Cove Unit 5, accepting NSPI's justification for a $1,045,809 cost overrun above the approved ACE Plan estimate.

M03507 · CI# 28752 - P-128.10 - NSPI WO - LM 6000 - Overhaul Tuft's Cove #5 Engine - $2,532,039
AI summary
  • The Nova Scotia Utility And Review Board issued a November 5, 2010 approval letter (Document No. 183332) for CI #28752, authorizing Nova Scotia Power Incorporated to proceed with the LM6000 hot section overhaul and Inlet Gearbox (IGB) assembly replacement at Tuft's Cove Unit 5 at a total cost of $2,532,039.
  • The project cost exceeded the original 2010 2025 Ace Plan budget estimate of $1,486,230 by $1,045,809, driven by four factors: 100% replacement of Stage 1 HPT turbine blades due to greater-than-expected material loss ($840,000 increase); higher-than-assumed Stage 2 nozzle unserviceability ($56,000); an 8% OEM material cost escalation since the original estimate; and inapplicability of discount rates used for the prior TUC #4 overhaul (CI #38402) due to TUC #5's longer running hours.
  • The Board had withheld approval in its May 11, 2010 ACE Plan Order pending receipt of adequate justification; following review of the September 2, 2010 work order submission and responses to staff Information Requests, the Board found the cost increase justified and the work necessary for safe and reliable operation.
  • The work scope encompassed 33 OEM-recommended service bulletins (including SB-220 for the IGB spline wear issue and SB-215 for HPT Stage 1 blade replacement) performed concurrent with the commissioning of TUC #6 to minimize replacement energy costs; delay was assessed as carrying high risk of unplanned failure and 50 MW derating, with avoided costs estimated at $463,835 (2010) and $4,911,189 (2011).
  • Operating and capital history disclosed in IR-G3 responses showed TUC #5 accumulated 5,808 operating hours and generated 248,845 MWhrs in 2009 alone, with the only prior comparable overhaul being the TUC #4 hot section completed in 2009 at a cost of $4.2M after 1,100 hours since its previous overhaul.

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What was filed

Documents filed on this day

  • N-1 Redacted Work Order 9/8/2010 exhibits
  • 05687 Board Decision Letter 11/5/2010 key_documents
  • 05687 Board Decision Letter 11/5/2010 other_documents