AI-generated summary
· Application · 10/18/2010
Nova Scotia Power filed a capital project work order application for $796,383 in boiler upgrades at Trenton Generating Station Unit 5, revised down from a $1.55M budget estimate.
AI summary
- Nova Scotia Power submitted CI# 38724 seeking Regulatory Approval Processes approval for Capital Expenditures totalling $796,383 to replace targeted superheater, reheater, and boiler components at Trenton Generating Station Unit 5, timed to coincide with a planned 2010 steam turbine outage.
- The project scope was significantly reduced from the original ACE budget of $1,549,614 — a variance of $753,231 — primarily due to deferral of the blowdown tank replacement ($300K reduction), reduced SSH tube replacement scope ($350K reduction), and fewer boiler door replacements ($100K reduction), each justified by re-inspection findings showing slower-than-anticipated deterioration.
- The need for the work was grounded in a 2006 Life Extension Study and validated by annual boiler inspections in 2007, 2008, and 2009 conducted by Alstom; the 2006 study identified the secondary superheater outlet, reheat outlet assembly, and blowdown tank as requiring replacement for reliable unit operation.
- The economic analysis (Summary of Alternatives, CI# 38724) supported the 'Complete Boiler Upgrade' as the sole viable alternative, projecting a favourable NPV of approximately $1.45M and an IRR of 25.8% at a 6.55% after-tax WACC, based on avoided replacement energy costs from preventing an estimated two unplanned 48-hour outages annually.
- Portions of the filing (pages 28–41 and 47–56) were redacted on confidentiality grounds, with NSPI citing procurement sensitivity — specifically that disclosing contract and material cost estimates could enable suppliers to extract higher prices, harming ratepayers.
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What was filed
Documents filed on this day
- N-1 Redacted Work Order