NPCC MARITIMES AREA INTERIM REVIEW OF RESOURCE ADEQUACY

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NPCC MARITIMES AREA INTERIM REVIEW OF RESOURCE ADEQUACY December

Executive Summary This is the Maritimes Area Interim Review of its Triennial Review of Resource Adequacy. This review covers the years 2006 to 2009, and it follows the resource adequacy review guidelines as outlined in the NPCC B-8 Document Guidelines for Area Review of Resource Adequacy. The Maritimes Area consists of the regions of New Brunswick, Nova Scotia, Prince Edward Island, and Northern Maine. Results of this review show that the Maritimes Area will comply with the NPCC resource adequacy reliability criterion in years 2006 to 2008, as was the case in the Triennial Review. In 2009, the Maritimes Area requires 20 of additional capacity to meet the NPCC resource adequacy criterion, whereas the Triennial Review had a deficiency of 240. The smaller 2009 deficiency in this review is primarily due to a reduced load forecast for all years. Major System Changes Point Lepreau Refurbishment In the Triennial Review, it stated that the planned refurbishment of the 635 Point Lepreau Nuclear Generating Station was awaiting approval. Final approval for New Brunswick Power Corp. to proceed with this project was given by the New Brunswick provincial government in July. This planned refurbishment requires an 18-month outage of the station, beginning in April 2008 with completion by November 2009. Second International Power Line to New England In the Triennial Review, it stated that construction of a second tie between New Brunswick and New England was expected to begin in the Fall of, with a planned in-service date of Fall of 2006. The updated schedule for this project is for construction to begin early in 2006, with a targeted in-service date by December 2007. It is expected that this second tie will increase the transfer capability between New Brunswick and New England by 300 in each direction. Wind Development In the Triennial Review, it stated that the installed wind capacity in the Maritimes was 47, with plans to develop an additional 130. Recent announcements by the provinces have targeted almost 1000 of wind development in the Maritimes by 2016. New Brunswick has announced a target of 400 of wind capacity by 2016, Nova Scotia has targeted 380 by 2014, and PEI has targeted 60 by 2010. 2

Load Forecast In the Triennial Review, the 2006 coincident peak load forecast was 5654 with a forecast annual growth rate of 1.43%. The updated 2006 coincident peak load forecast is lower at 5599 with a lower forecast annual growth rate of 0.79%. Table 1 shows the year by year comparison of these load forecasts. Winter Peak (Month of February) Table 1 Load Forecast Comparison Interim Review Triennial Review Difference 2006 5599 5654-55 2007 5645 5744-99 2008 5713 5828-115 2009 5732 5900-168 Average Annual Compound Growth Rate Four Year Period 2006-2009 2006-2009 Growth rate 0.79% 1.43% Generation Resources Changes in the outlook for generation resources in the Maritimes Area include the following: The 19 Wheelabrator wood fired plant is not retiring in, and has a planned life extension out to at least 2009. The 23 Caribou oil fired plant is to be brought out of its mothball state and reactivated for all years of this review. The refurbishment of Tuft s Cove, providing an additional 52, is now planned for 2009 instead of 2006. Point Lepreau derations in years 2006 to 2008 are slightly greater in this study. Minor capacity additions are planned for small hydro facilities. Some small incremental capacity increases are planned for the Lingan coal plant. Table 2 shows the year by year generation resources forecast for this review compared to the last Triennial Review. 3

Winter Peak (Month of February) Table 2 Generation Resources Comparison Interim Review Triennial Review Difference 2006 6694 6688 6 2007 6720 6734-14 2008 6716 6725-9 2009 6212 6147 65 Assessment of Installed Capacity Requirements The Maritimes Area uses a 20% reserve capacity planning criterion. Due to changes in the load forecast and the planned generation resources, the reserve outlook is higher in all years for this review as compared to the Triennial Review. Table 3 shows a comparison of the planned and required reserve for this review. Month Of February Installed Capacity Table 3 Comparison of Planned and Reserve Forecast Coincident Peak Interruptible Load Planned Reserve Reserve % % 2006 6694 5599 530 1625 32.1 1014 20.0 2007 6720 5645 533 1608 31.5 1022 20.0 2008 6716 5713 544 1547 29.9 1034 20.0 2009 6212 5732 547 1027 19.8 1037 20.0 Due to the higher planned reserve numbers, the outlook for Loss of Load Expectation (LOLE) is lower in all years for this review as compared to the Triennial Review. Table 4 shows the year by year LOLE results for this review and the Triennial Review, along with the required interconnection support to meet the NPCC reliability criterion. 4

Calendar Year Table 4 Maritimes LOLE and Interconnection Expected Number of Firm Load Disconnections (Days/Year) Interim Triennial Review Review Interconnection Interim Triennial Review Review 2006 0.006 0.010 0 0 2007 0.007 0.012 0 0 2008 0.017 0.047 0 0 2009 0.113 0.380 20 240 To evaluate whether the Maritimes Area could meet the NPCC reliability criterion without exceeding intra-area transmission capability limits, the system was split into two sub-areas, one on each side of the New Brunswick - Nova Scotia interconnection. This is the only intra-area transmission line that is subject to congestion. Table 5 shows the LOLE for the Nova Scotia sub-area, along with the available sub-area support and required external interconnection support. In all years, the Nova Scotia subarea meets the NPCC reliability criterion without any external interconnection support. Calendar Year Table 5 Nova Scotia LOLE and Interconnection Expected Number of Firm Load Disconnections (Days/Year) Total Total Available From NBSO External Interconnection 2006 0.027-75 0 0 2007 0.016-105 0 0 2008 0.025-80 0 0 2009 0.017-100 0 0 Table 6 shows the LOLE for the NBSO sub-area (New Brunswick, PEI, and Northern Maine), along with the available sub-area support and required external interconnection support. In 2006 and 2007, the NBSO sub-area does not require external interconnection support to meet the NPCC reliability criterion. In 2008 and 2009, the NBSO sub-area requires external interconnection support of 160 and 340 respectively. These requirements are primarily due to the planned 18-month outage for Point Lepreau 5

beginning in April 2008, but they are well within the 1500 import capability of the Maritimes. Calendar Year Table 6 NBSO LOLE and Interconnection Expected Number of Firm Load Disconnections (Days/Year) Total Total Available From Nova Scotia External Interconnection 2006 0.144 50 75 0 2007 0.180 80 105 0 2008 0.718 240 80 160 2009 2.234 440 100 340 Conclusion Results of this Interim Review show that the Maritimes Area will comply with the NPCC resource adequacy reliability criterion in years 2006 to 2008. In 2009, this review shows that the Maritimes Area requires 20 of additional capacity to meet the NPCC resource adequacy criterion, whereas the Triennial Review had a deficiency of 240. The smaller deficiency in this review is primarily due to a reduced load forecast for all years. Analysis of the sub-areas of the Maritimes shows that the Nova Scotia sub-area meets the NPCC reliability criterion in all years, but the NBSO sub-area (New Brunswick, PEI, and Northern Maine) will require external interconnection support of 160 and 340 in years 2008 and 2009 respectively. These requirements are primarily due to the planned 18-month outage for Point Lepreau beginning in April 2008, but they are well within the 1500 import capability of the Maritimes. 6