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Acts and Regulations

2012-58 - Point Lepreau Refurbishment Project Deferral Account

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Revoked on 1 October 2013

NEW BRUNSWICK

REGULATION 2012-58

under the

Electricity Act

(O.C. 2012-187)

Filed May 25, 2012

Under section 149 of the Electricity Act, the Lieutenant-Governor in Council makes the following regulation:

Repealed: 2013, c.7, s.168

Citation

1This Regulation may be cited as the Point Lepreau Refurbishment Project Deferral Account Regulation - Electricity Act.

Definitions

2The following definitions apply in this Regulation.

“Act” means the Electricity Act.(Loi)

“deferral account” means the deferral account established and maintained by the Distribution Corporation under section 143.1 of the Act.(compte de report)

“Modified Transaction Scheduling and Settlement system” means the Transaction Scheduling and Settlement system, modified to calculate an estimate of the fuel and purchased power costs of the Generation Corporation in a simulation in which the Point Lepreau nuclear generating station continues to operate throughout the out of service period.(système logiciel modifié d’ordonnancement et de règlement des transactions)

“Nuclear PPA price” means the price, per MWh, established under the agreement dated October 1, 2004, and known as the “New Brunswick Power Distribution and Customer Service Corporation and New Brunswick Power Nuclear Corporation Power Purchase Agreement - Point Lepreau Nuclear Generating Station”, which price is as follows:( Prix PPA nucléaire)

(a) for the fiscal year ending March 31, 2008, - $53.19 per MWh;

(b) for the fiscal year ending March 31, 2009, - $53.71 per MWh;

(d) for the fiscal year ending March 31, 2011, - $54.35 per MWh;

(e) for the fiscal year ending March 31, 2012, - $54.92 per MWh;

(f) for the fiscal year ending March 31, 2013, - $55.81 per MWh; and

(g) in each subsequent fiscal year, as adjusted for changes in the Consumer Price Index in accordance with the formula established in the agreement.

“out of service period” means the period of time beginning when the Point Lepreau nuclear generating station is out of service due to the project until such time that the station returns to normal service.(période d’interruption de service)

“project” means the project to refurbish the Point Lepreau nuclear generating station.(projet)

“replacement electricity” means the electricity supplied by the Generation Corporation to the Distribution Corporation that, but for the project, would in the normal course have been supplied to the Distribution Corporation by the Nuclear Corporation from electricity generated at the Point Lepreau nuclear generating station during the out of service period.(électricité de remplacement)

“Transaction Scheduling and Settlement system” means the software system of the Generation Corporation in which the actual fuel and purchased power costs of the Generation Corporation are recorded and which is used to schedule all the transactions for the purchase and sale of energy and capacity and to allocate the actual fuel and purchased power costs and the revenues earned from out-of-province sales to each transaction.(système logiciel d’ordonnancement et de règlement des transactions)

Determining the costs and expenses of replacement electricity

3(1) In determining the costs and expenses that are related to replacement electricity, the Generation Corporation shall

(a) determine its actual fuel and purchased power costs during the out of service period based on the Transaction Scheduling and Settlement system, and

(b) determine the estimated fuel and purchased power costs during the out of service period based on the Modified Transaction Scheduling and Settlement system.

3(2)The difference between the actual fuel and purchased power costs referred to in paragraph (1)(a) and the estimated fuel and purchased power costs referred to in paragraph (1)(b) is the costs and expenses related to replacement electricity.

Methodologies, modelling guidelines and assumptions

4In determining the costs and expenses that are related to replacement electricity, the following methodologies, modelling guidelines and assumptions apply:

(a) any must-run requirement for the Coleson Cove generation facility that is imposed by the SO as a result of the project shall be removed from the Modified Transaction Scheduling and Settlement system;

(b) in the event that the Coleson Cove generation facility Unit 3 is operated to perform testing related to new fuel blends of petroleum coke and heavy fuel oil, the operation shall be considered as must-run in the Modified Transaction Scheduling and Settlement system;

(c) the Point Lepreau nuclear generating station shall be assumed to produce 3,898 GWh for the fiscal year ending March 31, 2009, resulting in an annualized capacity factor of 73.55%, and in subsequent fiscal years shall be assumed to produce 3,804 GWh annually, resulting in an annualized capacity factor of 71.78%; the monthly allocation of annual production shall be based on historical guidelines for planned and forced outages and unit derates; the quantity of energy for the first and last month of the out of service period shall be prorated by taking into account the start and end date of the out of service period and the number of days in the month;

(d) a monthly adjustment of the financial impact of hedging activities related to fuel, energy purchases and foreign exchange shall be calculated on a pro rata basis, considering the changes in the quantity and sources of energy supplied by the Generation Corporation during the out of service period and the actual hedge positions in fuel, energy purchases and foreign exchange held during the out of service period;

(e) except as provided for the Dalhousie generation facility, in both the Transaction Scheduling and Settlement system and the Modified Transaction Scheduling and Settlement system, fuel costs shall be based on an average inventory pricing model, in which purchases in current periods are added to the average price calculated in the prior period, in order to arrive at a current average price; fuel costs in the Modified Transaction Scheduling and Settlement system shall be reflective of the estimated fuel purchases in the simulation; for fuel consumed at the Dalhousie generation facility, in the Transaction Scheduling and Settlement system, fuel costs shall be based on the average inventory pricing model, and the average price of fuel shall be deemed to be the average price of fuel in both the Transaction Scheduling and Settlement system and the Modified Transaction Scheduling and Settlement system;

(f) the contracts awarded by the Generation Corporation to Hydro Quebec on March 2, 2007, for the purchase of firm capacity and energy for the period commencing on December 1, 2008, and ending on March 31, 2009, shall be excluded from the Modified Transaction Scheduling and Settlement system, except the purchase of firm capacity and energy totaling 50 MW and 37,200 MWh in December 2008, 150 MW and 111,600 MWh in January 2009 and 150 MW and 100,800 MWh in February 2009;

(g) the Modified Transaction Scheduling and Settlement system shall include those firm energy purchases that would have been made even if there had not been an out of service period; contracts for all other energy purchases made to replace energy from the Point Lepreau nuclear generating station, if not economic, shall be excluded from the Modified Transaction Scheduling and Settlement system;

(h) export sales volumes shall be assumed to be the same in both the Transaction Scheduling and Settlement system and the Modified Transaction Scheduling and Settlement system;

(i) operating reserve requirements shall be assumed to be the same in both the Transaction Scheduling and Settlement system and the Modified Transaction Scheduling and Settlement system;

(j) hydro generation shall be adjusted in the Modified Transaction Scheduling and Settlement system to move excess hourly hydro generation to subsequent periods to avoid spilling as a result of load conditions and electricity system operating constraints;

(k) transmission losses shall be assumed to be 0.65% lower in the Modified Transaction Scheduling and Settlement system for the months of December, January and February and 1% lower in all other months; and

(l) unless otherwise specified in these methodologies, modelling guidelines and assumptions, all other factors, including load conditions and electricity system operating constraints, shall be consistent with standard electric utility practices, and shall be assumed to be the same in both the Transaction Scheduling and Settlement system and the Modified Transaction Scheduling and Settlement system.

Determining the offset amount referred to in paragraph 143.1(7)(c) of the Act

5In determining the amount referred to in paragraph 143.1(7)(c) of the Act, the offset amount shall be calculated by applying the Nuclear PPA Price to the quantity of replacement electricity supplied during the out of service period.

Commencement

6This Regulation shall be deemed to have come into force on March 28, 2008.

N.B. This Regulation is consolidated to October 1, 2013.