N.B. Power floats 2nd refurbishment of Point Lepreau nuclear plant

N.B. Power is suggesting a "second refurbishment" of the Point Lepreau nuclear generating station might be possible around the year 2041, if an expensive five-year plan to fix ongoing problems from the first refurbishment works out favourably.

"However, such an extension is not being proposed at this time," the utility added as part of an evidence package it submitted to the New Brunswick Energy and Utilities Board for an upcoming rate hearing.

N.B. Power is in the early stages of applying for a 20.6 per cent power rate increase over two years, 9.8 per cent per year, to rescue its flagging financial results and reduce debt.

Some of that new money is needed to boost spending on Point Lepreau to improve on years of disappointing production.

The plant is N.B. Power's most important base-load generator but it has suffered numerous problems since emerging from a multibillion-dollar, four-and-a half-year refurbishment in 2012.

"Recent extended and unplanned outages at the Point Lepreau Nuclear Generating Station ... are continuing to negatively impact the utility's financial situation," N.B. Power wrote in its evidence.

"N.B. Power has struggled to sustain high levels of performance despite investments before, during and post refurbishment."  

The nuclear station, originally commissioned in 1983, had a disappointing production record in its first 25 operational years that has continued over the last decade, despite a major overhaul of its reactor and nuclear components between 2008 and 2012.

In the 11 years between 2013 and 2023, Lepreau suffered 400 more days of downtime than expected, costing the utility up to $1 billion in lost production and repair costs that have been battering the utility's finances.

Some of that excess downtime was caused by scheduled maintenance outages that took longer than planned, and about half were "forced loss" days caused by sudden and unexpected breakdowns at the plant.

In a frank and sometimes unflattering self-critique of that record in its rate filing, N.B. Power blamed aging equipment and a variety of other issues, including its own leadership failures, as contributing to the chronic production problems. 

It acknowledges that fixing shortcomings will be both expensive and time-consuming.

To that end, N.B. Power is budgeting for 428 outage days at Lepreau, both planned and unplanned, over the next five fiscal years — 313 for scheduled maintenance and repairs and 115 for ongoing forced losses caused by sudden equipment failures.

In its original projections coming out of refurbishment in 2012, N.B. Power had envisioned 205 down days during those same five years, including 55 days caused by forced outages.

In its most recent annual report, N.B. Power said that "major" pieces of equipment at the plant, that were not upgraded as part of the refurbishment, have "run well beyond their design life of 30 years" and have been susceptible to "sudden failure."

Despite spending several hundred million dollars on maintenance and repairs at the plant since refurbishment to address that problem, the utility, in its new filing, acknowledges it has not been able to get ahead of equipment failures.

"The rate of completed maintenance at the station has steadily improved year over year, yet the rate of equipment degradation has gradually exceeded this," it wrote.  

Adding to that, N.B. Power said it has been working on "human performance" at the plant, including trying to improve "station leadership behaviours" and "thoroughness of decision-making."

The utility does not say what leadership issues were causing performance problems, but last September the utility parted ways with its former vice-president nuclear, Brett Plummer, who oversaw the operation of Lepreau for eight years.

Although providing no details, it now claims the plant is being better managed.

"Recent changes to the leadership team will increase focus on behaviours that will lead to world-class performance,"  states the evidence.

N.B. Power said if improvements at Lepreau go according to plan over the next five years, it expects to have the nuclear plant running — as was originally planned — after the refurbishment by the summer of 2029.  

Given setbacks to date, the utility said it will then take until March 2041 for Lepreau to reach its full operational life expectancy of 210,000 "full power hours" but suggests with improvements being implemented, a second life-extension might be possible.

"These processes and operating practices would facilitate potential strategic efforts to extend operation beyond 210,000 [hours] and/or conduct a second refurbishment," wrote N.B. Power.