CAPITAL EXPENDITURE FORECAST (CEF05-1) 2005/ /16

Transcription

1 CAPITAL EXPENDITURE FORECAST (CEF05-1) 2005/ /16 FINANCE & ADMINISTRATION CORPORATE CONTROLLERS DIVISION OCTOBER, 2005

2 FOREWORD The Capital Expenditure Forecast (CEF05-1) is a projection of Manitoba Hydro s capital expenditures for new and replacement facilities to meet the electricity and natural gas service requirements in the Province of Manitoba as well as expenditures required to meet firm sale commitments outside the province. Expenditures included in the Capital Expenditure Forecast will provide for an ongoing safe and reliable supply of energy in the most efficient and environmentally sensitive manner. In constructing and maintaining its capital facilities, Manitoba Hydro adheres to the principles of sustainable development. In this regard, the Corporation is a recognized leader in implementing the national climate change strategy and has made a commitment to voluntarily reduce its greenhouse gas emissions to 6% below 1990 levels over the period 1991 to As at the end of 2004, Manitoba Hydro reduced its cumulative average net emissions of greenhouse gases by 36.8 kilotonnes CO2 relative to the 1990 baseline (or 7% below the 1990 baseline). Manitoba Hydro has one of the most aggressive Demand Side Management (DSM) programs in North America and has further enhanced its program by effectively doubling its Power Smart energy savings targets previously set in Combined with savings achieved to date, the target is for electrical savings of 842 MW and 2637 GWh, to be achieved by On the natural gas side of the Corporation s business, plans are in place to significantly augment conservation programs so that targeted savings of 96 million cubic meters of natural gas will be achieved by 2018.

3 INDEX Page OVERVIEW... 1 FORECAST SUMMARY NEW GENERATION & TRANSMISSION WUSKWATIM GENERATION... 7 KEEYASK (GULL) GENERATING STATION LICENSING... 7 WIND GENERATION... 8 CONAWAPA STUDIES & LICENSING... 8 KELSEY G.S. IMPROVEMENTS & UPGRADES... 9 POINTE DU BOIS REDEVELOPMENT... 9 PLANNING STUDY COSTS BIPOLE III WESTERN ROUTE RIEL 230/500 kv STATION NORTHERN AC TRANSMISSION SYSTEM REQUIREMENTS DEMAND SIDE MANAGEMENT CAPITAL COSTS NEW HEAD OFFICE CORPORATE RELATIONS WATERWAYS MANAGEMENT PROGRAM POWER SUPPLY HVDC FACILITIES BIPOLE 1 THYRISTOR VALVE UPGRADE PROJECT CONVERTER TRANSFORMER BUSHING REPLACEMENT BIPOLE I & 2 ELECTRODE LINE MONITORING HVDC AUXILLIARY POWER SUPPLY DORSEY SYNCHRONOUS CONDENSER REFURBISHMENT BIPOLE 1 CHILLER REPLACEMENT DORSEY ASEA SYNC CONDENSER COOLER UPGRADE HVDC BIPOLE 1 ROOF REPLACEMENT HVDC SYST TRANSFORMER & REACTOR FP&P HVDC AC FILTER PCB CAPACITOR REPLACEMENT HVDC TRANSFORMER REPLACEMENT PROGRAM DORSEY 230kV RELAY BUILDING UPGRADE DORSEY EE SYNC CONDENSER GLYCOL COOLER UPGRADE HVDC STATIONS GROUND GRID REFURBISHMENT HVDC BIPOLE KV HRL CIRCUIT BREAKER REPL HVDC BIPOLE 1 POLE DIFFERENTIAL PROTECTION HVDC BIPOLE 1 BY-PASS VACUUM SWITCH REMOVAL HVDC BIPOLE 2 WELL WATER COOLING HVDC BIPOLE 1 SMOOTHING REACTOR REPLACEMENT HYDRAULIC REHABILITATION GREAT FALLS G.S. REHABILITATION PINE FALLS G.S. REHABILITATION LAURIE RIVER PLANT 1 AND 2 REHABILITATION JENPEG G.S. UNIT OVERHAULS (UNITS 1-6) POWER SUPPLY DAM SAFETY UPGRADES CEF05-1 SUMMARY BOOK

4 INDEX Page WINNIPEG RIVER CONTROL SYSTEM WINNIPEG RIVER RIVERBANK PROTECTION PROGRAM POWER SUPPLY HYDRAULIC CONTROLS SLAVE FALLS CREEK SPILLWAY REHAB KETTLE / LONG SPRUCE ROOF REPLACEMENT GREAT FALLS GS UNIT 4 MAJOR OVERHAUL GREAT FALLS 115KV INDOOR STATION SAFETY IMPROVEMENTS THERMAL REHABILITATION BRANDON GS UNIT 5 LICENCE REVIEW SELKIRK GS ANCILLARY SYSTEMS SELKIRK GS LICENCE REVIEW SELKIRK G.S. REHABILITATION FP&P HALON SYSTEMS PHASE-OUT PROGRAM POWER SUPPLY FALL PROTECTION PROGRAM OIL CONTAINMENT GENERATION TOWNSITE INFRASTRUCTURE SITE REMEDIATION OF CONTAMINATED CORPORATE FACILITIES NEW HIGH VOLTAGE LABORATORY DOMESTIC ITEMS - POWER SUPPLY TRANSMISSION AND DISTRIBUTION TRANSMISSION HERBLET LAKE > THE PAS 230kV TRANSMISSION WINNIPEG > BRANDON TRANSMISSION IMPROVEMENTS RIDGEWAY KV TRANSFORMER ADDITION ROSSER > SILVER 230kV TRANSMISSION NEEPAWA kV STATION RICHER SOUTH kV TRANSFORMER ADDITION PINE FALLS > BLOODVEIN 115kV TRANSMISSION LINE RIDGEWAY > SELKIRK 230kV TRANSMISSION WINNIPEG AREA TRANSMISSION REFURBISHMENT DORSEY 230 KV BUS ENHANCEMENTS PINE FALLS GREAT FALLS kV SUPPLY FLIN FLON AREA TRANSMISSION IMPROVEMENTS PHASE II ROSSER STATION kV BANK 3 REPLACEMENT SUBTRANSMISSION ST. BONIFACE PLESSIS Rd BANK 2 ADDITION BRANDON CROCUS PLAINS kV BANK ADDITION PERIMETER SOUTH STN DSC INSTALLATION PORTAGE SOUTH kV TRANSFORMER ADDITION HARROW STATION BANK 3 INSTALLATION WCD 66KV CIRCUIT BREAKER REPLACEMENT PROG DISTRIBUTION VIRDEN AREA DISTRIBUTION CHANGES DEFECTIVE RINJ CABLE REPLACEMENT BRERETON LAKE STATION AREA HOLLAND 8-25KV CONVERSION + DSC CEF05-1 SUMMARY BOOK

5 INDEX Page STONY MOUNTAIN NEW STATION MVA MOBILE TRANSFORMER PURCHASE WEST KILDONAN-COURT kV BANK ADDITION ROVER SUBSTATION REPLACE 4KV SWITCHGEAR MARTIN STATION NEW OUTDOOR STATION FROBISHER STATION UPGRADE BURROWS NEW 66kV/12kV STATION WCD U/G NETWORK TRANSFORMER REPLACEMENT WINNIPEG CENTRAL OIL SWITCH PROJECT WILLIAM STATION NEW 66KV/12KV STATION COMMUNICATIONS INTEGRATION OF SYSTEM CONTROL CENTRES SCC AUDIO CONSULS & SWITCH EQUIPMENT REPLCMT SITE REMEDIATION OIL CONTAINMENT STATION BATTERY BANK CAPACITY & SYSTEM RELIABILITY INCREASE RED RIVER FLOODWAY EXPANSION PROJECT DOMESTIC ITEMS T&D ELECTRIC GAS RISER REHABILITATION PROJECT DOMESTIC ITEMS T&D GAS CUSTOMER SERVICE & MARKETING AUTOMATIC METER READING - ELECTRIC DISTRIBUTION PCB TESTING & TRANSFORMER REPLCMT WINNIPEG DISTRIBUTION INFRASTRUCTURE REQRMNTS WCD U/G NETWORK ASBESTOS REMOVAL DOMESTIC ITEMS CS&M ELECTRIC AUTOMATIC METER READING - GAS DEMAND SIDE MANAGEMENT - GAS DOMESTIC ITEMS - CS&M GAS FINANCE & ADMINISTRATION CORPORATE BUILDINGS CUSTOMER INFORMATION SYSTEM HUMAN RESOURCE MANAGEMENT SYSTEM ENTERPRISE GIS PROJECT DOMESTIC ITEMS - FINANCE & ADMINISTRATION NON-CONSTRUCTION CAPITAL ITEMS CEF05-1 SUMMARY BOOK

6 CAPITAL EXPENDITURE FORECAST (CEF 05-1) ($ in Millions) 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 TOTAL ELECTRIC $538 $645 $746 $632 $750 $711 $741 $609 $725 $724 $6820 GAS TOTAL CEF 05-1 OVERVIEW Compared to CEF04-1, the total projected expenditure of $7135 million represents an increase of $1465 for the 10 year period to March 31, The net increase is comprised of the following: PROJECT TOTAL PROJECT INCREASE (DECREASE) POINT DU BOIS REDEVELOPMENT $ 692 $ 407 BIPOLE III WESTERN ROUTE WIND GENERATION WUSKWATIM GENERATION NEW HEAD OFFICE DEMAND SIDE MANAGEMENT - 70 CONAWAPA STUDIES &LICENSING KELSEY G.S. IMPROVEMENTS & UPGRADES COMMUNICATIONS - 45 PLANNING STUDY COSTS - 44 KEEYASK STUDIES & LICENSING DEMAND SIDE MANAGEMENT (GAS) - 36 ROSSER OAK POINT kV STN & BANK ADDTN HVDC BP1 SMOOTHING REACTOR REPLACEMENT BURROWS STATION NEW 66kV/12kV STATION HVDC AC FILTER PCB CAPACITOR REPLACEMENT CONAWAPA GS WATERWAYS MANAGEMENT PROGRAM - 13 ROVER SUB STN REPLACE 4KV SWITCHGEAR HVDC BP2 WELL WATER COOLING WILLIAM STATION NEW 66kV/12kV STATION HVDC BP1 BY-PASS VACUUM SWITCH REMOVAL ROSSER - SILVER 230KV TRANSMISSION HVDC TRANSFORMER REPLACEMENT PROGRAM 46 8 CORPORATE BUILDING PROGRAM - 8 DOMESTIC ITEM (ELECTRIC) - 7 ENTERPRISE GIS PROJECT 22 7 DOMESTIC ITEM (GAS) - 6 DORSEY SYNC CONDENSER REFURBISHMENT 17 5 PORTAGE S kV TRANSFORMER ADDITION 12 5 NORTHERN AC TRANSMISSION REQUIREMENTS 36 5 POWER SUPPLY DAM SAFETY UPGRADES 15 5 Miscellaneous additions/reductions netting - 58 $ 1465 Finance and Admin

7 CONSOLIDATED CAPITAL EXPENDITURE FORECAST (CEF05-1) (IN MILLIONS OF DOLLARS) FOR THE YEARS 2005/06 TO 2015/16 PROJECT TOTAL MAJOR GENERATION & TRANSMISSION WUSKWATIM GENERATION KEEYASK STUDIES & LICENSING CONAWAPA STUDIES &LICENSING CONAWAPA GS KELSEY G.S. IMPROVEMENTS & UPGRADES KETTLE G.S. IMPROVEMENTS & UPGRADES POINT DU BOIS REDEVELOPMENT PLANNING STUDY COSTS BIPOLE III WESTERN ROUTE RIEL 230/500KV STATION NORTHERN AC TRANSMISSION SYSTEM REQUIREMENTS DEMAND SIDE MANAGEMENT COST FLOW ADJUSTMENT MAJOR GENERATION & TRANSMISSION TOTAL NEW HEAD OFFICE CORPORATE RELATIONS WATERWAYS MANAGEMENT PROGRAM CORPORATE RELATIONS TOTAL

8 CONSOLIDATED CAPITAL EXPENDITURE FORECAST (CEF05-1) (IN MILLIONS OF DOLLARS) FOR THE YEARS 2005/06 TO 2015/16 PROJECT TOTAL POWER SUPPLY BIPOLE 1 THYRISTOR VALVE UPGRADE PROJECT CONVERTER TRANSFORMER BUSHING REPLACEMENT BIPOLE 1&2 ELECTRODE LINE MONITORING HVDC AUXILIARY POWER SUPPLY DORSEY SYNCHRONOUS CONDENSER REFURBISHMENT BIPOLE 1 CHILLER REPLACEMENT DORSEY ASEA SYNC CONDENSER COOLER UPGRADE HVDC BIPOLE 1 ROOF REPLACEMENT HVDC SYST TRANSFORMER AND REACTOR FP&P HVDC AC FILTER PCB CAPACITOR REPLACEMENT HVDC TRANSFORMER REPLACEMENT PROGRAM DORSEY 230 KV RELAY BUILDING UPGRADE DORSEY EE SYNC CONDENSER GLYCOL COOLER UPGRADE HVDC STATIONS GROUND GRID REFURBISHMENT HVDC BP2-230KV HLR CIRUIT BREAKER REPLACEMENTS HVDC BP1 POLE DIFFERENTIAL PROTECTION HVDC BP1 BY-PASS VACUUM SWITCH REMOVAL HVDC BP2 WELL WATER COOLING HVDC BP1 SMOOTHING REACTOR REPLACEMENT GREAT FALLS G.S. REHABILITATION PINE FALLS G.S. REHABILITATION LAURIE RIVER PLANT 1 AND 2 REHABILITATION JENPEG G.S. UNIT OVERHAULS (UNITS 1-6) POWER SUPPLY DAM SAFETY UPGRADES WINNIPEG RIVER CONTROL SYSTEM WINNIPEG RIVER RIVERBANK PROTECTION PROGRAM POWER SUPPLY HYDRAULIC CONTROLS SLAVE FALLS GS CREEK SPILLWAY REHABILITATION KETTLE GS / LONG SPRUCE GS ROOF REPLACEMENT GREAT FALLS GS UNIT 4 MAJOR OVERHAUL GREAT FALLS 115KV INDOOR STN SAFETY IMPROVMNTS BRANDON G.S. UNIT 5 LICENSE REVIEW SELKIRK G.S. ANCILLARY SYSTEMS SELKIRK G.S. LICENSE REVIEW SELKIRK G.S. REHABILITATION FP&P HALON SYSTEMS PHASE-OUT PROGRAM POWER SUPPLY FALL PROTECTION PROGRAM OIL CONTAINMENT GENERATION TOWNSITE INFRASTRUCTURE SITE REMEDIATION OF CONTAMINATED CORPORATE FACILITIES NEW HIGH VOLTAGE LABORATORY DOMESTIC ITEM POWER SUPPLY TOTAL

9 CONSOLIDATED CAPITAL EXPENDITURE FORECAST (CEF05-1) (IN MILLIONS OF DOLLARS) FOR THE YEARS 2005/06 TO 2015/16 PROJECT TOTAL TRANSMISSION & DISTRIBUTION HERBLET LAKE - THE PAS RALLS ISLAND 230kV TRANSMISSION WINNIPEG to BRANDON TRANSMISSION SYSTEM IMPROVEMENTS RIDGEWAY KV TRANSFORMER ADDITION DORSEY - LaVERENDRYE - ST. VITAL 230kV TRANSMISSION ROSSER - SILVER 230KV TRANSMISSION RAVEN LAKE STATION kV TRANSFORMATION NEEPAWA KV STATION RICHER SOUTH KV TRANSFORMER ADDITION PINE FALLS - BLOODVEIN 115kV TRANSMISSION RIDGEWAY - SELKIRK 230KV TRANSMISSION WINNIPEG AREA TRANSMISSION REFURBISHMENT DORSEY 230KV BUS ENHANCEMENTS PINE FALLS - GREAT FALLS KV SUPPLY FLIN FLON AREA TRANSMISSION IMPROVEMENTS PHASE ST. VITAL - STEINBACH 230kV TRANSMISSION ROSSER STATION kV BANK 3 REPLACEMENT BIRTLE SOUTH - ROSSBURN 66KV LINE ST. BONIFACE PLESSIS RD BK2 ADDITION BRANDON CROCUS PLAINS - BANK ADDITION PERIMETER SOUTH STATION DSC INSTALLATION PORTAGE SOUTH kV TRANSFORMER ADDITION HARROW STATION BANK 3 INSTALLATION WCD 66kV CIRCUIT BREAKER REPLACEMENT PROGRAM VIRDEN AREA DISTRIBUTION CHANGES DEFECTIVE RINJ CABLE REPLACEMENT BRERETON LAKE STATION AREA HOLLAND 8kV - 25kV CONVERSION & DSC STONY MOUNTAIN NEW kV STATION MOBILE TRANSFORMER WEST KILDONAN - COURT kV BANK ADDITION ROVER SUB STATION REPLACE 4KV SWITCHGEAR MARTIN STATION NEW OUTDOOR STATION FROBISHER STATION UPGRADE BURROWS STATION NEW 66kV/12kV STATION WCD U/G NETWORK TRANSFORMER REPLACEMENT WINNIPEG CENTRAL OIL SWITCH REPLACEMENT WILLIAM STATION NEW 66kV/12kV STATION COMMUNICATIONS INTEGRATION OF SYSTEM CONTROL CENTRES SYSTEM CONTROL - AUDIO CONSOLES & EQUIP REPLMT SITE REMEDIATION OIL CONTAINMENT STN BATTERY BANK CAPACITY & SYST RELIAB INCREASE RED RIVER FLOODWAY EXPANSION PROJECT DOMESTIC ITEM (ELECTRIC) GAS RISER REHABILITATION PROJECT DOMESTIC ITEM (GAS) TRANSMISSION & DISTRIBUTION TOTAL

10 CONSOLIDATED CAPITAL EXPENDITURE FORECAST (CEF05-1) (IN MILLIONS OF DOLLARS) FOR THE YEARS 2005/06 TO 2015/16 PROJECT TOTAL CUSTOMER SERVICE & MARKETING AUTOMATIC METER READING (ELECTRIC) DISTRIBUTION PCB TESTING & TRANSFORMER REPLACEMENT WINNIPEG DISTRIBUTION INFRASTRUCTURE REQUIREMENTS WCD U/G NETWORK ASBESTOS REMOVAL DOMESTIC ITEM (ELECTRIC) AUTOMATIC METER READING (GAS) DEMAND SIDE MANAGEMENT (GAS) DOMESTIC ITEM (GAS) CUSTOMER SERVICE & MARKETING TOTAL FINANCE & ADMINISTRATION CORPORATE BUILDING PROGRAM CUSTOMER INFORMATION SYSTEM HUMAN RESOURCE MANAGEMENT SYSTEM ENTERPRISE GIS PROJECT DOMESTIC ITEM FINANCE & ADMINISTRATION TOTAL BU COST FLOW ADJUSTMENT CONSOLIDATED CEF ELECTRIC CEF CENTRA GAS CEF CEF 05-1

11 NON-CONSTRUCTION CAPITAL EXPENDITURE FORECAST (CEF05-1) (IN MILLIONS OF DOLLARS) FOR THE YEARS 2005/06 TO 2015/ MITIGATION FLEET ACQUISITIONS HVDC SPARE TRANSFORMERS 11.0 REGULATORY SERVICES DORSEY AC SPARE TRANSFORMER 0.3 DEPRECIATION STUDY HOT WATER TANK PROGRAM (WH) NEW HEAD OFFICE LAND 1.6 GERDAU/MRM SVC CONTRIBUTION MILE CHANNEL CLEAN-UP 3.2 WATER LICENSES & RENEWALS PCBs - HVDC AC FILTER CAPACITORS NON-CONSTRUCTION CAPITAL CEF CEF

12 WUSKWATIM GENERATION $ $ 88.9 $ $ (37.7) $ $ (19.2) $ $ (22.7) $ $ 34.4 $ $ 27.6 Conduct environmental assessment, select site, obtain licensing, and acquire property to build and equip the following: Wuskwatim Generating Station (G.S.) with 3 generators and installed capacity to produce approx 210MW; transmission facilities on the Burntwood river upstream of Thompson; and a construction power station with a 230kV T/L to the G.S. Upgrade the Northern Manitoba 230kV transmission system to accommodate the additional output. This project protects the early in-service date (2011) to increase generation for export power purposes and ultimately domestic load requirements and to provide transmission capacity to to carry the full output to load anywhere in Manitoba, increase export sales revenue. Increased $88.9M due to addition of planning and licensing costs previously part of the Planning Studies item, financing costs attributable to contributions by the partnership and deferred in-service dates from 2010 to KEEYASK GENERATING STATION LICENSING $ $ 37.8 $ $(10.2) $ $ 23.8 $ $ 27.5 Activities necessary to obtain approval and community support to proceed with the construction of future generating station and associated transmission facilities. This project protects the early in-service date of 2013, to increase generation for export power purposes and ultimately domestic load requirements. Reflects current estimates for negotiating the Joint Keeyask Development Agreement (JKDA), completing engineering and environmental studies and preparing for the regulatory review process, while protecting the 2013 ISD. 7

13 WIND GENERATION $ $(168.7) $ $ (8.6) $ $ (47.4) $ $(74.7) $ $(35.0) Conduct studies to locate the best sites in Manitoba, determine their energy potential, and their cost to develop. Capitol project not required. Current plans are to purchase all wind generation requirements. CONAWAPA STUDIES & LICENSING $ $ 50.0 $ $ 8.3 $ $ 21.1 $ $ $ 12.1 Conduct engineering, environmental, economic, First Nation consultation and other studies required to obtain a license and all necessary approvals to construct the Conawapa Generating Station. This is to protect an in service date of Studies are needed to acquire approvals and licenses necessary to protect an in-service date of Increased to include studies & investigations, environmental & mitigation and training items 8

14 KELSEY GS IMPROVEMENTS & UPGRADES $ $ 44.4 $ $ 3.2 $ $ 17.8 $ $ 13.9 $ $ 14.2 Overhaul and uprate Units 1-7 including replacement of generator windings, model testing and runner replacements, bottom rings, discharge rings, transformers, and exciters, and upgrade the overhead crane. $ $ 12.9 Rerunnering presents the best economic solution for adding capacity and increasing efficiency at Kelsey G.S. The unit 2 gate inspection in 1997 established that the above mentioned work is required to ensure that the intake gates function as designed. Unit #5 stator winding has significant insulation damage. Overhauling the remaining Units will improve the increased output from 3.5MW to 11MW. Increased to reflect final major contract prices, additional Mgmt & engineering costs and infrastructure work, control & protection upgrades, inclusion of previously approved work revisions and higher metal prices. POINTE DU BOIS GS REDEVELOPMENT $ $ $ $ (4.7) $ $ (20.2) $ $ (16.2) $ $ 0.3 $ $ 35.7 Overhaul and re-runner unit #9. Construct a new four unit powerhouse, spillway and earthfill dams to replace existing facilities. Includes engineering & environmental studies, community consultation, obtaining regulatory approval, and construction, commissioning & de-commissioning of the facilities. Install a single circuit 115kV transmission line with 795 ACSR conductor from Rover to the intersection of GT1/ST2 & T/L right of way near the floodway (17KM), and from Pointe du Bois (Pointe) to GT1/ST2 T/L south of Lac du Bonnet (43KM), on salvaged corridor. Salvage 2 double circuit 66kV tower lines between Pointe & Rover Stn (124KM). Salvage Scotland Stn and rebuild installing new 66 &115kV structures, two kV 75/100/125MVA transformers, three 66kV 40MVA grounding transformers, seven 115kV & eight 66kV breakers and a masonry wall. Salvage P line terminations & four 66kV breakers at Rover Stn and rebuild installing one kV 75/100/125MVA transformer, one 66kV 40MVA grounding transformer, one 115kV and one 66kV breakers. Salvage ten 66kV breakers at Pointe Switchyard Stn and rebuild installing eight 115kV breakers and rebuilding bus to 115kV insulation. Provision for work required to continue to supply Bird and Bernic Lake after Pointe has been converted to 115kV. Install a second communications link from Pointe to Slave to the System Control Center. Unit #9 headcover is cracked, and the runners require replacement. These repairs provide a favourable payback and allow continued use until replaced. Pointe du Bois has a history of age related maintenance problems (first power 1911) and unit outages due to misalignment of turbinegenerator units, (believed to be caused by concrete growth). The Pointe du Bois Long-Term Planning OptionsReport #PP&D-05/01 recommends the Redevelopment Option. Redevelopment satisfies economic criteria, is the preferred technical alternative, and provides favorable net environmental and socio-economic benefits. Transmission improvements will provide a connection to the power grid which can handle maximum output, adequate capacity to the Winnipeg Central area and will meet corporate goals for safety. Communications: to meet NERC/FERC/MISO requirements. Scope has changed from the rehabilitation option to the redevelopment option. 9

15 PLANNING STUDY COSTS $ $ 6.5 $ $ 3.3 $ $ 1.0 $ $ (0.4) $ $ 0.1 Carry out assessments, conceptual designs and planning studies of potential supply options, and associated transmission. Areas of study include establishment of design parameters, structure layouts, support facilities, hydraulic model testing, exploration, data collection, environmental assessments and public input, schedules and cost estimates. In order to plan the development of the Province's resource potential and related projects, office studies, environmental assessments and field exploration have to be carried out. The results and technical designs are required to support the planning process. Reflects extension of Point du Bois Studies, addition of Wind Studies, Ontario Export Negotiations and the Alternative Energy program Distributed Generation General. BIPOLE III WESTERN ROUTE $ $ $ $ (3.0) $ $ (11.8) $ $ (12.7) $ $ (64.0) $ $ (55.5) Applying a Western Route T/L concept (west of lakes Winnipegosis & Manitoba) conduct environmental impact assessment, select route, acquire property for right of way and obtain licensing for Riel Stn, a +/-500kV dc line from proposed paralling site near Radisson and proposed Riel Stn, a 230kV ac line from Riel Stn to Dorsey Stn (normally operated at +/-500kV dc). Design and construct an HVdc transmission line (minimum length 1295KM) from Riel Converter Station (CS)to Conawapa CS, a CS at Conawapa (2000MW), six ac transmission lines from Conawapa CS to Henday CS ((approx 30KM) less three lines with Conawapa generation development) and a converter station at Riel (2000MW), including 3 synchronous compensators. This transmission project provides increased reliability to the Manitoba Hydro system. In normal steady state operation, it will also provide an increase in southern power at full load, due to decreased line losses (approx 78MW). Bipole III routing has been changed from an east of Lake Winnipeg to the west of lakes Winnipegosis and Manitoba and 2000MW of conversion facilities have been added. 10

16 RIEL 230/500kV STATION $ $ 1.6 $ $ (4.2) $ $ (6.5) $ $ (22.2) $ $ (20.3) $ $ 1.6 Sectionalize Dorsey to U.S. 500kV line D602F at Riel (on the southeast side of Winnipeg), establish station including a 230 and 500kV ring bus, the installation of a 230/500kV transformer bank and line reactors salvaged from Dorsey. The sectionalization of the 500kV line allows power to be imported during a catastrophic Dorsey outage, as well as an alternate path for power export during a Dorsey transformer outage. The in-service date has been deferred two years from 2010 to 2012 due to an extended environmental process, resulting in a delay in the expected license date. NORTHERN AC TRANSMISSION SYSTEM REQUIREMENTS $ $ 3.7 $ $ 5.0 Design and reconnect AC transmission facilities in Northern AC system to enhance transmission system capability as follows: Convert 138kV facilities (that were previously designed and constructed with 230kV operation potential) to 230kV operation in the Northern System. Add necessary 230kV equipment required to fully realize the benefits associated with the conversion. The proposed transmission upgrades will restore the ability of the transmission system to carry the accredited generation at Kelsey and Jenpeg to load. As well, the upgrades will provide sufficient additional capacity to permit the firm output at Kelsey to increase following proposed re-runnering and accommodate up to two Kettle units on the AC system to enhance HVDC reliability. Increased due to a six month delivery delay of the Ponton Static Var Compensator and four month deferrals due to technical problems at Jenpeg, to coincide with deferral of the Northern AC cross trip Project and drawing delays. 11

17 DEMAND SIDE MANAGEMENT $ $ 3.9 $ $ 5.7 $ $ 9.3 $ $ 11.2 $ $ 10.8 Manitoba Hydro s Demand Side Management (Power Smart) activities reflect the Corporation s commitment to be proactive in protecting the environment and to be a leading utility in promoting sustainable energy supply and service. When combined with savings realized to date, total electrical savings of 842MW and 2637GW.h are expected to be achieved through Manitoba Hydro s Power Smart initiative by 2017/18. The electricity DSM plan is cost effective as a resource option and is included in Manitoba Hydro s Power Resource Plan. Increased to implement aggressive DSM programs to capture market achievable DSM potential in Manitoba. NEW HEAD OFFICE $ $ $ $ 11.3 $ $ 45.7 $ $ 73.5 Construction of a 695,742 sq ft 22 storey Head Office in downtown Winnipeg. A new Head Office location is required to consolidate 1800 staff including Management and Administrative functions of Manitoba Hydro in a modern, centralized location. Increased to include base building construction costs for Board approved Design Scheme C, fit out and parking. 12

18 WATERWAYS MANAGEMENT PROGRAM $ $ 0.9 $ $ 0.9 $ $ 0.9 $ $ 0.9 $ $ 0.9 Waterways management, boat patrols and debris clearing programs. Manitoba Hydro is committed to be a leader in strengthening working relationships with Aboriginal people. The Waterways Management Program (WMP) includes activities related to boat patrols, debris clearing and supplementary works at Grand Rapids and Lake Winnipeg Regulation/Churchill River Diversion. Increased to include Fuel price increases, additional work at Grand Rapids, labour rate changes, safety improvements, and full year program operation. BIPOLE 1 THYRISTOR VALVE UPGRADE PROJECT $ $ $ 3.5 Replace Bipole 1 HVDC Mercury Arc Valve Groups 21, 22 and 23 with Thyristor Valves at Dorsey and Radisson stations. Continuing deterioration of the Mercury Arc Valves will make change-out of the remaining valve groups necessary to ensure system reliability. State-of-the-art Thyristor Valves will be used to replace all Mercury Arc Valves(6 valve groups) in three stages. This complex is the 3rd stage. Stage1(Valve groups 11&12), and Stage2(Valve Group 13) were completed in the early 1990s. Increased due to higher than anticipated cost of spares, deficiencies clean-up and salvage work. 13

19 CONVERTER TRANSFORMER BUSHING REPLACEMENT $ $ $ 0.1 Replace converter transformer bushings with NGK bushings, and purchase spares as follows: at Dorsey replace six 230kv AC, and six 25kv tertiary bushings; and at Radisson/Henday replace five 138kv, two 150kv, four 230kv, and three 15kv tertiary bushings, and purchase two 300kv and two 450kv spares. The bushing replacement program was undertaken due to failure of a 230kv bushing in Dorsey T21 A-phase converter transformer which resulted in costly repairs to the transformer, and loss of revenue due to the outage. Also during repair of Dorsey T31S converter transformer in Pauwel's Canada plant two out of two 230kv bushings being tested failed at far below the full test voltage. The manufacturers expected service life is 25 years. These bushings have all been in service more than 17 years. Replacement cost is justified when compared to transformer damage due to an in service failure. No revision. BIPOLE 1 & 2 ELECTRODE LINE MONITORING $ $ 0.1 $ 0.5 $ (0.5) $ 0.8 $ (0.8) $ $ $ $ 0.2 Install a Siemens pulse-echo electrode line fault detection system on Dorsey Bipole 1 and 2, Radisson Bipole 1 and Henday Bipole 2 Electrode lines. There is a need for detection of open circuit, faulted, or partially down electrode line conductors based on public safety concerns, possible damage to equipment, and the security of Bipole 1 and 2. Start date deferred one year and in service date two years due to resource availability. 14

20 HVDC AUXILIARY POWER SUPPLY UPGRADES $ $ $ 1.2 The review and upgrading of twelve battery banks and ten power centres at Dorsey, Radisson, and Henday Converter stations. Replacement of +/- 25VDC & 60VDC battery chargers and the 129VDC/60VDC inverters in Bipole 2 at Dorsey & Henday. Upgrading of the HVDC System Auxiliary Power Supplies is necessary to obtain maintenance outages for them without additional system costs and to maintain reliability of the HVDC System. This will allow Manitoba Hydro to maintain/increase firm energy sales and keep spinning reserve requirements to a minimum. Increased to cover additional design, material and construction costs and contingency associated with the Radisson Relay Bldg addition. Deferred 10 months. DORSEY SYNCHRONOUS CONDENSER REFURBISHMENT $ $ 5.0 $ $ 0.6 $ $ 2.2 $ $ 0.7 $ $ $ 0.1 Major inspection, re-wedging and overhaul of synchronous condensers SC7Y, SC8Y, SC9Y, SC21Y, and SC23Y. Replacement of coolers to restore original thermal performance on SC21Y, and SC23Y. Repair of corrosion problems and GEM80 PLC replacement on SC7Y, SC8Y and SC9Y. Modify the 600V transfer scheme for SC8Y, SC7Y & SC9Y. Synchronous condensers are required for proper operation of the HVDC system, voltage regulation of the southern AC system and to provide reactive power for power export to the USA. A major inspection and overhaul of each machine is necessary to prevent catastrophic failure, involving the rotors and rotor bolts as indicated by the failures of SC12Y in 1987 and SC11Y in The cost of repairing a failure when conbined with our inability to export power will well exceed the cost of major inspection and overhaul. Scope revised to add a modification to the 600V transfer scheme for SC8Y, SC7Y & SC9Y. Estimates for the remaining refurbishments have been increased to reflect actual cost experience with SC8Y refurbishment. 15

21 HVDC BIPOLE 1 CHILLER REPLACEMENT $ $ 1.7 $ $ (0.4) 2.9 $ $ 1.0 Replace Bipole 1 chillers at Dorsey with a well water system and at Radisson, with a non-cfc refrigerant unit. Retrofit existing pole 1 air handling systems at both sites, and replacing the P2 system and controls. Protecting the environment and reliability of the air conditioning systems are the criteria this project is based upon. In addition amendments to Manitoba regulation 103/94 (awaiting final approval), will require that beginning in 2005, CFC filled chillers must be replaced or converted to non-cfc refrigerant at the machines first overhaul (leaks or parts). This schedule allows for the work to be done during seasons when mechanical cooling is not required. Replacing and retrofitting the air handling systems will improve cooling effectiveness, achieve significant energy savings and improve reliability. Scope has changed to replacement of the Radisson Pole 1 Chillers from conversion. ISD has been deferred 16 months. DORSEY ASEA SYNC CONDENSER COOLER UPGRADE $ $ 0.6 $ $ (0.1) $ $ (0.3) 0.6 $ 0.6 Replace 36 glycol coolers and 72 fans on ASEA synchronous condensers SC21, SC22 and SC23 with new coolers capable of 10% greater glycol cooling capability. Upgrade 6 glycol pumps to match the flow requirements of the new coolers and upgrade the motor electrical equipment to meet the power requirements of the new fans. This project will safeguard the reliability of the Pole 2 synchronous condenser system, which is critical for the proper operation of HVDC system conversion equipment, voltage regulation of the southern AC system and to provide reactive power for export sales to the U.S.A. The existing glycol coolers are 30 years old and glycol leaks have required the coolers to be removed from service for repair. Replacement of the coolers supports protection of the environment by reducing the probability of reportable glycol leaks from developing. Increased to reflect higher design and installation interest costs, advanced equipment delivery and ISD deferrals. 16

22 HVDC BIPOLE 1 ROOF REPLACEMENT $ $ $ 0.2 $ $ $ $ Remove existing roofs over Bipole 1, valve groups 11, 12, 13, 21, 22, and 23 at Dorsey and Radisson Stn s. Design, supply, install and test replacement roofs, simultaneously, and during pre planned outages. The new roofs are to be two ply Modified Bitumen Membrane, with R20 insulating values and meeting FM Global fire spread and wind uplift requirements. The existing asphalt roofs were installed in 1970 and with maintenance, have exceeded their life expectancy (13.6 years). Damage to equipment due to water leaks, fire spread within a roof system, or high wind uplift and/or possible lost export sales could be very costly. Each of the six valve halls contains equipment valued at $7.0M. Cash flow revised to reflect 2005/06 outage schedule. HVDC SYST TRANSFORMER & REACTOR FP&P $ $ $ (0.7) $ $ 1.0 $ $ 0.2 The supply and installation of fire protection upgrades on 33 converter transformers and 8 smoothing reactors. The re-design and replacement of the deluge system on the Dorsey converter building south wall and the Henday converter building north east wall, and construction of a fire response building in a safe location at Dorsey C.S. To minimize the high risk of fire spread and catastrophic damage throughout the AC and DC switchyards and a potential transformer and revenue loss of an estimated $30 to $50 Million. To provide adequate fire protection for personnel in accordance with National Fire Protection Association (NFPA) Life Safety Code 101. Cash flow revised to reflect 2005/06 outage schedule. 17

23 HVDC AC FILTER PCB CAPACITOR REPLACEMENT $ $ (18.3) $ $ (6.4) $ $ (4.1) $ $ (7.3) 0.8 $ 0.8 The replacement of all BP1 & 2 AC PCB filled high power capacitors at the Dorsey, Radisson and Henday Converter Stations, with non-pcb replacement capacitors. We have experienced numerous PCB filled capacitor failures at HVDC Converter Stations. This results in requests for outages via SCC to allow for repairs. The catastrophic failure of a capacitor in an AC Filter Bank of BP2, would result in a pole outage. Manitoba Hydro is committed to being PCB free as outlined in Corporate policy statement CP486B. The capacitors will be 25 years old and are approaching the end of their usable life Cash flow revised to reflect soil remediation in fall 2008, and salvage of old capacitors removed from project and recorded as an asset retirement obligation. HVDC TRANSFORMER REPLACEMENT PROGRAM $ $ 18.7 $ $ (9.0) 8.4 $ $ $ 1.1 Replacement of Dorsey T41D, T22A & T22C, Henday T41S, T42S, and T32S and Radisson T12B, T12C, T22A and T11A converter transformers with spare converter transformers. Fortify the roadways/access corridor rail line at Dorsey and upgrade the rail spur at Radisson, to facilitate transformer moves. The replacement of these transformers will improve reliability, reduce potential outage costs, reduce risk from catastrophic failure, and allow assessment for possible further mitigative measures. Roadway/rail upgrades will reduce the safety risk and of an extended outage due to losing a transformer, an oil spill or damage to other equipment. Scope changed to include replacement of four critical transformers, T22A & T22C at Dorsey and T22A & T11A at Radisson from spares and fortify the roadways/access corridor rail line at Dorsey and upgrade the rail spur at Radisson, to facilitate transformer moves. 18

24 DORSEY 230KV RELAY BUILDING UPGRADE $ $ 0.3 $ $ (3.0) 2.4 $ $ 3.6 Upgrade the 230 kv relay building at Dorsey and provide mobile protection and control trailers. Upgrades to the building will reduce the risk of damage from weather related perils and limit the consequence of a bipole failure due to fire related perils. Mobile protection and control trailers will facilitate the quick restoration of service in the case of a catastrophic event to this or other relay buildings. Final ISD deferred 3 years to allow for study and costing of two additional alternatives. DORSEY EE SYNCHRONOUS CONDENSER GLYCOL COOLER UPGRADE $ $ (0.7) $ $ (0.6) $ $ (0.7) 0.6 $ 0.6 Replace 48 glycol coolers and fans on English Electric synchronous condensers SC11, SC12 and SC13 with new coolers capable of 10% greater cooling capacity. Upgrade 6 glycol pumps and motor electrical equipment for the new fans. The project will safeguard the reliability of the Pole 1 synchronous condenser system, which is critical for the proper operation of HVDC system conversion equipment, voltage regulation of the southern AC system and to provide reactive power for export sales to the U.S.A. By proceeding with the replacement of the Pole 1 synchronous condenser glycol coolers, the required machine cooling requirements will be assured in all operating conditions and the possibility of losing voltage support in the system from overheated/failed synchronous condensers will be avoided. Actual cost of coolers lower than estimated. ISD deferred six months. 19

25 HVDC STATIONS GROUND GRID REFURBISHMENT $ $ $ 1.2 $ $ 0.7 $ $ 0.7 Upgrade the existing ground grid systems at Dorsey, Radisson and Henday Stations. These upgrades improve the safety of Employees and Contractors working in and around the HVDC Converter Stations by ensuring that touch and step potential are within safe levels. Increased to reflect a more detailed estimate of construction costs. Dorsey ground grid addition & surface improvements deferred 1 year. HVDC BIPOLE 2 230KV HRL CIRCUIT BREAKER REPL $ $ $ 0.9 $ $ 0.5 $ $ (0.9) 0.2 $ 0.2 Replace existing BLG352C operating mechanisms on kV circuit breakers at Dorsey and Henday Stations with new BLG1002A operating mechanisms. BLG1002A operating mechanisms are designed to handle the frequent switching experienced by these 16 breakers, reduce repair and maintenance frequency and reduce the risk of failure. A breaker failure results in a bus outage and single contingency of the 230kV bus. There is a Bipole outage risk, if bus B1 or B2 at Dorsey is out of service for any reason. System reliability will be improved. Increased to reflect terms of major material contracts. 20

26 HVDC BP1 POLE DIFFERENTIAL PROTECTION $ 3.3 $ 0.2 $ 3.1 Prepare an engineering report to determine all possible options, scope of work, cost analysis, and detailed cost estimate. Implement the preferred option at both Dorsey and Radisson Stations. Upgrading BP1 Pole Differential Protection is necessary to eliminate healthy pole blocks, thus reducing outages and increasing availability. This project supports the goal of transmission reliability. New project. HVDC BP1 BY-PASS VACUUM SWITCH REMOVAL $ 9.9 $ 1.6 $ 1.6 $ 3.3 Remove the existing By-Pass Vacuum Switch (BPVS) and By-Pass Switch (BPS) and replace both with a single By-Pass Switch at Dorsey and Radisson Stations (BP1 valve halls). The equipment is nearing the end of its service life and requires substantial maintenance. By-Pass Vacuum Switches were part of the replaced mercury arc valves switching scheme. The new Thyristor valves may be more reliably served by other types of switches, thus reducing the forced outage rate. New project. 21

27 HVDC BP2 WELL WATER COOLING $ 10.8 $ 2.7 $ 6.9 $ 1.1 Remove existing air conditioning systems at Dorsey and Henday, in the BP2 valve halls, maintenance blocks and administration areas. Replace with well water supplied air conditioning systems. The present systems are nearing the end of their service life, maintenance is increasing, and also the likelihood of costly valve outages. In addition the present systems contain R-22 (an ozone depleting substance). New project. HVDC BP1 SMOOTHING REACTOR REPLACEMENT $ 20.1 $ 4.9 $ 5.0 Remove existing oil-filled BP1 smoothing reactors (4 each) at Dorsey and Radisson and replace with new air core reactors. Existing BP1 smoothing reactors are nearing the end of their service life. Replacement will ensure continued availability and reliable operation of the HVDC system. Removal of oil filled reactors will reduce the risk of oil spills and fires within the workplace. New project. 22

28 GREAT FALLS G.S. REHABILITATION $ $ 0.7 $ $ 0.2 $ $ 0.3 $ $ 0.3 Overhaul the intake gates including; major roller train mods, new bulkhead gate sections, new balancing valve, and upgrade hoists and controls for emergency closure. Replace main water passage components (bottom ring, discharge ring and draft tube liner),install new propeller type runner, rewind generator, replace synchronization & add ground protection to all units, provide new transformer & replace stn service high side transformers, modify servomotors, install a high pressure oil lift system, and modernize to present standards. The existing intake gates and hoists cannot provide reliable emergency closure functions as they have the potential to malfunction during an emergency. In addition, draft tube liner is failing and is in urgent need of replacement. The outage will be used to replace the seventy year old runner with a larger, more efficient unit. While the generator was rewound forty years ago, many of the electrical components are original equipment from the 1920's. Scope increased to add replacement of generator synchronization, redundant field ground protection to all units and replacement of the stn service high side current transformers. Increased also to cover deficiencies for unit 3 overhaul and required additional delays, gate & hoist contract, plant staff and haulage services work PINE FALLS G.S. REHABILITATION $ $ 4.2 $ $ (0.9) $ $ (5.9) $ $ (4.3) $ $ $ 6.4 Rehabilitation, replacement of and addition to various electrical and mechanical equipment and systems such as; spillway mechanical components, station service upgrade, station lighting, 11kv cable replacement, spillway electrical distribution, water system, air system, transformer lightning arrestors and station drawings. Replace Unit #1and #2 turbine runners with more efficient new design runners, rebuild existing servomotors for increased wicket gate opening allowing more discharge, and rewind the generator stators utilizing modern insulating materials. Conduct a model test and up-rate study. Assessment of the electrical and mechanical systems has identified concerns in terms of obsolete equipment, safety, fire risk and adaptability to present day operating conditions and standards. Upgrading is necessary to ensure reliable safe and economical operation.pine Falls consistantly spills more water than the other Winnipeg River plants. Additional generation can be obtained (approximately 17%) with increased discharge capability. Tests have confirmed that the 2 stator windings are in danger of failure at any time. Increased to include T&D electrical construction labour, addition of a model test and a unit up-rate study, actual costs to date and a two year deferral. 23

29 LAURIE RIVER PLANT # 1 AND # 2 REHABILITATION $ $ 1.1 $ $ 1.1 Rehabilitation, replacement of and addition to various civil works, electrical and mechanical equipment and systems such as ; concrete and structures, supervisory control system, vehicle storage building, bailey bridge, road, airstrip, electrical/ mechanical systems upgrade, 2.3kv breakers and installation of heated frost walls on two structures. Assessment of the civil, electrical and mechanical systems has identified concerns in terms of deterioration, obsolete equipment, safety and fire risk.upgrading is necessary to ensure reliable safe and economical operation. Scope change to include the design and installation of heated frost walls on both the centre and south gravity structures. JENPEG G.S. UNIT OVERHAULS $ $ (0.1) $ $ $ $ $ Major overhaul of units 1-6 to inspect, repair, modify and replace components of the turbine/generator. Areas of concern; journal bearings, thrust bearings, turbine seals, servo-motors, wicket gate seals and bushings, waterhead and oil head, stator and rotor, auxiliary systems. A complete overhaul is required to ensure reliable operation of the units when maximum power requirements on the system are essential. No revision. 24

30 POWER SUPPLY DAM SAFETY UPGRADES $ $ 5.7 $ $ 2.9 $ $ 1.9 $ Perform necessary engineering design and remedial construction, to upgrade generating stations to present day dam safety standards; (1) Kettle Generating Station upgrade main and saddle dams for freeboard (2) Kelsey Generating Station armour plating at spillway rollways, erection of heated hoist housing, insulating of spillway gates, upgrading of dykes, upgrading of spillway feeders and electrical systems at the spillway and upgrading of the station service transformers due to increased loading. 3) Southern Generating Stations - capital works identified in the dam safety certification process or identified through observation & discussion with staff. Work is required to correct deficiencies to all the plants, to operate in a safe and reliable manner. Program expanded to include Slave Falls diesel backup power. WINNIPEG RIVER CONTROL SYSTEM $ $ 0.7 $ $ (0.1) 0.6 $ $ $ $ 0.2 Upgrading or replacement of, and additions to, various items of electrical and mechanical systems and equipment. Items included are: Great Falls GS - DC distribution, and unit control, metering and relaying. Seven Sisters GS - U#4-U#6 AVR replacement, and unit control, metering and relaying. Pine Falls GS 250 VDC distribution, and station control. Mcarthur Falls GS station annunciator upgrade, 250 VDC distribution, and station control. Engineering assessment of the electrical and mechanical systems in these stations has identified obsolete equipment, safety, fire risk and adaptability to present day operating conditions and standards and the requirement for upgrading work. Production south have identified the need for an integrated system for control of all the Winnipeg River stations, therefor this complex has been created to co-ordinate the design and installation of the various systems and System Control Centre's requirement for data acquisition. To cover the completion of outstanding UCMS deficiencies, DC distribution upgrades and deferred in-service dates. 25

31 WINNIPEG RIVER RIVERBANK PROTECTION PROGRAM $ $ $ 0.2 $ Placement of rock protection and construction of slope stabilization to reduce erosion of riverbank along the Winnipeg River. The work includes inspection, design, mapping, land acquisition and remedial construction at Pine Falls and McArthur Falls. Provision of riverbank protection and stabilization work along the Winnipeg River and tributaries between Seven Sisters forebay and Manitou Rapids from erosion partially due to hydraulic operations. No revision. POWER SUPPLY HYDRAULIC CONTROLS $ $ (0.1) $ $ $ $ Install an optimization system to run all thirty-nine units at Kesey, Kettle, Long Spruce and Limestone at their most efficient gate opening. Install a Decision Support System (DSS) to provide accurate short-term Hydro scheduling (water resource management) and feedback information. Install required automation, remote control, and protective devices for unmanned operation. By increasing unit efficiency the corporation can; reduce or delay the need for capital expenditures for new plant; increase export net revenues; improve financial strength; and protect the environment. Automation and remeote control will reduce the the need for shift work and staff requirements to support that need. No revision. 26

32 SLAVE FALLS GS CREEK SPILLWAY REHAB $ $ (0.1) $ $ $ $ Rehabilitation, including extensive concrete repairs and anchoring of structures at the Slave Falls creek spillway. Existing spillway concrete is severly deteriorated and requires extensive repairs to ensure ongoing safe operation of the spillway. No revision. KETTLE/LONG SPRUCE GS ROOF REPLACEMENT $ $ $ (2.3) $ $ (0.2) 2.6 $ 2.6 Remove the existing roofing & deluge systems at Kettle & Long Spruce (excluding the SF6 bldg) and design, supply, install, provide supervision and roof testing, replacement of deluge system and installation of fall arrest systems. The Kettle & Long Spruce (excluding the SF6 bldg) roofs were installed in 1970 and 1975 respectively. Regular maintenance and minor repairs are becoming cost prohibitive. On several occasions there have been roof leaks on or near live electrical equipment. Replacement is required to provide a reliable and dependable source of power. In-service dates for both Kettle and Long Spruce deferred one year. 27

33 GREAT FALLS GS UNIT 4 MAJOR OVERHAUL $ $ (0.2) $ $ $ (0.1) $ $ (0.1) $ Major overhaul to unit #4 including: generator rewind, turbine runner replacement, new water passage embedded components, new single phase unit transformer and modernization of components. The re-runnering and major overhaul provide an opportunity to upgrade/modernize the unit while taking advantage of an already planned outage for the intake gates. The re-runnering will add both capacity and efficiency. The existing transformer is in poor condition and water passage components are starting to fail. The overhaul will increase reliability and extend the asset life 40 to 50 years. No revision. GREAT FALLS 115KV INDOOR STATION SAFETY IMPROVEMENTS $ $ $ (1.4) $ $ 1.6 Improve electrical safety clearance in the 115kV switching gallery by replacing the air blast breakers with separate current transformers (CT s) with smaller dead tank SF6 breakers with integral CT s, raise potential transformer (PT) equipment, install Lexan insulating panels to improve the separation between buses, improve grounding provisions, and adding safety screens around disconnects. The indoor switching gallery has many instances of electrical clearances which are less than the absolute minimum limit of approach and do not meet the minimum standard outlined in the Manitoba Hydro safety book. The risk factor is unacceptable because there is the potential for a fatality. to include block wall removal. 28

34 BRANDON G.S. UNIT 5 LICENCE REVIEW $ $ 0.3 $ $ (1.0) $ $ (5.7) $ $ $ 3.6 Renewal of Brandon G.S. unit #5 (Manitoba environment act license) is required for continuing operation beyond April Executive approved the project as part of the approval of the 1999 power resource plan. License renewal requires minor plant refurbishment. The timing and extent of additional future environmental regulatory changes is uncertain. However, it is estimated that addition of the following equipment will be required: 1. Installation of low nox burners by 2006/07 to reduce nitrous oxide emissions. 2. Installation of continuous emission monitoring (CEM) equipment by 2006/07. The base case conservatively assumes that environmental controls must be installed prior to Should the need for additional controls be identified during the licensing process or subsequently thereafter, the economic viability of such controls will be assessed accordingly. Unit #5 plays an important role in Manitoba Hydro's system, contributing economic generation and enhancing system reliability. Continued operation is necessary to meet domestic load and export commitments beyond Ash management, burners and continuous emission monitoring deferred. SELKIRK GS ANCILLARY SYSTEMS Inc/(dec $ $ $ 3.2 Convert Selkirk GS to natural gas fuelled operation, including the engineering, equipment and tasks necessary to obtain environmental approval. In addition, contribute to the construction of a natural gas pipeline from Ile des Chenes to Selkirk GS. Decommissioning of ancillary systems (ash lagoon & coal stockpile). This conversion project will reduce or eliminate atmospheric and aquatic emissions from the plant. Scope change to include decommissioning of ancillary systems (ash lagoon & coal stockpile). 29

35 SELKIRK GS LICENCE REVIEW $ $ 0.5 $ $ (0.4) $ $ (0.2) $ $ (12.1) $ $ $ 12.2 The project includes acquisition of the license and possible installation of a cooling tower. This project is considered to be the second phase of the conversion of the Selkirk G.S. from operation on coal to operation on natural gas in The first phase was completed assuming that Selkirk's operating license would be renewed when it expires in The benefits of phase 1 (fuel switching) and this project are strongly dependent on obtaining a new license for operation beyond The licensing process will determine if a cooling tower is a requirement for operation at that time. If it is, the economics of operation beyond 2005 will be reviewed and rejustified. Provides assurance that the station will be able to operate as planned (with the addition of the cooling tower). Yields an IRR of more than 10%, and provides long term southern system reliability benefits. Cooling tower construction postponed three years and condenser re-tubing one year. SELKIRK G.S. REHABILITATION $ $ $ 1.6 Inspection and overhaul of the unit 1 & 2 high and low pressure generator and turbines, replace automatic voltage regulators (AVR) with static pilot exciters. Unit 1 overhaul to include blade modifications, generator and steam chest repairs, generator and turbine material, and bearing refurbishment. Unit 2 overhaul to include completely dismantle, inspect (including a LP turbine ultrasonic), reassemble (with new HP turbine seals and generator material), dynamically balance and recommission. The overhaul is presently five years beyond its recommended inspection interval. Proper operation of AVR s is a manditory requirement as a member of interconnected operation, and these are beyond repair. Scope increased to include generator and steam chest repairs, and additional turbine materials. ISD deferred 7 months. 30

36 FP&P HALON SYSTEMS PHASE-OUT PROGRAM $ $ 11.1 $ (11.1) $ $ (0.2) $ $ (0.3) $ $ 4.5 Phase-out of CFC and Halon uses, and dispose of all corporate Halon systems. Replace with approved state-ofthe-art alternative technologies such as water and gaseous based systems. Replacing the existing Halon Fire Protection Systems with approved alternative technologies improves the HVDC, hydraulic, and diesel systems availability, minimizes the risk of extremely expensive outage and repair costs and minimizes lost revenue. Halon replacement is becoming a mandatory requirement through Federal and Provincial environmental Regulations and Legislation. National Fire Protection Association (NFPA) Life Safety Code 101 requires the adequate provision of fire protection where, in addition to equipment, the human element is also involved. Start date deferred 1 year. POWER SUPPLY FALL PROTECTION PROGRAM $ $ 0.1 $ $ (0.7) $ $ (0.5) $ $ (0.3) 2.6 $ 2.6 Implement fall protection for Power Supply stations (excludes switchyards, includes 4 diesel sites), in compliance with Provincial Regulation 189/85 under Workplace Safety and Health Act W210. Provincial regulation requires employers to establish fall protection systems for work performed where there is danger of falling more than 2.5 meters into unprotected operating machinery or in/onto hazardous substances and objects. In-service date extended 1 year to March

37 OIL CONTAINMENT - POWER SUPPLY $ $ 0.5 $ $ (1.1) $ $ 0.2 $ $ 2.1 $ $ 0.1 $ $ (0.2) Modifications and/or additions are required to prevent and contain oil spills: 1) southern and northern hydraulic generating stations, install oil/water separators, modify drainage systems, and upgrade sump, fuel storage facilities and dyking systems. 2) converter stations, install an oil containment system to collect and recover any oil spilled within the station and encapsulate oil filled transformers/smoothing reactors at the three HVDC stations to stop gasket leakes. Previous experience with oil spills requires the Corporation to demonstrate "due diligence" with respect to containing and minimizing the potential for any further occurances. In addition, any plant outage as a result of a spill represents a minimum loss of $5000/hr. In-service dates for Radisson and Henday Phase 2 deferred one year. GENERATION TOWNSITE INFRASTRUCTURE $ $ 1.6 $ $ (0.4) $ $ (0.4) $ $ (0.1) $ $ (0.3) $ $ (0.4) Gillam townsite: a) Interior and exterior retrofit of 66 Corporate houses. b) Replace 40 doublewide trailers on basements with RTM homes and construct 32 new housing units over 8 years. c) Construct a new shopping centre. (possibly in partnership) Grand Rapids: Upgrade and modify existing sewer and water infrastructure and install a new sewage force main from the powerhouse to the townsite lagoon. Gillam infrastructure evaluation lists substandard: water quality, sewage treatment, water and sewer lines, asphalt repairs,rec facility, trailer park improvements and town office building renovations. Grand Rapids water supply is below standards in quality & reliability. The townsite sewer system is overtaxed resulting in basement flooding, and the aging powerhouse system needs upgrading to reduce pollution risk and maintenance costs. No revision. 32

38 SITE REMEDIATION CONTAMINATED CORPORATE FACILITIES $ $ $ 0.1 $ $ $ 0.1 $ $ (0.1) $ $ (0.1) Conduct geotechnical investigation of the various contaminated Corporate facilities and remediate contaminated areas to environmentally acceptable limits Environmental concerns and/or regulations require that Corporate facilities be investigated and remediated to restore them to a level which permits unrestricted use of the site. Reflects investigation, assessment and remediation of historical sites and accommodation of Property Dept requirements. NEW HIGH VOLTAGE LAB $ $ $ 0.1 $ Build a new high voltage laboratory incorporating existing 600kV 60 Hz and 1250kV direct-voltage test supplies at 1840 Chevrier Blvd. (Waverley Service Centre). This facility will enable Manitoba Hydro to meet present industry standards (CAN/CSA C , CAN3-C13- M83, CAN/CSA C225-00, and the recently adopted IEC ) for testing of all bushings, instrument transformers and aerial lift devices. It will also improve the efficiency and safety of our insulation testing practices through the elimination of unnecessary travel and set-up time associated with our current use of the Pine Falls GS and ABB s leased facilities. Both of which are inadequate for our needs. Testing to industry standards is expected to reduce the occurrence of costly and dangerous in-service failures, safeguard the reliability of our power supply and enhance safety during live line work. This facility will bring the department one-step closer to its vision of being a recognized industry Centre of Excellence in insulation engineering and related diagnostic testing service. No revision. 33

39 DOMESTIC ITEM - POWER SUPPLY $ $ 0.1 $ $ $ $ This complex consists of several hundred projects which are not identified as Major Items and whose individual cost is of a relatively small amount. The majority of projects are required to provide safe reliable and efficient power supply and HVDC facilities, and to replace plant facilities whose useful life has been exceeded. Enhancements or rehabilitation to the power supply facilities will ensure a safe reliable and efficient source of energy. Minor revision. HERBLET LAKE - THE PAS 230 KV TRANSMISSION $ $ (0.6) $ 5.8 $ (5.8) $ $ 5.4 $ $ (0.9) $ $ (1.6) Perform environmental assessments and route selection, design and construct transmission and terminal facilities to provide firm supply to Flin Flon Cliff Lake and The Pas Ralls Island as follows: Transmission: 230 KV line 160 KM Herblet Lake - The Pas Ralls Island. Terminations: Extend 230 KV facilities at Herblet Lake and The Pas Ralls Island stations. Communications: Upgrade and co-ordinate with existing Herblet Lake and The Pas facilities. The line is required to provide firm supply and voltage support for increasing Flin Flon and The Pas area loads. Deferred six months. 34

40 WINNIPEG to BRANDON TRANSMISSION SYSTEM IMPROVEMENTS (DORSEY- PORTAGE SOUTH) $ $ 1.1 $ $ 0.2 $ $ 0.1 Perform environmental assessments and route selection, design and construct transmission and terminal facilities to provide firm supply to Portage South as follows: Transmission: 230 KV line 70 KM Dorsey - Portage South, 230 KV double circuit line with only one side strung. Terminations : Extend 230kV facilities at Dorsey and Portage South. Install three 10 MVAR, 66 kv capacitor banks at Portage South. Extend the 66 kv facilities with the addition of one breaker, one selector switch, three circuit switchers, three disconnect switches, and associated equipment. Replace one existing 66 kv breaker Install a 4th 54 MVAR, 115 kv capacitor at the Brandon G.S. to match the existing installation of capacitors, including the associated circuit switcher and disconnects Communications: Integrate with existing facilities at Dorsey and Portage South stations. These facilities provide improvements required to supply Western Manitoba area future load growth. No change. Reflects revised activity and overhead rates. RIDGEWAY KV TRANSFORMER ADDITION $ $ 0.2 $ 0.5 $ (0.5) $ $ 1.2 $ $ (0.1) $ $ (0.6) Design and construct terminal facilities at Ridgeway as follows: Terminations: Extend 230 & 66 KV facilities at Ridgeway station, including 3rd KV 125 MVA transformer and circuit breakers. This transformer is required in 2009 to supply increased Winnipeg load. Deferred one year. 35

41 ROSSER - SILVER 230 KV TRANSMISSION $ $ 6.3 $ $ 9.3 $ $ 0.2 Perform environmental assessments and route selection, design and construct transmission and terminal facilities to provide firm supply to Silver stn as follows: Transmission: Construct 230kV line 89 km Silver to Wpg. Connect to unused former line A4D 15 km north of Rosser. Open 230kV lines D36R & R23R at Rosser North & South Corners. Connect end of former A4D to Rosser end of former R23R at Rosser S Corner to create Rosser-Silver circuit. Construct 2.0 km 230kV line from Rosser and connect to Ridgeway end of R23R at Rosser N Corner to re-establish Rosser-Ridgeway line R23R. Connect open ends of D36R to former R23R at Rosser N & S Corners to re-establish Dorsey-Ridgeway line D36R. Terminations: Extend 230kV facilities at Rosser and Silver. Extend 66kVfacilities at Silver to terminate previously installed spare kV transformer #1 Replace line protection at Ashern. Communications: Integrate with existing facilities at Rosser and Silver. This complex provides transmission system improvements for firm supply to Silver station. Increased 6.3M due to poor soil (necessitating addition of 104 concrete caissons), abnormally high contract prices, more detailed scope of work, addition of input from System Performance, Scada and Interleke N Construction groups, wet summer conditions, and requirement for winter construction. NEEPAWA KV STATION $ $ 0.1 $ $ Perform environmental assessments and route selection, design and construct terminal facilities to provide firm supply to Neepawa as follows: Transmission: Sectionalize 230KV T/L D54C into Neepawa 230kV Stn, creating Dorsey-Neepawa and Neepawa -Cornwallis 230kV circuits. Build a 66KV tie line between the new 66KV terminal and the Existing 115/66/kV Station Terminations: Establish Neepawa KV station, including three 230kV circuit breakers, a 50/66/83.3/93.3 MVA, KV LTC transformer, six 66KV circuit breakers and associated equipment. Adjust line protection equipment at Dorsey and Cornwallis 230KV stations. Terminate two 230kV transmission lines to Dorsey and Cornwallis. Communications: Integrate with existing facilities at Neepawa, Dorsey, and Cornwallis 230KV stations. These facilities provide transmission improvements required by 2011 to supply Neepawa and related Western Region future load growth. Reflects revised activity and overhead rates. 36

42 RICHER SOUTH KV TRANSFORMER ADDITION $ $ 4.5 $ $ 0.9 $ $ 2.8 $ $ (0.3) Design and construct terminal facilities at Richer South as follows:terminations: Extend 230 and 66 KV facilities at Richer station, including a 2nd KV 93.3 MVA OLTC transformer, two 230kV circuit breakers, a 40 MVA grounding bank and station integration technology. The second KV transformer is required to provide firm supply to distribution station load in the Richer area. Scope increased by addition of two 230kV breakers to provide individual termination for the second transformer and complete the 230kV ring and to include station integration technology. PINE FALLS BLOODVEIN 115 KV TRANSMISSION $ $ 0.9 $ $ $ $ $ 0.1 Perform environmental assessments and route selection, design and construct transmission and terminal facilities to provide 115 KV supply to Bloodvein station as follows: Transmission: Construct 115 KV line 80 km Pine Falls-L48 to L5 Tap near Manigotagan. Disconnect L48 from L5 at tap location and connect L48 to new line, converting L48 from 66 KV to 115 KV operation up to Bloodvein. Terminations: Extend 115 KV facilities at Pine Falls. Replace 66 KV transformers at Loon Straits with KV 500 KVA transformers and modify station for 115 KV supply. Construct KV station at Bloodvein, including KV 28 MVA transformers. This complex provides increased transmission capacity required to supply Lake Winnipeg East area load increases. Reflects revised activity and overhead rates. 37

43 RIDGEWAY SELKIRK 230 KV TRANSMISSION $ $ 0.5 $ $ $ $ 0.1 Perform environmental assessments and route selection, acquire property and obtain licences, design and construct transmission and terminal facilities to provide support to Selkirk station as follows: Transmission: 230 KV double cct. Line strung one side only 23 km Ridgeway to Selkirk. Terminations: Construct 230 KV station at Selkirk G.S. 115 KV station site, including KV 250 MVA OLTC transformer and associated 230 KV and 115 KV circuit breakers. Extend 230 KV facilities at Ridgeway. Communications: Integrate with existing facilities at Ridgeway and Selkirk. This complex provides a 230 KV supply into the Selkirk area to alleviate customer voltage flicker problems and increase system support to the Rosser - Parkdale Selkirk area. Reflects revised activity and overhead rates. WINNIPEG AREA TRANSMISSION REFURBISHMENT $ $ 0.1 $ $ 0.3 $ $ $ (0.1) $ $ (0.1) $ Refurbish KM of double circuit and KM of single circuit 230 and 110 KV transmission lines in the Winnipeg area. Refurbish 16.9 KM of double circuit and 49.2 KM of single circuit 63.5 KV subtransmission lines in the Winnipeg area. Upgrade the Winnipeg River transmission line system to 100 C. The refurbishment will correct insufficient ground clearances of line conductors. Using resagging, reconductoring, and tower extensions where required, the lines are to be upgraded to maintain safe ground clearances under thermal conductor loading. Lines in the Winnipeg area built pre-1970 cannot accommodate thermal conductor loading without violating required ground clearances. The refurbishment program will increase line to ground clearances to allow higher conductor temperatures under all potential heavy current line loads. Reflects revised activity and overhead rates. 38

44 DORSEY 230kV BUS ENHANCEMENT $ $ 2.0 $ $ $ 0.6 Sectionalize Dorsey A and B busses with breaker and interconnecting bus. Installation will include 4-230kV breakers, an interconnecting bus, plus associated equipment. Relocate and build a security entrance complete with building (12 x 20 ),washroom, security arms, paved roadway and security cameras. Sectionalizing Dorsey bus will minimize the chances of a complete Dorsey shutdown, and allow more thorough and convenient bus maintenance. Relocation of the original security entrance is a consequence of this work, and at the same time the Dorsey Security Report is highlighting the need for enhancing the security level. Increased 2.0M due to a more complex design and implementation process than originally planned, addition of the new safety entrance and a one year in-service deferral (to Sept 2006). PINE FALLS > GREAT FALLS KV SUPPLY $ $ 0.7 $ $ $ 0.1 $ Establish a new kV Station at Great Falls, with a 115kV circuit to the Great Falls G.S. Install a new voltage regulation device at Bloodvein. Construct a new 66kV MCM line from Great Falls kV station to Great Falls -North 66-12kVstation and re-route line #77 to the new Great Falls kV station. Salvage the existing Great Falls kV, 5/6.67 MVA autotransformer station. The addition of kv capacity at Great Falls will provide contingency capacity for the Pine Falls 66kv system which will run short by 2008/09. The earlier 2003 isd is recommended to separate Great Falls -N Stn and Bissett area onto separate breakers. Outages have been a customer concern and this service does not meet basic reliability intent of the transmission planning criteria for firm load. Increased $0.7M to complete project deficiencies. 39

45 FLIN FLON AREA TRANSMISSION IMPROVEMENTS Phase II $ $ $ 0.6 $ $ 0.1 $ $ 0.2 Design and construct 6 KM of single circuit, 115kV line between Herblet L Stn and Chisel L disconnect switch 1521 (Stall L > Chisel C rating). Upgrade 73 Km of HS15 between Herblet L and Sherridon Stn (Chisel L > 50 0 C rating). Fix towers and insulators where required and clean up right of way. Salvage 65 Km of 115kV line HS15 between I1F/12F tap and Sherridon Stn. At Herblet Stn, build a wood pole 115kV line and provide a provision for temporarily connecting H59C to the 115kV line HS15. At Cliff L Stn build a wood pole 115kV line and provide a provision for temporarily connecting bank 3 secondary to line H59C. De-commission and salvage the Mile 13 Stn. Salvage kv 30/40/45 MVA station service transformer at Ponton Stn. Install former Ponton's 30/40/45 MVA transformer bank & add a 230kV breaker at Herblet L Stn. Co-terminate the transformer on the 230kV side and add one 115Kv breaker and associated equipment. At Cliff L Stn install/modify bank 3 protection equipment as required. Increase the capacity of communication diesel generating facilities and use as the permanent back-up local service supply for Ponton Stn. Replace control PLC and Corp Lan. Add a ground grid study and a new written pole motor. Mile 13 Stn salvage cancelled, and funds reallocated to a reduced line HS15 upgrade. Cliff L deferred 4 Mo. Scope change to increase the line rating from Chisel L > Sherridon Stn to 50 0 C and from Stall L > Chisel L to C. In-service dates have been deferred approximately 1 year. ROSSER STATION KV BANK 3 REPLACEMENT $ $ 0.9 $ (0.9) $ $ (1.4) $ $ $ 0.5 Replace Rosser bank 3 with a 150/200/250MVA transformer similar to bank 1. Replace the 13.8kV tertiary reactor supply circuit breaker and if necessary the bus. Upgrade protection as required. With continued load growth on the North Winnipeg and Selkirk 115kV systems, summer peak loads, low water conditions on the Winnipeg River and exports to Ontario, additional capacity will be required by In addition this replacement will allow us to prevent equipment overloads in the event of a failure to bank 1 at Rosser station, maintain our exports, and also to defer the Ridgeway > Selkirk 230kV transmission project ($27M for 3 years to 2012). Deferred one year. 40

46 ST BONIFACE - PLESSIS RD BANK 2 ADDITION $ $ 0.3 $ $ $ 0.1 Install a second 60/80/100//112 MVA transformer, 2-24 kv 1500 MVA circuit breakers with associated equipment. Use sectionalized 115 kv line SV23 as the primary supply. Complete environmental requirements for the second bank Design and construct the subtransmission, protection, communication, and terminal facilities for the second transformer. Additional transformer capacity is required to accomodate future voltage conversions, load growth and to provide surplus firm capacity for the area. Increased due to re-estimate, and re-evaluation of deferred, completed design work. BRANDON CROCUS PLAINS KV BANK ADDITION $ $ 0.3 $ $ $ 0.2 $ $ 0.1 $ Install two 15/20/25 MVA KV transformers with OLTC. Install one 115KV breaker to connect the transformers to line BF52. Install 3x25KV breakers, four reclosers and associated equipment to connect the transformers and to provide four additional 25KV feeders into the industrial park. Salvage a bypass jumper. To supply the load growth and the industrial loads in the south Brandon area. Reflects revised activity and overhead rates. 41

47 PERIMETER SOUTH STATION DSC INSTALLATION $ $ (2.8) $ 0.8 $ (0.8) $ $ (2.8) $ $ 0.6 Install 1-10MVA, 66-12kV distribution supply centre, 3-7.2kV, single-phase 585 A padmount regulators, 1-15kV three-phase padmount recloser, 1-15kV S&C automated Vistagear switching cubicle, motorized bank 12kV switches B10 & B20, MOV lightning arresters on 66kV sides of banks 1 & 2, the distribution supply centre, and all 12kV feeders. Salvage existing manual 12kV bank switches and gap-type lightning arresters. This station supplies south Ft. Garry and Lasalle area (both fast growing communities) and provides a back-up supply to St. Norbert single bank station. This option addresses the non-firm capacity issues at a significantly lower cost than the initial plan, provides superior system reliability and its automatic load transfer feature offers recovery in minutes versis hours when a transformer fails. Concept change from installing larger transformers to installing a Distribution Supply Centre and associated equipment. PORTAGE SOUTH kV 2 nd TRANSFORMER ADDITION $ $ 4.4 $ $ $ 2.6 Permanently install the spare kV transformer in transformer two position. Install 3-230kV breakers, one 66kV breaker, one 66kV grounding transformer, associated 66kV and 230kV bus work, a RTU with protection and control equipment. Transformers are not co-terminated. The 230 kv line is sectionalized. Distribution work includes bringing supply from Southport Stn to Portage S Stn. Providing subtransmission and distribution customers with exceptional value regarding reliability at Portage Saskatchewan station and nearby 566kV distribution station during a single contingency outage at Portage South station. The resulting low voltages negatively impact customers equipment and their automated processes (8000 customers or 110MVA of load would be affected). Station Control concept has changed from a standard RTU and PLC Installation to a Station Integration, Research, Development & Installation and the station service installation has been added. Project deferred one year. 42

48 HARROW STN KV BANK 3 INSTALLATION $ $ (0.4) $ $ 0.2 Install a new 36/48/60MVA kV transformer at Harrow Stn. Salvage existing bank 4 and GB61 ground bank. Replace underground feeder egresses with 200m of 6-750KCMIL A1 TRXLPE 25kV cable. There are inadequate 24kV feeders in the south-west section of Winnipeg, due to high load growth and the removal of one feeder, on the loss of an easement. This is the lowest cost option to provide increased 24kV capacity, better voltage, lower system losses, improved reliability and better fit into the long term plans for the Winnipeg distribution system. Inaction will result in lowering reliability to an unacceptable level. Decreased to reflect a 4 month deferral and estimated cost to completion. WCD 66KV CIRCUIT BREAKER PROGRAM $ $ (0.6) $ $ (1.5) $ $ 1.2 $ $ $ 0.1 Replace eight 66kV circuit breakers at Logan Station with eight breakers from Winnipeg Hydro stock. Purchase and install twenty 72kV circuit breakers as follows: McPhillips (5), Amy (4), Edmonton (1), Rover (7), and Jessie (3). A total of 28 circuit breakers in the Winnipeg Central district are under-rated for expected fault interruption and need to be replaced, as indicated by the Due Diligence team. Decreased to reflect re-estimate. 43

49 VIRDEN AREA DISTRIBUTION CHANGES $ $ 0.5 $ $ 0.5 Rebuild 136 KM (85%) of primary distribution served by Virden-Seventh, Virden-North, Hargrave & Kenton Stns, and convert 438 transformers from 4.8/8.32kV to 14.4/24.9kV. Salvage & rebuild 33kV L66 Virden to Kenton. Rebuild KM of 66kV lines #95 & 97 and 24 KM of primary distribution Elkhorn to Manson. Build a new 66-25kV station 1 mile west of the town of Virden. 136 km line is old (rural electrification-30 ft poles) & does not meet CSA clearance criteria. Transformer upgrades will correct high voltage fluctuations, & losses, and reduce monitoring requirements. Line 95/97 is over 40 years old, deteriorated and does not comply with CSA standards, posing a safety hazard, and to supply additional load to new Albchem customer. The new Virden-Wallace Stn is required to meet 1998 projected load requirements. Reflects revised activity and overhead rates. DEFECTIVE RINJ CABLE REPLACEMENT $ $ $ (0.8) $ $ 0.1 $ $ $ 0.8 Replace approximately 62,500 metres of rinj (red Jacket) cable within the city of Winnipeg. The failure rate of rinj underground cable installed in the City of Winnipeg during the 1960's is three times the rate at which CSA recommends cable replacement. Reflects revised work schedules. 44

50 BRERETON LAKE STATION AREA $ $ 0.1 $ $ 0.3 $ $ 0.3 $ Construct: a new /25kV steel station c/w 2-7.5/10MVA /25kV LTC transformers and 2-560A WVE 12kV OCRs; 0.5 KM 266.8MCM ACSR single circuit 2-124kV line taps (consisting of steel tap-off and dead end structures) between line SK1 and the new Brereton L Stn; and two feeder exits from the new Stn to PR307. Convert 33kV line 29 and underbuilt circuit to be operated at 12kV as follows: White Lake > Rennie ISD ; White Lake > Nutimik Lake ISD ; and Park Gate > Nutimik Lake ISD Salvage 33kV line 29 from Rennie to Elma Tap and convert 8 KM to 7.2kVsingle phase ISD The existing 33kV line from SW 293 to White Lake Stn, Rennie Stn and SW 1810 is at the end of its life expectancy. There are deficiencies associated with White Lake and Rennie stations, as well. A new station complete with a rebuilt distribution system will provide more acceptable customer service reliability, and fewer disruptions to Ontario Hydro. Reflects detailed re-estimate. HOLLAND 8-25KV CONVERSION AND DSC $ $ $ 0.1 $ $ 0.3 Rebuild the Holland station area, convert it from 8-25kV and install a 5 MVA 66-25kV distribution supply center(dsc). Stage 1 includes rebuilding 28 miles of single phase, and 6 miles of three phase feeder HD08-2 and installation of a 3 X 1000kVA interchange bank. Stage 2 includes rebuilding 25 miles of single phase and 9 miles of three phase line, rebuilding or repoling 68 taps, conversion of 39 town transformers, building 4 feeder egresses from the DSC site, installation of a 5 MVA 66-25kV DSC (padmount) and salvage of a 3X1000kVA interchange bank. Holland station area is 47 years old and in deteriorated condition. It needs bank switches, improved 66kv lines and line clearances, grounding, and more room for 25kV mobile backup. This conversion will eliminate scheduled integrated pole maintenance, reduce losses and voltage flicker, improve voltage, allow for the addition of a future second 5 MVA unit at minimal cost (to provide for projected increased agricultural irrigation) and may be used to serve some 25kV Swan Lake load (improving voltage and losses to that system). Reflects current estimate. 45

51 STONY MOUNTAIN NEW KV STATION $ $ 1.0 $ $ $ 1.0 $ $ Construct a new Stony Mountain Station, and 1.5 miles of line to supply Bristol. Salvage existing Stony Mountain and Rockwood Stations, 33kV lines 15 and 35 and 33kV breakers 150 & 350 at Parkdale Stn. The stations equipment and their supply lines are in a deteriorated condition and must be replaced. The kV transformers that supply these stations from Parkdale are 50+ years old and reaching the end of their life expectancy.load forecasts indicate Stoney Mountain will also require a capacity increase by 2007, and the only other 33kV feed from Parkdale Stn, Garson Stn will require 115kV supply by It is not economically viable to maintain a 33kV source to only supply Stoney Mountain and Rockwood Stations. Reflects re-estimate. Previous estimate was based on 1997 costs. MOBILE TRANSFORMER $ $ $ $ (0.1) Purchase a 35MVA 115X X24.9kV mobile transformer and associated equipment for an in-service date of May 1, 2005 and modify Parkdale Station to accommodate the mobile unit. Parkdale Station peak load will exceed non-firm station capacity of 16.3MVA by The existing mobile unit will not be able to completely back up the station if the bank fails during peak load. A 35MVA mobile transformer will enable the supply of reliable power, defer a station capacity increase until 2025, provide a second contingency to other stations including Atwood, Augier, Inkster, Stonewall and Steinbach, and extend the non-firm capacity limits (deferring bank additions) of three new stations St Vital South, Ravelstone and Bird s Hill from 23MVA to 32.4MVA. No revision. 46

52 WEST KILDONAN-COURT BANK ADDITION $ $ 0.6 $ $ (0.2) Install a new 30/40/50//56MVA /7.2kV transformer at Court Station, in Bank 1 position. Sectionalize Rosser > McPhillips 115kV line RL2 and replace existing Bank 2 protection as required due to Bank 1 addition. Present bank 2 failure backup is load transfer to Storie and Inkster Stns. Similar Court maintenance check transfers have taken up to 30 hours. With the addition of Court Bank 1, lengthy outages to Seven Oaks Hospital, Garden City Shopping Centre and local residents will be eliminated, as load could be transferred to Bank 2. In order to conduct a safe, coordinated transfer, Bank 2 protection and metering systems must be upgraded to the high speed models used on Bank 1. Increased due to a 4 month delay and matching of plan to actual. ROVER SUBSTATION REPLACE 4KV SWITCHGEAR $ $ 8.7 $ $ $ $ $ 3.3 Remove existing 4 kv switchgear and supervisory protection equipment and replace with new equipment capable of withstanding fault levels at this site. Install a current limiting reactor. Relocate two and modify one feeders. Construct a new substation building, replace three 66-4kV transformer banks, extend the distribution ductline system and feeders to the new building, salvage the carpenter shop building, and the old 4kV building and its transformer banks. This project was identified during Due Diligence of Winnipeg Hydro Purchase based on achieving an acceptable level of employee safety and customer reliability. This equipment has been in service since 1950, its safe operation requires inefficient procedures and fault levels exceed its rating. Protective relaying, local control and metering functions are provided via electro-mechanical relays, manual switches and analog meters located in a separate building, and provide decreasing reliability due to mechanical deterioration. During removal of the existing concrete surfacing (after removal of the first section of switchgear), it was determined that the floor could not withstand the stresses and no further floor repair can be undertaken. Scope increased to construct a new substation building, replace three 66-4kV transformer banks, extend the distribution ductline system and feeders to the new building, salvage the carpenter shop building, and the old 4kV building and its transformer banks. 47

53 MARTIN STATION NEW OUTDOOR STATION $ $ 0.6 $ $ 0.2 $ $ $ 3.9 Install a new 3 bank outdoor station complete with 18 feeder positions and protection to replace existing Martin (17) Station. Martin (17) is a 50 year old two bank 12.47/4.16kV station that has exceeded firm capacity. It is supplied from Rover Station which is also being upgraded. Neither bank can be relied on as backup to the other, there is no mobile backup available and there is no external tie to neighboring stations. Without improvement, in the event of an emergency such as a transformer failure at Rover, 7500 customers including residential, appartment blocks, heavy industry, and commercial businesses could be without power for an unacceptable period (48 hours minimum). Increased to reflect an 11 month deferral. FROBISHER STATION UPGRADE $ $ 1.6 $ $ (0.5) $ $ (2.0) $ $ (0.4) 3.3 $ $ 1.1 Replace both 7.5/10MVA banks with 18/24/30MVA banks complete with 66kV and 12.47kV breakers, including 8 new 12kV feeder positions and two 4.5MVAR capacitor banks. Upgrade 6 existing feeder ACRs. Salvage banks 1 & 2-7.5/10MVA transformers. Two fully utilized 12kV stations serving the south St Vital area, were loaded to a combined 8.1MVA over firm capacity in the summer of Load has grown an average of 2.25MVA per year for the last 10 years, and is projected to grow another 46.3MVA over the next 18 years. Land acquisition problems prevented building a new station north of the perimeter highway. This is the next most economical option. Cancel the South St Vital New Stn project (no property available) and instead upgrade Frobisher Station. Inservice date deferred one year. 48

54 BURROWS STATION NEW 66KV/12KV STATION $ 19.5 $ 0.2 $ 0.7 $ 13.0 $ 4.3 $ 1.4 Build a new 2-bank 66kV-12kV indoor station complete with 12 feeder positions and protection to replace Alfred and Charles stations. Most of the equipment in this part of Winnipeg has been in service for 75 years. Alfred Stn (which supplies Charles Stn) lacks access to a satisfactory alternate supply in the event of a 12kV interruption out of Rover Stn. Remedial action was recommended for both stations in the Due Diligence Report. It indicated the 4kV switchgear lineups at Alfred and Charles Stns lack arc-resistance and at Alfred are sometimes underrated for the available fault current during normal operating conditions. It also had concerns that neither station has an appropriate battery room, all station transformers have patched leaks, they contain asbestos materials, and that spare parts are in short supply. New project. WCD U/G NETWORK TRANSFORMER REPLACEMENT $ $ $ 1.5 Replace remaining 23 non-refurbished network transformers with new deadfront network transformers, install new network protectors, install modules on the primary side of the transformers and rebuild network manhole pockets. Winnipeg Hydro has recorded nine incidents of catastrophic failure (rupture and/or explosion) on the network system, including events causing loss of life and several injuries. Six incidents involved failure of the secondary network protector, and one involved failure in the primary switch compartment. For public and employee safety, upgrading the network system was identified as of immediate urgency by both Winnipeg Hydro, and the Manitoba Hydro due diligence team. Carry-over of funding for unfinished 2004/05 work. 49

55 WINNIPEG CENTRAL OIL SWITCH PROJECT $ 2.2 $ 0.4 $ 0.5 $ 0.5 $ 0.5 $ 0.3 Remove the remaining twenty-six oil switches located in various manhole sites throughout Winnipeg Central. Install pad-mount switchgear and/or pad-mount transformers, and reroute existing primary feeder and customer service cables as required. The oil switches are corroding and are not rated for the maximum available fault current on the system. If a failure occurs or the oil must be replaced, a lengthy shutdown will be required. Replacement will alleviate the risks associated with switching primary feeders in confined spaces. Pad-mount equipment allows adequate clearances and efficiency for switching, maintaining and upgrading for future customer load additions. New project. WILLIAM STATION NEW 66KV/12KV STATION $ 10.2 $ 0.1 $ 0.2 $ 0.8 $ 9.1 Construct a new 2-bank 66/12kV indoor station, on Manitoba Hydro owned property, with protection and communication capability to the Central District Control Centre (CDCC) and the System Control Centre (SCC) for 10 feeder positions. Costs associated with the potential installation of new 12kV feeders to the new William Stn are not included. Allows for some load transfer from King and Sherbrook Stns. King Stn has no room for additional equipment, already serves a large portion of downtown Winnipeg and is experiencing summer overloading due to cooling problems which this will alleviate. Sherbrook Stn will operate at firm capacity in the summer of 2005, a load transfer will improve this and also supply capability in the event of a major equipment failure. Load growth associated with proposed projects in the area cannot be adequately handled by the present stations. Service reliability will be improved and accommodation for future automation can be realized from new equipment. New project. 50

56 COMMUNICATIONS $ $ (42.8) $ $ (2.5) $ $ (5.2) $ $ 4.8 $ $ $ 12.7 Upgrade or replace the Interlake & Nelson River communications, Winnipeg R MW system, MW Frequency Displacement, Interlake Digital MW, Grand Rapids-Tyrell RCA 9202 MW, Brandon North MW, Dauphin Area Comm, Comm Link to the USA, the Great Plains Comm System, and add Comm upgr and migration from wire to optical fiber cables Wpg area, Thompson INCO hill Comm prot and cont Upgr, and Pilot wire prot repl. Mobile radio system modernization. The joint MH/MTS Dorsey-Radisson link is nearing end of life. Details will be determined in future studies. The Wpg R MW System is less reliable due to age, and unavailability of parts. Thompson, Kelsey, Radisson comm channels will replace those which MTS is removing. Various microwave equipment must be replaced as it is dedicated to frequencies which have been re-allocated from our licence. Interlake and Nelson R. system replacements are required for all of the above reasons. Migration to optical fiber in Wpg is dictated by high incidence of power outages. Changing licensing requirements, age and functionality call for a Mobile radio system replacement. Replace six more microwave hops in the Great Plains area, addition of migration from wire to optical fiber cables in the Wpg area, replacement of the mobile radio system and one year deferral of the Grand Rapids Tyrell, Daophin and Winnipeg components. INTEGRATION OF SYSTEM CONTROL CENTRES $ $ 1.3 $ $ (0.2) 1.5 $ 1.5 Extend grid control for former WPG Hydro Stn s from their central district control centre (CDCC) To the Corporate system (SCC) and backup control centers (BUCC). This project will provide the following functions and installations at SCC, BUCC and Stations: 1. monitoring from Pointe and Slave G.S.; 2. monitoring and control of the transmission lines which terminate in the WHES power system and associated 69kV ring Stn s; 3. installation of a dual-port Telegyr RTU at ten Stn s and dual-port existing Telegyr RTU at twelve Stn s; 4. installation of communications from WHES remote sites; 5. installation of a Telegyr training RTU at SCC. Replace 18 audio consoles, 14 racks and switching equipment at Dovercourt and back-up control centers. The transfer of grid control of the former WPG Hydro electric system, consisting of generation, transmission and sub-transmission control, to the SCC, in conjunction with the control and monitoring equipment, will: a) ensure effective operation of the entire MB Hydro bulk electric system to prevent significant and adverse impacts involving a large number of customers for extended periods of time, and b) maintain separation of transmission and distribution control centre functions. This is consistent with current MB Hydro operating responsibilities and industry trends. The CDCC and supervisory systems are expected to remain in operation for at least 10 years until these Safety improvements, operating complexities and critical Stn monitoring issues are addressed. Current consoles will no longer be supported by the Manufacturer beyond Project completion date has been extended to April 2007, a staged in-service schedule has been added and the estimate has been updated. 51

57 SCC AUDIO CONSOLES & SWITCH EQUIPMENT REPLACEMENT $ $ $ $ Replace all 18 audio consoles and the associated 14 racks of Kasten Chase intertalk switching equipment at Dovercourt System Control Center and Taylor back-up Control Center, with new equipment that will provide the dispatcher s audio and audio switching requirements, as required to operate the power system at generation and high voltage transmission levels. It consists of a telephone switch that interconnects all voice based communications systems, such as the telephone systems, VHF mobile radio systems and the dispatcher s direct lines. Voice recorders replacement is not part of the project. Existing equipment was installed in1998, is computer based, and is software controlled using Windows NT. It will be obsolete and not supported by manufacturers by By that time, a replacement must be in service for the control centers to continue operations. No revision. SITE REMEDIATION $ $ 2.5 $ $ (0.3) $ $ $ 0.6 Conduct geotechnical investigations and remediate any hydrocarbon contaminated sites at 9 remaining former isolated diesel generating stations in; Little Grand Rapids, Manigotogan, The Pas, Moose Lake, Norway House, Wanless, Cormorant, Cranberry Portage and Churchill. Conduct geotechnical investigation for the various contaminated Corporate facilities, prepare a report with cleanup recommendations, remediate any contaminated areas identified and issue a final report confirming the facility and surrounding area were remediated and all areas of the work were left in accordance with applicable environmental regulations. Due to concerns and in compliance with current environmental regulations and standards applicable to unrestricted use of abandoned former diesel sites, the sites must be investigated, remediated and restored to equivalency of the surrounding area. Various existing Corporate contaminated facilities should be brought into compliance with current environmental regulations and standards. Deferred the in-service date for seven sites, and added the The Pas Land-farm Cost Recovery and Shamattawa soil remediation projects. 52

58 OIL CONTAINMENT $ $ 0.1 $ $ (0.1) $ $ $ (0.1) $ $ (0.3) 1.2 $ 1.2 Design and construct oil containment systems to collect and recover any oil spilled within the system. Minimize environmental impact of oil spills. Cash flows were adjusted to include an additional year of work and a new ISD of , to meet Capital Review constraints. STATION BATTERY BANK CAPACITY & SYSTEM RELIABILITY INCREASE $ $ 1.0 $ $ (0.2) $ $ 0.2 $ $ 0.2 $ $ 0.2 $ $ 0.3 Conduct individual studies, replace and/or upgrade battery bank capacity and chargers in 156 transmission and distribution stations (over the next ten years) and 7 stand alone Communications sites to meet the North American Electric Reliability Council s (NERC) battery bank sizing criteria. Includes AC service upgrades and building extension costs required to complete this project. Present battery banks were designed to an 8 hour standard (normal DC loads), and there are concerns many may no longer meet it, due to additional DC loads and age related deterioration. Current Corporate simulations indicate that system restoration will be inhibited if a black start situation should occur. NERC s requirements are to have a workable system restoration plan, with 12 hours capacity, dual battery systems and multiple chargers where practical, or without a restoration plan capacity for 16-hours duration. This project provides the battery bank systems for a workable system restoration plan into the future, and offers a coordinated means of changing the banks as they reach their end-of-life. Scope increased to include 7 stand-alone Communications sites which are also critical to the system restoration and should have been included with the original scope. 53

59 RED RIVER FLOODWAY EXPANSION PROJECT $ 1.8 $ 0.4 $ 0.9 $ 0.5 Complete communications, distribution, and transmission utility crossing work required along the Red River Floodway to accommodate the Manitoba Floodway Authority s (MFA s) floodway expansion. The project budget of $1.808 million represents 50% of the total estimated costs, with the other 50% to be received in contributions from the MFA. Cost sharing in accordance with agreement with the Province of Manitoba. This arrangement would apply to all construction costs as well as all planning and design, project management, and any other associated costs required to complete the changes required to electricity and supporting communication equipment as a result of the floodway expansion project. New project. DOMESTIC ITEM - TRANSMISSION & DISTRIBUTION $ $ (2.0) $ $ 0.8 $ $ 1.0 $ $ 1.1 $ $ 1.0 This complex consists of several hundred projects which are not identified as Major Items and whose individual cost is of a relatively small amount. The majority of projects are required to extend sub-transmission, distribution and transformation facilities to supply service to residential, farm, commercial and industrial customers and to replace plant facilities whose useful life has been exceeded. Specific types of expenditures that make up electric domestic items include station and line additions, modifications and rebuilds, bank additions, breaker replacements, defective cable replacement, highway changes, field maintenance equipment and ice melting requirements. These costs are spread over many facility locations throughout the province. The residential, farm, commercial and industrial loads are expected to grow at an average rate of 1.5% per annum and will require a program of additions to the System to accommodate these anticipated loads. Reflects current requirements. 54

60 GAS RISER REHABILITATION PROJECT $ $ 0.1 $ $ (0.1) $ $ (0.1) $ $ (0.1) Five year program to rehabilitate approximately 15,000 remaining service riser assemblies that are assessed to be a high or medium priority. An increasing gas riser failure history indicates the need to review and rehabilitate those installations showing sufficient evidence of stress. Reflects actual costs to 2004/05 and current rates. DOMESTIC ITEM TRANSMISSION & DISTRIBUTION GAS $ $ $ $ $ This complex consists of many small projects which are not identified as Major Items and whose individual cost is of a relatively small amount. The majority of projects are required for distribution and transmission facilities betterment and growth. Specifically, distribution system upgrades, regulator stations, system looping, cathodic protection, strained riser replacements, and new business. Required to provide ongoing safe and reliable supply of natural gas to customers. No revision. 55

61 AUTOMATIC METER READING - ELECTRIC $ $ (0.1) $ $ $ $ $ Purchase and installation of an automatic meter reading (AMR) communication network to remotely read and electronically disseminate readings and other relevant customer information to the appropriate department or division. AMR will satisfy the on-going need for meter readings in support of billings as well as providing " on demand" readings to respond to customer inquiries. Other benefits include; power outage alarms, defective meter/ theft of service, flexible timing and consolidation of billings. No revision. DISTRIBUTION PCB TESTING & TRANSFORMER REPLACEMENT $ $ 1.1 $ $ $ $ 1.1 Testing and removal of all Polychlorinated Biphenyl (PCB S) material (>50ppm) from Distribution pole and pad mount transformers, including the 9514 units previously in the Winnipeg Hydro system. In accordance with PCB removal program. This increase accounts for additional transformers acquired through the purchase of Winnipeg Hydro, and to include increases in the costs of testing and replacement. 56

62 WINNIPEG DISTRIBUTION INFRASTRUCTURE REQUIREMENTS $ $ (0.3) $ $ $ $ $ Complete assessment and emergency replacement as required, of distribution underground equipment in the City of Winnipeg, including plant previously associated with Winnipeg Hydro. Due to the aging condition of this distribution underground equipment, maintenance check completions have dropped to 35% and required repairs to 27% as per Policy 343. It is anticipated a significant number of Capital work requirements will be identified for Management review and approval. Reflects actual costs to 2004/05. WCD U/G NETWORK ASBESTOS REMOVAL $ $ $ $ $ Remove or encapsulate the asbestos wrap on existing high voltage cables, in approximately 1800 manholes within the central Winnipeg area. Asbestos must be in a condition which does not pose a health risk to anyone in the workplace. The current exposure control plan requires that asbestos be properly sealed with a sealant, encapsulated or removed to eliminate the risk of exposure. No change. 57

63 DOMESTIC ITEM - CUSTOMER SERVICE $ $ $ $ $ This complex consists of minor projects which are not identified as Major Items and whose individual cost is of a relatively small amount. The majority of projects are required to supply service to residential, farm, commercial and industrial customers and to replace plant facilities whose useful life has been exceeded. The residential, farm, commercial and industrial loads are expected to grow at an average rate of 1.5% per annum and will require a program of additions and replacements at the customer service point to accommodate these anticipated changes. No revision. AUTOMATIC METER READING - GAS $ $ (0.1) $ $ $ 0.1 $ $ $ Purchase and installation of an automatic meter reading (amr) communication network to remotely read and electronically disseminate readings and other relevant customer information to the appropriate department or division. AMR will satisfy the on-going need for meter readings in support of billings as well as providing " on demand" readings to respond to customer inquiries. Other benefits include; power outage alarms, defective meter/ theft of service, flexible timing and consolidation of billings. No revision. 58

64 DEMAND SIDE MANAGEMENT - GAS $ $ 2.4 $ $ 3.6 $ $ 6.1 $ $ 3.6 $ $ 3.7 Design, implement and deliver incentive based Power Smart conservation programs, to reduce gas consumption and greenhouse gas emissions in Manitoba. These programs would complement similar efforts being undertaken with electricity DSM programs, and deliver natural gas savings of 96 million cubic meters by 2017/18. Energy conservation is economically efficient and environmentally beneficial. The incentive based programs in the Natural Gas Power Smart Plan (NGPSP) are cost effective, with a Resource Cost test (the primary economic indicator) ratio of 1.3. The Rate Impact Measure (the secondary economic indicator) is.7. The NGPSP aligns the Corporations conservation efforts with our stated goals, the interests of the Provincial Government and many stakeholders, and leading North American utilities and agencies that offer natural gas conservation programs. Increase the capital budget to achieve natural gas savings of 96 million cubic meters by 2017/18. DOMESTIC ITEM CUSTOMER SERVICE & MARKETING GAS $ $ 0.7 $ $ 0.8 $ $ 0.7 $ $ 0.7 $ $ 0.8 Covers the additions and replacements of gas meters. As required for the connection of new customers to the system, as well as replacement of existing time expired or faulty meters. Increased to cover the cost of cleaning up a backlog in the gas retirement program (removal of permanently retired service lines). 59

65 CORPORATE BUILDINGS $ $ $ $ $ Capital requirements for refurbishing and/or replacing corporate facilities throughout the province. Replacements, renovations and additions to corporate facilities are required to enable a safe, efficient and productive environment for staff and customers. No revision. CUSTOMER INFORMATION SYSTEM $ $ $ (1.7) 0.4 $ 0.4 To replace the existing mainframe Customer Service System, Meter Records System, Miscellaneous Billing System, and Street Light System with a modern customer system. A new customer service system is required to achieve synergies by replacing Manitoba Hydro s outdated customer service system with an integrated customer information/customer care system for Manitoba Hydro and Centra Gas. cost flows. 60

66 HUMAN RESOURCE MANAGEMENT SYSTEM $ $ $ 0.4 Implementation of a Human Resource Management System(HRMS) utilizing SAP s HR module, replacing six legacy applications. A new HRMS system will replace older legacy systems which are proving incapable of providing efficient and effective HR analysis and decision support. On line time capture, work flow, resource scheduling as well as self service functions will be enabled. Trailing costs to completion. ENTERPRISE GIS PROJECT $ $ 2.9 $ $ 3.0 $ $ 3.8 Implement T&D and CS&M and conduct Power Supply needs assessment. The enterprise GIS will allow support of a seamless, integrated, and current computer model of the complete electric and gas distribution systems. This model will be used to safely and efficiently manage the system and facilitate the consolidation of process and operations between the electric and gas lines of business. Increased due to changes in the project scope, revised cost flow and in-service dates. 61

67 DOMESTIC ITEM FINANCE AND ADMINISTRATION $ $ $ $ $ To provide information technology hardware, software, application development and other related services to the corporation. Computer system enhancements are required throughout the corporation to achieve ongoing improvements in resource productivity and reliability. No revision. 62

68 NON-CONSTRUCTION CAPITAL MITIGATION 05/06 06/07 07/08 08/09 09/10 Forecast $ 18.3 $ 9.6 $ 2.5 $ 2.5 $ 2.5 To cover costs associated with mitigating the impacts of the corporation s northern projects by providing remedial measures, program support, or compensation payments. To fulfill our commitments under the Northern Flood Agreement (NFA) and various other agreements, by providing remedial works, compensation, resource programs, maintenance funds, severance line action plan funds, studies and actions directed by the Arbitrator. FLEET ACQUISITIONS 05/06 06/07 07/08 08/09 09/10 Forecast $ 12.3 $ 12.5 $ 12.7 $ 13.0 $ 13.3 To cover costs associated with the replacement and addition to the corporation s fleet vehicles. As vhicles age, reliability and safety and therefore utilization declines, while maintenance and fuel consumption increase. Vehicle replacement cycles are intended to achieve the maximum possible useful life, and then replacing before there is a loss of reliability, safety, and substantial increase in maintenance costs. Benefits are also derived from improved emissions as technology improves, thereby reducing greenhouse gases. HVDC SPARE TRANSFORMERS 05/06 06/07 07/08 08/09 09/10 Forecast $ 11.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Maintain an inventory of 8 spare converter transformers for use at Radisson, Henday and Dorsey converter stations. An inventory of spare converter transformers will limit outage durations and costs in the event of a failure. The inventory of 8 transformers represents one spare unit for each type of converter transformer. 63

69 REGULATORY SERVICES 05/06 06/07 07/08 08/09 09/10 Forecast $ 1.2 $ 0.0 $ 1.3 $ 0.0 $ 1.3 To cover costs of regulatory hearings, excluding internal labor costs. Regulatory hearing costs are amortized over the period of related rate application. DORSEY AC SPARE TRANSFORMER 05/06 06/07 07/08 08/09 09/10 Forecast $ 0.3 $ 0.0 $ 0.0 $ 0.0 $ 0.0 To cover costs associated with the purchase of a spare single phase 400MVA 500/230/46kV auto-transformer to be located temporarily at Dorsey, until the new Riel station is in service. A failure of one of the Dorsey 500kV AC transformers would reduce the transfer capability of the Dorsey US interconnection by 175MW by up to one year. Pre-purchasing one of the Riel transformers and locating it at Dorsey is cost effective to avoid the potential revenue loss, should an outage occur prior to completion of the new Riel staition. DEPRECIATION STUDY 05/06 06/07 07/08 08/09 09/10 Forecast $ 0.3 $ 0.0 $ 0.0 $ 0.0 $ 0.0 To cover costs associated with the review of plant asset depreciation rates. The corporation conducts an assessment of depreciation rateson existing plant assets every five years. 64

70 HOT WATER TANK PROGRAM (WH) 05/06 06/07 07/08 08/09 09/10 Forecast $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.2 To cover costs associated with the purchase of replacement residential hot water tanks for the legacy rental program conducted by Winnipeg Hydro. This legacy program for renting hot water heaters from Winnipeg Hydro is grandfathered, and an inventory of replacements is required to replace failed rental units. NEW HEAD OFFICE LAND 05/06 06/07 07/08 08/09 09/10 Forecast $ 1.6 $ 0.0 $ 0.0 $ 0.0 $ 0.0 To cover costs associated with the purchase of a parcel of land and de-construction of existing infrastructure to prepare for the re-development of the corporation s new downtown office. As part of the purchase agreement with the City of Winnipeg, the corporation has secured a parcel of land suitable for the development of a downtown office complex. GERDAU / MRM SVC CONTRIBUTION 05/06 06/07 07/08 08/09 09/10 Forecast $ 2.0 $ 1.5 $ 0.0 $ 0.0 $ 0.0 Manitoba Hydro s maximum contribution towards the purchase and installation of a customer owned static var compensator (SVC). The corporation has agreed to cost share to a maximum of $3.5m, the installation of an SVC to mitigate a power quality issue ( voltage flicker) due to the plants furnace useage. The customer had requested supply at 230kV, and this mitigative device will defer this requirement for the next ten fifteen years. 65

71 8 MILE CHANNEL CLEANUP 05/06 06/07 07/08 08/09 09/10 Forecast $ 3.2 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Clean-up to current environmental standards, discarded construction and camp debris related to the 1970 s dredging works forming part of the Lake Winnipeg regulation project. Manitoba Hydro has an obligation to manage its 1970 s vintage construction debris consistent with its Environmental Management Policy. Two parcels of land containing debris are also encompassed within Norway House Cree Nation NFA land claim. This work will maintain and reinforce the corporation s current strategic relationship with NHCN. WATER LICENSES & RENEWALS 05/06 06/07 07/08 08/09 09/10 Forecast $ 1.5 $ 1.7 $ 1.6 $ 1.7 $ 1.3 Conduct any hydraulic studies, geotechnical assessments, property status and severance line determinations, mapping, license documentation, environmental reviews and community informational sessions necessary to secure license finalization and/or renewals of the corporation s hydraulic plants. All hydraulic generating facilities must be authorized under Water Power licenses and these licenses need to be clearly in force to significantly reduce risk exposure, maintain operating flexibility, maximize export revenues, and contribute to financial strength. PCBs HVDC AC FILTER CAPACITORS 05/06 06/07 07/08 08/09 09/10 Forecast $ 1.3 $ 2.1 $ 2.1 $ 12.9 $ 0.0 To record salvage and disposal costs associated with the replacement of PCB fluid filled AC capacitors at Dorsey, Radisson and Henday Converter Stations. The Federal Government has signed an international agreement and passed legislation requiring the phase-out of high level PCBs. Accordingly, the corporation has recorded as a liability, an asset retirement obligation (ARO) for the removal and safe disposal of all remaining PCB fluid filled capacitors. 66