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Q.
PUB 6.0 NP
NP 2006 CBA
SUBSTATIONS
REPLACEMENT AND STANDBY SUBSTATION EQUIPMENT (POOLED), p.
12 of 81, $1,918,000
PUB 6.0
How does the expenditure of $363,000 explained in section 3.0, Emergency
Replacements, of 2.2 2006 Replacement and Standby Substation Equipment differ
from the budgeted items explained in the sections previous to 3.0, which deal with
the replenishment of pools of equipment for use in emergency and routine
situations?
A.
Newfoundland Power maintains a pool of standby substation equipment that can be
installed in a timely manner in response to emergency and routine situations. The standby
pool consists of equipment types referenced in Section 2.0 Corporate Standby Equipment
(i.e., circuit breakers, reclosers, voltage regulators, etc).
The $660,000 expenditure referenced under Section 2.0 Corporate Standby Equipment is
the cost to replenish the pool of standby equipment. It includes the cost to purchase new
equipment, to refurbish equipment removed from service and to ensure that such
equipment is ready for service. The budgeted amount is based on historic failure rates of
specific equipment and engineering judgement. It does not include the cost of installing
the equipment.
The $363,000 expenditure referenced under Section 3.0 Emergency Replacements is the
cost of installing equipment from the standby pool in emergency situations. Emergency
situations may be caused by events such vandalism, storm damage, lightning strikes,
electrical or mechanical failure, or corrosion damage.
The $363,000 expenditure also includes the emergency cost to replace equipment and
infrastructure not in the standby pool, such as stolen ground grid conductor and failed
lightning arrestors. The $363,000 expenditure is based on engineering judgement and
recent historical information.
Newfoundland Power - 2006 Capital Budget Application
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