Corporate Responsibility Report 2012

Energy Production

This is how we're producing power.

In 2012, we continued to deliver on strategy by sharpening our operational focus on three fuel types - natural gas, coal/solid fuels and wind. We completed construction on two of our four new wind projects, Quality Wind in British Columbia, and Halkirk Wind in Alberta, adding 292 MWs to our fleet. We also completed the sale of our two remaining hydro facilities. Our fleet has grown to more than 3,600 MWs of owned generation – almost double the generation capacity compared to three years ago.

Our power generation in 2012

  • 60% was from coal generation
  • 35% was from natural gas
  • 5% was from renewables (wind, biomass, landfill gas, tire-derived fuel)

Our fuel in 2012

  • Coal consumption declined by 6% between 2011 and 2012, mainly due to the length of maintenance outages at our Genesee 3 facility in Alberta.
  • From 2011, natural gas consumption increased by 2% due to the higher gas to coal ratio during maintenance outages at Genesee and increased consumption at Clover Bar Energy Centre.
  • Biomass consumption increased by 35% from 2011 due to higher availability at our two North Carolina facilities.
  • Tire-derived fuel consumption increased by 24% due to higher availability at our two North Carolina facilities. Higher availability gave us the opportunity to optimize our fuel mix.
Genesee Generating Station, Warburg, Alberta

Energy Consumption (Gigajoules)

2010* 2011 2012
* 2010 data includes Capital Power Income L.P. (CPILP) facilities which were divested and are not included in the 2011 and 2012 data.
Coal 102,617,000 101,776,000 94,917,000
Natural Gas 44,366,000 42,096,000 43,021,000
Biomass 12,147,000 4,514,000 5,952,000
Tire-Derived Fuel 602,500 2,030,000 2,279,000
Landfill Gas 402,000 360,000 371,000

Energy Saved Due to Conservation & Efficiency

  2010 2011 2012
Generation from waste heat – % MWh (recycled) 12.5% 0% 0%
Generation from waste heat – % capacity (recycled) 7.7% 0% 0%
Generation from renewable - % MWh 10.4% 3.5% 4.1%
Generation from renewable - % capacity 8.5% 2.9% 10.2%

Net Production by Energy Source

  2010 2011 2012

The conversion of steam (GJ) to an electricity equivalent (MWh equivalent) assumes several ideal conditions, which results in an approximate number. Production statistics differ from other published statistics due to differences in reporting scope.

Coal (MWh) 9,929,000 9,887,000 9,366,000
Natural gas (MWh) 3,922,000 5,375,000 5,468,000
Waste heat (MWh) 2,256,000 0 0
Hydro (MWh) 776,000 139,000 0
Biomass (MWh) 965,000 279,000 412,000
Wind (MWh) 105,000 102,000 192,000
Tire-derived fuel (MWh) 48,000 125,000 157,000
Landfill Gas (MWh) 36,000 32,000 32,000
Net production (MWh) 18,037,000 15,939,000 15,626,000
Gross production (MWh) 19,145,000 16,949,000 16,610,000
Electricity consumed by station services (MWh) 1,109,000 1,010,000 984,000

Fuel

Materials used

2010 2011 2012
Coal (tonnes) 5,265,000 5,215,000 4,916,000
Natural Gas (gigajoules) 44,366,000 42,096,000 43,021,000
Biomass (tonnes) 1,125,000 395,000 532,000
Tire-Derived Fuel (tonnes) 17,800 58,400 72,400
Landfill Gas (gigajoules) 402,000 360,000 371,000

Net generation by energy source (%)

Production (%) includes both electricity and exported steam. Steam production was converted from GJ to MWh using a conversion factor of 3.6 GJ/MWh to allow aggregation. Production statistics differ from other published statistics due to differences in reporting scope.

  2010 2011 2012
Subcritical Coal 36.7% 41.3% 40.6%
Supercritical Coal 18.3% 20.7% 19.3%
Natural gas 21.7% 33.7% 35.0%
Waste heat 12.5% 0% 0%
Hydro 4.3% 0.9% 0%
Biomass 5.4% 1.7% 2.6%
Wind 0.6% 0.6% 1.2%
Tire-derived fuel 0.3% 0.8% 1.0%
Landfill Gas 0.2% 0.2% 0.2%

For information on the production capacity, energy source, location, and ownership interests for Capital Power’s 16 facilities, please see the tables provided in Capital Power’s 2012 Annual Information Form, and the 2012 Annual Report

Thermal efficiency from fossil-fuel facilities

Genesee 1 & 2 (subcritical coal) 34.3%
Genesee 3 (supercritical coal) 39.3%
Bridgeport (combined cycle) 47.7%
Tiverton (combined cycle) 47.2%
Rumford (combined cycle) 44.1%
Island Generation (combined cycle) 47.2%
Clover Bar Energy Centre (simple cycle) 34.6%

Measuring the thermal efficiency of a power plant provides a way to benchmark against other power plants. It compares how much energy an operator gets out of a plant to how much energy is put in. The average thermal efficiency for our gas plants is 46% and 38% for coal-fired generation at our three solid fuel facilities: Genesee, Roxboro and Southport.

Market contraventions in 2012

Our energy-trading operations in Alberta are monitored by the Market Surveillance Administrator (MSA). We report on potential contraventions of market rules based on the date the MSA makes a determination and issues a fine.

Two specified penalties for contraventions of AESO ISO Rules were issued to Capital Power. The incidents occurred at Genesee 3 on June 17, 2012, and at the Clover Bar Energy Centre on November 13, 2012. The penalties for both incidents were $500, for total fines paid of $1,000. These incidents were primarily a result of human error, although operational issues contributed to the contravention.

The Corporate Ethics and Compliance team is active in working with our operations staff and other internal stakeholders to identify opportunities for process improvements. Incidents, non-compliance, or potential non-compliance, are taken very seriously. We continue to be diligent in adhering to the spirit, as well as the letter of the law.

Product responsibility

Our employees are required to be aware of and comply with all legal and regulatory requirements applicable to their jobs. In 2012, the company reports:

  • Zero incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services;
  • Zero incidents of non-compliance with labelling requirements;
  • Zero customer satisfaction practices or survey results as we do not have a retail power business and, therefore, no retail customer accounts;
  • Zero legal actions for anti-competitive or monopolistic behaviour;
  • Zero complaints to a Human Rights Commission;
  • Zero incidents of non-compliance marketing and advertising codes;
  • Zero injuries or fatalities to members of the public due to incidents involving our facilities; and
  • Zero substantiated complaints regarding breaches of customer privacy or losses of customer data.
Island Generation, British Columbia

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