N.L. Hydro president optimistic about Muskrat Falls, despite discovery of new problems

Despite recent setbacks for Muskrat Falls, Newfoundland and Labrador Hydro president and CEO Jennifer Williams says she's hopeful the project will be able to run at high-power by mid-April.

A new set of issues with the multibillion-dollar hydroelectricity project, identified in a recent report from the province's Public Utilities Board, has pushed back a round of high-power testing. The company expected to have the tests completed by the end of February, but the timeline has now been extended to early April.

The tests, which Williams says can only be performed during the colder months of the year, will determine whether the Labrador-Island Link, or LIL, can deliver higher volumes of power. If the tests aren't completed within the company's current timeline, they'll have to be performed when temperatures are cold enough again, around October or November.

"There's going to continue to be updates and evolution of how this line is going to operate, for a period of time," said Williams in an exclusive interview with CBC News.

"I think we've got a quite reliable line at low power now. It is going to be an appropriately reliable line for what this jurisdiction needs in, you know, soon, I believe."

A software glitch in November left about 60,000 homes without power during a round of high-voltage testing. Although the issue has been fixed, a report released Thursday by the Public Utilities Board identified new problems.

The new issues include a software problem disrupting the Labrador-Island Link, a 1,100-kilometre-long, high-voltage transmission line from the Muskrat Falls generating station in Labrador to a converter station just outside St. John's.

There are also software issues affecting the submarine cable in the Strait of Belle Isle and issues related to synchronous compensators, which regulate electrical voltage at the Soldier's Pond converter station near St. John's. While the latter hasn't been resolved, according to the PUB report, General Electric is testing a new version of the software affecting the submarine cable.

The Labrador-Island Link is currently functioning at around half its megawatt capacity — while it's been cleared to carry up to 450 megawatts of power, it's rated for up to 900 megawatts, Rob Collett, N.L. Hydro's vice-president of engineering, told The Canadian Press.

Williams said Muskrat Falls has been running well for a while — it's been fully commissioned since the end of 2021, and had a full year of operation in 2022 — and the Labrador-Island Link is an "impressive asset" that has been functioning very well at low power.

She said she recognizes the impact blackouts can have on customers and that they don't "breed confidence," which is why it's so important to have good software.

Despite the new issues, Williams says she's optimistic about fixing the system and completing the final round of tests by early April. If not, the tests may need to wait until the fall.

"The plant is running really, really well. The LIL is already running well at low power. I know it's going to get better at higher power," said Williams.

"I feel very good about this asset and I feel very good about the people that are running it. And I do feel a bit defensive about that sometimes, 'cause I want those folks to know they're producing an excellent product every day out of that plant and that line."