XN000022-1983-08-18 — Page 5

THURSDAY, AUGUST 18, 1983

4.

4

) THE INTERCONNECTION WERE USED SO AS TO PERMIT A FREE

FLOW OF ENERGY BETWEEN THE TWO SYSTEMS.

HOWEVER, AN ADDITIONAL FEASIBILITY STUDY WOULD BE NEEDED TO DETERMINE THE COSTS - INCLUDING THE NEW CAPITAL

INVESTMENT THAT WOULD BE REQUIRED AND BENEFITS OF SUCH ADDITIONAL USE OF THE INTERCONNECTION FACILITY AND HOW IT WOULD AFFECT CONSUMERS.

RECOMMENDATIONS

(A) A STUDY OF WHETHER GREATER USE SHOULD BE MADE OF THE

INTERCONNECTION BE UNDERTAKEN; AND

(B) THE GOVERNMENT SHOULD CONSIDER WAYS OF FACILITATING, AND

PARTICIPATE IN. INTERCONNECTION PLANNING BY THE COMPANIES WITH THE LONG-TERM AIM OF INCREASING INTEGRATION OF THE TWO SYSTEMS.

PLANT SPECIFICATIONS

CONCLUSIONS

(A) THE DECISION MADE IN THE MID-1970S BY THE COMPANIES

TO INSTALL GENERATING UNITS USING COAL AS THE PRIMARY FUEL BUT ALSO CAPABLE OF BURNING OIL, WAS SOUND;

(B) BOTH COMPANIES' CHOICES OF TYPE AND SIZE OF GENERATING UNIT HAVE BEEN BASED ON SOUND ENGINEERING PRACTICE AND ECONOMIC JUDGEMENT; AND

(C) THE THERMAL EFFICIENCY OF THE GENERATING PLANT INSTALLED

BY THE COMPANIES COMPARES FAVOURABLY WITH THAT OF COAL-FIRED PLANTS IN THE U.S.A.

RECOMMENDATIONS

(A) BOTH COMPANIES CONTINUE TO MAKE SYSTEMATIC SURVEYS OF

OPERATING AND PLANNED GENERATING UNITS TO DETERMINE WHETHER THERE IS SCOPE FOR IMPROVEMENT IN THERMAL EFFICIENCY, DESPITE THE FAVOURABLE COMPARISON WITH PLANT OPERATED BY ELECTRICITY UTILTIIES IN OTHER INDUSTRIALISED COUNTRIES;

(B)

(c)

ON COST-BENEFIT GROUNDS, THE COMPANIES CONSIDER CONVERTING EXISTING OIL-FIRED UNITS TO BURN COAL OR COAL-SLURRY FUELS;

THE COMPANIES ASCERTAIN, WHERE APPROPRIATE. WHETHER THE DISIGNS OF THEIR GENERATING PLANT ARE SUITABLE FOR CYCLING OF BASE LOAD (4)* AND TWO SHIFT OPERATION (5)* AND, IF SO, WHETHER THESE PRACTICES SHOULD BE ADOPTED;

/(D) THE COMPANIES