When first constructed in the early 1900s, the Stave Falls Power Plant, located 65 kilometers east of Vancouver, Canada, in Burnaby, B.C., was state-of-the-art.
Built between 1911 and 1925, the powerhouse, turbines and generators served up to 27,000 homes for more than 80 years. However, a 1991 feasibility study concluded that the aging power plant had become inefficient and no longer complied with fire, worker safety, environmental and design standards.
By carefully managing the project scope, schedule and budget and applying innovative practices and methods to address a number of unique challenges, a new Stave Falls Power Plant was completed on time and under budget by 21 percent. A finalist in the Project Management Institute's 2001 International Project of the Year competition, the project demonstrates how sound techniques contributed to financial, technical, environmental and social success.
Project Phases
BC Hydro, the Vancouver, B.C.-based utility that owns and operates Stave Falls, manages most of its projects by utilizing a concise set of policies. Developed in the mid-1990s, the procedures are based on the project life cycle and are separated into three distinct phases: identification, definition and implementation.
The Stave Falls Project Identification Phase (1991–1993). This phase involved reviewing three alternative solutions for the aging power plant: abandonment, rehabilitation or replacement.
A rigorous and diverse evaluation of each alternative considered factors such as economics, environmental issues, social implications, technical execution and customer service. Based on these findings, the preferred alternative was to replace the plant.
Although this solution had the highest capital cost of the three, it provided the highest net economic benefits since the existing plant would continue to generate revenue during the four years of reconstruction.
Further economic studies concluded that the construction of a two-unit, 90-megawatt (mW) power plant was the best solution for the site. With a total cost of Can$184 million, a new facility would increase plant efficiency and energy production by 27 percent.
The final cost for the Project Identification Phase was approximately Can$450,000. The phase concluded with the preparation of a business case and project plan.
The Project Definition Phase (1993–1995). This period involved defining and implementing the tasks required to proceed into the Implementation Phase. These tasks included:
■ Engineering—Providing the preliminary design of the new power plant
■ Environmental Assessment—Determining the environmental impacts of the project and proposed mitigation and compensation measures
■ Regulatory Approval—Receiving the consent needed to proceed with the final design, construction and operation of the new power plant.
Fueling Project Success at Stave Falls
During the course of the Stave Falls project, three important decisions were made that contributed significantly to its success.
Instituting Project Management Principles. These standards ensured rigorous planning and realistic schedule and budget estimates.The project began with the selection of a project manager and preparation of a Project Mandate for each of the three project phases.These mandates synthesized all the planning elements for every task and coordinated them into one logical plan.They detailed the objectives, scope, schedule and target cost of achieving the project objectives. A project plan and change control process also were developed for each project phase.
In addition, the scope of each project phase was carefully planned prior to receiving approval. In short, the work breakdown structure was based on an end feature designation. Each task within the WBS was assigned to an individual to determine scope, cost, schedule and quality assurance/control. Once completed, a review with the project manager eliminated overlaps, ensured adequate controls for quality assurance/control reviews, and guaranteed agreement on the scope, cost and schedule for each task.
Both the task manager and project manager signed the task assignment, which basically formed a contract.This process helped to assure buy-in for each task and resulted in a better initial estimate of scope, cost, and schedule. It also ultimately provided a better chance of delivering the project as specified in the project mandate.
Acquiring insurance is one example of successful individual task planning. BC Hydro's policy requires each project contractor to purchase its own insurance at a total project cost of about Can$800,000.The task manager responsible for insurance explored other alternatives, including an owner-controlled insurance program. Under this plan, BC Hydro aggregated all contractor insurance requirements under one policy held by BC Hydro.The result was a significantly reduced rate and savings of approximately Can$365,000.
Building a Qualified and Enthusiastic Project Team.
This activity started during the Identification Phase with the appointment of the project management professional with a track record in successfully delivering a variety of utility-type projects for BC Hydro.
A project team was built based on the skills required for each task within the WBS. In addition to technical skills, choosing members who were good team players was essential to sustaining a good working environment.
Significant efforts were made to both recruit the right personnel and to create the right working environment. All team members relocated to one central site. In this way, a multidisciplinary team of environmentalists, engineers and accountants worked side by side to identify problems and discover innovative solutions.
For example, the problem of disposing of excess sand, gravel and boulders from the tailrace excavation was solved by using the material to construct a horse/public footpath across the dam as well as a new island in Hayward Reservoir.This island was designed to encourage the nesting of ducks and other waterfowl. Not only were these cost-effective solutions, but they also provided additional environmental benefits.
Adopting the “Serious Business of Having Fun” Philosophy. This decision proved to be the most influential factor for developing a highly motivated and innovative team. Numerous fun events—golf tournaments, informal coffee parties, pizza and billiards events, and site barbecues—were held during the project to generate good team spirit. Formal recognition of project team accomplishments also proved to be a successful motivating and team-building incentive.
Aerial view of the new island and the Hayward Park recreational facility.
A public consultation process, initiated during the Definition Phase and continued into the Project Implementation Phase, helped identify and address public concerns and issues. Early public consultation between government agencies, First Nations—a Canadian aboriginal group—and community stakeholders ensured concerns were incorporated into the planning process.
Consultation success stories included:
■ Water Use Plan (WUP)—This considered all water uses (fish, wildlife, industry, power, recreation, heritage and culture) within the watershed. Through a stakeholder consultative committee process, a water-use strategy was developed to meet all stakeholders’ interests. This process formed the foundation for the provincial guidelines currently used to develop WUPs for all existing BC Hydro hydroelectric facilities.
■ Economic Development Plan (EDP)—Since the power plant is located within the traditional territory of the Kwantlen First Nation, an EDP was designed to focus on employment and contract opportunities. As a result of deep draw-downs necessary for construction, BC Hydro funded archeological training for several Kwantlen First Nation members as well as a series of archeological studies within the watershed area. These studies uncovered more than 2,000 artifacts, numerous heritage sites and pictographs on the Stave Reservoir shoreline. An EDP was also designed for the District of Mission, a local historic community.
■ Hayward Park Plan—A new site access road was built in response to the public's desire to keep open Hayward Park, a recreational facility adjacent to the power plant. The new road also provided greater public safety as it separated construction traffic from public traffic during the four-year project. Hayward Park attracts up to 250,000 visitors per year.
■ Institution of Intermittent Road Delays—The road over the dam is a main transportation route for school buses, emergency vehicles and other local traffic. Since the public did not want lengthy road closures, a plan was developed to allow only short, less-than-10-minute closures during construction.
■ Road Widening—The public requested relief from the bottleneck created by the single-lane access road over the dam. BC Hydro, in partnership with the District of Mission, agreed to widen the road to accommodate two lanes.
■ Environmental Management Plan (EMP)—A detailed EMP was designed in consultation with the Canadian Ministry of Environment, Lands and Parks (MELP) and Fisheries and Oceans Canada. As part of this plan, an independent environmental inspector was hired to monitor all aspects of construction and implement appropriate measures to protect the environment.
Final costs for the Definition Phase was Can$3.3 million and concluded with a business case and project plan to proceed to the Implementation Phase.
The Project Implementation Phase (1995–2000). This part of the project plan included:
■ Finalizing design of the two-unit, 90-mW power plant
■ Continuing public consultation with First Nations and other stakeholders
■ Completing and implementing the environmental mitigation and compensation plans
■ Constructing the new power plant, intake, switchyard and tailrace channel
■ Testing and commissioning the new structures
■ Handing the project over to the operation and maintenance team
■ Documenting the project.
The final cost of the Project Implementation Phase was Can$180 million. In the fall of 1999, generators within the old powerhouse were shut down and the new power plant was placed into service—on time and under the approved budget.
This did not mean the demise of the older powerhouse, however. Given its age and historical significance, the public expressed a desire to preserve and access it, so the old powerhouse was converted into a historic visitor center. It will assist in educating the public about past, present and future electricity generation and is scheduled to open in November 2001.