| News of Bruce Power sale pending By Marie Wilson Kincardine News staff An announcement regarding a change of ownership for Bruce Power, pending the outcome of advanced negotiations by British Energy to sell its 82.4 per cent share, is in the works. "Negotiations are very well advanced and we are expecting an announcement before Christmas," Steve Cannon, Bruce PowerCommunications, said December 2. Cameco Corp. of Saskatoon is currently in negotiations with British Energy to increase its 15 per cent share of Bruce Power. By agreement, Cameco has first right of offer for the Bruce site. Jamie McIntyre, Director of Investors and Corporate Relations for the Saskatoon based company, confirmed December 2 "that negotiations with British Energy are at an advanced level." However, he wasn't prepared to predict when an announcement will be forthcoming. "You have to appreciate two governments are involved and both have a legitimate interest so it becomes complicated," he said. "The Bruce Power Partnership doesn't own the assets of the Bruce site so its more complicated than normal." The sale of Bruce Power is part of a restructuring plan, proposed by the board of British Energy and endorsed by the British Government, to save British Energy from financial insolvency. The British government announced on November 28, the acceptance of British Energy's "plan for the solvent restructuring of the company." The sale of Bruce Power is part of a prescription to return the ailing company, which lost 518 million pounds ($1.26 billion Cdn) in 2002, to good financial health. Restructuring its $3 billion debt by securing agreements with key financial creditors for a temporary freeze on payments and subsequently a significant writedown in the value of what they are owed is key to the financial restructuring. The sale of Amergen, underwriting the cost of decommissioning nuclear plants and the implementation of a new trading strategy to reduce exposure to wholesale electricity prices are also part of the plan. The British government has agreed to extend its loan guarantee of 650-million pounds ($1.58 billion Cdn) until March 9 in order to provide financial stability and security for British Energy while it seeks the support of significant creditors. The loan guarantee was to expire November 29. However, the government can withdraw its extension of the loan guarantee if the sale of Bruce Power isn't completed by February 14 or any of the other conditions aren't met. Can't confirm involvement of partners Although there has been speculation that TransCanada Pipelines Ltd. of Calgary and Toronto's Borealis Capital Corp. may be part of a group effort by Cameco to purchase British Energy's share in the Bruce site, McIntyre wouldn't comment either way on such speculation. The reported involvement of American investor billionaire Warren Buffet (Berkshire Hathaway), one of America's richest men, is also unfounded. Andrew Dowler, spokesman from British Energy, said December 2 that "We've had no formal or informal approaches from Buffett or his people." McIntyre said news of Buffett's involvement with Cameco "was news to us." When asked if the possible change in ownership will have implications at the Bruce site, Cannon said "no." "We have the operational experience and expertise on site with a good record of operations and that will continue," he said. The Canadian Nuclear Safety Commission (CNSC) isn't required to approve the sale of the lease since the license is with Bruce Power and neither the licensee or the capability of the licensee is changing. "It's more of a financial than regulatory issue," Cannon said. British Energy's financial troubles were spotlighted early last fall when the CNSC asked Bruce Power to provide a guarantee that it could meet its financial obligations for $222 million in emergency shut-down funds amidst reports of the declining financial health of its majority partner. |