Bruce Power suggests the possibility of restarting
Bruce “A” Reactors 1 and 2 Bruce Centre Attaches Some Questions to CEO Hawthorne’s Nuclear Energy Trial Balloon INVERHURON - February 1, 2003 In suggesting the possible restart of two dormant 750 megawatt (MW) reactors at the Bruce Nuclear Facility, Bruce Power Chief Executive Officer, Duncan Hawthorne, is floating a trial balloon past both Bay Street financiers and the government of Ontario. While the idea of more power running through the Ontario electrical grid would obviously be attractive to many parties, the balloon comes attached to a number of considerations, of which price is only one. It is somewhat ironic that Hawthorne’s suggestion comes at a time when many Toronto residents are celebrating the January 23, 2003 production of the first kwh of totally green electricity coming from a shoreline wind turbine on Lake Ontario (operated by TREC -- Toronto Renewable Energy Cooperative). Bruce A nuclear Reactor Units 1 and 2 have been inoperative since 1997 and 1995 respectively. Units 3 & 4 at Bruce “A” were shut down .in 1998 None of these reactors ever operated up to the level of expectation that drove initial investment in nuclear power. Units 1, 3 and 4 were closed in response to a peer review report noting that many Ontario Hydro nuclear reactors were running at “minimally acceptable” levels. (Click on this link for a chronological history of the Bruce nuclear site, including information related to the shut-down of these reactors.) Hawthorne says the restart of Bruce A 1 & 2 reactors would be possible if "a proper business case can be made” and puts the price tag at about $1 billion Canadian. The restart of Bruce A Units 3 & 4 (now under way in the early refueling phase) is slated for completion by the summer of 2003. The projected cost of $400 million Can. has raised some eyebrows considering the huge cost over-runs being experienced in the restart of four Pickering “A” reactors. How solid a figure is $1 billion? The Bruce Power CEO contends that the resurrection of the Bruce “A” reactor units would help solve the burgeoning electrical power needs of Ontario. As well, and perhaps more important to long term private sector interests, he suggests that the restart would provide both the incentive and the means for the province to take the price cap off electricity before the 2006 deadline set by the government late in 2002. The province has responded by saying it is not considering such an idea at this time. The Bruce nuclear facility is now owned by the public sector corporation, Ontario Power Generation (OPG), but is operated by a private sector firm, Bruce Power (whose major partners now include the world’s largest uranium producer, Cameco, pension fund manager OMERS and TransCanada Pipelines.) Under the lease agreement, OPG is contractually liable for the planning and costs of decommissioning and nuclear waste disposal at the Bruce nuclear facility. Bruce Power does though make annual payments to OPG to help pay for waste disposal. Even with the lease arrangement of the Bruce facility operation, OPG still enjoys a monopoly on electrical power production in Ontario that it assumed from its predecessor, Ontario Hydro. But by order of the provincial government, the monopoly must be reduced to no more than a 35% market share within 10 years of market deregulation, which was announced in 2000 and went in effect in May of 2002. Hawthorne’s suggestion of restarting Bruce A Units 1 and 2 raises a number of issues for consideration.
The Bruce Centre believes these and other factors bear consideration by the citizens and government of Ontario, should an acceptable business case ever be made proposing to restart Bruce A Units 1 and 2. For more information, please contact us at info@friendsofbruce.ca |