| 16:13 GMT-05:00 Wednesday, January 29, 2003 Bruce Power Chief Mulls Restart of Two More Units TORONTO (Reuters) - The chief executive of Ontario's Bruce Power nuclear station said he is open to restarting two more generating units if "a proper business case can be made" for their resurrection. "We need to see how the Ontario (electricity) market matures," chief executive Duncan Hawthorne said in a speech on Tuesday, which estimated the restart of the two units could cost C$1 billion ($660 million). Bruce Power started refueling two other nuclear reactors earlier this month and plans to have them in service before summer's peak demand period. Bruce Power, a 6,140 megawatt nuclear station on Lake Huron, northwest of Toronto, has eight generation units but only four are currently operating. It will restart Bruce A units 3 and 4 at a cost of C$400 million, leaving Bruce A units 1 and 2, out of operation. The restart of Bruce A units 3 and 4 will produce about 1,500 megawatts of electricity, and increase Bruce Power's share of the electricity market in Ontario, Canada's biggest power market, to more than 20 percent from the current 15 percent. Bruce Power was sold late in December to a consortium led by Cameco Corp. , the world's biggest uranium producer, and TransCanada PipeLines for about C$770 million by British Energy , the near-insolvent British power company, that owned 82 percent of Bruce Power. The deal will close in mid-February. Also on Tuesday, Hawthorne predicted that Ontario's government could end its electricity price freeze before 2006 if more power generation comes on stream, media reports said. Ontario opened its energy market to competition on May 1 in the face of wide public opposition, but froze prices in late 2002 after they soared more than 25 percent, angering consumers. But Ontario Energy Minister John Baird said on Wednesday the province has no plan to end the price freeze earlier than May 1, 2006. "That is not something we are contemplating at this stage," Baird said. Ontario Power Generation's Pickering A nuclear plant is also expected to have one unit of 500 megawatts back in service by the summer, but the project is moving slowly and is far over budget. OPG is owned by the province. The price freeze has dampened remaining hopes of investment in new generation in Ontario and also dried up private investor interest in a minority stake in Hydro One, the province's electricity grid. Just last week, Ontario's Conservative government said it had scrapped plans to sell up to 49 percent of Hydro One. Baird said he expects about 3,200 megawatts of electricity to be back on line this summer that was not available last summer. More electricity will mean lower prices but the province will not end the rate freeze. Baird said he is in consultations with big energy users who want to be included in the rate cap of 4.3 cents per kilowatt hour, which currently only helps consumers, small businesses and farmers. "I met with 50 large consumers today. We're going to reflect on what we heard and will be reporting back in the next four to five weeks. I think we need clarity sooner rather than later," Baird said. Hawthorne said in his speech he believes that a "free market will drive down electricity prices and attract new generation to Ontario." Baird said the province is progressing in its plans to divest assets of Ontario Power Generation, which is required to generate less than 35 percent of the province's electricity within 10 years of a deregulated market. But Baird offered no details. |