Bruce Power has an updated contract with the province that will lead to the the refurbishment of six nuclear units at the generating station.
The Bruce Power refurbishment project will create up to 23,000 jobs and generate about $6.3-billion in economic benefits. There is a revised timeline as construction will commence in 2020, rather than the previously estimated start date of 2016.
"Today is a major milestone in the history of Bruce Power as we build on our existing agreement with the province and extensive experience to enter the next phase of our site development. This provides us the opportunity to secure our long-term role as a supplier of low-cost electricity by demonstrating we can successfully deliver this program incrementally," according to Bruce Power's CEO and President Duncan Hawthorne.
According to the province, the updated agreement saves $1.7-billion when compared to the forecast in the 2013 Long-Term Energy Plan. The contract also ensures Bruce Power assumes full risk for any potential cost overruns or delays.
"This announcement from Bruce Power is good news for Huron-Bruce and Ontario securing low-cost electricity and both jobs and investment," says Huron-Bruce MPP Lisa Thompson. "Bruce Power is also the single largest source of clean electricity in the province, protecting the air we breathe."
Key aspects of the updated agreement include:
- Securing 6,300 MW of emissions-free, baseload generating capacity while deferring major project work to 2020, to maximize value of the units
- Bruce Power would invest approximately $13-billion of its own funds and agrees to take full risk of cost overruns on refurbishments of the six nuclear units
- Initial price for Bruce Power's generation set at $65.73/MWh starting January 1, 2016. The average price over the life of the contract is estimated to be $77/MWh, or 7.7 cents per kilowatt hour (kWh).
- Both prices are within the range assumed in the 2013 LTEP for refurbished nuclear energy and are lower than the average price of electricity generation in Ontario, which in 2015 was $83/MWh
- Definitive contract off-ramps that allow the government to assess Bruce Power's cost estimates for each reactor prior to its refurbishment and stop the refurbishment if the estimated cost exceeds a pre-defined amount
- The province is achieving balance by contracting affordable, stable and reliable generation for residents and businesses while securing investments that will be a key source of local job creation and economic growth.
