Bruce Power welcomes FAO report on life extension of Ontario's nuclear fleet

Bruce Power welcomes Tuesday's report from Ontario’s Financial Accountability Office (FAO) on the life extension of the province’s nuclear fleet.

The report reinforces the role low-cost Bruce Power nuclear will continue to play in the supply mix over the long-term. The report states, “There is currently no portfolio of alternative low-emissions generation which could replace nuclear generation at a comparable cost.”

Bruce Power currently generates 30 per cent of Ontario’s electricity at 30-per-cent less than the average cost to generate residential power. The FAO estimates the cost of Bruce Power nuclear, which includes life-extension investments through 2064, to be consistent with what the company announced in December, 2015.

While the FAO considers a wide-range of factors and postulated risks as these reviews are intended to do, it is recognized that Bruce Power will meet all investment requirements as part of this program and will assume the risk of delivering projects on-time and on-budget.

Furthermore, the report makes it clear that ratepayers are protected. “As Bruce Power is a private sector entity, any transfer of risk to Bruce Power reduces the exposure of ratepayers.”

Bruce Power’s Life-Extension Program commenced Jan. 1, 2016, and is on-time and on-budget. This program includes the 13-year Major Component Replacement (MCR) Project, which begins in Unit 6 in 2020, and preparations are well under way for this element of the program.

While Bruce Power will continue to generate 30 per cent of Ontario’s electricity, the report notes it provides other benefits aside from being a low-cost supplier, including the innovative ability to provide flexible output upon request by the Independent Electrical System Operator (IESO) as demand requires. Bruce Power is the only nuclear operator in Ontario to provide this valuable flexibility to the market.

Download the report here.


Here is what some are saying about the report:

“The report confirms that refurbishing Ontario’s Bruce and Darlington nuclear stations is the best option to keep costs low for electricity customers, while at the same time creating and sustaining good paying jobs in the region," said Francesca Dobbyn, executive director of the United Way of Bruce Grey. "These are items of huge importance to the people of Bruce-Grey and we support any efforts to lessen the financial burden on electricity ratepayers, particularly for the most vulnerable.”

“Asthma Canada is pleased to see the latest FAO report which confirms that the work being done to refurbish the nuclear fleet in Ontario is a low-cost way to protect the air we breathe," said Vanessa Foran, president and chief executive officer of Asthma Canada. "As the report indicates, there is currently no low-emissions generation which could replace nuclear generation at a comparable cost.”

“The FAO confirms that ratepayers will benefit from the continued operation of nuclear plants, like Bruce Power, Darlington, and Pickering," said Bruce-Grey-Owen Sound MPP Bill Walker, chairman of the Ontario Progressive Conservative (PC) Nuclear Caucus. "Continued investments in nuclear power will help keep rates down and help Ontario families pay less and get ahead.”

“This morning the Financial Accountability Office of Ontario reinforced the importance of nuclear energy generation and refurbishment of Bruce Power, stating, ‘There is currently no portfolio of alternative low-emissions generation which could replace nuclear generation at a comparative cost'.” said Huron-Bruce MPP Lisa Thompson.

"Refurbishing Ontario's nuclear fleet is something on which we can all agree," said Power Workers' Union (PWU) president Mel Hyatt. "Low-cost electricity, high-value jobs, economic growth and cleaner air, will all be made possible through these projects. We agree with the FAO that this is the most cost-competitive option for Ontario.

“Refurbishing the Bruce and Darlington units is the most cost-effective option for keeping electricity prices low over the long-term, while also, and importantly, keeping our air clean, Ontario's economy humming and maintaining a critical global supply of medical isotopes,” said Scott Travers, president of the Society of Energy Professionals.

“Over the coming years, Ontario’s nuclear refurbishment plan will see more than $25-billion invested in our economy, supporting thousands of incremental direct and indirect jobs through its vast supply chain," said Ian Howcroft, vice-president, Ontario Canadian Manufacturers and Exporters. "Manufacturing is the heart of Ontario’s economy and the refurbishment plan will be a key driver for the sector over the coming years. The Canadian Manufacturers and Exporters has long advocated for an affordable and reliable energy supply in Ontario to ensure the competitiveness of the manufacturing sector. The recent report issued by the FAO confirms that nuclear energy generation is the most cost-effective, low-emission option to achieve those objectives.”

“Bringing the reactors at Bruce A back on-line provided 70 per cent of the electricity Ontario needed to phase out coal from the province’s electricity supply," said Dave Butters, president, Association of Power Producers of Ontario. "The fact is that Ontario’s nuclear fleet is a key player in meeting climate change objectives and will be for decades to come.”

“The refurbishment of Ontario’s nuclear fleet will provide thousands of training opportunities and well-paying jobs for residents of the local communities and for Ontarians in general, bearing in mind the diversity reflected in those communities," said Patrick Dillon, business manager and secretary-treasurer, Provincial Building and Construction Trades Council of Ontario. "These refurbishments will provide the province with low-cost, reliable and emissions-free electricity for decades to come. They will also help spur investments beyond the MCR initiatives, positively impacting the broader economy. The FAO report on nuclear refurbishment outlines that this is the best choice available for Ontario. This will keep our energy supply stable, and our economy moving.”

“The FAO report on the province’s nuclear refurbishment plan confirms that the ongoing work to extend the life of the existing nuclear generators is the least-risky, most cost-effective, low-emissions option available to meet future demand," said Richard Koroscil, interim president and chief executive officer, Ontario Chamber of Commerce."As outlined in the report, through its life-extension plan, Bruce Power will continue to provide 30 per cent of Ontario’s electricity at 30-per-cent less than the average cost to produce residential power for years to come.”