Bruce Nuclear Power Plant (Phase 2)

operational

Opportunity In 2003 the Government of Ontario committed to phasing out coal as a power source by 2014. The combination of losing this generating capacity and increased demand made it necessary to refurbish, rebuild or replace 25,000 megawatts of supply. A competitive procurement process resulted in the selection of a Bruce Power—a subsidiary of British Energy— to lease, develop and operate Bruce Nuclear facility, located on Lake Huron. The project has been called “one of the largest and most complex public-private partnerships in Canada.” Following the release of the Government of Ontario’s Achieving Balance: Ontario’s Long-Term Energy Plan in December 2013, the Government of Ontario and Bruce Power entered into negotiations to refurbish Bruce B Units 5-8. On January 1, 2016 amendments to the agreement came into effect, enabling the company to progress with a series of incremental life-extension investments, including refurbishment. Innovations Bruce Power will bear the risk of delivering the project on-time and on-budget with upside sharing for better than planned performance. As has been the case since 2001, Bruce Power will continue to assume responsibility for operating the site. Bruce Power previously had two partnership structures—Bruce A LP (Bruce A) and Bruce Power LP (Bruce B). As a result of this transaction Bruce Power will move to a single partnership structure. Results Life-extension activities for Units 3-8 will support long-term refurbishments on Unit 6 in 2020, optimizing the operational life of the site and offering significant ratepayer and system benefits. The refurbishment of each unit will add approximately 30 to 35 years of operational life, while other life-extension investments will add a combined 30 reactor years of operational life to the units. The program will secure an estimated 18,000 jobs directly and indirectly from operations, and an additional 3,000 to 5,000 jobs annually throughout the investment program, injecting billions into Ontario’s economy. Bruce Power will continue to provide approximately one-third of its output as flexible generation, allowing the province to permanently balance system needs in a post-coal environment.

High