NB Power deal would save on Lepreau costs: Jack Keir
Published Thursday November 5th, 2009
Hydro-Québec would foot the bill for replacement power
FREDERICTON - Energy Minister Jack Keir says the deal to sell NB Power to Hydro-Québec would relieve the province of about $275 million in costs for replacement power while the Point Lepreau nuclear facility is out of commission.
"If we sign an agreement on March 31, Hydro-Québec would take on that risk and responsibility for providing that replacement fuel," Keir told reporters in Fredericton yesterday.
The $1.4-billion refurbishment, designed to extend the life of the Lepreau generating facility, was initially scheduled to take 18 months. Delays have almost doubled that timeline, meaning additional energy must now be purchased to replace the power Lepreau would have produced. This has doubled the estimated cost of replacement power from the original $400 million to $800 million.
After March 31, the date by which the deal with Quebec must be finalized in the legislature, those costs would become the responsibility of Hydro-Québec. Keir says that would save New Brunswick about $275 million of the total replacement energy costs.
Under the terms of the agreement, the Quebec utility would assume ownership of the nuclear facility, but not until its refurbishment is complete and the plant is back online.
The responsibility of paying for the additional replacement power has been the source of tension between the province and the Atomic Energy of Canada Ltd., the federal Crown corporation managing the refurbishment. The Liberal government has insisted the costs should be covered at the federal level and Keir says that will remain true even if Quebec assumes responsibility for the remaining balance.
"I can clearly tell you the debate will still be on with the federal government over the (remaining) $125 million," he said.
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You know what else would save on Lepreu costs?
http://telegraphjournal.canadaeast.com/search/article/522828
"Neither will ratepayers or taxpayers be on the hook. Under the terms of its contract, AECL will have to absorb cost overruns - including replacement power, which can cost $1-million a day."
Neither will ratepayers or taxpayers be on the hook. Under the terms of its contract, AECL will have to absorb cost overruns - including replacement power, which can cost $1-million a day.
So what is this article trying to tell us? The taxpayers and consumers were never on the hook in the first place! Unless David Hay and Shawn Graham were lying to us again!