Bruce Power Update – Toronto Star News Story
This evening, the Toronto Star has posted a story regarding the price of power paid under contract to the Bruce A Units under the Bruce Power Refurbishment Implementation Agreement (BPRIA) with the Ontario Power Authority (OPA).
In the contract, there are provisions referred to as force majeure that ensure Bruce Power is not adversely impacted by an external event beyond our control such as the Unit 2 event reported previously.
Following the event, we submitted a force majeure claim to the OPA providing them all the necessary information to make a determination. Based on extensive review of our claim, we believe OPA will support our position. If they accept our position, the price from the other operating units would not be impacted.
Therefore, effective July 1st the price of power would remain the same. As mentioned in our last release, Bruce Power has assumed all capital cost project risk over $3.4 billion and this will not change.
Although the Toronto Star story cites the Hourly Ontario Energy Price (HOEP), it’s important to note this is not the price consumers pay for electricity. They pay a combination of HOEP and something referred to as Global Adjustment. For example, today the combined price of these is $75 MWh, much higher than the price Bruce A output is paid at $68 MWh. This is an important fact and supports our position that Bruce Power is a supplier of low-cost electricity for the province.
For more information please visit http://www.brucepower.com/5742/news/bruce-a-operations-update/ for Bruce Power’s May 18th Bruce A Operations Update.