Bruce Power statement on Force Majeure claim
August 9, 2012 – Bruce Power has received confirmation from the Ontario Power Authority (OPA) that a Force Majeure (FM) claim under the Bruce Power Refurbishment Implementation Agreement (BPRIA), related to Unit 2, has been accepted.
Bruce Power will continue to be responsible for all project costs over $3.4 billion as agreed to in June 2009, while also assuming responsibility for the lost revenue associated with the Unit 2 FM event. Repairs to the non-nuclear system on Unit 2 are expected to be complete and Unit 2 generating electricity in the fourth quarter of this year. Bruce Power will also continue to assume all cost and schedule impact related to the event.
Following discussions with the OPA during this process, Bruce Power has also made a number of operational adjustments for 2012. Bruce Power is executing an expanded outage investment program on Unit 4, in support of extending the life of the unit to the end of decade, at a cost to Bruce Power of $120 million. The work program will involve 800 temporary workers at peak and will be completed in the fourth quarter.
This will align the lifespan of Unit 4 with Unit 3, which recently underwent a $300 million investment program to extend its life by up to an additional 10 years. The operational alignment of Units 3 and 4 is an important component of future refurbishment planning on the Bruce Power site.
While Bruce Power carries out a range of activities to manage the commercial impacts of the Unit 2 event, the other operating units at Bruce A will continue to receive the contracted price of power from the Bruce A facility. The output from Bruce A is low-cost, reliable and safe electricity that is essential to meeting Ontario’s energy needs.
About Bruce Power
Bruce Power is a partnership among Cameco Corporation, TransCanada Corporation, BPC Generation Infrastructure Trust, a trust established by the Ontario Municipal Employees Retirement System, the Power Workers’ Union and The Society of Energy Professionals.