Bruce Power and Cameco Corporation announced long-term arrangements today in support of Ontario’s Long Term Energy Plan (LTEP) which will help ensure the Bruce site continues to provide low-cost electricity to families and business through 2064.
The two companies extended their exclusive fuel supply arrangement for an additional 10 years, and entered an arrangement for Cameco to provide reactor components for all six of Bruce Power’s Major Component Replacement (MCR) projects starting in 2020. The total value of the arrangements is estimated to be approximately $2 billion to 2030.
“By entering into a long-term arrangement for fuel now while the market conditions are favourable, we are in a position to deliver an estimated $200 million in ratepayer savings over the next decade based on current forecasts, while also giving Cameco business certainty which is important to both Ontario and Port Hope,” said Mike Rencheck, Bruce Power’s President and CEO. “We are also leveraging Cameco’s proven capability in Ontario to manufacture key components for our MCR program with production beginning in the near future and representing a spend of up to $60 million across our fleet.”
The fuel cost savings realized through this new arrangement will go directly to reduce the cost of electricity to ratepayers. As a private sector operator, Bruce Power is responsible for meeting all investment requirements for its life extension project, including the procurement of reactor components from Cameco for future MCRs.
“We are delighted to extend our fuel supply arrangement with Bruce Power to meet 100% of their requirements out to 2030 and participate in their Life Extension Program by supplying reactor components,” said Tim Gitzel, Cameco’s president and CEO. “Bruce Power’s commitment to continue delivering clean, reliable and affordable nuclear power provides a bright future for 700 people employed at our Ontario operations.”
Lou Rinaldi, MPP for Northumberland-Quinte West, said Bruce Power’s Life Extension Program will deliver a major contribution to the regional economy for decades to come.
“Each year through to 2064, Bruce Power will create and sustain 22,000 direct and indirect jobs and generate $4 billion in economic benefit in Ontario through direct and indirect spending on operational equipment, supplies, materials and labour. That’s a huge contribution that will be felt by thousands in Northumberland-Quinte West and across the province,” he said.
Kim Rudd, Parliamentary Secretary to Canada’s Minister of Natural Resources and MP for Northumberland-Peterborough South, recognized the positive economic impact of the partnership.
“This agreement between Bruce Power and Cameco will continue to bring major long-term economic benefits to the Northumberland region,” she said. “I applaud both of these organizations on their ongoing success as they continue to produce clean, greenhouse gas emissions-free electricity in Canada.”
Minister of Energy Glenn Thibeault emphasized the Ontario government’s commitment to the essential role nuclear power plays in the province’s electricity supply mix. “The refurbishment project at Bruce Power is a significant driver of our province’s economy,” said Minister Thibeault. “Our investments in nuclear generation will continue to help deliver clean and reliable electricity to all Ontario families and businesses.”
These arrangements are subject to the negotiation and signing of definitive agreements.
About Bruce Power
Bruce Power operates the world’s largest operating nuclear generating facility and is the source of roughly 30 per cent of Ontario’s electricity. The company’s site in Tiverton, Ontario is home to eight CANDU reactors, each one capable of generating enough low-cost, reliable, safe and clean electricity to meet the annual needs of a city the size of Hamilton. Formed in 2001, Bruce Power is an all-Canadian partnership among Borealis Infrastructure Management (a division of the Ontario Municipal Employees Retirement System), TransCanada, the Power Workers’ Union and the Society of Energy Professionals. A majority of Bruce Power’s employees are also owners in the business.
Cameco is one of the world’s largest uranium producers, a significant supplier of conversion services and one of two Candu fuel manufacturers in Canada. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations. Our uranium products are used to generate clean electricity in nuclear power plants around the world. We also explore for uranium in the Americas, Australia and Asia. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
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