The Ontario Power Authority has completed a contract amendment to the Bruce Power Refurbishment Implementation Agreement (BPRIA). The amendment secures a cost-effective source of electricity to the end of the decade and is the first step in a commercial agreement to secure 6,300 MW at the Bruce site for the long-term.
Since 2005, Bruce Power has invested about $1 billion in its four Bruce B units and, over the next five years, plans to invest an additional $1.1 billion. These investments are extending the operational lives of the units from the original end of life dates between 2016 and 2019 to between 2019 and 2020. Bruce Power will continue to receive the floor price set out in the BPRIA, currently at 5.2 cents per kilowatt-hour, which is the lowest cost generation under contract with the OPA.
This amendment provides significant financial benefit to Ontario ratepayers by securing 15% of Ontario’s annual electricity supply from Bruce B, which is reliable, low cost and low emission baseload power to 2020, a time period when some Bruce and Darlington nuclear units are expected to be offline for refurbishing. The OPA continues to work with nuclear operators to develop a co-ordinated schedule for the 10 remaining refurbishments to secure the output at these two sites for the long-term.
Generation from the Bruce site is an important component of the government’s plan to eliminate coal-fired generation in southern Ontario by the end of 2013. The planned investments in Bruce B units will create between 500 and 600 temporary jobs annually for skilled tradespeople.