N.B. plans $1.4B refurbishment of aging nuke plant

FREDERICTON, New Brunswick – The New Brunswick government was expected to announce today it will go ahead with a $1.4 billion plan to refurbish its aging Point Lepreau nuclear power plant near Saint John, about 25 miles from the Maine border.

The question is: How will the province do it without jolting consumers and businesses with hefty rate increases?

Earlier this month, the federal government rejected the province’s request for a $400 million contribution toward the project, saying such a grant would set an expensive precedent that would prompt other provinces to seek a similar deal.

New Brunswick Premier Bernard Lord – who had suggested the province could be forced to build coal-fired generating plants if Ottawa failed to deliver the cash – said the province had been misled and betrayed by the federal government.

With Ottawa out of the picture, the province will need a partner with deep pockets to get the job done.

Atomic Energy of Canada Ltd. and Bruce Power of Ontario have both come forward to say they could help with the project. A deal with Bruce Power would see the company shoulder most of the refurbishment risk in exchange for a long-term contract to operate the plant and sell its electricity back to NB Power.

With AECL, the province would take on most of the risk while the Crown corporation would be contracted to do the retrofit, extending the life of the plant 25 years beyond its projected life span.

Point Lepreau came online in 1983. Its Candu reactor, built by AECL, generates one-third of the province’s electricity. It was supposed to be pulled from service in 2008.

Government sources, who did not want to be identified, said the AECL scenario was the preferred option. Steve Skidd, a spokesman for AECL, said while officials would not be at the Friday news conference, they were planning to do a media tour in the province in August.

“I think we need to tell our story fully … whatever the announcement is,” he said.

No one from Bruce Power was willing to comment Thursday.

Both companies had been given the last two weeks to improve their offers to the province.

Members of the provincial government were briefed on details of the decision Wednesday, but ministers entering a cabinet meeting Thursday said there were still some decisions to be made.

“It’s an interesting concept,” said Bruce Fitch, the province’s energy minister. “It’s a large announcement and there are pros and cons on both sides.”

Ross Galbraith, spokesman for the International Brotherhood of Electrical Workers, said he expected a positive announcement. The union represents 640 of the 700 employees at Point Lepreau.

Galbraith said his members could work with either AECL or Bruce Power.

“We’ve operated that plant for a long time and we’ve relied on AECL for the design expertise. On the other hand, Bruce Power has a very good reputation in the nuclear industry, and a good reputation with their employees as well. Either scenario, I think we can’t miss.”

But a leading energy watchdog said he thinks the province could decide to retire the aging power plant.

Tom Adams, executive director of Toronto-based Energy Probe, says if NB Power sticks to its new business philosophy, it won’t take on a money-hungry project like the retrofit of Lepreau.

“The project is not economic,” he said. “It doesn’t stand on its own, and can’t pay for itself … New Brunswickers simply can’t afford it.”

Shawn-Patrick Stensil, a spokesman for Greenpeace, said New Brunswick should use the opportunity to shut down Lepreau and pursue alternative energy sources.