The IESO (then OPA) and Bruce Power entered into negotiations following the release of Ontario’s Long-Term Energy Plan in December 2013, which indicated that nuclear power would account for 50% of Ontario’s electricity. On December 2, 2015, the parties concluded negotiations and signed the Amended and Restated Bruce Power Refurbishment Implementation Agreement.
Highlights of the refurbishment agreement include:
- Bruce Power will invest approximately $13 billion of its own funds and agrees to take full risk of cost overruns;
- The refurbishment is expected to achieve 6,300 MW of GHG emissions-free, baseload generating capacity;
- Work will commence in 2020; and
- The initial price for generation is set at $65.73/MWh starting January 1, 2016. The average price over the life of the contract is estimated to be $77/MWh or 7.7 cents per kWh.
- The government predicts that the refurbishment project will make 23,000 jobs possible and generate about $6.3 billion in annual economic benefits throughout the province.