April 10, 2007
Bruce Power deal was good for Ontario: Auditor General report
Energy Minister Dwight Duncan released a report by Ontario’s Auditor General on the Bruce Refurbishment Agreement announced in October 2005.
“In 2005, we announced that we had successfully transferred much of the operating and cost overrun risks from the ratepayer to Bruce Power. The Auditor’s review confirms this conclusion,” Duncan said.
The Auditor’s report assessed whether the decision-makers had what was needed to ensure the agreement was a good value for Ontario taxpayers. The report found the province considered and addressed risks and issues, and had all of the information and expertise needed to negotiate an extremely complex agreement.
It noted that external financial advisors found Bruce Power’s rate of return on its investment was within an acceptable range.
It also reviewed some of the choices made in the negotiations to arrive at the agreed-upon price.
Over the past 18 months, the price paid to Bruce Power has been 6.1 cents per kilowatt hour.
This is lower than the agreed-upon price of 6.3 cents per kilowatt hour as a result of lower fuel costs.
The agreement was signed to secure a long-term supply of baseload power for Ontario homes, businesses and hospitals.
Between 1995 and 2003, Ontario’s net supply of power had fallen by more than 1,800 megawatts — the equivalent of Niagara Falls running dry.
As part of the agreement, Bruce Power is investing $4.25 billion to restart Bruce A Units 1 and 2, refurbish Unit 3 and replace the steam generators in Unit 4.
Over the next 15 years Ontario will need to refurbish, rebuild or replace 25,000 megawatts of supply.
DCN NEWS SERVICES
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 527 projects with a total value of $1,552,331,732 that Reed Construction Data Building Reports reported on Friday.
$120,000,000 Oakville ON Tenders
$48,225,000 Etobicoke ON Prebid
$40,000,000 Ottawa ON Negotiated
- CCA96th: Unlocking Canada's Potential
- VIDEO: LiUNA Local 183 Training Centre introduces new programs
- Wins delivered on infrastructure front: Rizzardo
- Behind the Velodrome’s Veil
- Ontario’s prompt payment bill needs work but supported
- Southwest L-evation
- Post-bid clarifications make feds liable for bid repair
- Panama Construction Fact for Today
- Ritchie Bros. hold first Canadian auction of 2014
- Skilled labour needs changing in Saskatchewan
- Quebec’s construction momentum ebbs after 15 years of expansion
- VIDEO: Canadian Construction Association conference Panama preview
- Concerns raised about P3 approach for Saskatchewan schools
- Journal of Commerce Preview for the week of March 10th, 2014
- Wood Design Awards
- Outgoing chair reflects on time at the helm of the CCA
- School board asks for traditional procurement
- Site Services in Vancouver
- Looking to improve contract awards
- Environmental verdict riles Taseko
- Prentice to mediate First Nations agreements
- CAWIC funded to create action plan to attract women
- More video surveillance used on construction sites
- Modular workforce housing meets Alberta Building Code standard
- Manitoba outlines infrastructure plan
- BC Hydro posts RFQ for Site C project