Point Lepreau delays add $1B to project

NB Power is expecting the refurbishment project at the Point Lepreau Nuclear Generating Station will conclude in May 2012 and will cost an extra $1 billion.

Energy Minister Craig Leonard and Gatan Thomas, the president and chief executive officer of NB Power, were at the reactor on Monday as the Crown corporation allowed the media to tour the facility.

Leonard said the media tour was an introduction to a new period of openness where nuclear operations were concerned.

The latest update at the delayed refurbishment project was delivered on Monday.

"NB Power has now completed this review and believes that barring unforeseen circumstances, this new schedule is achievable," a NB Power statement said.

"Once retube activities are completed, NB Power will proceed with the commissioning activities which will take approximately four months in order to safely return the reactor to service in the fall of 2012, ready for the heating season."

In October, Atomic Energy of Canada Ltd., the federal nuclear corporation, reported its portion of the refurbishment would be completed in May 2012. It will then take NB Powera few months tofinish the refurbishment project.

Atlantic Canada's only nuclear reactor was supposed to be back generating power by September 2009 after the $1.4-billion refurbishment project was completed.

AECLran into problems in the refurbishment process, particularly around the 380 calandria tubes.

Most of the 380 calandria tubes had been installed and are now being removed after leaks were found.

The company hopes to have the last of the calandria tubes removed on Tuesday and they will begin reinstalling the tubes in January.

The project is now $1 billion over budget, according to Thomas.

It is not clear how much of the cost overruns each level of government, or corporation, will be responsible for paying.

Leonard said last week the New Brunswick government expects full compensation for theadditional costs associated with the delays.

While in Saint John on Friday, Prime Minister Stephen Harper said the federal government would adhere to the retubing and refurbishment contracts.

When the former Bernard Lord government signed the refurbishment contracts, it agreed to a firm price of $1.4 billion. However, the utility is responsible for roughly $30 million in additional costs each month that the project is delayed.

NB Power has said there are $11 million worth of additional capital costs each month the project is delayed and another $19 million for replacement fuel costs.

The former Liberal government had threatened to sue the federal government for the cost overruns.

Leonard also said on Monday the Progressive Conservative government will follow through on the election campaign promise to freeze NB Power rates for three years.