NB Power & AECL Reach Agreement on Point Lepreau

Fredericton -- -

Fredericton -- New Brunswick Power Corporation (NB Power) and Atomic Energy of Canada Ltd. (AECL) have reached an agreement on the refurbishment assessment program at the Point Lepreau Generating Station.

The assessment program will define the technical scope for the potential refurbishment of the station. It consists of preliminary engineering for fuel channel replacement and a comprehensive plant condition appraisal. Under the agreement, AECL will act as the general contractor and will utilize NB Power resources. The preliminary engineering and assessment program represents an investment of up to $40 million by NB Power. NB PowerÂ’s Board of Directors will make a decision on whether to support refurbishment and life extension of Point Lepreau in 2002. A technical and economic review of Point Lepreau by consultant Hagler Bailly in 1998 determined that refurbishment in the 2006-2008 period may be desirable based on refurbishment costs and the achievement of a high capacity factor over the stationÂ’s extended life. Following completion of the AECL assessment, the costs and benefits of refurbishment will be compared with other development opportunities to determine the most viable option for NB Power. Refurbishment would require the replacement of fuel channels, the calandria tubes and other plant components to extend the stationÂ’s operating life by 25 years.

"This agreement is the beginning of a new business relationship between NB Power and AECL," said NB Power President and CEO James Hankinson. If the decision is made to refurbish Point Lepreau, NB Power intends to appoint AECL as project manager and implement a risk and benefits sharing arrangement with AECL based on the stationÂ’s future operating performance.

"Our companies have complementary strengths that will help achieve the best operational and financial value from Point Lepreau," added Mr. Hankinson.

"As the designer and original supplier of the CANDU 6 reactor at Point Lepreau, AECL is a technology leader capable of delivering complete project management and engineering services," said R. Allen Kilpatrick, President and CEO of AECL.

"We have tremendous confidence in the capability of the CANDU design. This strategic relationship will help develop a design framework for life extension of the CANDU 6," Kilpatrick said.

"The operators of nuclear generating stations in the United States have markedly improved the performance of their plants and many are looking for life extensions. NB Power will be the leader in refurbishing CANDU 6 power reactors," Kilpatrick added.

NB Power's CANDU 6, 635 MW unit at Point Lepreau began operation in 1982 and supplies up to 30% of the utility's generation. After hydro, nuclear is the lowest cost generator on NB PowerÂ’s system. It is also an important component of the utilityÂ’s climate change and sulphur dioxide management initiatives because it does not contribute to these emissions.

Over the past three years, Point Lepreau has instituted performance improvement initiatives to achieve more consistent, predictable operations. Since 1996, the station has achieved capacity factors of 72% (1999/00), 84% (1998/99) and 66% (1997/98).

For More Information, Contact: Marcella LeBlanc NB Power Director Public Affairs (506) 458-3777