Provinces to file legal action over reactor

Point Lepreau Refurbishment Delays are driving higher replacement power costs as AECL misses deadlines, forcing NB Power and Maritime Electric to source temporary electricity, spurring P.E.I. and New Brunswick toward legal action and settlement talks.

The Prince Edward Island and New Brunswick governments are working together on legal action against Atomic Energy of Canada Ltd. over delays at the $1.4-billion Point Lepreau nuclear refurbishment project.

Both provinces want compensation to recover the cost of buying replacement power while southern New Brunswick's Point Lepreau nuclear reactor is shut down.

AECL, the federal Crown corporation in charge of the refurbishment project at the reactor, has broken several deadlines in finishing the work.

Earlier this month, the federal nuclear agency announced it is no longer estimating when it will hand the refurbished reactor back to NB Power, where questions remain after the power deal over timelines.

Because P.E.I. buys most of its power from New Brunswick, Maritime Electric, the Island's electrical utility, has been forced to find a temporary and more expensive source of power.

P.E.I. Energy Minister Richard Brown said it is costing P.E.I. customers $2 million extra each month to buy alternate power while the reactor is shut down.

"I met with New Brunswick and New Brunswick is preparing court documents for working with the federal government," Brown said. "We've requested to be a partner in them in order to recoup this money from AECL."

Brown said negotiations with the federal government are underway on a possible settlement.

Maritime Electric said the utility will back any legal action to reduce replacement power costs.

"That account is becoming a very large concern of ours," said Fred O'Brien, the company's president.

"We support, and will support, any effort, whether it's discussions with the federal government or whatever avenue that is available to us."

AECL shut down the reactor, Atlantic Canada's only one, in 2008.

Repairs were originally supposed to be finished in 18 months, prompting energy accord refinancing measures by P.E.I.

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