Skip to main content

The Rough and the Smooth in Canada

An editorial in the Ottawa Citizen offers some surprises.

Here's the rough:

The latest fiasco in the world of nuclear is that the rehabilitation of Bruce Power units 1 and 2 is running up to 24 per cent over cost estimates. That could mean extra costs of between $350 million and $650 million on the $2.75-billion project. Ontario taxpayers are on the hook for the first $300 million of overruns and then a quarter of the cost after that. Bruce Power is owned by TransCanada Corp. and the Ontario Municipal Employees Retirement System. Already the provincial auditor has said that Queen's Park didn't drive a tough enough deal on the Bruce plan.

Worth noting here is the differences between the U.S. and Canada, with government (and taxpayers) taking a heavier role in costs and cost overruns in the energy sector than would happen in the U.S. Add to this the difference between Canada's provinces and U.S. states, where provinces go their own way far more than states do.

Here's the smooth:

That said, it would be nice to have a large nuclear industry in Ontario based on a prosperous AECL [Atomic Energy of Canada Ltd.]. Nuclear is expected to be a huge economic generator in the future so it would be an enormous plus to the Ontario economy. And AECL has a revolutionary new ACR reactor designed to use less uranium and generate less spent fuel.

So what to do? The province needs to have a competitive, fair bidding process including as many worldwide companies as possible to ensure the best deal.

Hey! Wait a minute! Shouldn't the argument be that nuclear energy is too expensive, here's an unexpected expense, for pete's sake, so kill the whole project and right now, buddy, if not sooner. That's the argument that the enviro's keep hammering at and frankly, that's what the first part of the editorial leads one to expect.

But read this again:

Nuclear is expected to be huge economic generator in the future so it would be an enormous plus to the Ontario economy.

And there it is. The cost of a nuclear energy plant is, admittedly, not peanuts, but the benefits are the size of an elephant - not only in what it does itself - loads of clean energy at a reasonable price - but in the way its presence ripples through the economy in positive ways.

We posted a little while ago an NEI-produced economic benefits report about Virginia's North Anna Power Station. Take another look at it and you'll see arguments the industry has been making for years now taking root in editorials like this. Now, arguments that take root do not necessarily result in tall, healthy trees - we've seen a lot of mangled shrubs around the yard, often planted by our environmental friends ironically enough - but these arguments are good and they are rooted in truth. And the fruit is mighty tasty.

Comments

DV8 2XL said…
According to the Canadian Nuclear FAQ we seem to do a lot better overseas than at home on nuclear projects

1996 Cernavoda-1 Romania On budget, on schedule

1997 Wolsong-2 South Korea On budget, on schedule

1998 Wolsong-3 South Korea On budget, on schedule

1999 Wolsong-4 South Korea On budget, on schedule

2002 Qinshan-4 China On budget, 6 weeks ahead of schedule

2003 Qinshan-5 China On budget, 4 months ahead of schedule

2007 Cernavoda-2 Romania On budget, on schedule

Endless delays have hampered the Bruce Project as they did the Darlington mostly do to regulatory interference, apparently when these are minimized these builds can be done on time and on budget.

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap

An Ohio School Board Is Working to Save Nuclear Plants

Ohio faces a decision soon about its two nuclear reactors, Davis-Besse and Perry, and on Wednesday, neighbors of one of those plants issued a cry for help. The reactors’ problem is that the price of electricity they sell on the high-voltage grid is depressed, mostly because of a surplus of natural gas. And the reactors do not get any revenue for the other benefits they provide. Some of those benefits are regional – emissions-free electricity, reliability with months of fuel on-site, and diversity in case of problems or price spikes with gas or coal, state and federal payroll taxes, and national economic stimulus as the plants buy fuel, supplies and services. Some of the benefits are highly localized, including employment and property taxes. One locality is already feeling the pinch: Oak Harbor on Lake Erie, home to Davis-Besse. The town has a middle school in a building that is 106 years old, and an elementary school from the 1950s, and on May 2 was scheduled to have a referendu

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin