The Star
By Tyler Hamilton
Published On Thu Nov 5 2009

First the cost overrun was announced. Now it's the dreaded delay.

Nuclear operator Bruce Power originally hoped the two reactors it was refurbishing would be back in service in late 2009 or early 2010. But one of the project's key investors, TransCanada Corp., disclosed Wednesday that the first of the two reactors now won't be online until mid-2011, with the second reactor following about four months later.

It's the latest sign that the nuclear "renaissance" in Canada is off to a slow start, if not stalling altogether.

Plans to build a new nuclear plant in Ontario are on hold and the only two refurbishment projects in the country – the restart of Bruce A Units 1 and 2 northwest of Toronto and the overhaul of the Pointe Lepreau plant in New Brunswick – are over budget and more than a year behind schedule.

"Bruce and the partners are in the middle of taking a really comprehensive look at cost and schedule," Alex Pourbaix, president of Trans Canada's energy division, told analysts during an earnings call.

Asked whether the delay would increase the cost of the project, Pourbaix said TransCanada doesn't expect a material impact.

The original cost of the project was $2.75 billion, but an independent review revealed in April 2008 that costs had climbed at least $350 million and the overrun could reach $650 million.

TransCanada then confirmed this past July that the project would cost at least $3.4 billion, adding it "may exceed that amount by approximately 10 per cent" – or another $340 million.

This would bring the total overrun to nearly $1 billion, or 36 per cent above the original cost estimate.

Read more: http://www.thestar.com/business/article/721335--setbacks-slow-bruce-powe...