Ontario utility could become partial owner of Point Lepreau nuclear plant

N.B. Power is negotiating with Ontario Power Generation on what's being called "a potential partnership" that could involve a partial ownership stake in Point Lepreau nuclear generating station.

Utility spokesperson Dominique Couture told CBC News an eventual agreement "could include some OPG ownership in the station."

Premier Blaine Higgs confirmed to reporters Wednesday that the Ontario Crown corporation is meeting with officials in the coming weeks to discuss improving the operation of New Brunswick's only nuclear power plant.

"The fact that they run multiple nuclear generators, and we only have one, means they have a level of expertise there. And we've gone through some of the ups and downs of Lepreau, especially in the last few years," he said.

"So how can we get better capacity there? And how can we turn that into a partnership for future generation?"

Asked if Point Lepreau could be sold to Ontario Power, Higgs did not rule it out.

"We don't have a plan. I don't know what an operating structure might look like, and the discussions with OPG have been [happening] for years.

"But I think we need to have a partnership, and at the end of the day we can build on that partnership. And I don't know what that looks like."

Point Lepreau has been plagued by problems since a four-year, $2.4-billion refurbishment project ended in 2012.

A December breakdown at the nuclear plant added another $380 million to N.B. Power's accumulated debt, driving it to $5.3 billion and wiped out a projected $45.7-million profit at the utility this year.

All possible options considered, utility says

In a statement, N.B. Power said "the status quo is not an option" for the utility, which is saddled with debt and facing several other costly refurbishments.

"All possible options are being considered as we lay out a path for a very different future that will ensure we have affordable, safe and reliable electricity for our customers and improved financial health," said Couture.

"N.B. Power has successfully utilized partnership models in the past to help resolve long-standing issues and improve performance. This included sharing of key talent, operating experience and industry best practices."

Higgs also pointed to agreements with other utilities, comparing a possible Ontario Power deal with Hydro-Quebec's role in the proposed $3-billion upgrade of the Mactaquac hydroelectric dam.

"We look to a nuclear operator that's much larger than us, has much more experience than us. Are we afraid to ask? Not on your life."

Details still being discussed

The discussions with the Ontario utility were revealed during Question Period in the legislature when Tracadie Liberal MLA Keith Chiasson produced a screen image of an email sent by the Ontario utility's CEO Ken Hartwick.

"As N.B. Power looks for ways to drive to drive performance and value for New Brunswick ratepayers in the production of clean, reliable nuclear power from [Lepreau], we are exploring what benefit may exist from a partnership between the two companies," the email said.

Hartwick wrote that the details were still being discussed but Ontario Power officials would be visiting the Lepreau plant next week.

"The partnership we are building with N.B. Power will be a business relationship made in the best interest of Ontario," he said.

In a statement to CBC News, Ontario Power spokesperson Neal Kelly repeated some passages from the email and said any partnership would be "made in the best interests of Ontario and New Brunswick."

Chiasson said he's not necessarily against the Ontario utility playing a role at Lepreau, but the government should be transparent about it.

"There's nothing wrong with that," he said. "If there is negotiating going on with OPG, we should know."

Green Leader David Coon said the argument that Ontario Power could help run Lepreau better was curious because N.B. Power has justified the salary of its vice-president nuclear, Brett Plummer, "based on his ability to run Point Lepreau well."

In 2017, N.B. Power confirmed that Plummer was being paid $500,000 US, or about $655,000 Cdn at the time, more than the utility's CEO.

Higgs told reporters an agreement with Ontario Power would also help the two provinces avoid competing with each other in the field of next-generation small modular nuclear reactors.

The Ontario Power email doesn't mention small modular nuclear reactors, but the premier said partnering with the utility would allow for a "a pan-Canadian approach" on promoting the technology.

Higgs also told reporters he welcomed measures in the federal budget Tuesday that might make the proposed Atlantic Loop more financially viable.

The plan would link electrical grids and upgrade transmission links in the four Atlantic provinces and Quebec to allow more selling of carbon-free hydroelectric power around the region.

Ottawa's budget will allow such projects to be paid for over a 30-year timeline and make them eligible for a 15-per-cent tax credit.

Higgs has been hesitant about the potential cost of the project, but said the federal policy moves could make it more affordable.

"I see a shift there in the federal government's philosophy, so we'll look at the loop, at the benefits to New Brunswick and the benefits to Atlantic Canada," he said.