N.B. premier seeks federal funds for reactor delay
New Brunswick Premier David Alward will be pressing Prime Minister Stephen Harper for federal funding to cover the escalating cost overruns associated with the delayed $1.4-billion Point Lepreau nuclear refurbishment project.
Alward met with officials from Atomic Energy of Canada Ltd., the federal Crown agency, this week to get his first full briefing on the problems facing the refurbishment project that is now expected to be finished three years late.
The New Brunswick premier will be travelling to the Francophonie summit in Switzerland this week and he will use the opportunity to push Harper for compensation for the reactor delays.
'I do not believe New Brunswick should be responsible for the challenges AECL has had because this is the first time the project has gone forward.' — Premier David Alward
"I will be conveying that to the prime minister. I do not believe New Brunswick should be responsible for the challenges AECL has had, because this is the first time the project has gone forward," Alward said.
"You can be sure that I will be working to ensure that New Brunswick's interests are protected."
The Point Lepreau reactor was supposed to return to service in September 2009, and now the latest estimate is fall 2012.
Although the New Brunswick government has a fixed contract to pay $1.4 billion for the project, it has been estimated the delay costs NB Power close to $1 million a day to purchase replacement power.
The former Liberal government had threatened to sue the federal government to pay for the extra fuel costs incurred during the refurbishment delay.
Alward said he doesn't believe New Brunswick taxpayers should be on the hook for AECL's learning curve, especially regarding the problematic calandria tubes.
The premier said that what AECL has learned following the setbacks at Point Lepreau has benefited a similar project in Korea.
"I do believe that they have been able to deliver now in Korea is good news for all of us. We need to see Lepreau up and running. We don't need to see any more delays," Alward said.
All 380 new calandria tubes were inserted in the reactor between December 2009 and April 2010. But dozens of those tubes failed air tightness tests.
The calandria tubes — made to house smaller nuclear pressure tubes, which in turn contain radioactive nuclear fuel bundles — were the first major pieces of equipment to be installed in the reactor as part of Point Lepreau's much delayed refurbishment.
Alward told reporters on Wednesday he informed AECL that he would be establishing a legislative committee to provide oversight of the project.
The premier said he told the federal nuclear corporation that he wants full transparency as the project moves forward.