On March 25, 2020, Bruce Power declared FM under its contract with the Independent Electricity System Operator (IESO) due to the impact of COVID-19. At the time the FM was declared, the Unit 6 MCR Program was ahead of schedule with the early completion of the reactor defuel window. The total value of the transaction is more than $3.2 The agreement adheres to the 2013 Long-Term Energy Plan refurbishment principles and ensures that operating and refurbishment execution risks reside with Bruce Power. The FAO estimates that the Plan will result in nuclear generation supplying a significant proportion of Ontario electricity demand from 2016 to 2064 at an average price of $80.7/MWh in 2017 dollars. The IESO then has until 12 months before the refurbishment begins to verify the estimate. In 2019 the Ontario Chamber of Commerce released an economic impact assessment of the MCR Project undertaken as part of Bruce Power’s Life-Extension Program. Pickering, ON leverage our uranium expertise in this unique opportunity that builds on The difference between a solar lease and a solar PPA (Power Purchase Agreement) is explained in this article. LEASE AGREEMENT This Lease is made on BETWEEN (LANDLORD) whose address is AND (TENANT) The word "TENANT" refers to each Tenant named above. Bruce Power is a partnership among British Energy, the UK's largest electricity is the generation and sale of electricity to customers in Ontario and to Solar leases mean a fixed monthly lease payment. our experience of trading in competitive markets," said British Energy Chairman, Central to this contract is the 13-year Major Component Replacement (MCR) Project, which aims to extend the life of Units 3- 8 for an additional 30 years. looking forward to working with our partners to make Bruce Power both a business Our philosophy employs a whole life-cycle approach in that we reduce waste, generate less waste at the company level, find opportunities to reuse products (on-site, off-site donations, auction), and implement recycling programs that are available in the ever-changing recycling market. and the two main unions representing employees on the Bruce site, the Power In 2013, the Province of Ontario’s Long Term Energy Plan (LTEP) established the policy framework for future refurbishments including a requirement to establish realistic off-ramps. 12 and Bruce Power, including lease payments. nuclear electricity," said Bernard Michel, Cameco's Chair and Chief Executive In 2017 the FAO reviewed how the Nuclear Refurbishment Plan will impact ratepayers and the province, and to identify how financial risk is allocated among ratepayers, the province, OPG and Bruce Power. Create your free motor vehicle lease form today to lease a car, truck, motorcyle, or other vehicle. British Energy's current interest of 85% will reduce progressively to 79.8% as The report, Major Component Replacement Project Economic Impact Analysis, reveals that the 13-year-long MCR Project would be of significant benefit to the economy through economic impact, GDP increase, tax revenue, and opportunities for local workers and industry. Under the contract, subsequent MCRs are expected to improve on cost and schedule by building on lessons learned and experience. We comply with all waste regulations and requirements of the relevant federal authorities. The restart is conditional on obtaining regulatory approvals and achieving Power effective today. history. to where we are today and it will be our future actions and behaviours that will Bruce facilities and represents a major step towards opening the Ontario nuclear power in Canada. This page is set up to provide information to the public and interested stakeholders on this important arrangement with the IESO. Asset Management includes the ongoing inspection, maintenance, replacement and refurbishment activities not included in Major Component Replacement necessary to extend the life of components. Under separate agreements, Bruce Power leases the facility from Ontario Power Generation (OPG) and through this lease is required to assume all costs associated with its operation, life extension, services and through the lease payments fund the long-term liabilities including the rental of the facility. agreements and will safeguard existing pensions and other benefits. 14456 stations until 2018. and enthusiasm we have received from employees, the unions and the local The C$3.2 billion transaction includes an initial payment of C$625 million, electricity marketplace to competition. the unions take up their full equity interest in Bruce Power by May 2003. "I really would like to say 'thank you' for the support Bruce Power entered into the Bruce Power Refurbishment Implementation Agreement (BPRIA) in 2005 to enable the restart of Bruce Units 1 and 2, to return the site to its full operating capacity of eight units. The FM notice covered the Unit 6 Major Component Replacement (MCR) and certain eligible FM Asset Management Work. career challenges for both our members and communities.". The current price paid for electricity from Bruce Power, as of April 1, 2020, is $78.55/ MWh. before various closing adjustments, paid in three installments, as well as PROPERTY: TENANT agrees to rent from LANDLORD and LANDLORD agrees to rent to TENANT (the PREMISES). "This transaction represents a major step forward in our North American To learn more about decommissioning and fuel costs see here. The IESO also hosts a Price Overview Section on its website, which contains historical data on electricity prices, as well as the impact on the Global Adjustment (GA) by each generation type, including Bruce Power Nuclear. Are solar and wind really killing coal, nuclear and grid reliability? years. Toll Free: 1 866 748 4787 The Bruce nuclear power stations include four operating reactors at the Bruce B However, the company continues to endeavour to answer any questions and provide information of interest to the public and stakeholders. A feasibility study for the potential deployment of micro nuclear reactors across Canada, including Bruce Power being the owner and/or operator of a fleet of U-Battery units. Bruce Power must and will use commercially reasonable efforts to prevent or remedy the situation and resume its obligations as soon as the event of FM has been overcome. Lease Agreement: Bruce Power, as the tenant of the leased premises, pays to OPG in 2 monthly installments an annual rent consisting of a predetermined base component and a 3 variable supplemental component. It allows the company to operate the plant until 2018, with an option to extend the arrangement for up to 25 more years. The lease is for 18 years until 2019 with an option to extend another 25 years to 2044. There is some commercially sensitive information that has to remain confidential to maintain that competitive tension. generator, Cameco Corporation (15%), the world's largest uranium fuel supplier From an environmental and financial standpoint, waste reduction is good for our company and for the communities we touch. Note Holders, Bruce Power Nuclear Generating Station PPA Key Elements, 2013, the Province of Ontario’s Long Term Energy Plan (LTEP), Amended and Restated Bruce Power Refurbishment Implementation Agreement, Major Component Replacement Project Economic Impact Analysis, Powering Innovation, Jobs and Economic Growth, Economic Development and Innovation Initiative, better than planned MCR performance and/or. Work has since resumed on MCR activities and is back on track with strict prevention measures in place to protect workers and to ensure adequate provisions for ongoing operations within the facility. All the output from the Bruce stations will be sold into the new Ontario Define Bruce Power Collective Agreements. The Bruce Power facility will continue to be managed and operated by the management and staff of Bruce Power. 1. For more information see here Major Component Replacement Project Economic Impact Analysis. Bruce Power is responsible for all capital costs related to the MCR program and the risk of executing the project from a cost and schedule perspective once it receives approval to proceed. to working with you to secure exciting and long- term working relationships and For certainty and off-ramp purposes, the contract contains and Bruce Power agreed, to a cost and schedule estimate for each refurbishment project. Geneva, NY A reactors have a capacity of 1,500 megawatts. 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If Bruce Power is unable to perform or is delayed in performing its obligations  and determines the reason for such inability or delay was an act, event, cause or condition that it believes was an event of FM, then as agreed to in our contract, we may invoke FM. Energy Professionals. In December 2015, Bruce Power amended its long-term contract with the IESO, an organization established under the Electricity Act to manage Ontario’s electricity system. The agreement aims to extend the life of Bruce nuclear generating station’s CANDU reactors to 2064. This lease arrangement is designed to ensure all costs related to Bruce Power’s operation are assigned to the company and included within its price of power. total, fixed and variable payments are estimated to be about C$150 million in "This event marks the beginning of a new era for our employees and the local Our Refurbishment Implementation Agreement was developed to ensure Bruce Power assumes responsibility for the operation and life extension of the units, ensuring a stable supply and price certainty of electricity generated at the site. As outlined above, this is where the agreements with OPG related to the lease and other services are aligned with Bruce Power’s contract with the IESO to ensure the price is fully inclusive of all costs. The IESO has a team assigned to the Bruce Power site to monitor the development of these estimates consistent with the contract and project management best practices by Bruce Power in the facility. The alignment of the MCR scope with asset management plans will support Bruce Power’s goal for safe and reliable long-term operation while helping to ensure project success by focusing the scope of MCR work and optimizing the life of other assets. the Bruce site, Bruce Power is honouring the current collective bargaining Refurbishment Agreement. Our Life-Extension Program, including the Major Component Replacement (MCR) Project, will provide clean, reliable, low-cost electricity to 2064 and beyond. The initial lease term was for 18 years plus communities.". OPG's goal is to be a premier North American energy annual lease payments. Sir John Robb. The Bruce Power facility will continue to be managed and operated by the management and staff of Bruce Power. Under the lease agreement Bruce Power Generation will pay C$625 million ($420.8 million) to Ontario Power Generation, which includes an initial lease payment of C$540 million ($363 million) and fuel stock and other assets for C$85 million ($57 million). Bruce Power entered into the Bruce Power Refurbishment Implementation Agreement (BPRIA) with the government of Ontario in 2005 to restart Units 1 and 2, which had been shut down by Ontario Hydro, and refurbish the entire plant in phases. The two Bruce 13 14 In addition, OPG and Bruce Power have entered into a number of associated agreements for 15 the provision of services by OPG to Bruce Power or by Bruce Power to OPG. In Ontario, virtually all electricity generated in the province is purchased at rates set under contract with the IESO or through prices set by the Ontario Energy Board (OEB). 4 5 In addition, OPG and Bruce Power have entered into a number of associated agreements … The report – a joint effort between the Canadian Manufacturers & Exporters, the Provincial Building and Construction Trades Council of Ontario, and Bruce Power – shows that 22,000 Ontario jobs will be created and sustained directly and indirectly through the Bruce Power Life-Extension Program every year, while $4 billion in domestic economic benefit will be realized through the direct and indirect spending on operational equipment, supplies, materials and labour income annually, For more information see here – Powering Innovation, Jobs and Economic Growth. As outlined in the Amended and Restated Bruce Power Refurbishment Implementation Agreement  Bruce Power and the Independent Electricity System Operator (IESO) under certain circumstances may invoke Force Majeure (FM) which is a typical element to contractual agreements of this nature. As a private sector company, we enter into commercially competitive arrangements and arrange financing to deliver on our obligations. The company is required under its contract with the Independent Electricity System Operator (IESO) to sell all of its electricity output at a fixed price. As of April 1, 2020, the price of electricity from major sources of electricity in Ontario is as follows: The average price of electricity paid to generators as of April 1, 2020 in Ontario is $128 .03/MWh. station, with a capacity of 3,140 megawatts, and four laid-up reactors at the communities," said Dennis Fry, Power Workers' Union Executive Board member and In this capacity the IESO enters into contracts for electricity output with various supply sources across the province. Bruce Power is now the licensed operator and will lease the Bruce A … Workers' Union (up to 4%) and The Society of Energy Professionals (up to 1.2%). Fax 905-686-1078 In this case, FM includes epidemics and pandemics. PO Box 1540 177 Tie Rd., R.R. As outlined, in 2019, this cost is 7.5 cents per kW/h and this covers all investment the company has made in the site, as well as the funding of all long-term liabilities as required in the company’s … The transaction included a lease agreement for the facility and a series of ancillary agreements . Used fuel from Bruce Power’s operations is owned by OPG, and as part of the lease agreement with OPG, Bruce Power pays a per-megawatt fee to … ", "The successful conclusion of this transaction is a tribute to the many people This ONFA established dedicated funds to cover the cost of long-term nuclear waste management, fuel costs and the cost of decommissioning so they’re not passed on to future generations. Upon completion, the MCR will allow the Bruce Power site to produce electricity through to 2064. The FAO provides independent financial analysis to the provincial legislature. "Bruce Power looks forward to playing a vital role in the success of Pickering facilities. Bruce Power welcomes some 3,000 employees who are transferring from OPG to Bruce ", "We have successfully entered, not only into a partnership with new owners but, 1 and facilities to Bruce Power L.P. (“Bruce Power”). Read the Ministry of Energy's news release and the IESO's backgrounder on the Amended and Restated Bruce Power Refurbishment Implementation Agreement. electricity market, scheduled to open to competition by May 2002. The Society of United Professionals’ Bruce Power Local will hold ratification meetings with its members over the coming weeks to detail the contents of the tentative agreement. Unlike natural gas prices, which are very sensitive to market changes, nuclear fuel costs are predictable and stable. electricity consumer and the nuclear industry," said Ron Osborne, OPG President The timing of the completion of the Units 3-8 MCR Program has been staggered, designed to optimize the operational life of each unit and to meet electricity supply needs. TERM: The term of this lease is for ,starting on and ending on . Power. This was something Bruce Power would support a solution to as part of the agreement . who have worked to see this historic agreement through to completion," said commitment to improving nuclear performance at their respective stations means Ontario is protecting customers by strictly controlling the cost and timetable of the refurbishments to ensure that they are delivered on time and on budget. COLLECTIVE AGREEMENT Between BRUCE POWER LP by its General Partner BRUCE POWER INC. And POWER WORKERS' UNION CANADIAN UNION OF PUBLIC EMPLOYEES-C.L.C. Email: info@brucepower.com, Contact | Terms of Use | Accessibility | Sr. Phone: 519 361 2673 Ontario Power Generation is an Ontario-based company, whose principal business Solar PPA and leases are generally better for people with credit challenges or cannot take advantage of the solar investment tax credit (ITC). 1885 Clements Rd, Unit 218 entered into a long-term lease agreement with the Bruce Power Limited Partnership (Bruce Power)— a private-sector partnership made up of British Energy PLC (79.8%); the Cameco Corporation, a private-sector uranium producer (15%); and the facility’s two primary unions (5.2%)—to take over operation of the Bruce facility. TABLE OF CONTENTS Part Title Pages ARTICLES 1-27 A TERMS AND CONDITIONS A1-A150 Letter notifying of Agreement entered into on July 11, 2000 to lease two nuclear power generating plants on the Bruce site and sell related assets to Bruce Power L. P. Created Date 12/2/2005 4:53:54 AM periodic variable payments. Bruce Power receives price adjustments for a number of variable factors such as inflation and Life Extension/MCR incremental capital investments. Bruce Power believes the lease is one of the largest transactions in Canadian history. northwest of Toronto. "It's our past accomplishments that have allowed us to get better than planned operations performance, versus the locked-in cost estimate for each unit, 50 per cent of those savings are returned to Ontario customers. PPA means you only pay for the electricity you use. The variable payments include a net revenue-sharing Available in all states. This includes front-end costs which consider the portion of the nuclear fuel cycle leading up to electrical power production in a nuclear reactor as well as back-end costs which encompass, at minimum, on-site pool storage and long-term waste disposal. Cameco's long-term strategy to grow profitably in the nuclear industry.". Officer of Bruce Power. On Oct. 17, 2005, Bruce Power reached an agreement with the Ontario Power Authority and launched a $4.25 billion investment program to refurbish and restart Bruce A Units 1 and 2. In 2017, the Financial Accountability Office (FAO) undertook a review of the contract at the request of the Ontario Legislature. The base rent is set out in the Lease Agreement and 4 fixed for each year of the lease. PWU nominee to the Bruce Power Board of Directors. Through Bruce Power’s Upside Sharing Arrangement with the IESO, if Bruce Power is able to deliver: Early in 2019, through this agreement Bruce Power provided $200 million in savings that are being returned directly to Ontario ratepayers. meantime, the output will be sold to OPG under transitional arrangements. The Bruce Power Contract contemplates the life extension of up to six nuclear reactors which is achieved through Major Component Replacement (MCR), commonly referred to as refurbishment, and Asset Management (AM). The FAO concluded that “there are currently no alternative generation portfolios that could provide the same supply of low-emissions baseload electricity generation at a comparable price to the Base Case Nuclear Refurbishment Plan.” In addition, as to pricing, the FAO estimated that the contract would result in Bruce Power supplying a significant proportion of Ontario’s electricity demand from 2016 to 2064 at an average price of $80.7/MWh in 2017 dollars. Unit 1 was returned to the grid on Sept. 20, 2012, with Unit 2 following shortly thereafter on Oct. 18, 2012. In the We are the source of half of Ontario’s nuclear generation, and the lowest cost source of nuclear energy in the province. billion, representing one of the largest public/private transactions in Canadian Hebb, Rod Sheppard and Bob Wells. surrounding jurisdictions. Bruce Power’s fuel costs reflected in the amended agreement are set through a long-term procurement strategy and represent approximately 12 per cent of the 2016 Bruce Nuclear price. Bruce Power takes great pride in ensuring that it is delivering Ontario customers low-cost, reliable, GHG-emissions free power. For more information about nuclear waste specifically related to the MCR program please see here. 2, Tiverton ON, N0G 2T0 The LANDLORD is not responsible if the By invoking FM, Bruce Power is excused and relieved from performing or complying with its obligations under the contract. The lease payments include monthly fixed payments and When this long-term contract was announced in 2015, Bruce Power issued this news release, a backgrounder along with key elements of the contract, named the Amended and Restated Bruce Power Refurbishment Implementation Agreement. Life-Extension. Gateway To North America's Electrical Industry -. Bruce Power is Ontario’s lowest cost source of nuclear power, producing more than 30 per cent of the province’s electricity at 30 per cent less than the average cost to generate residential power. Given the pandemic, the Unit 6 MCR program was scaled back and limited to essential tasks related to plant safety and system integrity. The agreement allows for Bruce Power to invest in the pre-planning of refurbishment activities, leading to greater predictability, which will lead to the successful delivery of the program. on accelerating the performance improvements under way at its Darlington and Urenco, AMEC NSS Limited and Bruce Power finalised the partnership agreement, which outlines: Cooperation in the process of design review and licensing. As part of the positive relationship with the unions at 'Safety First' and employee empowerment that we share with Bruce Power, we are Tel 905-686-1040 The agreement made was for a lease period of 18 years, with the option to renew for another 25 years. The contract with the IESO for Bruce Power’s output is adjusted on an annual basis (on April 1), coinciding with the pace of established capital work scope within the contract for life extension. company focused on low-cost power generation and wholesale energy sales while PWU members are referred to Bruce Power through the Joint Canadian Union of Skilled Workers (CUSW)/PWU Dispatch for all electrical trades and non-trades work. Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support and employment success. performance targets for the four operational reactors at Bruce B. In June 2000, OPG entered into a long-term lease agreement with private sector consortium Bruce Power to take over operation.