When you look at your rising electricity bill, you probably wonder what NB Power plans to do about it. The utility just released its latest 20 year integrated resource plan, and the message is clear. NB Power sees nuclear energy as the primary solution for New Brunswick, even with the ongoing problems at the Point Lepreau Nuclear Generating Station.

Extending the Life of Point Lepreau

According to the original report by John Chilibeck, NB Power wants to keep the plant near Saint John running well beyond its predicted 2042 lifespan. The utility proposes extending operations by another five to ten years or completing a second major refurbishment.

NB Power estimates the annual cost of this extension at $600 million. The electricity produced brings in $900 million. This creates a $300 million net gain and turns the utility into a net energy exporter.

“Bottom line here, we do think nuclear makes a whole lot of sense,” said Brad Coady, NB Power chief commercial officer. “We do think it is a big part of our future, and we do think that strong policy support from both levels of government, the federal and provincial government, are absolutely required to make it a reality in New Brunswick. And it is the best option.”

Addressing the Breakdowns and Debt

Critics point out that Point Lepreau drives up NB Power debt and pushes up your electricity rates. The plant is 43 years old and breaks down frequently. These outages cost the public utility hundreds of millions of dollars. Customers ultimately pay these costs.

Just last month, a broken line leaked radioactive heavy water inside the reactor building. Crews cleaned up the spill and no one suffered injuries. However, the 2012 refurbishment cost $2.4 billion and added heavily to the $6 billion debt NB Power carries today. The plant consistently ranks among the worst performers in the nuclear industry over the last decade.

Coady acknowledges the frustration. When Point Lepreau goes offline, NB Power must buy expensive electricity from Quebec and New England or burn polluting fuels at Belledune and Coleson Cove.

“I feel like the recent history on its performance isn’t acceptable,” Coady said. “I don’t think New Brunswickers should accept it. I know the management team at NB Power certainly doesn’t accept it. And we are working with the world class team at Lepreau and other experts to make sure that we can turn that facility around to be a much stronger performer going forward.”

To fix these issues, NB Power signed a three year, $20 million deal with Laurentis Energy Partners to improve long term performance.

The Push for Clean Energy

NB Power faces a strict obligation to reduce greenhouse gas emissions. The utility plans to add more wind and solar power, but executives do not trust large batteries as a dependable backup source. They view nuclear power as the necessary baseload provider.

“If you are going to constrain carbon across the country or in New Brunswick, nuclear is a major part of how you can do that and do that effectively,” Coady said. He noted that without Point Lepreau, New Brunswick would rely on over 2,000 megawatts of coal power.

The new plan also anticipates adding between 500 and 1,600 megawatts of combustion turbine capacity by 2046 to meet growing energy demands.

Frequently Asked Questions

Why does NB Power want to keep Point Lepreau open?

NB Power views nuclear energy as the most reliable way to provide baseload power and reduce greenhouse gas emissions. Extending the plant life generates an estimated $300 million annual net gain.

How do Point Lepreau outages affect my electricity bill?

When the nuclear plant breaks down, NB Power buys expensive replacement energy from other regions or burns expensive fossil fuels. The utility passes these extra costs onto customers through rate increases.

What is NB Power doing to fix the reliability issues?

NB Power recently signed a $20 million contract with Laurentis Energy Partners to improve the long term performance and reliability of the Point Lepreau plant.