New cost overrun estimates of nuclear repairs don’t faze New Brunswick minister

FREDERICTON – New Brunswick’s energy minister says he’s not surprised to hear that Atomic Energy of Canada Ltd. incurred a $638-million cost overrun during its refurbishment of the Point Lepreau nuclear power plant.

Craig Leonard says he would expect the federal Crown corporation, which carried out the repair work, to be on the hook for the excessive costs since NB Power saw its own costs rise above its original budget.

But Leonard says he still believes the refurbishment is a good deal because it has extended the life of the nuclear facility, which generates 700 megawatts of emission-free energy — enough to power a third of the province.

A memo prepared for the Prime Minister’s Office says AECL’s total costs were $1.17 billion, more than double the $540 million it initially budgeted for the refurbishment.

It also says NB Power has suggested that its cost overruns could amount to more than $1.3 billion, but the provincial utility company and Leonard dispute that, saying that figure is $1 billion.

Leonard says the provincial government will continue to press Ottawa to provide $1 billion in compensation, but the request so far has fallen on deaf ears.