VZCZCXRO2497
PP RUEHGA RUEHHA RUEHMT RUEHQU RUEHVC
DE RUEHON #0194/01 1701535
ZNR UUUUU ZZH
P 181535Z JUN 08
FM AMCONSUL TORONTO
TO RUEHC/SECSTATE WASHDC PRIORITY 2527
INFO RUCNCAN/ALCAN COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 TORONTO 000194 
 
SIPDIS 
SENSITIVE 
 
USDOE FOR PI 
STATE FOR EB/ESC/IEC/EPC AND WHA/CAN 
DEPT PASS FERC 
 
E.O.12958: N/A 
TAGS: ENRG PGOV SENV CA
SUBJECT: Ontario Looks to Renew Nuclear Power Infrastructure 
 
Ref: 06 Toronto 1703 
 
Sensitive but Unclassified - Please protect accordingly. 
 
¶1. (SBU) SUMMARY:  In preparation for increased electricity demand 
and the planned closure of all coal-fired generating plants by 2014, 
the government of Ontario is refurbishing existing nuclear plants 
and planning for new reactors. Both are necessary to meet the 
province's nuclear capacity goal of roughly 14,000 megawatts (MW). 
Nuclear plants currently generate 52% of Ontario's electricity 
supply mix (reftel), while coal-fired plants generate approximately 
20%.  Ontario's long-term Integrated Power System Plan (IPSP) calls 
for the province to acquire 1,400 MW of new nuclear capacity by 2019 
with a possible additional 1,400 MW in new nuclear by 2027. 
Further details regarding the addition of new nuclear reactors in 
Ontario are expected at the conclusion of the final phase of the 
competitive Request for Proposal process to select a nuclear reactor 
vendor. END SUMMARY. 
 
 
 
----------------------- 
Ontario's Nuclear Sites 
----------------------- 
 
¶2. (U) Ontario has three nuclear power plant sites, with 16 reactor 
units currently operating.  The sites are: Pickering Generation 
Station A and B (6 operating units); Darlington Generating Station 
(4 operating units); and Bruce Power A and B (6 operating units). 
Two other units at Pickering are out of service indefinitely, as 
Ontario Power Generation (OPG) determined in 2005 that refurbishment 
was not economically feasible. Ontario's total installed nuclear 
generation capacity is 14,000 MW. 
 
------------------------- 
Bruce Power Refurbishment 
------------------------- 
 
¶3. (U) On October 17, 2005, the Ontario government announced that it 
had reached an agreement for the refurbishment of Bruce A Units 1 
and 2 at the Bruce Power Nuclear facility near Kincardine on Lake 
Huron, approximately 140 miles from Toronto. The move will produce 
an additional 1,500 MW of new base-load capacity through 2036. 
 
¶4. (U) On April 17, 2008, Bruce Power announced that it had 
completed final cost and schedule estimates for the ongoing Bruce A 
Units 1 and 2 Restart Project. The project to restart the two units, 
which have been idle since the mid-1990s, is approximately 60% 
complete and will cost C$3.1-C$3.4 billion upon completion in 
2009-2010. Refurbishment work on Bruce A units 3 and 4 is scheduled 
to commence in late 2009 with an estimated completion date of 2013. 
 
 
¶5. (U) Originally, only a limited steam generator replacement of 
Bruce A Unit 4 was planned, but in August 2007, the Ontario Power 
Authority (OPA) announced it would fully refurbish it.  The 
refurbishment will lengthen the operational life of Unit 4 to 2036. 
The refurbishment will also add 750MW of refurbished nuclear power, 
increasing the total refurbished nuclear capacity to 3,000 MW. 
Under the revised plan, Bruce Power expects to invest an additional 
C$1 billion. The OPA has assumed the management of all contracts 
associated with the refurbishment project. 
 
¶6. (U) Separately, the future of the four Bruce B reactor units is 
uncertain. Under present planning assumptions, those four reactors 
would need to be refurbished between 2015 and 2020. At this point, 
Bruce is unwilling to commit to financing the refurbishment.  An 
Infrastructure Ontario-led joint assessment on the refurbishment of 
Bruce B reactors is ongoing. 
 
------------------------ 
Darlington Refurbishment 
------------------------ 
 
¶7. (U) In 2008, OPG will also begin work on assessing the potential 
refurbishment of the Darlington nuclear station, a 4-unit station 
with a total output of 3,524 MW. Darlington has also been selected 
by the province as a site for new reactor construction. NOTE: 
Darlington was selected over a proposed new site at the Bruce 
complex, "Bruce C". END NOTE. 
 
---------------------------------- 
OPG's Pickering Nuclear Facilities 
---------------------------------- 
 
¶8. (U) Pickering plants A and B have a total of 6 
 
TORONTO 00000194  002 OF 002 
 
 
reactors. Together these stations have a total output of 3,100 MW, 
enough to serve a city of one and a half million people.  Pickering 
A began operating in 1971 and continued to operate until 1997, when 
its operations were voluntarily suspended.  In September 2003, one 
unit was returned to commercial operation and another unit followed 
in 2005.  The remaining 2 units remain out of use. Pickering B's 
reactors have remained in operation continuously since 1983. 
 
¶9. (U) In June of 2006, OPG detailed its plans for an Environmental 
Assessment on the potential refurbishment and continued operation of 
Pickering B to the Canadian Nuclear Safety Commission (CNSC).  In 
2007, OPG began preliminary studies to determine the viability of 
extending Pickering B's operating life to 2050-2060.  OPG has 
finished assessing the plant's current condition and is completing 
the EA and Integrated Safety Reviews (ISR) required for regulatory 
approval of refurbishment. 
 
¶10. (U) The results of OPG's assessment indicated that no 
significant negative environmental effects were likely to occur due 
to the refurbishment and continued operation of Pickering B's 
facilities.  CNSC is now moving to compile its EA Screening Report 
and hold public consultations and CNSC hearings.  The labor 
intensive EA, ISR, and public consultations have pushed back the 
decision date on Pickering B's refurbishment until late 2008 or 
early 2009. 
¶11. (SBU) COMMENT: The Ontario government continues to explore 
alternative power generation options in order to ensure the 
reliability of the Ontario electric supply. Despite the Ontario 
government's emphasis on conservation, projections of future 
electricity demand continue to rise. The political decision to close 
all coal-fired plants could carry risks for the reliability of 
Ontario's electricity supply if suitable replacement sources are not 
found or are delayed. The interconnected nature of the U.S. and 
Canadian electric grids highlights the importance to the United 
States of electricity reliability in Ontario.  END COMMENT. 
NAY