Point Lepreau Refurbishment Review

April 2004 - Highlights

1. The basis of the Atomic Energy of Canada Ltd. retubing and refurbishment contracts should be renegotiated in respect to pricing and commercial terms.
   
   
2. Either the terms of the AECL plant performance contract should be reviewed so there is an equitable proportioning of risk and reward, or the contract should be terminated.
   
   
3. NB Power should invite bids for 635 Megawatts of new capacity backed by a long-term fuel supply contract.
   
   
4. NB Power should develop arrangements for purchasing replacement power aimed at reducing cost and risk.
   
   
5. A nuclear committee should be created by the NB Power Board of Directors. The chairman of this committee should be a board member and have independent, nuclear plant expertise.
   
   
6. The provincial government should review what options exist for third-party investment in Point Lepreau.
   
   
7. Rather than delay significant capital work until after the refurbishment outage, this should be done as part of the project.
   
   
8. The N.B. government should review the non-economic benefits of the refurbishment project and determine what weighting should be attached to these.
   
   
9. The CEO of NB Power should review project arrangements and ensure that: a) within the NB Power team, there are the necessary skills, experience and leadership and b) that the interfacing with AECL provides the framework for a successful project.
   
   
10. NB Power needs to reinforce its focus on achieving operational excellence.

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