Two more Canadian firms, TransCanada PipeLines Ltd. and BPC Generation Infrastructure Trust of Toronto, have teamed with prior interest holder, Cameco Corp. of Saskatoon, Canada, to buy 79.8% of the massive Ontario-based nuclear power facility, Bruce Power L.P., from the financially ailing British Energy for an estimated $376 million.

The British firm sold its remaining 2.6% share to the Power Workers’ Union (PWU) and The Society of Energy Professionals (The Society), increasing their equity stake to a combined 5.2%. First word of the deal came in December as British Energy struggled to make its way out of a financial quagmire. The company was under intense pressure to close the deal this week.

“The successful conclusion of these negotiations ensures that we can now look to the future with renewed confidence,” said Bruce Power CEO Duncan Hawthorne. “With the solid backing of our new-look partnership, our financial position has been secured.”

Under the revised partnership, Cameco has more than doubled its original stake in Bruce Power to 31.6%. TransCanada and BPC Generation Infrastructure Trust, a trust established by the Ontario Municipal Employees Retirement System, will also hold 31.6% stakes, while the PWU will own 4% and The Society 1.2%.

In addition to the purchase price, each consortium member will fund a one-third share ($75 million) of a $225 million accelerated deferred rent payment to Ontario Power Generation (OPG). Bruce Power is a tenant under a lease on the Bruce nuclear power facility. The lease expires in 2018 with an option to extend the lease by up to 25 years.

The plant near Kincardine, ON, about 150 miles northwest of Toronto, has two major units capable by this summer of generating more than 4,600 MW. The facility consists of Bruce B and Bruce A. Bruce B consists of four reactors, currently generating a total of 3,140 MW. Bruce A consists of four 769 MW reactors, which are currently not operating. Two of the Bruce A units (3 and 4) are expected to be restarted and online by the summer of 2003, subject to receipt of all necessary regulatory approvals. The plant generates about 15% of Ontario’s electric needs.

Bruce Power represents TransCanada’s largest foray into power generation. The natural gas pipeline company also is studying a possible major project on the power transmission side (see Power Market Today, Feb. 11).

TransCanada spokesman Glenn Herchak confirmed last Monday that the company is studying the feasibility of constructing a 1000-mile, 500 kV power transmission line from northern Alberta to the U.S. Northwest to carry power from a cogeneration project proposed to accompany an expansion of the oil sands facilities near Fort McMurray, AB.

The proposed NorthernLights transmission line so far is just a gleam in TransCanada’s eye, but…….if all the parts fall into place it could be transmitting power by 2007. Cogeneration makes sense for the oil sands development, but only if it is very large, which would create far too much power to be used on-site, Herchak said. Currently there is no export infrastructure in place. If the feasibility study looks good, TransCanada would have to interest potential customers and partners and get regulatory approvals. If that could be completed for construction to start in 2005, it could be in service within two to three years after that.

©Copyright 2003 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.