Originally Posted by OVERKILL
Originally Posted by BMWTurboDzl
Odd...I would think that nuclear is what one would call a stranded asset and best to keep running it for as long as possible. The plants seem to be in an ideal location.
Yes, the issue, as I mentioned earlier, is that the pressure tubes for all four B units are original (pushing 40 years), so to continue to operate the plant much past 2024, it will need to have them replaced, this is a multi-billion dollar project; probably >$8 billion, and to do it, they'd basically have to start within the next two years, as each unit takes roughly 2 years to do.
Consumer tolerance for increases in electricity prices hit a tipping point under the previous administration. We were saddled with a fixed-rate contract scheme that punished ratepayers by forcing them to pay for intermittent generation that was often out of phase with demand and dumped on foreign markets. Despite calls from analysts and experts to correct this path, they kept the blinders on and even doubled-down at one point. This culminated in an utter defeat of that party in the last election, they lost so many seats they lost official party status and were dubbed "the Minivan party".
When you've campaigned on fixing the mess that the previous admin left behind (the current party) committing billions to a massive public construction project would be a very hard sell, which is likely why they've not broached the subject. Heck, they haven't done much on this front other than just cancel pending contracts to stop the bleeding, the mess is still in play.
The problem is that currently, a large portion of our supply cost is wrapped up in paying overly-generous contract costs for privately owned wind, solar, gas and biomass projects and unless this government takes action to do something about those contracts, they are likely going to be unable to commit the CAPEX to refurbish Pickering, hence the gas plants
So I guess gas plants are cheaper to operate and will allow the utility to continue to pay those renewable contracts with a commensurate reduction in the rate paid by ratepayers?