OMERS announced today that Bruce Power has signed a definitive agreement with the Independent Electricity System Operator (IESO) which will allow OMERS to invest in the refurbishment of six Bruce Power reactor units over the next twenty years. This framework agreement with the IESO for the refurbishment of the units will increase their lifespan 30 to 35 years, guaranteeing the Province of Ontario access to safe, reliable and carbon-free electricity. In return, Bruce Power will receive an agreed price for all generation from the site, which will be subject to certain adjustments over time.
“We have been an investor in Bruce Power for the past twelve years and are very pleased with this significant opportunity to deploy additional capital incrementally through the refurbishment projects. We continue to seek high quality infrastructure assets that generate steady cash flow to help pay pensions, and our investment in Bruce Power fits this strategy very well,” said Michael Rolland, Chief Investment Officer, OMERS Private Markets.
Coincident with Bruce Power entering into a definitive agreement with the IESO, TransCanada Corporation (TransCanada) is exercising an existing option to acquire a partial interest in the investment from OMERS such that the investment interests of OMERS and TransCanada are equal. The other current Bruce Power investors, including TransCanada, the Society of Energy Professionals and the Power Workers Union will also invest in the refurbishment projects.
OMERS invested in the refurbishment of two other Bruce Power reactors which were successfully returned to service in 2012. Those units have had very strong performance since then.
Bruce Power is the world’s largest operating nuclear facility, and generates approximately 30% of Ontario’s electricity supply. Bruce Power is a key contributor to maintaining a reliable and affordable supply of low-cost electricity for Ontario families and businesses and is essential to meeting the province’s goal of phasing out coal-fired electricity.
Since 2001, Bruce Power has safely operated the facility in accordance with federal regulations as established by the Canadian Nuclear Safety Commission (CNSC).