In early 2019, bruce Power provided $200 million in savings through this agreement, which will be returned directly to Ontario taxpayers. Under separate agreements, Bruce Power leases the Ontario Power Generation (OPG) facility and is required by this lease agreement to cover all costs related to operations, lengthening of duration, services and, through the leasing fund, long-term debts, including the lease of the investment. This lease agreement is intended to ensure that all costs associated with Bruce Power`s operations are allocated to the business and included in the price of electricity. Bruce Power is very proud to provide its customers with low-cost, reliable and greenhouse gas-free electricity. We are the source of half of Ontario`s nuclear power generation and the province`s cheapest source of energy. For safety and off-ramp objectives includes the contract and Bruce Power agreed to establish an estimate of the cost-time for each renovation project. Consistent with project management principles, this estimate had an acceptable area in terms of costs and timing based on the status of the estimate and the sequential nature of the program. Under the treaty, future RCMs should be improved in response to costs and timelines, based on lessons and experience. The cost of nuclear fuel covers the entire nuclear fuel cycle, which takes into account the life cycle, from the extraction of terrestrial uranium ore to the production of electricity in a nuclear reactor, to the permanent disposal of the resulting spent nuclear fuel. Once the IESO verifies the fully incurred remediation costs for each unit, the Bruce Nuclear Price will be adjusted on April 1 to reflect additional capital investments. For more information on calculating the prices of the power purchase contract (contract to purchase electricity generated by a power plant), see IESO Bruce Power Generating Station PPA Key Elements For more information on price calculation in the AEA, see (see link to the IESO slide). Bruce Power Contract provides for the lifespan of up to six nuclear reactors affected by the Major Component Replacement (MCR), commonly known as rehabilitation, and asset management (AM).
The cost of managing these debts is determined through the Ontario Nuclear Fund (ONFA) procedure and is reflected in Bruce Power`s electricity price. No later than 15 months before the planned refurbishment of each reactor, Bruce Power must provide the IESO with a full clean-up cost and a schedule for installation. The IESO then has up to 12 months to verify the estimate. IESO has a team assigned to the Bruce Power site to monitor the progress of these estimates, which are consistent with Bruce Power`s best practices in managing Bruce Power`s contracts and projects at the facility. Bruce Power and the Independent Power Grid Manager (IESO) may, in certain circumstances, invoke force majeure (FM), which is a typical element of contractual agreements of this type, as indicated in Bruce Power`s amended and revised implementation agreement. In this case, fm includes epidemics and pandemics. As described in LTEP 2017, Bruce Power supports the risk of cost overruns during the implementation of the reclamation. Ontario protects its customers by strictly controlling the costs and timelines of renovations to ensure they are delivered on time and on budget. It includes front-end costs that take into account the part of the nuclear fuel cycle that leads to electricity generation in a nuclear reactor, as well as return costs that include at least on-site pool storage and long-term waste management. Unlike natural gas prices, which are highly sensitive to market fluctuations, the costs of nuclear fuels are predictable and stable.