Ontario takes next step to ensure clean, affordable and reliable energy supply for generations to come



    Four vendors invited to compete in RFP process

    TORONTO, March 7 /CNW/ - Ontario is moving forward in its plan to bring
on replacement nuclear generation by way of a competitive procurement process.
    Minister of Energy Gerry Phillips this morning outlined a two-phase
competitive Request For Proposal (RFP) process to select a nuclear reactor
vendor.
    The announcement is the next step in the government's 20-year energy
plan, first announced in June 2006. That plan focuses on reducing greenhouse
gas emissions and Ontario's overall carbon footprint while ensuring a
reliable, affordable and environmentally responsible electricity supply.

    The proposal process includes an array of expertise and oversight:

    
    -  A commercial team directed by Infrastructure Ontario will manage the
       procurement process
    -  Team members will include Ontario Power Generation, Bruce Power, the
       Ministry of Energy and the Ministry of Finance
    -  A two-member decision review board will review the competitive process
    -  It will also be monitored for fairness by a fairness monitor.
    

    As a result of global reviews of available nuclear technologies conducted
by the Ministry of Energy, Ontario Power Generation and Bruce Power, four
internationally recognized vendors will be invited to participate in the first
phase of the proposal process:

    
    -  AREVA NP - US Evolutionary Pressurized Reactor
    -  Atomic Energy of Canada Limited - ACR 1000 Advanced CANDU Reactor
    -  GE Hitachi Nuclear Energy - Economic Simplified Boiling Water Reactor
    -  Westinghouse Electric Company - AP 1000(TM) nuclear power plant
    

    QUOTES

    "Our priority is a fair, transparent, competitive process that will
assure Ontarians we will get the best deal on clean, affordable and reliable
electricity to light their homes and power the economy for decades to come,"
said Minister of Energy Gerry Phillips. "Building replacement nuclear
facilities will bring economic benefit to Ontario. It will help Ontario meet
its future energy needs, keep prices stable, cut our carbon footprint and
reduce greenhouse gas emissions."

    QUICK FACTS

    In June 2006, the government announced a balanced, clean, reliable and
affordable 20-year energy plan. The plan will:

    
    -  Conserve 6,300 megawatts of electricity by 2025
    -  Double renewables to 15,700 megawatts by 2025
    -  Eliminate coal-fired generation by the end of 2014
    -  Maintain nuclear energy capacity for baseload operation up to its
       current level of 14,000 megawatts
    -  Add additional gas-fired generation for use in peak periods.
    

    LEARN MORE

    Learn more about the government's 20-year energy plan and nuclear renewal
process.

    Please visit www.energy.gov.on.ca/nuclear.

    
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                                                      ontario.ca/energy-news
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                                                                BACKGROUNDER
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                   COMPETITIVE REQUEST FOR PROPOSAL PROCESS
    

    In June 2006, the government presented a balanced, clean, reliable and
affordable 20-year energy plan. The government's plan will double conservation
and renewables, eliminate coal-fired generation by the end of 2014, maintain
nuclear energy capacity for baseload operation up to its current level of
14,000 megawatts and add additional gas-fired generation for use in peak
periods.
    The government's energy plan calls for refurbishment and new build of
nuclear facilities to maintain existing nuclear generation capacity at up to
14,000 megawatts. In preparation, the government directed Ontario Power
Generation to begin the regulatory approvals process, including the
environmental assessment process, for new nuclear units at the Darlington
Nuclear Generating Station. Bruce Power also initiated the same process for
the Bruce Power Nuclear Generating Station.
    The Ministry of Energy, Ontario Power Generation and Bruce Power have
also recently completed global reviews of available nuclear technologies.
Global market technologies were assessed on strategic, commercial, technical
and economic evaluation criteria, including:

    
    -  Ability to meet Canadian nuclear regulatory requirements
    -  Likely in-service date
    -  Estimated lifecycle cost of power
    -  Design, operations and maintenance considerations
    -  Economic benefit to Ontario
    

    Four internationally recognized vendors have been invited to participate
in a two-phase competitive Request For Proposal (RFP) process issued today:

    
    -  AREVA NP - US Evolutionary Pressurized Reactor
    -  Atomic Energy of Canada Limited - ACR 1000 Advanced CANDU Reactor
    -  GE Hitachi Nuclear Energy - Economic Simplified Boiling Water Reactor
    -  Westinghouse Electric Company - AP 1000(TM) nuclear power plant
    

    REQUEST FOR PROPOSAL PHASE ONE

    Respondents will be required to submit proposals in May for the first
proposal phase. The proposals will be evaluated for the following:

    
    -  Preliminary demonstration of the respondent's capability to execute a
       plan to provide the support necessary for a successful construction
       licence review
    -  Demonstration of a plan to deliver a construction licence application
       on schedule and in compliance with Canadian regulatory requirements
    -  Respondent's willingness and capacity to deliver the project
    -  Financial strength of the respondent
    -  Legal position of the respondent
    

    REQUEST FOR PROPOSAL PHASE TWO

    The second proposal phase will commence at the end of June. Evaluation
criteria for the second phase will be finalized in advance of the date of
issuance. Respondent submission content may include the following:

    
    -  Financial and commercial terms
    -  Respondent team members
    -  Schedule commitments
    -  Estimated operating and decommissioning costs
    -  Level of domestic economic value add
    

    PROJECT GOVERNANCE STRUCTURE

    Commercial team: The competitive procurement process will be led by a
commercial team that will be directed by Infrastructure Ontario and includes:
Ontario Power Generation, Bruce Power, the Ministry of Energy and the Ministry
of Finance. The team includes legal, technical, commercial contracting,
financial risk transfer, nuclear industry and procurement experts.

    Steering committee: Commercial team recommendations will be reviewed by a
steering committee consisting of senior deputy ministers and the CEOs of
Ontario Power Generation, Bruce Power and Infrastructure Ontario. The steering
committee will recommend major commercial decisions to the decision review
board.

    Decision review board: Scott Hand and Tim O'Neill have been appointed to
the decision review board to review the findings of the commercial team and to
ensure the competitive procurement process is carried out in a fair and
rigorous manner and in the best interests of Ontarians. The decision review
board will provide its recommendations to Cabinet.

    Scott M. Hand served as chairman and chief executive officer of Inco
Limited from April 2002, after serving as deputy chairman and CEO since April
2001. Mr. Hand had been the company's president since 1992. He earlier served
as executive vice-president, general counsel and secretary, and was also
responsible for strategic planning and business development for the company.
    Mr. Hand was president and chief executive officer of CVRD Inco Limited
following the acquisition of Inco by Companhia Vale do Rio Doce (CVRD) in
October, 2006 until January 30, 2007.
    Mr. Hand is a member of the boards of directors of Manulife Financial
Corporation, Fronteer Development Group Inc. and Boyd Technologies LLC, the
Ontario Heritage Trust and World Wildlife Fund Canada. He is also co-chairman
of Juno Special Situations Corporation.

    Tim O'Neill is president of O'Neill Strategic Economics and a partner in
TNET Management Consultants. From 2005 to 2007, he was the H. Ian MacDonald
Visiting Economist at Ontario's Ministry of Finance.
    He is retired from BMO Financial Group, where he served as executive vice
president and chief economist from October 1994 until December 2004. For 12
years before that, he taught in the Department of Economics at St. Mary's
University in Halifax. He served as a consultant to several provincial
governments, as well as the federal government.
    Dr. O'Neill is a native of Sydney, Nova Scotia. He received his B.A.
degree (with Honours) at St. Francis Xavier University, his M.A. at the
University of British Columbia and his Ph.D. at Duke University, North
Carolina.
    Dr. O'Neill is currently a director of the ABC CANADA Literacy Foundation
and of the United Church of Canada Foundation. He is a member of the National
Statistics Council and the Juvenile Diabetes Research Foundation.

    Fairness Monitor: A fairness monitor will ensure all respondents are
treated fairly throughout the RFP process.

    
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                                                      ontario.ca/energy-news
                                                      Disponible en français
    




For further information:

For further information: Alan Findlay, Minister's Office, (416)
327-3546; Sylvia Kovesfalvi, Communications Branch, (416) 327-4334

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