NEWS

The Government of Ontario today announced that it has suspended the competitive RFP to procure two replacement nuclear reactors planned for the Darlington site.

Deputy Premier and Minister of Energy and Infrastructure George Smitherman indicated that the government remains committed to the modernization of Ontario's nuclear fleet.

"Emission-free nuclear power remains a crucial aspect of Ontario's supply mix" Smitherman said, "unfortunately, the competitive bidding process has not provided Ontario with a suitable option at this time" he added.

Proposal submissions were received from AREVA NP, Atomic Energy of Canada Limited and Westinghouse Electric Company on February 27, 2009 and carefully evaluated. Only the submission from AECL was compliant with the terms of the RFP and the objectives of the Government. However, concern about pricing and uncertainty regarding the company's future prevented Ontario from continuing with the procurement at this time.

In March 2008, Ontario undertook a two phase competitive procurement process to select a nuclear vendor to build a two unit nuclear power plant at Darlington. The units are to replace older units as part of a strategy to renew Ontario's nuclear fleet. Nuclear power accounts for about 50 percent of Ontario's electricity needs and provides a reliable, stable and clean supply of base load electricity.

LEARN MORE

Go to http://www.infrastructureontario.ca to learn more about the Nuclear Procurement Project RFP.

----------------------------------------------------------------- --------

ontario.ca/energy-news

Disponible en francais

BACKGROUNDER

----------------------------------------------------------------- --------

NUCLEAR PROCUREMENT PROJECT UPDATE

Phase 2 of the Request for Proposals (RFP) Process

Phase 2 of the RFP focused the competition on the cost of power, on-time delivery and investment in Ontario. The competitive process was designed to help ensure the greatest amount of cost certainty, lowest possible price and a fair approach to risk sharing.

Working with Respondents on Pricing and Risk Sharing

During Phase 2 a number of bilateral commercially confidential meetings were held with each respondent to discuss the uncertainties and challenges in pricing and the commercially balanced way to deal with such issues as the deterioration of global credit markets, fluctuation in commodity prices, inflation, construction quantities and similar commercial uncertainties involved in a 10-year multi- billion dollar project.