Point Lepreau Nuclear Station’s Troubles Continue to Escalate
N.B. Power is grappling with a significant financial and operational setback, as a major issue with the Point Lepreau nuclear station’s massive generator could cost an estimated $71 million in repairs and lost production. The problem, which has been under investigation for nearly a month, is proving more complex and costly than initially anticipated.
The utility has yet to fully diagnose the malfunction in the generator, which boasts one million horsepower. If the repair process extends beyond current projections, costs could rise further. At a recent rate hearing, J.D. Irving lawyer Glen Zacher questioned whether the estimated early September return date for the plant was a best-case scenario. Jason Nouwens, Lepreau’s Director of Regulatory and External Affairs, confirmed that it indeed represented an optimistic timeline but refrained from detailing the worst-case scenario.
The Lepreau plant has been offline since early April for what was initially planned as a $137 million, three-month maintenance shutdown. During this period, the plant’s main generator was not serviced, as it was functioning normally when the shutdown commenced. According to Nouwens, the generator’s performance was regularly monitored, and no issues were detected at that time.
However, after a three-month hiatus, the generator exhibited problems during routine pre-restart testing. Nouwens indicated that the plant has no choice but to keep Lepreau offline until the malfunction is fully diagnosed and resolved. Engineers have identified a defective “stator bar” as a likely culprit, but the cause of the malfunction remains unclear.
Currently, the generator is being disassembled for repairs and further investigation. Once the issue is thoroughly understood and resolved, the generator will be reassembled with a tentative restart date around September 7. This schedule is contingent on the successful resolution of the malfunction.
The timing of this issue exacerbates the financial strain on N.B. Power, which is already burdened with over $5.3 billion in debt due to past equipment failures and underperformance at the nuclear plant. The utility is seeking approval from the New Brunswick Energy and Utilities Board for a substantial rate increase, proposing a 19.4 percent hike over two years—9.25 percent this year and another 9.25 percent starting next April. Residential and large industrial customers could see rate increases of up to 20.6 percent over this period.
The Lepreau shutdown is also causing delays in planned maintenance at N.B. Power’s thermal generating stations in Belledune and Bayside, further complicating the utility’s operations.
In response to Zacher’s query about whether the ongoing investment in Lepreau outweighs its benefits, N.B. Power officials maintained that the nuclear plant remains valuable. Craig Church of N.B. Power emphasized that despite the plant’s performance challenges, it provides energy at a lower cost compared to alternatives.
As N.B. Power navigates these challenges, the future of Point Lepreau remains uncertain, with the utility’s financial health and operational stability hanging in the balance.
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