McCarthy Tétrault advises Bruce Power in its landmark, long-term 6,300 MW energy transaction
Toronto, December 9, 2015 — Bruce Power, operator of the world’s largest nuclear generating facility, announced on Thursday that it had entered into a long-term agreement with the Independent Electricity System Operator (IESO) to secure 6,300 megawatts of electricity from its Bruce Power site located in Tiverton, Ontario through to 2064.
The Amended and Restated Bruce Power Refurbishment Implementation Agreement is a multi-year investment program that will result in the refurbishment of six of Bruce Power’s eight nuclear reactors with a projected total capital cost of $13 billion, Units 1 and 2 having been refurbished under the existing arrangement. Each Unit is expected to operate for an additional 30 year period following its refurbishment. The agreement is the largest energy purchase agreement in North America.
The agreement is a significant milestone for Bruce Power and helps the Province of Ontario meet its Long-Term Energy Plan by providing ratepayers in the Province of Ontario with 6,300 MW of safe, reliable, competitively priced power for decades to come. Bruce Power currently provides nearly 30 per cent of the Province’s supply of electricity. The transaction will secure an extra 3,000-5,000 jobs annually throughout the investment program, in addition to an estimated 18,000 jobs directly and indirectly resulting from the ongoing operations at Bruce Power.
In addition to the arrangements with the IESO, the transaction involved a reorganization of Bruce Power, a consolidation of Bruce Power’s credit facilities and loans and the entering into of new governance arrangements in respect of Bruce Power by its partners, Ontario Municipal Employees Retirement System, TransCanada PipeLines Limited, the Power Workers’ Union, the Society of Energy Professionals and the Bruce Power Employee Trust.
McCarthy Tétrault acted as lead counsel to Bruce Power on this noteworthy, two-year mandate directed by David Lever, head of the firm’s Power Group. Using a “one-firm”, many solutions integrated approach, David led a team that included Seàn O’Neill, Matthew Appleby, Michael Weizman, James Klein, Christopher Langdon, Gordon Sato, Suzanne Murphy, Joanna Rosengarten, Peter Brady, Matthew Cumming, Jake Irwin, David Badour, Omar Soliman, Zach Masoud, Oliver Borgers, Bram Costin, Douglas Cannon, Robert Nearing, Gregory Winfield, Wendy Brousseau, Barry Ryan, Chris Perez and Na Fan. Bruce Power was represented in-house by Brian Hilbers, Len Arnold and Bill Schnurr.
McCarthy Tétrault extends a huge congratulations to its client, Bruce Power, who has taken major steps to ensure that Ontarians have access to clean, low-cost and emission-free power for the next 50 years.
About McCarthy Tétrault
McCarthy Tétrault LLP provides a broad range of legal services, advising on large and complex assignments for Canadian and international interests. The firm has substantial presence in Canada’s major commercial centres and in London, UK.
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