
AECL's debts are a federal matter
Published Saturday November 7th, 2009


The federal government's position on Atomic Energy of Canada Limited grows more tenuous by the day. New Brunswick taxpayers can see Ottawa backing the Crown utility's financial obligations with cold, hard cash - so why won't officials cover the full cost of AECL's delays in New Brunswick?
The reactor refurbishment that AECL has undertaken at Point Lepreau is now an estimated 16 months behind schedule. The delays are costing NB Power approximately $1 million a day.
The official line on AECL's cost overruns has been that the federal government will ensure AECL meets its contractual obligations. This is a bureaucratic way of saying that if the refurbishment delays weren't anticipated in detail and the responsibility assigned on paper, the federal government will duck and dodge to avoid paying. And that is what its officials have been doing. While quietly rolling $200 million into AECL to help the corporation pay for completing delayed refurbishments, the government is refusing to offer New Brunswick a penny toward replacement power costs that could go as much as $400 million over the initial estimates.
AECL's contractual commitment to NB Power was based on unrealistically optimistic projections, and AECL officials have admitted it. The federal government is responsible for all consequences of this failure to plan responsibly, not just the cost of completing construction on a new timetable. AECL hasn't honoured the spirit and intent of its contract as long as it heaps the balance of risk on the shoulders of New Brunswick ratepayers. That is why New Brunswickers are seeking federal compensation.
The argument that Ottawa is already paying to correct AECL's performance is a non-starter. It's like a parent trying to argue that he needn't pay for the damage his teenage son did to your car, because he needs to repair junior's car first.
New Brunswickers pay federal taxes, and people here are as outraged as Canadians anywhere over AECL's failure to anticipate the true costs of refurbishment. But New Brunswickers have an additional reason to complain. The federal government, which claims to represent them, and which demonstrably is responsible for AECL, refuses to acknowledge or pay off the corporation's full debt.
The refurbishment delays in New Brunswick have damaged AECL's reputation. If the federal government doesn't settle the full cost of the bill to New Brunswick's satisfaction, its delaying could have an impact on the next federal election.






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