Published Wednesday October 7th, 2009  Telegaph-Journal

Rob Linke

OTTAWA - The federal government should be willing to negotiate compensation to NB Power for the extra costs it is facing for replacement power from the delays at Point Lepreau, says the head of the union representing 800 workers at the nuclear plant.

Ross Galbraith of the International Brotherhood of Electrical Workers says nobody anticipated the $1.4-billion project would end up 16 months behind schedule.

"Down here, we're working together - our folks, NB Power and AECL - on some pretty complex technical issues, so I'd like to think the provincial and federal governments could sit down and work out a compromise on this too," said Galbraith.

"Clearly, it didn't work out the way either party envisioned but there's room for compromise that will work out for all parties."

The Graham government is demanding the federal government pay an unspecified amount to compensate the provincial utility, arguing that Atomic Energy of Canada Ltd. has taken responsibility for the delays.

AECL, a federal Crown corporation, is the main contractor during the refurbishment.

Prime Minister Stephen Harper and Natural Resources Minister Lisa Raitt have both said they simply expect AECL to honour the contract.

The 2005 contract between NB Power and AECL shared the risk of a delay, with AECL responsible for the costs of completing the project and NB Power responsible for the cost of replacement power.

AECL has conceded it will have to bear costs measured in the hundreds of millions of dollars higher than what it will be paid under the fixed-price contract.

Now climbing at a rate of more than $20 million a month, replacement power could cost NB Power an extra $350 million or more, nearly doubling the $400 million budgeted for what was supposed to be an 18-month project.

Galbraith said he "wouldn't hazard a guess" how much compensation would be fair or appropriate.

He echoed a point made by Energy Minister Jack Keir, who has said the lessons being learned at Lepreau will help AECL perform better when it does other refurbishment projects around the world.

"I know they're going to be able to incorporate these improvements not only in tooling but in processes at these other places," said Galbraith. "There's a value to that."

Galbraith argues the delays at Lepreau have been caused by the difficulties associated with using first-of-a-kind, "incredibly complex robotic equipment," not project mismanagement.

AECL has said a refurbishment in Korea is proceeding more quickly than Lepreau because improved practices and technology were transferred there.

Galbraith argued Quebec also stands to benefit if and when its sole reactor, Gentilly 2, is refurbished.

Galbraith has written an opinion article that appears in the Telegraph-Journal today on page A9.

He said he wrote it because he felt the good teamwork at Lepreau was being overlooked.