Borealis Infrastructure and other parties have closed their previously announced buy of a further 31.6 percent interest in nuclear generating facility Bruce Power. Borealis paid $450 million to secure a position that was held in part of the facility by Cameco Corp (TSX:CCO). As a result of the transaction, it took an additional 29.8 percent stake in Bruce Power, which in 2013 was responsible for the majority of Ontario’s nuclear power. Borealis is the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS).
Bruce Power Partnership Restructuring Finalized
TIVERTON, ONTARIO–(Marketwired – March 27, 2014) – The restructuring of the Bruce Power partnership, which was first announced in late-January, was finalized today.
Borealis Infrastructure, on behalf of Ontario Municipal Employees Retirement System (OMERS), the Power Workers’ Union (PWU) and The Society of Energy Professionals have acquired Cameco’s 31.6 per cent interest in Bruce B. TransCanada has waived its right of first offer on the sale but continues to maintain an interest which can be exercised in the future.
As a result of the transaction, Borealis acquired an additional 29.78 per cent in the Bruce B partnership, while the PWU and The Society acquired an additional 1.25 per cent and 0.55 per cent respectively.
Bruce Power is Canada’s largest public-private partnership as the Bruce site assets remain owned by the province, operated by Bruce Power and the company’s partners meet investment requirements, which has totalled $7 billion since 2001. The price of power is controlled and sold through contract with the Ontario Power Authority and, in 2013, at 6 cents per kilowatt-hour (kWh), was 30 per cent below the average cost of electricity (8.6 cents per kWh) in the province, providing families and businesses with stable, low prices.
In 2013, Bruce Power provided a majority of the nuclear power in Ontario and the site is capable of generating 6,300 megawatts of carbon-free energy from its eight units. The company is the largest investor in Ontario’s electricity system over the last decade investing private funds into public assets.
About Bruce Power
Bruce Power operates the world’s largest operating nuclear generating facility and is the source of roughly 30 per cent of Ontario’s electricity. The company’s site in Tiverton, Ontario is home to eight CANDU reactors, each one capable of generating enough low-cost, reliable, safe and clean electricity to meet the annual needs of a city the size of Hamilton. Formed in 2001, Bruce Power is an all-Canadian partnership among TransCanada, Borealis Infrastructure Management (a division of the Ontario Municipal Employees Retirement System) as well as the Power Workers’ Union and Society of Energy Professionals. A majority of Bruce Power’s employees are also owners in the business.
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