Zoomer Radio AM740

OPG MUST CUT $500 MILLION FROM COMPENSATION BUDGET

The province’s energy regulator has ordered Ontario Power Generation to cut $500 million from the compensation budget for its nuclear operations over the next five years.

The Ontario Energy Board orders the province’s largest electricity generator to cut “excessive” costs associated with pensions and benefits from its nuclear business’ administration, operations and maintenance budget – by $100 million a year until 2021.

This comes after OPG, in May 2016, asked for $16.8 billion from the board – for a period between 2017 and 2021 – a request that would ultimately lead to an increase in rates.

OPG says the request is intended to, in part, help offset the cost of a major nuclear refurbishment project at the Darlington Nuclear Station – and the continued operation of the Pickering Nuclear Station past 2020.

The OEB’s decision approves a request for $4.8 billion in costs related to the Darlington refurbishments – and $292 million in fees associated with Pickering – and says rate increase associated with the request will be retroactively effective from June 1, 2017.

The final impact will be determined in early 2018 – but OPG estimated that its application would cost the average ratepayer an additional 65 cents a month over the five-year-period.