TransCanada Corp. (NYSE: TRP) has been advised that Bruce Power has submitted a request for a force majeure claim to the Ontario Power Authority as a result of an external event that delayed the synchronization of the Bruce A nuclear Unit 2 to the Ontario power grid.
A force majeure frees a company from liability if an unavoidable or natural catastrophe leaves them unable to fulfill their contractural obligations.
An incident happened May 18 in the generator system at Unit 2 that caused some damage and delayed the in-service date of the reactor. Workers continue to assess the damage to Unit 2, and have the materials needed to complete the repairs, TransCanada said in a statement. There is no word on when the unit will be ready to restart.
TransCanada’s share of the total net capital cost of the refurbishment is C$2.4 billion ($2.32 billion). Refurbishment of Unit 1 is ongoing and that unit is expected to begin commercial operations in mid-3Q 2012. Once completed, the plant is expected to generate 6,200 MW.
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