Under the plan, Texas Genco is entitled to buy a 13.2% interest, while the City Public Service Board will pick up at least 12%. Austin Energy owns the balance of the facility but will not participate in the transaction.
In early March, Cameco agreed to buy AEP’s stake for US$333 million, subject to the existing refusal rights. The Saskatoon-based uranium giant says it is entitled to US$7 million in compensation if the transaction does not proceed.
“We are disappointed that two STP owners have provided notice to exercise their rights of first refusal,” says Cameco CEO Jerry Grandey. “However, the fact that they did so demonstrates that we negotiated a competitive agreement. We continue to look for opportunities that are consistent with our vision to become a dominant nuclear energy company producing uranium fuel and generating clean electricity.”
The deal was a component in Cameco’s plan to become an integrated nuclear energy company with mining, refining and electricity-generating assets.
The STP interest would have been added to a generating portfolio that already includes a 31.6% share of Bruce Power, which leases eight nuclear power plants about 250 km northwest of Toronto from Ontario Power Generation.
The balance of Bruce Power is owned by TransCanada and BPC Generation Infrastructure Trust, both with 31.6% interests, the Power Workers’ Union, with 4%, and the Society of Energy Professionals, with 1.2%.
The partnership currently runs six plants with a total capacity of 4,660 MW. In Late May, Unit 4 at the Bruce A generating station was shut down to allow for scheduled maintenance, which includes hundreds of inspection and maintenance activities. Units 3, 5, 6, 7 and 8 remain at high power. Cameco is the sole supplier of fuel.
The two STP units began production in 1988 and 1989, and are licensed until 2027 and 2028.
Be the first to comment on "Cameco’s Texas power deal fizzles (June 07, 2004)"