Former employee of: Defence Industries Limited (1945 to 1948) • National Research Council (1948 to 1952) • Atomic Energy of Canada (1952 to 1955) • Hydro (1955 to 1989)

Acknowledgements In the preparation of this paper, I would like to extend my special thanks to Elgin Horton, Former Vice President of Nuclear Operations who provided valuable advice, information and assistance in the preparation of this paper.

In particular, I would like to thank Tom Campbell, former Chairman of Ontario Hydro; Pierre Charlebois, former Chief Operating Officer of ; and Bob Strickert, former Site Vice-President of Darlington and Pickering Nuclear Generating Stations for their assistance. Bruce A complete

CANADIAN NUCLEAR ASSOCIATION Why Ontario Generates So Much Electricity From Nuclear Energy

By Lorne McConnell 2010

Purpose of this Paper From 1906 to 1952, most of Ontario’s electricity requirements were met by converting hydro energy into electricity. From 1952 to 2010, the amount of hydro energy converted into electricity continued to grow slowly because additional sources of hydro energy were limited. However, from 1906 until today there has been a huge increase in demand for electricity coinciding with population growth and increasing uses for electricity in Ontario’s domestic, commercial, industrial and transporta- tion sectors.

In 2009, electricity generation by type in Ontario was: 55.2% from nuclear energy; 25.5% from hydro energy; 6.6% from ; 10.3% from oil and gas; and 2.4% from other sources.

Nuclear energy provides about 16% of the world’s electricity supply. This paper reviews highlights of why Ontario now generates so much electricity (55%) from nuclear energy as compared with First Electricity In Canada from Nuclear Energy – NPD2 at Rolphton, Ontario – June 4, 1962 – the world (16%). Left to right: Bill Lawson (Shift Supervisor), Lorne McConnell (Station Superintendent) and Allan McCarthy (First Operator). This paper first presents: (A) Some Energy Basics; (B) Ontario Hydro Overview. (A) Some Energy Basics In addition to needs, people also want Introduction energy for comfort, education and enjoy- This paper then looks at nuclear Before discussing the early develop- ment. Examples of people’s wants are development in Canada during three ment of nuclear-electric generation in keeping homes cool in the summer, time periods: Canada with emphasis on Ontario, I providing heat and light in schools and uni- (C) The Nuclear Technology propose to briefly review the following versities, and transporting families in cars Foundation Period from 1942 energy basics: to and from their cottages on weekends. to 1952; • the uses of energy; (D) The Three-Step Development of • factors influencing energy People use a large amount of energy Nuclear-Electric Generating Units consumption; directly to heat their homes, cool in Ontario from 1952 to 1977; and • energy forms: primary and their homes, heat water and power (E) Ontario Hydro Commercial secondary; their personal cars. However, people Nuclear-Electric Generating • primary energy resources; typically use a much greater amount Stations in Ontario after the First • every energy option has advantages to meet their needs and wants through Commercial Pickering A Nuclear- and disadvantages; commerce, industry and transporta- Electric Generating Station. • electricity resources; tion such as mining, manufacturing, (F) Conclusions — Hindsight View • energy objectives; and agriculture, fishing, forestry, garbage from 1989; • energy decisions. disposal, transportation, recycling of material, banks, stores, hotels, summer Important Canadian development The uses of energy resorts, roads and parks. Assembly lines and commercial nuclear activities in People use energy to help meet their in manufacturing plants use electricity- Quebec, New Brunswick, Manitoba and needs and wants. Examples of people’s powered devices extensively to provide overseas between 1952 and today are needs are home heating in winter, maximum flexibility and minimize cost not presented in this paper. water, food, clothing and health. as designs change.

Nuclear Canada Yearbook 2010 3 Why Ontario Generates So Much Electricity From Nuclear Energy

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World energy consumption is often increased from 0.79 billion people consumed about 474 exajoules of divided into four end-use energy in 1750 to 6.71 billion people in energy for which about 80% to 90% sectors: residential (about 15% of 2008, corresponding to an increase was derived from fossil fuels. Figure world energy consumption in 2006), by a factor of 8.5. G3 compares the global emissions commercial, industrial and transporta- • Since the beginning of the Industrial of carbon and the world population tion (moving people and goods: cars, Revolution there has also been a from the beginning of the industrial trucks, buses, subways, trains, ships, dramatic increase in the amount revelation until now. airplanes). of energy consumed per person as • The amount of energy required people have struggled to increase (needs plus wants) by people Factors influencing energy consumption their standard of living through can be reduced by using energy The following are major factors that education, research, creativity, high more wisely, such as by: improving have caused the actual total amount productivity, high employment, efficiency; innovation; cutting waste; of energy consumed in any country etc. The average annual fossil fuel and doing without. or region and in the whole world to consumption is now typically 1.05  increase or decrease: Mg per person per annum of carbon Dramatic improvements were made in • Since the beginning of the and has not changed dramatically in improving energy efficiency between Industrial Revolution there has the past 10 years. However, the total 1900 and 1950. In the case of electricity been a dramatic increase in the carbon dioxide emissions continued use, industry and commerce motors population of the world. For to rise as the world population exceeded 90% efficiency and fluorescent example, the world population has increased. In the year 2008, the world lighting was developed before 1950. Important improvements in energy efficiency continued after 1950 and Figure G3 future efficiency improvements can be expected. Competition, education The Growth of World Population and the Growth of and cost reduction have been the three Annual Emission of Carbon Between 1750 and 2008 primary methods for motivating the four end-use energy sectors to implement 10000 and sustain efficiency improvements. Government regulations and subsidies have also contributed to efficiency improvements. Voluntary cutting 8000 •• of energy waste and doing without energy has also been achieved through research, competition, education and • cost reduction. • •• 6000 • • • In many cases, waste versus want • • • depends upon the eye of the beholder. • Consider the following three examples: • • Throughout the world, sports events 4000 • • occur daily in which 10,000 to 100,000 • • people go to a stadium or arena, often • in their personal cars. In Ontario, many • • • • families use gasoline to drive their cars 2000 • to and from their cottage or ski chalet on • • weekends. Many people in Ontario take • • vacations to other parts of the world in • jet-propelled airplanes. Are these three • • • • examples of unjustified energy waste or 1750 1800 1850 1900 1950 2000 justified people enjoyment?

Energy forms: primary and secondary Population (Millions People) Emissions (Tg/a of C) Down through the centuries, people have used wood, oil, gas, coal, wind, World Emissions of Carbon Dioxide into the atmosphere is normally measured as Teragrams per Annum of C (Tg/a) hydro (water), etc. to meet their energy needs. These forms of energy Source: Carbon Dioxide Information Analysis Center, Oak Ridge National Laboratory, and United Nations Population Division.

CANADIAN NUCLEAR ASSOCIATION 2010

Darlington NGS are called primary forms of energy. impact on the environment primarily dioxide, water and heat. The heat Primary forms of energy may be used depends upon the emissions into the produced is considered a secondary directly by people. But these forms environment at the point where the form of energy. Heat can in turn be of energy may also be converted into electricity was produced from primary converted into electrical energy. other forms of energy before they are energy. used by people. For example, during The production of hydrogen is ano- the 1800s people used water (hydro) to Electricity is a highly versatile form of ther example of secondary energy. produce mechanical energy, which in secondary energy. When electricity Although a great deal of research and turn was used to grind wheat to make was first developed, electric lighting development has taken place, this flour. This mechanical energy is called accounted for a major part of the option has not yet emerged as a major a secondary form of energy. Similarly energy consumed. Today there are so contributor to meeting people’s needs windmills were used to convert wind many uses for electricity that lighting and wants. energy into mechanical energy, which no longer accounts for the majority of in turn was used to pump water to meet the energy consumed. Although major progress has been made people’s needs. in technology associated with energy, the The fossil fuels (coal, oil, ) only major new primary energy option Electricity is not a primary energy. are a chemical form of energy. They that has emerged commercially during All electrical energy is produced by are considered to be a primary form the past 1,000 years is the option of nu- converting various forms of primary of energy because they exist in nature clear fission. Although most energy used energy into electricity. on this planet. These fossil fuels can be in the world today comes from nuclear burned to produce heat energy. In this fusion on our sun, the commercial avail- Electricity has a low environmen- case, the carbon and hydrogen in the ability of primary energy from nuclear tal impact at the point it is utilized. fossil fuels combine with the oxygen fusion on our planet will probably take When electricity is consumed, the in the atmosphere to produce carbon two or more decades to achieve.

Nuclear Canada Yearbook 2010 5 Why Ontario Generates So Much Electricity From Nuclear Energy

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disadvantage of oil is the negative environmental impact of emissions of carbon dioxide and nitrous oxides when it is burned to produce energy. Also, for example, renewable wind energy has the major advantage of being sustainable, but has the disad- vantages of low energy density and low dependability (low capacity factor), which limits its cost competitiveness.

Electricity resources In 2010, most of the electricity energy in the world, including North America, is produced from chemical energy utilizing coal, oil and natural gas. If electricity used to power public transportation such as subways or streetcars, or private automobiles, is produced by burning coal or oil or gas, the atmosphere is still being polluted with carbon dioxide and other combustion products such as sulphur dioxides and nitrous oxides. However, in Canada and Ontario about 75% of the Pickering A and B complete electricity is produced in hydro-electric and nuclear-electric generating stations Primary energy resources The nuclear energy resources (fission with no emissions of carbon dioxide or The following are the world’s current and fusion) exist in nature. Nuclear nitrous oxides. most important primary energy resources. fission using uranium fuel is a recent They are the most important because they commercial technology used to Hydro energy includes (a) potential are the current major contributors plus produce electricity. Nuclear fusion energy in the form of elevated water promising future contributors. They are using hydrogen isotopes is not yet (dams); and (b) kinetic energy in the divided into three categories. The current commercially available. Although not form of running water (run of the six major energy resources are marked renewable, it is available without limits. river). When the water in dams falls, with an asterisk (*). The energy usage is the potential energy is converted into for 2008. The renewable energy resources are kinetic energy. The kinetic energy • Fossil energy resources (85%): coal* attractive because of their long-term of running or falling water can be (25%); oil* (37%); gas* (23%) sustainability. Renewable energy (ex- converted into electricity using a hydro • Nuclear energy resources (6%): cluding geothermal and tidal) is direct turbine-generator. If we then use this nuclear fission (uranium)* (6%); radiation from the sun (solar) or electricity to power subways, streetcars nuclear fusion (hydrogen) (0%) radiation energy from the sun converted or automobiles, we will not be polluting • Renewable energy resources (7.5%): into other forms (wind, wave, biomass our atmosphere with carbon dioxide solar (radiant energy from the sun) and hydro). Tidal energy derives from and other combustion products. (0.04%); wind (kinetic energy) the mass attraction between the Earth However, some people do oppose (0.3%); wave and tidal (kinetic and the moon and sun. the use of hydro energy because they energy) (0%); geothermal (0.2%); believe the negative effects are too biomass (wood, waste)* (4%); Every energy option has great, such as the flooding of agri- hydro* (3%) advantages and disadvantages cultural land, the loss of beautiful Each of the above resources has waterfalls, interference with fishing or The fossil energy resources (coal, oil advantages and disadvantages. For other similar objections. Although most and gas) were created and stored by example, the high energy density of oil energy used in North America is from nature millions of years ago, using solar and oil derivatives, such as gasoline and fossil fuels (coal, oil and gas), hydro radiation from the sun. Solar radiation diesel fuel, at normal temperatures and energy is an important contributor to from the sun is derived from the pressure makes oil very attractive for energy needs in both the United States nuclear fusion of hydrogen and helium the transportation sector (cars, trucks, and Canada. In Canada, hydro energy in the sun. trains, ships, airplanes). The major is particularly important in Quebec,

CANADIAN NUCLEAR ASSOCIATION 2010

Ontario, British Columbia, Manitoba water pumps (windmills). Solar energy, during the past 250 years, very few and Newfoundland and Labrador. wind energy and tidal energy are often advances have been made in respect referred to as forms of “renewable to new resources of primary energy. Fossil energy (coal, oil and gas) was energy.” However, the production of One exception is the development of originally derived from radiant energy economic, competitive electricity from nuclear energy during the last century from the sun and hydro energy is solar energy, wind energy and tidal (1900 to 2000). As with all other forms today derived from the radiant energy energy is very challenging because of of energy, nuclear energy (fission), from the sun (evaporation of water the inherent low-energy density that which burns uranium, has its pros followed by rain). This radiant energy tends to result in high initial capital and cons. Many people have concerns was in turn produced from nuclear cost and high land use. The variability relating to the radioactivity produced fusion energy on the sun. Other forms of the wind (calm to storm) is also a from nuclear fission. of primary energy produced by the challenging characteristic. At present radiant energy from the sun are: the only hydro energy is a major renewable Energy objectives kinetic energy in ocean waves, the contributor to electricity supply. During the past 250 years there has been kinetic energy of wind and the direct Nevertheless, renewable energy other tremendous progress in advancing the use of the radiant energy from the sun than hydro energy, such as wind energy, technology of all of the energy options, (solar energy). In the past, the wind is expected to make important contri- which in turn has advanced the use of energy was extensively used by people butions to future energy requirements. energy to meet the needs and wants for transportation (sailing ships) and In spite of major technology advances of people.

Douglas Point was the full scale prototype of the CANDU reactor system

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Pickering A and Rouge River Park

The five most fundamental criteria Canada has enjoyed extensive nuclear energy is high, which in evaluating and choosing energy renewable hydro energy. The requires large initial investments. options are: province of Ontario has very little • Reliability: People depend on • Cost: What is the delivered energy economic indigenous fossil fuels energy. Is the energy available cost to the energy consumer for (coal, oil and gas). Coal burned most of the time with the quality each energy option? In the case in Ontario that is transported expected? The key measures are of electricity, two cost units are from the Maritime provinces or capacity factor, capability factor and important in Canada. The energy Western Canada is expensive forced outage rates. cost is measured in cents per because of the high transporta- • Employee safety: Are the people kilowatt hour and the capacity cost tion cost. Coal burned in Ontario engaged in the production and is measured in dollars per kilowatt. from the United States has a much utilization of energy acceptably For each energy option, the cost lower cost, but all of the economic safe (minimum adverse effects such is not a single fixed number, but benefits (jobs) are gained in the as death, injury, deterioration of depends on many factors. For U.S. rather than Canada. Canada health)? Although an annual rate example, the intensity of renewable has extensive amounts of low-cost of zero injuries is ideal, an industry solar energy is much greater and is uranium. However, in Ontario the may be considered good when the more economic near the Equator capital cost (dollars per kilowatt) risk of injury at work is 10 times safer than in Canada. On the other hand, of renewable hydro energy and than when not at work.

CANADIAN NUCLEAR ASSOCIATION 2010

• Public safety: Are the members of Similarly, any country that ignores Energy decisions the public near the production of cost will suffer the consequences of The above five objectives are very the energy or utilizing of the energy increased poverty, increased unemploy- important in making energy decisions. acceptably safe (minimum adverse ment, reduced health services and a There are other important consider- effects such as death, injury)? reduced standard of living. ations (both rational and irrational) • Environmental protection: Does that influence energy decisions. A the energy have an acceptable The following is suggested as a good few examples of social and other impact on the general public and overall energy objective: Achieve considerations that may influence biosphere regarding (a) adverse the lowest cost consistent with decisions are: health effects, (b) excessive use acceptable reliability, employee • If a country or region is well of valuable land, (c) adverse safety, public safety and environmen- endowed with a resource such as degradation of appearance, (d) tal protection; meet all regulatory coal, oil, gas or hydro, the people in adverse effect on climate, and requirements; and maximize that region may favour the use of the (e) increased flooding of land, etc. Canadian benefits. indigenous resource. Whether or not it is the lowest cost or has serious Every one of these is a vital objective. If minimizing consumer cost is in adverse consequences, it will create For example, the global, regional and conflict with maximizing Canadian jobs and enhance the economy local consequences of adverse environ- benefit, the authorities will have to of the local community, region or mental effects are extremely serious. make the compromise decision. country.

MDS Nordion

Nuclear Canada Yearbook 2010 9 Why Ontario Generates So Much Electricity From Nuclear Energy

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Wolsong 1 under construction

• The geography of the resource may (often to oppose or support proposed the leadership of Sir Adam Beck the influence the costs of an energy projects), may contribute to rational Ontario government created the Hydro- option. For example, solar energy or irrational energy decisions or Electric Power Commission of Ontario will be more competitive if close contribute to costly delays. to manage and provide the province’s to the Equator because the energy • Energy independence is a power- electricity supply, assuming the extensive intensity is higher. Fuel such as coal ful factor for many countries hydro resources such as Niagara Falls will be cheaper if close to the point because energy is so vital to every would be developed to meet the of use because of high transportation country. Energy independence electrical needs of Ontario at low cost. costs. Fuels may be cheaper if water enhances job security and military This organization was commonly called transport is available. Wind energy strength. Canada has been, and “Ontario Hydro.” Although Ontario will be more competitive in windy continues to be, one of the most Hydro was a public organization and locations. A resource such as hydro energy independent countries in subject to policy direction from the will be less competitive if located the world. Ontario government, it was constituted a long distance from consumers to minimize political interference because of the capital cost of the (B) Ontario Hydro Overview in its operations. Proposals to meet transmission lines and the cost of Purpose future needs were carefully reviewed transmission energy loss. Sir Adam Beck, an Ontario politician, by the commission, which included a • Public opinion, whether or not the was of the view that politicians knew little chairman and experienced commis- opinion is well founded, will continue about managing energy and therefore sioners. Distribution of electricity was to influence energy decisions. energy should be managed by dedicated through a large number of municipal • Political ambitions, the vested professional staff. However, he also felt utilities not managed by Ontario Hydro. interest of corporations (often to strongly that the water resources in Major installations in Ontario Hydro obtain or oppose project approvals) Ontario should be free and developed did require the approval of the Ontario and special interest groups, or SIGs for the public good. In 1906, under government.

CANADIAN NUCLEAR ASSOCIATION 2010

Ontario Hydro met most of the • Ontario was required by law to expenditures (typically over 70%) electrical needs in Ontario during the finance new installations by bonds were spent through competitive period from 1906 to 1999. (debt). After each new installation private enterprise. With no was placed in service, the debt was exceptions, all of the fuel (oil, Ontario Hydro was essentially taken retired (interest and depreciation) gas, coal, uranium) was provided over by the Ontario Government in as part of the consumer cost. by private enterprise. With few 1990. In 1993, the design and con- • Ontario Hydro was a key manager exceptions, all of the manufactur- struction capability of Ontario Hydro of electricity supply in Ontario. ing of components required for was dismantled. In 1999, Ontario Not commonly understood by the electricity generation, transmission Hydro was terminated by the Ontario media or the public, most of the and distribution of electricity was Government and replaced by successor organizations.

Financing Some key highlights of Ontario Hydro between 1906 and 1996 were: • It was not subsidized by Ontario taxpayers. In fact, Ontario Hydro was required to subsidize Ontario taxpayers through water rentals. • Electricity was delivered to Ontario municipalities at a price equal to cost. • Ontario Hydro paid grants in lieu of taxes to municipalities for Ontario Hydro facilities located in each municipality. • Ontario Hydro did not have “deficits.” The electricity rates each year were set to recover all costs. Deficits occur when the revenues are lower than costs. The federal government and the Ontario government ran “cumulative deficits,” but Ontario Hydro did not have “cumulative deficits.” Debt financing of new assets is common to most public utilities throughout the world. • Ontario Hydro was regularly audited to ensure it was being managed financially in accordance with its constitution, established by the Ontario government. • Rainfall each year was variable, which affected the amount of hydro- electric energy available. A rate stabilization fund was created to smooth customer rates from year to year. • Ontario Hydro was always financially sound and it maintained a financially sound debt ratio of about 80% (total debt divided by total assets). This debt ratio was better than most of the public electrical utilities in other provinces of Canada. Qinshan under construction

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fuel; and (f) corporate overheads such as accounting, legal costs, and power system planning.

Dedicated power system operations ensured that generating stations were operated to minimize total costs and ensure reliable supply; electricity was purchased from other electrical utilities to minimize total costs; and electricity was sold to other electrical utilities to minimize costs.

Emissions from fossil- electric generation Ontario Hydro shut down fossil plants when required because of adverse mete- orological conditions to ensure that CEGB – test collision with transport cask Ontario Hydro fossil stations had a low impact on the environment at ground provided by competitive private improvement in electrical demand level. In Ontario, Ontario Hydro made enterprise. The main public and supply; to support design and con- a very low contribution to emissions enterprise expenditures were struction for new installations; and to of particulates, sulphur dioxide and operations and maintenance staff support operations and maintenance nitrous oxides at ground level. For (not material), energy research, in problem solving. example, in the major ground- project management, construction level contributions of these emissions management and part of the design The costs of research were included are caused by cars, trucks, trains, homes requirements. in Ontario Hydro rates. Profits arising and some industries. from research performed for other Note: Technological progress (wireless utilities (primarily U.S.) reduced Since 1980, Ontario Hydro was aware of cell phones, microwave, satellites, etc.) Ontario Hydro research costs. Ontario growing concerns about carbon dioxide has permitted increased communica- research expenditures typically emissions. Also in 1980, Ontario Hydro tions competition (telephones, radio, constituted about 2% to 3% of the total was a low emitter of carbon dioxide due television, Internet, etc.). In the case customer electricity cost. However, the to the zero emissions from the hydro of electricity supply to consumers, no net cost of the research division was and nuclear generation of electricity. technology exists and it is doubtful that negative because the problem-solving any technology will become available service lowered the cost of operations The 25-year plan for the period 1990 in the next few decades that will allow and maintenance, and the capital cost to 2015 specifically outlined plans the consumer to receive alternative of new facilities. to further reduce carbon dioxide competing electricity supplies (all emissions through additional renewable electricity transmission and distribu- Major electricity cost components and nuclear generation. Due to the 1990 tion remains hard wired). With respect The three major consumer cost major recession, the takeover of Ontario to electricity generation, the people of components were interest and deprecia- Hydro by the Province of Ontario Ontario benefited from the low-cost tion on capital (bond debt); operations in1990, and the subsequent termination electricity achieved through having few and maintenance; and fuel costs (coal, of Ontario Hydro in 1999, this 25 year generating stations, which contained oil, gas, uranium, water rental, etc.). plan was never implemented. large generating units. • Ontario Hydro was responsible for For planning and decision purposes, Ontario Hydro: 1906 to 1952 the main high-voltage transmission costs include the full life cycle costs for During the period from 1906 to 1952, while most (but not all) retail distri- all options such as (a) capital modifica- most of the Ontario electricity needs bution was the responsibility of local tions (b) retubing of fossil and nuclear were met by hydro-electric generation. municipal utilities. plants (c) decommissioning of old The cost of electricity from hydro- plants; (d) transportation and disposal electric generation in Ontario was lower Research of ashes from coal fired stations; (e) than the average cost of electricity in the Ontario Hydro had a research division transportation, temporary storage, United States. Although the U.S. also with three purposes: to seek long-term and final repository for spent nuclear had major hydro-electric generation,

CANADIAN NUCLEAR ASSOCIATION 2010

American needs were primarily met Of course, it was also desirable to to participate in the plans of Atomic through thermal-electric generation continue to expand all remaining Energy Canada Limited (AECL) by burning coal, oil and gas. Low-cost available, economical hydro-electric to develop nuclear-electric generation hydro-electric generation was of vital generation. The development of the St. in Canada. importance in helping the expansion Lawrence Seaway, with further hydro- of commerce and industry in Ontario. electric generation, was undertaken Increased demand expected: 1952 During the Second World War, the during the 1950s. During the Second World War, wartime expansion of electric generation priorities had prevented or reduced was limited and so at the end of the Ontario Hydro’s Director of Research, the production of many consumer war there was a need to build more Percy Dobson, had visited the Chalk goods. For example, you couldn’t buy a generation. Although, more economic River National Laboratories in Chalk new car in Ontario during the war. But hydro-generation was available, it River, Ontario, and he advised Hearn after the war, Ontario Hydro planners became clear that Ontario would have of the possibility of using indigenous foresaw a major increase in demand for to turn to other sources to meet its Ontario uranium to power nuclear- more electricity. Most of the electricity future needs. At that time, the carbon electric generating stations in Ontario. generated in Ontario in 1952 was dioxide emissions (global greenhouse Hearn and Dobson recognized that from hydro-electric units. The average gas emissions) were not an issue. such an option would have to be electricity cost in Ontario was much  developed commercially. Hearn lower than in the United States. More After the war, Richard L. Hearn was strongly desired to continue generating electricity generation was expected from the Chief Engineer at Ontario Hydro. electricity in Ontario below the U.S. new hydro-electric generating stations, Hearn knew that the only major average cost. Also at the end of Second but this new generation would be small commercially available option to World War, Ontario Hydro recognized compared with the expected increased hydro-electric generation was to build the need to change from a 25 Hertz demand. For example, additional thermal generating stations using electrical system to a 60 Hertz system, hydro-electricity would be provided by coal, oil or gas fuels. However, Ontario which had become the North American the hydro-electric Saunders Generating did not possess any major low-cost, standard. One of the key engineers Station to be built in conjunction with indigenous coal, oil or gas. The whom Hearn assigned to this frequency the St. Lawrence Seaway and the Des prospects for finding such resources standardization program was Harold Joachims hydro station built on the in Ontario were very low. Low-cost coal Smith. This mammoth frequency Ottawa River. Nevertheless, Ontario was available elsewhere in Canada, but standardization program posed many Hydro knew that the only other major the transportation cost was very high. major problems, but it was carried out economic alternative to meet most of The best economic choice for Ontario promptly and efficiently. Hearn sub- the future requirements at that time was to build coal-electric generating sequently arranged to attach Smith to was by burning fossil fuels (coal, oil stations and buy coal from the U.S., the Chalk River National Laboratories and gas). which could be transported cheaply across Lake Ontario.

Hearn was very concerned about this situation because: • Ontario might lose its electricity low-cost advantage; • jobs associated with supply fuel would go to the U.S.; • Canada had a complete infrastruc- ture to plan, design, manufacture and construct hydro-electric generating stations. Although hydro-electric generating stations are capital intensive (high bond debt), they are not vulnerable to high cost escalation; and • most of the cost for coal-electric generating stations is the cost of the coal, which would make Ontario Hydro vulnerable to uncontrollable escalation in U.S. coal prices. CANDU 6 interlock to reactor

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manufactured competitively in Canada, but that many of the major components for fossil stations would have to be procured outside Canada. Coal from Western Canada would be expensive because of the high transportation cost. On the advice of Dobson, Hearn decided to cooperate with Atomic Energy of Canada Limited (AECL) in exploring the possibility of developing economical nuclear-electric generation and hopefully maintaining Ontario Hydro electricity costs below the U.S. average cost. Subsequently Hearn moved from his position as Chief Engineer to become the Chairman of Ontario Hydro.

(C) The Nuclear Technology Foundation Period From 1942 to 1952 Introduction The following is a quotation from a paper by John Foster, who played a key role in the development of nuclear power in Canada from 1953 to 1977:

“The potential to produce useful energy was recognized from the outset. The Second World War intervened and the fission reaction was first applied in the manufacture of bombs. This was the First Stage, the stage of development of the use of nuclear fission, which uncovered many of the fundamentals relative to the process and demonstrated the feasibility of building and operating nuclear fission reactions. To develop any use of fission Wolsong construction by night it was necessary to have comprehensive knowledge of the fission products and Ontario Hydro challenges managers with extensive thermal- their properties in order for a chain The only low-cost coal available to generation experience to ensure the reaction to be sustainable.”1 Ontario Hydro was from the United plants were acquired and operated States. Accordingly, after the war, efficiently. U.S. atomic bomb program: Ontario Hydro decided to get 1942 to 1945 experience with fossil-generating Hearn worried that if Ontario Hydro In 1942, the United States undertook plants, and the J. Clark Keith and R.L. lost its low-cost advantage, Ontario the rapid development of atomic Hearn Generating Station were built. would be less attractive for establish- bombs using two different processes: Prior to the war, most of the generating ing and maintaining industry. Ontario • a nuclear fission bomb using units in North America were 30 Hydro’s planning and research orga- plutonium produced in low flux Megawatt units or smaller. Ontario nizations advised Hearn that there graphite moderated reactors, Hydro knew that major cost reductions was little promise of finding extensive fuelled with natural uranium; and could be achieved using larger units low-cost coal, oil or gas in Ontario. He • a nuclear fission bomb using and multi-unit generating stations. knew that most of the components in enriched uranium 235 produced in Also, Ontario Hydro hired several hydro-generating stations could be enrichment plants.

1 First Stage of Nuclear Development, The Development of Nuclear Power – John Foster – Special Symposium 29th Annual Conference of CNA, Ottawa, Ontario, June 5, 1989.

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This U.S. bomb development was • the National Research Council (NRC), “In December 1940, two European known as the Manhattan Project and responsible for the underlying scientists, (Hans von) Halban and was carried out by the U.S. Army Corps research and development to support (Lew) Kowarski, produced experimen- of Engineers, headed by General project activities for which there was tal proof that a combination of uranium Leslie Groves. European scientists and no prior world experience. oxide and heavy water could produce engineers were employed in this U.S. a divergent chain reaction — where program. Canada cooperated with the Many Canadian organizations were de- output of neutrons is greater than U.S., for example, by supplying natural ployed to construct the committed any input from a neutron source. The uranium. Canadian facilities and to manufacture conception of a heavy-water reactor was the required components. Defence no small accomplishment and as far as Key Canadian nuclear Industries Limited had been created Canada was concerned, it was a lasting organizations: 1942 to 1952 during the war by the Canadian one. Every subsequent Canadian or Two of the key Canadian decision government to support the Canadian Canadian-designed reactor is properly makers who oversaw the Canadian military program. DIL used management a descendant of Halban’s original program were C.D. Howe, a profes- from Canadian Industries Limited, a conception and experiments. The sional engineer and a Cabinet Minister competent Canadian company. Canadian government agreed in in the Canadian government, and C.J. August 1942 to accept and support a Mackenzie, a professional engineer and Early Anglo-Canadian nuclear laboratory of British scientists. They Head of the National Research Council program: 1942 to 1947 were to work on atomic research. The of Canada. The two key Canadian orga- In 1988, Professor Robert Bothwell, Canadian government for its part nizations during the war were: a prominent Canadian historian, — through the agency of Howe and • the Defence Industries Limited published a book called “Nucleus,” Mackenzie — expected to pay many if (DIL), responsible for design and which presents the history of AECL. The not most of the lab’s expenses, and to operation; and following quotation is from his book: send Canadian staff, both scientific and support, to join Halban’s team.”2

This laboratory was established in Montreal at the Université de Montréal.

Britain, Canada and the U.S. recognized that Halban was not a good leader and he was replaced by Sir John Cockcroft of Britain in April 1944. This Anglo- Canadian laboratory also included important scientists from other countries, including France and Italy.

Because the Allies were concerned that Germany might already be developing an atomic bomb, the United States and Canada gave high priority to these wartime nuclear programs. Under peacetime conditions, such devel- opments would be expected to take much longer.

Canadian nuclear facilities: 1942 to 1952 In 1944, the staff of DIL and NRC were located in Montreal where the DIL staff performed the design with the theoretical support of the Anglo-Canadian laboratory, also in Montreal. Preparing a reactor’s foundation

2 Early Anglo/Canadian Nuclear Program – Robert Bothwell – Nucleus – The History of Atomic Energy of Canada Limited – University of Toronto Press 1988 – ISBN 0-8020-2670-2.

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success was achieved in a few years rather than decades.

All of these U.S. and Canadian wartime ventures were successful: • uranium 235 was extracted from natural uranium using U.S. enrichment plants; • plutonium 239 was produced in U.S. graphite moderated reactors; and • atomic bombs (nuclear bombs) were developed by the U.S. and dropped on Japan, which contributed to the early termination of the war with Japan.

In 1947, Canada brought the world’s first high flux nuclear reactor, called NRX, into service.

During the 10-year period from 1942 to 1952, Canada acquired extensive nuclear technology, particularly at its Chalk River National Laboratories (CRNL), which contributed to the knowledge foundation for Canada and other countries to proceed with the peaceful uses of nuclear energy. In addition, universities in Canada participated in the advancement of Qinshan construction this nuclear technology. Valuable com- missioning and operating experience At this time a Canadian national • a chemical processing plant to was acquired between 1947 and 1952. nuclear laboratory was established recover the plutonium produced in The operating staff learned how on the Ottawa River, near the town the NRX reactor; and to manage radioactive contamina- of Chalk River, Ontario. It was called • a number of research laborato- tion of buildings, equipment and the Chalk River National Laboratories ries, development laboratories, the atmosphere both during normal (CRNL). A new town called Deep River service buildings and an administra- operation and during maintenance. was established near CRNL, which tive building to facilitate ongoing The operating staff learned how to provided residences for the DIL and research and development. control radiation exposure within NRC and overseas support staff. specified limits utilizing personal self Wartime successes monitors. Procedures were developed The following facilities were built and New concepts produced by pure to minimize the chance of a nuclear installed at the Chalk River National research often require major expendi- accident and to manage such accidents. Laboratories: tures for applied research, development, • a low flux heavy water reactor called demonstrators and prototypes. The In addition, important testing and Zero Energy Experimental Pile establishment of design, construction, experiments were performed for other (ZEEP); manufacturing and operating capability countries, particularly the U.S. and • a high flux heavy water reactor to can take decades, and in some cases Britain. Nuclear fuel tests were done produce bomb grade plutonium. the implementation of an idea can for nuclear submarines. Experience was This reactor, called NRX (National require an extensive infrastructure. gained in the operation of installations Research Experimental), also The American and Canadian wartime operating at high temperature and featured excellent facilities for ventures included many challenges high pressure. For example, chemical research, applied development, and problems, differences of opinion control was established to minimize production of radioisotopes and and conflicts amongst the leaders and corrosion in high temperature water testing of prototypes; doers. However, with wartime priorities, circuits and minimize the precipitation

CANADIAN NUCLEAR ASSOCIATION 2010 of corrosion products on nuclear fuel to the water chemistry to solve this design staff made major changes to operating at high temperature. Detailed problem. The operating staff at CRNL improve the operating reliability of knowledge was acquired about fission made these modifications and achieved the reactor while maintaining a high products such as iodine, xenon, and excellent performance of the loop. As level of protection. Similar measures samarium, which sometimes prevented a result, there was high confidence in became vital features of all future reactor restart after a shutdown. Most the operation of a future pressurized nuclear-electric generating stations. An important, methods were developed to water reactor (PWR) application or a electrolysis-based heavy water upgrader increase the operating reliability while future pressurized heavy water reactor was placed in service at CRNL to restore maintaining a high safety standard. (PHWR) application under high flux recovered downgraded heavy water. Another important product of NRX conditions. was the production of radioisotopes, Learning from others which contributed to medical research; NRX nuclear accident This paper has been written to focus on sterilization of medical supplies; In 1952, there was an accident at the development of the Ontario Hydro improved shelf life of foods; and cancer the NRX reactor at the Chalk River nuclear-electric program in cooperation therapy. National Laboratories. Radioactivity with Atomic Energy of Canada Limited. was released from the NRX reactor into Although many countries benefited NRX central thimble the NRX building. However, the radio- from Canadian nuclear technology, The NRX reactor featured a vertical activity was contained acceptably inside it must be emphasized that Canada central thimble, which permitted the building. In hindsight, this accident acquired important nuclear technology large-scale experiments and tests to was a blessing in disguise. A set of safety from other countries. For example, the be performed in the high neutron principles was established to prevent very low fuelling cost of the pressure flux of this reactor. In cooperation a recurrence, the design of NRX was tube Canadian reactors was vitally with the Westinghouse Atomic Power modified and the reactor was restored dependent on the development of Division (WAPD) in the United States, to service. The safety principles were zirconium alloys used for both pressure a high-pressure, high-temperature subsequently modified from time to tubes and fuel manufacture. Canadian water loop was installed to test nuclear time but were essentially adopted and researchers, designers and operators submarine fuel. A major problem applied to all nuclear-electric units in benefited from the experiences of occurred, resulting in excessive Canada, and similar principles were nuclear programs in other countries. corrosion products precipitating on adopted throughout the world. The For nuclear generating units that AECL the test fuel. WAPD proposed changes DIL operating staff supported by DIL supplied to other countries, Ontario Hydro operating staff often trained the operating staff of other countries and/ or oversaw the commissioning of such units, for which Ontario Hydro was reimbursed for its costs.

The technical choices Again I would like to quote John Foster:

“When countries turned their attention back to using nuclear fission to produce energy for constructive uses, the first question was what kind of reactor to build. The potential scope for choice was very great indeed. The reactor might be moderated or not and, if moderated, graphite, beryllium, water, heavy water or an organic liquid might be the moderating material. The fuel might be uranium metal or an alloy, oxide or carbide of uranium. Heat might be removed from the reactor by water, heavy water, carbon dioxide, helium, organic liquids, molten salts or liquid metals. If water, it might Delivery of a calandria at the Bruce A nuclear power station be boiling or not. The fuel might be

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of NRU. The C.D. Howe Company had been established by C.D. Howe in 1935. However, at the time the contract was placed, C.D. Howe had severed all connections with this company.

No NRU operating experience was obtained before the launch of the Canadian nuclear-electric program. However, Canada acquired consid- erable experience in designing the on-power fuelling system, which became an important feature of the Canadian nuclear-electric units called the CANDU design. In 1948, it was expected that NRU would have a lifetime of perhaps only 15 years. But NRU has been operating for more than 50 years and is still in operation in 2010. NRU went into service in 1957 and contributed to the develop- ment of the Canadian nuclear-electric generation program.

(D) 1952 to 1977: Pickering opening 1971 – Premier Bill Davis The Three-Step Development of Economic Nuclear-Electric sheathed in stainless steel, zirconium was created by an Act of Parliament. Generating Stations in Ontario alloys, graphite or other ceramics. As a result, after the war, the DIL staff Atomic Energy of Canada created Fortunately, not all the permuta- and the NRC staff at the Chalk River After the Second World War ended, tions and combinations are possible. National Laboratories were integrated Canada made a major decision that it Nevertheless, there are probably a few into one NRC organization. Some of would pursue nuclear programs for hundred conceivably feasible combi- the borrowed CIL managers returned peaceful purposes of nuclear energy. nations and a surprising number were to CIL. Most of the DIL staff responsible The Act of Parliament that created attempted. Many more were proposed. for design, applied development and the National Research Council did not I am sure that a hundred years from operations remained at CRNL, and permit NRC to establish commercial now, when nuclear power is as normal their experience was used for the organizations. For this reason, in 1952 as apple pie was before Meryl Streep, subsequent development of nuclear- the Canadian government created enterprising young engineers will find electric generating stations. Atomic Energy of Canada Limited that latest bright ideas were anticipated (AECL), which took over the Chalk by someone in the 1950s.”3 The NRU Reactor River National Laboratories (CRNL) Shortly after the NRX reactor was and became directly responsible for Amalgamation into one started in 1947, a CRNL development advancing the uses of nuclear energy NRC organization group, which included both engineers in Canada. In essence, all NRC staff at During the Second World War, Defence and scientists, undertook to build the CRNL became employees of AECL. Industries Limited, known as DIL, was a higher flux combined plutonium AECL was initially a part of the Atomic created by the Canadian government production/research reactor called Energy Control Board headed by C.J. to oversee the development and National Research Universal, or Mackenzie, and later reported directly improvement of supplies and NRU. This reactor also was to include to a federal Minister. In 1953, the equipment to support the Canadian excellent facilities to advance research AECL President, Bill Bennett, issued a Armed Forces. This organization was and produce radioisotopes. The reactor mission statement: “The development managed by people borrowed from featured a heavy water moderator, heavy of nuclear energy for power purposes is Canadian Industries Limited (CIL). water coolant natural uranium fuel, a the prime objective of AECL.” DIL was not created through an vertical reactor and on-power fuelling. Act of Canada’s Parliament, but was NRC placed a contract with the C.D. Nuclear Power Group: 1954 to 1957 created using wartime authority of the Howe Company, located in Montreal, In early 1954, a team called the Nuclear Canadian government. However, NRC to design and oversee the construction Power Group was created. This AECL

3 The Technical Choices, The Development of Nuclear Power – John Foster. Special Symposium 29th Annual Conference of Canadian Nuclear Association, Ottawa, Ontario, June 5, 1989.

CANADIAN NUCLEAR ASSOCIATION 2010 study team was intended to establish government ministers, Ontario Hydro’s the nuclear fuel required to operate the “a potential Canadian nuclear power chair, AECL’s president, AECL’s board of stations. system.” The team, operating under directors and the Ontario Hydro commis- the auspices of AECL, included “a sioner. Any progress depended on these Key leaders cross section of Canadian industry, people to approve or obtain approval of In between the doers and the key both electric supply utilities and the required funding for research, applied authorities were outstanding key manufacturers.” development and nuclear projects. Five leaders who: notable key authorities in the 1950s were • assimilated the knowledge and rec- Harold Smith, the leader of the team, C.D Howe, an engineer and a federal ommendations of the doers; was from Ontario Hydro. Other orga- Cabinet Minister; C.J. Mackenzie, an • endorsed, rejected or modified nizations represented were Montreal engineer and Head of the Atomic Energy recommendations of doers and/ Engineering, Babcock & Wilcox, Control Board; David Keys, a physicist or formulated recommendations Shawinigan Engineering, Brazilian and Head of NRC Chalk River National (projects, organizations, staffing, etc.); Traction, BC Hydro and Ontario Hydro. Laboratories; Bill Bennett, President of • obtained the approvals of the key AECL; and R.L. Hearn, chief engineer authorities; John Foster (of Montreal Engineering) and later Chairman of Ontario Hydro. • oversaw, nurtured and monitored the recorded the following: “In these early progress of the committed programs, stages of the program, a number of Doers and made changes as necessary. As important givens were assumed: vertical The ideas that shaped the Canada/ might be expected, different people reactor core geometry contained in Ontario Hydro nuclear-electric program had different opinions in 1952 as to a steel pressure vessel; the adoption between 1952 and 1977 came from how the future electricity needs in of heavy water cooling; on-power hundreds of competent doers throughout Ontario should be met. refuelling; and control and shutdown the participating organizations (research, by mechanical control rods.” development, design, construction The four major key leaders shaping the and operations). A complete nuclear joint Canadian/Ontario Hydro nuclear In effect then, the concept represented infrastructure required the competitive program between 1947 and 1977 were: a direct evolution of NRU with the private enterprise in Canada with the • W.B. Lewis of AECL, who oversaw pressure vessel allowing operation ability to design and manufacture the research at CRNL; he was a powerful of the heavy water coolant at high equipment and components needed brilliant highly respected scientist pressure and, hence, temperature — to build the nuclear-electric generating and a dedicated promoter of the essential if a usefully high thermody- stations, and the ability to manufacture CANDU concept. namic efficiency was to be achieved for electricity production.

In terms of neutron economy and high burn-up, heavy water is a superior neutron moderator compared with other moderators such as graphite and light water. This meant that heavy water moderated reactors promised to have a lower fuelling cost. However, heavy water was expensive and there was a worry that during operation too much leakage might occur under conditions of high pressure and high temperature. Preventing the loss and downgrading of heavy water became one of the major design and operating challenges.

Key authorities The development of nuclear-electric generating stations in Ontario between 1952 and 1977 depended on funding and program approvals by the key authorities, including Canada’s prime minister, Ontario’s, federal and provincial Gentilly 1 and 2

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• Harold A. Smith of Ontario Hydro, head of the Nuclear Power Plant nuclear-electric generating units. who was the key team leader in design team, which designed nuclear These countries intended to establish formulating the CANDU concept stations in Canada and overseas. He competing organizations to design and at CRNL; he proposed AECL/ succeeded Lorne Gray as President supply nuclear-electric generating units. Ontario Hydro agreements; and of AECL. promoted teamwork between all Based on the recommendations of project functions. Subsequently, Step 1: Nuclear Power Demonstration the Nuclear Power Group, a decision Smith became the Chief Engineer 1–20 MWe: 1955 to 1957 emerged that Canada’s first nuclear- at Ontario Hydro from 1958 to Atomic Energy of Canada Limited was electric demonstration should be a 1974 and was in charge of all the lead organization in the beginning small unit. Measurements at NRX Ontario Hydro planning, research, of the nuclear-electric development indicated that low fuelling cost could development, design, construc- program in Canada. The electric be achieved with natural uranium, tion and operations. He was widely utilities in Canada and industrial orga- and Canada had extensive deposits of recognized as one of the most nizations were contacted and invited it. Ontario Hydro knew that extensive brilliant engineers in Canada during to contribute proposals, staff and deposits of uranium had already the last century. funding to get the program under way. been established in Ontario. There • Lorne Gray of Atomic Energy of AECL initially concluded that Canada was no uranium enrichment plant in Canada was an engineer, a powerful needed to establish competing private Canada. This design would permit decision maker and negotiator as well companies that could design and/ Canadian nuclear fuel supply with no as a good organizer, who formulated or supply nuclear-electric generating requirement to build an enrichment sound policies. He also was very units to meet Canada’s requirements plant in Canada or depend upon a effective in obtaining funding (domestic or overseas). foreign source. approvals from key authorities in the Canadian government. Most fossil-fired units in the world were Proposals received from Canadian • John S. Foster was a power plant 30 MWe or smaller before the war. organizations led to an agreement as engineer formerly with Montreal However, Ontario Hydro had already follows: Engineering. He was a dedicated and proceeded to build 100 MWe coal-fired • Canada would first build a single highly respected engineer, key deputy generating units in Ontario. The unit 20 MWe nuclear-electric leader in the design of the Nuclear United States, Britain and France were generating station, which would Power Demonstration (NPD) and already designing and building be located in Ontario close to the Ontario Hydro Des Joachims Hydro- Electric Generating Station on the Ottawa River and also close to the Chalk River National Laboratories; • This station would be called NPD, which stood for Nuclear Power Demonstration; • This unit would feature a heavy water moderator, natural uranium fuel, a vertical pressure vessel, heavy water heat transport system and off-power refuelling; • The site and conventional part of the station (turbine-generator, step-up transformer, etc.) would be designed, supplied and funded by Ontario Hydro; • The nuclear part of the station (reactor, steam generators, etc.) would be designed by the Canadian General Electric Company (CGE) in Peterborough, Ontario; • The nuclear part of the station would be funded by AECL (federal funding) with a $2 million contribu- Delivery of calandria to a CANDU 6 tion from CGE;

CANADIAN NUCLEAR ASSOCIATION 2010

• Ontario Hydro would buy the steam at an agreed rate based upon the cost of an Ontario Hydro coal-fired generating station and would own the electricity produced by NPD; and • NPD would be operated by Ontario Hydro.

The Canadian General Electric Company created a department called the Civilian Atomic Power Department (CAPD) to design and build the nuclear part of NPD. A number of capable engineers and scientists from CRNL became part of the CAPD staff. The team was headed by Ian MacKay and John Foster. The Ontario Hydro staff who designed the conventional part of the station (electrical generators, steam turbines, civil structures, etc.) were qualified experienced people, located in Toronto.

CAPD recommended that the fuel be uranium oxide and agreement finally The Bruce heavy water plant, shown next to the Douglas Point reactor was reached with CRNL. The fuel development proceeded at CAPD with Further developments and produce electricity more cheaply support from CRNL. The pressure Part of the Nuclear Power Group joined than the U.S. average by building large vessel contract was placed with a firm the CGE team designing NPD1. Harold multi-unit stations. Ontario Hydro was in Scotland. The turbine-generator Smith remained Head of this Nuclear a larger utility than most of the U.S. contract was placed with a firm in Power Group and new members utilities. The focus for economical England and the NPD site was selected became part of this group. Ontario nuclear competition in Ontario Hydro by Ontario Hydro. Detailed designs Hydro and AECL did not expect became clear. were developed between 1955 and NPD to be commercially competitive 1957, and the construction of NPD got with coal-fired generating stations Many concepts and concept variations under way. in Ontario or elsewhere in Canada. were considered by the Nuclear Concurrently with the design and con- Power Group. By 1957 Harold Smith Ontario Hydro recruited and trained struction of NPD1, this group had the and his team had formulated a operating staff with thermal-electric task of studying and proposing a heavy proposed concept called CANDU, experience, hydro-electric experience water moderated concept, which would which promised to be commer- and NRX nuclear experience to hold promise of being economically cially competitive with fossil-electric operate the NPD station. The Ontario competitive. generation (coal, oil and gas). The Hydro operations staff were sent to  main features of this concept were: CRNL to get nuclear experience and Harold Smith originally hoped to • a heavy water moderated reactor; the staff with nuclear experience develop a 200 MWe concept that • a zirconium alloy pressure tube reactor received training at Ontario Hydro’s would be competitive in Ontario with (not a pressure vessel reactor); coal-fired stations. Manufacturing coal-fired generation. However, Tod • natural uranium fuel in the form of organizations in Canada developed MacKenzie, the Head of the Planning uranium oxide (not uranium metal); capability to design and/or supply Division at Ontario Hydro, persuaded • a horizontal calandria to hold the NPD equipment and components. The Smith that nuclear units in Ontario low temperature moderator; development of a Canadian nuclear- Hydro would have to compete with • the zirconium-clad uranium oxide electric infrastructure was under way. 500 MWe or larger coal-fired units in fuel would be in the form of short The expected cost to complete NPD Ontario Hydro. fuel bundles; became better defined by 1957 and the • bi-directional fuelling with short fuel cost was much higher than originally It also became clear that Ontario Hydro bundles rather than long rods; and estimated. could buy coal from the United States • on-power fuelling.

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The technology for zirconium alloy It was Harold Smith’s opinion that • Would the pressure tubes be pressure tubes came to Canada from this concept held promise of being reliable? Would they meet the the U.S. This concept promised to be competitive after the following were original 15-year target life before competitive for large generating units, put in service: one demonstration replacement would be necessary? for example, 500 MWe. Zirconium alloy station, one prototype station and • Could pump seals be developed pressure tubes do not absorb neutrons one commercial station. In other to operate at high pressure and as much as stainless steel. Heavy water words, Harold Smith was of the view temperature without significant moderated pressure vessels are much that the second commercial station heavy water losses? larger than light water moderated held promise of being competitive in • Could reliable on-power fuelling pressure vessels because the neutron Ontario Hydro. machines be developed? migration length of heavy water is • Could high-pressure boilers trans- longer than light water. CANDU: major concerns ferring heat from heavy water to When the CANDU concept was created ordinary water with high reliability This new concept by Harold Smith some of the concerns were: be built at reasonable cost? and his team was given the acronym • Would it be practical to build a heat • Would the fuel yield the expected “CANDU,” which stands for CANadian transport system to operate at high high burn-up and low failure rate? Deuterium Uranium. Heavy water is pressure and temperature, or would • Would the reactor be safe to the deuterium oxide. Ordinary water is the loss of high-cost heavy water public and workers? mostly protium oxide. make it economically impractical?

Delivery of the Calandria to Wolsong 2 in South Korea

CANADIAN NUCLEAR ASSOCIATION 2010

• Would the concept of CANDU- PHW lead to economically competi- tive electricity cost in large commercial units operating at base load?

One concept—one design Based on the advice received from the Ontario Hydro Planning Division, Harold Smith concluded that Canada was too small to develop two or more design concepts and support two or more competing design and supply organizations. Smith convinced Lorne Gray of AECL that: • Canada needed to make a single good concept choice; • Canada needed to have one effi- cient nuclear design organization; • Canada needed to have competitive supply of all or most components made in Canada; and • one design organization meant a monopoly and therefore it should be a Canadian public organization.

Obviously, such a proposal was a terrible blow to CGE and the very competent CAPD team that was working on the design and construction of NPD1.

Note: Later Britain and France copied Canada (one design organization with competing suppliers). Even the U.S., with a population 10 times that of Canada, can afford only a few competing nuclear design organizations.

NPD moratorium: 1957 to 1958 With this new CANDU promise and the expectation that completing NPD would be a higher cost than originally expected, the question was asked: “Should NPD1 be cancelled or switched to the new CANDU concept?” AECL proposed and Ontario Hydro agreed that the construc- tion of NPD1 should be suspended. This was called the “NPD1 Moratorium.” The Cernavoda 1 estimated cost to complete NPD1 would be about $34 million, about double the original estimate. • AECL would create a new Canadian CGE staff members were initially design team in Toronto called extremely disappointed. However, AECL and Ontario Hydro proposed and “Nuclear Power Plant Division.” the staff proceeded with enthusiasm obtained approval for the following: This team would design and build to redesign NPD to the new concept. • NPD would be redesigned by CGE a prototype 200 MWe Generating In the longer term, CGE became (CAPD) to the new CANDU concept. Station, called Douglas Point, also an excellent Canadian competitive This would be called NPD2. based on the new CANDU concept. provider of nuclear products, including

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Heavy water loss and heavy water upgrading In the early operation of NPD, a major heavy water leak occurred during a fuelling machine operation on the end of a pressure tube. This again raised the concern about heavy water loss and downgrading cost. In hindsight, this incident was a blessing in disguise. Ontario Hydro operations conceived and implemented a heavy water vapour recovery concept.

CGE designed and installed the system, which served three purposes: • if small unseen leaks of heavy water were taking place in the vicinity of the reactor, the heavy water would be recovered in everyday operation without a nuclear generating unit shutdown; • if a major leak or spill occurred, most of the heavy water would be quickly KANUPP Pakistan recovered and the generating unit promptly restored to service; and • the heavy water recovery would lower nuclear fuel and on-power fuelling The hiring of Ontario Hydro operations the tritium level in the reactor rooms machines. The later commercial stations staff was completed, and all staff in which heavy water equipment is of Ontario Hydro used the best design received appropriate training corre- located, and improve the working features of both the NPD2 demonstrator sponding to their jobs. All staff had to conditions. and the Douglas Point prototype. pass Ontario Hydro examinations. Some had to pass AECB examinations. NPD2 Today all operating commercial nuclear- The Atomic Energy Control Board was constructed by Bechtel under the electric stations have this vapour recovery Canada created a regulatory agency project supervision of CGE. NPD2 was system, and heavy water losses and down- initially called the Atomic Energy commissioned and placed in service on grading costs have been low. Control Board, or AECB. It is beyond October 1, 1962, by Ontario Hydro. the scope of this paper to review the Nuclear training centre development of this part of the Canadian The first electricity in Canada from Nuclear operating staff must include nuclear infrastructure. However, this nuclear fuel was produced at NPD2 on qualified managers, supervisors, agency reviewed and licensed Canadian June 4, 1962. It was a product of the operators and maintenance staff to nuclear projects, which in some cases agreement between three Canadian effectively operate, maintain and solve required changes to meet AECB require- organizations: Atomic Energy of problems at nuclear stations. ments. Also, nuclear operators had to Canada Limited, Canadian General pass AECB examinations to become Electric and Ontario Hydro. NPD2 Shortly after the startup of NPD2, Ontario qualified to operate nuclear stations. was operated from 1962 until 1986. Hydro built a nuclear training centre Its 24-year operation demonstrated alongside it. This nuclear training centre NPD2 placed in service: 1958 to 1962 that the CANDU nuclear concept was recruited hundreds of new staff and gave The sudden change-over to the new sound. Numerous small problems them initial training. NPD was used to CANDU concept was very challenging. emerged, which Ontario Hydro provide the completion of training. The Major decisions relating to the new identified and solved in cooperation nuclear training centre also provided short bundle fuel design, zirconium with CGE designers, CRNL research, training for other Canadian and overseas alloy pressure tubes and bi-directional Ontario Hydro research and manu- staff in nuclear operations. on-power fuelling were an extraordinary facturers. Some major problems challenge. However, by 1957, CAPD was were also encountered. For example, AECL Nuclear Power already a smoothly functioning design CGE later redesigned and built new Plant Division created: 1958 team and NPD2 proved to be an excellent on-power fuelling machines that AECL created the Nuclear Power Plant demonstration of the CANDU concept. performed with excellence. Division in 1958. This division was the

CANADIAN NUCLEAR ASSOCIATION 2010

Research activity at the NRU new publicly owned nuclear design Smith was appointed Chief Engineer applied experience. However, very organization intended to design and of Ontario Hydro. Subsequently, John few of the new staff at NPPD had any manage future nuclear steam supply Foster managed the Nuclear Power experience designing a power station systems to meet the needs of nuclear- Plant Division. electric generating stations in Canada Step 2: Douglas Point Prototype and overseas. The first assignment The first location for the new NPPD 200 MWe: 1958 to 1968 was the design and management of division of AECL was at the Manby The first major task of the Nuclear the prototype 200 MWe Douglas Point Service Centre in Toronto, which was Power Plant Division was to proceed Nuclear Generating Station. owned by Ontario Hydro. Later, NPPD with the design and construction of the moved to new facilities at Sheridan 200 MWe Douglas Point Nuclear-Electric In 1958, Harold Smith (of Ontario Park in Mississauga, Ontario. As with Prototype Generating Station, based Hydro), who led the Nuclear Power CGE, many staff moved from the Chalk on the heavy water moderated, natural Group that formulated the CANDU River National Laboratories to become uranium fuelled, horizontal pressure concept, was appointed Head of part of the new team. Also a number tube reactor, bi-directional on-power this new division. John Foster, who of Ontario Hydro staff members were fuelling CANDU concept. Independent previously worked on the design of attached to this new design division. of size, there were design differences NPD, became Deputy Head of this new Staff members were competent, enthu- between the Douglas Point prototype division. Only one year later, Harold siastic, hard-working people with and the NPD2 demonstration regarding

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Shipment of a calandria from Tracy, Quebec fuelling machines, containment, safety had a combination of reasons, such as: In hindsight, the Douglas Point systems and control. the new design staff was maturing as a experience motivated the competent, working team; there were significant creative staff of NPPD to mature rapidly The agreement between Ontario Hydro problems with equipment during and to be very careful and thorough and AECL was also different than commissioning that required redesign in the design of the first commercial with NPD: and reconstruction; and after startup nuclear-electric generating station. The • With the exception of the site, there were many additional problems experience and confidence in the basic Douglas Point was entirely owned and a high capacity factor was not CANDU concept was reinforced. by AECL; achieved. • AECL retained Ontario Hydro to Step 3: Commercial Pickering design the conventional part of the In a nutshell, the performance of Nuclear-Electric Generating station, manage the construction Douglas Point was disappointing and Station A, Units 1 and 2 and operate the station; and Ontario Hydro was not motivated to The third step in the development of • Ontario Hydro would pay AECL buy the station from AECL. Although nuclear-electric stations in Ontario for all electricity produced at a Douglas Point suffered many Hydro was the construction of a price equal to the cost of producing problems unrelated to the concept, large commercial, multi-unit nuclear- electricity in an Ontario Hydro it reinforced the soundness of the electric generating station. The coal-fired generating station. CANDU reactor concept. The majority early experience with NPD2 was of the components and material were encouraging. However, the problems The original schedule was an in- procured on a competitive basis and that had occurred made Ontario service date of 1964, but the actual the Canadian content for the station Hydro very cautious about the financial in-service date was 1968. The delay was about 71%. risks associated with committing to a

CANADIAN NUCLEAR ASSOCIATION 2010 commercial station. Harold Smith did limited technology and experience would result in diametral creep (a few not wish to proceed further unless he with zirconium alloys at that time. It was mm), lengthening (several cm) and could get the political endorsement of assumed that one retubing would have sagging. To prevent sag causing the the Ontario government. Lorne Gray to be performed during the lifetime of pressure tubes to touch the calandria of AECL did not want to commit unless each unit. It was also assumed in 1957 tubes, spacers were placed between the he got a political endorsement of the that the lifetime capability factor for pressure tubes and the calandria tubes. federal government. nuclear stations would be 80%. If one Furthermore, the operations staff had pressure retubing is performed during to assume that infrequent failures of To obtain the required commitment of the lifetime of each unit and it takes a pressure tube would occur. For the the federal and Ontario governments, two years to retube a reactor, then the first four units (NPD, Douglas Point, Harold Smith proposed to Lorne Gray average capacity factor for the other 28 Pickering 1 and 2), the pressure tubes the following: years would have to average 86%. were made of zircalloy (an alloy of • proceed with the design and zirconium and tin). In all generating construction of two 500 MWe To meet the requirement for retubing, units after 1967, the pressure tubes were nuclear-generating units known as the CANDU concept provided for made of a superior alloy of zirconium Pickering 1 and 2 at a site on Lake all fuel channel components to be and niobium. Ontario near Toronto; replaceable with relative ease. There • Ontario Hydro would fund an are five basic fuel channel components: In the period from 1962 (when NPD amount equal to a coal-fired pressure tubes, end fittings, calandria started) to 1983, the performance of generating station built by Ontario tubes, spacers between the pressure pressure tubes was very good. However, Hydro; tubes and calandria tubes, and fuel on August 1, 1983, one pressure tube • the federal and Ontario governments bundles. Today, without exception, at Pickering Unit 2 failed. This failure would share the additional capital every CANDU unit has this replaceabil- was a zircalloy tube failure caused by funding required for the station; ity feature. Under operating pressure two factors: (a) zirconium hydrides • when the two units were placed and temperature, it was expected the and (b) an improperly located spacer. in service, the three parties would pressure tubes would undergo (a) Design changes have also been made receive revenue in proportion to changes in dimensions; (b) oxidation; to accommodate greater length growth their funding contribution. The (c) hydriding; and (d) mechanical than originally provided and design total revenue would equal the property changes. For this reason, changes have also been made to amount of electricity produced at the program arranged for periodic overcome a deficiency in the rolling Pickering times a price determined removal and inspection of pressure procedure where pressure tubes were by the actual cost of the Ontario tubes. It was expected that pressure, connected to end fittings. On the Hydro coal-fired Lambton Genera- temperature, neutron flux and time negative side, capacity factors have ting Station.

Harold Smith felt that such a commit- ment would ensure the genuine support of the governments, knowing that major risk existed with this proposed venture. The agreement was drawn up and signed by the federal and Ontario governments and by Ontario Hydro.

Pressure Tubes This paper is not intended to review the technical problems and solutions associated with the CANDU concept. However, because the CANDU concept depends on pressure tubes, a few com- ments about the pressure tubes follow.

In 1957, the lifetime of each unit in a future commercial nuclear-electric station was assumed to be 30 years. The lifetime of the pressure tubes was assumed to be 15 years because of the Open pit uranium mining

Nuclear Canada Yearbook 2010 27 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 27 suffered because of the need to replace with Douglas Point. With the expected did take action to establish it. However, pressure tubes. On the positive side, we demand for electricity, Ontario Hydro reliability compromises were made now expect units with one retubing to assumed 100% of the economic risk to accommodate Canadian regional exceed a 30-year lifetime and we may, and costs, and committed to Pickering development. with the current knowledge, be able to 3 and 4. Ontario Hydro wanted to have install new units in which the pressure four standardized units but did approve Ontario Hydro came to the conclusion tube lifetime may exceed 30 years. the change in the pressure tube to zir- that the heavy water arrangements After some problems were solved, the conium-niobium alloy. The vacuum through the federal government were performance of nuclear fuel and containment concept provided for not reliable and decided to establish its on-power fuelling has been excellent. Pickering 1 and 2 was simply extended own heavy water supply at the Douglas Yes, problems with nuclear components to Units 3 and 4. As a result of installing Point site. This arrangement proceeded have occurred. However, the majority Units 3 and 4, Ontario obtained precise in cooperation with AECL. Four Bruce of the problems experienced were capital cost knowledge of extending heavy water units were built and their ordinary problems with pumps, valves, units on the same site as compared with performance was highly successful. tubes, wiring, instruments, etc., which the cost for a new site. Ontario Hydro also received excellent are characteristic of many non-nuclear cooperation from the United States generating units. Canadian heavy water supply — where Ontario Hydro operating staff Bruce heavy water plant received training, which contributed to Commercial Pickering Nuclear-Electric Ontario Hydro and AECL wanted this high performance and low cost. Generating Station A, Units 3 and 4 all components and supplies needed  By 1967, Ontario Hydro had gained for CANDU to be obtained on a Pickering A Nuclear-Electric five years of experience with NPD2 and competitive basis, and strongly Generating Station startup: 2000 MWe confidence with the design of Pickering supported competing Canadian The four 500 MWe Units in the Pickering Units 1 and 2. Also the NPPD designers suppliers. AECL was expected to A Nuclear-Electric Generating Station had matured as a result of the experience establish the heavy water supply and went into service as follows: Unit 1 in July 1971; Unit 2 in December 1971; Unit 3 in June 1972; and Unit 4 in June 1973. The commissioning of all four units at Pickering A proceeded with outstanding success.

To put this major nuclear achievement into perspective, Pickering A was generating more power than Ontario Hydro was generating at Niagara Falls. During the six-year period from 1971 to 1977, the four commercial units at Pickering A continued to operate at high capacity. The total cost of producing electricity in this first CANDU commercial station was lower than the total cost of the largest coal-fired stations in Ontario Hydro.

In 1952, nuclear-electric generation was an unproven promise. In 1957, the CANDU concept was developed. In 1977, the economic commercial achievement of CANDU was realized. When Harold Smith and his team first developed the CANDU concept in 1957, Smith suggested economic success would be achieved by the second commercial nuclear station. However, economic nuclear-electric Research activity at the NRU in Chalk River National Laboratories generation was achieved in this first

CANADIAN NUCLEAR ASSOCIATION 2010 commercial nuclear-electric generating with the turbine-generator suppliers end of the Second World War in 1945 station. During the six-year period, (both British and U.S.). The operators to 1990, there was a very large increase from Pickering A’s first unit startup in also held annual performance reviews in the demand for electrical energy 1971 to 1977, the station’s performance with major steam generator suppliers in Ontario. In 1990, a large economic was excellent in terms of the five (Canadian). depression took place. From 1990 to fundamental objectives: cost, reliability, 1996, the demand for electrical energy employee safety, public safety and envi- (E) Ontario Hydro dropped a small amount. From 1996 to ronmental protection. Commercial Nuclear Stations 2004, a slow growth in electrical energy Introduction demand resumed. During the period Some members of the general public Figure E14 shows the delivery of from 1958 to 1990, there was a steady may view 25 years (1952 to 1977) as electrical energy to industrial, growth in all three end-use energy a long time to develop the nuclear commercial and residential consumers sectors (residential, industrial and option from a promise to an economic in Ontario during the period from 1958 commercial). From 1990 to 2004 the commercial reality. However, from an to 2004, expressed in GWh. From the demand for the industrial sector and engineering point of view, 25 years is a short time to achieve economic Figure E1 nuclear-electric generation. Most other energy options had been developed over a period of centuries.  Problem-solving at nuclear generating stations Utilities throughout the world have all experienced major problems with generating units. Many problems occurred when the units were being commissioned. Many problems occurred during the first few years of service (infant mortality) and some problems occurred as a result of aging components (erosion, corrosion, stress cracking, etc.).

Certainly, the NPD2 (20 MWe demon- stration) and the Douglas Point (200 MWe prototype) had many problems. This was not a surprise. After all, Figure E2 we expected to learn by identifying and solving problems. Most of the early problems were resolved by the operations staff and the manufactur- ers who had designed and supplied the plant components. In other cases, the operators had to engage the designers and research support to resolve problems. Certainly there were healthy debates and differences of opinion between functions (design versus research) and within functions (different designers in the same orga- nization). Most, but not all, of these differences were constructive and led to better solutions. For major suppliers, the operating staff conducted annual reviews. For example, the operating staff had annual performance reviews

4 Figure E1 – Electricity Demand in Ontario – A Retrospective Analysis – Prepared for Ontario Power Authority – ICF Consulting, Toronto, Ontario.

Nuclear Canada Yearbook 2010 29 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 29 for the residential sector changed very Figure E3: little, but the energy demand for the Ontario Electric Generation: Percentage Electrical commercial sector continued to grow. Energy Contribution — Resources Figure E25 shows the source of electrical Year Nuclear Hydro Coal Oil & Gas Other energy generated from 1958 to 2004 in 2004 40 25 25 9 < 1 GWh. Figure E2 shows that the limited 2005 51 23 19 7 <1 supply of available economic hydro- energy generation met a small part 2006 54.1 22.3 16 6.5 1.1 of this large increase in demand. The 2007 51 21 18 8 2 development of economical nuclear- 2008 53 24.1 14.5 6.9 1.5 electric energy generation for base load application met most of the base Figure E4A 6 load growth. Figure E3 shows the Ontario Hydro Nuclear-Electric Generating Stations — 1964 to 1993 percentage contribution of each type Sites, Units, Nominal Capacity and In-Service Dates of generation from 2004 to 2008. For the period from 1970 to 2010 , Ontario Design Site Station Unit Net In-Service was a significant exporter of electricity Series Capacity Date which is not reflected in these Figures. MWe It should be noted though that in the 1 Lake Ontario (Pickering) Pickering A 1 515 1971 Jul 29 period 1997 to-2003, while some units 1 2 515 1971 Dec 30 were in lay up, imports of up to 7% 1 3 515 1972 Jun 1 per annum were necessary to meet domestic demand. 1 4 515 1973 Jun 17 2 Lake Huron (Bruce) Bruce A 1 848 1977 Sep 1 The peak electrical load, expressed as 2 2 848 1977 Sep 1 capacity in GigaWatts (GWe), in Ontario grew from about 2 GWe in 1945 to 2 3 848 1978 Feb 1 about 23 GWe in 1990. In other words, 2 4 848 1979 Jan 18 the Ontario demand capacity in 1990 1 Lake Ontario (Pickering) Pickering B 5 516 1983 May 10 was about 10 times larger than in 1945. The Ontario Hydro generating capacity 1 6 516 1984 Feb 1 grew to meet this large growth in load. 1 7 516 1985 Jan 1 The Canadian nuclear infrastructure 1 8 516 1986 Feb 28 established between 1952 and 1977 continued to be utilized and expanded 2 Lake Huron (Bruce) Bruce B 6 860 1984 Sep 14 to achieve the desired results. Ontario 2 5 860 1985 Mar 1 Hydro and AECL expected that some 2 7 860 1986 Apr 10 problems would occur due to erosion, 2 8 860 1987 May 82 corrosion and wear as a result of the aging of the nuclear-electric generating units. 2 Lake Ontario (Darlington) Darlington 2 881 1990 Oct 9 2 1 881 1992 Nov 14 Nuclear program steady 2 3 881 1993 Feb 14 except for economic upsets The expansion of nuclear generation 2 4 881 1993 Jun 14 in Ontario was generally orderly. Total 14,480 However, there were some economic upsets during the 1970s and the 1980s large-scale pressure tube replacement early 1980s as the result of a mild with some economic consequences. process in the early 1970s. However, Canadian economic recession. The  the extreme inflation during the recruitment of nuclear operations staff The assumed 15-year lifetime of 1970s imposed a knee-jerk pressure on by Ontario Hydro operations branch pressure tubes suggested pressure Ontario Hydro and further develop- to meet the needs for commission- tube replacement might occur about ment of pressure tube replacement ing and operations of nuclear projects 1986. Accordingly, Ontario Hydro was suspended in 1976. Another knee- under construction was temporarily initiated a program to develop a jerk pressure developed in the suspended and the construction of

5 Figure E2 – Electricity Demand in Ontario – A Retrospective Analysis – Prepared for Ontario Power Authority – ICF Consulting, Toronto, Ontario. 6 Figure E3 – Pierre Charlebois, e-mail to Lorne McConnell, January 27, 2010.

CANADIAN NUCLEAR ASSOCIATION 2010

Darlington A was delayed. In 1983, the Figure E4B pressure tube replacement program resumed after a pressure tube failed CANDU Acquisition in Pickering 2. In the mid-1980s Can. Ont. Foreign the Ontario electric load growth Govt. Govt. Canadian Industry resumed and reached an all-time high Authorities Authorities growth rate expressed in Megawatts per annum. In 1990, a more serious economic recession occurred.

The purposes of this section are: • to list the five Ontario Hydro AECL OH commercial nuclear-electric gen- Canadian Industry erating stations that contain 20 large Leaders Leaders nuclear-electric generating units, which were committed and brought into service in the 29-year period between 1964 and 1993. (Note: After the Ontario government terminated Competitive Ontario Hydro in 1999 and replaced it with successor organizations, no additional nuclear-generating units were committed or built); Comp. • to review the organizations and responsibilities for the acquisition and $ operation of the five Ontario Hydro nuclear-electric generating stations; • to present a description of all Non Canadian Industry Can. Doers the nuclear generation cost com- Doers ponents; and Industry • to present the total 1988 Levelized * There are few or no elected Doers – AECL (Monopoly) Doers – USA Unit Energy Cost estimate for persons in the federal and Britain

electricity for a nuclear generating (Monopoly) Doers – Ontario Hydro Ontario government that Other station. recogize the achievements $ $ of AECL and Ontario Hydro In section F of this paper, the actual costs • AECL is on the ropes and estimated costs of Ontario Hydro • Ontario Hydro is gone electricity up to 1988 are discussed and compared with other countries. Canadian Nuclear Infrastructure

Five commercial nuclear establishment of competing organiza- It became clear that very few such generating stations tions to design and/or supply nuclear generating stations would be required Figure E4A7 lists the five Ontario steam supply systems and/or nuclear- in Canada. Harold Smith concluded Hydro commercial generating stations, generating stations. that Canada was too small to support which contain 20 large nuclear-electric two or more competing organi- generating units. The in-service date of Acquisition of the five stations zations to design and/or supply each unit is shown. By 1957, the System Planning Division nuclear steam supply systems and/ of Ontario Hydro had convinced or nuclear generating stations. Figure During the period from 1900 to 1950, Harold Smith that for nuclear- E4B illustrates the Canadian Nuclear Canada had brought a very large electric generating units in Ontario Infrastructure (1957 to 1990). number of electricity generating units to be competitive, units of 500 MWe into service. They were typically 30 or larger would be required. System During the 1950s, Sir Christopher MWe or smaller. In 1952, AECL and Planning also emphasized the cost Hinton played a major role in estab- Ontario Hydro assumed that a nuclear- savings that could be achieved in lishing competing nuclear power plant electric program would require the building multi-unit generating stations. suppliers in Britain. In 1968, Hinton

7 Figure E4A – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988.

Nuclear Canada Yearbook 2010 31 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 31

Figure E5 in Canada (AECL) have faced problems during the past 20 years because of the few new nuclear generating stations required.

In 1957, the Canadian nuclear program assumed there would be one publicly owned nuclear supply system organi- zation called the Nuclear Power Plant Division (NPPD) of Atomic Energy of Canada. However, to minimize capital cost, Ontario Hydro and AECL agreed that all or most of the components and supplies needed to build nuclear stations would be acquired through competing private enterprise. Thus, the cost of nuclear stations is primarily from competing private enterprise managed through public enterprise. For Ontario Hydro’s five commercial nuclear electric generating stations, Ontario Hydro managed the acquisition and construction, and retained AECL to design the nuclear steam supply. With few exceptions, most of the required components and materials Figure E6 were obtained through competitive supply. Furthermore, as a matter of policy, competing Canadian suppliers were developed to supply the CANDU components and nuclear fuel. The same team managed major modifications and retubing. Ontario Hydro Operations managed and performed the commis- sioning and operations of all the Ontario Hydro nuclear stations.

By 1990, Ontario Hydro and France had the lowest nuclear-generated electricity costs in the world. Information to support this claim is presented in Section F of this paper.

The Bruce Generating Station A was committed before the startup of Pickering A. The Bruce A units came into service in the late 1970s. Pickering A’s Units 1 and 2 were funded by Ontario Hydro, the federal and Ontario governments. expressed his view to Ontario Hydro (Framatome) and EDF (France’s During the period from 1964 to 1993, that Canada had adopted the best Electrical Utility) became the largest Ontario Hydro funded the other 18 approach for the design and supply generator of economic electricity in large nuclear units: of nuclear power plants in Canada. the world, utilizing nuclear energy. • Pickering Generating Station A: two Also, France changed its approach to Even one single supplier in France additional 500 MWe units on Lake a single nuclear power plant supplier (Framatome) and one single supplier Ontario;

CANADIAN NUCLEAR ASSOCIATION 2010

Figure E7: FUTURE 4 X 881 MWe CANDU Station Levelized Unit Energy Cost (LUEC) — 1988 Cents per kWh (C/kWh) Existing Site (SE) New Site (SE) Existing Site (D&A) New Site (D&A) Cost Components C/kWh % C/kWh % C/kWh % C/kWh % Capital Initial Capital Dry Capital 1.443 49.8 1.582 49.4 1.453 41.5 1.574 42.6 Heavy Water 0.050 1.7 0.050 1.6 0.261 7.4 0.262 7.1 Fuel 0.003 0.2 0.007 0.2 0.011 0.3 0.011 0.3 Commissioning 0.071 2.4 0.073 2.3 0.074 2.1 0.076 2.1 Capitalized 0.030 1.0 0.034 1.1 0.060 1.7 0.065 1.9 Training Subtotal 1.601 54.2 1.746 54.6 1.859 53.0 1.988 53.8 LSFCR 0.078 2.6 0.078 2.4 0.078 2.2 1.988 2.1 Capital 0.239 8.1 0.239 7.5 0.240 6.8 0.240 6.5 Modification Decommissioning 0.035 0.8 0.025 0.8 0.025 0.7 0.025 0.7 TOTAL CAPITAL 1.943 65.7 2.088 65.3 2.202 62.8 2.331 63.0

OM&A Partial OM&A Direct OM&A 0.571 19.3 0.632 19.9 0.678 19.3 0.717 19.4 Training 0.075 2.5 0.088 2.8 0.084 2.4 0.091 2.5 Subtotal 0.646 21.9 0.725 22.7 0.762 21.7 0.808 21.8 Heavy Water Upkeep Loss Makeup 0.004 0.1 0.004 0.1 0.025 0.7 0.025 0.7 Upgrading 0.008 0.3 0.008 0.3 0.009 0.3 0.009 0.2 Tritium Removal 0.000 0.0 0.021 0.7 0.005 0.1 0.023 0..6 Subtotal 0.012 0.4 0.033 1.0 0.039 1.1 0.057 1.5 TOTAL OM&A 0.658 22.1 0.758 23.7 0.801 22.9 0.965 23.4 Fuelling Fuel Acquisition Mining/Milling 0.101 3.4 0.101 3.2 0.158 4.5 0.158 4.3 Conv/Refin/Fab 0.101 3.4 0.101 3.2 0.103 2.3 0.103 2.8 Subtotal 0.202 6.8 0.202 6.3 0.261 7.4 0.261 7.1 Used Fuel Disposal Transportation 0.021 0.7 0.021 0.7 0.029 0.0 0.029 0.8 Repository 0.131 4.4 0.131 4.1 0.212 6.0 0.212 5.7 Subtotal 0.152 5.1 0.152 4.8 0.241 6.9 0.241 6.5 Total 0.354 12.0 0.354 11.1 0.502 14.3 0.502 13.6 Fuelling TOTAL cents per kWh 2.955 100 % 3.200 100 % 3.505 100 % 3.698 100 %

Nuclear Canada Yearbook 2010 33 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 33

Figure E8 The full life-cycle costs of the CANDU Figure E710 is a table showing the option include all costs attributable to Levelized Unit Energy Cost components the facility from its initial design and for a future 4x881 MWe CANDU station construction through its lifetime to in Ontario expressed in 1988 dollars. its decommissioning and dismantle- ment. These life-cycle costs include It should be emphasized that the all the direct costs associated with capacity factor is the single largest factor the engineering, construction and that influences electricity cost. Figure operation of the plant as well as all E811 shows a sensitivity analysis of how the indirect costs such as overheads Levelized Unit Energy Cost varies with that are associated with carrying out Capacity Factor. This sensitivity analysis these activities. For example, where does not include the large additional you see the capital cost component costs required to back up a low-capacity called LSFCR, this means Large Scale generating unit. Fuel Channel Replacement. Some cost component information is presented in (F) Conclusions — Section F of this paper. Hindsight View from 1989 Introduction Another important cost component is the In this section, evidence is presented capital cost of a nuclear station (measured that in 1988 the cost of electricity in Canadian dollars per kilowatt). Figure generated in Ontario Hydro nuclear- E69 shows capital cost of the 5 Ontario generating stations was amongst the • Bruce Generating Station A: four Hydro nuclear stations versus all USA lowest in the world. 850 MWe units on Lake Huron; nuclear generating stations. The data • Pickering Generating Station B: four shown beyond 1989 is forecast and not Ontario Nuclear Cost 500 MWe units on Lake Ontario; actual data. Inquiry (ONCI): 1988 • Bruce Generating Station B: four In 1988, the Ontario government 850 MWe units on Lake Huron; Estimated total unit energy cost for created an independent panel of both • Darlington Generating Station A: four new stations (1988 dollars) Canadian and international experts 850 MWe units on Lake Ontario. The following estimates were based to conduct a review process called upon Ontario Hydro’s cost experience the “Ontario Nuclear Cost Inquiry.” In summary, the Ontario Hydro nuclear- with four previous commercial nuclear- The ONCI review panel included a electric program included a total of 20 electric generating stations already chairman, two members, two advisors large nuclear-electric generating units built and placed in service. and two support staff. in five generating stations located at three sites. The Levelized Unit Energy Cost, Ontario Hydro created a six-member  expressed in 1988 cents per kWh for ONCI Task Force to prepare and present The installed nominal nuclear capacity planning purposes, was: (a) actual cost experience and (b) of 14,480 MWe was approximately • The Levelized Unit Energy Cost planning costs. This Ontario Hydro Task equivalent to eight times the Ontario for System Expansion (SE) at an Force had seven support staff, 11 major Hydro capacity of Niagara Falls. existing site LUEC(SE) was 2.96 contributors and 34 noteworthy contribu- cents per kWh; tors. All of the presentations made by Nuclear-generated electricity • The Levelized Unit Energy Cost the Ontario Hydro ONCI Task Force are cost components for System Expansion at a new site documented in a report called “Ontario The cost components of electricity LUEC(SE) was 3.29 cents per kWh; Hydro Presentations to the Ontario generated from nuclear energy are • The Levelized Unit Energy Cost Nuclear Cost Inquiry — November 1988.” shown in Figure E58. using Direct and Allocated (D&A) costs for a station at an existing site ONCI Report: January 1989 To fairly compare the electricity costs LUEC(D&A) was 3.51 cents per The ONCI panel submitted its report to of available options requires that the kWh; and the Ontario Minister of Energy in January life-cycle costs of each option be estimated. • The Levelized Unit Energy Cost 1989. In essence the ONCI panel endorsed The accuracy of such estimates depends using Direct and Allocated costs for the cost data they reviewed and made upon the availability of actual costs, if any, a station at a new site LUEC(D&A) valid observations about the accuracy. The for the option being considered. was 3.70 cents per kWh. ONCI panel also made a comparison of

8 Figure E5 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988. 9 Figure E6 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988. 10 Figure E7 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988. 11 Figure E8 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988.

CANADIAN NUCLEAR ASSOCIATION 2010

Ontario Hydro costs with reported data Canada regarding (a) hydro generation Soundness of the CANDU concept from other countries (UNIPEDE). This and (b) fossil generation. This naturally Ontario Hydro committed and placed comparison was for the Levelized Unit begs the question: “Why have Ontario into service five commercial generating Energy Cost (LUEC) for base load. All Hydro costs been the lowest or among stations containing 20 nuclear- costs were converted to cents per kWh the lowest in the world?” electric units located on three sites in (Canadian). All costs were adjusted to the 29-year period from 1964 to 1993. costs corresponding to a new site.12 The following refers only to the nuclear option although similar reasons exist for The basic concept of CANDU in 1957 Ontario Hydro 2.31 hydro and fossil fuel options. (This author did not radically change in subsequent Federal Republic of Germany 3.71 is not qualified to speak about nuclear years to 1993. Belgium 2.72 costs in Ontario from 1990 to 2010.) In Spain 3.99 the opinion of this author (based upon As of 1993, the 20 commercial units of France 2.53 selected views of other people), the low Ontario Hydro had two design series: Italy 3.79 cost of electricity produced in Ontario Series 1 was eight units with a nominal Japan 4.03 Hydro nuclear-electric generating sta- capacity of 500 MWe each; and Series 2 Netherlands 3.36 tions up to 1989 can be attributed to the was 12 units with a nominal capacity of United Kingdom 3.47 following factors: 850 MWe each. Switzerland 3.83 • soundness of the CANDU concept; • within limits, large nuclear-electric Series 1 includes eight standardized In this table it should be noted that units are more economic than small units on one Pickering site. The two Ontario Hydro had the lowest cost. units; stations are Pickering A (four units) However, the report emphasized “that • high level of standardization of and Pickering B (four units). The cross comparison between countries design and operation; eight 500 MWe units are contiguous is sensitive to uncertainties about • very large Ontario Hydro com- and occupy one continuous building. exchange rates.” The ONCI panel went mercial nuclear program; These eight units share one vacuum on to say: “It is clear that Ontario Hydro • acquisition process for new nuclear containment system. However, Units cost is in the lower range of interna- plants tailored to Canada’s ability; 1 and 2 originally had zirconium alloy tional costs with an order of magnitude • high Canadian competitive (zirconium and tin) pressure tubes similar to French and Belgium ones.” acquisition of components and fuel and the other six units had zirconium for nuclear-generating stations; niobium pressure tubes. The ONCI panel made a further • effective Ontario Hydro funding comparison between Ontario Hydro process; Series 2 includes 12 850 MWe stan- and France in respect to the siting of • excellence in operator recruitment dardized units in three four-unit nuclear-generating stations. and training; and stations located on two sites — Bruce • high utility performance in design, con- A and Bruce B are on one site, and France Separated 2 units/ Cooling struction, research and operations. Darlington A on the other site. Each Units site Tower Ontario Multi- 4 units/ Direct Figure F1 units site Cooling

The panel reported that if corrections were made for the superior siting in Ontario, the comparison of costs would be the same; France would be 2.33 cents/kWh and Ontario would be 2.31 cents/kWh.

Reasons for low cost of nuclear- generated electricity: 1989 The delivered cost of electricity to consumers in Ontario has typically been below the average cost of electricity delivered to consumers in the U.S. Also, Ontario Hydro costs have been typically equal or lower than other utilities in

12 Ontario Nuclear Cost Inquiry – Report to Minister of Energy (Ontario), January 1989. Ralph Brooks and Howard Bowers.

Nuclear Canada Yearbook 2010 35 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 35

Figure F2

of these three generating stations has steam energy is converted into permits high uranium burn-up and one vacuum containment system. The mechanical energy; low fuelling cost; reactors all have zirconium niobium • the GENERATOR is the fourth stage • the heavy water moderator is pressure tubes. of energy conversion in which the contained in a horizontal tank mechanical energy is converted into called a calandria, which operates at The following is an update of the electrical energy at relatively low low pressure and low temperature so CANDU-PHW concept corresponding voltage; and there are no worries about pressure to Series 2 of Ontario Hydro. • the TRANSFORMER is the fifth vessel failure; stage, which steps up the voltage • pressure tubes are horizontally The CANDU concept features five stages to high voltage and delivers the arranged in the horizontal reactor. of energy conversion (See Figure F1):13 electrical energy into the high These tubes are made of neutron • the REACTOR is the first stage of voltage transmission system. transparent zirconium niobium energy conversion. The nuclear alloy; energy in the nuclear fuel is The major features of the CANDU • the design is forgiving because converted into heat energy; reactor are (See Figure F2):14 it provides for the assumption • the BOILER, or Steam Generator, • the natural uranium oxide fuel is that pressure tubes and all other is the second stage of energy in the form of short bundles and components will fail infrequently conversion in which the heat energy is manufactured with high quality without undue public risk; is converted into ordinary steam at low cost in a process that is semi- • the heat transport system also uses energy; automated (See Figure F3);15 heavy water, which is pumped • the TURBINE is the third stage • the highly efficient (low neutron through the pressure tubes and of energy conversion in which the absorption) heavy water moderator transports the heat produced in the

13 Figure F1 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988. 14 Figure F2 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988. 15 Figure F3 – Ontario Hydro Presentations to the Ontario Nuclear Cost Inquiry – November 1988.

CANADIAN NUCLEAR ASSOCIATION 2010

fuel to the boiler (steam generator). Figure F3 The design and operation assumes heavy water leakage may occur. Liquid and vapour recovery systems ensure low heavy water cost during operation; and • fuelling machines are provided, which permit the fuel to be changed while the reactor is operating at full power. No shutdowns are required to change fuel, which increases the capacity factor and lowers the total energy cost.

The following are comments about regulating, protective and emergency systems: • the regulating system used to control the reactor in normal operations is separate from the protective systems, which detect and respond to abnormal situations; • the design of the reactor and the characteristics of the material result in basic physical limitations on the rate at which the power can be Heavy water is pumped through the future station corresponds to a 40-year changed; pressure tubes to transport the heat station lifetime. • each reactor has two independent from the fuel bundles to the boilers shutdown systems; (steam generators). Sensitivity analysis has been used to • all protective circuits are tripli- calculate the Levelized Unit Energy Costs, cated. An appropriate control action The CANDU concept features replace- assuming the lifetime of the reactor and results whenever any two of the able pressure tubes. Full-scale replace- pressure tubes is both higher and lower three indicate an abnormality. This ment of pressure tubes has been than the basic planning values. concept ensures high safety and successfully performed. high capacity factor; and Within limits, large nuclear-electric • other safety features include Containment (see Figure F1) units more economic emergency cooling and emergency The reactor and associated systems are Consider building one 800 MWe unit injection. contained in a sealed reactor building. versus eight 100 MWe units. In Ontario, The reactor buildings are connected to the total unit energy cost of one 800 Simplified flow sheet a vacuum building. In the event of an MWe unit will be much lower than the The flowsheet in Figure F2 illustrates accident that results in steam release, eight 100 MWe units. The costs of sites, the CANDU concept on which Bruce the steam passes to the vacuum building design, construction and operations A, Bruce B and Darlington A nuclear where it is condensed. Following such will all be lower for the single large unit. stations are based. an accident, there is no positive pressure The reactor consists of the following: and the radioactivity is contained. Consider building one 2000 MEe unit • a horizontal tank called the versus two 1000 MWe units. In this calandria; CANDU lifetime case the 2 unit station will have a lower • four of the 480 pressure tubes When the CANDU-PHWR was conceived total unit energy cost. Industry does are shown; in 1957, the reference economic station not have the current ability to deliver • 13 fuel bundles are in each lifetime was assumed to be 30 years. The all components for a 2000 MWe size pressure tube (four are shown) reference pressure tube lifetime was and such a large size would require a (see Figure F3); assumed to be 15 years, requiring one very large research and development • heavy water moderator in the retubing after 15 years. For planning program. Although larger size will calandria; and purposes, the pressure tube lifetime usually lower cost, there is an upper • the calandria operates at low of a new station is now assumed to be limit in size available in any given pressure and low temperature. 30 years, while the base estimate for a year. Also unit sizes in every utility are

Nuclear Canada Yearbook 2010 37 Why Ontario Generates So Much Electricity From Nuclear Energy

Continued from page 37

Figure F4 (eight times the capacity of hydro generation at Niagara Falls).

Multi-unit concept Compared with utilities around the world, Ontario Hydro enjoyed a siting advantage because of the Great Lakes. This permitted Ontario Hydro to not only build large units, but also to build multi-unit stations with direct water cooling. This is one of the reasons that costs of nuclear energy in Ontario have been a little lower than France up until 1990.

Acquisition process for a new nuclear plant The merits of the one concept—one organization approach (with competitive supply) were presented in Section E of this paper.

Competitive supply of plant components and fuel further limited by total system reliability equipment and supplies. For example, A large country like the United States considerations. the turbine-generator for the Bruce A can afford to have competing organiza- supply may be a different supplier than tions for the design and/or supply of The large size of units built in Ontario for Darlington A. Therefore, two power large power plants. To maximize industry has been a major factor in keeping plants are rarely identical in design. within Canada, we must be much more Ontario Hydro rates lower than the U.S. careful in the selection of what we do and average (see Figure F4).16 Many of the Car manufacturers may have nearly 100% how we do it. Although, Ontario Hydro small private utilities in the United States standardization and produce thousands of was managed through public enterprise, must install much smaller units. The low cars. For power plants, however, complete the costs have been maintained at a low costs in France also depend upon the standardization is more difficult to achieve. level because most of the material and large units that were built there. equipment in Ontario Hydro plants have In the case of Ontario Hydro, con- been procured through a competitive High level of standardization siderable savings were achieved by private enterprise process. Most of Standardization is a well known con- standardizing both the 12 units at Bruce Ontario Hydro expenditures are through cept to reduce costs. On a given site, A, Bruce B and Darlington, and the eight private enterprise (more than 70%). building two generating units rather units at Pickering A and Pickering B. However, few or no private utilities have than one generating unit results in a had lower operations and maintenance substantial savings. In the case of the Very large commercial nuclear program costs than Ontario Hydro. Ontario Hydro nuclear program, the Nuclear programs have fixed costs Series 2 standard covered the 12 units that are independent on the size of Funding of capital for power plants of Bruce A, Bruce B and Darlington A. the program (utility), and variable If the owner of a utility is a private On the other hand, engineers are very costs that are proportional to the size company, funding of new projects can creative people and are always looking of the program. A large program will be done by financing through the issue for ways and means to lower costs and enjoy a lower unit energy cost than a of company shares or funding through to improve efficiency. Thus, there small program, for example, in areas bonds (debt). The electricity consumer is a balance that has to be achieved of research and development to solve must pay for depreciation of the asset, between standardization savings and major problems, or in staff required must pay dividends to the sharehold- savings through creative ideas. to make major modifications to several ers and must pay for interest on the units of the same design. debt. For a public company such as In the case of power plants, there Ontario Hydro, which does not receive is a strong desire to minimize costs By any standard, the Ontario Hydro any taxpayer support, the funding is by getting competitive tenders for nuclear program is a very large program done through issue of bonds (debt).

16 Figure F4 – Ontario Hydro 25 Year Demand/Supply Report – 1990 to 2014.

CANADIAN NUCLEAR ASSOCIATION 2010

The funding costs of Ontario Hydro The following are major achieve- The CANDU concept is tailored to have been much lower than for most ments other than the five basic energy Canadians, uses Canadian resources companies in North America, and no objectives: and provides jobs to Canadians. profit has to be paid in the form of • it is my opinion that the pressurized dividends. This funding advantage has water reactor (PWR) concept (adop- Re-establishing capability helped Ontario Hydro minimize its ted in most countries), which requires This paper has focused on 1942 to 1977, total energy costs. enriched uranium, is a good nuclear the period during which the CANDU was concept, but the CANDU concept developed and became commercially Recruitment and training is better tailored to providing jobs competitive. Some information also was The creation of the nuclear option in Canada; presented about the commitment, con- in Ontario from 1952 to 1977 and • the detailed design of all the nuclear struction and excellent performance the rapid building of 20 commercial reactors for Ontario Hydro was of the first four commercial reactors in nuclear units from 1964 to 1993 performed by Canadians; Ontario. The two nuclear utilities with required the establishment of a • most of the major components other the lowest total energy cost in the world large number of qualified managers, than the reactors were designed and were Ontario Hydro and EDF in France. supervisors, operators and maintainers. manufactured by Canadians. One The Canadian labour market did not major exception was that the steam The acquisition of the five Ontario possess such staff with the requisite turbine-generators were designed Hydro nuclear stations was achieved knowledge of nuclear reactors. and manufactured in other countries through the former Design and  (Britain, the U.S., etc.). A second Construction Branch of Ontario Hydro As part of the necessary nuclear infrastruc- exception is the supply of zirconium and the Nuclear Power Plant Division ture, Ontario Hydro established training from the U.S; of Atomic Energy of Canada Limited. courses and nuclear training centres to • all of the nuclear fuel is being manu- recruit and train the necessary staff. This factured in Canada on a competitive It is with pride and recognition of the was done carefully and efficiently so that basis; many men and women of the nuclear all of the commercial nuclear stations are • most of the capital cost was achieved industry in Canada that we look forward manned with competent staff. through Canadian labour; to the future of Canadian nuclear • the natural uranium fuel is indigenous technology. n High utility performance to Canada. Canada does not have Sir Adam Beck established Ontario Hydro enrichment capacity and these reactors so that it would be run by professionals do not need enriched uranium. (not elected people). Electric utilities worldwide continue to be monopolies. In contrast, the largest cost for coal-fired Ontario Hydro has always been willing generation in Ontario Hydro was for to buy electricity generation from any coal procured from the United States. non-utility generator if the cost is lower The second major benefit from the than its own generation cost. The con- CANDU program is that the nuclear struction costs and the operating costs of option kept the delivered cost of Ontario Hydro have been amongst the electricity in Ontario below the lowest in the world. average delivered cost of electricity in the U.S. This kept Ontario industry Although Ontario Hydro was a monopoly, in a competitive position insofar as it wanted to be a high performance utility. electricity was a factor. Accordingly, it made regular comparisons of its performance (five basic objectives) Conclusion with other utilities throughout the world. Canadians in Ontario committed, As a result, Ontario Hydro maintained a built and operated nuclear-electric high performance in respect to design, generating stations, which now provide construction, research, planning and about 50% of the electricity in Ontario operations. using uranium, which is a Canadian resource. Ontario social achievements: CANDU In addition to the five basic objectives, In 1989 the CANDU concept provided key authorities and key leaders had operating and planned electric power other considerations that influenced in Ontario equivalent to eight Niagara decisions. Falls, at the lowest cost in the world. RAPS 1 control room

Nuclear Canada Yearbook 2010 39