Darlington problems create more rate increase problems

Ongoing problems with the $14 billion Darlington nuclear generating station will lead to a 9.1% rate hike in 1993, the second major price hike by Ontario Hydro in two years. At Ontario Environmental Assessment Board hearings in Toronto last week, Hydro officials said the four reactors at Darlington may have to be shut-down for up to six months to correct problems encountered in the heat transport piping system. Such a delay could cost the utility about $500 million in interest costs and another $360 million in lost power production. Already, problems with the first two units - the first has been down since January 1991, the second since January this year - have cost Hydro $210 million in repair costs and lost production. Hydro is also having problems with its Bruce nuclear station, where Unit 2 has been out of service since last October and will likely remain down for most of this year. To help defray those costs, the utility wants to raise its 1993 rates for large industrial customers and municipalities by 9.1% and its rates for rural customers by 6.6%. Both hikes would have been higher, but Hydro says it will access its cash reserves to mitigate the soften the increases. The Ontario Energy Board will consider the proposed 1993 rate hike at public hearings which begin in June, but has no authority to force rate changes. The rates will be set next fall