Nuclear power production: The financial costs. Background paper

For many years, the Canadian nuclear industry has priced itself on its ability to provide safe, reliable and low-cost electricity to consumers. While nuclear power has indeed proved to be a relatively safe generator of electricity, its performance with respect to reliability and cost has declined noticeably in recent years. This paper documents the deteriorating cost performance of the industry, in comparison with that of its traditional competitor in power generation. It also breaks down the total costs into its component parts, assessing the key factors underlying the trends that are worsening the competitive position of the industry: a rise in initial capital costs, unanticipated technical difficulties resulting in additional capital costs, and the increasing operating expenses associated with poorer-than-expected reactor performance. (author). 8 refs., 2 tabs., 1 fig