Nuclear power generators to get tax breaks

John Spears
Toronto Star
July 8, 2003

Refurbished nuclear generators will qualify for tax breaks available to clean and green energy producers, the Ontario government has announced.

Privately owned Bruce Power and publicly owned Ontario Power Generation Inc., or OPG, were both hesitant yesterday to estimate the value of the tax breaks, which apply to facilities that aren’t yet producing power.

The tax breaks, which include a 10-year property tax holiday and sales tax rebates on materials used for clean, alternative or renewable energy sources, had been announced last November.

Yesterday, Agriculture Minister Helen Johns said some nuclear facilities will also qualify for the tax breaks. The tax breaks apply only to nuclear facilities scheduled to return to service after this year.

Bruce Power plans to return two mothballed reactors to service later this summer, and Ontario Power Generation is scheduled to return one reactor of its Pickering A station to service in August.

OPG spokesperson John Earl said the company assumes the unit due to return in August will not qualify for the tax breaks, but the other three Pickering A reactors would, if they return to service.

Bruce Power spokesperson Steve Cannon said the tax incentives would apply to two laid-up reactors at the Bruce A nuclear station.

Johns said in a news release that "anything that encourages industry to consider new generation opportunities can only be good for the people of Ontario."

Nuclear opponents disagreed.

Dave Martin of the Sierra Club of Canada said it’s "completely ridiculous" to regard nuclear power as clean. Nuclear facilities have leaked radioactive material and they produce dangerous radioactive waste and carry a risk of widespread radioactive release in the event of an accident, he said.

Norm Rubin of Energy Probe said it’s doubtful that the tax incentives announced yesterday would be enough to persuade investors to pour money into nuclear generators.

The move appears more as a political gesture, he said.

"I think there’s less here than meets the eye."

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