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Ontario Suspends Nuclear Procurement

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Ontario Suspends Nuclear Procurement

Queen's Park -- The Government of Ontario today announced that it has suspended the competitive RFP to procure two replacement nuclear reactors planned for the Darlington site.

Deputy Premier and Minister of Energy and Infrastructure George Smitherman indicated that the government remains committed to the modernization of Ontario's nuclear fleet.

"Emission-free nuclear power remains a crucial aspect of Ontario's supply mix," Smitherman said. "Unfortunately, the competitive bidding process has not provided Ontario with a suitable option at this time," he added.

Proposal submissions were received from AREVA NP, Atomic Energy of Canada Limited and Westinghouse Electric Company on February 27, 2009 and carefully evaluated. Only the submission from AECL was compliant with the terms of the RFP and the objectives of
the Government. However, concern about pricing and uncertainty regarding the company's future prevented Ontario from continuing with the procurement at this time.

In March 2008, Ontario undertook a two phase competitive procurement process to select a nuclear vendor to build a two unit nuclear power plant at Darlington. The units are to replace older units as part of a strategy to renew Ontario's nuclear fleet. Nuclear power
accounts for about 50 percent of Ontario's electricity needs and provides a reliable, stable and clean supply of base load electricity.

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