Nuclear adds to TransCanada’s Appeal

Article Excerpt

TRANSCANADA CORP. $36 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 536.3 million; Market cap: $19.3 billion; SI Rating: Above average) will take part in the expanded refurbishment of unit four of the ‘A’ section of Ontario’s Bruce nuclear power station. The $1 billion addition will bring the cost of the restart of the four units at the plant to a total of $5.25 billion, with TransCanada’s share now set at $2.625 billion. TransCanada holds a 48.7% stake in the partnership that is half way through the restart of the ‘A’ section of Bruce. The additional investment by TransCanada, Cameco and the other partners will extend the expected life of unit four from 2017 to 2036. The other three units are already scheduled to last until 2036. Bruce A now operates at 50% capacity, but should reach full capacity by 2010 when the restart of units one and two is complete. Demand for power in Ontario is growing strongly. While Bruce…