Cost Overruns
To most Ontarians, the Darlington station is associated with the massive cost overruns incurred during its construction. The initial cost estimate for the station was $3.9 billion CAD in the late 1970s, while the final cost was $14.4 billion CAD. The project was adversely affected by declining electricity demand forecasts, mounting debt of Ontario Hydro, and the Chernobyl disaster which necessitated safety reviews in mid-construction. Each delay incurred interest charges on debt, while ultimately accounted for 70% of the cost overruns. Inflation during 1977 to 1981 was 46 percent, according to Canada's Consumer Price index. In addition interest rates were running at 20 percent. A quarter of the costs were attributable to other errors. Improper choice of equipment and a six-month labour stoppage of electrical workers yielded further costs and delays. A year-long period of public hearings and study by an Ontario government all-party committee finished in 1986 with the decision to proceed with the project, which had then risen to $7 billion in actual and committed costs. Discussion of who is to blame for the costs and subsequent debts associated with Darlington often arise during provincial election campaigns, and are often mentioned in anti-nuclear literature.
Read more about this topic: Darlington Nuclear Generating Station
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