[cdn-nucl-l] RE: Confusion on Darlington's history

["FRASER Peter, IEA/LTO" <Peter.FRASER@iea.org>]

Jeremy:

The interest included in the capital cost of Darlington is the interest
during construction only. That is, Hydro borrowed the money over several
years during the period of construction to pay for building the plant.  It
then had to borrow more money to pay for the interest due on the money it
had already borrowed.  That interest during construction amounted to roughly
40% of the total capital cost of Darlington.  Once the plant was declared
in-service, Hydro still had to make interest payments on the entire amount
borrowed (i.e., the $14+ billion), but now was in a position to start paying
down the principal as well (2.5% annually).  As you can imagine, these
interest payments over the life of the plant will be the plant's greatest
single expense, and will greatly exceed the $5 billion or so of interest
added to the capital cost.