Atomic Energy of Canada Ltd. has informed the New Brunswick government and NB Power that the $1.4-billion refurbishment of the Point Lepreau Nuclear Generating Station is another year behind schedule.

Gaëtan Thomas, CEO of NB Power, said he's 'very disappointed' in the latest delays at the Point Lepreau nuclear reactor. (CBC)

Gaëtan Thomas, president and chief executive officer of NB Power, confirmed the further delay on Friday.

"Needless to say, we are very disappointed to have this latest delay in the completion of Phase 2 of the Point Lepreau refurbishment confirmed by AECL," Thomas said.

Provincial Energy Minister Jack Keir said the best-case scenario now is a completion date in October 2011, with NB Power needing a further four months after that to get the power plant back to generating electricity.

"That's the best case, and so ya'll can do the math," he said, adding that it could be even longer.

It's costing New Brunswick close to an extra $1 million a day for replacement power and other costs while the reactor remains offline.

Under the original plan, the Point Lepreau reactor refurbishment was supposed to be finished last Sept. 30, but AECL, the federal Crown corporation, ran into delays.

Until Friday, the most recent timeline said the reactor would be finished this October and ready to operate next February.

Mediation requested

The New Brunswick government is now asking Ottawa to agree to mediation on the cost overruns.

Energy Minister Jack Keir says the province will try to get more money out of Ottawa to cover costs arising from the delays. (CBC)

Keir said in a news release that a mediation process should be used "to determine a fair outcome for the ratepayers of our province."

The federal government committed to paying late penalties in the project's contract, but the province wants them to go beyond that.

Keir said the proposed process would be conducted on a "without prejudice" basis, with both governments retaining the right to accept or not accept the results.

Thomas said the lengthy delay in getting Point Lepreau back on line has placed an enormous burden on NB Power, and Keir said the province's ratepayers "should not have to bear the financial burden of AECL's learning curve" as it tries to complete the first refurbishment of its kind.

The corporation is running into problems as it installs the reactor's calandria tubes, which contain pressure rods that hold uranium fuel bundles.

Election hot potato

The new delay comes just as the campaign for the Sept. 27 provincial election starts up. The Liberals were quick to point out that the contract with AECL for the refurbishment of Point Lepreau was signed by the Progressive Conservative government of Bernard Lord in 2005.

PC Leader David Alward, who was a member of Lord's cabinet at the time of deal, countered that both parties were in favour of the refurbishment then.

Alward told CBC News he is concerned about the latest delay. The Tories have been pushing for months for a committee of the legislature to oversee the refurbishment, he said.

"We haven't been fear-mongering," he said. "The issues that we have brought forward are true, they are real."

Alward said it's clear that AECL has a level of responsibility for the costs.

"New Brunswick should not become the experiment for AECL," he said.

The refurbishment project began on March 28, 2008. Once completed, it is expected to extend the generating station's life by 25 to 30 years.

Uncertainty over the time needed for the refurbishment was part of the reason New Brunswick's controversial deal to sell its generating assets to Hydro-Québec fell through, Keir has said.