SAINT JOHN, New Brunswick (AP) – New Brunswick has chosen a state-controlled corporation and a collection of private companies dubbed “Team Candu” to study the feasibility of building a second nuclear power station in the province.

The province announced Wednesday that Atomic Energy of Canada Ltd. and its private partners will study the market potential for the nuclear plant on the same site as the Point Lepreau station near Saint John. Point Lepreau has an aging reactor that’s undergoing a $1.4 billion refurbishment.

“This is significant for the future of Point Lepreau and it is significant for the development of Saint John as a major energy hub,” Premier Shawn Graham said.

The consortium wants to build and own the reactor, with provincial utility N.B. Power acting as the operator. Graham said it was too early to determine whether the province would invest in the project.

The $2.5 million study – to be paid for by the consortium – will determine if there are markets for export electricity in New England, what technical issues stand in the way, and what benefits could be generated for New Brunswick.

The study should be completed in six months.

But members of Team Candu say they’re already convinced there will be strong demand for electricity in New England, saying the region can expect a 6,400-megawatt shortage between 2015 and 2018.

The proposed reactor would generate 1,100 megawatts and could be generating power by December 2016.

New Brunswick Power is currently building a new transmission line to the United States for its existing reactor, but NB Power President David Hay said that won’t be an issue for the proposed facility.

“They have as part of their proposal putting in a subsea line directly from Point Lepreau down to Boston, so that wouldn’t affect our transmission system, except getting it to the water,” he said.

But Hay admitted a second reactor would create a major issue for the utility – replacement power. The utility is required to have backup power of the same amount as the nuclear power plant in the event it goes offline.

“One of the great challenges of the feasibility study is going to see what it would cost to put in place backup reserve power as a contingency.”

AP-ES-08-01-07 1728EDT