For safety and non-ramp reasons, the contract and Bruce Power agreed to a cost and schedule estimate for each renovation project. In accordance with project management principles, this estimate had an acceptable area for cost and schedule, based on the status of the estimate and the sequential nature of the program. As part of the contract, subsequent RCMs are expected to improve costs and timing based on lessons learned and experience. These include front-end costs, which take into account the share of the nuclear fuel cycle that leads to the generation of electricity in a nuclear reactor, as well as cooking costs that include at least on-site pool storage and long-term waste management. Unlike natural gas prices, which are very sensitive to market changes, the cost of nuclear fuel is predictable and stable. Bruce Power`s fuel cost, which is reflected in the amended agreement, is determined by a long-term purchasing strategy and represents approximately 12 per cent of the 2016 Bruce Nuclear Award. In addition, only part of the cost of fuel is exposed to market prices. Under separate agreements, Bruce Power leases the Ontario Power Generation (OPG) facility and is required by this lease agreement to cover all costs related to operation, life extension, services and, through lease payments, long-term debts, including the lease of the facility. The purpose of this leasing agreement is to ensure that all costs related to Bruce Power`s operation are attributed to the company and included in its electricity price. In early 2019, through this agreement, Bruce Power provided savings of $US 200 million, which will be returned directly to Ontario`s tempet payers.
Asset management includes ongoing inspection, maintenance, replacement and overhaul activities, which are not included in the replacement of core components necessary to extend the life of components. Asset management activities are conducted before, during and after the RCM riots. Like mcr costs, the costs of asset management activities are recovered by the contract electricity price. In 2013, the Province of Ontario`s Long Term Energy Plan (LTEP) set out the policy framework for future renovations, including the requirement to put in place realistic off-ramps. . . .