Skip to main content

Will Nuclear Energy Help Fill the Gap in Michigan?

In today's Detroit News, the paper reviews the outlook for the electricity market in Michigan -- and the future is looking pretty murky due to regulatory uncertainty. The newspaper talked to DTE Energy's Tony Earley, who also serves as Chairman of NEI:
"Unless there is a stable regulatory environment, nobody -- no marketer, no independent power producer, no regulated utility -- will build another base load plant in Michigan," said DTE Energy Chief Anthony Earley Jr. "Right now there is enough generation to supply us, but two or three years down the road you're going to start having some real reliability problems."

Meanwhile, demand for electricity is growing 1.5-3 percent a year.
Last November, NEI's former President and CEO, Joe Colvin, addressed just this subject in a speech at NARUC 2004.

Meanwhile, back in Michigan, DTE is considering something that would have sounded impossible a few years ago -- building a new nuclear power plant to meet rising electricity demand:
Conventional wisdom says a new plant is likely to be coal-fired. But industry experts aren't ruling out nuclear power, which now supplies 26 percent of Michigan's electricity market. There has not been a nuclear plant licensed in the United States since the near disaster at Three Mile Island in 1979. But President Bush, pointing to France's heavy use of nuclear plants as a clean and reliable power source, is pushing for that option .

"If you had asked me five or six years ago, I would have said it's probably unlikely there'd ever be another nuclear plant, but a lot has happened," said DTE chief Earley. "The big focus around the globe is on global warming, and when you get down to a hard analysis, if you're serious about reducing carbon emissions, the only answer is building nuclear plants."
Technorati tags: , , , , ,

Comments

Popular posts from this blog

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Activists' Claims Distort Facts about Advanced Reactor Design

Below is from our rapid response team . Yesterday, regional anti-nuclear organizations asked federal nuclear energy regulators to launch an investigation into what it claims are “newly identified flaws” in Westinghouse’s advanced reactor design, the AP1000. During a teleconference releasing a report on the subject, participants urged the Nuclear Regulatory Commission to suspend license reviews of proposed AP1000 reactors. In its news release, even the groups making these allegations provide conflicting information on its findings. In one instance, the groups cite “dozens of corrosion holes” at reactor vessels and in another says that eight holes have been documented. In all cases, there is another containment mechanism that would provide a barrier to radiation release. Below, we examine why these claims are unwarranted and why the AP1000 design certification process should continue as designated by the NRC. Myth: In the AP1000 reactor design, the gap between the shield bu...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...