NEI's Energy Markets Report - October 22

NEI's Energy Markets Report - October 22 - 26, 2007

Here's a summary of what went on in the energy markets last week:

Electricity peak prices at the listed hubs below decreased about $4-15/MWh except for Palo Verde and SP 15. Cooler temperatures played a role in falling prices at the Eastern and ERCOT hubs. Four out of seven nuclear reactors in the Western region were down for most of the week which contributed to moderate price increases at the SP 15 and Palo Verde hubs (Platts, see pages 1 and 3).

Gas prices at the Henry Hub fell from $6.92/MMBtu to $6.55/MMBtu. Moderate weather is considered the cause for declining gas prices for the week (EIA). Gas futures also fell $0.33 to $7.01/MMBtu for November (see pages 1, 2 and 3).

NOx allowance prices fell $100 to $770/ton last week (see pages 1 and 3).

Estimated nuclear plant availability slipped from 83 to 82 percent last week with two reactors beginning and three reactors finishing refueling outages. Palo Verde 1 was offline to repair an auxiliary feedwater pump (see pages 2 and 4).

Uranium spot prices rose to $84 and $85/lb U3O8 according to TradeTech and UxConsulting. “Several new buyers have returned to the (uranium) market over the past couple of weeks, further signifying the belief that the spot market has hit its near-term bottom” (UxC). U3O8 prices have risen $10 over the past four weeks from a low of $75/lb U3O8 (see pages 1 and 3).

Crude oil prices rose to $87.80/barrel last week. For perspective, the cost of crude oil imports in 1980 (the highest year so far) was $84.40/barrel after adjusting for inflation to preliminary 2007 dollars using the Consumer Price Index (see pages 1 and 3).

For the report click here. It is also located on NEI's Financial Center webpage.

Comments

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...

What Happens During a Refueling Outage?

You may have noticed over the past few weeks that a number of nuclear plants are shut down for refueling outages or are resuming operations after just returning from one. This type of routine outage usually occurs in the spring or fall when electricity demand is low so that nuclear reactors can replace about one-third of the spent fuel rods with new fuel and conduct other routine maintenance and repairs at the plant. To get a better sense of how refueling works at a nuclear energy facility, I spoke with Marcus Nichol, NEI’s senior project manager for used fuel storage and transportation, and asked him to explain the basics. Why does a nuclear plant need to replace one-third of its fuel? Nichol: The main purpose of a refueling outage is to replace older fuel that is depleted—meaning it can no longer efficiently produce energy from nuclear fission reactions—with new fuel. This “used fuel” has typically been used in the reactor for four-and-a-half to six years before it is pe...

How Much Land Does Nuclear, Wind and Solar Really Need?

Not too long ago, we reviewed a report that looked at nuclear energy (and other energy sources) as biodiversity agents. This had to do, in part, with the amount of land a facility needs to function. Nuclear energy and fossil fuel plants use relatively little, wind farms and solar arrays quite a lot of land . Based on an objective and transparent analysis of our sustainable energy choices, we have come to the evidence-based conclusion that nuclear energy is a good option for biodiversity conservation (and society in general) and that other alternatives to fossil fuels should be subjected to the same cost–benefit analyses (in terms of biodiversity and climate outcomes, as well as sociopolitical imperatives) before accepting or dismissing them. Writer Barry Brook, who collected 75 scientists to endorse his paper, is interested in land use as it impacts flora and fauna. Biodiversity concerns do not get as much play as they might – and, when they do, it annoys many when land is withdraw...

NEI Nuclear Notes

Search This Blog