5th Anniversary of the 2003 Northeast Blackout

Some reflections from the North American Electric Reliability Corporation (NERC):

On August 14, 2003, the North American electric grid experienced the largest blackout in its history, leaving over 50 million people across Southeastern Canada and the Northeastern U.S. without power. On this, the event’s fifth anniversary, North American Electric Reliability Corporation President and CEO, Rick Sergel, highlights the progress that has been made and new challenges ahead for ensuring reliability:

“In the mid-afternoon of August 14, 2003, the electric system reached a breaking point: trees contacted four separate transmission lines in Ohio – quickly taking the lines out of service; automatic controls sensed the disturbance and unnecessarily took additional lines out of service; failed computer systems left operators with inaccurate system information for hours before being addressed; and grid monitoring tools were not able to assess conditions quickly enough for operators to react.

“With the support and oversight of its stakeholders in industry and government, NERC has worked to fundamentally change the situation that allowed this catastrophic event to occur by developing mandatory reliability standards, enforcing zero-tolerance policies, leading extensive reviews of electric system components, and developing new reliability tools. As a result of these efforts, I can confidently say that the events that led to the 2003 blackout are now much less likely to recur.”

You can read more of the upgrades to the grid here. Funny enough, if you go the Wikipedia page, you can read who was blaming who for the cause of the outage just after it happened. Canadians blamed Americans, New Yorkers blamed Canadians, and all the while it was several trees in Ohio that triggered the whole event.

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

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...

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...

NEI Nuclear Notes

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