Ernest Moniz Tapped for Energy Secretary

If you want a sense of what Ernest Moniz, the MIT physicist who is President Barack Obama’s pick for energy secretary, thinks about nuclear energy, read some of his writing. There’s a lot of it, and he’s pretty direct:

It would be a mistake, however, to let Fukushima cause governments to abandon nuclear power and its benefits. Electricity generation emits more carbon dioxide in the United States than does transportation or industry, and nuclear power is the largest source of carbon-free electricity in the country. Nuclear power generation is also relatively cheap, costing less than two cents per kilowatt-hour for operations, maintenance, and fuel. Even after the Fukushima disaster, China, which accounts for about 40 percent of current nuclear power plant construction, and India, Russia, and South Korea, which together account for another 40 percent, shows no signs of backing away from their pushes for nuclear power.

This is from November 2, 2011. A little more:

Nuclear power's track record of providing clean and reliable electricity compares favorably with other energy sources. Low natural gas prices, mostly the result of newly accessible shale gas, have brightened the prospects that efficient gas-burning power plants could cut emissions of carbon dioxide and other pollutants relatively quickly by displacing old, inefficient coal plants, but the historical volatility of natural gas prices has made utility companies wary of putting all their eggs in that basket. Besides, in the long run, burning natural gas would still release too much carbon dioxide.

Moniz is Director of the Energy Initiative and Professor of Physics and Engineering Systems at MIT. He served as Undersecretary at the Department of Energy in 1997–2001.

NEI’s take is here, from President and CEO Marvin Fertel:

“In nominating Ernie Moniz to be Secretary of Energy, President Obama has sent America a strong message that its energy leadership will be entrusted to an advocate of clean energy supplies, including nuclear energy. Dr. Moniz is experienced and well respected in the energy, nonproliferation and national security communities worldwide. He has made it clear that he recognizes nuclear energy’s important role in reducing greenhouse gases as part of a balanced, low-carbon electricity generation portfolio.

Like NRC Chairman Allison Macfarlane, Moniz was a member of the administration’s Blue Ribbon Commission on America’s Nuclear Future, which recommended a new strategy for managing used nuclear fuel.

I’m sure we’ll learn plenty more in the coming days.

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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