NEI Nuclear Notes

If you think that there is plenty of electricity, that the air is clean enough and that nuclear power is a just one among many options for meeting human needs, then you are probably over-focused on the United States or Western Europe. Even then, you’d be wrong. That’s the idea at the heart of a new book, “Seeing the Light: The Case for Nuclear Power in the 21st Century,” by Scott L. Montgomery, a geoscientist and energy expert, and Thomas Graham Jr., a retired ambassador and arms control expert. Billions of people live in energy poverty, they write, and even those who don’t, those who live in places where there is always an electric outlet or a light switch handy, we need to unmake the last 200 years of energy history, and move to non-carbon sources. Energy is integral to our lives but the authors cite a World Health Organization estimate that more than 6.5 million people die each year from air pollution.  In addition, they say, the global climate is heading for ruinous ins...

A big part of my job is working with members of state legislatures and their staffs. One the most important working relationships I have is with the bipartisan National Conference of State Legislatures (NCSL) . State legislators from all over the country look to NCSL for policy analysis, leadership opportunities, state benchmarks and, most importantly, facts and information to help them shape policies on the issues that they face.  NCSL’s new report, “State Options for Keeping Nuclear in the Energy Mix,” has all the history, facts and figures to explain why state policies and the electricity markets have created unintended consequences for nuclear power. By introducing price competition and Renewable Portfolio Standards, which are meant to encourage new technologies, policymakers have inadvertently created a math problem that ends up subtracting nuclear.  It is hardly sensible to subsidize one form of zero-emissions energy in a way that pushes another form of zer...

There’s a lot going on in our world, and this Thursday at 8:30 a.m. EST, the Nuclear Energy Institute will be making its annual presentation to dozens of Wall Street analysts . The United States continues to operate the world’s largest fleet of reactors, and is the technology leader. Maria G. Korsnick , our president and chief executive, will talk about how we plan to embrace that leadership role, and how we are part of the nation’s critical infrastructure. Nuclear power is increasingly recognized at the state level as providing tremendous value, not all of it compensated in the markets. The reactors provide diversity to the system , always-on, 24/7 power, with no air emissions. They are impervious to pipeline glitches, frozen coal piles, droughts and other interruptions. New reactors marching toward completion in South Carolina and Georgia will be part of those states’ energy backbone for a long time, probably the remainder of the century. We are also moving towards second li...

We can’t really say it snuck up on us, but New England’s electricity infrastructure is already prone to supply interruptions and price spikes, and getting more so. And so far the steps to counter the problem have been very limited. There’s a new warning from the non-profit company that operates the six-state grid, the Independent System Operator – New England (ISO-NE). One easy work-around – building gas plants that can run on oil in a pinch – is getting harder to use, because of air pollution rules, according to the head of the organization, Gordon van Welie , president and chief executive. His warning came in ISO-NE’s annual update on the state of the region’s electric grid . The result is a loss of energy diversity that threatens the stability of supply and price , according to van Welie, who spoke to reporters on Jan. 30. Among the elements in this unhealthy trend are the premature closings of two nuclear reactors, Vermont Yankee, in December, 2014, and Pilgrim, in Plymouth, Ma...

Today, the Nuclear Regulatory Commission (NRC) held a public meeting to consider the latest development in what has become a growing trend in the nuclear power industry – accelerating decommissioning by transferring licenses to third parties after a plant shuts down. The topic of today’s NRC meeting was to provide an overview of Entergy’s plan to sell and transfer the NRC licenses for the Vermont Yankee Nuclear Power Station – which permanently ceased operations at the end of 2014 – to NorthStar Group Services, Inc. , a company that specializes in nuclear decommissioning and environmental remediation. This meeting began the process by which the companies seek NRC approval of the transaction. Vermont Yankee Nuclear Power Station Why would anyone want to buy a nuclear plant? Because they can decommission it faster, with more certainty in schedule and costs,that’s why. In the nuclear decommissioning business, time is literally money. NRC regulations allow up to 60 years for compl...

The following post was sent to us by Dominion’s Richard Hanson for NEI’s Powered by Our People promotion . Powered by Our People is part of the Future of Energy campaign that NEI launched earlier this year. This promotion aims to communicate innovation in our nation’s nuclear facilities in the voices of the people working at them. Richard Hanson Richard is the manager of protection services at North Anna Power Station in Louisa County in Central Virginia. He’s worked in the nuclear industry for 11 years. For more on this promotion, take a look at the featured content on our website and follow the #futureofenergy tag across our digital channels. Tell us about yourself, and how long you’ve been in the nuclear energy industry. I am the manager of protection services at North Anna Power Station . We’re owned by Dominion Virginia Power and I’ve been in the nuclear industry for approximately 11 years. Why do you enjoy what you do? I enjoy what I do because I get a sense of a...

I have the privilege of speaking about NEI's alignment activities on social media at the 2014 U.S. Women in Nuclear Conference this Tuesday. I'll be joined on the Social Media in Action panel by Curtis Roberts of AREVA , Suzy Hobbs Baker of PopAtomic Studios and Paul Harwood of Twitter, with Susan Downs of PPL Susquehanna serving as moderator. We are just a handful of the communicators in the nuclear energy industry who recognize the necessity and value of engaging with stakeholders through social media. The web has evolved into a social space where platforms such as Twitter, Facebook and YouTube allow multidirectional, unfettered conversations to occur across physical boundaries and social constructs. As a result, the marketplace of ideas has never been easier to access. Nuc-le-ar nuc-le-ar nuc-le-arrrr! (Rufio chant in prep for #USWIN2014 ) @WomenInNuclear @popatomicstudio @paulgharwood @sadowns369 @AREVAus — Tara Young (@taryou) July 26, 2014 With increase...

Uprate at St. Lucie impossible without CWIP. Two nuclear critics, Peter Bradford and Mark Cooper, recently published a report (pdf) explaining how “advanced cost recovery” for nuclear plants in Florida and South Carolina “creates another nuclear fiasco.” Cooper’s main argument seems to be that Construction Work in Progress (CWIP) shifts to ratepayers all of the risks of building nuclear plants. This is either a deliberate distortion or a misunderstanding of how the cost recovery mechanism works. How “advanced cost recovery” (aka CWIP) works When a utility builds any type of project, it uses a mix of debt and equity to pay for the construction. The debt comes from banks and other investors and, of course, the utility must pay interest to use the debt. The equity comes from the utility’s shareholders and also requires a return for its use. The CWIP financing mechanism, which is also allowed by the federal government for interstate transmission projects, allows a company building...

Author Peter Kelly-Detwiler published a post for Forbes yesterday making an illogical comparison of sunk costs from nuclear plants to Mark Sanchez (the New York Jets QB). Despite providing a definition of sunk costs, the author doesn’t seem to understand what sunk costs really are. The article references several examples of new nuclear projects going over budget, but going over budget doesn’t mean the costs are sunk. According to the article, sunk costs are “unrecoverable past expenditures.” Nowhere in the piece does the author give an example of a nuclear plant that hasn’t been able to recover its past expenditures.When nuclear plants were built in the ‘70s and ‘80s in the US, state public utility commissions (PUCs) determined whether all or some of the costs of power plants could be recovered from ratepayers based on whether the costs were spent “prudently” or not. In some cases, the PUCs found that some costs were not prudent and therefore were not recoverable from ratepayers. Ye...

Here's a snippet of what went on in the energy markets last week: Electricity peak prices rose slightly last week at ERCOT and Palo Verde, averaging $32-34/MWh at those hubs. Meanwhile at the Northeast, PJM, and Southwest hubs, prices fell $2, $6, and $11, respectively, to average $38-39/MWh. Gas at the Henry Hub rose 12 cents during the week, averaging $3.38/MMBtu. “Faced with softening fall demand fundamentals, power prices for next day delivery worked mostly lower across the U.S. on Thursday, Oct. 11, even as traders looked to rising natural gas prices and climbing outages. ... Cash gas markets also worked higher, adding as much as 15 cents in parts of the West and as much as 25 cents in the East, which offered direct support to power markets. Also lending support, various generating units continue to drop offline, and the outages will accelerate in the coming weeks as units shutter operations for fall maintenance and refueling. ... Several more outages lie around the corne...

Here's a summary of the performance of the U.S. nuclear fleet in September: For the third month in a row, U.S. monthly nuclear generation lagged compared to the same periods in 2011. September 2012 nuclear generation was 3.7 percent lower than September 2011 generation and year-to-date nuclear generation was 0.9 percent lower than generation in the same period in 2011, 585.1 bkWh vs. 590.6 bkWh, respectively. The capacity factor in September 2012 was 88.2 percent compared to 91.6 percent in September 2011. The average capacity factor for the nuclear fleet for the nine months of 2012 was 87.7 percent compared to 88.9 percent for the same period in 2011. Nineteen units have refueled or are currently refueling during Fall 2012 as of October 17th compared to 16 units in Fall 2011 as of the same date. The FitzPatrick and Palo Verde 2 units are refueling after completing 702 days and 518 days of continuous operation, respectively, from their previous refueling outages. Fo...

Here's a snippet of what went on in the energy markets last week: Electricity peak prices fell slightly last week at ERCOT and Palo Verde, averaging $32/MWh at those hubs. Meanwhile at the Northeast and PJM hubs, prices rose $7 to average $40 and $45/MWh, respectively. “Next-day power markets were mixed to conclude the first week of the new month Friday, Oct. 5, as traders looked to cover short positions ahead of the impending weekend but also with choppy demand outlooks and recent ho-hum moves for natural gas also coming into play.” (SNL Energy’s Power Daily – 10/8/12) … West Texas Intermediate crude oil fell 54 cents to average $90.81/bbl last week. “EIA projects average household expenditures for heating oil and natural gas will increase by 19 percent and 15 percent, respectively, this winter (October 1 through March 31) compared with last winter. Projected household expenditures are 5 percent higher for electricity and 13 percent higher for propane this winter. Ave...

Here's a snippet of what went on in the energy markets last week: Electricity peak prices rose across the country last week, except at the Northeast hub, where they fell $8/MWh. “As traders closed their books on September and dealt the first daily product for October, power prices drifted in mixed directions in the eastern two-thirds of the U.S. on Friday, Sept. 28. ... Across the U.S., demand remains a muted driver as the mild fall air keeps weather-related demand balanced between cooling and heating needs. However, a growing number of outages continued to lend power prices a push higher, especially with natural gas prices once again on the rise, meaning replacement generation is likely to cost more, too.” (SNL Energy’s Power Daily, 10/1/12) … Average nuclear plant availability fell one percent last week, to 83 percent nationwide. Beaver Valley 2 began a planned refueling and maintenance outage September 24. Brunswick 1, Nine Mile Point 1, and Monticello returned to s...

Here's a snippet of what went on in the energy markets last week: Electricity peak prices were mostly down last week. Prices at ERCOT-Houston, PJM West, and the Northeast hubs fell substantially, dropping $27, $20, and $11/MWh, respectively. Prices at Palo Verde and the Southwest hubs rose marginally, in the face of a heat wave. “Largely defying a typical pre-weekend tick higher, power prices for Sept. 17 delivery moved in both directions across the U.S. on Friday, Sept. 14, but with the bias mostly lower as traders focused on softer gas prices and mild fall weather rather than mounting outages or the return of business-related demand early in the next week. … The cost of gas could have heightened influence at the power markets in the coming weeks as large baseload reactors drop offline for routine seasonal maintenance. In total, almost 39,000 MW of supply is already offline nationwide, up about 4,000 MW on the day, according to data from IIR Energy. By fuel, there are more th...

Here's a snippet of what went on in the energy markets last week: Electricity peak prices were mixed last week across the country. ERCOT-Houston and PJM West hubs saw the most action, rising $20 and $12 to average around $55/MWh, respectively. Prices at the Western, Northeastern and Southeastern hubs remained soft, moving less than $5/MWh in either direction. “Power prices across the United States moved mostly higher Tuesday, Sept. 4, with the largest gains recorded in parts of the East and Midwest after markets were closed Monday for Labor Day. … PJM West jumped more than $10 on the day with trades in the mid- to upper $50s, driven in part by a higher demand forecast as the PJM grid operator expects demand in the Western region reaching 69,700 MW on Wednesday. … As the Gulf Coast recovers from Hurricane Isaac's landfall last week, hotter weather and higher demand helped push ERCOT power prices higher Tuesday” (SNL Energy’s Power Daily – 9/5/12). Average nuclear plant ...

Here's a summary of what went on in the energy markets last week: Electricity peak prices made marginal gains last week across the country. The largest movers were the Western hubs which increased $4-$6 to average $40/MWh in the region. The Eastern hubs barely budged and the Texas hub rose $4 to average $36/MWh. “Power prices across the U.S. moved in mixed directions Tuesday, Aug. 28, finding support from hot weather in California, across the Southwest and Texas but taking on a more bearish bias elsewhere across the country in line with weak spot gas prices. … In addition, generation remains healthy. While several units are slated to shut through September and October, a fairly minimal 22,790 MW is offline nationwide in the meantime, according to IIR Energy. The nuclear generation sector, which could see as many as 30 reactors shut for refueling by the end of the year, represents the largest market share of outages, with 8,337 MW offline. In addition, about 5,568 MW of the tot...

Here's a summary of what went on in the energy markets last week: Electricity peak prices fell $1-$16 last week across the country to all settle below $40/MWh. “Next-day power markets were mixed but generally lower across the U.S. to open the workweek Monday, Aug. 20, as traders eyeballed higher load forecasts in most areas but also weak natural gas prices and an overall healthier generation picture. … Other sources of generation were improving Monday. According to data from IIR Energy, just more than 19,300 MW of various generation was offline across the U.S. early Monday. By fuel type, 3,866 MW was coal-based, while about 8,150 MW was nuclear-based and 1,969 MW was natural gas-driven” (SNL Energy’s Power Daily – 8/21/12). Electricity production was down 8.3 percent last week compared to the same week in 2011. For the first 34 weeks of 2012, electricity production is down 2.3 percent compared to the same period in 2011. … For more of the report click here .

Early this morning, the American Wind Energy Association pushed out some data that caught our eye : Electricity generated by the doubling of the U.S.’s crop of giant wind turbines in the past four years now equals the output of 11 nuclear power plants, according to the American Wind Energy Association, a trade group representing manufacturers and developers. After a big build up since 2008, the U.S.’s total wind output currently totals 50,000 megawatts, or 50 gigawatts. It looks like AWEA has the calculations correct. Fifty gigawatts (GW) of wind at a 30% capacity factor generates about 131,400,000 megawatt-hours of electricity in a year. This is roughly equivalent to the annual generation from 11 new nuclear reactors with an average capacity of 1,400 MW, each operating at a 90% capacity factor. It’s also equivalent to the annual generation of nearly 17 nuclear reactors with an average capacity of 1,000 MW, each at a 90% capacity factor. This is a great milestone for th...

“If anybody has been harboring doubts about the status of U.S. leadership in space, well, there’s a one-ton, automobile-size piece of American ingenuity, and it’s sitting on the surface of Mars right now.” This statement came from John Holdren , President Obama’s science advisor, this morning following the landing of a 2,000-pound nuclear-powered space rover, Curiosity , on the surface of Mars. This marks the first time that NASA has ever safely landed a human-made object of this size and weight on the surface of Mars, a notable feat in American engineering. Early reports from The New York Times describes the rover’s landing on the Red Planet like a scene in a movie script: As the drama of the landing unfolded, each step proceeded without flaw. The capsule entered the atmosphere at the appointed time, with thrusters guiding it toward the crater. The parachute deployed. Then the rover and rocket stage dropped away from the parachute and began a powered descent toward the surfac...

The following guest post was submitted by NEI Media Manager, Mitch Singer. Perhaps it’s asking too much in today’s media climate (no pun intended), but it would’ve been nice if Ginger Zee refrained from making the flippant comment on America This Morning that cooling ponds near nuclear plants are “either getting too low or too warm for the plants to function safely.” Ginger’s wrong on a number of accounts. Safety is paramount to the nuclear industry and all plants have contingency plans in place to adjust to extreme weather conditions and continue operating, albeit at a lower electrical power output. All nuclear power plants operate under their respective states’ water discharge permits and when the water’s ambient temperature reaches a certain level the plant’s power output must be lowered. Thus, they continue to “function safely.” The Browns Ferry Nuclear Plant in Alabama operated by the Tennessee Valley Authority (TVA) provides a great example of how in spite of extre...