NEI Nuclear Notes

Hurricane Sandy from space. NEI Has just issued the following press release concerning nuclear energy facilities impacted by Hurricane Sandy: Nuclear Energy Facilities Prove Resilience During Hurricane Sandy Washington, D.C., October 30, 2012--Thirty-four nuclear energy facilities in the path of Hurricane Sandy have responded well and safely to this powerful storm, demonstrating their resilience against severe natural forces. Careful planning and comprehensive preparations days in advance of the storm paid off at all of the facilities, which were prepared to take the steps necessary to maintain safety against high winds, record flooding and disturbances on the regional electric grid. Highly trained reactor operators and emergency response personnel stationed at the plants throughout the storm were able to take actions beyond their usual duties to protect the power plants and communities that surround them. As Hurricane Sandy moves beyond the mid-Atlantic and Northeastern sta...

Hurricane Sandy from space. Like millions living along the East Coast of the U.S., everyone here at NEI is keeping a close eye at the track of Hurricane Sandy. Although NEI's offices in downtown Washington, D.C. are closed today, my colleagues and I are still working from our homes in the city and the suburbs. Please follow us all day long on our Twitter feed for the latest news impacting our member companies. As for the nuclear industry as a whole, there are about 20 facilities located on the East Coast that might be impacted by the arrival of the Hurricane. Last night, Matt Wald of the New York Times posted the following about how the industry has prepared over at the NY Times Green blog : Among the various immobile pieces of infrastructure in the path of the East Coast hurricane are around 20 nuclear reactors, from Calvert Cliffs in southern Maryland to Pilgrim in Plymouth, Mass., and Vermont Yankee, just north of the Massachusetts line in Vernon, Vt. But the industry a...

The election this year has focused by and large on the economy and a fair number of important issues have fallen away. They haven’t ceased being important, of course, but politicians follow the interests of the public. One of the issues that has gotten less attention than in previous cycles is energy. In the 2008 contests, the candidates on both sides brought it up at the debates and even nuclear energy got a look (there wasn’t much distance between the candidates – nuclear energy was well supported across the ideological spectrum.) But this year – not so much in the way of discussion and very little about nuclear energy. So let’s turn instead to what some of the local candidates are talking about. Over in Missouri, incumbent state Representative Jeanie Riddle (R) and challenger Pam Murray (D) are running in the 20th district, an area that includes the Callaway facility, so nuclear energy is an issue in there. Surely, there’s some room for disagreement : Incumbent House Rep. Je...

Sen. Barnaby Joyce "If we are fair dinkum about reducing carbon emissions, and we want to have a minimum carbon emission form of power, then uranium is where it's going to be." And as we know, Australia is fair dinkum, but nuclear energy is not part of the equation. The speaker is Senator Barnaby Joyce, who quite rightly wonders why his country is so eager to export uranium if nuclear energy is so - "Let's be honest, if you think nuclear energy is immoral, why on earth are you exporting uranium?" What he’s reacting to is the decision to start mining the (plentiful) uranium in the Queensland province. Apparently, that won’t happen right away . AUA [Australia Uranium Association] communications director Simon Clarke said uranium was already being sold from existing mines in other states. "But the estimate of the price that would make it viable to build new mines suggest that the market will be ready for new mine capacity in some time from fiv...

NEI VP Richard Myers Over the past 24 hours, we've seen a number of folks online ask the question of why it's no longer economically feasible for Dominion to continue to operate the Kewaunee Power Station in Wisconsin. Earlier today, I put the question to Richard Myers , NEI's Vice President, Policy Development, Planning and Supplier Programs. Here's what he wrote back: In 2005, when Dominion bought the plant: (1) power prices in the Midwest were in the $40-50/MWhr range; wellhead gas prices were in the $6-10 per million Btu range; and U.S. electricity demand was growing. Today: (1) power prices in the Midwest are in the $30/MWhr range: gas prices are in the $2-3 per million Btu range; and (3) the U.S. has had 5 years of no growth in electricity demand, thanks to the worst recession in 80 years. Thanks to Richard for laying out the numbers for us. For a statement from NEI's Marv Fertel on the decision to close Kewaunee, click here . For a a quote from an R...

The global equity research group at the investment bank UBS just published a research note concerning Dominion's decision to close and decommission the Kewaunee Power Station : In 2011, Kewaunee had a loss of -$39Mn in net income, which D[ominion] excluded from operating earnings. Following a roll-off of the above market PPA at the end of ’13, we had projected that earnings would fall by another ~$65Mn driving negative FCF and minimal EBITDA. We agree that the economics of Kewaunee were uniquely challenged given its small size and regionally depressed power prices. That's a conclusion that pretty much reinforces what Dominion had to say earlier today .

Earlier this morning, Dominion announced that it would be closing the Kewaunee Power Station , a 556 MWe nuclear facility located about 27 miles outside Green Bay, Wisconsin.The following is an official statement from Marv Fertel, NEI's President and CEO, concerning the announcement. "Nuclear energy remains a reliable, cost-effective producer of electricity for America’s homes and our economy. As stated by Dominion, the company’s decision to close Kewaunee is based on the fact that it did not acquire additional reactors in the Midwest markets, so it could not achieve the economy of scale needed to be economical in that low-price power market. "Dominion is one of the best nuclear energy facility operators in the country and is committed to nuclear energy in other states it serves as part of the company’s electricity portfolio. Nuclear energy is vital to meet America’s growing electricity needs today and to ensure the secure, reliable and low-carbon power for decades ...