NEI Nuclear Notes

David Heacock This week is the fifth anniversary of the accident at Fukushima Daiichi nuclear power plant . To mark the event, we'll be sharing observations from leaders around the nuclear energy industry all week long on how the U.S. has absorbed lessons learned from the accident to make safe nuclear plants even safer . Today's contribution comes on the industry's FLEX strategy from David Heacock , President and Chief Executive Officer of Dominion Nuclear. The U.S. nuclear industry is well on its way toward implementing a flexible mitigation approach for responding to any event that may exceed the robust design of the nation’s nuclear power plants. This FLEX strategy , the outcome of the U.S. industry’s response to the 2011 Fukushima Daiichi accident in Japan, provides yet another layer of safety. This is in addition to the multiple back-up safety systems already available to protect the public and environment. In effect, this strategy was demonstrated to succes...

What becomes a data center most? Electricity – and lots of it . [Mark] Mills [founder and CEO of the Digital Power Group] says the growth of information technology over the next two decades will “radically alter” the electric sector, reducing the use of electricity in many areas while consuming vast amounts itself. The big takeaway from this transformation, he says, is the paramount importance of reliable electricity supplies. […] A few-thousand-square-foot [data center], Mills says, uses more electricity than a 100,000-square-foot shopping mall. He adds that there are tens of thousands of data centers around the country, “each consuming as much electricity as an entire town.” Actual numbers for what data centers needs can be a little tough to pin down. But here’s a stab at it from someone who should know: David Christian, the CEO at Dominion Generation , which operates Dominion Virginia Power’s four reactors at North Anna and Surry, agrees, noting that several n...

The title of the Akron Beacon-Journal’s editorial is “A Compromising Position for FirstEnergy and Ohio.” Uh-oh – what could this be about ? As it turns out, nothing bad at all: Too many environmentalists have a blind-spot for nuclear power. Yet, if the problem of climate change is dire — and it is — how reckless to cast aside a clean power source capable of generating an ample and steady supply. Those who applaud the Obama White House for preparing to issue limits on carbon emissions also should cheer plans to keep Davis-Besse in operation. FirstEnergy wants to charge ratepayers a bit extra to keep Davis-Besse and a coal plant afloat while natural gas remains inexpensive. You might expect the local newspaper to find fault with that – it could be made to sound like a greedy utility with its hand out - but it doesn’t. This is an exceptionally mature viewpoint, a recognition that what’s true now – low natural gas prices – won’t be true forever. What the newspaper does not point...

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...

Lisa Hilbert The following post was sent to us by Dominion’s Lisa Hilbert 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.  For more on this promotion, take a look at the featured content on our website and follow the #futureofenergy tag across our digital channels. Lisa Hilbert has worked in the nuclear energy industry for 24 years. She is currently the manager for nuclear outages and planning at Dominion’s Surry nuclear power station 17 miles from Newport News, Va. She began her career in the company’s mechanical engineering department, and held positions in operations, corrective action and nuclear oversight before joining the company’s Outage & Planning team. What I do and why I enjoy doing it Outage & Planning coordinates the pr...

Cheap gas? Not last week in the Northeast. Yesterday evening, the Wall Street Journal published a story by Rebecca Smith that asked the question, " Can Gas Undo Nuclear Power? " It's a question that's been asked often, especially in the wake of the announced closing of the Kewaunee Power Station in Wisconsin by Dominion last October. Here's what NEI's Richard Myers had to say about it at the time : 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. Near the close of 2012, NEI's President and CEO, Marv Fertel addressed the natural gas issue head on when it came to buildin...

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 ...