NEI Nuclear Notes

One of the strengths of the electric system is its diversity, with energy flowing from generators that use a variety of fuels. But conflicting government policies and poorly constructed markets are reducing that diversity, and the result will be electricity that is more expensive, more prone to price spikes, and less reliable, according to a new study. The problem may not be immediately evident to consumers, for whom the light switch on the wall is like a water faucet connected to a vast system of reservoirs and feeder streams. As long as the water comes out, the user doesn’t really care where each drop came from. The consumer is well served by the diversity of supply, even if the diversity isn’t obvious. The same is true for electric current. But the power grid is changing, according to a report issued Tuesday by the economic analysis firm IHS Markit, Ensuring Resilient and Efficient Electricity Generation: The Value of the Current Diverse U.S. Power Supply Portfolio , which l...

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...

Alex Flint The following is a guest post by Alex Flint, NEI’s Senior Vice President of Governmental Affairs. For a Q&A with him on the nuclear energy industry’s legislative priorities for 2016, click here . Tonight, President Barack Obama will deliver his eighth State of the Union address. For the first time, House Speaker Paul Ryan (R-WI) will sit behind him to his right, thinking “I could do that.” Of course, behind him to his left, Vice President Joseph Biden will be thinking the same thing but with the sorrowful knowledge that his time has passed. Finally, in front of him, at least a dozen U.S. Senators, some of whom are currently running for President , will also be thinking, “I could do that.” The pomp and circumstance is always a bit fun. I always look around to determine which member of the cabinet doesn’t attend — it’s a nasty little Cold War flashback, but at least someone is thinking about these things. Also, some of the Supreme Court justices seem less...

Is New England facing an energy crisis? Today, in the second of three parts about closing Vermont Yankee , NEI looks at the looming energy shortages in the far Northeast. Along with Vermont Yankee, nearly 1,400 megawatts of baseload electric generating capacity will retire in New England this year, including a 750-megawatt coal- and petroleum-fired power plant in Massachusetts. But New England is using a lot of natural gas these days, right? New England has significantly increased its reliance on natural gas for electricity in the past few years. The increase has contributed to pipeline transportation congestion in the region’s natural gas market, particularly in the winter when it competes for heating homes and businesses. Which can lead to, indeed, did lead to: These supply constraints contributed to extreme spikes in spot natural gas and electricity prices in New England during the winters of 2012-2013 and 2013-2014. During the severe cold snap of January 2014’s polar vort...

This really may seem kind of a nothing from a nuclear energy standpoint, but it’s not. It got cold – really, really cold – in much of the United States this week. Several sections of the electricity grid got pretty close to meeting their winter demand records , and some facilities – non-nuclear facilities – got knocked out by the cold. In fact, nuclear energy became the primary provider of electricity in New England, as natural gas choked up. Actually, the total impact, while good for nuclear, wasn’t all it could be : The decrease in natural gas electricity generation forced regional grid administrator ISO New England to call on costlier and dirtier coal and oil plants to make up the difference. Oil? That’s awful. Let’s be thankful this event didn’t go on for a week or more. At least, ISO used this as a teaching moment on the value of energy diversity: ISO had warned the region about the increasing dependence on natural gas as both electricity generator and home heati...

Jim Asselstine The following is a guest post submitted by Scott Peterson, NEI's senior vice president of communications . SINGAPORE-- Jim Asselstine has an unparalleled pedigree to assess the nuclear energy industry. He has analyzed the industry for the past 23 years at Lehman Brothers and Barclays , was a Nuclear Regulatory Commission commissioner and punched his policy credential as a congressional staffer. “My own personal view is that we should try to keep nuclear power, as the only zero-carbon, large-scale baseload generating source at about its current level of 19 or 20 percent of U.S. [electric] generation,” Asselstine said during a clear-eyed assessment of America’s nuclear energy industry. He was speaking at the World Nuclear Fuel Conference , a global symposium in Singapore sponsored by the Nuclear Energy Institute and World Nuclear Association . Assuming modest electricity demand growth and with the closure of existing reactors after 60 years of production,...

Entergy's Bill Mohl Earlier today, William (Bill) Mohl, President, Energy Wholesale Commodities, Entergy Corporation, testified before the U.S. House Energy and Commerce Committee 's Subcommittee on Energy and Power. His testimony was concerned with why it was important for the nation to maintain a diverse portfolio of energy sources. We've excerpted a couple of passages from the speech below ( bold emphasis mine ): Another way of looking at the economic value of existing U.S. nuclear generation is to consider the potential cost of replacing it. Based on data publicly available from the U.S. Energy Information Administration, Entergy has calculated that building gas-fired Combined-Cycle Gas Turbine (CCGT) plants to replace the approximately 101,000 megawatts of capacity provided by U.S. nuclear plants would cost between $100 and $110 billion dollars . An investment of this magnitude to replace an existing asset class would be enormous for the U.S. power industry. T...

Miniature not because Georgia Power is a small provider of electricity, but because the company’s view of its own future may provide some insight into larger energy trends. We should not assume this to be true, an easy trap to fall into; instead, let’s look at it as one data point in a thesis that could be proven or disproven by more data points. The reason we can glimpse into the future is because the Georgia Public Service Commission requires Georgia Power to submit what it calls an integrated resource plan. This IRP provides a look at the electricity landscape over the next 20 years. Georgia Power prepares a new IRP every three years, so its outlook can change based on changes in the marketplace. Although we often refer to the two new reactors at Georgia’s Plant Vogtle as a Southern Co. project, the facility is jointly owned by Georgia Power (45.7%), Oglethorpe Power Corporation (30%), Municipal Electric Authority of Georgia (22.7%) and Dalton Utilities (1.6%). Georgia Powe...

NEI VP Richard J. Myers The following statement concerning today's story on nuclear energy and natural gas ("Can gas undo nuclear power?") that appeared in the Wall Street Journal can be attributed to Richard J. Myers, NEI's Vice President, Policy Development, Planning and Supplier Programs: Electricity production issues are not quite as cut-and-dried as portrayed in the article, certainly not from the vantage point of energy companies who must evaluate an array of factors to determine what their future generating mix will and will not be. A nuclear energy facility produces benefits well beyond the electricity it generates. They include economic benefits like jobs, taxes and procurement; grid reliability benefits in the form of voltage support and ancillary services; the environmental benefit of avoided emissions; and the energy security benefits of an electricity source that adds diversity and forward price stability to the electricity supply portfolio. It a...

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...

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 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...

No argument here : One of the world’s fastest-growing economies, Turkey has significant energy needs. The majority Muslim nation’s energy demands will double by 2023, according to one projection. Nuclear Energy perhaps? Turkey has contemplated it for some years, but lacked a partner to help cover the expense of building the facility- running nuclear energy plants is inexpensive, building one is expensive. Now it has a partner – and in an arrangement that seems close to unique: The $20 billion venture will be wholly financed by a subsidiary of Rosatom , Russia’s state-controlled nuclear energy corporation. The Russian firm has agreed to build, own and operate the plant for its entire productive life, with spent fuel sent to Russia for reprocessing. The deal represents an unprecedented level of cooperation between the former adversaries. Various Turkish officials have a lot of questions about this, some of which involve national sovereignty, always a touchy subject. F...

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 .

Today, the Seabrook Public Library is showing a film that highlights the start of the anti-nuclear power community. The film is about a long-ago protest in 1977 in which activists opposed to nuclear energy tried to occupy the Seabrook plant site during construction. Seabrook finally got built, and in the 22 years since it began producing electricity, it has amassed an impressive record of economic and environmental benefits. Reliable Electricity According to the Energy Information Administration , the Seabrook nuclear power reactor (1,247 MW) is the largest in New England and provided 42 percent of New Hampshire's 2011 electricity generation. Since it began commercial operation in 1990, the unit has produced a total of 189,684,433,000 kilowatt-hours , or more than enough electricity to power New York or Illinois for a year . According to NextEra , its owner, Seabrook generates enough power to supply the annual needs of 1.4 million families and businesses. Environmental B...

Last week, David Bradish posted his take on President Clinton's statement concerning the costs of electricity generated by wind, solar and nuclear energy. After looking at the numbers, David concluded that an analysis by Politifact that rated Clinton's statement as "half-true" was flawed and needed to be updated to "mostly false." Earlier today, John Keeley of NEI's media team I shared a copy of David's analysis with reporter Louis Jacobson and editor Martha Hamilton . If and when we get a response, we'll let you know.