Michigan Regulators Consider Ending Nuclear Purchase Contract

May 11

The Michigan Public Service Commission is considering the termination of a nuclear power purchase contract.

Entergy had announced they plan to shut down the Palisades Nuclear Power Plant in 2018, and the power purchase agreement with Consumers Energy runs through 2002, the Associated Press reported.

Consumers had proposed to recover the $172 million buyout payment through customer rates, though a financing order application indicates customers would still save between $54 million and $1.1 billion by ending the contract early.

TVA’s Plan for SMRs Runs into Snags

May 2

Efforts by the Tennessee Valley Authority to build a small modular nuclear reactor at its Clinch River site has run into setbacks, TVA officials said.

Joe Hoagland, TVA’s vice president of stakeholder relations, told the Knoxville News Sentinel the project still has three significant barriers that must be crossed before the project can begin.

The first barrier is a lack of electrical demand. Hoagland said the TVA hopes to have the SMR in place by the time the TVA eventually decommissions its current nuclear plants.

Secondly, the installation and operational costs of SMRs are still too high compared to other power generation technologies.

And finally, the technology is still under development. Though companies have submitted SMR designs, the review process could take up to five years.

Though the TVA has filed an early site permit application for the Nuclear Regulatory Commission, it did so due to the lengthy process for planning and building a nuclear plant. The plans don’t specify a specific design.

Westinghouse Granted Assessment Extension at Sumner Nuclear Project

April 28

SCANA Corp. and Santee Cooper announced it has extended the term of its interim assessment agreement with Westinghouse Electric through June 26.

The agreement allows for a transition and evaluation period, during which South Carolina Electric & Gas Company, a subsidiary of SCANA, and Santee Cooper, can continue to make progress on a new nuclear reactor at the Virgil C. Sumner nuclear station.

The extension gives the owners more time to maintain all of their options and continue construction on the project while examining all relevant information for a thorough and accurate assessment to determine the most prudent path forward.

The announcement indicated the extension was subject to bankruptcy procedures.

Westinghouse filed for Chapter 11 bankruptcy protection in March after over $6 billion in losses. Though parent company Toshiba had promised it would ensure new nuclear development projects undertaken by Westinghouse would continue, including the Virgil C. Summer nuclear station in South Carolina and the Alvin W. Votgle nuclear plant in Georgia, it is not yet clear how the bankruptcy filing would ultimately affect construction of those projects, both of which are three years overdue.

EIA: Most U.S. Nuclear Power Plants Built Between 1970 and 1990

April 27

A new study by the Energy Information Administration revealed that, of the 99 GW of operating nuclear capacity in the United States, 95 GW of that came online between 1970 and 1990.

Though the number of planned nuclear construction projects exploded in the early 1970s, additions slowed by the latter part of the decade due to slowing electric demand growth, high construction costs and public opposition. From 1979 through 1988, 67 planned nuclear plants were canceled.

However, due to lengthy permitting and construction times, plants planned in the 1970s continued to come online through the early 1990s.

EIA said the oldest operating nuclear reactor was built in 1969, while the youngest is Watts Bar 2, which came online last year and was the first new reactor completed since 1996.

Nuclear capacity has gradually declined, with the retirement of the Fort Calhoun Nuclear Generating Station last year the fifth retirement since 2013.

Several other plants have announced plans to retire in the near future — Oyster Creek, Pilgrim, Palisades Unit 1, and Indian Point Units 2 and 3 — totaling more than 4 GW of capacity. In addition, Pacific Gas and Electric announced that it will not seek license extensions for its 2 GW Diablo Canyon nuclear power plant.

Currently four new reactors totaling more than 4 GW are under construction.

Dominion Energy to Receive License for Third Reactor at North Anna

June 5

The Nuclear Regulatory Commission said it will issue a license for a third nuclear reactor at Dominion Energy’s North Anna Plant in Virginia, the Richmond Times-Dispatch reported.

However, Dominion has not yet indicated when or if it will build the reactor.

“Basically, having a combined operating license allows us the ability to build and operate a new unit at such time as makes business sense,” said Richard Zuercher, a Dominion spokesman.

Dominion has spent $600 million to design and develop a 1,600-MW GE-Hitachi reactor, though building the reactor would cost $19 billion.

The NRC had found no safety concerns but the agency imposed some restrictions, including mitigation strategies related to the 2011 meltdown at the Fukushima reactors in Japan after an earthquake and tsunami. Mineral, Virginia experienced a 5.8-magnitude earthquake in 2011.

Approximately 40 percent of Virginia’s electrical power is generated at Dominion’s nuclear reactors and North Anna and Surry.

Three Mile Island to Shut Down in 2019

May 30

The owner of Three Mile Island, site of the United States’ worst commercial nuclear power accident, said it will shut down the plant in 2019 without a financial rescue from Pennsylvania.

Exelon Corp.’s announcement comes after what it called more than five years of losses on the single-unit power plant and its recent failure in a capacity auction to sell its power into the regional grid.

In the meantime, the Chicago-based energy company wants Pennsylvania to give nuclear power the kind of preferential treatment that are given to renewable energies, such as wind and solar.

Exelon and other nuclear power plant owners have made the pitch to states that zero-carbon nuclear plants are better suited than natural gas or coal to fight climate change.

So-called nuclear bailouts have thus far won approval in Illinois and New York, but the potential for higher utility bills in Pennsylvania is drawing pushback from rival energy companies, manufacturers and consumer advocates.

“Like New York and Illinois before it, the commonwealth has an opportunity to take a leadership role by implementing a policy solution to preserve its nuclear energy facilities and the clean, reliable energy and good-paying jobs they provide,” Exelon’s president and CEO, Chris Crane, said in a statement.

Nuclear Generation Expected to Decline with Reactor Retirements

May 12

Far more nuclear generation capacity is expected to be retired rather than added through 2050, a study by the Energy Information Administration indicated.

Though 9.1 GW of new capacity is projected to be added, 29.9 GW is expected to be retired. The reactors already announced for closure include Palisades in 2018, Pilgrim Unit 1 in 2019, Oyster Creek Unit 1 in 2020, Indian Point Units 2 and 3 around 2020 and Diablo Canyon Units 1 and 2 in 2025 and 2026.

Though Quad Cities Units 1 and 2 and Clinton Unit 1 were set for retirement, financial incentives passed by the state of Illinois caused the operators of those plants to keep them open.

EIA assumes 25 percent of nuclear capacity now operating without announced retirement plans will be removed from service by 2050.

The four new reactors under construction at V.C. Summer and Vogtle are included in the assessment, EIA said their future process is uncertain due to the bankruptcy of Westinghouse Electric.

New nuclear power plants are licensed by the Nuclear Regulatory Commission for 40 years, though 90 percent of currently operating nuclear plants are either operating under or have applied for 20-year license renewals. Nearly all nuclear plants now in use began operation between 1970 and 1990.

Sources: Southern Power and Toshiba Reach Financial Agreement for Vogtle

May 15

Southern Company and Toshiba have reportedly agreed on liability payments for the unfinished Units 3 and 4 at the Vogtle nuclear power plant.

Under the deal, Toshiba’s liabilities will be capped at $3.6 billion and will be payable over the next three years.

Southern announced on Friday it would take over management of the Vogtle expansion from Toshiba’s Westinghouse subsidiary, which filed for bankruptcy earlier this year.

The deal is contingent on Toshiba reaching a similar agreement with SCANA over the similar nuclear expansion at V.C. Summer, the sources indicated.

Southern Company CEO Thomas Fanning said earlier this month the company hasn’t decided it will finish building the plant even if Toshiba pays out its liabilities.

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