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ARTICLE ARCHIVE

Nuclear Costs

Estimates for new reactor construction costs continue to sky-rocket. Conservative estimates range between $6 and $12 billion per reactor but Standard & Poor's predicts a continued rise. The nuclear power industry is lobbying for heavy federal subsidization including unlimited loan guarantees but the Congressional Budget Office predicts the risk of default will be well over 50 percent, leaving taxpayers to foot the bill. Beyond Nuclear opposes taxpayer and ratepayer subsidies for the nuclear energy industry.

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Tuesday
Jan222013

"Bad math" dating back 40 years adds to long list of problems at idled Ft. Calhoun atomic reactor

As reported by the Associated Press, a design flaw dating back to the early 1970s raises concerns about heavy equipment support structures at the Omaha Public Power District-owned/Exelon-operated Fort Calhoun atomic reactor in Nebraska. Both the utility, and the U.S. Nuclear Regulatory Commission (NRC), missed the flaw, both during initial licensing four decades ago, as well as during the rubberstamp of a 20-year license extension in 2003.

The article lists the many woes which have kept the reactor shutdown since before historic floods on the Missouri River in summer 2011, which inundated the Fort Calhoun site, doing untold damage to underground structures, systems, and components, including safety-significant electrical cables, as well as pipes which carry radioactive materials (see photo, left):

"...Among the violations cited by regulators was the failure of a key electrical part during a 2010 test, a small electrical fire in June 2011, several security issues and deficiencies in flood planning that were discovered a year before the river spilled its banks.

Still to be addressed: the repair of flood damage at the facility; the replacement of fire-damaged equipment; strengthening the management of the plant; improving the safety culture among workers; the removal of the Teflon insulation; and the strengthening of heavy equipment supports...".

As Arnie Gundersen of Fairewinds is quoted, "If Fort Calhoun were being run by a business, it would have been shut down a year ago."

As the article reports, "The Omaha Public Power District imposed a 6.9 percent increase in electricity rates this month for customers across southeast Nebraska, largely to finance a $143 million bill to fix some 450 problems and rehabilitate the nuclear plant that was closed in April 2011."

Friday
Jan182013

Arnie Gundersen: "REPAIRS AT FOUR NUCLEAR REACTORS ARE SO EXPENSIVE THAT THEY SHOULD NOT BE RESTARTED"

Fairewinds' nuclear engineer Arnie GundersenIn the most recent Fairewinds Energy Education weekly podcast, "REPAIRS AT FOUR NUCLEAR REACTORS ARE SO EXPENSIVE THAT THEY SHOULD NOT BE RESTARTED," Fairewinds' nuclear engineer Arnie Gundersen (photo, left) lays out the case as to why the atomic reactors at Fort Calhoun, Nebraska on the Missouri River, Crystal River in Florida, and San Onofre Units 2 & 3 in southern California should all be permanently shutdown.

In the second half of the program, Arnie also discusses a recent letter to U.S. Energy Secretary Steven Chu, and an accompanying press release, from U.S. Representative Ed Markey (D-MA), which expressed strong opposition to U.S. Department of Energy plans to "recycle" radioactive metals and other materials from its nuclear facilities (such as nuclear weapons complex sites, uranium enrichment facilities, national labs, etc.) into consumer products.

Thursday
Jan172013

Rating agencies: cracked Crystal River 3 likely down for the count

As reported by SNL, Fitch and UBS have indepenently cast doubt on the likelihood, given the cost (into the billions of dollars), that Duke/Progress Energy's Crystal River Unit 3 in Citrus County, Florida will ever be repaired and returned to operations. Crystal River has been shutdown ever since severe cracking (see photo, left) was discovered in its concrete containment shell, nearly three and a half years ago. The utility accidentally cracked the containment itself, while attempting an in-house steam generator replacement.

The article reports that ratepayers will not be charged $388 million for replacement power, but "a settlement agreement with the Florida Office of Public Counsel and several interest groups...stipulates the parties will not oppose Duke's full recovery of all plant investment should it decide to retire the plant," meaning that the public could still get stuck with the bill for a disastrous engineering mistake the nuclear utility itself made.

Duke/Progress Energy has variously attempted to foist repair or cost recovery bills on its insurance provider, its ratepayers via the Florida Public Service Commission, and even the rest of the nuclear power industry.

Beyond Nuclear has helped lead environmental coalition efforts to block Davis-Besse's 20-year license extension, due to severe cracking in its concrete Shield Building.

Thursday
Jan172013

Forbes: "the nuclear renaissance may be largely over before it started" 

"Burning Money" image by Gene Case, Avenging AngelsPeter Kelly-Detwiler, Contributor to Forbes, has published an op-ed entitled "New Centralized Nuclear Plants: Still an Investment Worth Making?" In it, he concludes that "the nuclear renaissance may be largely over before it started," with not only the vast majority of proposed new reactors in the U.S. being cancelled, but even paid-off old reactors like Kewaunee in Wisconsin being permanently shutdown due to crushing economics -- such as the expense of major, vitally needed safety repairs at the 40-year old reactor.

Kelly-Detwiler cites the "takes too long," "costs too much," and "bet-the-farm" nature of nuclear power for the "failure to launch" of the nuclear relapse.

Regarding that last point, Kelly-Detwiler writes:

'So it appears that the nuclear renaissance may be largely over before it started.  And yet, many projects have not yet been canceled, with utilities and ratepayers accepting ever more risk in order to rescue sunk costs. In many cases, these costs have soared or will soar into the billions. As risk management expert Russell Walker of the Kellogg School of Management is quoted as saying in the Tampa Bay Times “When the stakes get higher, it gets harder for organizations to walk away…this happens a lot.  It’s the same problem a gambler has: If I play a little longer, it’ll come around.” '

If the op-ed's title is meant to imply that so-called small modular reactors might still save the day for the retreating nuclear power industry, it must be pointed out that the supposed justification for giant-sized proposed new reactors (such as the AP1000, at 1,100 MWe; the ESBWR at 1,500 MWe; the EPR at 1,600 MWe; etc.) was "economies of scale." Since small modular reactors represent the opposite end of the spectrum, it stands to reason these would be even more expensive than their super-sized, failed siblings.

In a classic February 14, 1985 piece entitled “Nuclear Follies,” Forbes wrote: 

"The failure of the U.S. nuclear power program ranks as the largest managerial disaster in business history, a disaster on a monumental scale. The utility industry has already invested $125 billion in nuclear power, with an additional $140 billion to come before the decade is out, and only the blind, or the biased, can now think that the money has been well spent. It is a defeat for the U.S. consumer and for the competitiveness of U.S. industry, for the utilities that undertook the program and for the private enterprise system that made it possible.”

Thursday
Jan172013

Entergy Watch: Palisades, Pilgrim, Vermont Yankee

Entergy's Palisades, Pilgrim, and Vermont Yankee atomic reactors are each among the 73 two decade license extensions rubberstamped by the U.S. Nuclear Regulatory Commission in recent years. But resistance to their ongoing operations is intensifying nonetheless!

Last Saturday, critics grilled NRC with questions regarding "recent through-wall leaks" at Entergy's problem-plagued Palisades pressurized water reactor on the Lake Michigan shore in Covert, Michigan. In Plymouth, Massachusetts and on Cape Cod, watchdogs continue to hound Pilgrim, Entergy's General Electric Mark I Boiling Water Reactor -- a twin design and vintage to Fukushima Daiichi Units 1 to 4 -- near Boston. And Entergy's Vermont Yankee had its day(s) in court(s) -- another risky, age-degraded Mark I, which has very much worn out its welcome in the Green Mountain State!

Palisades, Pilgrim, and Vermont Yankee are each also relatively small sized, single reactor, "merchant" nuclear power plants. As such, they are currently very vulnerable to permanent shutdown due to crushing economics -- such as the expense of badly needed major safety repairs.