"Burning Money" image by Gene Case, Avenging AngelsBloomberg has reported:
"Edison International (EIX)’s decision to abandon its San Onofre nuclear plant in California is the latest blow for an industry already facing questions about its long-term survival.
Edison, based in Rosemead, California, announced June 7 it will permanently shut the plant’s two reactors, trimming total U.S. operating units to 100 from 104 at the beginning of the year and 110 at the peak in 1996. The announcement brings to four the number of units permanently removed from service this year, the most in any year since the nation embraced nuclear power.
Other facilities are nearing the end of their projected lifespans and may need costly renovations while cheap natural gas has siphoned off market share. Potentially expensive regulations to bolster safety in response to a triple meltdown at Japan’s Fukushima Dai-Ichi plant in 2011 have raised the concerns of investors...
The last wave of U.S. plant closures was in the late 1990s, when falling gas prices helped tilt economics in favor of retiring rather than attempting large-scale repairs. Six reactors were closed from 1996 to 1998, according to Nuclear Regulatory Commission data, and peaked in 1996 when Haddam Neck in Meriden, Connecticut; Maine Yankee in Wicasset, Maine; and Unit 2 at the Zion plant in Illinois shut...
“The decision to shut down rather than retrofit the San Onofre nuclear plant shows the changing economics of the power market,” Howard Learner, executive director of the Environmental Law and Policy Center, a Chicago-based advocate of cleaner energy, said in a telephone interview. “We suspect other nuclear plant owners may start reaching the same decision.”
In fact, Dominion Nuclear made just such a decision, to permanently shutdown its Kewaunee atomic reactor on the Lake Michigan shoreline of Wisconsin last month.
The Milwaukee Journal Sentinel reported on October 22, 2012 that Dominion, referring to its losing battle to remain competitive in a deregulated electricity market, could not afford the needed safety repairs at Kewaunee:
'We looked at all alternatives to keep the unit operating, but we could not make the reductions in the cost without it affecting safety,' [Dominion spokesman Richard] Zuercher said." (emphasis added)
As Howard Learner stated above, such market realities begs the question, which reactors will close next? On Feb. 8th, Entergy's brand new CEO, Leo Denault, when asked why several reactors in his fleet were so financially strapped, admitted in an interveiw with Reuters that:
"...some plants are in the more challenging economic situations for a variety of reasons, including 'the market for both energy and capacity, their size, their contracting positions and the investment required to maintain the safety and integrity of the plants.'" (emphasis added)