"Worst Week Since Fukushima: 4 Setbacks in 3 Days are Latest Stumbles for Nuclear Power Industry"

Former NRC Commissioner Peter Bradford, and energy economist Mark Cooper, both of the Vermont Law School, as well as Dan Hirsch of the Committee to Bridge the Gap, held a telephone press conference yesterday on the subject of "WORST WEEK SINCE FUKUSHIMA: 4 MAJOR SETBACKS IN 3 DAYS ARE LATEST STUMBLES FOR U.S. NUCLEAR POWER INDUSTRY." An audio recording of the news conference has been posted online.

The four setbacks in three days include: 1) the cancellation of two proposed new reactors at South Texas Project, because they violate U.S. law against foreign ownership of nuclear power plants; 2) Southern California Edison's threat that if NRC does not allow it to restart operations at its crippled San Onofre nuclear power plant, it will permanently shutdown both reactors there; 3) Duke Energy's cancellation of two proposed new atomic reactors at its Shearon Harris nuclear power plant in North Carolina; and 4) Florida's amendment to its previously highly permissive "advance cost recovery" or "Construction Work in Progress" law, via which ratepayers have been gouged to pay for proposed new reactors, when there is no guarantee the proposed new reactors will ever actually get built or generate electricity.

Peter Bradford also added the May 7th shutdown of Dominion's Kewaunee atomic reactor in WI -- despite the 20 years of operating license still left to it -- as another example of the "worst week since Fukushima" for the U.S. nuclear power industry.

Nuclear Relapse? Canceled! Nuclear power? Game over!

Peter BradfordThe only way to build new atomic reactors in the U.S., reports Peter Bradford in the Bulletin of Atomic Scientists, is to gouge ratepayers.

As reported by ScienceDaily in an article entitled "U.S. May Face Inevitable Nuclear Power Exit,"  the Bulletin of Atomic Scientists (BAS) has concluded its three part "Nuclear Exit" series with a look at the United States. The previous two installments examined the nuclear power phase-out in Germany, and the nuclear power status quo in France.

The BAS U.S. coverage features former U.S. Nuclear Regulatory Commission Commissioner, Union of Concerned Scientists board member, and Vermont Law School professor Peter Bradford's "How to close the U.S. nuclear industry: Do nothing," which concludes that, without massive taxpayer or ratepayer infusions, almost all proposed new reactors will not happen, and currently operating reactors will permanently shutdown by mid-century, unless the NRC rubber-stamps 80 years of operations (as opposed to the current, already risky 60).

In a section entitled "Picturing a U.S. phase-out," Bradford writes:

"The countries that have recently decided to phase out nuclear energy have done so by governmental fiat, complete with statutory deadlines both for individual reactors and for nuclear power in general. But no such sweeping action is really necessary in countries that have chosen to procure power generation through market mechanisms. The US experience demonstrates that absence of governmental intervention will create a glide path, determined in part by how long a country is prepared to allow its oldest reactors to operate, but in fact by the interplay between gas-driven electricity prices and the point in time at which older plants must make significant capital investments." (emphasis added)

Bradford points out that "By this standard, units at Crystal River and San Onofre--currently closed by major equipment failures--appear to be serious shutdown candidates, though they may survive, because they are located in Florida and California, respectively, states in which regulators can override market verdicts and impose their repair costs on customers."

In fact, Duke/Progress has thrown in the towel on Crystal River, announcing that it is now permanently shutdown. And Friends of the Earth, along with a groundswell of grassroots anti-nuclear activism in southern California, is doing all it can to keep San Onofre Units 2 and 3 shutdown for good, as well.

A spokesman for Dominion Nuclear admitted that the "purely economic reasons" which led to the utility's decison to close its Kewaunee atomic reactor on the Lake Michigan shoreline in Wisconsin -- the first atomic reactor shutdown announcement in 15 years in the U.S. -- was the inability to make needed, major safety repairs andturn a profit, given the competitive electricity market.

And Entergy Nuclear's brand new CEO, Leo Denault, admitted to Reuters that numerous of his "dirty dozen" atomic reactors -- especially the merchant plants (those in deregulated, competitive electricity markets) -- face tough economic challenges, due to costly upkeep (a.k.a., essential safety-significant repairs and component replacements).

Reuters reported: "[Denault] said 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)

At its Palisades atomic reactor on the Lake Michigan shore in southwest Michigan, Entergy has chosen to foregonumerous major, needed repairs (such as replacing the badly corroded reactor lid; replacing the deteriorated steam generators, for the second time in the plant's history; dealing with the worst embrittled reactor pressure vessel in the U.S.; making needed fire protection upgrades, etc.) for six long years now, apparently in order to "balance the books" -- that is, to prioritize profits (and executive salaries, and shareholder returns) over public safety.

By approving $850 million for 20-year extension at Cook Nuclear, MI Public Service Commission serves the public up for dinner

NRC file photo of AEP's twin reactor Cook nuclear power plant on the Lake Michigan shoreline in Bridgman, Michigan

The Michigan Public Service Commission (MPSC) has blessed a new form of Construction Work in Progress (CWIP), to the benefit of the nuclear utility, American Electric Power (AEP), at the expense of Michigan ratepayers. The MPSC has approved $850 million, for repairing and refurbishing the nearly four decade old Cook nuclear power plant (see photo, left), which has received a rubber-stamp from the U.S. Nuclear Regulatory Commission (NRC) for a 20-year license extension. Cook Units 1 & 2 represent but two of 73 such reactor license extension rubber-stamps handed out by NRC since the year 2000.

Beyond Nuclear media statement by Kevin Kamps, "By approving $850 million for 20-year extension at Cook Nuclear, MI Public Service Commission serves the public up for dinner."

Additional Background on AEP's Cook nuclear power plant.

"A Bathtub Curve for Nuclear Accidents" (so-named because of the graph's shape, showing that as atomic reactors, as at Cook, age, the risk of catastrophic accidents increases, due to break-downs), compliments of David Lochbaum, Director, Nuclear Safety Project, Union of Concerned Scientists. The meltdown at Three Mile Island (1979) and the explosion and fire at Chernobyl (1986) are referred to as "break-in phase," the disasters occurring due to bugs in the systems being worked out the hard way, operator inexperience, etc. Indian Point, NY's steam generator tube rupture (Feb. 2000) and Davis-Besse, OH's reactor lid corrosion hole near-miss (Feb.-March 2002) are "break-down phase" accidents, due to age-related equipment failure.

The nuclear relapse has derailed -- literally!

Photo by Tom Clements, Alliance for Nuclear Accountability (ANA)Tom Clements of Alliance for Nuclear Accountability in South Carolina has documented, in photo and blog, a most remarkable development: the AP1000 nuclear reactor vessel targeted at Vogtle, Georgia has been discovered unprotected, stranded in Savannah Port since a December 15 shipment failure. Tom's remarkable blog is posted at the Aiken Leader. Connect Savannah has also reported on the "Nuclear Train Wreck."

As Tom has described it: 'the reactor pressure vessel (RPV) for the chronically delayed Vogtle AP1000 reactor construction project near Waynesboro, Georgia sits stranded and seemingly unprotected in the port of Savannah. The special railroad car carrying the 300-ton vessel had unknown mechanical problems on December 15 on exiting the port.  The NRC has said that the vessel only got one-quarter mile before a sound was heard and the car stopped.  Plans by Westinghouse and Southern Company to move the vessel are unknown. It is also unknown if the railroad car can be repaired and used or if the railroad company which owns the line is concerned that the rail car might break down again on its line in an in accessible place.  Meanwhile, the apparently unguarded reactor might be subject to sabotage and sits in apparent violation of NRC quality assurance and "administrative control" regulations.'

Not only the Vogtle, GA proposed new AP1000s, but also the proposed AP1000 "new build" at Summer, SC, are currently largely to entirely financed through "Construction Work in Progress."

Update on January 22, 2013 by admin

Photo by Tom Clements, Alliance for Nuclear AccountabilityIn a Jan. 22nd update entitled 'Vogtle Nuclear Reactor Still Stranded in Savannah; Pouring of “Nuclear Concrete” for Reactor’s Basemat Delayed Yet Again as Embarrassment and Costs Mount,' Tom Clements of Alliance for Nuclear Accountability gives the latest on the failed shipment of an AP-1000 reactor pressure vessel (RPV) from the Port of Savannah, GA bound for the Vogtle nuclear power plant in Georgia. This includes photos taken by Tom on Jan. 19th (see photo, left). Remarkably, not only Southern Co., but also Westinghouse and even the Korean manufacturer of the RPV have remained silent about the failed shipment, the condition of the RPV, and plans for next steps.

Meanwhile, not only Vogtle 3 & 4, but also the proposed new AP1000 at Summer nuclear power plant in South Carolina, have made LARs (License Amendment Requests) due to difficulties encountered in the pouring of nuclear-grade concrete for the base mat under the reactors and containments themselves. The consequent delays, and hence cost overruns, associated with all these ongoing problems could well be substantial.

As Tom Clements of ANA wrote regarding the photo (above, left): 'Photo taken on January 19 of close-up of Schnabel rail car with Vogtle "reactor pressure vessel"  hidden by a tarp.  The 300-ton reactor vessel was manufactured by Doosan in Korea and shipped through the Panama Canal to Savannah.  More photos are linked at [http://aikenleader.villagesoup.com/p/vogtle-nuclear-reactor-still-stranded-in-savannah-pouring-of-nuclear-concrete-for-reactor-s-basema/951066], which also includes a link to the January 14 article which has more photos.  How long will this embarrassing and potentially costly situation continue?  It's time for Westinghouse and Southern Company to come clean about the reactor shipment but will the companies, which are profiting due to an unjust Georgia law which forces rate payers to pay in advance for the Vogtle AP1000 project, continue their perplexing silence?  It is believed that South Carolina Electric & Gas (SCE&G) has a similar Schnabel rail car, owned by Westinghouse, at its disposal in the port of Charleston, where components for the V.C. Summer AP1000 are received.  Given what has happened with the Vogtle reactor shipment, will problems develop if a similar shipment is ever undertaken from Charleston to SCE&G's V.C. Summer site near Jenkinsville, South Carolina?'

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.” '

However, he points out that the only proposed new reactors that seem to be moving ahead are those privileged by Construction Work in Progress (CWIP) funding. He writes:

'In Georgia, Vogtle Units 3 and 4 (owned jointly by a number of utilities, including Georgia Power) appear in somewhat better shape, but issues have cropped up there as well.  Customers currently pay $10 per month in advance to cover financing associated with the two 1,117 MW units.  Georgia Power is allowed by legislation to recover $1.7 bn in financing costs of its estimated $6.1 bn portion of the $14 bn plant during the construction period.  However, there have already been some cost problems, and Georgia Power is disputing its responsibility to pay $425 million of overruns resulting from delays in licensing approvals.  Total cost excesses to all partners total $875 mn.  The two units were expected to come online in 2016 and 2017, but in a Georgia PSC meeting in December, an independent monitor noted that expected delays of fifteen months are largely as a result of poor paperwork related to stringent design rules and quality assurance.  Those delays will likely continue to cost more money...

With low natural gas prices, efficient combined cycled turbines, more efficient renewables and a host of more efficient end-use technologies, that’s a bet fewer and fewer seem wiling to take.  Unfortunately for ratepayers at some utilities, they are at the table whether they like it or not…' (emphasis added)

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.”