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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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Thursday
Jan172013

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

The magnitude of Crystal River's cracked concrete containmentAs 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 Nuclear's dirty dozen atomic reactorsEntergy'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.

Thursday
Jan172013

Friends of the Earth's expert Arnie Gundersen defends emergency enforcement petition on San Onofre 2 & 3 steam generator failures

A Bathtub Curve for Nuclear Accidents, compliments of David Lochbaum, Union of Concerned Scientists. "Bathtub" refers to the curve's shape.

The premature degradation of San Onofre Unit 2 and 3's replacement steam generators has reportedly cost California ratepayers a whopping billion dollars and counting!

Friends of the Earth's expert witness, Arnie Gundersen of Fairewinds Associates, addressed a U.S. Nuclear Regulatory Commission (NRC) Petition Review Board yesterday, regarding the premature, severe degradation of Replacement Steam Generator tubes at San Onofre nuclear power plant a year ago. The damage resulted in a tube failure and radioactive steam release, as well as the year-long and counting shutdown of San Onofre Units 2 and 3.

Arnie's slide presentation can be viewed online. He concluded that "San Onofre was a 'near miss.' The tube failures at San Onofre are the worst nuclear equipment failures since the near miss at Davis-Besse in 2002." (slide #36). He quoted NRC's own Augmented Inspection Team report: "Although in this case the degraded condition of the tubes was manifested as a small primary to secondary leak, it is possible that a full blown rupture could have been the first indication."

While the Feb. 2000 Indian Point old steam generator tube rupture, and the Feb./March 2002 Davis-Besse lid corrosion hole, were "break-down phase" accidents, San Onofre 2 & 3's Jan. 2012 steam generator tube degradation is actually a "break-in phase" accident. The replacement steam generators were only a year or two old (see the Bath Tub Curve for Nuclear Accidents, above left).

Tuesday
Jan152013

State of Vermont makes its case against Entergy Nuclear Vermont Yankee at 2nd Circuit Court of Appeals

Bill Sorrell and David Frederick answer questions from the press in front of the Thurgood Marshall Federal Court House, Foley Square, Manhattan. Photo by Ricard Watts. (Chris Williams of CAN and VYDA is visible, back right)The fate of the State of Vermont's long struggle to shutdown Entergy Nuclear's Vermont Yankee (VY) atomic reactor (a General Electric Mark I Boiling Water Reactor, identical in design to Fukushima Daiichi Units 1 to 4) now rests in the hands of a three-judge panel at the 2nd Circuit Federal Court of Appeals in Manhattan. Yesterday, oral arguments were heard regarding Entergy v. Shumlin et al.Vermont is seeking to overturn a Brattleboro lower court judge's ruling a year ago that state laws had improperly strayed into radiological safety matters, the sole jurisdiction of the federal Nuclear Regulatory Commission, as settled by the 1983 PG&E (Pacific Gas and Electric) U.S. Supreme Court ruling. In addition to a large turn out of journalists from Vermont and beyond, a number of long-time Vermont Yankee opponents sent representatives to witness the proceeding, including Beyond Nuclear, Conservation Law Foundation, Citizen Awareness Network (CAN), Physicians for Social Responsibility, and Vermont Yankee Decommissioning Alliance (VYDA). By most accounts, the State of Vermont --represented by Attorney General William Sorrell, and David Frederick of the Washington, D.C. law firm Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C. (see photo) -- more than held its own.

In March 2011, just days after the nuclear catastrophe began to unfold at Fukushima Daiichi in Japan, the U.S. Nuclear Regulatory Commission rubberstamped a 20-year license extension at VY. This came despite a Feb. 2010 vote of 26 to 4 by the State of Vermont Senate, led by Senator Pro Tem (now Governor) Peter Shumlin, that blocked VY's license extension. Costs to the State of Vermont of decommissioning and long-term high-level radioactive waste storage, if Entergy should go bankrupt and abandon the site, figured prominantly in yesterday's arguments.

Richard Watts (who took the photo above), author of Public Meltdown: The Story of the Vermont Yankee Nuclear Power Plantcovered the oral arguments on his blogThe Vermont Digger reported on this story, including a link to the audio of the full 37 minute long oral arguments. Vermont Public Radio filed two stories: "At Stake in Yankee Appeal: State's Rights and a Big Legal Bill," and "Appeals Judges Focus on 'Legislative Intent' in Yankee Case." The Associated PressBurlington Free PressBrattleboro Reformer, and Bloomberg have also reported on this story.