March 15, 2008

Global Monitor (March 2008)

U.S. nuclear plants have record year

U.S. nuclear power plants posted all-time record highs for electricity production and efficiency in 2007, according to preliminary figures released by the Nuclear Energy Institute. U.S. nuclear plants generated approximately 807 billion kWh in 2007, exceeding by more than 2% the previous record high of 788.5 billion kWh set in 2004.

The 104 nuclear plants operating in 31 states also achieved a record-setting average capacity factor of 91.8%, surpassing the 2004 record of 90.1%, according to preliminary figures. For example, Exelon Nuclear's 17 generating units produced a total of 132.3 million MWh in 2007—the highest annual production ever for the nation's largest operator of commercial nuclear reactors. Exelon's fleet also achieved an average capacity factor of 94.5%—an all-time record for the company and the fifth consecutive year the number has been over 93%.

The industry's average electricity production cost—encompassing expenses for uranium fuel plus operations and maintenance—also set a record last year. Average production cost was 1.68 cents/kWh in 2007, besting the previous low of 1.72 cents/kWh set in 2005, according to preliminary data.

Attesting to the affordability of nuclear energy, 2007 was the ninth straight year that the industry's average electricity production cost has been below two cents/kWh and the seventh straight year that nuclear plants have had the lowest production costs of any major source of electricity, including coal- and natural gas–fired power plants.

Electricity production from nuclear power plants was bolstered by the refurbishment of Browns Ferry 1 in Athens, Ala., which returned to service in May 2007. Tennessee Valley Authority (TVA) completed the 1,155-MW project within its five-year schedule at a cost of about $1.8 billion. The industry also implemented plant “uprates,” or power production capacity increases, at two plants: a 55-MW increase at Browns Ferry 1 (Figure 2) and a 13.7-MW increase at Progress Energy's Crystal River reactor in Florida. Uprates pending for 2008 include 15% power uprates for each of the three Browns Ferry units. Approval for them is expected this fall. A total of 912 MW of uprates at 11 individual units are pending approval in 2008, according to the Nuclear Regulatory Commission.

2. New and uprated. The Nuclear Regulatory Commission approved a 5% power uprate for Browns Ferry 1 restart, and Tennessee Valley Authority has an application for 15% power uprates pending for all three Browns Ferry units. Approval is expected in the fall. Courtesy: TVA

Final figures on the industry's 2007 performance are expected this spring.

Westinghouse wins TVA contract

Westinghouse Electric Co., a group company of Toshiba Corp., has won a contract valued at approximately $200 million in support of the completion of Tennessee Valley Authority's (TVA's) Watts Bar Nuclear Plant Unit 2 (Figure 3), located near Spring City, Tenn. When completed, the plant will produce approximately 1,200 MW of power. The TVA estimates the 54-month refurbishment will cost about $2.49 billion.

3. Finish what you start. Westinghouse will supply reactor components for TVA's 54-month-long restart of Watts Bar Unit 2. Courtesy: TVA

Westinghouse's scope includes the upgrade and replacement of most instrumentation and control systems, supply of new reactor coolant pumps, steam generator services, crane replacement and upgrades, nuclear steam supply system plant design engineering services, drive rods, licensing services, and safety analysis.

The TVA-planned project duration is 54 months. Commercial operation of the unit is scheduled for early 2012.

Watts Bar Unit 2, originally a Westinghouse pressurized water reactor, was approximately 80% complete when the utility halted construction in 1985, citing a projected decrease in electricity demand. In 2007, TVA announced that it would complete Unit 2 and that Bechtel Power Corp. would lead the engineering, procurement, and construction work.

UniStar Nuclear to file for COL

UniStar Nuclear Energy (UNE), a strategic joint venture between Constellation Energy and the EDF Group, announced that it has notified the Nuclear Regulatory Commission (NRC) of its plans to submit a combined construction and operating license (COL) application in late 2008 for a potential advanced-design nuclear reactor at Constellation Energy's Nine Mile Point Nuclear Station in upstate New York.

UNE submitted a letter on Feb. 8 to the NRC formally selecting Nine Mile Point as the site for a potential “U.S. evolutionary power reactor” (EPR) (Figure 4). UniStar noted that it has yet to make a final decision to build a new reactor at Nine Mile Point.

4. New NY nuke. UniStar Nuclear has announced its intent to file a combined construction and operation license based on the U.S evolutionary power reactor design (shown here in an artist's rendering) for its Nine Mile Point Nuclear Station. Source: NRC

“We are working to be in a position to make a decision to break ground for a new reactor at the Calvert Cliffs site at the end of 2008, depending upon the outcome of several issues, including economics and federal loan guarantees,” said Michael J. Wallace, chairman of UniStar and executive vice president of Constellation Energy.

In addition to advanced-design reactors in New York and Maryland, UniStar is also working with PPL and AmerenUE, as well as emerging energy companies such as AEHI and Amarillo Power, to develop potential U.S. EPRs in Pennsylvania, Missouri, Idaho, and Texas.