Tag Archives: GA PSC

Levy Co. FL nuke likely not to be built

Cost already sunk Kewaunee, Calvert Cliffs, Crystal River, and are gnawing away at San Onofre: now it looks like new owner Duke is not likely to build Progress Energy's Levy County, Florida reactor. All that plus even in Georgia, even against all-powerful Georgia Power, there's a reaction against the cost of the always-later always-more-expensive new nukes at Plant Vogtle on the Savannah River. A reaction that's getting written up in the Valdosta Daily Times.

In the VDT today from AP, Some leaders souring on nuclear power costs. I'm quoting from the abcNews version because it includes the author's name, Ray Henry, and the original date, 3 March 2013. I added all the links and images.

As the cost of building a new nuclear plant soars, there are signs of buyer's remorse.

The second-guessing from officials in Georgia and Florida is a sign that maybe the nation is not quite ready for a nuclear renaissance. On top of construction costs running much higher than expected, the price of natural gas has plummeted, making it tough for nuclear plants to compete in the energy market.

In Georgia last week, Southern Co. told regulators it needed to raise its construction budget for Plant Vogtle in eastern Georgia by $737 million to $6.85 billion. At about the same time, a Georgia lawmaker sought to penalize the company for going over budget, announcing a proposal to cut into Southern Co.'s profits by trimming some of the money its subsidiary Georgia Power makes.

And Southern Company and Georgia Power slipped the Plant Vogtle schedule still more, from 15 to 19 months late.

The legislation has a coalition of tea party, conservative and consumer advocacy groups behind it, but faces a tough sale in the Republican-controlled General Assembly. GOP Rep. Jeff Chapman found just a single co-sponsor, Democratic Rep. Karla Drenner.

That's HB 267: Financing costs; construction of nuclear generating plant. And AP failed to mention Georgia Sierra Club's support for HB 267.

As a regulated monopoly, Georgia Power currently earns about 11 percent in profits when it invests its own money into power projects. Chapman's legislation would reduce those profits if the nuclear project is over budget, as is the current projection.

In Florida, there's a move to completely eliminate Construction Work in Progress (CWIP) such as is being used in Georgia to pre-fund the new Plant Vogtle nukes.

In Florida, lawmakers want to end the practice of utilities collecting fees from customers before any electricity is produced.

Florida only recently got CWIP, but Progress Energy has been quick to profit by it:

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HB 267 Would Limit Georgia Power’s Profits on Vogtle’s Cost Overruns —GA Sierra Club

There’s still time to contact your state legislators about stopping Georgia Power profitting from cost overruns on the new nukes at Plant Vogtle. Georgia Sierra Club spells out why.

Georgia Power’s expansion at Plant Vogtle will bring us power that is dangerous, expensive and unnecessary.

You may remember a controversial bill the Georgia Legislature approved in 2009, SB 31, the Nuclear Construction Work in Progress (CWIP) bill, which forces Georgia Power ratepayers to pay the financing costs during construction, rather than over the life of the plant. Large users of electricity are exempt from the charge, but residential and mom and pop businesses have been paying for two years.

Even after that sweetheart deal, the Public Service Commissioners scrapped their staff proposal to stop the company from profiting on cost overruns for the project after they top $300 million.

The most recent reports from the independent monitor established by the PSC says

that the project is months behind and as of December, $88 million over budget. Georgia Power gets to earn 11.15% return on all expenses approved by the PSC, so the more they have to spend, the more they get to make and the more ratepayers get to pay!

Putting the profit issue aside for the moment, if the Georgia PSC ever decided to disapprove cost overruns, Georgia Power could take a page from the Mississippi Power playbook and just get the Legislature to let them issue bonds to pay for the work.

HB 267 by freshman Rep. Jeff Chapman excludes the collection of any profits on cost overruns beyond the $6.4 billion the Public Service Commission has approved. The bill is co-sponsored by Avondale Estates Democrat Karla Drenner, who is a member of the Utilities Committee, to which the bill was assigned. Passage of this bill would provide an incentive for Georgia Power to keep expenses down at Vogtle, something that SB 31 failed to do.

It isn’t fair for Georgia Power to profit to the tune of over 11% on delays, overruns and mismanagement, so ask your State Representative to support HB 267.

-jsq

From 15 to 19 months late: Plant Vogtle nukes

Surprise! The already-billing but not-built new nukes at Plant Vogtle are going to be even later and cost even more. In December they were to be 15 months late; now it’s 19 months late, and the cost overrun expected is $740 million. History is repeating itself from the last time Southern Company and Georgia Power built nukes on the Savannah River. How about we pass HB 267 to stop Georgia Power from charging that cost overrun to customers?

Kristi Swartz wrote for the AJC yesterday, Vogtle nuclear project to take longer, cost more,

Georgia Power’s Plant Vogtle nuclear expansion project will take about 19 months longer to complete than originally expected and cost about $740 million more than originally thought, the company said Thursday.

Joseph A. “Buzz” Miller, Executive Vice President – Nuclear Development Southern Nuclear Operating Company Georgia Power said its share of the estimated $14 billion project will rise to $6.85 billion, up from $6.11 billion, because of increased capital costs and additional financing costs. Customers, who have been paying the financing costs since 2011, now will pay them for a longer period of time.

And the amount Georgia Power customers have to pay for Construction Work in Progress (CWIP) keeps ratchetting up:

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“It has to close because of the pocketbook.” —Kyle Jones on Maine Yankee nuclear power plant

Instead of demonstrating to influence legislators, sometimes it's better to get elected and legislate: that's what Kyle Jones did in Maine, and he closed the Maine Yankee nuke, de-monopolized the state's electrical utilities, and instituted a 30% renewable energy goal. All this was helped by the nuclear industry's own incompetence.

Bangor Daily News, Page A2, 28 May 1997, Maine Yankee plant may be closed down: Owners weigh repair costs, deregulation,

Page 2A Bangor Daily News 28 May 1997 Cracking in the plant's steam generator tubes, which carry the superheated, radioactive water, was first discovered in 1990. In 1994, Main Yankee officials predicted that the plant's problems were over after they plugged more than 300 of the cracked tubes. However, testing of the tubes during a shutdown for refueling in 1995 revealed as many as 10,000 additional cracked tubes.

Sounds a lot like San Onofre.

At the time, it was estimated that permanently shutting down the plant would cost at least $316 million while, after 23 years of operation, Maine Yankee had collected only $100 million to pay for its decommissioning. The most recent estimate for decommissioning is $369 million, of which only $169 million has been raised as of this month.

Facing the accumulation of these engineering and operational difficulties, the owners of the plant signaled a departure from business-as-usual and, earlier this year, brought in the New Orleans-based Entergy Corp. to provide management services at Maine Yankee.

Oh, my! The same Entergy that's now likely to close Vermont Yankee. And Vermont Yankee wasn’t the first to follow this financial path to closure:

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Duke Energy is closing Crystal River nuclear reactor

Finally! The reactor only 160 miles from here that nobody wanted to pay to fix is closing for good: Duke is closing Crystal River. After Kewaunee and Crystal River closing, which one is next? San Onofre? The never-opened Vogtle 3 and 4?

Ivan Penn wrote for Tampa Bay Times today, Duke Energy announces closing of Crystal River nuclear power plant,

Duke Energy announced early Tuesday it will permanently close the Crystal River nuclear plant that has been shut down since late 2009.

The company said it is reviewing alternatives, including building a new natural gas plant, to replace the power produced by the nuclear facility.

Duke's four coal-fired plants will remain in service at the same Citrus County complex where the nuclear plant, known as CR3, is located.

How about they build offshore wind farms and solar farms instead, like TEPCO is doing near Fukushima? Those can be built on time and on budget, use no fuel, and cause no pollution. And how about rooftop solar for jobs and energy independence?

There's more in the article, including this:

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Denmark beats Georgia Power’s 20 year plan

As anticipated, Georgia Power released that 20-year energy plan Thursday, because they have file one every three years with the PSC. It includes far less solar power than tiny little far-north-of-here Denmark is busily deploying.

The good news: Georgia Power is closing a bunch of coal plants. And this plan makes a nod towards "demand response programs, energy efficiency programs, pricing tariffs and other activities".

The bad news: they're replacing those coal plants with natural gas, and of course "two new state-of-the-art nuclear facilities at Plant Vogtle"; you know, the two Georgia Power has been charging customers for since 2009 while they deliver no electricity. Georgia Power can't even seem to deliver the reactor containment vessels.

But what about renewable energy? Continue reading →

Rural AIDS: poverty the cause, solar power part of the solution

Director Lisa Biagiotti spent two years travelling around the South interviewing people about AIDS to make a film, deepsouth. She found rural AIDS is a bigger and faster-growing problem than AIDS in center cities, yet most health and prevention funding goes to urban areas. The root cause seemed clear to her: poverty. Here’s some deeper dirt (literally) on rural poverty in the U.S., and one thing we know can help with that: distributed solar power, for jobs, for reduced electrical bills, and for energy independence. What politician wouldn’t want jobs for their constituents?

The director said the screening at VSU at the end of November drew more people than the day before in Little Rock. There were clearly more than 150 in the audience in Valdosta. It’s a topic very relevant to here, as Dean Poling wrote in the VDT 26 November 2012,

Organizers note that Georgia is ranked sixth highest nationally for its cumulative number of AIDS cases reported through December 2009. More than 40,000 known HIV/AIDS cases were reported in Georgia as of 2010.

The South Health District’s 10 counties, which include Lowndes and surrounding counties, report 950 confirmed cases of HIV/AIDS, while many more are likely infected and risk becoming sick because they are not being treated. More specifically, there are about 460 reported cases in Lowndes County.

In reporting these numbers, HIV is the virus (HIV disease) and AIDS is the medical diagnosis made by a doctor of the symptoms, according to South Health District.

It’s a great movie and I highly recommend it. Director Biagiotti spent a substantial amount of her own money and two years to make this film, yet there are aspects she could only note in passing, such as incarceration. She can’t be expected to have researched every aspect; maybe somebody else can step up and help follow more threads.

The movie starts with some maps about poverty and AIDS in the South. It did not, however, look outside the South for poverty. Here are better poverty maps, from the CDC:

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Shutdown at San Onofre: permanent this time?

California only has a couple of nuclear reactor locations (unlike the 32 reactors within 500 miles of here), and one is in even worse shape than the other: San Onofre, almost as bad as Crystal River. I’m sure Southern Company would never cut corners or have design or construction problems at Plant Vogtle, right?

Harvey Wasserman wrote for AlterNet 7 January 2013, Showdown at San Onofre: Why the Nuclear Industry May Be Dealt a Big Blow,

Perched on an ocean cliff between Los Angeles and San Diego, the reactors’ owners cut unconscionable corners in replacing their multi-million-dollar steam generators. According to Russell Hoffman, one of California’s leading experts on San Onofre, inferior metals and major design failures turned what was meant to be an upgrade into an utter fiasco.

Installed by Mitsubishi, the generators simply did not work. When they were shut nearly a year ago, tubes were leaking, banging together and overall rendering further operations impossible.

Southern California Edison and San Diego Gas & Electric have unofficially thrown in the towel on Unit 3. But they’re lobbying hard to get at least Unit 2 back up and running. Their technical problems are so serious that they’ve asked the Nuclear Regulatory Commission to let them run Unit 2 at 70% capacity. In essence, they want to “see what happens” without daring to take the reactor to full power.

The NRC has expressed serious doubts. On December 26 it demanded answers to more than 30 questions about the plant’s technical realities. There have been assertions that unless San Onofre can be shown as operable at full power, its license should be negated.

It’s good the NRC got around to doing something, after Continue reading →

Failed concrete: the bane of nuclear reactors

Let’s not forget the failed concrete on which Plant Vogtle’s unprotected stranded reactor vessel is supposed to sit.

A week before the reactor vessel train wreck, news stories said concrete pouring was delayed due to “noncompliant rebar”. Thomas Clements elaborated for the Aiken Leader 14 January 2013, Vogtle AP1000 Nuclear Reactor Vessel Discovered Unprotected, Stranded in Savannah Port since December 15 Shipment Failure,

Due to chronic delays in the pouring of “nuclear concrete” for the basemat of the AP1000 units at Vogtle and VC Summer, it remains unknown when or if any reactor vessels can actually be placed into the excavated holes at the sites. A January 10 meeting of the NRC confirmed that another basemat-related “license amendment request” (LAR) was soon to be filed by SCE&G for its AP1000 project and that the target date for granting of the LAR was March 18. It appears that the Vogtle project has fallen behind the V.C. Summer project and no strategy for the filing of a similar and necessary LAR by Southern Company is known.

Concrete, the long-time bane of Seabrook Station and also what’s keeping Crystal River shut down because nobody wants to pay the billions of dollars it would take to fix it.

 

What say we call the whole thing off, like Dominion Power did with its existing Kewaunee nuke, and TEPCO and NRG did with their plans for new South Texas nukes.

 

Maybe it’s a sign that meanwhile Google has invested a billion dollars in wind and solar and gotten 2 gigawatts of power, almost as much as the 2.2 GW the two new Vogtle nukes were supposed to produce, except Google’s solar and wind projects are online on time, and for less than just the cost overruns at Vogtle.

The Georgia legislature is in session. You can contact your legislator or the PSC today about toppling Southern Company’s three-legged nuclear regulatory-capture stool and fixing that 1973 Territoriality Law so we can get on with solar and wind in Georgia, for jobs and energy independence, and oh by the way clean air and plenty of clean water.

-jsq

Centralized Nuclear Bad Investment?

A writer for Forbes spells out the question of nuclear investment: how can something that expensive, over-budget, late, and phenomenally risky be a good investment, especially when cheaper and faster energy sources are readily available?

Peter Kelly-Detwiler wrote for Forbes today, New Centralized Nuclear Plants: Still an Investment Worth Making?

Just a few years ago, the US nuclear renaissance seemed at hand. It probably shouldn’t have been. Cost overruns from Finland to France to the US were already becoming manifest, government guarantees were in doubt, and shale gas drillers were beginning to punch holes into the ground with abandon.

Then came Fukushima. The latter proved a somewhat astonishing reminder of forgotten lessons about nuclear power risks, unique to that technology: A failure of one power plant in an isolated location can create a contagion in countries far away, and even where somewhat different variants of that technology are in use. Just as Three Mile Island put the kaibosh on nuclear power in the US for decades, Fukushima appears to have done the same for Japan and Germany, at a minimum. It certainly did not help public opinion, and at a minimum, the effect of Fukushima will likely be to increase permitting and associated regulatory costs.

He goes into detail: they take too long (while gas and solar got cheaper), they’re extremely expensive to build and run, and they’re all-or-nothing investments.

I was going to compile this list of recent nuclear financial failures, but he saves us all the trouble:

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