Tag Archives: overrun

Nuclear an economic boon despite high costs –Tim Echols

Some of the “stuff” that happened before and after GA PSC Tim Echols cheered nuclear Friday.

GA Public Service Commissioner Tim Echols wrote in the Athens Banner-Herald Friday Echols: Nuclear power can be economic boon to Southeast,

Just when we thought nuclear power might be on a comeback, well, stuff happened. Only time will tell if Georgia and South Carolina can “jump-start” a nuclear renaissance. Let’s hope we can, because low-cost base-load energy — the amount of electricity available 24 hours a day — is a key to economic growth.

Stuff like this happened:

Already: Solar grid parity without subsidies in India and Italy

Solar power is going so well worldwide that Deutsche Bank has just increased its projections for global demand, noting that India and Italy have already in 2013 reached grid parity without subsidies with other sources of energy, and it expects the rest of the world to follow as early as 2014. The big winner is rooftop solar. Is Georgia paying attention?

Becky Beetz wrote for Global PV 26 February 2013, Deutsche Bank: Sustainable solar market expected in 2014,

Buoyed by bullish demand forecasts, and increasing utilization rates and pricing, Deutsche Bank forecasts a solar market transition from subsidized to sustainable in 2014. Italy REC solar photovoltaic plant

The German bank has raised its 2013 global solar demand forecast to 30 GW — representing a 20% year-on-year increase — on the back of suggestions of strong demand in markets including India, the U.S., China (around 7 to 10 GW), the U.K. (around 1 to 2 GW), Germany and Italy (around 2 GW).

Rooftop installations are, in particular, expected to be a main focus, says Deutsche Bank. A trend for projects being planned with either “minimal/no incentives” has also been observed, despite the belief that solar policy outlooks are improving, particularly in the U.S., China and India, and “other emerging markets”.

More analysis by Jeff Spross in ThinkProgress 3 March 2013, Solar Report Stunner: Unsubsidized ‘Grid Parity Has Been Reached In India’, Italy–With More Countries Coming in 2014.

As Renew Economy also points out, this is the third report in the past month

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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

Hatch 1 nuclear reactor down to 40% power Sunday: why?

Why is Plant Hatch Unit 1 running at well below capacity? Saturday 19 Jan 2013 that nuclear plant was at 100%, according to the NRC, yet Sunday it was down to 45%, then 40% Monday and 64% today. What's going on at Hatch 1? And what happened to nuclear supposedly being 24/7?

There's no event report about this from the NRC; the last item the NRC has on Hatch 1 seems to be from 2003. Southern Company provides no information on this event. Another source (Platts, 4 January 2013) says Hatch 2 (and Vogtle 2) are to refuel in the first half of this year, among Fifty-six US nuclear units to shut for refueling in 2013. But Hatch 1 is not on that list, and a similar Hatch 1 brownout happened 5 and 6 January:

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First ALEC, now Heartland Institute: losing sponsors

Heartland Institute, one of only two organizations to field a speaker for continuing Plant Vogtle delays and cost overruns at this week's GA PSC hearing, has been dropped by every pharmaceutical company. When you're down to Heartland Institute and renewable-energy-opposing and astroturf-funding super-lobby group ALEC, itself rapidly losing members (so bad even Bank of America has dumped ALEC); and when your public hearing speakers are 40 to 1 against continuing with Southern Company and Georgia Power's nuclear boondoggle, maybe it's time to end it.

Brad Johnson wrote for thinkprogress 19 December 2012, Heeding Public Outrage, Pfizer Drops Climate Denial And Tobacco Front Group Heartland Institute,

The pharmaceutical giant Pfizer (PFE) has confirmed that it will no longer support the Heartland Institute, a political advocacy group that questions the science of climate change and tobacco smoking. Forecast the Facts, which is leading the campaign calling on corporations to drop Heartland, was informed of the decision by Pfizer's Corporate Secretary Matthew Lepore. Pfizer was a major donor to Heartland, giving $45,000 in 2012 alone.

Pfizer's decision means that there are no longer any pharmaceutical companies known to support the Heartland Institute.

Pfizer's last contribution to Heartland was in 2012. Pfizer's decision follows a groundswell of public outrage over the corporate support for the Heartland Institute's toxic behavior, including a billboard campaign that equated believers in climate change with serial killers such as the Unabomber. Over 150,000 people have signed petitions to corporate leaders to drop Heartland. Pfizer is the 21st company to end its support for Joseph Bast's organization, joining its competitors Amgen (AMGN), Eli Lilly (LLY), Bayer (BAYRY), and GlaxoSmithKline (GSK), as well as major companies like General Motors (GM), State Farm, and PepsiCo (PEP).

That’s the best you’ve got for support, PSC, and you’re pretending continuing to let Southern Company and Georgia Power run up a bill of $billions is in the best interests of the people of Georgia?

-jsq

15 month delay for new Plant Vogtle nukes —state inspector at PSC

Southern Company's new nukes are delayed at least fifteen months, at least a billion over budget and rising, and not organized to meet safety filing requirements, yet the Georgia PSC yesterday let SO pass the buck to contractors and Georgia Power continue charging customers for that boondoggle, despite 40 to 1 opposition from attendees.

Ellen Reinhardt wrote for GPB News yesterday, Plant Vogtle Construction Costs Rising,

An independent auditor told utility regulators Plant Vogtle construction will be delayed at least 15 months and go millions of dollars over budget.

Nuclear engineer William Jacobs said poor construction material, contractor mistakes and oversight delays will mean the Unit 3 reactor won't be ready until July of 2017.

That's 15 months later than planned.

Surprise! From $0.66 to $8.87 billion: original Plant Vogtle nuclear costs Who could have expected that, given that back in the 1970s and 1980s costs blew up 26 times the original estimate. Back then SO complained about paperwork after Three Mile Island. They're trying that same excuse now, but even a former Commissioner-turned-lobbyist is incredulous, as Kristi Swartz reported for the AJC yesterday, Monitor: Paperwork problems a drag on Vogtle schedule,

“It's taken eight months to handle paperwork deficiencies?” asked Bobby Baker, a former PSC commissioner who now represents Resource Supply Management, an energy consultant that works with large commercial, institutional and industrial electric customers.

A current Commissioner was almost as incredulous:

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Original nuclear Plant Vogtle cost overruns

Why should we expect Southern Company to be any better at controlling costs now than back in the 1970s and 1980s when its original nukes on the Savannah River went massively over budget? Massively as in 26 times as much per unit as originally projected.

Kristi Swartz wrote for the AJC 30 Jan 2012, A financial look at Plant Vogtle nuclear projects,

From $0.66 to $8.87 billion: original Plant Vogtle nuclear costs When the two original nuclear units at Plant Vogtle were planned, the total cost estimate was $660 million.

Yet, as Jon Gertner reported for NYTimes 16 July 2006,

The plant took almost 15 years to move from blueprints to being operational. And by the time it began producing electricity in the late 1980’s, its total cost, $8.87 billion, was so far overbudget that Vogtle became yet another notorious example of the evils of nuclear energy….

The grand plan was to have four reactors. Instead, it was scaled back to two, Vogtle Unit 1 (finished in 1987) and Vogtle Unit 2 (1989).

That’s right, 4 nuclear units were planned for $660,000,000 fifteen (15) years later only 2 units were built, for $8,870,000,000. That’s more than $8 billion in cost overruns, or more than 13 times the original cost estimate. So per unit, that’s more than 26 times the original estimate, or more than $4 billion per unit.

Swartz provided a handy table of cost estimates by year:

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AP nuclear slant through omission

What's missing in AP's reporting and analysis of nuclear cost overruns?

AP published this Tuesday, News Guide: Nuclear industry facing cost pressures, perhaps as a companion to its story of the same day, Building costs increase at US nuclear sites. Like that story, the news guide is full of accurate and useful information about nuclear cost overruns, and even this good bit of analysis:

Q: Why do building costs matter to customers?

A: Because customers ultimately pay for the construction costs as part of their monthly power bills. The more a plant costs, the more customers will pay.

Yep, Georgia Power customers are already paying through that stealth tax, the construction work in progress (CWIP) charge for new nuke electricity they won't get for years if ever.

Yet something is missing. Can you spot it?

Hint:

Q: How does that compare with building coal- or gas-powered plants?

Good question, and AP correctly answers that nuclear plants are far pricier than coal or gas plants.

But are those three the only sources of energy? Where is the comparison to solar and wind power?

Well, maybe AP won't do it, but here it is already, Georgia Power deploys 1 MW solar; could have done 330 MW by now. Short version: for less than the amount of federal loan guarantees for Plant Vogtle, Southern Company could have built Georgia more solar energy production per capita than Germany, the world leader, has.

Why are we letting Georgia Power and the Southern Company pour our money down that pit near the Savannah River when they could be spending it to deploy solar and wind for more jobs, energy independence, and more profit for Georgia Power and SO? Oh, and clean air and plenty of clean water, too.

-jsq

Commission voted for $128,497.05 road cost overrun without discussion @ LCC 2012 Jan 10

Discrepancy? What discrepancy?

Staff presented the agenda item “7.b. Entrance Gate at Davidson and Roberts Roads”:

Lowndes County received a $2M grant from the Federal Highway Administration for construction of a new Moody AFB entrance gate, the gate to be located located at the intersection of Davidson and Roberts Roads. $477,991 of this money has already been taken for the railroad crossing improvements, leaving a balance of $1.52 million. The low bid is from Scruggs Company, $1,648,497.05.
Wait, what? The low bid is for more than the funds available? Surely somebody will explain that?

Nope, no discussion. Instead, Commissioner Crawford Powell said:

I’ll make a motion we approve the bid as presented by staff.
Commissioner Evans seconded, and they all voted for it. Hey, what $128,497.05 discrepancy?

Here’s Part 1 of 2:


Commission voted for $128,497.05 road cost overrun without discussion @ LCC 2012 Jan 10 Part 1 of 2:
Regular Session, Lowndes County Commission (LCC),
Valdosta, Lowndes County, Georgia, 10 January 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

If we look at the previous morning’s work session (9 January 2012), we do find a bit more information. The grant was presented as involving both the Federal Highway Administration and Homeland Security, and:

Mr. Fletcher has additional information.
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