Tag Archives: Public Citizen

Change the Atomic Energy Act? How about change the Georgia Electric Territorial Act?

In reaction to the NRC denying a nuclear permit for Calvert Cliffs, some nuclear backers suggest changing the Atomic Energy Act of 1954 to permit majority foreign ownership of nuclear reactors. What will they suggest next? Asking Iran to invest in U.S. nukes?

Steve Skutnik wrote for http://theenergycollective.com 5 September 2012, A cost-free way to open up nuclear investment,

If this seems entirely backward in a world of global production and investment, that’s because it is. The current regulation is an artifact of the Atomic Energy Act of 1954, which first authorized private ownership of nuclear facilities. (Prior to this—per the Atomic Energy Act of 1946, all nuclear technology was considered a state secret, during the short time in which the U.S. enjoyed a monopoly on the technology.)

Is there any real compelling reason for restrictions on foreign ownership and investment in nuclear facilities to exist at a time when the U.S. holding a monopoly on the technology has long since passed? Issues of safety here of course are irrelevant—the facilities would be licensed and regulated by the NRC, just as any other nuclear facility is now. About the only salient objection is the political one—i.e., the implications of a foreign entity maintaining controlling ownership in key infrastructure. (Although it’s hard to see anyone getting particularly upset about the reverse—U.S. entities owning a controlling stake in infrastructure in other nations.)

Yeah, sure, strict regulation will deal with that, just like it prevents fracking from setting drinking water on fire, or BP from poisoning the Gulf. The new NRC head is maybe well-meaning, but it’s the same NRC that gave Vogtle 1 a clean bill just before it had to shut down and the same NRC that’s ignoring cancer in Shell Bluff.

Oh, by the way, the article gets to the main point eventually:

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NRC rejects nuke permit for EDF in Maryland

French nuclear operator Électricité de France (EDF) was denied a license last week for the proposed Calvert Cliffs nuclear reactor in Maryland, because the Atomic Energy Act of 1954 prohibits majority foreign ownership of nuclear plants. EDF now has 60 days to find a U.S. partner, or give up the project. Who could the possible suitors be? Hint: think southeast.

The handwriting was on the wall two years ago when Constellation Energy pulled out of the project. Jim Polson and Alan Katz wrote for Bloomberg 10 October 2010, Constellation Drops Nuclear Plant, Denting EDF’s U.S. Plans,

Constellation Energy Group Inc. pulled out of negotiations on a $7.5 billion loan guarantee to build a nuclear reactor in Maryland with Electricite de France SA, potentially damaging the French utility’s U.S. expansion plans and the companies’ partnership.

The cost of the U.S. government loan guarantee that the companies’ joint venture, UniStar Nuclear Energy, would need to build the Calvert Cliffs 3 reactor is too high and creates too much risk for Constellation, the Baltimore-based utility said in a statement yesterday. The statement said the next step is up to EDF. Enlarge image U.S. Deputy Energy Secretary Daniel Poneman

In a letter Oct. 8 to Daniel Poneman, deputy secretary of the U.S. Department of Energy, Constellation said it received a government estimate that the venture would have to pay about $880 million to the U.S. Treasury for the loan guarantee, “dramatically out of line with both our own independent assessments and of what the figure should reasonably be.”

Constellation’s decision may make it more likely that the U.S. utility will exercise a put option forcing EDF to buy as much as $2 billion of Constellation’s non-nuclear power plants, said Ingo Becker, head of utilities sector research at Kepler Capital Markets.

“EDF very clearly said if they exercise the put, this thing is over,” Becker said. “Constellation may have just turned around the calendar and pulled out of the new build before exercising the put, anticipating EDF’s reaction.”

In a letter Oct. 8 to Daniel Poneman, deputy secretary of the U.S. Department of Energy, Constellation said it received a government estimate that the venture would have to pay about $880 million to the U.S. Treasury for the loan guarantee, “dramatically out of line with both our own independent assessments and of what the figure should reasonably be.”

Meanwhile, Southern Company is still trying to reduce what it has to pay for its $8.3 billion federal loan guarantee.

Back in Maryland, the news got worse for the nuke last year. EDF asked for the state’s help, but didn’t get the answer it wanted. Scott Dance wrote for Baltimore Business Journal 16 December 2011, EDF: Constellation-Exelon settlement hurts Maryland nuclear industry,

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Solar already beats gas

Here’s an answer to the question of How long until solar beats gas?

Gayle Reaves wrote for fwweekly 11 July 2012, Serious about Solar,

Even on not-so-sunny days, solar still produces. David Power, deputy director of Public Citizen’s Texas office, said that back in February, when cold weather and power plant outages produced blackouts, CPS‘ solar farm was on line and producing. “It was a pretty nasty day, cloudy, and there was a couple of inches of ice on the solar farm,” he said. “But they were still getting 30 to 35 percent of normal production out of it, even on the worst day you could imagine.”

Costs for solar panels have dropped dramatically in the last few years, although by some measures solar energy is still more expensive than that from gas-burning plants.

Power said that the comparisons that show solar to be more expensive are measuring the cost of building a solar plant compared to generating power from a fossil-fuel plant that may have been built and paid for decades ago. In marginal cost comparisons, he said, solar power comes out as costing either the same or less than building a new natural gas plant. “For that you have to get air quality permits and pay for fuel costs,” he said. “For the other, the sun shines, you get electricity, and you just have to wash it off once in a while if it doesn’t rain.”

So the answer is it’s already happened: solar beats gas now. So Southern Company’s fracking plan B makes no more sense than its nuclear Plan A.

-jsq