Platts - Wednesday, May 14, 2003 
http://www.platts.com

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Washington (Nuclear News Flashes)--13May2003

Dials abruptly leaves LES enrichment project

George Dials abruptly resigned May 13 as president/CEO
of LES, the Urenco-led uranium enrichment consortium
that hopes to build a plant in Hartsville, Tenn. LES'
press release cited Dials' interest in pursuing other
business interests and ventures now that the enrichment
project was "up and running." But LES has not yet
submitted a license application to NRC, the partners in
the venture have yet to sign a formal partnership
agreement, and LES has encountered escalating problems
in securing the Hartsville site from local Tennessee
officials. Urenco's Pat Upson, who is the chairman of
the LES venture, will take over Dials' operational
responsibilities. LES has also hired a new team to
handle public relations. Jay West, a former vice mayor
of Nashville, will take over the consortium's outreach
with Tennessee officials and citizens, and Marshall
Cohen is replacing Nan Kilkeary as communications
director for the project. 

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Washington (Nuclear News Flashes)--13May2003

Nuclear industry attacks CBO plant cost estimates

Congressional Budget Office (CBO) cost estimates on new
nuclear plant construction are out of line with industry
projections and could have "profound negative
implications" in the debate on stimulating investments
in new reactors, Nuclear Energy Institute President Joe
Colvin told key legislators in a May 9 letter. Colvin
said the CBO estimate of $2,300-per-kilowatt capital
costs for a new plant--which he says is tied to a
"flawed" Energy Information Administration analysis--and
a forecast of a 50% risk of default on government loan
guarantees were wrong and illogical. He said CBO
projections in a May 7 report on the Senate energy bill,
S. 14, could impact a key provision intended to spur
investment in new nuclear reactors. Industry estimates
of first-time costs for an advanced reactor are less
than $1,400/KW, based on the AP1000 design, Colvin said,
also arguing that CBO's assumption that companies would
sink their own money into projects that had a high
probability of failure made no sense.

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