Platts - Monday, November 10, 2003 http://www.platts.com ------------ London (Platts)--10Nov2003 French government releases pro-nuclear white paper on energy The French government late Friday presented a white paper on energy policy, the industry ministry said. The white paper reiterated the need for France to consider new nuclear build to replace ageing nuclear power plants and a commitment to green energy. The paper presented to the French government by French industry minister, Nicole Fontaine, was welcomed Monday by French grid operator RTE for the issues raised on security of supply. RTE has been given the task to report to the French government with an "early warning system" for any security of supply issues. RTE has been assigned the task of evaluating risks and challenges to France's security of supply over five years. By providing this "early-warning" service, RTE will enable the government to launch tenders to avoid shortfalls in the capacity of generating facilities. Early studies by RTE presented to the government show new generation capacity must be developed in France by 2008 for peak facilities, and by 2017-2020 for base facilities, so that France can cover its total demand, RTE said. This story was first published in European Power Alert. ------------ Washington (Nuclear News Flashes)--07Nov2003 Dominion agrees on purchase price of Kewaunee Dominion agreed to pay $220-million in cash for Kewaunee, a 563-MW Westinghouse PWR owned by Wisconsin Public Service Corp. (WPS) and Wisconsin Power & Light (WP&L). The purchase price includes the reactor and land at the site, and $36.5-million for the nuclear fuel inventory. WPS and WP&L also will transfer about $392- million of decommissioning funds to Dominion. Dominion said it expects to close the transaction in fall 2004 after receiving the necessary federal and state regulatory approvals. At the closing of the sale, WP&L and WPS will enter into contracts to purchase 100% of the electricity generated by Kewaunee until 2013, when the unit's operating license expires. Dominion said no decision has been made on seeking license renewal. Dominion also will take over plant operations from current operator Nuclear Management Corp. after the sale closes. A Dominion spokesman declined to comment on whether Dominion would seek further expansion of its nuclear fleet, comprised of Millstone-2 and -3, North Anna-1 and -2, and Surry-1 and -2. WPS, which owns 59% of Kewaunee, has no other nuclear assets. WP&L has a 41% interest in Kewaunee. WP&L parent Alliant Energy said it has "no current plans" to sell its 70% share in Duane Arnold, its other nuclear asset. ------------ Paris (Nuclear News Flashes)--07Nov2003 Replacement of French nuclear fleet debated The French government is proposing to build an EPR demo unit, industry minister Nicole Fontaine confirmed Nov. 7. The government's White Paper on energy policy, which she presented to the press, says the demo is needed so that France "can be in a position to really decide whether or not to replace all or part of its (current nuclear plant) fleet by a new nuclear fleet." The size of that new fleet would depend on how the country meets policy goals for maintaining energy independence, low greenhouse gas emissions, and "stable and moderate" electricity prices, the document says. Fontaine said the White Paper will be submitted for public comment in preparation for draft legislation to be sent to parliament early next year. The legislation will also incorporate a "nuclear safety and transparency" bill adapted from that prepared by the former government, she said. The parliament also will be expected to decide in 2006 on France's future high-level and long-lived waste management policy. The proposed strategy is based on improving energy efficiency, development of renewables, which are to provide 21% of total electricity supply by 2010, and reducing greenhouse gas emissions, which are to be cut fourfold between now and 2007. ------------ Washington (Nuclear News Flashes)--06Nov2003 Administration's HEU funding request denied Accelerated blend-down of HEU received no funding in the House-Senate agreement reached Nov. 5 on the fiscal 2004 Energy & Water Development Appropriations bill. The administration had requested $25-million to blend down high-enriched uranium (HEU) beyond the quantities covered in the USEC Inc.-Tenex agreement, which does not require government funding. The Senate had provided full funding for the administration request--the centerpiece of its Accelerated Material Disposition initiative-- while the House had not provided any. A DOE official called the decision "short-sighted." ------------ Stockholm (Nuclear News Flashes)--06Nov2003 Cost-cutting risks safety at Swedish plants Safety at Swedish nuclear plants is more threatened by the risk of extensive cost-cutting in the deregulated Swedish electricity market than by a terrorist attack, a government-appointed reviewer concluded Nov. 6. Safety is also at risk because of uncertainty surrounding Swedish nuclear phase-out policy, said Suzanne Frigren. Frigren has handled energy policy for the government in Sweden and in Brussels. Frigren characterized the cost- cutting and uncertainty as much more serious than the possibility of an attack on a nuclear plant, which she was also charged with analyzing. In her report, Frigren said that even if managers at the country's nuclear plants and utilities say that safety is their top priority, "it is conceivable that economic pressure leads to mixed signals further down in the organization." ------------