Platts - Thursday, August 12, 2004 
http://www.platts.com

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Mihama-3 probe looking at reaction to Surry-2 accident

Bonn (Platts)--11Aug2004

Japanese prosecutors and experts investigating turbine-
side maintenance at the Mihama-3 PWR in the aftermath of
Monday's fatal secondary-side pipe break are focusing in
part on the reaction of Japanese industry and regulators
to the December 1986 break at the Surry-2 PWR in the
U.S. In 1987, NRC circulated memos to foreign regulatory
organizations recommending corrective actions in that
case. Prosecutors in Fukui Prefecture as well as
regulatory and industry experts in Japan are now
examining in detail what actions were taken by
regulators and industry to protect Japanese reactors
against a similar turbine-side pipe break as in the
U.S., Japanese industry sources said. Beginning a few
years after the Surry event, these sources said, Mihama
owner Kansai Electric and other utilities identified
turbine-side piping deemed critical in avoiding a repeat
event, and inspections were carried out leading to some
turbine-side piping replacements.

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Japan's Kansai Electric may need to shut older nuclear
reactors

Tokyo (Platts)--11Aug2004

Japan's Kansai Electric Power Co Inc may need to idle
other nuclear power units built in the 1970's, around
the same time as the accident-hit 826,000 kW No 3
reactor at its Mihama power plant in Fukui, central
Japan, in order to conduct safety inspections, a company
official said Wednesday. Japan's Nuclear and Industrial
Safety Agency Tuesday requested power suppliers to carry
out inspections on pressurized-water reactors, the same
type used in the No 3 unit at Mihama. Kansai Electric is
currently preparing for inspections. "It depends on when
we conduct regular turnarounds at these nuclear
reactors. But we may need to idle old nuclear power
units for inspection," the official said. Four workers
were killed and seven severely injured following a non-
radioactive steam leak from a water pipe on Monday at
the No 3 Mihama unit. The No 3 reactor was scheduled to
be shut for regular maintenance on August 14.

Kansei Electric has seven nuclear reactors built in
1970's: the No 1 (340,000 kW) and No 2 (500,000 kW)
reactors at Mihama; the No 1 (1.175-mil kW) and No 2
(1.175-mil kW) nuclear units at the Ooi power plant as
well as the No 1 (826,000 kW) and No 2 (826,000 kW)
reactors at the Takahama plant, in addition to the
affected No 3 Mihama unit. All are located in Fukui
prefecture, according to the company official. In order
to avoid a potential power supply shortfall, Kansai
Electric will approach other power utilities to cover
for it in the event of any shutdowns. The company is
also considering boosting operating rates at its thermal
power plants by procuring additional LNG and crude oil
as fuel. For the year to March 2003, some 15% of
Kansai's thermal power was generated from crude and fuel
oil, while LNG accounted for 84%.

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Exelon to receive $80-million settlement

Washington (Platts)--10Aug2004

Exelon Corp. will receive $80-million from the federal
government in six to eight weeks as reimbursement for
its extended at-reactor storage of spent fuel, under a
settlement agreement the U.S. Department of Justice and
Exelon announced today. The agreement broadens a pact
the utility signed with DOE in 2000 that allowed it to
recover some costs associated with extended spent fuel
storage at Peach Bottom. Unlike the initial agreement,
the reimbursement will involve tax dollars from the
federal judgment fund and not ratepayer fees from the
Nuclear Waste Fund, reflecting an earlier court decision
barring DOE from using the waste fund to reimburse
utilities. The settlement covers all 17 Exelon reactors
and resolves pending litigation against the federal
government by Exelon and its subsidiaries after DOE
failed to begin disposing of utility spent fuel in
January 1998. Exelon has projected the tab would total
$300-million by 2010, when DOE plans to have a
repository ready to dispose of the waste. If a
repository doesn't open until 2015, which some skeptics
believe is a more realistic target, Exelon has projected
its reimbursable costs at $600-million, Exelon spokesman
Craig Nesbit said.

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