Platts - Thursday, September 22, 2005 http://www.platts.com ------------ Group picks Grand Gulf, Bellefonte sites for new nuclear units Washington (Platts)--22Sep2005 The multi-utility NuStart consortium will apply to license two new nuclear power units at Entergy's Grand Gulf site, near Vicksburg, Mississippi, and the Tennessee Valley Authority's Bellefonte site near Scottsboro, Alabama, sources told Platts Thursday. The group is expected to make the official announcement at noon (EDT) Thursday. Grand Gulf already houses one 1,250-MW General Electric reactor. TVA planned two 1,200-MW Babcock & Wilcox reactors for the Bellefonte site but suspended construction in 1988 with the units about three-quarters completed. The site has much of the infrastructure completed, and a feasibility study said a new unit can be completed in 40 months. NuStart will propose one General Electric advanced-design reactor, the ESBWR, and one Westinghouse advanced design, the AP1000. The ESBWR is operating in Japan and being built in Taiwan; it is rated at 1,365-MW. Westinghouse has been working on the AP1000 for more than a decade but it has not yet been built. The NuStart consortium includes such large US utilities as Duke Energy, Entergy Nuclear, Constellation Energy, Exelon Corp, FPL Group and Progress Energy. ---Margaret Ryan, margaret_ryan@platts.com For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ NHC says Rita weakening slightly, but still category five storm London (Platts)--22Sep2005 Hurricane Rita is weakening slightly over the central Gulf of Mexico but remains a category five storm with a potentially catastrophic effect, the US National Hurricane Center said Thursday. The storm's maximum sustained winds are estimated at nearly 170 miles/hour, down from earlier estimates of 175 mph, the NHC said in its latest update on the storm issued at 0700 CDT (1200 GMT). "A slow weakening trend is forecast but Rita is expected to reach the coast late Friday or early Saturday as a major hurricane...at least category three," NHC said. The eye of the hurricane is currently some 490 miles southeast of Galveston, Texas, and about 595 miles east-southeast of Corpus Christi, Texas. Rita is moving towards the west-northwest at around 9 mph, and NHC forecasts show the storm making landfall near Galveston. Oil and gas producers in the Gulf of Mexico have evacuated many facilities ahead of Rita, adding to the production already shut in following the passage of Hurricane Katrina at end-August. In addition to some 900,000 b/d of refining capacity that still remains shut after Katrina in Louisiana and Mississippi, Rita threatened to cripple plants on the coast of Texas. The area, which includes Houston, Texas City, Baytown and Beaumont, has a high concentration of oil refineries. Marathon Oil had begun shutdown procedures at its 72,000 b/d Texas City refinery in preparation for Rita Wednesday, and Valero Energy began shutting down its 135,000 b/d Houston and 243,000 b/d Texas City refineries. Valero's 340,000 b/d Corpus Christi refinery was running at "planned rates" with a skeleton crew. Shell also began shutting its 333,700 b/d Deer Park refinery Wednesday. For more information on Hurricane Rita, take a trial to a Platts Global Alert at http://globalalert.platts.com. ------------ 'Extremely dangerous' Rita moving towards Texas through Gulf: NHC New York (Platts)--21Sep2005 Hurricane Rita, now an "extremely dangerous" 165 mph Category 5 storm, continued to move through the Gulf of Mexico toward the Texas coast Wednesday, the National Hurricane Center said in a 5 p.m. EDT (2100 GMT) update. The eye of the storm was located about 600 miles east-southeast of Galveston, Texas, and about 700 miles east-southeast of Corpus Christi, Texas, and was moving west at about 13 mph. The storm should continue in that direction for the next 24 hours, the NHC said. Rita's size was growing along with its intensity. Hurricane-force winds extended outward up to 45 miles from the center and tropical storm force winds extended up to 175 miles. The storm is likely to maintain its strength during the next 12 to 24 hours as it crosses the US Gulf's warm waters, though it may weaken by the time it reaches the coast, the NHC reported, noting Rita should be at least a Category 3 hurricane by the time it makes landfall Saturday. Rita comes in the heels of Hurricane Katrina, which ravaged the US Gulf Aug 29, causing severe damage along the Louisiana and Mississippi coasts and significantly disrupting supply in the energy industry. --Dave Marino, david_marino@platts.com For more information on Hurricane Rita, take a trial to a Platts Global Alert at http://globalalert.platts.com. ------------ GE awarded contract to uprate Susquehanna Washington (Platts)--21Sep2005 General Electric Co. (GE) won a contract worth more than $10-million to uprate Susquehanna, the company announced today. GE said it would uprate the two Susquehanna BWRs by about 100 megawatts apiece. Susquehanna-1 is currently rated at 1,142-MW and Susquehanna-2 at 1,147 MW. The uprate will be implemented in phases at the two units from 2007 to 2010, GE said. Rita winds up to 140 mph, could be Category Five in 24 hours: NHC New York (Platts)--21Sep2005 Hurricane Rita's maximum sustained wind speed has increased to 140 mph and the storm is now an "extremely dangerous hurricane," the US National Hurricane Center said Wednesday. Some additional strengthening is forecast during the next 24 hours and Rita could reach Category Five intensity in the central Gulf, the NHC said in its 11 a.m. EDT (1500 GMT) update. Category Five storms on the Saffir-Simpson Hurricane Scale are at least 155 mph (249 km/hr). A hurricane watch will likely be issued for portions of the northwest Gulf of Mexico coast later Wednesday, the NHC said. "Interests in the northwestern Gulf of Mexico should monitor the progress of dangerous Hurricane Rita," the NHC said. At 11 a.m., the eye of Rita was 260 miles west of Key West, Florida, and about 755 miles east-southeast of Corpus Christi, Texas. Rita is moving toward the west near 13 mph and this motion is expected to continue during the next 12 to 24 hours, the NHC said. Hurricane force winds extend outward up to 45 miles from the center and tropical storm force winds extend up to 140 miles, the NHC said. The wind field associated with Rita is forecast to expand during the next day or two, the agency said. Rita is expected to make landfall along the central-eastern Texas/western Louisiana coast Saturday morning. For more information on Hurricane Rita, take a trial to a Platts Global Alert at http://globalalert.platts.com. ------------ Houston mayor asks some city residents to evacuate ahead of Rita New York (Platts)--21Sep2005 Houston Mayor Bill White Wednesday asked residents who live in low-lying areas of the city to voluntarily leave ahead of the possible arrival of Hurricane Rita. This includes people who live in flood plains, areas susceptible for storm surges and those who live in mobile homes, White said in remarks broadcast live on national television. The mayor asked employers to give non-essential employees Thursday and Friday off from work. He also said the city did not have enough buses to remove all those people without transportation and called on residents with transportation to help others without. Rita was upgraded to a Category 4 storm Wednesday as its headed towards the southeastern Gulf of Mexico, packing 135 mph winds, the US National Hurricane Center said in its 8 a.m. (1200 GMT) advisory. The storm is expected to make landfall somewhere along the eastern Texas/western Louisiana coasts early Saturday. For more information on Hurricane Rita, take a trial to a Platts Global Alert at http://globalalert.platts.com. ------------ Peach Bottom-3 sets LWR world record for longest continuous run Washington (Platts)--20Sep2005 Peach Bottom-3 set a world record for longest continuous run by a light water reactor (LWR), Exelon nuclear said today in a press release. The unit shut down for refueling last night, having operated 707 days, 17 hours, and 28 minutes without a shut down since its last refueling outage in 2003, Exelon said. Debt-hit Italy aims to raise $6.1-bil from privatizations Trieste (Platts)--20Sep2005 Italy's industry ministry plans to raise Eur5-bil ($6-bil) from the privatization of more assets in the gas and power sectors over the next three years, a ministry document revealed Tuesday. The country needs money as it is heavily in debt and there has even been talk of it abandoning the euro, which it only qualified to join by taking measures such as selling off stakes in oil and power companies Eni and Enel. According to the ministry's 2006-2008 plan, the government would sell off stakes in subsidiaries still controlled by former monopolies Eni and Enel, which still have dominating positions in their respective gas and power sectors, as well as overseeing the privatization of the power market operator (GME), sole buyer (Acquirente Unico) and nuclear operator (Sogin). Following Enel's sale last week of a 30% stake in high voltage operator Terna, effectively reducing its stake in the company to 5%, the next operation within sight appears to be Eni's reduction of its stake in gas subsidiary Snam Rete Gas, which controls up to 97% of the country's gas network. In the document, the ministry suggests that the sale could take place as soon as 2006. At present, Eni holds just over 50% of SRG, but under Italian competition law is obliged to reduce that stake to 20% by 2007. The suggestion has been made that Eni should mirror Enel and reduce its SRG stake to 5%. According to Italian daily 'MF', which quotes market sources, Eni is now reluctant to reduce its SRG stake and is pressurizing the government to modify the 2002 Marzano Law. Recent speculation has linked Russia's Gazprom with a possible bid for SRG. Although the Italian market is perturbed by the Gazprom rumors, the ministry's outlines for SRG say the company should become "neutral and independent" so it can be connected to the storage system and the gas exchange, when one is set up. Since the storage system is owned by another Eni subsidiary, Stogit, the ministry appears to be leaning towards the privatization of this sector too. The ministry suggested the impending privatization of the country's power market operator, the Gestore del Mercato Elettrico which has been running the country's power exchange for just over a year and a half. Also mentioned for possible privatization is the country's nuclear operator, Sogin. Sogin oversees Italy's four decommissioned plants, which have been out of action since a 1987 referendum voted against the use of nuclear power in the country. However, recent developments abroad, with Enel buying into nuclear generation in Slovakia and France, as well as a recent reopening of the public debate concerning nuclear power, may make a stake in Sogin more attractive. The ministry said "nuclear energy is an option that must be kept open. Italy cannot lag behind Europe and should participate." For more information, take a trial to Platts European Power Daily at http://europeanpowerdaily.platts.com. ------------