Platts - Thursday, October 06, 2005 http://www.platts.com ------------ ANO-1 sets plant continuous-run record Washington (Platts)--5Oct2005 Arkansas Nuclear One-1 (ANO-1) set a plant record for continuous operation when it shut down yesterday evening, ending a run of 472 days, one hour and 51 minutes, Entergy said. ANO's previous record also was set by unit 1, with a run ending in October 2002 after 435 days, 18 hours and 12 minutes. The 903-MW PWR was taken off line Oct. 4 for refueling and planned maintenance, including the replacement of two steam generators and the reactor vessel head, a project costing more than $200-million, Entergy said. Unit 2, which refueled in the spring, and has been operating since at full power. Its steam generators were replaced in 2000 during an 85-day outage, a plant spokesman said. The units are on staggered 18-month operating cycles. ------------ DOE repository application likely to be delayed until Q3 '06: NRC Washington (Platts)--5Oct2005 It could be the third quarter of 2006 before the US Dept of Energy submits a nuclear waste storage repository license application to the Nuclear Regulatory Commission for the proposed Yucca Mountain, Nevada facility, according to the NRC's William Reamer. Speaking at a spent fuel conference Wednesday in Washington, Reamer, who heads the NRC unit that will review a repository application, attributed the likely delay to DOE's recent decision to hold off certifying documents it placed on a Web-based documentation database or "licensing support network" until a NRC licensing board makes a decision on a DOE appeal. DOE has asked the board to reverse an earlier decision ordering it to release draft license applications to Nevada. The state requested the documents so it could begin preparing licensing contentions opposing the proposed Yucca Mountain repository. Reamer estimated it could be December before the appeal is decided. DOE has said it will be at least six months after licensing support network certification before it submits an licensing application to NRC. Reamer also told industry officials at the conference that while NRC preparation is geared at meeting the congressional mandate for a licensing decision in three years, meeting that timetable will be difficult. Had it not been for the appeal, DOE told the licensing board it would have certified the licensing support network documents by the end of October, a move that would have put submittal of the earliest possible application on schedule for April 2006. Under contracts DOE signed with nuclear utilities in 1983, the department was supposed to begin disposing of utility spent fuel in January 1998. --Elaine Hiruo, elaine_hiruo@platts.com For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ Europeans reassess nuclear option as fuel prices, fears grow London (Platts)--5Oct2005 High oil prices and concerns about security of supply and the environment appear to be making nuclear power more palatable to the general public and politicians alike in Europe. The nuclear futures of the UK, Germany, Spain and Italy are still unclear, but these factors are lending weight to the pro-nuclear argument, opinion polls show. According to an April 2005 report by public opinion research agency Mori, "attitudes towards nuclear energy are now at their most positive, on balance, for several years, both among the general public and amongst members of parliament." According to a Mori survey of UK parliamentarians,the ruling Labour Party members of parliament are warming to the nuclear industry as a whole, with 33% viewing the industry favorably in the summer of 2005, compared with just 26% in summer 2004. Meanwhile, those Labour Party MPs hostile to the industry fell by 4% year on year. Among all MPs, support for nuclear power is up 5%, year on year, to 41%, while opposition is unchanged at 41%. But only 36% of Labour MPs, compared with 45% of all MPs, wanted nuclear build to replace those being phased out. Although an increase from 30% Labour support for nuclear in 2002, still around 45% of Labour MPs are against new build. Nevertheless, the poll shows the trend is still positive for nuclear. The British public are also warming to nuclear energy. "The recent improvement in public opinion is greatest on the issue of new construction that is intended only to replace units which will close over the next few years," Mori said in its April 2005 report. "This is now supported by more of the population than oppose it for the first time (35% support to 30% oppose), representing a step change in net support since our first measure of this in 2001." The UK public sets most store by environmental factors when deciding on energy sources, not cost, so it prefers renewable energy, Mori found. UK Prime Minister Tony Blair cited global warming and dependence on "some of the most unstable parts of the world" for the country's energy needs as justification for his refusal last week to rule out nuclear power. "The G8 Agreement must be made to work so we develop together the technology that allows prosperous nations to adapt... and that means an assessment of all options, including civil nuclear power," he told his Labour Party conference Sep 26. The Iter nuclear fusion project was "incredibly important," he said. The government is to produce a wide-ranging review of energy policy next year. SPANISH REMAIN MORE HOSTILE TO NUCLEAR POWER Spain faces even more pressing supply concerns than the UK but attitudes towards nuclear power are less encouraging for the nuclear industry. In a 2004 nationwide poll, only 16% of those surveyed wanted nuclear power on principle, with 59% against and 25% undecided. Opposition to nuclear power rose to 62% when asked if 30% of Spain's power generation should come from nuclear, while the number of undecided shrank to 12% and those in favor grew to 26%. Nearly 55% of those polled rejected nuclear energy because of pollution and 43% believed that nuclear power plants were operated without enough regard for safety. Spain's socialist Spanish government is openly opposed to the nuclear power option. President Jose Luis Zapatero promised in his successful 2004 election manifesto that, if elected, he would phase out nuclear. Industry minister Jose Montilla in June 2005 said his government would reduce the role of nuclear power in the national generation mix to 16.8% by 2011. Spain's nuclear power plants contributed 26.47% of total production from Jan 1 to Jun 15, 2005, and 31.55% of the electricity generated in Spain in the same period of last year. Some of Spain's nine reactors are reaching the end of their scheduled lives. New nuclear build is not talked of openly. While the country leads the world in wind power and normally has abundant reserves of hydro, neither energy source can be counted on. With 2004/2005 being one of the worst hydro years on record, Spain's hydro power reserves and output have slumped, while oil and gas prices have soared. "We support its (nuclear) use because Spain's dependence on imported fuels is absolute," said Alberto Matellan, analyst at the Institute of Economic Studies in Madrid. "Nuclear power must be supported." He said that, even in good hydro years, Spain would still need to find more energy sources to meet rising demand. The Madrid government is clearly aware of the problem it faces in trying to reduce nuclear power output while cutting emissions. When replacing nuclear reactors, security of supply and emissions had to be considered when choosing other fuels, industry minister Montilla said in June. But his ministry has since been distracted by Gas Natural's takeover bid for Endesa. In Italy, the nuclear power debate looks set to reopen. Enel CEO Paolo Scaroni said in April that Italians were "paying the cost" of rejecting nuclear power. At the end of May, Enel and Electricite de France signed a preliminary agreement allowing Enel to join the French EPR nuclear program. The future of German nuclear power generation is also now in doubt. Analysts have said that, without the Greens, the CDU and SPD would likely agree to extend nuclear power plants' lives by eight years to 40 years, but Merkel, the chancellor in waiting, would want utilities to offer something in return, like lower prices. Here, again, there is no talk of new nuclear build. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ British PM risks revolt over new nuclear plants: report London (Platts)--5Oct2005 Tony Blair risks a backbench rebellion if he decides to build a new generation of nuclear power stations, with survey evidence showing nearly half of Labour MPs opposed to the idea, the 'Financial Times' reported Wednesday. According to an opinion poll by Mori, which surveyed MPs from all parties on behalf of the nuclear industry, 45% of the parliamentary Labour party is against the construction of nuclear plants to replace those being phased out over the next few years, the report said. Labour backbenchers account for almost all the opposition in the Commons on this issue and there could be more rebelling--should MPS be given a formal say--the report said, than were against the Iraq war in 2003, when a third of the party voted against the government or failed to support it. "The opposition among Labour MPs has declined from a year ago, when it was 53%, possibly because of a combination of high oil prices and fears about the impact of climate change. However, there were fewer Labour members who supported investing in new plant--36% versus 39%. With the majority of Conservatives in favour of new nculear build, the prime minister would probably be able to win a vote in the Commons," the paper said. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ DOE appeals NRC panel's decision on Yucca Mt. draft document Washington (Platts)--4Oct2005 DOE is appealing an NRC licensing board decision granting Nevada's request for a copy of DOE's draft license application (LA) for a spent fuel repository at Yucca Mountain, Nev. In an appeal filed yesterday with the Pre-License Application Presiding Officer (PAPO) Board, DOE asserted that the ruling opens "the floodgate to the production of virtually all preliminary drafts" on the licensing support network (LSN) because the board had not provided any "meaningful standard or principled basis to bound the participants' obligation to produce drafts." Nevada had requested the draft LA so it could begin work on contentions that the state will file during a repository licensing proceeding. In a related move, DOE told the PAPO Board that it likely would have been ready to certify its LSN document collection this month but now won't issue the certification until its appeal has been decided. ------------ Debate on Spain's nuclear power future faces delay London (Platts)--4Oct2005 The debate on the future of nuclear power in Spain faces delay because of the distraction of Gas Natural's surprise Sep 5 takeover bid for Endesa, a spokesman for the industry ministry said Tuesday. Industry minister Jose Montilla had planned to open a round table debate with energy sector companies, environmentalists and political parties this week. "The minister had wanted to call the round table meeting this week," the spokesman said. "But its going to be delayed." Spain's socialist government committed itself in June to reducing the role of nuclear power in the national generation mix to 16.8% by 2011. Nuclear power plants contributed 26.47% of total production from Jan 1 to Jun 15, 2005, and 31.55% of the electricity generated in Spain in the same period of last year, according to power producer group Unesa. Socialist president Jose Luis Zapatero pledged to phase out nuclear power in his March 2004 election campaign. But the issue seemed forgotten until Montilla said in June the government would open a public consultation on the "real possibilities" for getting rid of nuclear power. But that debate faces further delay and the industry ministry spokesman could not say Tuesday when the debate on Spain's nuclear future would begin. Although the industry ministry is not actively working on the Eur22.5-bil ($27.2-bil) Gas Natural bid for Endesa, the magnitude of the takeover attempt has shaken both the energy sector and the government. The industry ministry is awaiting two reports, one from the national energy commission and one from Spanish competition authorities, before it studies the proposal in detail. It will only do that if the two regulators approve the bid, the spokesman said. ---daniel_fineren@platts.com--- For more nuclear news request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ ------------ NRG to buy Texas Genco, including South Texas Project share Washington (Platts)--3Oct2005 Texas Genco's equity, including its 44% share in the South Texas Project, is to be acquired by NRG Energy Inc. for $5.8-billion under an agreement the two have reached. In addition, NRG, based in Princeton, N.J., will assume roughly $2.5-billion of Texas Genco's debt. The purchase price was based on Texas Genco's "near-term substantially hedged portfolio and a conservative view on longer-term gas prices," the companies said today in a joint press release. "Texas Genco has sold forward, on average, 82% of its available baseload capacity over the next four years, providing a stable source of earnings and cash flow," the release said. With the acquisition of Texas Genco, NRG's U.S. generation portfolio will increase to roughly 23,930 MW of diverse capacity. ------------ UK industrials 'need to look at Finnish nuclear model': EIUG London (Platts)--3Oct2005 Director of the UK's Energy Intensive Users Group Jeremy Nicholson and French nuclear engineering firm Areva met Sep 30 to discuss theoretical options for new nuclear build, he told Platts Oct 3. But it was too early to talk of individual company involvement or commitment, he said, and weekend newspaper reports had given an exaggerated account. "It is good that the UK government is speaking more publicly about re-starting the nuclear debate next year, and this must not be shelved for another election cycle," Nicholson said, referring to the commitment to discuss new civil nuclear generation during 2006. "We want the nuclear option explored, and we want a balanced solution. Security of supply, predictability of price, and reducing exposure to carbon costs--these are benefits that nuclear can deliver. We need to look at the Finnish model [where industrials are co-funding an Areva-built 1.6GW EPR nuclear plant]. Is it transferable? If so, then it will be up to individual UK large users to decide whether they are prepared to commit to, say, a 10-15 year long term offtake contract and even an equity stake." In the first instance the UK government had to solve the nuclear waste issue, Nicholson said. "The committee on radioactive waste is due to report in 2006, but even before that we think the government should do as much as it can on the issue to avoid later delays." A spokesman for the Chemical Industry Association could not confirm rumors that a large chemicals company had held its own talks with Areva, looking at Finnish and French industrial involvement in new nuclear build. ---Henry_Edwardes-Evans@Platts.com For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------