Platts - Monday, January 09, 2006 http://www.platts.com ------------ Swiss Axpo delays nuclear plans for gas Freiburg (Platts)--9Jan2006 Switzerland's Axpo has for the moment shelved plans to build a new nuclear power plant in favor of a CCGT unit, a spokesman for the company said Monday. "We will keep our hands off nuclear at the moment because it doesn't make sense, but are now looking into building a combined heat and power plant," said the spokesman. Axpo, one of the big power generators in Switzerland, is carrying out a feasibility study on two 400MW blocks, which would initially serve as an intermediate solution to cover an expected shortage of power from 2012. "From 2012, we urgently need capacity, and because a nuclear unit would need about 20 years to be built--15 years of political debate and five for building work--we are looking at gas," said the spokesman. Axpo would only consider building a new nuclear unit if parliament gave long-term planning security, including the possibility to dispose of nuclear waste in Switzerland. That decision is to be made by the government this year. The Swiss nuclear forum meanwhile said a new reactor of 1.2-1.6GW capacity would cost about SFr3.6-bil to SFr4.8-bil (about $3.3-bil) and that that was a competitive figure compared with other source of energy generation. The Swiss nuclear watchdog HSK meanwhile said Monday Swiss nuclear units were in top condition in 2005, having ben safely and correctly operated in the period under review. Switzerland generates about 40% of its demand with nuclear units and 60% from hydro plants. For more information, take a trial to Platts Electricity Alert at http://electricityalert.platts.com. ------------ Progress addresses US NRC inspection of security at Harris plant Washington (Platts)--9Jan2006 Progress Energy Monday said it is launching its own internal investigation of security at its Harris nuclear generating plant after the US Nuclear Regulatory Commission last week said it is sending inspectors to the plant near Raleigh, North Carolina. NRC said its inspectors, one from NRC headquarters and two from Region 2, will look into security concerns raised by the North Carolina Waste Awareness & Reduction Network and the Union of Concerned Scientists. The groups said last month that armed guards at the facility alleged that security "is pervasively undermined by the plant owner and its security contractor, with the acquiescence of the US NRC and that the plant currently has a number of particular vulnerabilities that must be corrected immediately." Progress Energy Chairman and CEO Bob McGehee issued a statement Monday saying that when the allegations were made "we launched an immediate internal investigation. While we continue to look at a few of the specific allegations, we have confirmed that the plant is secure and protected." Progress will cooperate with the NRC inspection and is encouraging "any employee who has information or concerns about security at the Harris plant to bring those concerns directly to the NRC team." The guards alleged, among other things, that Progress Energy and security contractor Securitas tried to "force" guards to cheat on state certification tests and that company managers have tried to prevent guards from searching trucks entering the plant protected area, according to the two groups. For more information, take a trial to Platts Electricity Alert at http://electricityalert.platts.com. ------------ Bradwell station defueled early, BNG says London (Platts)--6Jan2006 The U.K's Bradwell magnox station has been defueled three months ahead of schedule, said Bradwell manager British Nuclear Group (BNG). Bradwell's two 123-MW units ceased electricity production the end of March 2002 after 40 years of service. The removal of the final fuel element from unit 2 on Dec. 30, 2005 marked the end of a 33-month defueling program, said BNG. Unit 1 completed its defueling in mid-September 2005, 26 days ahead of schedule. In total, 41,194 fuel elements have been removed from the two reactors. BNG said its staff will now begin to concentrate on moving fuel stored in the site's ponds to the Sellafield reprocessing complex. All fuel should have been removed from the site within the next six months, it said. WGI completes its purchase of Westinghouse companies Washington (Platts)--6Jan2006 Washington Group International Inc. (WGI) completed its acquisition of two Westinghouse government services companies last week after it paid British Nuclear Fuels plc (BNFL) $36.2-million in cash, ending BNFL's rights to future profits. WGI and BNFL jointly purchased Westinghouse Government Services Co. and Westinghouse Environmental Services Co. from CBS Corp. in 1999. WGI began to buy out BNFL's interest and took control of the companies in 2004. The cash payment WGI made last week represents an accelerated payment of what the Boise, Idaho-based company owed BNFL under the 2004 agreement. Completion of the deal does not change WGI's standing in the government contract market, because it already controls the two companies, WGI spokesman Jerry Holloway said this week. It does, however, change the company's profits, he said. Under the 2004 agreement, WGI agreed to pay BNFL 40% of the profits from its existing contracts with the two Westinghouse companies, 40% of the future profits from the companies' contracts at certain DOE sites and one Department of Defense site, and 10% of the profits from all other contracts WGI has at DOE sites through Sept. 30, 2012. WGI reported the completed acquisition to the U.S. Securities & Exchange Commission Dec. 30, noting that the cash payment also ends BNFL's financial obligations, including its contributions to certain pension and retiree medical plans at the two Westinghouse companies. The companies are separate from Westinghouse Electric Co., the commercial energy company that BNFL bought from CBS and now is trying to sell. Bids are expected from a General Electric-led consortium that involves financial investors; a Shaw Group team that also includes financial investors; Mitsubishi Heavy Industries; and Toshiba Corp. BNFL is expected to announce the winning bid late this month or in early February. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ Due to industry exodus, Finland won't need sixth reactor Stockholm (Platts)--6Jan2006 Finland will not need a sixth nuclear reactor because electricity -intensive industry will move out of the country to avoid higher electricity prices caused by the cost of emission rights, a government-appointed reviewer said in a report delivered in late December. Reviewer Mikko Kara argued that the 1,600-MW Olkiluoto-3, under construction with a 2009 startup target, will be the last major power plant investment in Finland. Kara is an energy specialist with the Technical Research Center of Finland (VTT), one of the country's premier research institutions. Kara said he expects Finnish industry to simply move production to areas outside the European Union to get away from the cost of its carbon emission allowance system. Nevertheless, Kara added that carbon emissions trading is working as designed and that utilities earning windfall profits from such trading should not be subjected to further taxes. "The price of emissions is being (transformed) on the market into the price of electricity, as was intended," Kara said. The windfall profits issue has become increasingly contentious in the Nordic countries, especially in Sweden where electricity generation comes from nuclear and hydro plants, and in Norway where almost all of it comes from hydro power plants. Managements at utilities in those countries have reiterated that there are no windfall profits because their profits stem from market conditions in a system that rewards generation that does not emit greenhouse gases. Kara suggested that instead of a tax, utilities be required to use windfall profits to maintain reserve power, which has become increasingly expensive in the fully deregulated Nordic market. But Finnish Trade & Industry Minister Mauri Pekkarinen rejected that conclusion. Kara's handling of the windfall issue in the report was "somewhat thin," Pekkarinen said at a press conference after the report was released. He added he believes "there are more practical solutions through which a portion of these unearned profits can be returned to consumers." Pekkarinen said he wants to have specific proposals on windfall profits ready by summer. Finland has more diverse generation sources than its Nordic neighbors. But Kara said that as a result of emissions trading, Finland has cut back on its use of fossil-fired power, specifically coal, and is importing more power from neighboring Russia. Some of that power comes from the Leningrad Nuclear Power Plant, which has four RBMK units. Some also comes from Russian fossil-fired plants. Opponents of Russian imports say Finland is contributing to the continued operation of unsafe nuclear reactors and to production from old conventional plants that emit more greenhouse gases than Finnish fossil-fuel plants. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ Four former Davis-Besse workers banned from NRC-licensed work Washington (Platts)--5Jan2006 Three former Davis-Besse workers will be barred from NRC-licensed activities for five years and a fourth will be banned for a year, the agency announced today. The orders, which were issued yesterday, were for the former workers' roles in providing "incomplete and inaccurate" information to the NRC in 2001 on the condition of the unit's reactor vessel head. Last April, NRC fined Davis-Besse operator FirstEnergy Nuclear Operating Co. $5.45-million for related violations and imposed a five-year ban on another former employee. NRC Region III spokesman Jan Strasma said today the NRC does not plan to take any further action against the company or individuals, unless new information emerges from a still-ongoing Department of Justice investigation. The results of that investigation are expected to be announced soon. ------------