Platts - Wednesday, June 28, 2006 http://www.platts.com ------------ Areva ready to pledge price, performance for new French plant London (Platts)--28Jun2006 Areva is ready to guarantee price, schedule and performance for a new nuclear power plant in France, as it did in Finland, the French vendor's deputy general counsel, Olivier Mallet, told an international financing forum in Paris June 27. He said such costs are within the ability of vendors to control, unlike issues such as regulatory risks, which hampered past nuclear programs in the US and UK but are being tackled in those countries for future nuclear power plant projects. Mallet said that low interest rates and the availability of innovative financing models like the Areva/Constellation Energy Unistar venture seeking to create a fleet of EPR units in the US makes this "the right time" to invest in new nuclear. That is provided governments can provide insurance against uncontrollable risks, as the US government is doing, he said. For emerging countries, however, Areva thinks that the World Bank and other international financial institutions should reassess their heretofore hands-off attitude towards nuclear power, he said. For more news, request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ ------------ House panel advances US-India trade deal Washington (Platts)--27Jun2006 An initial change to US law to allow nuclear trade with India was approved 37-5 by the House International Relations Committee June 27. The substance of the committee bill largely tracks a Bush administration draft introduced in March, as the panel voted down amendments to make nuclear trade contingent on constraints on Indian production of fissile materials and other measures. However, the committee bill rejects procedural changes the administration had proposed for congressional review of the bilateral US-Indian cooperation agreement now being negotiated. The administration proposal would have "reduced the role of Congress to a bare minimum," said Illinois Republican Henry Hyde, the committee chair. The committee bill also requires not only the bilateral agreement, but also two other key conditions -- an India-IAEA safeguards agreement that is "in accordance with IAEA standards, principles, and practices," and consensus within the 45-nation Nuclear Suppliers Group in support of the deal -- before Congress gives its full approval to nuclear trade with India. The Senate Foreign Relations Committee is scheduled to consider its version of the legislation June 28. ------------ Domenici drafts bill giving DOE interim nuclear storage authority Washington (Platts)--27Jun2006 The Senate Energy and Water Development Appropriations Subcommittee has drafted a fiscal-year 2007 spending bill that will put the US on a path to consolidate commercial nuclear waste from 103 reactors at nearly 70 sites at an undetermined number of temporary federal storage facilities, officials said Tuesday. The $30.7 billion energy spending bill would include $270 million for the administration's Global Nuclear Energy Partnership. It also would fund the Yucca Mountain nuclear waste repository at $494 million, including $10 million for development of "interim storage" facilities. That would equal FY 2006's Yucca spending measure. Under the provision crafted by subcommittee chairman Pete Domenici, Republican-New Mexico, the facilities could be opened in 2011 and 2012 and be permitted for 25 years. The facilities would have to be built on federally owned land. It is due for a subcommittee vote Tuesday. "This issue moves glacially," said Scott O'Malia, a subcommittee aide who briefed reporters on the proposal. "To move spent fuel for five years or seven years doesn't make sense, but it doesn't have to stay there for 25 years," For the first time, the bill would give the Energy Department authority to open interim storage facilities, which DOE officials say they have not had. In order to secure passage on the Senate floor, the measure would need 60 votes, since it amounts to legislating on a spending bill. The interim storage provision would be unrelated to DOE's efforts to move nuclear waste to Yucca Mountain. O'Malia said DOE has indicated it would submit a license application for the repository in 2008 and that it would open the Nevada site in 2018. The proposal requires DOE to immediately take title of waste at eight retired nuclear plants if the site owner requests DOE to do so. But the waste could be left at those facilities indefinitely. For operational sites, DOE would also have to take title of the waste if the utility requests it. DOE would have to move the waste, but only if a place has been established where it can be put. It also enables DOE to fulfill its obilgation to take title of the nation's commercial nuclear fuel under the Nuclear Waste Policy Act. And it could clear the way for new nuclear facilites, proponents say. Money for all the interim sites would be paid for out of the Nuclear Waste Fund. The FY 2007 money would go toward establishing an office within DOE to handle consolidation of spent fuel and preparation of a site. O'Malia said it would be up to Energy Secretary to put the interim storage policy into action. It exempts Nevada and Utah from being used as federal interim storage sites. O'Malia said Senate Minority Leader Harry Reid, Democrat-Nevada, supports the Domenici proposal. --Daniel Whitten, daniel_whitten@platts.com For similar news, take a trial to Platts Inside Energy at http://insideenergy.platts.com. ------------ Switzerland's Goesgen PWR back on line June 26 London (Platts)--27Jun2006 Switzerland's Goesgen PWR was back on line June 26 after a 22-day outage for refueling and maintenance. The 1,020-MW plant went down June 3 and was given the green light for start-up June 24. During refueling, 52 of the 177 fuel elements were replaced, of which 28 were mixed-oxide elements, produced by Belgonucleaire. The Federal Nuclear Inspectorate has confirmed that all tests and inspections met specifications and were carried out within prescribed radiation dose limits. In 2005, the plant was down for 41 days for backfitting when pressure relief valves in the primary cooling system and the high-pressure turbine were replaced. For more news, request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=22_41&products_id=67 ------------ S&P expects more nuclear plants, but not before 2015 New York (Platts)--26Jun2006 Standard & Poor's Ratings Services expects US companies to build more domestic nuclear power plants, but does not foresee any stations coming online before 2015-2016, according to a research note released on Monday. Primary Credit Analyst Richard Cortright said the last nuclear plant in the US was ordered more than 30 years ago, in 1973, and the only activity since then has consisted of modest repowerings and license extensions. However, "several influences have combined to generate a clear resurgence of interest," he said. These include: the increased dependence on natural gas for generation, and the price volatility this has caused; concern over carbon dioxide emissions from coal, which fuels about 50% of US power plants; worries about the reliability and capacity of rail transportation; the appealing operating economics; and supportive federal and state legislation. But, "placing any plant into operation is a long-term proposition," with extensive siting reviews, Cortright said. As a result, plants initially planned in 2006 would not begin operating until 2015-2016, he said. Another hurdle is the expense, as shown by Duke Energy's estimate that two proposed plants in South Carolina would cost $4 billion to $6 billion. The greatest hurdle is public acceptance, due to worries over safety and waste disposal, he said. While plant performance has been very safe, "the threat of terrorism injected a whole new risk element into the equation," Cortright added, though this "does not appear to be deterring companies in the Southeast and Midwest." Opposition comes mainly from the Northeast and West Coast, he said. The nuclear waste problem will remain "a very challenging political problem, but will not be sufficiently disruptive to prevent the licensing of new plants." Cortright said. "So, while slow and steady, the return of the nuclear option has considerable momentum that is not likely to wane," he said. For similar news, take a trial to Platts Electric Utility Week at http://electricutilityweek.platts.com. ------------ Brunswick units granted 20-year license extension by NRC Washington (Platts)--26Jun2006 NRC has renewed the operating licenses for Brunswick-1 and -2 for an additional 20 years, the agency said June 26. With the renewal, unit 1's license is extended until September 8, 2036, and unit 2's until December 27, 2034. Including Progress Energy's Brunswick units, NRC has granted renewals to 44 reactors. ------------ Holtec wins Nordostschweizerische Kraftwerke contract London (Platts)--26Jun2006 Holtec International won a contract to provide 14 Hi-Star 180 spent fuel storage and transportation casks to Switzerland's Nordostschweizerische Kraftwerke AG, the US cask vendor said June 23. The new Hi-Star 180 has been designed as a "global cask" capable of containing any fuel basket currently licensed under NRC's transportation regulations. Holtec plans to submit an initial application to the US NRC in November for two fuel basket designs, the F-32 and F-37, both for storage of Beznau spent fuel. The baskets are designed for spent uranium and mixed-oxide fuel in intact and damaged states, Holtec said. The vendor plans to qualify the system to maintain containment under a postulated aircraft strike and, as required by Swiss regulations, under an "energistic projectile" such as an artillery shell. The Hi-Star 180 is based on the Hi-Star 100, certified in the US for both storage and transport, but uses advanced materials and manufacturing techniques, Holtec said. For more news, request a free trial to Platts Nucleonincs Week at http://www.platts.com/Request%20More%20Information/ ------------ LES gets NRC draft uranium enrichment plant license for review Washington (Platts)--23Jun2006 NRC staff has issued a draft license to LES for review that would allow the company to build and operate a uranium enrichment centrifuge plant in New Mexico. The staff issued the draft after an NRC Atomic Safety and Licensing Board ruling June 23 cleared the way for that action. An NRC spokesman said the license would become final after LES approves the document. Issuance of the license is on schedule. LES has said it plans to have roughly 50 people in place in July to begin construction of the plant. LES is a partnership that includes Urenco and US energy companies Duke Power, Entergy, and Exelon. ------------ Exelon and PSEG reach agreement with Justice over merger Washington (Platts)--22Jun2006 Exelon and Public Service Enterprise Group reached an agreement with the Justice Department "which resolves all competition issues reviewed by [Justice] in connection with the proposed merger" of the two companies, they said in a June 22 press release. Under terms of the agreement, Exelon and PSEG will divest "approximately" 5,600 megawatts of fossil-fueled capacity in Pennsylvania and New Jersey, "assuring that the merger will not adversely affect competition," the companies said. "No divestiture of nuclear capacity or plants would be required by [Justice], as the increased fossil divestiture will resolve all competition issues," they said, although "the virtual nuclear divestiture approved by [the Federal Energy Regulatory Commission] in June 2005 continues to be a FERC requirement" if the merger closes. Exelon Chairman/President/CEO John Rowe said the agreement is "a major milestone, and we are moving ahead to get our last remaining regulatory approval from the New Jersey Board of Public Utilities." The merger is still anticipated in third quarter 2006 "upon completion of all required regulatory actions," the companies said, though they noted the final decision on whether to proceed with the merger will be made after all regulatory conditions are known. ------------