Platts - Thursday, September 21, 2006 http://www.platts.com ------------ EU says energy consumption unchanged in 2005 but imports growing London (Platts)--21Sep2006 The 25 member states of the European Union saw energy their consumption total 1.64 million mt of oil equivalent in 2005, unchanged from 2004, but energy imports rose as the region's oil, gas, coal and nuclear power production declines, the European Commission said. EU25 production of all sources of energy fell by 4.2% in 2005, resulting in an increase in net imports of 4.5%. As a consequence, the first estimate for 2005 shows that the EU25 depended on imports for 56% of its energy needs, up from 54% in 2004, the commission said. The UK, which accounted for 70% of the crude and 44% of the gas produced in the EU25, saw output fall by 11.4% last year while its gas production fell by 7.7%. In Poland, which produced 57% of the coal mined in the EU25, production fell by 2.1%. In Germany (19% of the total) and the UK (13%), the second and third largest coal producers, production decreased by 3.9% and 17.9% respectively. In France, which produced 46% of all the nuclear energy in the EU25, production increased by 0.9%, but in Germany, which at 16% was the second most important producer, it fell by 3%. EU expects that by 2020 as much as two-thirds of its energy will be imported. For more news, request a free trial to Platts EU Energy at http://www.platts.com/Request%20More%20Information/ or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=23_33&products_id=60 ------------ SKB, Posiva management sign new five-year cooperation agreement London (Platts)--21Sep2006 Management at SKB and Posiva have signed a new five-year cooperation agreement for developing a final repository system, the companies said September 20. The Swedish Nuclear Fuel and Waste Management Co., or SKB, is jointly owned by Sweden's nuclear utilities and is responsible for setting up a final repository there; Posiva is its counterpart in Finland. The companies share information about their respective research projects and have jointly developed a copper and steel capsule for final spent fuel storage. SKB expects to apply for a license to build an encapsulation plant at Oskarshamn before year-end. 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 ------------ NRC begins review of Vogtle ESP Washington (Platts)--20Sep2006 NRC has begun its review of Southern Nuclear Operating Co.'s early site permit application for potential new reactor construction at the company's Vogtle plant site in Georgia. Southern Nuclear submitted its ESP application August 15. In a statement September 20, NRC said its staff has determined the application contains sufficient information to begin a technical review. Southern Nuclear is considering building two Westinghouse AP1000s at Vogtle, where it operates two Westinghouse PWRs. ------------ PSEG mulls 'swapping' nuclear plant stakes with Exelon: CEO Washington (Platts)--20Sep2006 Public Service Enterprise Group is considering "swapping" ownership shares or output in its nuclear power plants with Exelon as a way of further taking advantage of Exelon's expertise, now that plans for a merger between the two companies had been abandoned, PSEG Chairman and CEO James Ferland said Wednesday. In his opening remarks of a conference call with financial analysts, Ferland said PSEG would be "exploring alternatives" that "could be even more beneficial than the existing agreement," under which Exelon operates PSEG's Salem and Hope Creek plants under a management contract, but he did not provide details immediately. Ferland elaborated a little more in response to a question during the call, raising the idea of the swap and said Hope Creek would be a particular focus of such an approach, since PSEG owns 100% of that reactor. Exelon already owns 42.59% of the two Salem reactors. Ferland said he did not want to "hold out any unreasonable hope" that such an arrangement would be achieved easily, but said it was one of PSEG's "objectives and interests" for its long-term relationship with Exelon. PSEG and Exelon on September 14 announced they were scrapping their plans for a merger because of requirements the New Jersey Board of Public Utilities wanted to impose to address issues such as market-power concentration. For more news, request a free trial to Platts Nucleonics Week at http://nucweek.platts.com or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=22_41&products_id=67 ------------ US net nuclear generation rises 2.1% in July from prior year: EIA Washington (Platts)--20Sep2006 Net nuclear generation in the US during July totaled 72.2 million MWh, up 2.1% from July 2005 and 5.5% over the June 2006 total, the US Energy Information Administration said Wednesday in its monthly flash estimates of electric power data. US nuclear generation from January to July rose 2.7% over the same period last year, as the industry "continues to experience fewer days lost to planned and forced maintenance," EIA said. --Steven Dolley, steven_dolley@platts.com For more news, request a free trial to Platts Nucleonics Week at http://nucweek.platts.com or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=22_41&products_id=67 ------------ US net nuclear generation rises 2.1% in July from prior year: EIA Washington (Platts)--20Sep2006 Net nuclear generation in the US during July totaled 72.2 million MWh, up 2.1% from July 2005 and 5.5% over the June 2006 total, the US Energy Information Administration said Wednesday in its monthly flash estimates of electric power data. US nuclear generation from January to July rose 2.7% over the same period last year, as the industry "continues to experience fewer days lost to planned and forced maintenance," EIA said. --Steven Dolley, steven_dolley@platts.com For more news, request a free trial to Platts Nucleonics Week at http://nucweek.platts.com or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=22_41&products_id=67 ------------ CO2 emission reduction laws would benefit nuclear plant firms Philadelphia (Platts)--20Sep2006 Energy analyst Hugh Wynne said Wednesday that a handful of firms capable of financing, building, operating and buying nuclear plants will benefit most if the US moves toward the "carbon-constrained" environment that already dominates in Europe. The Sanford C. Bernstein analyst said at the firm's "Seminar on Climate Change and the Power Sector" conference in New York that six companies--Exelon, Entergy, Dominion, Duke Energy, Southern Company and FPL Group--stand to gain most if the US were to move toward cap-and-trade or another approach to cut carbon dioxide and other greenhouse gas emissions. Those firms have extensive nuclear holdings and operating experience, plus the financial wherewithal to build new nuclear plants. Entities with nuclear plants in the Midwest and Northeast--regions dominated by coal-fired generation--also will see benefits from a move toward carbon constraint, Wynne said, noting that firms with nuclear assets in those regions include Exelon, Constellation, FirstEnergy, Dominion, PPL and PSEG. Wynne also added he expects that, even if CO2 emission credit prices approach those seen in Europe--an average of about $27/ton over the past several years--he expects that coal-fired plants will remain ahead of natural gas-fired plants in dispatch sequences, even though coal plants generate about twice as much CO2/MWh. At the conference, representatives of American Electric Power and FPL said they each expect some kind of CO2-constraint law to be implemented in the US over the next few years, and that CO2 is a consideration in all their plant and fuel planning. For more news, request a free trial to Platts Electric Power Daily at http://electricpowerdaily.platts.com or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=2_31&products_id=47 ------------ European Commission approves Toshiba's Westinghouse purchase Washington (Platts)--19Sep2006 Toshiba's planned purchase of Westinghouse advanced with the European Commission's approval of the deal. The EC September 19 announced its finding that the acquisition would not significantly impede competition in the European Economic Area. The EC said that finding was subject to Toshiba's complying with its commitment to modify its contractual arrangements in the Global Nuclear Fuels joint venture. General Electric has the controlling interest in GNF, while Toshiba and Hitachi are minority shareholders. GNF fabricates BWR fuel under a GE license; Westinghouse provides fuel for BWRs, PWRs, VVERs, advanced gas-cooled reactors, and magnox reactors. The EC said that, during its investigation of the deal under European Union merger regulations, concern arose about possible effects on potential competition in the fuel assembly markets. It cited the combination of Toshiba's stake in GNF with its control of Westinghouse. The EC statement did not specify what changes Toshiba had promised to make. ------------