Platts - Thursday, October 26, 2006 http://www.platts.com ------------ EC backs segregated nuclear decommissioning funds for new plants London (Platts)--26Oct2006 The EC backed segregated nuclear decommissioning funds for new nuclear plants in a formal recommendation for European Union member states adopted October 24, but didn't insist the requirement be applied to existing reactors. The European Commission, which has been studying the issue for several years, said internally or externally managed segregated back-end funds were "the preferred option for all nuclear installations." The opinion is not legally binding but the EC has been trying to standardize practices across the EU. There is division among EU countries on how decommissioning funds can be used. Critics claim utilities that can maintain decommissioning provisions in internal accounts have tax-advantaged investment funds that distort competition in the EU's electricity market. The EU recommends that national governments set up independent oversight bodies to control the back-end funds, and plans to set up a permanent committee of national experts on the use of decommissioning and waste management funds. ------------ FPL and Constellation end merger plans Washington (Platts)--25Oct2006 FPL Group and Constellation Energy Group have ended merger plans, the companies said October 25. The companies said they decided to part ways because of "uncertainty" over regulatory and legal matters pending in Maryland, where Constellation is based. Merger plans got caught up in the political scrutiny of significant hikes that were to go into effect this summer in residential electric rates, the first since Maryland's electricity market was restructured in 1999. The united company was to have been called "Constellation Energy," and it would have created the second largest electric utility portfolio with the third largest nuclear generating capacity in the US. Constellation Energy Chairman/President/CEO Mayo Shattuck III emphasized in a prepared statement the company's "exceptionally strong stand-alone strategy," while FPL Group Chairman/CEO Lew Hay stressed the future "growth prospects" for both companies. ------------ Toshiba to keep its equity share in global nuclear fuel London (Platts)--25Oct2006 Toshiba is expected to keep its equity share in global nuclear fuel, its joint venture with General Electric Co. and Hitachi for BWR fuel manufacture, but relinquish its right to 22% of voting rights on the GNF board, industry officials said this week. Jack Fuller, CEO of GNF, told Platts in an interview October 24 that GE is studying how Toshiba can remain in GNF without infringing on commercial confidentiality and other business-sensitive exchanges now that it has taken over 77% ownership of Westinghouse Electric Co., which makes BWR as well as PWR plants and fuel. He said he didn't expect Toshiba to sell its 24.5% equity stake in the BWR fuels company, which has manufacturing facilities in Japan, the US and Sweden. The European Commission's competition authorities told Toshiba to resolve the GNF issues within three months when it approved the Japanese firm's takeover of Westinghouse last month, and Toshiba recently wrote formally to GE and Hitachi to suggest discussions on the issue, Fuller said. ------------ Ukraine's Zaporizhia NPP restarts nuclear power reactor Kiev (Platts)--25Oct2006 Ukraine's largest nuclear power plant, Zaporizhia NPP, has restarted its nuclear power reactor number 5 after about two months of repairs, EnergoAtom said Wednesday. The 1,000 MW reactor, which had been out of operation since August 27 for a scheduled maintenance repair, was restarted seven days earlier than was originally planned. The reactor was loaded with fresh nuclear fuel and is currently running at 91% of its full capacity, the company said. The restart of the reactor one week ahead of schedule would allow the power plant to produce an additional 170 GWh of power, the company said. Zaporizhia NPP is Europe's largest nuclear power plant by capacity as it runs six 1,000 MW nuclear power reactors. EnergoAtom incorporates four nuclear power plants and is the biggest power producer in Ukraine. The company said that one reactor out of 15 it operates is currently under repair. EnergoAtom produced about 67.3TWh of electricity in January-September, up 3.3% year-on-year. ------------ Perma-Fix to acquire Nuvotec USA and Pacific Ecosolutions Washington (Platts)--24Oct2006 Perma-Fix Environmental Services intends to acquire Nuvotec USA Inc. and that company's subsidiary, Pacific Ecosolutions Inc., a mixed waste management company, Perma-Fix said October 24. Under its letter of intent, Perma-Fix can issue up to $7 million in common stock shares, assume some of the acquired companies' debt, and perhaps pay "a certain amount of cash" for the acquisition. Pacific Ecosolutions has a low-level radioactive waste and mixed waste processing facility adjacent to DOE's Hanford facility, a former nuclear weapons complex site, in Richland, Washington, and has existing contracts for cleanup at Hanford, Perma-Fix said. Perma-Fix Chairman/CEO Louis Centofanti said that the acquisition, if completed, "will allow us greater opportunities in processing higher level radioactivity." He noted that "by nearly all estimates, the Hanford site will be one of the most expensive of all the DOE's nuclear weapons facilities to remediate." Cleanup at Hanford is expected to continue until 2030, Perma-Fix said. ------------