Platts - Friday, February 16, 2007 http://www.platts.com ------------ Japan's Tepco ordered to accept enforced checks at nuclear plants Tokyo (Platts)--16Feb2007 Japan's Minister of Economy, Trade and Industry, Akira Amari, ordered Tokyo Electric Power Co on Friday to accept enforced safety checks by the Nuclear and Industrial Safety Agency in addition to the company's own scheduled safety inspections in February. METI's enforced safety checks include unidentified extensions to scheduled checks at Tepco's Kashiwazaki-Kariwa nuclear power plants in central Japan between February 19-March 9, a company official said. The official declined to elaborate on other scheduled safety checks at nuclear plants this year. On January 31 the company detailed 199 case of data falsification and other irregularities between 1979 and 2002 at its 13 nuclear plants in a report to the safety agency. The nuclear safety agency, under METI, could impose a suspension of up to one year on the company's units if the illegal falsification of data is confirmed. In 2003 Tepco was forced to shut down all of its nuclear power plants, which comprise 17 reactors and a total generating capacity of 17.3 GW, after cracks were found in reactor core shrouds in 2002. As a result of the nuclear shutdowns, Tepco's fuel oil consumption surged by 43% on the year to 36.73 million barrels in the fiscal year ending in March 2004. The utility burned 24.09 million barrels of crude in the same fiscal year, up 27% on the year, and its LNG consumption also rose 13% on the year to 19.12 million mt. Tepco normally buys 0.2-0.3% sulfur fuel oil and Minas crude as feedstock for its thermal power plants. It also uses LNG and coal for thermal power generation. Since July 2006, however, the utility's crude and fuel oil consumption has been falling year-on-year due to high nuclear power generation rates. ------------ UK public consultation on new nuclear "inadequate": Judge London (Platts)--16Feb2007 A judge ruled that public consultation in the UK on new nuclear had been "inadequate" and procedurally "flawed." Greenpeace, which brought the case, said in a press statement at the end of the February 15 proceedings that the government "will have to conduct a new, fuller review if they want to justify the future of nuclear power in the UK." Greenpeace's case centered on a 2003 statement by the UK government's Department of Trade and Industry that before any decision was taken to construct new reactors, there would have to be "the fullest possible public consultation" and publication of a white paper. The paper is due to be published next month by the government. Greenpeace argued that the "fullest public consultation" had not been conducted beforehand. The High Court judge concurred and granted what he called a "quashing order." In a statement, the DTI said that it continued "to believe nuclear power has a (future) role to play" in the UK, and promised to "press on with publication of the energy white paper," adding "we will of course consult further." Well-placed sources said they expected the white paper to be delayed until later this year. On public television February 15, Prime Minister Tony Blair stressed the importance to the UK of having nuclear power back on the agenda in order to meet climate change targets. Today's judgement "will affect the process of consultation but it won't affect" government policy, he said. ------------ Senate approves FY-07 NRC funding at $821.6 million Washington (Platts)--15Feb2007 The Senate approved funding NRC at $821.6 million for fiscal 2007 under a continuing appropriations resolution. The measure was approved February 14, a day before the existing stopgap funding measure was to expire. The House approved the measure January 31. Like most other federal agencies, NRC has been operating for the first 4.5 months of fiscal 2007 at last year's spending levels. NRC officials were able to persuade key lawmakers that without a funding increase, the anticipated nuclear renaissance in the US would be significantly delayed. At a February 15 briefing by NRC's top financial managers, NRC commissioners said the agency needed to be better prepared in the future for operating under extended stopgap measures. Commissioner Peter Lyons said he believed that continuing resolutions would be "more the rule than the exception." ------------ PNM chief says US must get past nuclear worries to address GHG Houston (Platts)--15Feb2007 New nuclear power plants must be part of the solution to combat climate change in the US and the country must move beyond its concerns over the power source, Albuquerque, New Mexico-based PNM Resources CEO Jeff Sterba said Thursday. Speaking at the CERAWeek conference in Houston, Sterba said "we have got to get over the nut on nuclear," while acknowledging that the construction of nuclear plants would only be part of the solution. Sterba said he believes a combination of a "robust portfolio" of additional renewable generation, more nuclear power plants, extra clean coal generation, a ramping up of energy efficiency awareness and activity, and the use of electric automobiles is needed to combat climate change. Climate change is "first and foremost a technology challenge," Sterba said, noting that energy efficient light bulbs, which have a lifespan of five years, pay back their initial cost within four to eight months. The power industry also has to make sure that public policymakers understand the technology and the breadth of the technology developments necessary for the US to reverse increases in carbon emissions, Sterba said. He also said there needs to be a hybrid solution for funding climate change solutions, saying industry cannot rely on the federal government for all the funding given current budgetary problems. The funding must come from both the federal government and the private sector, he added. --Keiron Greenhalgh, keiron_greenhalgh@platts.com ------------ BE's financial results show improved performance YoY London (Platts)--15Feb2007 BE's financial results for the nine months ending December 31 showed improved performance over the same period the previous year due to higher electricity prices, BE management said February 13. Profit before interest, tax, depreciation and amortization totaled 775 million pounds (US$1.5 billion) for the nine-month period compared to 462 million pounds a year ago, it said. BE's nuclear output for the period was the lowest achieved for the past 12 years. Analysts are estimating that BE's total nuclear output for the 2006/07 fiscal year ending March 31 is unlikely to reach more than 50 terawatt-hours. This is substantially below the 54.4 TWh recorded in FY-93/94 when BE was being formed in preparation for its privatization in 1996. Moreover, there was no Sizewell B PWR operating in 1994, as there is today. In FY-97/98, for instance, BE's eight nuclear stations -- including Sizewell B -- produced a total output of 66.7 TWh. Boiler tube cracking has kept some advanced gas-cooled reactors out of operation since last fall. ------------ World nuclear generation sets record in 2006 Washington (Platts)--14Feb2007 World nuclear operators appear to have set a record in 2006 for total generation. Led by notably improved output in Canada, Japan and Russia and sustained performance in the US, South Korea, and France, overall generation is likely to exceed 2.87 billion gross megawatt-hours, according to a Platts' Nucleonics Week analysis. The figure in 2005 was 2.77 billion MWh. The US 2006 output of nearly 823 million gross MWh was above 2005's 818 million MWh, but fell short of the 2004 US record of 828 million MWh; the average US capacity factor was just under 90%. Canada's reactors put out 6.2% more MWh in 2006 than in 2005, and Russia's operators got 5.3% more power, about 9 million MWh, from their stations. Florida Power & Light's St. Lucie-1 and Entergy's Vermont Yankee turned in the world's best capacity factors, each above 102%, and the largest output came from E.On's 1,475-MW Isar-2, at 12,442,254 MWh. Full details and tables are in the February 15 Nucleonics Week. ------------ Belgium's Electrabel keeps mum on French nuclear build reports London (Platts)--14Feb2007 Belgium's Electrabel refused to confirm Wednesday that it plans to start building a 1,500-MW nuclear power plant in Tricastin, France in 2009, as reported by Belgian newspaper "Le Soir" Tuesday. The paper cited a note from "central management" at the company's nuclear division. Agreements have been signed with local landowners, the paper said. Electrabel, owned by Suez, has stated since 2004 that it intends to build new nuclear plant in at least one of the countries it is already involved in. "France is one of those possibilities," Electrabel spokeswoman Lut Vande Velde said Wednesday. Electrabel sells power in Belgium, France, Holland, Germany, Italy and Spain. According to "Le soir", Electrabel intends to build a third generation nuclear plant at Tricastin. It would be the first nuclear plant in France not controlled by state-owned Electricite de France. ------------ Florida PSC adopts rules to encourage nuclear development Washington (Platts)--13Feb2007 The Florida Public Service Commission, or PSC, adopted new rules to encourage nuclear power development in the state. The rules would permit investor-owned electric utilities to request partial recovery of the planning and construction costs of a nuclear power plant prior to the plant's commercial operation, the Florida said February 13. Early recovery should reduce risks and encourage financial investment in nuclear plants by allowing prudent costs to be recouped as they are incurred, the PSC said. The rules are designed to spur investment in Florida's energy future and promote the development of nuclear power as a viable energy source, it said. ------------