Platts - Tuesday, March 06, 2007 http://www.platts.com ------------ Chief regulator rejects RWE's bid to extend Biblis-A's lifetime London (Platts)--6Mar2007 Chief regulator Sigmar Gabriel rejected RWE's bid to extend Biblis-A's lifetime by transferring to it kilowatt-hours from RWE's defunct Muelheim- Kaerlich PWR, Gabriel's spokesman said March 5, confirming unsourced German media reports March 3. In September, RWE filed a petition with the federal government to transfer kWh allowances to Biblis from Muelheim-Kaerlich or from the Emsland PWR, its newest reactor. If approved by Gabriel and two other cabinet officials, the transfer would allow RWE to operate Biblis for about three years beyond 2008, when it is anticipated to be shut under its current phase-out schedule. Gabriel's spokesman said that Gabriel has not yet ruled on RWE's alternative request to transfer lifetime to Biblis from Emsland. However, in public statements so far, Gabriel, a Social Democratic politician, has firmly opposed transfer of allotments from newer reactors such as Emsland to the oldest units, including Biblis. ------------ Savannah River site operator receives contract extension Washington (Platts)--5Mar2007 Washington Savannah River Co. received an 18-month contract extension worth $2.3 billion, depending on final federal budgets, to manage and operate DOE's Savannah River Site through June 2008, parent company Washington Group International said March 5. WSRC has been the site's management and operation contractor since 1989. The Savannah River Site, near Aiken, South Carolina, is involved in work associated with DOE's cleanup program and with the National Nuclear Security Administration, the semiautonomous nuclear defense agency within DOE. WSRC's contract also includes management of the Savannah River National Laboratory, DOE's lead laboratory for environmental research and development. ------------ Finnish charges of illegal uranium mining under investigation London (Platts)--5Mar2007 Charges of illegal uranium mining are being investigated by the Finnish Ministry of Trade and Industry, a ministry official told the Finnish news agency STT March 2. Alpo Kuparinen said the investigation involves companies that may have been doing test drilling for uranium in the Oulanka national park, where mining is prohibited. Kuparinen, deputy director general of the ministry's Technology Department/Division for Research and Foresight Studies, did not identify the companies, but said they have two weeks to respond to the ministry's inquiry. The ministry began investigating after complaints from officials in the town of Salla, near the park. ------------ US Senate energy panel tells budget panel it is split over GNEP Washington (Platts)--2Mar2007 The US Senate Energy Committee is split on the Global Nuclear Energy Partnership, a Department of Energy initiative to develop new kinds of reprocessing and fast-reactor technologies, the panel's top two members told their counterparts on the Senate Budget Committee in a Wednesday letter released late Thursday. The two New Mexico senators who head the Energy and Natural Resources Committee -- Democrat Jeff Bingaman, the chairman, and Pete Domenici, the top Republican -- said there is "no consensus" on the Global Nuclear Energy Partnership. "While some of our members strongly support it, others believe it is unwise and untimely," Bingaman and Domenici said. DOE is requesting $405 million for GNEP for fiscal 2008. --Daniel Horner, daniel_horner@platts.com ------------ Perry returns to routine NRC oversight Washington (Platts)--2Mar2007 NRC cleared Perry to return to routine agency oversight. In a March 2 letter to operator FirstEnergy Nuclear Operating Co., NRC Region III Administrator James Caldwell said the company had "satisfactorily addressed the underlying issues" that had led to performance problems at the Ohio plant. In mid-2004, in response to a series of findings dealing with safety equipment, NRC placed Perry in column 4 of the action matrix of the agency's reactor oversight process. That column represents the highest level of NRC oversight short of required shutdown. Fenoc spokesman Todd Schneider said the March 2 decision was a "gratifying" recognition of the efforts of Perry employees, who "will continue to work hard to sustain that improved performance." For further details, see the March 5 edition of Inside NRC. ------------ Nuclear is "absolutely needed" in the future UK energy mix: IEA London (Platts)--2Mar2007 Nuclear is "absolutely needed" in the future UK energy mix, International Energy Agency Executive Director Claude Mandil told a London press conference March 1. He presented the IEA's in-depth review of UK energy policy at a Department of Trade and Industry briefing, during which he warned the UK government about becoming too dependent on gas. New energy supply investments this past year have focused on gas-fired generation, something the UK government should monitor, he said. All options should remain open for potential developers of power stations to use other fuels, including nuclear, renewables and coal, he said. Mandil said that the UK's planning and licensing system is also proving a "significant barrier" to energy infrastructure developments, something that could "become a risk to security of supply." He described the UK government's energy review as "a significant step in the right direction on these matters." ------------ Framework agreement signed for AP1000s in China Washington (Platts)--1Mar2007 The Westinghouse Electric Co.-Shaw Group Inc. consortium completed a framework agreement to provide China with four AP1000s to be constructed at sites at Sanmen in Zhejiang province and Haiyang in Shandong province. The agreement with China's State Nuclear Power Technology Co. was signed February 28, Westinghouse spokesman Vaughn Gilbert said March 1. Construction is expected to begin in 2009, with the first unit becoming operational in 2013, Westinghouse said in a March 1 press release. Final contracts for the four reactors will be finalized by mid-year, the company said. The framework agreement confirms the basic requirements and obligations of the parties involved. It includes funding for long-lead materials and early engineering. China picked the AP1000 in December 2006, giving Westinghouse its first order for the advanced PWR design. ------------ California bill would lift state ban on new nuclear plants San Francisco (Platts)--28Feb2007 A California legislator with an eye on curbing greenhouse gas emissions has introduced a measure that would lift the state's ban on new nuclear plants. California law bans new nuclear facilities until the waste storage question is resolved. But a bill (A.B. 719) by Assemblyman Chuck DeVore would repeal the ban, citing the need to curb greenhouse gas emissions. "Other states and nations produce far more zero carbon dioxide emission electricity than does California largely due to nuclear power," according to the bill. With federal efforts "well underway to provide an approved means of high-level nuclear waste disposal," and given the long lead times to develop nuclear facilities, by the time a nuclear facility is operational, "an approved high-level waste disposal means will be available," according to the legislation. The bill, introduced on February 22, comes amid an apparent resurgence of interest in nuclear power in California. A staff member for the California Energy Commission Wednesday said the California Legislature is expected to conduct hearings on nuclear issues in coming weeks. Southern California Edison President John Fielder last week said his company is tracking developments in the nuclear industry and may consider building a plant in the next 10 to 20 years. Pacific Gas & Electric Corporation CEO Peter Darbee recently said his company would welcome a partner to invest in nuclear generation outside of California. In addition, the city of Fresno, California, is pushing to build a nuclear plant. --Lisa Weinzimer, lisa_weinzimer@platts.com ------------ Uranium prices won't sink nuclear revival, says Exelon's Crane Washington (Platts)--28Feb2007 Today's rising uranium prices are "not deterimental" to the future renaissance of nuclear power, said Exelon Nuclear President and Chief Nuclear Officer Christopher Crane in his presentation this afternoon at the UBS Natural Gas and Electric Utilities Conference in New York. Crane said Exelon believes that "recent price increases are not sustainable, and the market will correct." Exelon's "main approach" has been to decrease tails assay for its enriched uranium product, he said, because "it's more economical" to purchase more enrichment services and less uranium. He noted "alternative" uranium sources, such as copper and phosphate mines, also have potential to contribute significantly to supplies. Overall, "the current uptick in prices is not hitting us significantly, and we do believe the market will turn before we have to buy significant quantities in 2011 to 2013," Crane said. --Steven Dolley, steven_dolley@platts.com ------------ Thorp reprocessing plant restart delayed until mid-year London (Platts)--28Feb2007 The restart of Sellafield's Thorp reprocessing plant has been delayed until at least the middle of 2007, Sellafield site manager British Nuclear Group said February 28. Thorp was given permission to restart by regulator Nuclear Installations Inspectorate January 9. The permission followed a 21- month shutdown for repairs after a major leak of highly radioactive liquid from primary to secondary containment had damaged interior equipment. BNG said in January, however, that Thorp could not resume one of its key activities -- cutting up spent fuel -- until precautionary checks on an evaporator downstream from Thorp had been completed. Those checks have still not been completed. However, the evaporator was started up again for "a limited period" a few days ago to process some highly radioactive liquid that had been in storage, BNG said February 28. "We expect to shut down Evaporator C once again during March in order to carry out the next series of technical investigations which will not be complete until the middle of 2007," it said. "Full scale operations within Thorp will not be possible until the investigations have been completed." BNG added that, in the interim, it is developing a safety case to support some limited cutting up of spent fuel and chemical plant operations within Thorp. "Once we are satisfied that this is an appropriate step, we will seek the regulatory agreement to implement this proposal," it said. ------------ USEC's 2006 gross profit up $107.4 million from 2005 Washington (Platts)--27Feb2007 USEC Inc. reported 2006 gross profit was $336.9 million, an increase over the $229.5 million reported for 2005. In a February 26 release, the company said the improvement was the result of higher average prices billed to customers for enrichment services and uranium, an 18% increase in the volume of enrichment services, lower interest expense, and lower headquarters' expense. But, the company expects its 2007 gross profit will be substantially lower, reflecting an increase of more than 50% in the company's power costs under a one-year contract with the Tennessee Valley Authority. USEC said it is in negotiations with TVA for a new contract that it hopes will be a multi-year deal. USEC again acknowledged that it will need some form of investment or other participation by a third party and/or the US government in order to raise the capital needed in 2008 and beyond to build its commercial American Centrifuge Plant. ------------