Platts - Thursday, August 02, 2007 http://www.platts.com ------------ IAEA to inspect Tepco's earthquake-hit Kashiwazaki-Kariwa plant Tokyo (Platts)--2Aug2007 Tokyo Electric Power Co. will allow the International Atomic Energy Agency to inspect its earthquake-hit Kashiwazaki-Kariwa nuclear power plant over August 6-9, Japan's Ministry of Economy, Trade and Industry said Thursday. Five inspectors from IAEA will study the damage caused by the July 16 earthquake that forced the shutdown of Tepco's largest nuclear power plant which has a combined capacity of 8.21 gigawatt. The inspectors will also study the capacity of the power plant to withstand earthquakes, through series of interviews and an inspection, METI said. The IAEA inspectors will discuss and exchange information on the damage and the inspection with METI's Nuclear and Industrial Safety Agency August 10, the ministry said. The quake measured 6.8 on the Richter scale and rocked the Niigata region at around 10:13 am local time July 16. Tepco's nuclear generation capacity has been more than halved, falling to 6.44 GW from just seven units compared with normal capacity of 17.31 GW from 17 units across Japan. The drop in nuclear power generation has forced Japan's biggest utility to boost its thermal power generation using feedstocks such as direct-burning crudes, low sulfur waxy residue, low sulfur fuel oil, LNG and coal. ------------ NRC extends Vermont Yankee's license renewal schedule Washington (Platts)--1Aug2007 months to allow more time for Entergy's scoping activities and the agency's review. In a July 31 letter to Entergy, NRC's license renewal division director, Pao-Tsin Kuo, said a revised schedule would be issued after the NRC staff determines it has adequate additional information to complete its review. The original schedule had called for a final safety evaluation report to be issued August 1, but Kuo said meeting that target date wasn't possible because of the "volume and complexity of information" involved. The schedule has slipped by "a minimum of two months," Kuo said. Entergy submitted a license renewal application for the 635-MW BWR in January 2006. A commission decision, if no hearing were granted, had been anticipated around July 2008, but three contentions have been accepted by a licensing board. ------------ Group plans to study feasibility of New Brunswick nuclear plant Washington (Platts)--1Aug2007 Team Candu -- a group of five nuclear technology and engineering companies -- said Wednesday that the government of New Brunswick has accepted its proposal to study the feasibility of building a 1,085-MW nuclear plant in the eastern Canadian province. "We are extremely pleased that the Province of New Brunswick has accepted Team Candu New Brunswick's proposal to conduct a feasibility study for the new ACR-1000 [reactor]," Ken Petrunik, chief operating officer for Atomic Energy of Canada, said in a statement. "We are confident the study will clearly demonstrate that a second unit will provide an energy-secure future and economic self-sufficiency for the province," he said. "This feasibility study may lead to a significant private sector investment into electricity generation in New Brunswick, creating up to 4,000 jobs during construction and 500 permanent, high-paying jobs to operate the facility," New Brunswick Premier Shawn Graham said in a statement. "It further cements New Brunswick's growing position as an energy hub on the Eastern Seaboard and could be yet another catalyst towards our goal of self sufficiency by 2026." The group said it will pay for a feasibility study that is designed to evaluate the potential for building and operating an advanced reactor at Point Lepreau generating station, where New Brunswick Power already operates a 680-MW nuclear power plant. The study also will examine the business case for private-sector investment, identify prospective markets for this new source of power, and the project's potential environmental and socioeconomic impact. The study is expected to cost about $2.5 million and could take up to four months to complete. ------------ PSEG eyeing adding nuclear unit at existing Hope Creek site: CFO New York (Platts)--1Aug2007 Public Service Enterprise Group will spend $50 million between 2007 and 2011 on investigating the possibility of adding nuclear capacity at its Hope Creek site in New Jersey, the company's CFO, Thomas O'Flynn, told a Wednesday conference call with analysts. Currently, PSEG operates one 1,059-MW unit at Hope Creek, but O'Flynn said that the site was originally set up for two units. The company has no specific plans at present, and will pursue a careful process in considering the nuclear addition, he told the analysts. In November 2006, Ralph Izzo, the company's president and COO, said acquiring or building another nuclear plant was a possibility for PSEG, but not within the next five years. Izzo said PSEG could be expected to "give much consideration to the future of nuclear energy" as it mulls its "many options for future growth." PSEG earlier Wednesday (Story, 1341 GMT) reported second-quarter net income of $275 million, up from $209 million in the same period of 2006 and attributed the improvement to increased electricity and natural gas rates and lower costs. ------------ NRC okays Point Beach license transfer to FPL Energy subsidiary Washington (Platts)--31Jul2007 NRC staff approved the transfer of the Point Beach operating license to FPL Energy Point Beach LLC, the agency said in a July 31 statement. The company is a subsidiary of FPL Energy. The staff approval is contingent on the licensee's receiving certain regulatory and judicial approvals, NRC said. In December 2006, FPL Energy agreed to pay Wisconsin Energy Corp. $998 million for the two 530-MW PWRs. FPL Energy parent FPL Group said this week that the sale of the plant is expected to be completed later this year. Point Beach owner Wisconsin Electric Power Co., a Wisconsin Energy subsidiary, and operator Nuclear Management Co. submitted an application in January requesting approval of the license transfer. ------------ Entergy signs nuclear component deal with GE-Hitachi Washington (Platts)--31Jul2007 Looking to prepare for increased demand for nuclear plant components in the coming years, Entergy on Tuesday said it had signed a project development agreement with GE-Hitachi Nuclear Energy that includes a major advanced reactor components order. Proceeding with the order now will ensure timely delivery of what Entergy termed "schedule-critical" parts should the New Orleans-based company decide to build a new nuclear unit. The company is positioning itself to retain the option for a new nuclear unit that would be available in the 2017 timeframe, and it is considering adding reactors at its existing Grand Gulf and River Bend facilities. Entergy Nuclear, through NuStart Energy Development, is on pace to file a combined construction and operating license application with the US Nuclear Regulatory Commission at the Grand Gulf site in Mississippi by the end of the year, and it is targeting a mid-2008 COL application for the River Bend site in Louisiana. With a growing number of utilities around the world deciding to build new nuclear reactors, the supply market for important plant components is expected to tighten in the coming years, and by ordering components from the GE-Hitachi consortium now, Entergy is preserving its ability to start commercial operation of a new plant in 2017. Terms of the project development deal and the order are confidential, Entergy said. The order includes large forgings as well as fabrication of several nuclear and turbine components for the reactor design, with several GE businesses and a network of supply chain partners performing the work, Entergy said. As it considers whether to build a new reactor, Entergy said it is examining projections for customer electricity usage, the cost of new nuclear generation and the cost of alternative sources of baseload generation. ------------ PPL taps Bryce Shriver to help develop company's nuclear strategy Washington (Platts)--31Jul2007 PPL Tuesday said Bryce Shriver, who has served as president of the Allentown, Pennsylvania-based company's generation operation for the last three years, will direct development of a comprehensive strategy for PPL's nuclear power operations, that will include the possible construction of new plants and the acquisition of existing units. PPL in June said it is considering an application for a combined construction and operating license to build a third unit near its Susquehanna nuclear plant in northeast Pennsylvania. In his new assignment, Shriver will lead the assessment effort and will examine a range of future possibilities for PPL's nuclear assets. PPL Chief Operating Officer William Spence said the company is convinced that nuclear power plants will be an important part of the US electricity generation mix in the future, maybe even more so than they are today. "This assessment is another important element of our commitment to a systematic identification of growth opportunities that add value for our shareowners," Spence said in a statement. The assessment will include an examination of the benefits of a third unit at Susquehanna, the possibility of PPL participation in other new nuclear power projects in the US, the acquisition of existing nuclear plants and a range of joint venture possibilities, the company said. PPL has said it may be interested in constructing a new nuclear unit near Susquehanna, but it will do so only as part of a joint venture arrangement. The company expects to make a decision regarding a license application for the Susquehanna site within the next few months. Shriver joined PPL in 1999 as general manager of the Susquehanna nuclear plant. He was named vice president of operations in 2000 and became the company's chief nuclear officer in 2002. He has served as president of PPL Generation since 2004. He came to PPL from the Tennessee Valley Authority's Browns Ferry nuclear plant in Alabama. For more news, request a free trial to Platts Electric Power Daily at http://www.platts.com/Request%20More%20Information/index.xml?src=story or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=2_31&products_id=47 ------------ Uranium spot price holds steady ahead of US DOE August auction Washington (Platts)--31Jul2007 With both buyers and sellers largely waiting on the sidelines, the spot price of uranium moved little in the past week, market sources said. Ux Consulting maintained its price at $120 a pound U3O8, but the price-reporting company said the price could change if several sellers are determined to move material despite weakening prices. One such seller is the US Department of Energy, which is offering to sell 200 metric tons uranium as UF6 (the equivalent of about 520,000 pounds of U3O8). Bids to DOE are due August 17. DOE is under some pressure to sell material to continue to pay for the cleanup of contaminated uranium it owns. Some analysts expect that DOE will see prices well below the current spot price for UF6, which, according to Ux Consulting is about about $315/kilogram. And that if the department decides to sell at those prices, the spot U3O8 price will also be forced downward, the analysts said. Meanwhile, TradeTech, which had kept its price at $129/pound U3O8 as of July 20, lowered its price to $123/pound, reflecting what the company called "the psychological influence exerted on the market by published reports of severely lower prices." The Platts NuclearFuel spot uranium price range for the week is $110-$120/lb U3O8. -Mike Knapik, newsdesk@platts.com ------------ Serco Assurance, Golder Associates to examine land contamination London (Platts)--31Jul2007 Serco Assurance and Golder Associates are to examine land contamination in a central area of the Sellafield reprocessing site where a number of leaks occurred in the UK nuclear industry's early days, Serco Assurance said July 30. Known as the "separation area," the land has been identified by state cleanup body Nuclear Decommissioning Authority as one of the highest priority areas for cleanup. The original magnox reprocessing plant, B204, which operated 1952-1964, was constructed there as well as the follow-on and still operating B205 plant. Supporting downstream plants, including plutonium and uranium purification facilities, are also there. Serco Assurance said in a press statement that it has formed a technical partnership with Golder Associates to undertake the 10 million pound (US$20 million) two-year contract. Work will include assessment of the land and groundwater, mathematical modeling, development of a strategy for dealing with contamination, and identifying technologies and actions needed for cleanup, it said. Serco Assurance's managing director Chris Theobald said Sellafield's problems with contaminated land "are more significant than at other nuclear-licensed sites in the UK." The contract was awarded by Sellafield operator, Sellafield Ltd. ------------ FPL making "good progress" toward Point Beach acquisition London (Platts)--31Jul2007 FPL continues to make "good progress" toward Point Beach acquisition, parent FPL Group Inc. said July 30 in a statement on second-quarter results. Regulatory hearings before public service commissions in Wisconsin and Michigan were completed during the quarter, FPL said. FPL Energy expects to complete the acquisition later this year, it said. In December 2006, FPL Energy, FPL's merchant energy subsidiary, agreed to pay Wisconsin Energy Corp. $998 million for the two 530-MW PWRs. FPL Energy also owns a 70% interest in Duane Arnold in Iowa and an 88.2% interest in Seabrook in New Hampshire. FPL Energy reported second-quarter net income of $203 million, up from $90 million in the 2006 quarter. FPL's utility subsidiary, Florida Power & Light, reported second-quarter net income of $211 million, up from $182 million last year. FP&L operates St. Lucie-1 and -2 and Turkey Point-3 and -4, all in Florida. FPL reported second-quarter net income of $405 million, up from $236 million a year ago. ------------ Four teams to split $16 million for GNEP studies Washington (Platts)--30Jul2007 Four industry teams will split $16 million for Global Nuclear Energy Partnership studies, DOE announced July 30. Areva Federal Services, EnergySolutions, GE-Hitachi Nuclear Americas and General Atomics are the leaders of the four teams, DOE said in a press release. DOE spokeswoman Angela Hill said the value of each award is still being negotiated. The awards are expected to be finalized by the end of September, the department said. The teams will be asked to produce technology development roadmaps, business plans and a communications strategy supporting GNEP, a DOE initiative to develop new types of reprocessing plants and fast reactors. Five consortia applied for awards, Hill said; she declined to name the fifth applicant. ------------ Construction of new shelter for Chernobyl falls 7 years behind London (Platts)--30Jul2007 Construction of a new shelter for the Chernobyl reactor destroyed in a 1986 accident has fallen about seven years behind schedule, primarily due to the failure to award a construction contract, the Government Accountability Office said in a report released July 27. "The lack of a contract is partly the result of a lengthy disagreement between the Ukraine and the European Bank for Reconstruction and Development," GAO said. "Technical uncertainties ... have also contributed to schedule slippages and threaten to further delay the project," GAO said in its report. The estimated cost to complete the project is currently $1.2 billion, but "escalating prices for labor and materials" and other factors "could raise costs further," it said. The report, GAO-07-923, is available online (http://www.gao.gov/new.items/d07923.pdf). ------------ US, India reach accord on nuclear pact Washington (Platts)--27Jul2007 The US and India formally announced July 27 they had reached accord on an agreement for nuclear cooperation, breaking a long-standing logjam on one of the steps needed to lift international nuclear trade restrictions on India. One of the most difficult issues in the negotiations had been the terms under which India could reprocess US-origin spent fuel. In a July 27 briefing in Washington, US Under Secretary of State for Political Affairs Nicholas Burns said a key step in resolving that issue was a plan for India to build a reprocessing plant dedicated to handling the material produced by reactors India has designated as civilian. India also has a military nuclear program, and one of the preconditions for cooperation with the US was that New Delhi separate its civilian reactors from its military ones. The agreement also envisions US long-term "programmatic" consent for Indian reprocessing, in connection with the startup of the dedicated facility. ------------ Areva's backlog reaches its highest level in its 5 year history London (Platts)--27Jul2007 Areva's backlog stood at 33.5 billion Euros (US$50 billion)on June 30, the highest level in the company's five-year history and equivalent to three years of sales revenue, Areva said in announcing its first-half 2007 sales figures July 26. The backlog includes a major enrichment contract with Korea Hydro & Nuclear Power Co., a long-term (2008-2012) fuel supply order with Electricite de France, and EDF's Flamanville-3 EPR. Areva said sales revenues for first-half 2007 were up by 6.7% over those of first-half 2006, to Eur 5.37 billion, with the strongest growth in the Transmission & Distribution division that Areva acquired from Alstom in 2004. In contrast, at Eur 3.35 billion, sales revenue for nuclear business during first-half 2007 was flat, only 0.5% higher than the previous year, with a 4.8% rise in Reactors and Services offsetting a 2.8% drop in Front End business. Areva said the Front End result was due to "uneven distribution of deliveries" and wouldn't impact projected annual growth. In first-half 2007, Areva recorded its 100th reactor order, for Flamanville-3, and improved sales revenues for reactor-related services. ------------ France, China to sign agreement for supply of two EPRS July 31 London (Platts)--27Jul2007 Agreements for supply of two EPRs and their fuel will be signed July 31 in Beijing by French and Chinese officials, according to reports in Paris that have not been officially confirmed. A Paris source said Minister of Economy, Finance and Industry Christine Lagarde would lead a delegation that includes Areva CEO Anne Lauvergeon to sign a letter of intent for the deal with China Guangdong Nuclear Power Corp. and national Chinese nuclear authorities. Electricite de France has also been negotiating an agreement with Cgnpc, but EDF on July 26 did not confirm that Chairman/CEO Pierre Gadonneix would be in Beijing next week. Areva also declined comment, and the French Foreign Ministry said only that France hoped the "long and broad" collaboration in nuclear between the two countries would continue "fruitfully." The agreement is said to include supply of 10 years of nuclear fuel, including uranium, for the two 1,600-MW PWRs, which are to be built at Yangjiang, to the east of CGNPC's existing Daya Bay and Ling Ao sites. ------------ NRC and Exelon seeking missing fuel pellets Washington (Platts)--26Jul2007 NRC and Exelon Nuclear are trying to locate two fuel pellets and 99 small pieces of uranium used as in-core power detectors, last documented in 1977 as being in the spent fuel pool at Dresden-3 but not seen since, the company and agency said in interviews July 26. Exelon discovered the discrepancy during an inspection of historical records in May and reported it to NRC, Exelon Nuclear spokeswoman Krista Lopykinski said July 26. The company has been unable to locate the items or further information about them after inspecting the spent fuel pool and interviewing persons who worked at the site three decades ago, she said. There is no evidence the items were stolen or diverted, and radiation monitors would detect an attempt to remove them from the site, Lopykinski said. NRC Region III spokesman Jan Strasma said July 26 that NRC is conducting an inspection on the issue. The missing items do not represent "a safety or security hazard," Strasma said. ------------