Platts - Thursday, October 25, 2007 http://www.platts.com ------------ Detroit Edison to join Nustart, Constellation Energy to leave London (Platts)--25Oct2007 Detroit Edison is joining Nustart, and Constellation Energy is leaving, the consortium said October 24. NuStart President Marilyn Kray said in a statement that other shifts in the membership will likely occur as utilities' needs change. DTE Edison subsidiary Detroit Edison said it wanted to become a member to collaborate on reactor designs and NRC's licensing review process. It is preparing a combined construction permit-operating license for its Fermi site, and wants to preserve its options, but has decided not to build a new unit at this time. Constellation plans to withdraw from NuStart in December; it recently formed a joint venture with Electricite de France to license, build and operate a fleet of Areva-designed EPRs in the US. EDF International North America, one of 10 energy companies currently part of the consortium, plans to stay, a NuStart spokesman said. Two vendors -- GE-Hitachi Nuclear Energy and Westinghouse -- are NuStart members. ------------ Nuclear energy "indispensable" to meet basic energy needs: EP London (Platts)--25Oct2007 The European Parliament said nuclear energy is "indispensable" if Europe is to meet basic energy needs, let alone greenhouse gas emission reduction goals, in a report adopted October 24. The "own-initiative" report, authored by German MEP Herbert Reul, said nuclear energy is "indispensable if basic energy needs are to be met in Europe in the medium term." The report also said that "the renunciation of nuclear power will make it impossible to achieve the objectives set regarding reductions in greenhouse gas emissions and the combating of climate change." EC Energy Commissioner Andris Piebalgs agreed. Speaking before the vote, he said, "It will be difficult to achieve our climate change goals without the use of nuclear energy." The report was approved with 509 votes in favor, 153 against and 30 abstentions. ------------ Crews on alert as fires near San Onofre Washington (Platts)--24Oct2007 Two brush fires are in the vicinity of San Onofre, and Southern California Edison has built a fire break to protect the station from one of those fires, NRC spokesman Victor Dricks said October 24. He said that one fire is one to two miles away from a warehouse-type structure on the plant site. That facility has been evacuated, but SCE crews remain at the station's two reactors, he said. NRC also has five inspectors at the site, and two inspectors will be in the reactor control rooms at all times to monitor SCE activities, Dricks said. Both San Onofre units are down for maintenance. "The bottom line is that Southern California Edison believes the Camp Pendleton fire," the closest blaze, "doesn't represent a threat to the nuclear power plant," SCE spokesman Jim Alexander said October 24. A preliminary notification of event report NRC issued the same day said that sufficient transmission lines remain available to supply the plant with offsite power but that "the site has experienced intermittent power interruptions on transmission lines to the south." ------------ Fennovoima chooses municipalities for enviro impact assessments London (Platts)--24Oct2007 Fennovoima has chosen three municipalities for nuclear plant environmental impact assessments, the Finnish company's management said in a statement October 23. Management said it would decide before the end of the year whether additional municipalities would also be studied. The plan is to have the assessments ready at the beginning of 2009. Finnish consulting company Poeyry Energy Oy will do the assessments. None of the chosen communities have nuclear plants. There is strong public opposition to a plant in one of them, Ruotsinpyhtaeae, although the municipal council voted October 22 to allow Fennovoima to do an assessment there. Fennovoima is a consortium of utilities and energy intensive industry, led by E.On. ------------ Global nuclear power to grow between 447 or 679 gigawatts by 2030 London (Platts)--24Oct2007 By 2030, global nuclear power will grown from 370 GW in 2006 to either 447 gigawatts or 679 GW, the low and high projections, respectively, according to the International Atomic Energy Agency's latest annual assessment released October 23. Present nuclear power plant expansion is centered in Asia, the IAEA said, home to 15 of the 29 units under construction at the end of 2006. Twenty-six of the last 36 reactors connected to the grid were also in Asia. India currently gets less than 3% of its electricity from nuclear, but at the end of 2006 it had one-quarter of the world's nuclear construction with seven units under construction. Details can be found at www.iaea.org/NewsCenter/PressReleases/2007/prn200719.html. ------------ Global nuclear power to grow between 447 or 679 gigawatts by 2030 London (Platts)--24Oct2007 By 2030, global nuclear power will grown from 370 GW in 2006 to either 447 gigawatts or 679 GW, the low and high projections, respectively, according to the International Atomic Energy Agency's latest annual assessment released October 23. Present nuclear power plant expansion is centered in Asia, the IAEA said, home to 15 of the 29 units under construction at the end of 2006. Twenty-six of the last 36 reactors connected to the grid were also in Asia. India currently gets less than 3% of its electricity from nuclear, but at the end of 2006 it had one-quarter of the world's nuclear construction with seven units under construction. Details can be found at www.iaea.org/NewsCenter/PressReleases/2007/prn200719.html. ------------ Spot uranium prices strengthen by $2, rise to $80/pound U3O8 Washington (Platts)--23Oct2007 The spot price of uranium has risen by $2 to $80/pound U3O8, price reporting firms TradeTech and Ux Consulting said, adding that both buyers and sellers are cautiously testing the market. That caution was reflected in smaller volumes being traded. One deal announced by broker New York Nuclear on October 19 was for 20,000 pounds U3O8 for delivery in November at a price of $79/lb. That deal, New York Nuclear said, was concluded off the company's UraniumOnLine trading system. Sellers are starting to appear more bullish, with some expecting the spot price will again approach triple digits by the end of the year. And while buyers see upward pressure on prices, they appear to believe that the price rise will be slower, staying under $90 by the end of the year, analysts said. Separately, the US Department of Energy has asked for expressions of interest in the purchase of 250 metric tons of surplus, off-specification low-enriched uranium the government owns. The enriched uranium is derived from the processing and down-blending of high-enriched uranium metals, oxides, and fuel elements at DOE's Savannah River site. Because of certain contaminants, the uranium, after processing, would not meet current commercial standards for fuel used in nuclear reactors. Interested firms, which could blend the uranium with other supply to lower the level of contaminants, are to reply to DOE by November 19. Platts Nuclear Fuel price range for the week ending October 26 is $78 to $85/pound. --Mike Knapik, newsdesk@platts.com ------------ Navajo Nation denies further uranium mining on tribal lands Washington (Platts)--23Oct2007 The Navajo Nation will not agree to any further uranium mining on or near tribal lands until the federal government cleans up radioactive contamination left after decades of uranium mining and milling during the Cold War, the chairman of the Resources Committee of the Navajo Council said October 23. George Arthur was part of a panel that told the House Committee on Oversight and Government Reform about the land and water contamination spread over the Navajo Nation -- 27,000 square miles in Utah, Arizona and New Mexico. Panelists recounted routine exposure, from childhood, to uranium concentrates, and illnesses including cancer and kidney disease, which they said resulted from the exposures. It appeared from lawmakers' statements and questions that the committee is considering action to prompt a cleanup of the Navajo lands. ------------ Ruling on upping capacity at Forsmark's reactors due early 2008 London (Platts)--23Oct2007 An environmental court is expected to rule early next year on whether capacity at Forsmark's three reactors can be increased by a combined 410 MW electric, plant management said October 22 in a statement. The court finished hearings on the proposed uprate on October 10. Regardless of the decision, Forsmark management has postponed the project because of safety culture problems. If an uprate is approved, it would be completed in 2011, rather than 2010 as originally planned. ------------ Tepco's Nov oil buy to hit 6 mil barrels after nuclear unit idle Tokyo (Platts)--23Oct2007 Tokyo Electric Power Company expects its oil procurement to hit 1 million kiloliters (6.29 million barrels) in November, an increase of 100,000-200,000 kiloliters from its earlier estimate, after an eight-day unplanned maintenance at the Fukushima-1 nuclear power plant in northeastern Japan, a company source told Platts Tuesday. Japan's largest power utility was forced to idle its 784 megawatt No.2 nuclear reactor at the Fukushima-1 nuclear power plant after finding a glitch on October 11. It restarted the unit October 19, according to the company. Tepco's extra fuel requirement for November will likely be met by oil purchases, as it was too prompt to secure LNG for the month, especially as LNG cargoes are increasingly expensive, the source said. The utility had originally planned to buy 800,000-900,000 kiloliters of oil in the month, Platts reported earlier. Tepco's preference for oil is also due in part to its attempt to increase its oil stocks, which fell by some 150,000 kiloliters in September to 1.35 million kiloliters by the end of month, the source said. As part of this effort, Tepco bought two medium range low sulfur fuel oil cargoes from South Korea through a trader for lifting in November. Meanwhile, Tepco plans to buy some 1.80 million mt of LNG in November, but plans to maintain its LNG consumption levels at around 1.5 million to 1.6 million mt in the month in order to stockpile for the winter demand season, the source said. Japan's winter power season runs from December-March. "As our LNG stocks are seen to come in at around 900,000 mt at the end of October, we aim to bring them back to 1 million mt in November ahead of the winter demand season," he added. The company has total LNG storage capacity of around 1 million mt. Tepco's thermal power generation increased this year after damage from an earthquake on July 16 forced it to shut its 8.21 GW Kashiwazaki-Kariwa nuclear power plant in northwestern Japan. Tepco's switch to more thermal generation in order to make up for the loss in nuclear power has seen increased use of feedstocks such as direct-burning crudes, low sulfur waxy residue, LSFO, LNG and coal. MORE LNG WANTED, PRICE A PROBLEM Tepco is still considering buying three to four additional LNG spot cargoes every month over the December-March period, but the company has been reluctant to seal any deal recently as offer levels for spot LNG cargoes have risen above $12/MMBtu, the source said. The company prefers prices of $11/MMBtu or lower, the source added. "We may have to consider reducing our LNG consumption if the prices remain...at this level," the source said. Tepco already bought an additional one to two spot LNG cargoes for each month from December-March at about $11/MMBtu, Platts reported earlier. "We have bought 15 spot cargoes or roughly about 1 million mt of LNG since the July 16 nuclear outage for the current fiscal year," the source added. Most of the cargoes were sourced from such African producers as Nigeria and Egypt, he added. 500,000 KL/MONTH EXTRA OIL FOR WINTER Tepco's additional winter oil requirement could be about 500,000 kiloliters/month from December onwards, as the utility has agreed to buy that amount of low sulfur fuel oil from Japanese refiners for an indefinite period following its nuclear outage in July. The company is also considering options for importing two to three MR-sized LSFO cargoes every month in the winter to meet its oil needs, the source added. Meanwhile, Tepco sources have said its total winter oil procurement will be about 1 million kiloliters/month from December, but that the oil volume would be determined by its LNG purchase volume. Last December, Tepco bought 378,000 kiloliters oil and 1.42 million mt of LNG, company data showed. During a July 31 press conference in Tokyo, Tepco president Tsunehisa Katsumata said the company expected to double its oil procurement to about 10 million kiloliters for its 2007-08 fiscal year (April-March). Katsumata also said its LNG procurement would likely increase by 1 million mt to 19 million mt over the same period. However, Tepco's LNG procurement could be increased by another 1 million mt to about 20 million mt in the fiscal year, the source said Tuesday. WINTER PLANT MAINTENANCE With the recent restart of the Fukushima-1 unit, Tepco currently operates six nuclear units with a combined capacity of 5.65 GW, which amounts to 32.6% of its total nuclear capacity of 17.31 GW at 17 units across Japan. Tepco plans to start three-month maintenance programs at the 784 MW No.5 reactor and the 784 MW No.2 reactor at its Fukushima-1 nuclear power plant in mid-January and mid-March, respectively. In February, Tepco also plans to start another three-month maintenance program at the 1.1 GW No. 4 reactor at its Fukushima-2 nuclear power plant. Tepco's 8.21 GW Kashiwazaki-Kariwa nuclear power plant is likely to remain shut at least until March 2009, according to industry sources. Meanwhile, Tepco is scheduled to announce its results for the April-September period on October 31, when the company is expected to release revised figures for its fuel procurement costs amid rising fuel prices. --Takeo Kumagai, takeo_kumagai@platts.com ------------ Hope Creek uprate won't impact environment significantly: US NRC Washington (Platts)--22Oct2007 A planned uprate at the Hope Creek nuclear power plant would have no significant impact on the environment, the US Nuclear Regulatory Commission said Monday. The finding means that the agency will not prepare an environmental impact statement for the uprate of about 125 MW to the Hancocks Bridge, New Jersey, reactor, which is currently rated at 1,100 MW. Operator PSEG Nuclear submitted its uprate request to NRC in September 2006; the review is expected to be completed this spring, according to NRC's web site. ------------ NRC issues confirmatory order to APS for operator training Washington (Platts)--22Oct2007 NRC told Arizona Public Service Co. to develop special training for reactor operators that stresses the need to report errors, perform independent work verifications, and deter workers from concealing mistakes. NRC issued the confirmatory order to APS October 22 after an operator last November entered incorrect water flow information into a Palo Verde computer during a steam generator maintenance procedure. When the operator realized his error, he changed the information without notifying his supervisor as required. The incident did not compromise plant safety, but it involved "apparent willfulness," said NRC. The agency order also told APS to assess independent verifications of its operations and maintenance within the next year and to ensure that any improvements at the three-reactor station are effective. The former operator, who resigned shortly after APS discovered the error last November, can regain his NRC operator's license only by completing specified tasks, NRC spokesman Victor Dricks said, including writing about the incident in a Professional Reactor Operator Society magazine and submitting a written report to the Institute of Nuclear Power Operations. ------------ UK's British Energy stops two nuclear plants on wiring worries London (Platts)--22Oct2007 UK power generator British Energy has taken offline its 604 MW Hartlepool-2 and 575 MW Heysham-1 nuclear power units after finding a wiring problem at its 607 MW Hartlepool-1 plant, BE said Monday in a note on the London stock exchange. The two units have similar design. Hartlepool-1 is currently on a statutory outage, and during an inspection of its boiler closure units the wiring fault was found. The return of Hartlepool-1 is to be delayed for further inspection. The other unit at Heysham, the 575 MW unit two, is currently on a refueling outage and the return of this plant will also be delayed for further inspection, the operator said. "In all, four units are affected by this decision," BE said. "British Energy will consider the potential to integrate any additional inspection work arising from our assessment within planned outages over the balance of the year," company said. ------------ US DOE takes key step toward nuclear waste repository application Washington (Platts)--19Oct2007 The US Department of Energy took a key step toward seeking a Nuclear Regulatory Commission license for a nuclear waste repository in Nevada Friday by certifying to commission that it had completed an electronic database of records on the project. Under NRC rules, DOE cannot apply for the license to build and operate the facility at Yucca Mountain until six months after it has assured the commission that the records are available for public review in the database. "Yucca Mountain is one of the most studied pieces of real estate in the world," Edward Sproat III, the director of DOE's Office of Civilian Radioactive Waste Management, said in a statement. "Through the NRC's electronic network, the public can view scientific data, geologic analyses, and other documents related to DOE's license application for the nation's spent nuclear fuel and high-level waste repository." DOE reasserted its intention to submit the license application to NRC by June 30, 2008, a move that it has indicated would enable it to open the repository by 2017, under the best of circumstances. The department added that it will continue to add documents to the so-called Licensing Support Network. The department said it made more than 3.5 million documents available through the database. Nevada state officials, who oppose the DOE project, have indicated they would challenge the department's certification. Officials with the Nevada Agency for Nuclear Projects, which monitors the DOE project, were unavailable for comment Friday. The certification is the second for DOE, which claimed it had provided all necessary documents to the database in 2004, only to be challenged by the Nevada agency. An NRC pre-licensing board agreed with the state's claim and rejected the certification. --Bill Loveless, bill_loveless@platts.com ------------ NRC confirms Exelon took actions on Peach Bottom guards Washington (Platts)--19Oct2007 NRC has issued a confirmatory action letter to Exelon to confirm actions taken by the company to address concerns related to the recent revelation by a former Peach Bottom guard of sleeping or otherwise "inattentive" security guards at the plant, the agency said in a statement October 19. The actions include "detailed briefings to security force personnel on acceptable behavior; round-the-clock supervisory oversight of security activities at the plant; and keeping the NRC informed of the status" of the transition from Wackenhut contractor security forces to an Exelon-run force, NRC said. NRC Region I Administrator Samuel Collins said in the statement that "NRC's reviews are ongoing and we will not hesitate, if needed, to seek additional actions to ensure the security program is functioning as required." NRC plans to conduct a follow-up inspection, tentatively scheduled for early November, to review Exelon's root cause analysis and corrective actions, the agency said. ------------ Critics say bills give DOE too much say on loan guarantees Washington (Platts)--18Oct2007 DOE would have unbridled control of federal loan guarantees under energy bills pending in both the House and Senate, representatives of special interest groups said October 18. The Senate-passed bill, HR 6, would exempt the DOE program from the Federal Credit Reform Act of 1990, said Ryan Alexander, president of Taxpayers for Common Sense. She said that the 1990 law requires any federal loan guarantees to be included in the annual budget resolution and to be part of the annual appropriations, even though real dollars would be involved only in a default, giving Congress oversight of the program. The House-passed bill (HR 3221) has a provision preventing appropriators from excluding any category of eligible energy projects from the guarantee program, said Ben Schreiber, staff attorney with US PIRG (Public Interest Research Groups). Nuclear power is not on the list of energy projects eligible for federal loan guarantees, under the House energy appropriations bill for fiscal 2008. All of these changes are being made to help the nuclear power industry, said Alexander. Industry officials have said new reactors will need $25 billion in federal loan guarantees in FY-08, alone. ------------