Platts - Friday, August 22, 2008 http://www.platts.com ------------ NRC extends Oyster Creek license renewal request Washington (Platts)--21Aug2008 NRC's review of Oyster Creek's license renewal request has been extended by an August 21 commission order referring one technical issue back to an Atomic Safety and Licensing Board panel. In its order, the commission directed the panel to resolve "as expeditiously as is practicable" issues related to operator AmerGen's plans to create a 3-D computer model of corrosion in Oyster Creek's steel drywell containment shell. Nuclear Information and Resource Service and five other groups, who contend that the corrosion could jeopardize future safe operation of the plant, appealed those issues to the commission after the ASLB panel rejected their challenges earlier this year. Richard Webster, an attorney representing the groups, said that they are "deeply gratified" by the commission's decision "that more work is needed to show whether the drywell meets the safety requirements with the required degree of certainty." AmerGen spokeswoman Beth Rapczynski said the company has provided the NRC with all the information it has requested and will continue to do so. Oyster Creek is permitted by the NRC to continue to operate beyond expiration of its current license in April 2009 while the agency's review continues, she said. ------------ TVA's 2009 budget to include funds to expand generating capacity Washington (Platts)--20Aug2008 Tennessee Valley Authority's board approved $1.056 billion in spending in 2009 for projects to expand its generating capacity, including work to complete Watts Bar-2, TVA said in an August 20 statement announcing the board of directors' approval of the 2009 fiscal budget. The federal utility said the budget will include $12.6 billion for operating expenses and about $2.1 billion in capital investments. It will increase wholesale power rates by 20% beginning October 1. Most of the increase is to cover rising fuel costs, particularly for coal and natural gas, and will result in an average increase for consumers of $12 to $15 per 1,000 kilowatt-hours, it said. Non-fuel operating and maintenance costs, which include labor and administrative costs, will not be increasing, TVA said. ------------ Shearon-Harris advances in license renewal process Washington (Platts)--19Aug2008 There are no environmental impacts that would prevent renewing Shearon-Harris' operating license for an additional 20 years, the NRC said in an August 19 statement announcing completion of the final environmental impact statement on the proposed renewal. Progress Energy submitted an application for the renewal of the operating license for the unit (also called Harris-1) in November 2006. Its operating license expires October 24, 2026. Before the agency makes a final decision on the application, the staff must complete a safety evaluation report, and the NRC's Advisory Committee on Reactor Safeguards will evaluate that report and make its recommendation. The EIS is at www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1437/supplement33/. ------------ Spot uranium price unchanged; buyers unmoved by Cigar Lake delays Washington (Platts)--19Aug2008 Uranium sellers reacted quickly to speculation that new flooding at Cameco's Cigar Lake mine would significantly delay the start of production there and raised their current offer prices, analysts said. However, buyers were not ready to chase after those offers, the analysts said. The result was that the spot price remained at $64.50/lb for the fifth week on the bounce, according to the latest reports from TradeTech on August 15 and Ux Consulting on Monday. One seller in the market last week is said to have rejected the offers it received on August 13, the day after Cameco's announcement of new flooding at Cigar Lake. This seller, however, is said to still be in discussions with at least one bidders and may yet conclude a deal at or near $64.50/lb. "It will probably take buyers several more weeks to absorb the impact" of the latest Cigar Lake news, said one analyst. He concurred with an observation from Ux that buyers, and sellers, may stay away from the market until the annual World Nuclear Association symposium in London between September 3-5. ------------ Diablo Canyon-2 remains shut after transformer fire Washington (Platts)--18Aug2008 Diablo Canyon-2 remains shut after a transformer failure caused a fire outside the plant's main turbine building early August 17. Pacific Gas and Electric Co. said in a statement August 18 that crews are investigating the cause of the transformer fire and are evaluating the scope of repairs needed to return the unit to service. The fire involved a "transformer that increases the voltage of electricity from the generator to levels suitable for transmission across the grid," PG&E said. "Initial surveys indicate that damage will require the replacement of the transformer. Repairs are also expected to be necessary on adjacent equipment in the yard, including minor repairs to another transformer, which was affected by debris associated with the fire." Diablo Canyon-2 automatically shut down during the event, as it was designed to do, and PG&E said the fire never posed a threat to the two-reactor generating station and that no personnel were injured in the event. Diablo Canyon-1 was not affected and continues operating at 100% power. ------------ US NRC has no environmental concerns with new reactors at Vogtle Washington (Platts)--18Aug2008 Southern Nuclear Operating Co.'s proposal to build two nuclear reactors at its Vogtle plant site in Georgia does not present any environmental concerns that would prevent the company from receiving an early site permit, the US Nuclear Regulatory Commission said Monday. NRC staff issued its conclusion in a final environmental impact statement on Southern Nuclear's request for ESP, which allows an applicant to address site-related issues, such as environmental impacts, for the possible future construction and operation of a nuclear power plant. Southern Nuclear filed its ESP application for Vogtle with the NRC in August 2006. The company also applied for a combined license to build and operate two reactors at the site, which currently hosts two reactors with a combined capacity of 2,430 MW. The NRC staff's technical review of the ESP application also will include a safety evaluation report, the agency said, adding that its Atomic Safety and Licensing Board must conclude a hearing on the Vogtle ESP application before the agency's final decision, which is currently expected by late 2009. ------------ Dominion seeks loan guarantee for new reactor Washington (Platts)--15Aug2008 Dominion filed August 15 for a loan guarantee for North Anna-3, the new unit it is considering building, the company said. Mark McGettrick, president and CEO of Dominion Generation, said the filing of the first part of the loan guarantee application with DOE "is another important step in the process we began more than seven years ago to position ourselves to be among the first to get a license for a new nuclear unit." Dominion filed an application for a combined construction permit-operating license with NRC in November 2007 to build an ESBWR design reactor at the site where the company currently operates two PWRs in central Virginia. Under DOE's solicitation process, the first part of a loan guarantee application is due by September 29. It requires an overview of the project and financing plans and details of actions taken, such as filing for a license, ordering long-lead components or undertaking site preparation work. The second part of the application, due by December 19, must contain additional information to facilitate DOE's due diligence review. ------------ Dominion files application with NRC for Kewaunee license renewal Washington (Platts)--14Aug2008 Dominion said it filed an application August 14 with the NRC to renew Kewaunee's operating license for 20 more years, through December 21, 2033. The 581-MW PWR is about 25 miles east of Green Bay, Wisconsin. Dominion has already received license renewals for its other reactors -- North Anna-1 and -2 and Surry-1 and -2 in Virginia and Millstone-2 and -3 in Connecticut. ------------