The owner of the closed Vermont Yankee Nuclear Power Station and the company proposing to buy and decommission the plant have announced a settlement with the state of Vermont and other interested parties. Under the settlement agreement and a related memorandum of understanding, proposed buyer NorthStar Group Services Inc. would provide increased financial assurances and a "comprehensive reporting protocol" and agreed to detailed standards for restoring the project site in the town of Vernon. If approved by regulators, the deal could also lead to the Vermont Yankee plant's decontamination and dismantlement about 45 years sooner than current owner and licensee Entergy Corp. originally proposed.
The Vermont Yankee Nuclear Power Station began commercial operation in 1972. Entergy bought the plant from the Vermont Yankee Nuclear Power Corp. in 2002, and shut it down permanently on December 29, 2014. In a Post Shutdown Decommissioning Activities Report contemporaneously filed with the Nuclear Regulatory Commission, Entergy said it expected to initiate decontamination and dismantlement of the Vermont
Yankee site in 2068, with projected completion of both decommissioning
and site restoration by 2075. In November 2016, Entergy proposed selling the site to NorthStar for decommissioning.
On March 7, 2018, Entergy and NorthStar announced what they called "significant milestones in the approval of the proposed transaction": signing a settlement agreement and memorandum of understanding with Vermont state agencies and other interested parties. Agencies signing the agreement, in whole or in part, included the Vermont Department of Public Service, Agency of Natural Resources, Department of Health, and Attorney General's Office. Other signatories to the settlement include the Town of Vernon Planning and Economic Development Commission, the Windham Regional Commission, the Abenaki Nation of Missisquoi and the Elnu Abenaki Tribe, and the New England Coalition on Nuclear Pollution (NEC).
Under the settlement's revised vision of the proposed transaction, NorthStar
has committed to initiate decontamination and dismantlement by 2021
(and potentially as early as 2019) and to complete decommissioning and
restoration of most of the Vermont Yankee site by 2030 (and potentially as early
as 2026). The Independent Spent Fuel Storage Installation or ISFSI would remain on-site.
The settlement also calls for NorthStar to provide additional financial assurance beyond that originally proposed. Enhanced financial assurance provisions include an increase in the amount of NorthStar's corporate support agreement from $125 million to $140 million; establishment of an escrow account, subcontractor guaranty, and pollution insurance requirements; and a comprehensive reporting protocol. Entergy also committed to contribute to the Site Restoration Trust, and to possibly use future proceeds from litigation against the U.S. Department of Energy over spent fuel storage costs as additional financial assurance.
The settlement remains subject to approval by the Vermont Public Utility Commission. The transaction would also require approval by the U.S. Nuclear Regulatory Commission.
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Showing posts with label NRC. Show all posts
Showing posts with label NRC. Show all posts
Massachusetts nuclear power plant to close
Tuesday, October 13, 2015
The Pilgrim Nuclear Power Station, the sole nuclear power plant in Massachusetts, will close by June 2019, according to its owner Entergy Corp.
Entergy is an integrated energy company headquartered in New Orleans, Louisiana. Entergy is one of the leading nuclear generators in the U.S., with nearly 10,000 megawatts in nuclear generating capacity as well as about 20,000 megawatts of other electric generating capacity, as well as serving retail utility customers in Arkansas, Louisiana, Mississippi and Texas.
The company's Entergy Wholesale Commodities business owns and operates five nuclear power units located in the northern United States, and sells electricity produced by those plants to wholesale customers. Those units include Pilgrim Station's Unit 1, a boiling water reactor with a maximum dependable capacity of 688 megawatts. The Pilgrim Station unit was installed in 1972, and is currently licensed through June 8, 2032.
Today Entergy announced plans to close Pilgrim Station by June 2019. In its press release, Entergy cites "poor market conditions, reduced revenues and increased operational costs." In Entergy's view, low current and forecast wholesale energy prices "brought about by record low natural gas prices, driven by shale gas production" hurt Pilgrim's revenues; wholesale energy market design flaws mean merchant nuclear power plants are inadequately compensated, while "unfavorable state energy proposals ... subsidize renewable energy resources at the expense of Pilgrim and other plants." Entergy also cites "increased operational costs and enhanced Nuclear Regulatory Commission oversight" following a recent NRC decision to give Pilgrim a higher level of scrutiny.
The announcement resembles a 2013 decision by Entergy to close the Vermont Yankee Nuclear Power Station, a plant similar in vintage to Pilgrim Station. Entergy announced Vermont Yankee's closure in 2013; that plant ceased commercial operation at the end of 2014, and Vermont Yankee's decommissioning is now underway. In announcing the Vermont Yankee closure, Entergy pointed to financial factors including a "natural gas market that has undergone a transformational shift in supply due to the impacts of shale gas, resulting in sustained low natural gas prices and wholesale energy prices", high plant cost structures, and wholesale market design flaws.
According to Entergy, it has notified regional electric grid operator ISO New England Inc. of its intent to exit the region's capacity market. Entergy said the exact timing of plant shutdown will be decided in the first half of 2016.
Entergy is an integrated energy company headquartered in New Orleans, Louisiana. Entergy is one of the leading nuclear generators in the U.S., with nearly 10,000 megawatts in nuclear generating capacity as well as about 20,000 megawatts of other electric generating capacity, as well as serving retail utility customers in Arkansas, Louisiana, Mississippi and Texas.
The company's Entergy Wholesale Commodities business owns and operates five nuclear power units located in the northern United States, and sells electricity produced by those plants to wholesale customers. Those units include Pilgrim Station's Unit 1, a boiling water reactor with a maximum dependable capacity of 688 megawatts. The Pilgrim Station unit was installed in 1972, and is currently licensed through June 8, 2032.
Today Entergy announced plans to close Pilgrim Station by June 2019. In its press release, Entergy cites "poor market conditions, reduced revenues and increased operational costs." In Entergy's view, low current and forecast wholesale energy prices "brought about by record low natural gas prices, driven by shale gas production" hurt Pilgrim's revenues; wholesale energy market design flaws mean merchant nuclear power plants are inadequately compensated, while "unfavorable state energy proposals ... subsidize renewable energy resources at the expense of Pilgrim and other plants." Entergy also cites "increased operational costs and enhanced Nuclear Regulatory Commission oversight" following a recent NRC decision to give Pilgrim a higher level of scrutiny.
The announcement resembles a 2013 decision by Entergy to close the Vermont Yankee Nuclear Power Station, a plant similar in vintage to Pilgrim Station. Entergy announced Vermont Yankee's closure in 2013; that plant ceased commercial operation at the end of 2014, and Vermont Yankee's decommissioning is now underway. In announcing the Vermont Yankee closure, Entergy pointed to financial factors including a "natural gas market that has undergone a transformational shift in supply due to the impacts of shale gas, resulting in sustained low natural gas prices and wholesale energy prices", high plant cost structures, and wholesale market design flaws.
According to Entergy, it has notified regional electric grid operator ISO New England Inc. of its intent to exit the region's capacity market. Entergy said the exact timing of plant shutdown will be decided in the first half of 2016.
NY releases Energy Highway Blueprint
Friday, October 26, 2012
This week New York Governor Cuomo released the New York Energy Highway Blueprint (12 megabyte PDF), the state’s plan to “rebuild and rejuvenate New York State’s electric power system and enable the state to meet the needs of a 21st century economy and society.”
The Blueprint outlines 13 recommended actions in four focus areas, including:
One likely result is significant transmission development. If this happens, the new transmission lines could enhance reliability and create opportunities for energy produced upstate or in rural areas to be transmitted to load centers like New York City. Transmission line development typically involves significant construction work and related employment, but can be expensive. How this transmission development will be paid for remains to be seen, and may not be resolved for several years.
Another area of interest involves the development of reliability contingency plans for power plant retirements. The Indian Point nuclear plant, located about 30 miles north of NYC, is currently undergoing a relicensing proceeding before the Nuclear Regulatory Commission. It is unclear whether either or both of the two reactors at Indian Point will be relicensed, meaning New York may need to secure replacement power by 2016 (or sooner). The Blueprint recommends that contingency plans for partial or full retirement of the Indian Point plant include energy efficiency and demand response.
The Blueprint also includes plans to increase the availability of natural gas, including for the purpose of switching customers from oil to gas. The NY Department of Public Service is slated to issue a notice on natural gas expansion policies by the end of 2012. It is unclear how the program will split its focus between residential, commercial, and industrial customers, but it could help reduce the cost and environmental impacts of oil use in New York.
Overall, the Blueprint could result in the addition of up to 3,200 megawatts of additional electric generation and transmission capacity through up to $5.7 billion in private investments. Over the upcoming months, state agencies and the New York legislature will consider the Blueprint, and whether and how it can be implemented. At the same time, businesses are evaluating the Blueprint to see if it can help them develop renewable and traditional generation, transmission lines, energy efficiency, demand response, and other energy projects.
The Blueprint outlines 13 recommended actions in four focus areas, including:
- Expand and Strengthen the Energy Highway: building $1 billion of new electric transmission totaling over 1,000 MW of capacity, develop reliability contingency plans for power plant retirements (including energy efficiency and demand response), and support flexibility in public power authority contracting
- Accelerate Construction and Repair: advance up to $800 million of investments in electric generation, transmission, and distribution, and advance up to $500 million of investments in natural gas distribution to reduce costs to customers and enhance reliability, safety, and emission reductions
- Support Clean Energy: execute new contracts for up to $250 million within the next year with renewable energy developers under the Renewable Portfolio Standard to leverage an additional $425 million in private-sector investment to build up to 270 MW, study NY’s Atlantic offshore wind resource, and repower 750 MW of inefficient power plants on Long Island
- Drive Technology Innovation: facilitate smart grid initiatives with the investment of up to $250 million
One likely result is significant transmission development. If this happens, the new transmission lines could enhance reliability and create opportunities for energy produced upstate or in rural areas to be transmitted to load centers like New York City. Transmission line development typically involves significant construction work and related employment, but can be expensive. How this transmission development will be paid for remains to be seen, and may not be resolved for several years.
Another area of interest involves the development of reliability contingency plans for power plant retirements. The Indian Point nuclear plant, located about 30 miles north of NYC, is currently undergoing a relicensing proceeding before the Nuclear Regulatory Commission. It is unclear whether either or both of the two reactors at Indian Point will be relicensed, meaning New York may need to secure replacement power by 2016 (or sooner). The Blueprint recommends that contingency plans for partial or full retirement of the Indian Point plant include energy efficiency and demand response.
The Blueprint also includes plans to increase the availability of natural gas, including for the purpose of switching customers from oil to gas. The NY Department of Public Service is slated to issue a notice on natural gas expansion policies by the end of 2012. It is unclear how the program will split its focus between residential, commercial, and industrial customers, but it could help reduce the cost and environmental impacts of oil use in New York.
Overall, the Blueprint could result in the addition of up to 3,200 megawatts of additional electric generation and transmission capacity through up to $5.7 billion in private investments. Over the upcoming months, state agencies and the New York legislature will consider the Blueprint, and whether and how it can be implemented. At the same time, businesses are evaluating the Blueprint to see if it can help them develop renewable and traditional generation, transmission lines, energy efficiency, demand response, and other energy projects.
Pilgrim nuclear plant down temporarily
Wednesday, May 23, 2012
The Pilgrim Nuclear Power Station in Plymouth, Massachusetts, was shut down temporarily yesterday due to an apparent malfunction. Media reports suggest a problem with a condenser, a piece of equipment that converts the steam produced by the plant back into water.
Nuclear power plants typically produce electricity by using fissile nuclear material to produce heat. This thermal energy vaporizes water into steam. In turn, this steam spins one or more turbines, each of which is connected to an electric generator. In this regard, nuclear power plants' reliance on steam resembles other thermal power plants such as those fired by combustion fuels like coal or biomass.
As with many other steam-based power plants, nuclear power plants often include steam condensers. A steam condenser takes the steam that is passed through the turbines and converts it back into liquid water. This enables the turbines to extract more energy from the flow of steam, and improves plant efficiency. It appears that a condenser at the Pilgrim station stopped working, leading to a shutdown of the plant.
Any time major equipment at a nuclear power plant sales or malfunctions, operators typically take it very seriously. Plant owner Entergy has reportedly said that it will not restart the plant until it figures out what went wrong.
Pilgrim Station is a relatively large generating facility, capable of producing up to 688 megawatts of power. The plant was reportedly operating at 30% of its capacity prior to yesterday's shutdown. As result, the short-term impacts on electricity markets in New England may be relatively minimal. However, if the plant continues to be down for an extended period of time, particularly as temperatures heat up and air-conditioning loads increase, the region may experience marginally higher power pricing as result of the shutdown.
The Pilgrim plant is also undergoing a relicensing process through the federal Nuclear Regulatory Commission.
Nuclear power plants typically produce electricity by using fissile nuclear material to produce heat. This thermal energy vaporizes water into steam. In turn, this steam spins one or more turbines, each of which is connected to an electric generator. In this regard, nuclear power plants' reliance on steam resembles other thermal power plants such as those fired by combustion fuels like coal or biomass.
As with many other steam-based power plants, nuclear power plants often include steam condensers. A steam condenser takes the steam that is passed through the turbines and converts it back into liquid water. This enables the turbines to extract more energy from the flow of steam, and improves plant efficiency. It appears that a condenser at the Pilgrim station stopped working, leading to a shutdown of the plant.
Any time major equipment at a nuclear power plant sales or malfunctions, operators typically take it very seriously. Plant owner Entergy has reportedly said that it will not restart the plant until it figures out what went wrong.
Pilgrim Station is a relatively large generating facility, capable of producing up to 688 megawatts of power. The plant was reportedly operating at 30% of its capacity prior to yesterday's shutdown. As result, the short-term impacts on electricity markets in New England may be relatively minimal. However, if the plant continues to be down for an extended period of time, particularly as temperatures heat up and air-conditioning loads increase, the region may experience marginally higher power pricing as result of the shutdown.
The Pilgrim plant is also undergoing a relicensing process through the federal Nuclear Regulatory Commission.
NRC approves Georgia nuclear reactors
Friday, February 10, 2012
Federal regulators have approved the construction of two nuclear reactors in Georgia. The Nuclear Regulatory Commission approved the addition of two Toshiba/Westinghouse AP1000to Southern Co.'s existing Vogtle nuclear power plant, despite a dissenting vote by NRC Chairman Gregory Jaczko. (Here is the NRC order.) This represents the first NRC approval for construction of a new reactor since 1978.
31 states are already home to commercial nuclear reactors. The U.S. power industry's nuclear fleet includes 104 reactors at 65 power plants. (EIA provides a nice map with generalized locations of nuclear power plants.) Most are located near water sources, in the eastern half of the country. Illinois alone is home to 11 reactors.
Over the last two decades, nuclear energy has provided about 20% of our electricity supply. For example, in 2010, U.S. nuclear plants generated 807 billion kilowatt-hours out of nearly 3,884 billion kWh total supply. This amounts to about 8% of the total energy consumed in the U.S. from all sources.
The Vogtle project's projected cost is $14 billion, with a targeted operational date as early as 2016. The reactors approved for Georgia each have a nameplate capacity of 1,154 megawatts, making them significant sources of power. The reactors chosen for the project are designed to have simple fail-safe mechanisms to protect against the kind of catastrophe that occurred at Fukushima.
The NRC approved the project by a 4-1 vote. Chairman Jaczko cast the dissenting vote, noting in his written dissent, "I simply cannot authorize issuance of these licenses without any binding obligation that these plants will have implemented the lessons learned from the Fukushima accident before they operate."
By majority vote, the NRC authorized its Director of the Office of New Reactors to issue the work authorizations and licenses needed to allow the construction and operation of Vogtle Units 3 and 4.
31 states are already home to commercial nuclear reactors. The U.S. power industry's nuclear fleet includes 104 reactors at 65 power plants. (EIA provides a nice map with generalized locations of nuclear power plants.) Most are located near water sources, in the eastern half of the country. Illinois alone is home to 11 reactors.
Over the last two decades, nuclear energy has provided about 20% of our electricity supply. For example, in 2010, U.S. nuclear plants generated 807 billion kilowatt-hours out of nearly 3,884 billion kWh total supply. This amounts to about 8% of the total energy consumed in the U.S. from all sources.
The Vogtle project's projected cost is $14 billion, with a targeted operational date as early as 2016. The reactors approved for Georgia each have a nameplate capacity of 1,154 megawatts, making them significant sources of power. The reactors chosen for the project are designed to have simple fail-safe mechanisms to protect against the kind of catastrophe that occurred at Fukushima.
The NRC approved the project by a 4-1 vote. Chairman Jaczko cast the dissenting vote, noting in his written dissent, "I simply cannot authorize issuance of these licenses without any binding obligation that these plants will have implemented the lessons learned from the Fukushima accident before they operate."
By majority vote, the NRC authorized its Director of the Office of New Reactors to issue the work authorizations and licenses needed to allow the construction and operation of Vogtle Units 3 and 4.
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