Exelon drops Texas reactor plan, cites cheap natgas

http://uk.reuters.com/article/2012/08/28/us-utilities-exelon-texas-idUKBRE87R1AD20120828

(Reuters) – Exelon Corp will halt efforts to gain regulatory approval to build a new nuclear plant in southeast Texas, the company said on Tuesday.

Chicago-based Exelon, the nation’s largest nuclear operator, said it notified the U.S. Nuclear Regulatory Commission that it will withdraw itsapplication for an early site permit for land near Victoria in southeast Texas.

“The action is in response to low natural gas prices and economic and market conditions that have made construction of new merchant nuclear power plants in competitive markets uneconomical now and for the foreseeable future,” said Charles Pardee, Exelon Generation’s chief operating officer.

[…]

In 2008, Exelon announced a plan to develop two new reactors at the Texas site, becoming the 12th applicant to seek a combined construction and operating license (COL) from nuclear regulators as power companies rushed to qualify for financial incentives offered under the Energy Policy Act of 2005.

By 2010, however, industry enthusiasm for new nuclear plants began to wane as the recession cut into electric demand, costs for nuclear construction soared, carbon legislation was delayed and natural gas supplies began to rise, making nuclear plants less competitive.

[…]

After the March 2011 nuclear disaster in Japan, NRG Energy said it would stop investing in development of two new reactors at the existing South Texas Project station 90 miles southwest of Houston, but partner Toshiba continued with the project.

Late last year, the NRC said it would not issue a license to build the new STP reactors because current project ownership does not meet foreign ownership restrictions.

Dallas-based Luminant, a unit of Energy Future Holdings, has delayed the completion schedule for its proposed two-unit expansion at the Comanche Peak nuclear station in north Texas until 2021 and 2022.

Earlier this month, the NRC said it would suspend issuing final decisions on nuclear licenses until the agency resolves the complicated issue of spent nuclear fuel.

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August 29, 2012 - Posted by arclight2011 | Uncategorized