nuclear-news

New nukes not viable for Exelon, old nukes a “cash cow”

“They can buy them much more cheaply than they can build them,” …….[Exelon]  is also expected to seek 20-year operating license renewals on the remaining reactors that have not yet been cleared for the license extension

Why Older Nuclear Power Plants Remain ‘Cash Cows’ Despite Fukushima, NEW York Times, By PETER BEHR , April 29, 2011  There are no new nuclear plants in the foreseeable future for Exelon Corp., the largest U.S. reactor operator. Old plants, though, are a different story. Exelon’s proposed acquisition of Baltimore-based Constellation Energy, announced yesterday, would add five nuclear reactors at three plants to the 17 reactors at 10 plants that the Chicago-based company already runs. Exelon’s total nuclear capacity would climb from 17,047 megawatts to nearly 19,000 if the projected $7.9 billion deal is completed.

“They can buy them much more cheaply than they can build them,” said Ellen Vancko, nuclear project manager for the Union of Concerned Scientists….

“These [nuclear] plants, which are fully depreciated, were purchased at a discount and are, in fact, cash cows,” said industry critic Mark Cooper, a senior fellow at Vermont Law School’s Institute for Energy and the Environment……

Exelon has also embarked on a costly plan to increase the output of its existing nuclear plants through uprates achieved by expanding reactor capacity. The uprates would add as much as 1,500 megawatts of new generation if the Nuclear Regulatory Commission (NRC) approves the projects. It is also expected to seek 20-year operating license renewals on the remaining reactors that have not yet been cleared for the license extensions……

However the NRC responds, Exelon and the rest of the industry face a future of increased investment to keep old facilities running and seek new commercial opportunities, analysts say. The proposed merger would considerably strengthen Exelon’s future ability to raise capital for such investments, executives of the companies said yesterday…..

April 30, 2011 - Posted by Christina Macpherson | business and costs, USA