nuclear-news

TVA to sell one nuclear reactor to pay for building another nuclear reactor

TVA plans sale of nuclear power unit to fund new project, Knox News, By Josh Flory, August 18, 2011 TVA plans to sell assets including one of its nuclear power units in order to generate the billions in cash needed to finish the Bellefonte Nuclear Plant.

John Thomas, the agency’s chief financial officer, told reporters after Thursday’s board meeting that instead of issuing TVA bonds for the $4.9 billion Bellefonte project, the agency expects to finance the deal mainly through lease-back transactions involving two construction projects that are nearly complete.

Specifically, Thomas said TVA plans to sell the Unit 2 reactor at Watts Bar Nuclear Plant , which is scheduled for completion at the end of next year, and a gas-fired plant at the John Sevier Fossil Plant in Hawkins County…..

Asked about the impact of the arrangement on ratepayers, Thomas said the agency will know once it nails down the financing details. However, he indicated ratepayers would pay significantly more if the construction was financed solely with rate increases.

While much of the discussion at Thurday’s meeting focused on the Bellefonte reactor, a safety violation at the Browns Ferry Nuclear Plant in Alabama also was raised.

On Tuesday, the Nuclear Regulatory Commission upheld its finding of a serious safety violation that will require increased inspection activities at Browns Ferry, also in North Alabama near Bellefonte. TVA had appealed an earlier NRC finding that a stuck valve discovered in October 2010 and then repaired was a rare red level violation.

Bill McCollum, TVA’s chief operating officer, said at Thursday’s meeting that the NRC’s evaluation takes into account not just the occurrence with the valve but also the possibility of additional events, such as fires, happening at the same time…..

http://www.knoxnews.com/news/2011/aug/18/tva-plans-sale-of-nuclear-power-unit-to-fund-new/

August 19, 2011 - Posted by Christina Macpherson | business and costs, USA