nuclear-news

Exelon cutting down on nuclear reactor upgrade spending

Exelon cuts nuclear upgrade spending amid low gas prices, Reuters, 8 Feb 13, 02/08/2013Feb 7, 2013 11:27pm GMTFeb 7 (Reuters) – Low natural gas prices and slow economic growth forced U.S. power company Exelon Corp to cancel plans to spend $2.3 billion on capacity expansion at its nuclear power plants and other projects, Chief Executive Chris Crane said on Thursday.

To support its credit rating and dividend, Exelon officials decided to reduce capital spending after an evaluation of the performance of its 35,000-megawatt generating plants against low commodity prices and lackluster demand growth for electricity…….

An abundant supply of natural gas, which reduced gas prices to the lowest level in more than 10 years, has already forced some power companies to abandon plans to build new nuclear units and to shutter older coal-fired plants rather than invest in equipment to meet stricter federal environmental standards.

An announcement earlier this week by Duke Energy that it will retire rather than repair a damaged Florida nuclear unit has been viewed as a sign that continued low power and gas prices may be a threat to some existing nuclear plants.

For the first time, Exelon detailed another area of expenses that may pressure its nuclear fleet – spending on measures to comply with revised safety standards following the 2011 Fukushima nuclear disaster…… http://uk.reuters.com/article/2013/02/07/utilities-exelon-idUKL1N0B7CG320130207

February 9, 2013 - Posted by Christina Macpherson | general