nuclear-news

Financial forecasts bode ill for the nuclear industry

Nuclear reactors are closing and we are counting http://www.beyondnuclear.org/the-nuclear-retreat/2015/9/30/nuclear-reactors-are-closing-and-we-are-counting.html  The United Bank of Switzerland (UBS), the second largest bank in the world, headlined that “Nuke Retirements are coming” in its September 24, 2015 global financial research issue of US Electric Utilities and IPPs. The international investment giant projects “a growing capitulation in the nuclear sector as the prospects for protracted downturn remains front and center.”

UBS forecasts, “We see both ETR (Entergy) and EXC (Exelon) as substantially exposed to this thesis: it has specifically emerged in recent days that not just ETR’s Fitzpatrick but also the Pilgrim unit could well be shut in lieu of investing to improve profile up to NRC levels. Further, we see EXC as highlighting this nuclear retirement thesis further with not just its Ginna plant in NY and Oyster Creek (NJ) plants poised to retire in 2019, but also now its Three Mile Island unit is at risk beyond known the ongoing saga in Illinois over support for Quad Cities, Clinton, and even Byron.”

UBS admits that its forecast “could well underestimate total retirements” as actual retirements might prove more aggressive particularly for the other single unit nuclear power stations. With Exelon’s two unit Quad Cities nuclear power plant in Illinois still posting losses, UBS sees the nuclear power corporation’s “plans to retire the plant as entirely credible (and seemingly committed to investors) should Illinois fail to produce a sufficiently attractive scheme” in spite of the fact that 50% of its nuclear assets are clustered in the state.

October 3, 2015 - Posted by Christina Macpherson | business and costs, USA