Troubled $25 Billion Nuclear Project Gets OK to Continue US News, By JONATHAN LANDRUM Jr., Associated Press ATLANTA (AP) 21 Dec 17— Georgia‘s utility regulators are allowing construction to continue on two new nuclear reactors, despite massive cost overruns for the multibillion-dollar project.
Thursday’s unanimous decision by the state’s Public Service Commission will shape the future of the nation’s nuclear industry, partly because the reactors at Plant Vogtle were the first new ones to be licensed and to begin construction in the U.S. since 1978.
The project, co-owned by Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities, has been plagued by delays and spiraling costs, compounded when the main contractor filed for bankruptcy. Westinghouse Electric Co., the U.S. nuclear unit of Japan’s Toshiba Corp., filed for bankruptcy in March.
Georgia Gov. Nathan Deal praised the PSC’s decision……
The Sierra Club, meanwhile, slammed the vote, calling the project a disaster. Ted Terry, director of the group’s Georgia chapter, said the project should have been halted……
Officials say the PSC vote means Georgia consumers will pay more for power, starting in 2021……
David Schlissel, a utility consultant and analyst who has previously testified against Vogtle, criticized Thursday’s vote, saying regulators were letting Georgia Power and its parent, the Southern Company, off the hook.
“The commission’s own monitors have identified that Southern mismanaged the project,” he said. “Now the commission is giving them unanimous approval to spend even more money.”
He added, “In Georgia, you apparently have commissioners who are fine having ratepayers shovel money into a bottomless pit.”…….
By May 2015, regulators said there was a “high probability” that construction would be delayed even longer than the three years already announced by the owners, according to an analysis obtained by The Associated Press. Estimates from regulators at that time put the utility company’s costs at $8.2 billion.
The rising construction costs hit an industry already under financial pressure, after 2011 a tsunami in Japan triggered meltdowns at the Fukushima Dai-ichi nuclear plant. Meanwhile, the price of natural gas dropped, lessening the incentive to build new nuclear power.
In South Carolina, Santee Cooper and South Carolina Electric & Gas Co. abandoned the construction of a similar nuclear project in July, blaming the decision primarily on the bankruptcy of lead contractor Westinghouse.
Under state law, Georgia Power’s customers will ultimately reimburse the state-regulated monopoly for the flagship plant as they pay their monthly electricity bills. That law allows Georgia Power to charge its customers now for the interest it pays on the borrowed money needed for the project. Under an older law, the utility had to wait until the plant was operating to collect those interest charges from its customers, a practice that meant the interest owed grew during the construction period.
Cost overruns were also an issue with the original reactors at Vogtle. The cost of building the existing reactors at the site jumped from $660 million to nearly $9 billion by the time they started producing power in the late 1980s.
Kempner: Georgia underdogs confront power, get smacked By Matt Kempner – The Atlanta Journal-Constitution, 21 Dec 17, “……..the Georgia Public Service Commission was holding days of hearings recently, but there was no question where it ultimately would end up: keeping the troubled nuclear expansion of Plant Vogtle alive and giving the monopoly Georgia Power approval to squeeze captive customers for billions of dollars more in cost overruns and extra company profits.
It approved all of Georgia Power’s newly projected spending on the unfinished project, decided in advance that it is all reasonable (though not yet prudent) and set the stage for the company to pocket billions in additional profits because of the delays. ……..
Georgia Power and its contractors busted budgets in every conceivable way. Yet, the company has cautioned that its latest cost projections could still be off. And the PSC’s own staff highlighted Georgia Power’s “mismanagement” of the project and said the expansion is “uneconomic” for ratepayers under cost and risk parameters the company proposed this year……….
In a recent hearing, Prenovitz [opposing the nuclear development] asked company witnesses about Vogtle-related costs that they said they weren’t sure of. Then he started punching numbers into a calculator to help the witnesses along with other figures.
Wise, the PSC’s chairman, wasn’t happy.
“I don’t know if it is your style or your personality or your obstinance or some other adjective or just basically your lack of understanding or that you just don’t even care about the process ….”
Prenovitz told me he doesn’t know if he’ll continue to ask tough questions about Vogtle. Preparing filings can take days. Hearings last for hours. “It’s grueling.”
Two legislative committees on Wednesday unanimously approved a controversial bill that could raise New Jerseyans’ utility bills $41 a year to subsidize the state’s largest energy company.
Public Service Electric & Gas officials say the $320 million subsidy would stave off the premature closure of nuclear plants in Salem County, which will be in the red within two years……..
Stefanie Brand, director of the state’s Division of Rate Counsel that represents utility consumers, said Wednesday that the utility company has not demonstrated are hurting financially “other than bald assertions and ultimatums issued by the company.”
“The Legislature has a duty to to its constituents to test those assertions and not simply succumb to the company’s threats,” she said, adding that the review of its financials described in the legislation falls short of what is required for a thorough analysis.
Congress moves to aid Georgia’s troubled nuclear project, Politically Georgia, By Tamar Hallerman, WASHINGTON — Senators on Wednesday began laying the groundwork to aid the country’s only remaining new nuclear project under construction, the Augusta-area Plant Vogtle, less than a day before Georgia utility regulators are scheduled to rule on its fate.
The leaders of the tax-writing Finance Committee unveiled legislation that would guarantee the project roughly $800 million in federal tax credits, money Vogtle’s operators have long been counting on for their balance sheets.
The language, which Georgia’s congressional delegation has been lobbying hard for this year, would end the 2021 sunset date for the previously-promised nuclear production tax credits. Vogtle’s operators would receive the credits only after the new units go fully into operation.
The extension was needed since the project is not scheduled to be complete until 2022.
It is still unclear when both chambers of Congress will consider the legislation. Nuclear industry lobbyists have been pushing for lawmakers to consider the language as part of a must-pass government spending agreement later this week, but time on Capitol Hill is in short supply before the holiday break. U.S. Sen. Johnny Isakson suggested Tuesday that Congress could wait until January and then make the credits retroactive…..http://politics.blog.myajc.com/2017/12/20/congress-moves-to-aid-georgias-troubled-nuclear-project/
Trump Drops Climate Threats from National Security Strategy, Scientific American, The president claimed yesterday that the true danger to U.S. security is not climate change, but regulations By Jean Chemnick, ClimateWire on December 19, 2017President Trump argued yesterday that the true threat to national security is not climate change but regulations that get in the way of U.S. economic and energy “dominance.”
Trump introduced his first National Security Strategy, in which he broke from the Obama administration in not listing climate change as a chief threat. His remarks at times sounded like an economic address, frequently veering into discussion of tax and trade, industrial deregulation, and a celebration of the stock market. Trump insisted that wealth and national security go hand in hand.
“Economic vitality, growth and prosperity at home is absolutely necessary for American power and influence abroad,” he said in an address that heavily focused on global competition over cooperation……
It was a sentiment that permeated the 56-page security strategy, and in particular the section titled “Embrace Energy Dominance,” which dealt with energy and climate issues…….
A former North Korean soldier told the Japanese daily there have been unconfirmed reports that a director of Bureau 131 was recently removed from his position then executed for allegedly disclosing military secrets.
Bureau 131, or the General Bureau of Atomic Energy, is a subsidiary of the ruling Worker’s party, responsible for construction works on the North’s major nuclear and missile facilities, including the main nuclear test site of Punggye-ri and the Tongchang-ri missile launch pad.
The director is believed to have worked as a specialist at the bureau since its establishment. The Asahi report suggests his sentence may have been delivered due to the delayed timing of the regime’s sixth nuclear test, and the collapse of tunnels following the massive underground blast.
A source told the paper, “It seems he took the blame as the prolonged mining of the nuclear facility pushed back the test date to September when it was initially set for spring.”
North Korea conducted its sixth and largest nuclear test at the Pyunggye-ri nuclear facility on September 3, claiming to have tested a powerful hydrogen bomb.
The artificial explosion reportedly caused buildings and grounds in the vicinity to collapse, and has since triggered a series of landslides and aftershocks.
Updating and cleaning up Dutch nuclear industry could cost state €400m http://www.dutchnews.nl/news/archives/2017/12/updating-and-cleaning-up-dutch-nuclear-industry-could-cost-state-e400m/Updating the Netherlands nuclear industry could cost the state up to €400m, according to a review by four senior civil servants and quoted in Tuesday’s Volkskrant. Officials from the economic affairs, health, environment and finance ministries were asked to assess the cost of the clean-up and update by previous health minister Edith Schippers.
They say the biggest financial hit will come from demolishing the Dodewaard nuclear power station which was shut down in 1997. The government has insisted until now that the bill is paid by the power station’s shareholders, which include Vattenfall, the Volkskrant points out. However, the report indicates civil servants now assume the shareholders will default and put the cost of that project to the state at up to €200m.
A further €100m will be needed to deal with nuclear waste created at the Petten reactor – which makes medical isotopes. That waste is currently stored above ground near the Borselle nuclear power station and the state has paid €200m towards disposing of Petten’s waste over the past 20 years, the report says. In addition, the officials say that a ‘rough estimate’ of €60m to €100m will be needed to build a new reactor at Petten – another issue which the state has always assumed will be privately funded.
Confidential The Volkskrant says the report is notable because it is virtually identical to one sent to parliament in July, although that report did not contain the financial details. At the time, a finance ministry spokesman told the paper the figures were confidential. However, the paper has now been published on the website containing all the documents used during the formation of the current government and was spotted by anti-nuclear power group Laka. Laka spokesman Dirk Bannink said the report shows that the nuclear industry cannot exist without state support. ‘The government has to step in every time,’ he said.
** French state-controlled utility EDF’s CEO Jean-Bernard Levy tells Ouest France daily that EDF can no longer build new nuclear reactors in France without state support.
Asked when EDF could build new reactors at home, Levy says “Henceforth, we cannot build new reactors without adequate regulation providing guaranteed income”. He said that Flamanville was launched at a time of high power prices and that now all power sources, nuclear as well as renewable, need to get the same visibility on sales prices.
** For its project to build two EPRs in Hinkley Point, Britain, EDF has obtained an EU-approved state-guaranteed price of 92.5 pounds per megawatt-hour over 35 years, which is way above current market prices.
** The centrist government of French President Emmanuel Macron is not talking about building new nuclear reactors, but about closing old reactors in order to reduce the share of nuclear energy in French power generation to 50 percent by around 2035 from 75 percent today.
** Asked when the first Areva-designed EPR reactor could start up, Levy said ”that should be in a few weeks in China. The start-up will be gradual, to make sure everything works well.
** Levy said EDF expects to get approval to charge nuclear fuel in its Flamanville reactor at the end of 2018. He said that once operational, Flamanville will be a good showcase to sell nuclear reactors in Asia.
Plans for major nuclear power station in Wales win green light, Office for Nuclear Regulation approves design for new reactor at Horizon Nuclear Power’s plant at Wylfa, Anglesey, Guardian, Adam Vaughan, 13 Dec 17, Plans for a major new nuclear power station in Wales have taken a crucial step forward as UK regulators approved the project.
The Office for Nuclear Regulation and two other government bodies gave the green light on Thursday for the Japanese reactor design for Horizon Nuclear Power’s plant at Wylfa, marking the end of a five-year regulatory process……
Attention will now turn to financing the Hitachi-backed project on the island of Anglesey, which was the site of Britain’s oldest nuclear plant until it closed two years ago.
During a visit by UK ministers to Japan last December, it emerged that London and Tokyo were considering public financing for Wylfa. This would be a significant break with the UK government’s previous approach.
Hitachi has already spent £2bn on development. Last week the consortium said it needed a financial support package by mid-2018 or it could stop funding development.
Japan’s Toshiba has bowed out of the race to build nuclear plants in the UK, confirming last week that a South Korean nuclear firm had been chosen to buy its venture to build a plant in Cumbria.
Critics Of Plant Vogtle Say Georgia Doesn’t Need New Nuclear, WABE, MOLLY SAMUEL • Next week, Georgia regulators will decide on the future of the country’s only nuclear power construction project.
One big issue is how much completing the expansion at Plant Vogtle will cost, after years of delays, rising prices and the bankruptcy of the lead contractor – and how much of that cost Georgia Power ratepayers are likely to bear.
But another question is, does Georgia even need two additional nuclear reactors?………
the demand for energy didn’t grow as much as Georgia Power projected when it began the Vogtle expansion. The Great Recession took a bite out of business growth and the ensuing expected energy need. Increasing use of energy-efficient appliances has made a difference, too, according to energy consultant Matt Cox, CEO of the Greenlink Group.
“Georgia’s GDP has been growing pretty healthily for the past several years while our electricity consumption has not been doing the same,” Cox said.
According to Cox’s calculations, Georgia Power could get by without the Vogtle expansion. He said the company could boost energy efficiency, add more renewables and buy power from other companies.
Cox testified this week at the Georgia Public Service Commission’s hearings on Plant Vogtle on behalf of critics of the project…….
Georgia is the only state in the nation with active nuclear power construction. Earlier this year, South Carolina utilities canceled a similar expansion project. That leaves Vogtle as the only project left of what was supposed to be a “nuclear renaissance.”
“No one in their right mind would start a new nuclear plant from scratch today. It’s twice as expensive as other ways of providing the same energy needs,” said Peter Bradford, a professor at Vermont Law School who served on the U.S. Nuclear Regulatory Commission. He also testified on behalf of Vogtle critics at the hearings this week.
“Even half-finished, it’s not at all clear that it isn’t cheaper to cancel and meet the needs some other way,” he said.
New Jersey’s electric utilities would be required to purchase credits from nuclear power plants to help rescue the industry under new legislation. U.S. News, By MICHAEL CATALINI, Associated Press, 15 Dec 17 TRENTON, N.J. (AP) — New Jersey‘s electric utilities would be required to pay for credits from nuclear power plants under legislation lawmakers unveiled Friday as part of an effort the state’s largest energy company says is needed to rescue a major source of power in the state’s energy grid.
PSEG said that its two nuclear plants account for between 40 and 50 percent of electricity production in New Jersey, but are in danger of becoming financially unviable within two years. They said that would cost the state 1,600 jobs.
The financial rescue effort, which has been done in other states like New York and Illinoisas well, has garnered significant opposition from consumer groups and environmental organizations.
“This bill is a direct subsidy from the ratepayers hidden in gobbledygook,” said New Jersey Sierra Club director Jeff Tittel………….
A TV, radio and online ad campaign has also emerged surrounding the issue in New Jersey, with PSEG financing commercials touting the value of nuclear power and the AARP backing ads showing people concerned over higher utility bills.
By Mary Barber | Bio | Published: December 12, 2017 The New Jersey State legislature is entertaining a lame duck proposal by the Public Service Enterprise Group (PSEG), the parent company of New Jersey’s largest utility, Public Service Gas & Electric (PSE&G) to subsidize two PSEG nuclear plants and to have it paid for by New Jersey electricity customers – in other words, a customer-funded bailout.
We don’t need a nuclear bailout, especially since the utility acknowledges that its plants are profitable. To approve subsidies for PSEG’s power plants during this time would be misguided because the company hasn’t provided any proof that their facilities are in need of financial assistance to serve customers or what, if anything, customers would get out of the deal.
Where’s the proof?
There is no proof that PSEG needs subsidies. PSEG has refused to release any information or analysis that supports the idea that their nuclear plants are struggling financially. Has PSEG opened its books so independent market analysis can be conducted, or considered how its request will affect people’s electricity bills? Has the legislature considered how this will impact clean energy investments, or jobs and economic development? The answer is no.
Who pays for what?
Bailing out these plants would surely pad PSEG’s bottom line, but what about the customers who would foot the bill?
PSEG has 2.2 million electricity customers throughout New Jersey. If this bill is passed, customers could pay $350 to $400-million dollars a year within the next 10 years. New Jersey residents and businesses will be ill-served if the focus of this debate remains solely on PSEG’s corporate strategy.
To protect customers’ interest in the future, we must consider this bailout in context, not isolation. If the bailout PSEG is requesting is granted solely to support uneconomic nuclear plants, how will that impact state investment in other clean energy alternatives like energy efficiency and solar?
How is PSEG double-dipping?
The New Jersey legislature isn’t the only venue in which PSEG is seeking a bailout. PSEG was one of a few electric utilities that submitted comments in support of U.S. Energy Secretary Rick Perry’s proposed rulecurrently before the Federal Electricity Regulatory Commission (FERC) to prop up aging coal and nuclear plants, rather than allowing market competition.
Secretary Perry’s proposal has attracted nearly universal opposition – from gas, solar and wind companies, Democrat and Republican members of Congress, conservative organizations, environmental and consumer advocacy groups, free-market advocates, and others in the business community. It’s not an exaggeration to say the only groups that support the Department of Energy’s proposal are those in the coal or nuclear industry who stand to benefit or those lobbying on their behalf. In fact, several utility companies that own fossil fuel assets came out against the DOE proposal because they believe in competitive markets.
Where do we go from here?
Let’s slow down. There are legitimate reasons to be concerned about the premature retirement of these plants, including the loss of low carbon-emitting energy sources before the transition to clean energy is complete and the loss of jobs and contributions to the local tax base. But the issues are complex and can’t be considered in a rushed lame duck legislative session.
Before the debate continues, and certainly before there’s any decision on whether or not to provide subsidies, PSEG must provide proof that its plants are in financial distress, and an independent analysis using all available market data must be conducted.
Moving in favor of PSEG’s proposed bailout now would put the state’s economy and energy future on the wrong course. These issues are too complex and too important to be rammed through.
The US Military Is the Biggest “Big Government” Entitlement Program on the Planet , December 10, 2017, By JP Sottile, Truthout |The US economy is caught in a trap. That trap is the Department of Defense: an increasingly sticky wicket that relies on an annual, trillion-dollar redistribution of government-collected wealth. In fact, it’s the biggest “big government” program on the planet, easily beating out China’s People’s Liberation Army in both size and cost. It is not only the “nation’s largest employer,” with 2.867 million people currently on the payroll, but it also provides government benefits to 2 million retirees and their family members. And it actively picks private sector winners by targeting billions of dollars to an elite group of profit-seeking contractors.
The top five overall recipients collectively pulled in $109.5 billion in FY2016, and their cohorts consistently dominate the government’s list of top 100 contractors. They reap this yearly largesse through a Rube-Goldberg-like system of influence peddlers, revolving doors and wasteful taxpayer-funded boondoggles. Finally, it is all justified by a deadly feedback loop of perpetual warfare that is predicated on a predictable supply of blowback.
But this belligerent cash machine doesn’t just produce haphazard interventions and shady partnerships with a motley assortment of strongmen, proxies and frenemies. It also has Uncle Sam caught in a strange cycle of taxpayer-funded dependence that may ultimately be the most expensive — and least productive — jobs program in human history………
Too Big to Fail?
The US stands alone as a globe-spanning empire with 787 overseas bases, “lily pad” deployments and host country facilities in 88 nations and territories, according to the most recent accounting by scholar David Vine. At home, a Google Maps search reveals another 603 bases, depots, arsenals and assorted military facilities peppered around the 50 states. The US dominates the land, sea and skies, and is moving to dominate space…….
taxpayers’ only end product is a larger military with more bases and more weapons. However, without a serious shift toward non-defense government priorities, cutting the defense budget would mean, in the immediate term, many Americans losing their jobs. In the absence of non-military jobs programs and other forms of robust social spending, these workers depend on military tax dollars to fund their livelihoods, their health care and their kids’ educations. Tax dollars sustain the military-driven local and regional economies within which they live and work. Not coincidentally, this misallocated investment in a “war and weapons-based economy” is, as Major Gen. (Ret.) Dennis Laich and Col. (Ret.) Lawrence Wilkerson write, also reflected in the inherent “unfairness” that feeds off the “all-volunteer force.”……….
So, what are the options now that the US finds itself stuck in this paradigmatic trap? There are three possible alternatives.
One is to simply slash the budget. The downside is that it will dislocate millions of people who rely directly and indirectly on defense spending. The upside is that it will force an immediate retreat from both empire and military Keynesianism. This also could stoke some economic growth if the half to three-quarters of a trillion in annual savings was “returned” to taxpayers in the form of a rebate check. Basically, Americans would finally get the “peace dividend” almost 30 years after the Cold War ended.
The second option is the post-WWII demobilization model. That influx of manpower was met with the GI Bill, tax breaks for new homeowners and investments in infrastructure. This is a truly Keynesian solution. Infrastructure jobs and educational subsidies would provide relief to Americans currently reliant on military Keynesianism for their livelihoods. The original GI Bill “returned $7 to the American economy for every $1 invested in the GI Bill,” notes Jared Lyon of the Institute for Veterans and Military Families. And a study by Costs of War Project determined allocating resources to “clean energy and health care spending create 50 percent more jobs than the equivalent amount of spending on the military,” and “education spending creates more than twice as many jobs” as defense spending.
Frankly, either of these two solutions is far better than the third option, which is to continue to misallocate hundreds of billions in precious capital away from the productive economy while wreaking havoc at home and abroad. And that’s the ultimate no-win situation for a militarized economy that has manufactured its share of bloody, no-win situations since the end of World War II. http://www.truth-out.org/news/item/42829-the-us-military-is-the-biggest-big-government-entitlement-program-on-the-planet
The government has announced up to £56m in funding for the development of
mini-nuclear plants. The money will be available over the next three years
to assess the potential of designs of advanced and small modular reactors
(SMRs). It will also support early access to regulators in order to build
the capability and capacity needed to assess and licence SMRs and will
establish an expert finance group to advise how small reactor projects
could raise private investment in the UK. The first round of funding
comprises up to £4m for feasibility studies and up to £7m to further
develop their capability. Should these efforts prove successful, up to
£40m will be made available for R&D projects to bring the technology into
the mainstream. The government said it wanted the UK to become a world
leader in developing the next generation of nuclear technologies.
Beyond Nuclear 6th Dec 2017, Saudi Arabia’s Energy Minister Khalid al-Falih is extending invitations
to the U.S. nuclear industry to launch the Gulf Region’s most ambitious
nuclear power program. The Saudi atomic energy plan is to build as many as
17 nuclear power plants by 2032. The Saudi Arabia government has stated
that its atomic power program will be “self-sufficient” in the
production of nuclear fuel at 5% enriched uranium-235 and purely directed
for civilian power development.
The pronouncement comes as Saudi energy officials remain silent on their past refusal to not pursue high-grade
uranium enrichment and plutonium reprocessing technologies as military
weapons production facilities. In any case, the introduction of nuclear
materials will significantly increase instability and tensions in the
region. http://www.beyondnuclear.org/home/2017/12/6/us-nuclear-companies-invited-to-help-launch-saudi-arabias-da.html
