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Analysis Shows U.S. Nuclear Plants Losing $2.9 Billion Annually

June 17, 2017

Increased use of less-expensive natural gas and renewable sources of energy for power generation is putting financial pressure on U.S. nuclear power plants, according to an analysis of electricity costs from Bloomberg New Energy Finance (BNEF).

Nicholas Steckler, an analyst for BNEF, in a June 14 report said nuclear operators are losing about $ 2.9 billion a year. Steckler said nuclear plants are being paid $ 20/MWh to $ 30/MWh for their electricity, while their generation costs an average of $ 35/MWh.

The report says 34 of 61 U.S. nuclear plants are in the red. Steckler specifically cited merchant nuclear plants owned by FirstEnergy Corp., Entergy Corp., and Exelon.

In a statement, Entergy said it would not comment on individual plants but said “financial challenges due to sustained wholesale power price declines and unfavorable market conditions” are affecting the profitability of its nuclear operations. The company said it is now concentrating on its regulated utility business. Entergy, along with its wholesale commodities division, owns seven U.S.…

$28 Million in DOE Funding Available for Advanced Energy Systems R&D

June 13, 2017

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The Department of Energy (DOE) is offering approximately $ 28 million in cost-shared funding for research and development of advanced energy systems. According to three separate funding opportunity announcements (FOAs), the department is looking for research into advanced combustion systems, advanced turbines, and gasification.

“Advanced energy conversion systems are designed to enable efficient, low-cost, and near-zero emission energy from existing and new fossil fuel power plants,” a DOE release says.

University Turbine Systems Research

The University Turbine Systems Research (UTSR) program has available $ 5.15 million to fund laboratory/bench scale research and development projects in six technical topic areas:

Low-NOx combustion technology development for “air-breathing” advanced turbines
Advanced cooling technology development for “air-breathing” advanced turbines
Advanced materials technology development for “air-breathing” advanced turbines
Big data analytics
Advanced instrumentation
Pressure gain combustion

DOE anticipates awarding funding for six to nine projects. Up to three awards are expected in each of the first three topic areas, and one per topic in the last three areas.…

Proposed Wisconsin Gas-Fired Plant Would Aid Utilities’ Renewable Initiatives

June 11, 2017

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Minnesota Power and Wisconsin’s Dairyland Power Cooperative announced plans to co-develop a combined cycle natural gas–fired power plant, a 550-MW facility designed to provide backup power for the utilities’ efforts to expand their use of renewable energy sources.

The Nemadji Trail Energy Center would be built along the Nemadji River in Superior, Wis., a location adjacent to both utilities’ service territories. The utilities would co-own the facility and divide its electrical power output. The companies said that if regulators approve the plan (a decision is expected sometime in 2018), construction could begin in 2020 and the $ 700-million plant—each company investing $ 350 million—could be operational in 2024 or 2025.

Minnesota Power spokeswoman Amy Rutledge said the Superior site’s access to existing natural gas and electric transmission lines made it a logical choice for the utilities. The area is served by multiple natural gas lines, including from Northern Natural Gas, Great Lakes Gas Transmission, and ANR Pipeline, according to analysts Rocco Canonica and Richard Frey of S&P Global and Platts Analytics.…

EPA Extends Deadline for 2015 Ozone NAAQS Area Designations

June 9, 2017

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The Environmental Protection Agency (EPA) is giving states an extra year to develop air quality plans related to the 2015-National Ambient Air Quality Standards (NAAQS) for ground-level ozone.

In a June 6 letter sent to U.S. governors, EPA Administrator Scott Pruitt announced that the extended deadline for promulgating initial area designations for the rule issued by the Obama administration in October 2015 would give the agency more time to assess available information and complete its review of the rule.

When it promulgated the rule, which slashed the current limit of 75 parts per billion (ppb) to 70 ppb, former EPA Administrator Gina McCarthy said the decision was based on well-founded concerns for public health. States have begun submitting proposals for area designations under the new standard.

The Trump administration’s review of the rule is more focused on how it will affect businesses. According to the EPA, areas designated as being in “nonattainment” of the standard face consequences, including: “increased regulatory burdens, restrictions on infrastructure investment, and increased costs to businesses.”…

Kemper, Now Slated to Start in Late June, Will Need Costly Post In-Service Improvement Projects

June 7, 2017

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Mississippi Power’s Kemper County integrated gasification combined cycle (IGCC) project is now expected to be in service by the end of June, but the company expects it will need post in-service improvements. It also said timing of when it will file a case to address the recovery of costs not currently reflected in rates is uncertain.

The Southern Co. subsidiary said on June 5 that it filed a rate plan with the Mississippi Public Service Commission (MPSC) that would allow current rates for recovery of portions of the Kemper project’s existing combined cycle gas turbine (CCGT) plant to remain in place. If approved, that filing will not increase customer bills, it said.

It added, however, that discussions with the MPSC continue on the status of the project and the nature and timing of a rate filing to address recovery of the remainder of the Kemper project costs, which includes its gasification component.

Mississippi Power wants a timely resolution of such a filing, which will likely require a settlement between the company and the Mississippi Public Utilities staff as well as other parties.…

Southern Co. to File Rate Case for Kemper IGCC, Already Economically Unviable in Face of Cheap Gas

June 3, 2017

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Announcing yet another lag beyond a new in-service date for its Kemper County integrated gasification combined cycle (IGCC) project, Southern Co. may raise discussions with regulators about the possibility of scrapping the project’s gasification component.

The company’s subsidiary Mississippi Power last said the first-of-its-kind project should begin operations by May 31. On May 31, however, the utility announced that the facility “is not currently fully operational.” It also said it would delay a monthly project status report that was due on June 1 to the Mississippi Public Service Commission (MPSC). It plans to submit the report on June 5 instead, because “the company continues to assess the project’s schedule and cost.”

On June 5, the company is also likely to make a rate filing for the project. It is expected to request an accounting order to defer all costs incurred after the project is operational, that are not subject to a cost cap, and are not already included in rates.

Mississippi law allows Mississippi Power to file both a traditional rate case and an alternative multi-year rate mitigation plan.…