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Entergy Gives Palisades Nuclear Plant Five More Years to Run

September 28, 2017

Entergy Corp. will keep the Palisades nuclear power plant in Covert, Michigan, open until the spring of 2022, owing to a shortfall in recovery granted to Consumers Energy by state regulators.

In a bid to actively exit the merchant nuclear power business, investor-owned Entergy had decided to shutter the 798-MW plant by October 1, 2018. “Market conditions have changed substantially, and more economic alternatives are now available to provide reliable power to the region,” it said when it announced its decision about a year ago.

The decision came as a surprise because Entergy has a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all the power generated at Palisades through April 2022. Entergy reasoned the plant’s closure could save Consumers’ customers as much as $ 172 million over four years, even after Consumers paid Entergy $ 172 million to terminate the contract.

On September 22, however, the Michigan Public Service Commission granted Consumers a recovery of only $ 136.6 million of the $ 172 million it requested for the buyout of the power purchase agreement. …

SCANA, Santee Cooper Buy More Time for V.C. Summer Decision

June 27, 2017

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SCANA Corp. subsidiary South Carolina Electric & Gas Co. (SCG&E) and Santee Cooper—owners of the two-unit expansion of the V.C. Summer nuclear plant—have extended an interim assessment agreement with Westinghouse to allow the project’s owners to “continue to make progress on the site.”

The companies on June 26 extended the agreement to August 10, but it is subject to bankruptcy court approval.

“The agreement extension allows the co-owners additional time to maintain all of their options by continuing construction on the project, while examining all of the relevant information for a thorough and careful assessment to determine the most prudent path forward,” the project owners said.

“The goal is to reach a decision in the third quarter.”

A Hard Decision to Make

SCE&G and Santee Cooper have worked with Westinghouse to reach agreement on the project even before the Toshiba company filed for bankruptcy protection in late March. Westinghouse cited liquidity crisis stemming from losses at the V.C. Summer and Vogtle AP1000 projects for its financial collapse.…

Vogtle, V.C. Summer Project Owners Buy More Time to Mull Fate of Nuclear Units

May 1, 2017

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The owners of the Vogtle and V.C. Summer nuclear expansions separately secured a few more weeks to allow work to continue onsite at each project while they decide how to proceed with the half-built AP1000 reactors after Westinghouse’s financial debacle.

In Georgia, owners of the project to expand Plant Vogtle extended an interim assessment agreement with Westinghouse until May 12. But Georgia Power’s parent company Southern Co. also revealed it is negotiating a new service agreement that could engage Westinghouse to provide design, engineering, and procurement services in the event Southern Nuclear Operating Co.—Southern Co.’s nuclear unit operations arm—takes over management of construction at Units 3 and 4.

And in South Carolina, owners of the project to expand V.C. Summer extended a similar agreement through June 26. The project owners detailed their concerns and options in a recent ex parte briefing at the South Carolina Public Service Commission (PSC)

Vogtle Agreement Extended Until May 12

Georgia Power and Vogtle’s other owners on April 28 extended an interim assessment agreement with Westinghouse before it was set to expire, giving them until May 12 to assess the project.…

AES Closing Two More Ohio Coal Plants

March 22, 2017

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AES subsidiary Dayton Power & Light (DP&L) confirmed on March 20 that it will close two of its coal-fired plants by 2018 because they have become uneconomic.

The Ohio utility announced its intent to close the two plants in January as part of a settlement over its future reliability planning. The plan had been contested by a variety of parties and environmental groups. DP&L agreed to close the plants and shift its power mix toward more renewable energy. Monday’s announcement makes the move official.

AES purchased the two plants, J.M. Stuart Station and Killen Station, from Duke’s merchant generation arm in 2014. Killen is a single-unit, 618-MW plant in Wrightsville that began operations in 1982. Stuart, a four-unit, 2,318-MW plant in Aberdeen, first came online in 1969. DP&L owns 35% of Stuart and 67% of Killen.

According to local media, the closure may not quite be a done deal. Coal mining firm Murray Energy, which supplies coal to the plants and stands to lose a substantial amount of business if they shut down, is contesting the settlement with the Ohio Public Utilities Commission.…

Six Years After Fukushima, Only Three Reactors Operating in Japan, More Poised to Restart

March 10, 2017

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Six years after the Fukushima disaster prompted an electricity crisis in Japan and sent tremors throughout the world’s nuclear power sector, Japan is determined to continue its reliance on nuclear for nearly a fifth of its power needs in the long term.

Nuclear will make up 20% to 22% of Japan’s power mix by 2030, under a long-term plan issued in 2015, Hirohide Hirai, the director general of Japan’s Ministry of Economy, Trade, and Industry (METI), told attendees at CERAweek by IHS Markit, which is taking place in Houston this week.

On March 11, 2011, nearly a day after the 3-minute, 9.0-magnitude Great Tohoku Earthquake struck northeastern Japan—and unleashed a tsunami that killed 20,000 people—the world learned that Tokyo Electric Power Co.’s (TEPCO’s) Fukushima Daiichi and Daini nuclear plants were in peril after rising waters inundated and disabled offsite power supplies.

All of Japan’s nuclear power plants were shut down for safety checks after the disaster. Six years later, only three of 45 operable reactors have come online: Kyushu Electric’s Sendai 1 and 2 (restarted in 2015), and Shikoku Electric Power Co.’s…

More Delays at Kemper as $250 Million Deadline Looms

November 8, 2016

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Southern Co. has once again moved back the in-service date for the Kemper County integrated gasification combined cycle (IGCC) plant under construction in Mississippi, this time to December 31, the company said in its quarterly report released on November 4.

Though the plant has experienced ongoing construction delays for a variety of reasons, the most recent date carries special significance. According to the report, Southern subsidiary Mississippi Power will have to repay $ 250 million in tax benefits should it miss the December 31 date.

The deadline is a result of provisions in the “tax extenders” act passed by Congress in 2015, which allowed additional depreciation for certain projects. Southern said it expects to receive about $ 370 million in total tax benefits for Kemper under this provision, about $ 250 million of which has already been received through September 30 as a result of quarterly income tax refunds. But if Kemper does not enter service before the end of the year, Southern will have to repay those benefits.…