U.S. | EnergyNorthwest.com

U.S. Nuclear: From Hope to Despair

March 30, 2017

A decade ago, the annual Platts nuclear energy conference in Washington was brimming with optimism over a coming “nuclear renaissance,” as licensing requests poured into the Nuclear Regulatory Commission and companies announced ambitious plans for new nuclear construction. Ten years later, the not-so-under-the-surface theme of the conference was nuclear survival.

“The question is survival,” former Entergy nuclear executive Bill Mohl told attendees at the annual Platts nuclear energy conference in Washington, D.C., in early February. Mohl, who led Entergy’s merchant power business and retired February 28, went on to explain that Entergy’s long-term strategy of buying up single-unit nuclear plants at bargain-basement prices and bidding them into the regional transmission operator (RTO) and independent system operator (ISO) competitive wholesale markets was a miserable failure.

It seemed like a really good idea at the outset, but a combination of factors undercut the strategy, and Entergy is now exiting merchant nuclear power in as big a way as it entered. Vermont Yankee is shuttered.…

17 U.S. Nuclear Units Have Components Forged at Site Under Investigation

January 12, 2017

| No Comments

| Industry News

Although AREVA recently disclosed that 17 U.S. nuclear power plant units have installed components that were forged at the Le Creusot facility in France—a forge that has been under scrutiny due to questionable quality assurance documentation and carbon segregation irregularities in some parts manufactured at the site—the Nuclear Regulatory Commission (NRC) does not consider the situation an immediate safety concern.

“We are confident at this time that there are no safety concerns for U.S. nuclear power plants raised by the investigations in France,” David McIntyre, public affairs officer for the NRC, wrote in a blog post about the revelation.

“Our confidence is based on the U.S. material qualification process, preliminary structural evaluations of reactor components under scrutiny in France, U.S. material aging-management programs, our participation in a multinational inspection of Creusot Forge, and information supplied by AREVA about the documentation anomalies. Also, the components supplied to U.S. plants have performed well and inspections during their operating life have revealed no safety issues,” he continued.…

U.S. LNG Exports Surge in 2016—But Not Where They Were Expected

January 6, 2017

| No Comments

| Industry News

The U.S. took a big step toward becoming a major exporter of liquefied natural gas (LNG) in 2016 as Cheniere Energy’s Sabine Pass export terminal in Louisiana came online early last year and upgrades to the Panama Canal that opened in June made shipments to the Pacific region considerably easier. Data from the Department of Energy (DOE) through December 2016 show the U.S. exported 109 billion cubic feet (Bcf) of LNG through December 16, an average of about 0.3 Bcf/d for the year as a whole.

But the predominant destinations were not what most experts had predicted. Despite signs that U.S. LNG would seek out high-priced markets in east Asia and lower-priced-but-still-attractive markets in Europe, the majority of exports went somewhere else entirely: Latin America.

DOE data show that only two shipments went to Europe (one to Spain and the other to Portugal) while only a single one went to China, for a total of just 9.7 Bcf. Four shipments went to India, totaling 13.8 Bcf.…

U.S. Electric Markets in Transition

January 2, 2017

| No Comments

| Industry News

The U.S. market for electricity is trifurcated. More than half the country is served by competitive generators bidding against each other in wholesale markets. Almost half is served by conventional state-regulated, vertically integrated utilities controlling generation and transmission. The rest, a much smaller portion, consists of government-owned and customer-owned utilities, some of which are generators and most of which serve retail customers. All categories are in transition.

In October 2016, the Public Utilities Commission of Ohio (PUCO) offered Akron-based FirstEnergy a five-year, $ 600 million subsidy to be paid by the utility’s customers. The move was designed to compensate for the investor-owned utility’s (IOU’s) large, baseload coal and nuclear plants’ inability to compete in the PJM competitive wholesale market against low-cost natural gas.

Consumer groups slammed the PUCO order as “corporate welfare.” Tony Addison of AARP said the PUCO decision means that “Ohioans should subsidize the failing business model of FirstEnergy.” This, Addison said, “creates a terrible precedent by PUCO and others to bailout companies threatening to leave the state, on the backs of the people that work hard and pay their bills every month.”…

U.S. Fish & Wildlife Service Finalizes Rule on Wind Turbine Eagle Deaths

December 14, 2016

| No Comments

| Industry News

The U.S. Fish and Wildlife Service (FWS) on December 14 finalized the latest version of its rule governing permitted levels of eagle deaths at wind turbine farms.

The rule, first issued in 2009, governs the FWS’s administration of the Bald and Golden Eagle Protection Act, which makes it a criminal offense to kill or injure a bald or golden eagle. However, the law allows for certain “incidental take”—unintentional deaths due to otherwise lawful activities—leaving it to the FWS to decide what activities qualify and how they are to be monitored.

Contentious Issue

The deaths of eagles and other birds at wind turbine farms has become a highly charged issue in recent years, one that cuts across many of the usual political battle lines. Some environmental and wildlife groups have lobbied for stricter controls while others have argued the impact of replacing fossil fuels with wind represents a net gain for bird populations. Many of the companies that own and operate wind farms in the U.S.…

Natural Gas and Wind Are Cheapest Sources of Power in Majority of U.S.

December 12, 2016

| No Comments

| Industry News

In a finding that is likely to boost controversy over the future of U.S. energy policy, a comprehensive study of the full levelized cost of energy (LCOE) from various sources of electricity conducted by the University of Texas (UT) at Austin’s Energy Institute found that wind turbines and natural gas combined cycle power plants (CCPPs) provide the least expensive options for new generation across a large majority of U.S. counties.

The study, “New U.S. Power Costs: By County, with Environmental Externalities,” is part of an ongoing initiative at UT that attempts to take a “holistic approach” to calculating both direct and indirect costs of generating electricity.

The Institute has placed the results online in the form of an interactive tool that allows comparison of the LCOE for various options and adjustment of fuel costs. (The tool also makes some assumptions about the suitability of certain generation in various locations; for example, there are areas that would be unsuitable for fossil plants for environmental reasons.)…