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DOE Offers Another $3.7 Billion in Loan Guarantees for Vogtle Project

September 30, 2017

Energy Secretary Rick Perry said in a statement that the “future of nuclear energy in the United States is bright” as his agency on September 29 announced another $ 3.7 billion in loan guarantees for continued construction of two new nuclear reactors at Plant Vogtle in Georgia.

The Department of Energy (DOE) has guaranteed another $ 1.67 billion to Georgia Power, $ 1.6 billion to Oglethorpe Power, and $ 415 million to three subsidiaries of the Municipal Electric Authority of Georgia. The money is in addition to $ 8.3 billion already guaranteed by the DOE to support construction of the two AP1000 reactors at the plant near Waynesboro, Georgia. The long-delayed project to add two new units to the two existing reactors at Vogtle has been plagued by construction problems and cost overruns; the current timeline to complete construction is now near the end of 2022. Analysts say the cost for the project will go well above $ 20 billion.…

ABB Acquiring GE Electrification Unit in $2.6 Billion Deal

September 26, 2017

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Swiss engineering firm ABB has moved to expand its electrification business, especially in North America, with a $ 2.6 billion deal to acquire GE Industrial Solutions (GE IS). The move announced September 25 is the latest by GE to refocus its operations under new chief executive John L. Flannery, who replaced long-time GE CEO Jeffrey Immelt in August.

ABB, based in Zurich, Switzerland, in a news release said it wanted to expand its “access to North America” and take advantage of GE’s “significant installed base globally.” ABB said it expects to improve the performance of the GE IS division, which it said had been a “non-core business for GE.” ABB noted that GE IS has a “comprehensive electrification portfolio,” which is complementary to ABB’s existing business, and the unit will be integrated into ABB’s Electrification Products (EP) division.

For its part, GE will have access to “ABB’s leading portfolio through [a] long-term supply partnership” for ABB products, that GE currently sources, and ABB has agreed to continue to use the GE brand.…

Toshiba Will Pay $2.2 Billion to Exit Summer Nuclear Project

July 29, 2017

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SCANA Corp. and state-owned utility Santee Cooper on July 27 said Toshiba has agreed to pay nearly $ 2.2 billion to cap its liabilities from the unfinished V.C. Summer nuclear project in South Carolina. Toshiba subsidiary Westinghouse, which was building two nuclear units at the Summer site along with the troubled Vogtle nuclear project in Georgia, filed for bankruptcy in March.

Toshiba reached a similar $ 3.7 billion agreement with Southern Co. in June as it seeks to limit its liabilities from the Vogtle project. Both AP1000 nuclear projects are years behind schedule and billions of dollars over budget.

Decision on Summer’s Future Expected Soon

SCANA, represented by principal subsidiary South Carolina Electric & Gas Co. (SCE&G), and Santee Cooper in a statement on July 27 said they expect the cost to complete the Summer plant will “materially exceed” both Westinghouse’s estimates for completion and the payments from Toshiba, outlined as $ 2.168 billion over a five-year period. SCANA and Santee Cooper said they expect to decide soon whether they will continue with Summer’s construction, modify the project, or abandon it.…

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

June 17, 2017

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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.…