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Senate OKs Plan to Revive Nuclear Power



Index:



Senate OKs Plan to Revive Nuclear Power

Greenspan: US should explore nuclear, coal options

INTERVIEW-Cameco CEO predicts comeback for nuclear power

Irish take Britain to The Hague over nuclear plant

Mayors give Niigata governor approval to resume nuke reactor

Water leaks at Joyo reactor, no impact on environment

RG&E says exploring sale of Ginna nuclear reactor

===============================



Senate OKs Plan to Revive Nuclear Power



WASHINGTON (AP) - U.S. taxpayers may underwrite a new generation of 

nuclear power plants now that the Senate has endorsed the idea as 

part of a broad energy bill.



Under the measure, the government would provide loan guarantees for 

at least a half dozen advanced design commercial nuclear power plants 

expected to cost about $3 billion each. The government would 

guarantee half the cost.



An attempt to strip the loan guarantees from the Senate bill fell 

short Tuesday, 50-48. Critics called the government help a giveaway 

to a mature industry that should be left to succeed or fail on its 

own.



The guarantees are part of a broader package of pro-nuclear measures 

in the bill, which may be approved within weeks, including a plan for 

the government to build a $1.1 billion reactor to make hydrogen and 

$865 million for research into reducing nuclear waste.



The measure marks the most ambitious attempt to energize the nuclear 

industry in decades and goes much further to help nuclear power than 

House legislation passed in April.



Sen. Pete Domenici, R-N.M., architect of a package of pro-nuclear 

provisions, said the government help is needed sustain the role of 

nuclear power in the country's energy picture.



No utility has tried to build a new power reactor since the 1979 

nuclear accident at Three Mile Island. Several companies have filed 

papers with the Nuclear Regulatory Commission declaring an interest 

in building a new-design reactor in the near future, probably at 

locations with an existing a nuclear power plant.



Industry representatives have argued that the government safety net 

is needed at least for the first group of reactors now that the 

electric power industry is in transition from highly regulated to 

competitive markets.



``The time has come to quit playing around with energy and say, 

wherever we can, we are going to produce more energy,'' argued 

Domenici. Nuclear power has long been neglected, he said, and that 

has been ``a giant mistake.''



He said that nuclear energy is ``clean, affordable and reliable ... 

and offers a potential and promise for this country and the rest of 

the world that I believe we have never really tapped.'' The new 

reactors will be smaller, safer and more efficient than plants built 

in the past, he said.



The legislation calls for supporting enough new reactors to produce 

8,400 megawatts of power. That would be enough to build seven 

reactors similar in size to many of the large commercial power 

reactors now in operation, but could also be used to build more 

smaller reactors.



Sen. Ron Wyden, D-Ore., who led the opposition to the loan 

guarantees, said it's ``not a question about whether someone is pro-

nuclear or anti-nuclear'' but whether ``to put at risk the taxpayers 

of this country'' if the reactor projects flop.



Sen. John Sununu, R-N.H., a co-sponsor with Wyden of the amendment to 

block the loan guarantees, said ``power plants should be developed on 

a level playing field without government subsidizing one industry 

over another.''



They cited a 50 percent estimate by the Congressional Budget Office 

that reactor projects might default, leaving taxpayers left with a 

$16 billion bill - half the total cost of the construction loans.



Industry representatives dispute the CBO analysis and contend private 

companies also would stand to lose billions of dollars and would not 

pursue the ventures unless they are shown to be viable.



In addition to the loan guarantees, the energy bill calls for:



A requirement that the government purchase power from the new-

generation reactors that would be built.



Construction of a $1.1 billion government-owned reactor in Idaho to 

produce hydrogen.



Authorization for an additional $865 million to speed research into 

ways to alter reactor waste chemically to reduce its volume and long-

term radioactivity.



Increases in other nuclear research spending by tens of millions of 

dollars over current levels.



Even without the loan guarantees, the measures amount to $3.7 billion 

in additional government support for the nuclear industry over five 

years, estimated the Taxpayers for Common Sense, a private advocacy 

group on tax issues. It called the bill ``one of the largest 

corporate welfare handouts in our nation's history.''



The bill is S.14.

-----------------------



Greenspan: US should explore nuclear, coal options



WASHINGTON (Reuters) - The United States should explore ways to 

expand nuclear power and coal energy, Federal Reserve Chairman Alan 

Greenspan told a congressional committee Tuesday.



But no matter how much the nation diversifies its sources, it will 

never be free from politically sensitive foreign suppliers like the 

Middle East, Greenspan told the House Energy and Commerce Committee.



"I think we are committed irrevocably to a global economy," Greenspan 

said at a House Energy and Commerce Committee hearing to address 

looming U.S. natural gas shortages. "I don't think we have a choice 

but to deal in a global economy."



The central bank chief said the United States should expand its 

ability to import liquefied natural gas from countries like Algeria, 

Nigeria and Russia to create a "safety valve" that can stabilize 

natural gas prices, which are double year-ago levels.



Congress should also look at ways to increase energy supplies from 

nuclear and coal, Greenspan said. The two sources together account 

for about 70 percent of U.S. supply.



"I think a major endeavor to examine this whole program is where we 

ought to be," Greenspan said, referring to nuclear and coal 

industries. "At least look at it rather than dismissing it out of 

hand," he told lawmakers.



The United States has 103 operating nuclear power plants that produce 

about 20 percent of domestic energy supply. Some utilities have said 

they are considering seeking permits to build new plants, but 

optimism has been tempered by lingering national security and plant 

safety concerns.



No new U.S. nuclear plants have been built since the 1979 accident at 

Pennsylvania's Three Mile Island plant, which had a partial meltdown 

of its reactor core.



Also Tuesday, the U.S. Senate rejected a Democratic attempt to strip 

from the energy bill some $10.5 billion in loan guarantees to 

encourage utilities to build new nuclear plants. The Senate is trying 

to finalize its version of a broad energy bill this week.



Few new U.S. coal plants have been built because of their high 

emissions of air pollution and fears that the United States will bow 

to pressure from Democrats and environmentalists to impose costly 

controls on carbon dioxide emissions.



Virginia Democratic Rep. Rick Boucher pointed out that the nation has 

enough coal supplies to last about 250 years.



"We have got to find some fuel alternatives and coal is the most 

obvious candidate," Boucher told Reuters in an interview.



New "clean coal" technology could be used to build new plants "with 

little environmental effect," Boucher said.

-----------------------



INTERVIEW-Cameco CEO predicts comeback for nuclear power



TORONTO (Reuters) - Nuclear energy's time may have come -- again.

Touted in the 1950s and 1960s as the answer to the world's energy 

problems, then vilified for the Chernobyl (1986) and Three Mile 

Island (1979) disasters, nuclear energy is poised for a comeback, 

according to Gerald Grandey, chief executive of Cameco Corp., the 

world's biggest uranium producer.



Helping fuel that interest is an ambitious plan by President George 

W. Bush to reduce the dependence of the United States, the world's 

biggest energy consumer, on imported oil.



That combines with growing public concern over pollution from fossil-

fuel power plants -- especially coal-fired generators, Grandey told 

Reuters in a recent interview.



"We just have people listening now. The public's attitude is 

beginning to warm up," he says.



Grandey's passion is to tout the environmental benefits of nuclear 

power.



With growing public pressure for "greener" energy sources, that's 

where low-pollution nuclear plants "win hands down," he says, unlike 

coal-fired generators, which "use the atmosphere as a toilet."



Grandey's optimism wins support from Julian Steyn, president of the 

Washington, D.C.-based consulting company Energy Resources 

International.



"Demand for nuclear power in this century should be colossal," Steyn 

said. And Canada will be at the forefront of the boom because "it is 

the Saudi Arabia of uranium."



Steyn points out that the price of uranium climbed to $11 a pound in 

May from $7 in late 2000 and could rise to $15 before 2010, as supply 

concerns grow.



There are already forecasts of a shortfall as early as 2010 as 

stockpiles -- originally built up during the Cold War -- dwindle, 

reactors around the world step up output and mines in Canada, Russia, 

Australia and Africa exhaust their supplies.



"Even at existing consumption (rates), there is concern about uranium 

supply," Grandey says.



Of the more than 175 million pounds of uranium used annually, a third 

comes from established stockpiles and the rest from mines such as the 

McArthur River mine, in which Cameco has a 70 percent stake.



Located in the western Canadian province of Saskatchewan, McArthur 

River is the world's richest uranium deposit. Cameco's stake in 

McArthur and its 50.25 percent share of Cigar Lake  mine, also in 

Saskatchewan, together hold enough uranium to generate as much energy 

as nine billion barrels of oil.



Cameco's biggest customer is the United States, where more than 100 

reactors generate about 20 percent of the power. But prospects in 

Asia are growing, with 97 reactors operating, 23 under construction 

and 14 planned over the next decade.



Grandey, 56, an American, took the reins of Saskatoon, Saskatchewan-

based Cameco in January. The 15-year-old company, which produces 

about 17 percent of the world's uranium, is also a gold producer, 

with mines in Kyrgyzstan in Central Asia and a property in Mongolia. 

But plans call for it to spin off the gold operations by the end of 

the year to focus on nuclear power.



Grandey's goal is to transform Cameco into an energy company that 

invests in idled or unfinished reactors in Canada, the United States 

and elsewhere.



Cameco recently upped its stake in Bruce Power, northwest of Toronto, 

to 31.6 percent. It also sells uranium to Bruce, one of the biggest 

nuclear power plants in North America.



Grandey said investment opportunities in nuclear plants are plentiful 

because historically investors have shied away from such prospects 

because of regulatory hurdles.



"What better place than a field where not many people are playing?" 

he said.

-------------------



Irish take Britain to The Hague over nuclear plant



AMSTERDAM, Netherlands (Reuters) - Ireland mounted a fresh bid 

Tuesday to force Britain to shut down a controversial nuclear fuel 

manufacturing plant by taking its concerns about pollution to an 

international arbitration tribunal in The Hague.



Ireland accuses Britain of breaching a global maritime convention by 

building the Sellafield MOX plant on England's northwest coast in the 

1990s and says it is concerned about radioactive discharges into the 

Irish Sea.



Ireland has asked a panel of five international arbiters at the 

Permanent Court of Arbitration to decide if Britain breached the 

United Nation's Law of the Sea Convention when it decided to build 

the plant. The panel will hear both sides this month.



"The case was taken when the strongly held objections of the Irish 

government to the commissioning of this plant, conveyed many times 

and over many years to the United Kingdom, were disregarded," Irish 

Environment Minister Martin Cullen said.



Britain emphatically rejected the Irish claim that it had breached 

the convention and said the European Commission had ruled the plant 

did not pose an environmental threat to Ireland.



"The fact is that the Sellafield MOX plant does not generate any 

significant radioactive waste and has virtually no impact on 

radioactive discharges," British Energy Minister Brian Wilson said, 

adding that the Irish case had no basis in fact or law.



State-owned British Nuclear Fuels started operating the plant after 

seeing off a series of legal challenges from the Irish government and 

environmental groups. Britain says the plant meets the highest 

international safety standards.



The latest Irish legal move is seen as part of a long-term strategy 

to put pressure on London to close the plant, which mixes plutonium 

with uranium oxides to produce MOX (mixed oxide) for use in nuclear 

reactors.



Last year Dublin asked the Permanent Court of Arbitration for access 

to information about the plant's viability that Britain says is 

commercially sensitive. Britain is obliged under international law to 

ensure the plant is commercially viable.



A ruling in that case is expected later this year.

-----------------------



Mayors give Niigata governor approval to resume nuke reactor



NIIGATA, Japan, June 11 (Kyodo) - The mayors of two Niigata 

Prefecture municipalities hosting a nuclear power plant conveyed 

their approval for resuming operations of a reactor there to Gov. 

Ikuo Hirayama on Wednesday.



Kashiwazaki Mayor Masazumi Saikawa and Kariwa Mayor Hiroo Shinada 

visited the prefectural government office and communicated their 

decisions in the afternoon.



Hirayama is likely to decide whether the prefecture will give the 

green light to resuming the operations of the No. 7 reactor of Tokyo 

Electric Power Co.'s (TEPCO) Kashiwazaki-Kariwa nuclear plant 

following discussions at a prefectural assembly committee meeting 

slated for Monday, sources close to the matter said.



Yoshihiko Sasaki, director general of the Ministry of Economy, Trade 

and Industry's (METI) Nuclear and Industrial Safety Agency, and TEPCO 

president Tsunehisa Katsumata are expected to attend the meeting as 

unsworn witnesses, according to the sources.



If the prefectural government approves, the No. 7 reactor will be the 

second of TEPCO's 17 reactors to be restarted. TEPCO's No. 6 reactor 

in the Niigata plant resumed operations in May.



The No. 7 reactor is an advanced boiled water reactor, the same type 

as the No. 6 reactor.



TEPCO has completed preparations to restart the No. 7 reactor on 

Monday. METI recently said the reactor is safe.



Following revelations in August 2002 that TEPCO falsified safety 

reports, the power company shut down all 17 of its nuclear reactors --

 seven in Niigata Prefecture and 10 in Fukushima Prefecture -- for 

safety checks in an effort to win the public's trust.

------------------



Water leaks at Joyo reactor, no impact on environment



MITO, Japan, June 10 (Kyodo) - Water leaked Tuesday afternoon at the 

spent nuclear fuel storage pool of the Joyo experimental fast breeder 

reactor (FBR) in the town of Oarai, Ibaraki Prefecture, but there was 

no impact on the environment, the Japan Nuclear Cycle Development 

Institute said.



Some 25 to 75 milliliters of water per minute was leaking as of 8 

p.m. but the total amounts to less than 0.1 cubic meter and the 

radiation level is below measurable limits, according to the 

institute.



The institute found the leakage at around 7:10 p.m. after a water 

leakage alarm was set off at around 5:50 p.m.



The facility has been suspended since June 2000 for checks and 

improvements to make the 100,000-kilowatt reactor into a 140,000-

kilowatt one. The institute plans to resume operations in October.



It was built in 1977 as Japan's first fast breeder reactor as part of 

the government's policy to recycle spent nuclear fuel to maximize 

energy production.



Based on the results of research and development carried out at Joyo, 

the fast breeder reactor Monju was built in Tsuruga, Fukui 

Prefecture, and first taken critical in April 1994.



Monju, however, has been shut since a sodium leak there sparked a 

fire in December 1995.

--------------------



RG&E says exploring sale of Ginna nuclear reactor



NEW YORK, June 10 (Reuters) - Rochester Gas & Electric Corp., a unit 

of Energy East Corp. <EAS.N>, said it is looking into selling its 

Ginna nuclear reactor as well as other power generation assets.



RG&E said it has begun the process as part of a plan to implement New 

York State's deregulation program.



Other New York State utilities, including Consolidated Edison Inc. 

<ED.N>, have sold off all or most of their generation assets as part 

of a plan to lock in long-term rates for customers.



The 470 megawatt Ginna nuclear reactor is located in Wayne County, 

New York, and has been in service since 1970. Its current operating 

license expires in 2009, though RG&E last year filed an application 

to extend the license by 20 years.



Energy East, a utility holding company based in Albany, New York, 

acquired RG&E parent RGS Energy Group in June of last year.





-------------------------------------------------

Sandy Perle

Director, Technical

ICN Worldwide Dosimetry Service

ICN Plaza, 3300 Hyland Avenue

Costa Mesa, CA 92626



Tel:(714) 545-0100 / (800) 548-5100  Extension 2306

Fax:(714) 668-3149



E-Mail: sandyfl@earthlink.net

E-Mail: sperle@icnpharm.com



Personal Website: http://sandy-travels.com/

ICN Worldwide Dosimetry Website: http://www.dosimetry.com/



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