RE: power deregulation may shut nuke units

[BRZGV@CCMAIL.CECO.COM (Glen Vickers)]

A few observations...

How many areas of the country actually have a power surplus and can afford to
shut down units of any type.  I do believe that there are several steam
generator replacement projects for PWRs planned over the next couple of years.
An investment of say 400-600 million dollars per reactor over the next few years
means that utilities are quite serious about trying to make the big behemoths
make the power they were designed to make.

I would more likely think that under-performing units would be sold to those who
could make them run more efficiently instead of shutting them down.  A cheap
source of revenue generation could be to make a plant that is under performing
come up to industry standards, rather than trying to site a new source.  Look at
Brunswick a couple of years ago, 70's BWR down on their luck, then they come
back and set, I believe, the industry record for continuous run for a BWR.  I
won't pretend to know all of the factors involved in that success story, but the
fact is that they generated a measurable success.

A unit with a high capacity factor would actually be a more safe unit for the
public.  More of your primary and backup equipment would have to be in service a
greater percentage of the time to achieve such good performance.  This same
equipment would be needed for safe shut downs and accident scenarios as well.

Every region of the country is growing, but where is the capacity to support the
growth?  It sure as isn't in the wind mills and renewable sources that the
president is talking about.  "Offend no one" politics is absence of leadership
and the clock is ticking.

Anyone hear about the vultures at Enron recently squeeling about trying to
recover costs?  These hackers sought to come in, cut everyone's throats, and
take the money and run.  Let the vultures be damned and pray for those who work
hard to make their plants run safely and efficiently.


Sincerely,
Glen

-----Original Message-----
From:     "Sandy Perle" <sandyfl@earthlink.net> at INTERNET
Sent:     Friday, September 04, 1998 12:56 PM
To:     Multiple recipients of list <radsafe@romulus.ehs.uiuc.edu> at INTERNET
Subject:     power deregulation may shut nuke units

Wednesday September 2, 7:24 pm Eastern Time

WASHINGTON, Sept 2 (Reuters) - The U.S. Energy Information
Administration said Wednesday that deregulation of the nation's
electricity markets could lead to early retirement of some nuclear
power units, coal mine closures and increased use of natural gas
for power generation.

The EIA, which is the statistical arm of the U.S. Department of
Energy, released its findings in a new report that suggested
widespread changes were in store for fuel suppliers as a result of
plans to restructure power markets.

``Restructuring will change the financial risks faced by the
industries that supply the fuels used to generate electricity and
place
new demands on their supply and transportation systems,'' the EIA
said.

Major impacts were predicted for the coal industry, which currently
supplies 56 percent of utility power generation. The EIA
said market restructuring will result in renewed pressure for cost-
cutting and consolidation, squeezing small firms out of business
and enlarging already sizable firms.

``Power generators will attempt to pass on market risks to coal
producers and carriers (primarily railroads) wherever they
can,'' said the EIA.

The nuclear power sector may be forced to shut some units before
they had originally planned since competitive electricity
prices may be too low to cover operating costs.

Uncertainty over how individual plants would be able to account for
its capital costs, or stranded costs, also played into how
nuclear operators would be able to reduce expenses.

The EIA report said natural gas would gain as the ``fuel of choice''
as deregulation accelerates. ``Deregulation of electricity
markets could lead to greater integration of the electricity and
natural gas industries and the emergence of competitive energy
markets,'' the EIA said.

The higher demand for natural gas for electricity generation was
forecast to increase gas prices at a faster pace than would
have been noted without competition, and at the sametime result in
slightly lower coal prices.

Crude oil-derived fuels were not expected to witness much change
in the face of restructuring since only 2 percent of the
nation's petroleum consumption goes for electric power uses, the
EIA said.

The report saw no stimulus for renewable energy technologies
unless required by government policies.

Federal deregulation legislation was expected to be acted on next
year when Congress reconvenes, after both the House and
Senate ran out of time to fashion a comprehensive plan agreeable
to both Republicans and Democrats this year.

States have taken up deregulation on their own, with some like
California and Illinois already restructuring their industries, and
others partially moving to free wholesale markets to competition.
Two states, Florida and South Dakota have taken no
significant action on the issue, EIA said.

California in late March became the first state to open its retail
electricity market to competition, and a number of retail access
pilot programs were underway in other states.

------------------
Sandy Perle
Technical Director
ICN Dosimetry Division
ICN Plaza
3300 Hyland Avenue
Costa Mesa, CA 92626
Office: (800) 548-5100 x2306
Fax:    (714) 668-3149

sandyfl@earthlink.net
sperle@icnpharm.com

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

Personal Website:
http://www.geocities.com/CapeCanaveral/1205

"The object of opening the mind, as of opening
the mouth, is to close it again on something solid"
              - G. K. Chesterton -

The opinions expressed are solely, absolutely, positively, definitely those of
the author, and NOT my employer
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