Nuclear Power Industry News

Vendor Information Meetings Arranged For Plant Vogtle 3 And 4

steveheiser — Fri, 06 Nov 2009 13:50:00 GMT

Southern Nuclear, a subsidiary of Southern Company, operates the Edwin I. Hatch Nuclear Plant near Baxley, Ga., the Joseph M. Farley Nuclear Plant near Dothan, Ala. and the Alvin W. Vogtle Electric Generating Plant near Waynesboro, Ga.

- By Linton Levy -

Georgia Power, Southern Nuclear and The Shaw Group will host several supplier information meetings to familiarize local vendors with the procurement process for the new construction at Plant Vogtle.

Meetings are being held in the following locations: Waynesboro, Augusta, Savannah and Atlanta.

-- The Waynesboro meeting will be held Dec. 1 at 7:00 p.m. at Burke
County High School located at 1057 Burke Veterans Parkway in
Waynesboro.

-- The Augusta meeting will be held Dec. 3 at 7:00 p.m. at the Augusta
Marriott Hotel and Suites located at Two 10th Street in Augusta.

At these sessions potential suppliers will learn more about the construction project and find out about available opportunities to provide products, materials and services to support construction.

Participants must register in advance at http://www.georgiapower.com/supplier/ . Space is limited on a first-come, first-serve basis.

Similar sessions will also be held in Savannah on Jan. 19, 2010, at the Savannah Marriott Riverfront Hotel and in Atlanta at the Georgia Power Corporate Headquarters on Jan. 27 and 28. Specific information on those meetings can also be found at the Web site.

Georgia Power is the largest subsidiary of Southern Company, one of the nation's largest generators of electricity. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia's 159 counties.

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemicals, environmental, infrastructure and emergency response markets. Shaw employs approximately 28,000 people at its offices around the world. Shaw is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms.

Mexico's 10.2TWh Of Nuclear Demand In 2008 Is Projected To Reach 13.0TWh By 2013

steveheiser — Fri, 06 Nov 2009 13:40:00 GMT

New report provides detailed analysis of the Energy and Utilities market

- By April Murelio -

The newly published Mexico Power Report forecasts that the country will account for 22.38% of Latin America regional power generation by 2013, with a developing power surplus available for export to the US. The Latin America power generation estimate for 2008 is 1,130 terawatt hours (TWh), representing an increase of 2.5% over the previous year. We are forecasting growth in regional generation to 1,320TWh by 2013, representing a rise of 16.9%.

We estimate Latin American thermal power generation in 2008 at 453TWh, accounting for 40.0% of total electricity supplied in the region. Our 2013 forecast is 523TWh, implying 15.5% growth, trimming the thermal generation’s market share to 39.6%, despite environmental concerns that should promote renewables, hydro-electricity and nuclear power. Mexico’s 2008 thermal generation was around 209TWh, 46.04% of the regional total. By 2013 it is expected to account for 46.20% of thermal generation.

For Mexico, oil is the dominant fuel, accounting for 52.8% of 2008 primary energy demand (PED), followed by gas at 35.5%, coal at 5.3%, hydro-electric energy at 5.1% and nuclear energy with a 1.4% share of PED. Regional energy demand is forecast to reach 726mn tonnes of oil equivalent (toe) by 2013, representing 14.5% growth. Mexico’s market share in 2008 was 25.82%, easing to a forecast 24.73% by 2013. The country’s 10.2TWh of nuclear demand in 2008 is forecast to reach 13.0TWh by 2013, with its share of the Latin American nuclear market set to rise from 32.59% to 33.33%.

Mexico is still ranked fifth, ahead of Venezuela, in the Power Business Environment Ratings, reflecting considerable market size and reasonable growth prospects. The lack of privatisation progress, poorly developed competitive landscape and demanding regulatory environment conspire with country risk factors to depress the score and keep Mexico near the foot of the table for the foreseeable future.

BMI is now forecasting average annual Mexican real GDP growth of just 0.84% between 2009 and 2013, with a decline of 7.10% forecast for 2009. The population is expected to expand from 106.7mn to 110.8mn over the period, with GDP per capita forecast to increase by 24%. Electricity consumption per capita is now expected to decline during the period by 1.2%. The country’s power consumption is expected to increase from an estimated 203TWh in 2008 to 208TWh by the end of the forecast period, providing a rising net export capacity, assuming 2.6% annual growth in electricity generation.

Between 2008 and 2018, we forecast an increase in Mexican electricity generation of 41.3%, above average for Latin America. This equates to 22.8% in 2013-2018, up from 15.1% in 2008-2013. PED growth is set to grow from 9.7% in 2008-2013 to 15.9% in 2013-2018, or 27.2% for the entire forecast period. An increase of 31% in hydro-power use in 2008-2018 is a key element of generation growth.

Thermal power generation is forecast to rise by 42% between 2008 and 2018, with nuclear demand rising by 57%. More details of the longer-term power forecasts can be found later in this report.

IAEA: Social Networking for Nuclear Decommissioning

steveheiser — Fri, 06 Nov 2009 13:30:00 GMT

Described as a network of networks, the IDN brings together experts in the decommissioning of nuclear facilities so they can share ideas and learn from each other

- By Christopher Smith -

Faced with the challenges of delivering the right training to the right people, the IAEA´s International Decommissioning Network (IDN) has begun using popular social networking tools to connect with more than 400 nuclear professionals in 60 countries all year round.

Described as a network of networks, the IDN brings together experts in the decommissioning of nuclear facilities so they can share ideas and learn from each other.

It has proven difficult for some young nuclear professionals who are actually involved in day-to-day decommissioning to attend workshops, seminars and global site visits. So the IDN´s coordinators at the IAEA are using non-traditional approaches to engage them.

To jump-start global discussions between experts and young professionals, the IDN now posts instructional videos online; videos which are available to more than 400 people working in this field.

There are also plans to begin uploading more of these videos using an approach similar to that used by YouTube, thereby sharing critical, cutting-edge knowledge with professionals working in their own countries.

Also, the IDN is experimenting with approaches, such as LinkedIn, to provide a hub for its web networking activities.

"We realise that popular online networking tools are the best way of engaging hundreds of people in the nuclear profession whom we couldn´t otherwise reach. The focus of our outreach is to bring together those with developed decommissioning programs and those who need to access them," says Paul Dinner from the IAEA´s Waste Technology Section.

The IDN´s Annual Forum for Regulators and Operators in the Field of Decommissioning is being held in Vienna this week from 2 – 6 November.

The IDN provides hands-on experience in nuclear installations that are currently being decommissioned.

A collaborative initiative between the IAEA Departments of Nuclear Energy, Nuclear Safety and Security, and Technical Cooperation, the IDN is open to all Members States engaged in, or actively planning, decommissioning.

IDN allows better inter-departmental cooperation within the IAEA, and better collaboration between the Agency, governments, and companies focused on decommissioning.

NRG Energy, Reports Record Q3 Results; Initiates 2010 Guidance

steveheiser — Fri, 06 Nov 2009 13:22:00 GMT

Adjusted EBITDA, excluding MtM impacts, was a record of $906 million for the third quarter of 2009 compared to $682 million in the third quarter of 2008

- By April Murelio -

NRG Energy, Inc. has reported net income for the three months ended September 30, 2009, of $278 million, or $1.02 per diluted common share, compared to $778 million, or $2.81 per diluted common share, for the third quarter last year. The current quarter benefited from Reliant Energy’s results which contributed $393 million in pre-tax income, while the third quarter results in 2008 benefited from $824 million of pre-tax net mark-to-market gains on asset-backed hedges. Non-recurring operating expenses for the third quarter of 2009 included $21 million for Exelon defense costs and $6 million of transaction and integration costs associated with the Company’s acquisition of Reliant Energy. Adjusted EBITDA, excluding MtM impacts, was a record of $906 million for the third quarter of 2009 compared to $682 million in the third quarter of 2008. The $224 million quarter-over-quarter increase was driven by Reliant Energy’s adjusted EBITDA contribution of $306 million partially offset by an $82 million decrease in the wholesale portfolio results.

Financial Highlights

$1,280 million cash flow from operations generated in the third quarter of 2009, an 18% increase over the third quarter of 2008
$906 million and $2,129 million adjusted EBITDA for the third quarter and year to date 2009, respectively – record results for each period
$3,936 million of liquidity as of September 30, 2009, including $2,276 million in cash

Capital Allocation

$250 million of common stock, or 8.9 million shares, repurchased during the third quarter
$250 million of additional common share repurchases planned for the fourth quarter of 2009
Merrill Lynch Credit Sleeve supporting Reliant Energy unwound ahead of schedule on October 5

Guidance

$2,575 million 2009 full year adjusted EBITDA guidance, an increase of $75 million, and $1,650 million cash flow from operations, an increase of $275 million, both from guidance last updated on July 30, 2009
$2,200 million 2010 adjusted EBITDA guidance with cash from operations targeted at $1,350 million

Net income for the first nine months of 2009 was $909 million, or $3.29 per diluted common share, compared to $954 million, or $3.41 per diluted common share, for the same period last year. Non-recurring operating expenses for the first nine months of 2009 included $31 million of Exelon defense costs and $41 million of transaction and integration costs associated with the Company’s acquisition of Reliant Energy on May 1, 2009. Adjusted EBITDA for the first nine months of 2009 was a record $2,129 million compared to $1,889 million over the same period in 2008. This $240 million increase was driven by Retail Energy’s contribution of $536 million offset by a $296 million decline in the performance of the wholesale portfolio, primarily in the Texas and South Central regions.

Cash flow from operations was $1,280 million for the nine months ended September 30, 2009, a $194 million increase from the same period in 2008. This increase was attributable to the financial performance from Reliant Energy. Cash flow also benefited from first quarter collateral returns partially offset by collateral posting obligations under the Merrill Lynch Credit Sleeve. In addition, pension contributions were $35 million lower mainly due to a prepayment in 2008 related to 2009 contributions.

Total generation declined 8% in the third quarter of 2009 compared to 2008, which included a 13% decline in baseload generation. Lower baseload generation attributable to market factors, particularly in the Northeast, had minimal financial impact on the quarter as the portfolio had been fully hedged. Maintenance and unplanned outages during the quarter, primarily in Texas, contributed to the lower generation and impacted the quarter’s results. This decrease also was partially offset by a 47% increase in gas fleet generation in Texas primarily due to the newly constructed Cedar Bayou Unit 4 plant.

“NRG’s record financial performance has been achieved in the most challenging commodity price and economic environment NRG has ever experienced. Our ability to operate and hedge our generation assets coupled with our financial strength and ability to respond quickly to market opportunities such as the Reliant acquisition sets us apart,” commented David Crane, NRG President and Chief Executive Officer. “As we look forward, while the commodity price environment remains challenging in 2010, the opportunities in our sector to enhance shareholder value for a Company in NRG’s strong position are immense through our various internal growth opportunities already underway. We are working hard to repeat the success of 2009 in 2010.”

MtM Impacts of Hedging Activities

The Company, in the normal course of business, enters into contracts to lock in forward prices for a significant portion of its expected power generation and to fulfill Reliant Energy’s supply requirements. Although these transactions are predominantly economic hedges of our generation portfolio and load requirements, a portion of these forward sales and purchases are not afforded hedge accounting treatment and the MtM change in value of these transactions is recorded to current period earnings. For the third quarter of 2009, we recorded a $16 million forward net MtM gain on our economic hedges, as reversals of previously unrecognized gains and positions acquired as part of the Reliant acquisition offset the net unrealized losses on open positions related to economic hedges. In the third quarter of 2008, there were $824 million net MtM gains on our economic hedges caused by a period of rapidly decreasing power and natural gas prices, including $479 million of unrealized gains on open positions related to economic hedges and $352 million of gains associated with ineffectiveness of cash flow hedges.

During the first nine months of 2009, the Company recognized $502 million of net MtM gains with $448 million associated with the reversal of positions acquired as part of the Reliant acquisition. The same period during 2008 experienced $112 million in net MtM gains, of which $171 million of gains on open positions related to economic hedges.

Reliant Energy: Reliant Energy’s adjusted EBITDA for the quarter totaled $306 million due to strong margins accompanied by high customer usage from warmer than normal weather, slightly offset by a decrease in customer count. Reliant announced and enacted price reductions effective June 1 and July 1, 2009, which cumulatively lowered prices by up to 20% for certain customers. Despite higher weather-related demand, power purchase costs remained low during the quarter, thereby enabling higher customer margins. Total revenues for the quarter, excluding contract amortization and unrealized gains and losses, were $1,876 million on 16 TWh sold to both Commercial and Industrial and Mass customers. Cost of energy, excluding contract amortization and unrealized gains and losses on derivative contracts for energy supply, totaled $1,433 million, resulting in a gross margin of $443 million. Other operating expenses incurred during the quarter totaled $136 million and included $37 million of expenses associated with the call center and billing, credit, and collections; $48 million of selling, general and administrative expense; $24 million of gross receipts tax; and $28 million of bad debt expense.

Texas: Texas adjusted EBITDA for the third quarter of 2009 decreased by $61 million to $404 million compared to the third quarter of 2008. During the quarter, power prices in the Houston Zone, where the majority of our assets are located, were less than half those in the same quarter of 2008. Although NRG’s hedging program insulated the region’s baseload fleet from these significant price movements, the margins realized on our gas assets in 2008 were not repeated in 2009 despite higher generation. The combined impact of lower power prices and fuel costs resulted in $63 million of lower quarter-over-quarter energy margins. Baseload generation declined compared to 2008 due to maintenance and unplanned outages. Generation from the gas fleet increased quarter-over-quarter with Cedar Bayou Unit 4, which came on line in late June of this year, contributing 454k MWh of generation in addition to strong operating performance from the remainder of the gas fleet. Operating costs increased quarter-over-quarter by $10 million, including a $4 million increase at STP largely due to a Unit 2 outage in September 2009 and higher O&M costs at our WA Parish and Limestone plants.

Northeast: The Northeast region’s adjusted EBITDA for the third quarter of 2009 was $168 million, a $27 million increase compared to the same quarter in 2008. Energy margins were $36 million higher in 2009 as the contributions realized from our hedging program and contract revenue more than offset lower market prices and reduced generation. Generation in the third quarter of 2009 was 30% lower than 2008 resulting in a $45 million energy margin decrease. This decrease was offset by $18 million in higher contract revenues due to lower cost to serve load obligations and a $63 million increase in realized margin per MWh due to portfolio hedging.

South Central: Third quarter 2009 adjusted EBITDA was $4 million, $43 million lower than the same period in 2008. The decline in adjusted EBITDA was largely driven by unrealized gains in 2008 related to forward physical power sales that were delivered in 2009. The region’s quarterly results were also impacted by higher operating expenses as additional plant maintenance was performed, including a 28 day outage on Big Cajun Unit 1 versus a 21 day outage on Unit 2 in the prior period.

Total liquidity, excluding counterparty collateral received, decreased $90 million to $3.9 billion during the third quarter driven by a $32 million decrease in cash and cash equivalents and a $65 million reduction in synthetic and revolver credit facilities. The decrease in cash and cash equivalents during the quarter was principally driven by $186 million in capital expenditures, $232 million in cash collateral sweeps to reduce Reliant Energy’s exposure with Merrill Lynch, and $250 million of common share repurchases. These cash outflows were partially offset by $558 million in cash flow from operations. The decrease in letters of credit and revolver credit facilities were primarily in support of commercial operations trade positions.

2009 Share Repurchase Plan

During the third quarter of 2009, the Company purchased 8,919,100 of its common shares in open market transactions at a volume weighted average cost of $28.01 per share, for a total of $250 million. Currently, the Company is authorized to repurchase up to $500 million of its common shares and intends to complete the remaining $250 million of repurchases during the fourth quarter of 2009. The Company has repurchased an aggregate of $2.2 billion of its common shares at a weighted average cost of $23.91 per share since embarking on common share repurchases in December 2004.

Credit Sleeve Unwound One Year Early

On October 5, 2009, the Company amended the Credit Sleeve and Reimbursement Agreement (CSRA) with Merrill Lynch that provided credit support to Reliant Energy’s operations. As a result of this amendment, the Reliant Energy retail entities became part of the corporate collateral package and its credit support needs are now provided by the Company’s corporate level liquidity. In connection with the credit sleeve unwind, NRG had a net cash collateral outflow of $374 million to various counterparties with the funds sourced from the June 5, 2009, bond offering that raised approximately $678 million in net proceeds. Simultaneously, Merrill Lynch terminated their liens on approximately $322 million of unrestricted cash held at Reliant Energy, and returned $250 million of posted cash collateral. The CSRA was originally scheduled to mature in October 2010.

Outlook for 2009

Full year 2009 Adjusted EBITDA guidance is estimated to be $2,575 million for the year, a $75 million increase from the guidance issued on July 30, 2009. This increase in guidance is attributable to a $225 million improvement in the Reliant Energy outlook driven by higher than expected summer demand and margins, partially offset by a $150 million decline in the wholesale portfolio as a result of a weak commodity pricing environment and higher operating costs.

In addition to the above, and in connection with the early unwind of the Merrill Lynch Credit Sleeve, certain economic hedges were terminated in the fourth quarter of 2009 prior to their normal maturity. This early settlement resulted in a realized $85 million mark-to-market loss to 2009 results. These charges are expected to be recorded in the fourth quarter 2009 results.

Outlook for 2010

NRG is initiating 2010 Adjusted EBITDA and Cash Flow from Operations guidance at $2,200 million and $1,350 million, respectively. The outlook for the wholesale operations is a result of lower hedged prices on the overall portfolio in 2010 compared to 2009 and increased coal transportation costs in 2010. Reliant Energy’s outlook for 2010 will be lower than 2009 results due to lower margins as a result of the two price reductions that occurred in the summer of 2009, increased supply costs as gas prices are expected to be higher in 2010 versus 2009, and normalized weather conditions.

Business And Environmental Groups Unite Supporting Climate Legislation

steveheiser — Fri, 06 Nov 2009 13:12:00 GMT

Exelon CEO and NRDC president say cap-and-trade bill essential to the economy, environment

- By Stephen Heiser -

Exelon Chairman and CEO John W. Rowe and Natural Resources Defense Council President Frances G. Beinecke today urged Midwest business leaders to support comprehensive climate legislation. In a panel discussion at the Economic Club of Chicago, Rowe and Beinecke said economy-wide cap-and-trade legislation to reduce greenhouse gas emissions is essential to our nation’s economy and the environment.

“It is rare to see business and environmental groups on the same side of an issue. Today’s panel illustrates the unprecedented breadth of support for action on climate change,” said Rowe. “But the opposition is committed and powerful, which means taking meaningful action on this very difficult challenge will require political courage and an ability to take the long view.”

In his remarks, Rowe pointed to the cap-and-trade market mechanism as the least expensive way to address the challenge posed by climate change. Citing the Environmental Protection Agency’s pending carbon regulations, Rowe said it’s not a question of whether or not to regulate carbon emissions, rather how to do it in the most effective and cost-efficient manner. He also reinforced the critical need for a comprehensive climate bill that will put the nation on a path to a low-carbon future, a sentiment echoed by Beinecke.

Beinecke also stressed the potential Midwest manufacturing boon that could result from climate legislation.

“The Midwest pumps out more carbon dioxide than all but four countries, making it a prime location for the new opportunities that will help solve our energy and climate problems,” said Beinecke. “We can shake the rust off the Rust Belt with the manufacturing of new technologies and products like solar panels and wind turbines. New wind turbines require 250 tons of steel and that is the sort of market signal that will reinvigorate steel towns like Gary and Granite City.”

Exelon and NRDC, both members of the U.S. Climate Action Partnership, are working together along with dozens of other companies, environmental organizations and labor groups to increase awareness and support of climate legislation.

Rowe is the industry’s longest-serving chief executive, with nearly 26 years as a utility CEO. Rowe was among the first CEOs in the industry to focus on climate change, first testifying before Congress on the potential effects of carbon emissions in 1992. He currently serves as co-chair of the bipartisan National Commission on Energy Policy, and previously chaired the Edison Electric Institute and the Nuclear Energy Institute. Under his leadership, the company launched Exelon 2020, an environmental and business strategy to reduce, offset or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020.

Under Beinecke's leadership, NRDC has launched a new strategic campaign that sharply focuses the organization's efforts on curbing global warming, moving America beyond oil, reviving the world's oceans, saving endangered wild places, stemming the tide of toxic chemicals and accelerating the greening of China. Her first book, "Clean Energy Common Sense: An American Call to Action on Global Climate Change," comes out next week, offering straight talk and definitive facts on the sometimes confusing issues surrounding global warming in the same mold as Thomas Paine’s classic that helped fire up the American revolution.

Exelon Corporation is one of the nation’s largest electric utilities with approximately $19 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 485,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

The Natural Resources Defense Council is a national, nonprofit organization of scientists, lawyers and environmental specialists dedicated to protecting public health and the environment. Founded in 1970, NRDC has 1.3 million members and online activists served from offices in New York, Washington, Chicago, Los Angeles, San Francisco and Beijing. www.nrdc.org

FPL Customers To Get Fuel Rebate In January; Lowest Bills In State Will Drop In 2010

steveheiser — Fri, 06 Nov 2009 13:10:00 GMT

Typical Residential Customer to Receive $44 Credit on First Bill of New Year

- By Christopher Smith -

Florida Power & Light Company customers will be getting a sizeable rebate on their first bills of 2010 with a one-time fuel charge credit approved by the Florida Public Service Commission (PSC).

FPL residential customers using 1,000 kilowatt-hours will receive a credit of $44.46 on their January electric bills. The fuel charge credit would normally have been spread out over the course of 12 months. FPL does not profit on the fuel it buys to generate electricity.

“Customers are seeing the benefit not only of lower fuel prices but also our investments in modern, more fuel-efficient power plants,” said FPL President and CEO Armando J. Olivera.

In addition to starting the year with lower bills, FPL noted that the 2010 bill would still be lower than the 2009 bill once the company’s pending base rate request is resolved.

The company has asked for an increase in the base rate, which will be more than offset by the increased efficiency of its power plants and by lower fuel costs. As a result, with approval of the base rate request, the typical 1,000 kilowatt-hour residential customer bill would be about $6 less per month, going from $110.72 currently to $104.76 under the company's proposal. New rates are currently expected to be in place by March 2010.

At the same time, the base rate increase would support the company’s ability to continue to invest in making its electrical infrastructure stronger, smarter, cleaner and even more fuel efficient.

Since 2002, FPL’s investments in making its power plants more efficient have saved customers an estimated $3 billion in fuel charges. If such investments are continued, the company estimates that annual fuel charge savings would reach $1 billion a year starting in 2014.

FPL’s typical residential customer bill is already the lowest of all of the 54 electric utilities in Florida and is below the national average.

Florida Power & Light Company

Florida Power & Light Company (FPL) is the largest electric utility in Florida and one of the largest rate-regulated utilities in the United States. FPL serves 4.5 million customer accounts in Florida and is a leading employer in the state with nearly 11,000 employees. The company consistently outperforms national averages for service reliability while customer bills are well below the national average. A clean energy leader, FPL has one of the lowest emissions profiles and the No. 1 energy efficiency program among utilities nationwide. FPL is a subsidiary of Juno Beach, Fla.-based FPL Group, Inc. (NYSE:FPL). For more information, visit www.FPL.com.

Although FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) believe that their expectations are reasonable, because forward-looking statements are subject to risks and uncertainties, the companies can give no assurance that the forward-looking statements contained in this press release will prove to be correct. Important factors could cause FPL Group’s and FPL’s actual results to differ materially from those projected in the forward-looking statements in this press release. Factors that could have a significant impact on FPL Group’s operations and financial results, and could cause FPL Group’s and FPL’s actual results or outcomes to differ materially from those discussed in the forward-looking statements include, among others:

FPL Group and FPL are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions. FPL holds franchise agreements with local municipalities and counties, and must renegotiate expiring agreements. These factors may have a negative impact on the business and results of operations of FPL Group and FPL.
The operation and maintenance of power generation, transmission and distribution facilities involve significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.
The operation and maintenance of nuclear facilities involves inherent risks, including environmental, health, regulatory, terrorism and financial risks, that could result in fines or the closure of nuclear units owned by FPL or NextEra Energy Resources, and which may present potential exposures in excess of insurance coverage.
The construction of, and capital improvements to, power generation and transmission facilities involve substantial risks. Should construction or capital improvement efforts be unsuccessful or delayed, the results of operations and financial condition of FPL Group and FPL could be adversely affected.
The use of derivative contracts by FPL Group and FPL in the normal course of business could result in financial losses or the payment of margin cash collateral that adversely impact the results of operations or cash flows of FPL Group and FPL.
FPL Group's competitive energy business is subject to risks, many of which are beyond the control of FPL Group, including, but not limited to, the efficient development and operation of generating assets, the successful and timely completion of project restructuring activities, the price and supply of fuel and equipment, transmission constraints, competition from other generators, including those using new sources of generation, excess generation capacity and demand for power, that may reduce the revenues and adversely impact the results of operations and financial condition of FPL Group.
FPL Group's ability to successfully identify, complete and integrate acquisitions is subject to significant risks, including, but not limited to, the effect of increased competition for acquisitions resulting from the consolidation of the power industry.
FPL Group and FPL participate in markets that are often subject to uncertain economic conditions, which makes it difficult to estimate growth, future income and expenditures.
Customer growth and customer usage in FPL's service area affect FPL Group's and FPL's results of operations.
Weather affects FPL Group's and FPL's results of operations, as can the impact of severe weather. Weather conditions directly influence the demand for electricity and natural gas, affect the price of energy commodities, and can affect the production of electricity at power generating facilities.
Adverse capital and credit market conditions may adversely affect FPL Group's and FPL's ability to meet liquidity needs, access capital and operate and grow their businesses, and increase the cost of capital. Disruptions, uncertainty or volatility in the financial markets can also adversely impact the results of operations and financial condition of FPL Group and FPL, as well as exert downward pressure on the market price of FPL Group's common stock.
FPL Group’s, FPL Group Capital’s and FPL’s inability to maintain their current credit ratings may adversely affect FPL Group’s and FPL’s liquidity, limit the ability of FPL Group and FPL to grow their businesses, and would likely increase interest costs.
FPL Group and FPL are subject to credit and performance risk from third parties under supply and service contracts.
FPL Group and FPL are subject to costs and other potentially adverse effects of legal and regulatory proceedings, as well as regulatory compliance and changes in or additions to applicable tax laws, rates or policies, rates of inflation, accounting standards, securities laws, corporate governance requirements and labor and employment laws.
Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt FPL Group's and FPL's business may impact the operations of FPL Group and FPL in unpredictable ways.
The ability of FPL Group and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events.
FPL Group and FPL are subject to employee workforce factors that could adversely affect the businesses and financial condition of FPL Group and FPL.

General Electric Applauds US-UAE Civilian Nuclear Energy Cooperation Agreement

steveheiser — Thu, 05 Nov 2009 13:55:00 GMT

GE applauds the U.S.-United Arab Emirates (UAE) civilian nuclear energy cooperation agreement that recently earned congressional approval. Commonly known as a “123 Agreement,” this pact is legally required to allow U.S. companies to provide reactor technologies, fuel and nuclear energy services to other countries for civilian energy production.

GE has actively supported the historic U.S.-UAE agreement, which has been praised for its non-proliferation provisions that create a model for other countries in the region and around the world that are aspiring to address rising energy demands with clean-air nuclear energy.

“We applaud this landmark agreement, which marks a historic moment in the future development of civilian nuclear energy in the UAE and the region,” said Jack Fuller, president and CEO of GE Hitachi Nuclear Energy (GEH), the global nuclear energy alliance formed by GE and Hitachi. “The UAE has shown strong leadership demonstrating the role nuclear energy plays in a diverse energy portfolio to address growing domestic demands for clean and cost-effective power generation for generations to come.”

The agreement is the latest step as the UAE moves forward with the development of its national civil nuclear energy program. The UAE recently put into place a law establishing the regulatory framework for a civilian nuclear energy program.

The UAE’s domestic power demand is expected to increase to more than 40,000 MW by 2020. The country’s rapid economic development has stretched existing energy resources, and nuclear energy can help fill the electricity demand gap with cost-effective power.

GEH is a world-leading provider of advanced boiling water reactor technology and power plant services for scores of nuclear power stations around the world. Globally, dozens of new nuclear reactors are being constructed, adding to the 441 reactors currently operating in 31 countries, delivering 17 percent of worldwide electricity production. Global energy demand is expected to increase 44 percent by 2030, according to the U.S. Energy Information Administration. Nuclear energy is a safe, affordable and virtually carbon-free energy solution.

GE has been a strong partner of the UAE and an active participant in the country’s infrastructure growth for the past 40 years. Today, GE has six facilities and more than 600 employees throughout the UAE, supporting the growth of numerous sectors, including power, water, oil and gas, industrial, aviation, healthcare, finance, media and entertainment sectors. GE also is engaged in knowledge sharing and learning initiatives in the UAE, reflecting its continued commitment to the country and the region.

Based in Wilmington, N.C., GE Hitachi Nuclear Energy (GEH) is a world-leading provider of advanced reactors and nuclear services. Established in June 2007, GEH is a global nuclear alliance created by GE and Hitachi to serve the global nuclear industry. The nuclear alliance executes a single, strategic vision to create a broader portfolio of solutions, expanding its capabilities for new reactor and service opportunities. The alliance offers customers around the world the technological leadership required to effectively enhance reactor performance, power output and safety.

Splitting Hairs and Atoms with Randy Brich: Mondo Energy - The New Young Professionals Out to Make a Difference

steveheiser — Thu, 05 Nov 2009 13:50:00 GMT

Mondo Energy: The New Young Professionals Out to Make a Difference

- By Randy Brich -

In case you haven’t noticed there are some new young professionals (NYP) bent on making a difference. These NYP do not fit the mold of an average nuclear power advocate, even their name, Mondo Energy, conveys something non-standard compared to the more formal nuclear family. Check out their website www.mondoenergy.org and see if you agree.

In the “about us” section of their website Mondo succinctly addresses the importance of energy stating, in part:

”Modern society depends totally on energy for its existence. We need light, we need heat, and we need power to run machines or we will not have a civilization. It really is that simple…This is our mission at Mondo Energy: to help drive the discussions, the seemingly cross-purposed engagements in the global problem of energy processing, the pollution its generation and use creates, and the costs involved. Tomorrow will not take care of itself but if we don’t understand today, how can we hope to affect tomorrow?”

Surfing around the Mondo Energy website is like a taking a deep breath of fresh Northern Great Plains air. For example, under the “Nuclear Power” tab I found the following clear, concise description:

“There is no viable alternative to a vast enlargement of our nuclear generating capacity if we hope to significantly reduce our fossil fuel emissions while maintaining any semblance of our modern society. Nuclear powered electricity generation is the only type we now have that can both match the base-load capabilities of coal and natural gas, and do so with essentially no greenhouse gas emissions.

Nuclear is safe. The Nuclear Regulatory Commission has succeeded (sic) in their mission to ensure the safety of the nuclear industry in the US. There is an enormous amount of intellectual dishonesty in the popular press, blogo-sphere, and the old, reliably trite and ever-so-valiantly-trying-to-stay-relevant enviro-protest crowd and they all spend an enormous amount of money and will in trying to perpetuate the political myth that nuclear energy is dangerous. This claim is false.”

On October 22 they made their public debut holding their first of undoubtedly several upcoming live shows, “The Truth About Nuclear Power: The Role of Nuclear Power in the Clean Energy Mix, The Neutron Economy – Past, Present and Future, and What “Green Incorporated” Doesn’t Want You to Know” at the Denver Art Museum.

Over 150 interested, concerned citizens heard the truth about nuclear power firsthand from a cross section of professionals, including two authors, a retired Air Force Secretary, two professors and a CEO. Specifically, the speakers and their order of appearance follows:

• Gwyneth Cravens noted author of Power to Save the World
• Honorable William C. Anderson, former Assistant Secretary of the U.S. Air Force
• Nick Rosen, award-winning international producer, journalist and author of How to Live Off-Grid
• Dr. Robert Amme, professor of Physics and Astronomy at the University of Denver
• Dr. Roger Pielke, professor of Environmental Studies at the University of Colorado, Boulder
• John R. Grizz Deal, CEO of Hyperion Power Generation

I recently had the pleasure of chatting with Cody Pearson (BS Business Administration and marketing with an emphasis on International Business and e commerce) regarding the show. Interestingly, not only is he not a geek, he’s also a fearless downhill mountain biker, skier and snowboarder.

According to Cody they decided to hold a live show at the Denver Art Museum for two reasons: (1) To help people understand the process that Gwyneth Cravens went through to arrive at her conclusion that nuclear power indeed has the ability to “Save the World” and (2) to showcase the new technologies that are being developed to help solve the world’s energy problems.

Cravens talk covered the salient features of her book by walking the audience through the process that she went through to gain first hand knowledge about all aspects of the nuclear fuel cycle. Cravens’ book captivatingly chronicles her journey from the darkness of ignorance to the light of knowledge, and, I can only wish I’d been there to hear her speak. This type of personal testimony by a lay person can be a powerful and effective means of conveying essential facts about nuclear power to a non-technical audience and Mondo should be commended for bringing Gwyneth Cravens to Denver. Prior to seeing Mondo’s show announcement, I hadn’t heard of Nick Rosen and hope to review his book at some point in the future.

Regarding the new technologies the event featured John Griz Deal CEO of Hyperion Power Generation, Inc. (http://www.hyperionpowergeneration.com/) who spoke about their new modular “nuclear battery” as an alternative to the large (1 GWe) capital intensive reactors that are currently in vogue across the U.S. and elsewhere. Following the formal presentations the audience broke into small groups centering on each of the presenters facilitating in depth discussions on their specific topics.

According to Cody, Mondo considers their first event a “success that generated great input, put new technologies in front of more people, and was, all in all, a great job, especially, since they advertised the event on a shoestring budget.” In addition to their website, advertising consisted primarily of emails to their sponsor organizations and flyers in coffee shops around the Denver Metro area. Regarding my question whether any anti-nuclear activists attended Cody expressed surprise that no one protested although some “free-spirits” did attend the event.

Currently, 6 individuals all about 30 years old comprise Mondo Energy with Anna Tison, Editor, doing most of the heavy lifting. All of the Mondo gang, as Cody refers to them, have “real day jobs” and are very committed to their mission of educating the public regarding energy generation and distribution.

Cody also described a significant website expansion slated for either later this year or early next which should help bring Mondo into the mainstream of the energy websites.

Meanwhile, as Mondo processes lessons learned from the show and plans their next live event for sometime next Spring, surf their website frequently and see what the NYP are doing about our current energy problems -- who knows what you might learn.

About Randy Brich
Randy graduated from South Dakota State University in 1978 with a M.S. in Biology. Following graduation he switched gears and began a lifelong study of ionizing radiation and its beneficial applications to humanity. During the course of his study he worked as a staff Health Physicist with the Nuclear Regulatory Commission specializing in the licensing and inspection of uranium recovery facilities. He transferred to the Department of Energy where he worked as a Health Physicist at the Nevada Operations Office and later to the Richland Operations Office specializing in environmental monitoring, dose reconstruction, worker protection, waste cleanup and systems biology.

Since then he has retired from the federal government and, after taking time out to build an energy efficient house near the Missouri River, has formed Diamond B Communications LLC. Diamond B Communications LLC uses a multimedia approach to explain complex energy resource issues to technical and non-technical audiences. He also guides for Dakota Bike Tours, the Relaxed Adventure Company, offering tours of the Badlands National Park, the Black Hills and Devils Tower National Monument.

If you have questions, comments, or know of a book that you think Randy should review E-mail Randy Brich>> randy@nuclearstreet.com

EDF Offers Commitments To The European Commission: Long-Term Contracts Proceedings

steveheiser — Thu, 05 Nov 2009 13:25:00 GMT

These commitments in particular guarantee that an average of 65% of the volume of electricity that it supplies to its large industrial customers in France will be put back on the market each year

- By Christopher Smith -

As part of the European Commission’s examination of EDF’s electricity supply contracts with its large industrial customers, EDF has submitted proposed commitments in response to concerns over competition, expressed by the Commission in December 2008.

These commitments in particular guarantee that an average of 65% of the volume of electricity that it supplies to its large industrial customers in France will be put back on the market each year.

By doing this, EDF intends to help the European Commission find solutions in order to accelerate the deregulation of electricity supply markets in France, while retaining a margin for manoeuvre that will enable it to respond to the demands of some of its customers for long-term electricity supply offers

The Commission has announced the launch of a market test to gather comments on EDF’s proposed commitments from market players, before adopting a decision that could render these commitments effective and put an end to the present legal proceedings.

The EDF Group, one of the leaders in the energy market in Europe, is an integrated energy company active in all businesses: generation, transmission, distribution, energy supply and trading. The Group is the leading electricity producer in Europe. In France, it has mainly nuclear and hydraulic production facilities where 95% of the electricity output involves no CO2 emissions. EDF’s transport and distribution subsidiaries in France operate 1,274,000 km of low and medium voltage overhead and underground electricity lines and around 100,000 km of high and very high voltage networks. The Group is involved in supplying energy and services to more than 38 million customers around the world, including more than 28 million in France. The Group generated consolidated sales of € 64.3 billion in 2008, of which 47% in Europe excluding France. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index.

Bruce Power Gets Five-Year Operating Licenses

steveheiser — Thu, 05 Nov 2009 13:20:00 GMT

CNSC also approved Bruce Power’s request to load fuel into Units 1 and 2 once the current refurbishment project at Bruce A reaches that stage

- By April Murelio -

The Canadian Nuclear Safety Commission (CNSC) has accepted a recommendation from its staff to renew Bruce Power’s operating licences for the Bruce A and Bruce B generating stations for another five-year term.

The CNSC also approved Bruce Power’s request to load fuel into Units 1 and 2 once the current refurbishment project at Bruce A reaches that stage.

The CNSC decision followed three days of public hearings on Dec. 11, 2008 in Ajax, Ont. and Sept. 30 and Oct. 1, 2009 at the CAW Family Education Centre in Saugeen Shores. During those final two hearing days, commissioners heard from several interested parties, including delegations from the local community.

“The commissioners take a lot of notice from any presentations they receive from the public, and it was gratifying for us to see the vast majority of those being supportive to Bruce Power as a safe operator and an integral part of the community,” said Duncan Hawthorne, Bruce Power’s President and Chief Executive Officer.

Bruce Power is a partnership among Cameco Corporation, TransCanada Corporation, BPC Generation Infrastructure Trust, a trust established by the Ontario Municipal Employees Retirement System, the Power Workers’ Union and The Society of Energy Professionals.

NRC Appoints New Inspector To Indian Point 2

steveheiser — Thu, 05 Nov 2009 13:12:00 GMT

Two resident inspectors are also assigned to Indian Point 3. Both units are operated by Entergy Nuclear

- By April Murelio -

Nuclear Regulatory Commission officials in King of Prussia, Pa., have selected Odunayo (Ayo) Ayegbusi as the new resident inspector at Indian Point Unit 2 in Buchanan, N.Y.

He joins Senior Resident Inspector George Malone at Indian Point 2. Two resident inspectors are also assigned to Indian Point 3. Both units are operated by Entergy Nuclear.

Ayegbusi joined the NRC’s Region I office in 2005 after earning a bachelor’s in electrical engineering from the University of Maryland. He is a graduate of the NRC’s Nuclear Safety Professional Development Program, a two-year training program that provides specialized training in nuclear safety and a broad perspective of NRC regulatory activities. He also completed a rigorous NRC inspector qualification program. Most recently, Ayegbusi was a reactor inspector in the Region I office, taking part in engineering inspections.

“Ayo Ayegbusi has the training and commitment to safety that will help the NRC carry out its mission of protecting people and the environment, and ensure the safe operation of Indian Point 2,” said NRC Region I Administrator Samuel J. Collins.

Each U.S. commercial nuclear power plant site has at least two NRC Resident Inspectors. The NRC considers each Indian Point unit separately under the agency’s reactor oversight program. Therefore, four resident inspectors are assigned to the site. They serve as the agency's eyes and ears at the facility, conducting regular inspections, monitoring significant work projects, and interacting with plant workers and the public. Inspectors can serve for up to 7 years at any one site.

The Indian Point 2 resident inspectors can be reached at 914/739-9360.

L-3 MAPPS DCS-Controlled Simulators For China's Ling Ao Phase II New Build In Service

steveheiser — Thu, 05 Nov 2009 13:10:00 GMT

L-3 MAPPS successfully delivered and installed the FSS in August 2009, following closely behind the full scope classroom simulator

- By Stephen Heiser -

L-3 MAPPS has announced that the Ling Ao Phase II nuclear power plant Full Scope Simulator (FSS) is in service and being used to train operators. This is L-3 MAPPS’ first FSS for a new nuclear plant which is completely controlled by distributed control systems (DCSs).

In cooperation with AREVA and Siemens, L-3 MAPPS successfully delivered and installed the FSS in August 2009, following closely behind the full scope classroom simulator (CRS) for Ling Ao Phase II that was put into service in May 2009. Both simulators are situated at Daya Bay Nuclear Operations and Management Company’s new training facility in Da Peng, China.

“The recent installations at Ling Ao Phase II underscore our experience and determination in developing simulators for new plant builds,” said Michael Chatlani, vice president of marketing & sales for L-3 MAPPS Power Systems and Simulation.

“Thanks to a fruitful cooperation between the partners, the full scope simulator was delivered to the customer to allow launching the training of its operators. This was a key goal pursued by the customer that has now been achieved,” said Alain Billet, vice president, instrumentation & control-France at AREVA NP. “The challenge is now to complete the reconciliation of the last version of the DCS data while keeping the FSS on duty for training purposes. Undoubtedly, with the continuous efforts from L-3 MAPPS and the other parties involved (AREVA, Siemens and the customer), this project will result in a major success.”

“We are very pleased with the new simulators which allow us to extend our operator training capabilities during the commissioning of the plant,” said Zhang Ruiqiong, vice chief engineer at China Nuclear Power Engineering Company (CNPEC). “The advanced simulation and DCS technology will also benefit us for overall plant and DCS design considerations going forward.”

Integrated with AREVA- and Siemens-supplied DCSs, replica control room panels and stimulated human-machine interface, the FSS features L-3 MAPPS’ advanced instructor station capabilities and proven Windows-based graphical simulation environment providing advanced thermal-hydraulic, reactor, balance of plant, electrical and I&C models for the turbine control and other miscellaneous systems not controlled by the AREVA/Siemens DCSs. The safety systems DCS is AREVA’s Teleperm XS and the operational I&C system is Siemens’ SPPA-T2000 with OM690 human-machine interface.

The CRS is equivalent in scope to the FSS except the back-up panels are replaced with L-3 MAPPS’ large screen “touch” virtual panels. The CRS will continue to be used for testing the modeled plant responses to transients and verifying plant operating procedures concurrently while the plant being commissioned which is currently underway. As the simulator configurations evolve on the CRS platform, the FSS will be updated accordingly to provide added functionality to expand operator training.

The Ling Ao Phase II nuclear plant, owned by Ling Dong Nuclear Power Company, comprises the first two CPR1000 generating units that will be put into service, scheduled to go on-line in 2010. The CPR1000 is a Chinese standard design featuring a 1,080-megawatt (MWe) three-loop pressurized water reactor (PWR), whose design is coordinated by CNPEC.

L-3 MAPPS, a division of the L-3 Marine & Power Systems group, has over 25 years of experience in pioneering technological advances in the marine automation field and over 35 years of experience in delivering high-fidelity power plant simulation to leading utilities worldwide. In addition, the company has more than three decades of expertise in supplying plant computer systems for Canadian heavy water reactors. L-3 MAPPS also provides targeted controls and simulation solutions to the space sector.

To learn more about L-3 MAPPS, please visit the company’s Web site at www.L-3com.com/MAPPS.

Headquartered in New York City, L-3 Communications employs over 66,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2008 sales of $14.9 billion.

To learn more about L-3, please visit the company’s Web site at www.L-3com.com.

USEC Releases American Centrifuge Update

steveheiser — Wed, 04 Nov 2009 13:53:00 GMT

AC100 centrifuges for Lead Cascade testing program being reassembled; 10 machines are spinning, cascade startup expected in early 2010

- By Stephen Heiser -

USEC Inc. has provided an update on its effort to address technical and financial concerns that have been raised by the Department of Energy (DOE) during its review of USEC’s application to the Loan Guarantee Program.

“Although we were disappointed with DOE’s decision in August to delay final review of our application, we still believe that our investment in the American Centrifuge technology and plant is a path to long-term value for our shareholders. We are sharply focused on resolving the concerns DOE has raised,” said John K. Welch, USEC president and chief executive officer.

“Following our review of machine assembly quality assurance procedures, we have reassembled about a dozen AC100 centrifuges and incorporated updated components. We have 10 of these machines installed and spinning at the America Centrifuge Plant and expect to have about two dozen machines reassembled by the end of this month. We anticipate operating these commercial, production-ready AC100 machines in our Lead Cascade test program in early 2010,” Welch said.

“DOE officials have told us they want to see the project succeed for a number of policy reasons. The independent engineer’s report on our project prepared for DOE provides us with guidelines for technical and financial improvements that need to be made. We have met with DOE officials and will be presenting a plan to meet all of their technical and reliability concerns. These concerns will be addressed before we update our application to the Loan Guarantee Program,” he said.

“A substantial portion of our recent effort has been to focus on ways to mitigate cost risk for the project and the company’s ability to manage that risk, which includes our strategic alternatives,” Welch said. “It is our plan to present a revised and improved financial structure as part of our updated submission to DOE.”

We have retained a financial advisor to explore strategic alternatives for the Company. We are considering all options, including a possible sale of the Company or other business combination transaction. There can be no assurance regarding the timing of or whether the Board of Directors will elect to pursue any of the strategic alternatives it may consider, or that any such alternatives, if pursued, will be consummated.

On August 4, 2009, DOE and USEC announced an agreement to delay a final review of our loan guarantee application for the ACP until at least early 2010. As a result, USEC began to demobilize the American Centrifuge project in order to preserve liquidity as we evaluate the strategic options for the future of the project. In parallel, we are continuing American Centrifuge demonstration activities, evaluating how best to configure the project on a go-forward basis, and seeking to reduce technical and financial risk for the project.

Since August, over 1,300 project jobs have been lost as a result of demobilization, including approximately 120 jobs at USEC and the remainder from direct jobs at our suppliers. Several thousand indirect jobs have also been affected. Job losses have occurred in eight states, with Ohio and Tennessee having the largest job losses.

Construction work on the plant infrastructure and finalizing the balance-of-plant design ceased in August. The plant design work is approximately 80 percent complete and would resume following a decision to remobilize the project. Because we have delayed high-volume machine manufacturing, work at all of our strategic suppliers has been sharply reduced.

USEC continues its Lead Cascade testing program in Piketon, Ohio. The prototype centrifuges operating there for more than two years have accumulated approximately 275,000 machine hours. Data from this testing program has provided valuable assembly, operating and maintenance information, as well as operations experience for the American Centrifuge staff. The prototype machines continue to operate. During the quarter ended September 30, 2009, we determined that at least some of our production centrifuge machines, which we call the AC100 design, that were being prepared for Lead Cascade testing were not assembled in full compliance with the specified drawings and procedures. We disassembled these machines and have begun reassembling the machines with improved components that were incorporated in the design finalized earlier this year. These enhanced machines are production-ready and would be deployed in the commercial plant. We subsequently enhanced procedures to ensure compliance with our quality assurance program for centrifuge components manufacturing and assembly. Ten of these machines are operating individually and we expect to restart Lead Cascade testing of approximately two dozen AC100 machines in early 2010.

USEC’s spending plan going forward for the project is still being developed. In the first nine months of 2009, our spend rate on the project was approximately $45 million per month. We expect to substantially reduce that spending level. We do not expect to see the full impact of these reductions from project demobilization until the fourth quarter and beyond. As noted in our revised 2009 outlook, advanced technology expense in 2009 is expected to be in a range of $115 to $120 million, as advanced technology expense declines in the fourth quarter, reflecting the demobilization of building the American Centrifuge Plant and ongoing centrifuge lead cascade and related demonstration activities. We expect to set a spending level for the project for the next several months that will vary depending on available funds. DOE previously committed to provide $45 million to USEC over 18 months (with $30 million of that in Federal government fiscal year 2010) to support ongoing American Centrifuge technology demonstration activities. However, Congress did not provide the $30 million in funding for this activity in the recently completed Federal government fiscal 2010 energy and water appropriations conference report, and DOE in an October 15, 2009, press release stated that it does not see a path to providing the $30 million in funding at this time. USEC plans to work with DOE and Congress on alternative approaches for obtaining this funding, but the availability and timing of this funding are uncertain and consequently this impacts the amount we have available to spend on the project.

As we seek the most cost-effective deployment plan, we are evaluating the scope and scale of the plant, the deployment of machines over a longer time period, alternate financing structures, and the cost and feasibility of remobilizing at a later date. Based on the results of this evaluation of our strategic options for the future of the project, or in the event of a further delay, or a decrease in the likelihood of obtaining DOE loan guarantee funding, or for other reasons, we may reduce spending and staffing on the project even further or might be forced to take other actions, including terminating the project. Our efforts to continue deployment of the ACP remain subject to the uncertainty of our ability to obtain a DOE loan guarantee as well as the other risks related to the deployment of the ACP described in our Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. Areva, a company majority owned by the French government, also applied to the Loan Guarantee Program for a plant it has proposed to build in Idaho. Areva’s application is also being considered by DOE, which could affect our likelihood of obtaining a loan guarantee.

In addition to ACP spending through year end, we are working with suppliers to reduce any incremental exposure for additional payments. That total exposure is currently estimated to be between $65 and $75 million at December 31, 2009. That amount includes anticipated payments for materials to be delivered, as well as contract termination exposure. The termination exposure is a function of timing, project schedule and any modifications to work scope. This estimate could be affected by ongoing discussions with suppliers.

Our near-term goals for the American Centrifuge project continue to include the following:

Successful start up of the AC100 Lead Cascade testing program in early 2010 using the upgraded production machines to improve DOE’s confidence in the machines’ reliability through consistent operation.
Manufacture a limited number of machines and maintain the manufacturing infrastructure so we can expand the number of machines in the Lead Cascade testing program and support potential remobilization.

Continue development efforts to further improve reliability of the AC100, increase the machine’s productivity as measured by SWU output and lower its capital cost per SWU through value engineering.
Reduce perceived project risk and take other steps to improve our financial structure.
Negotiate contracts with suppliers that can provide greater certainty of cost and schedule and develop a revised project plan.
Continue working with customers to enter into additional long-term contracts to build on the $3.4 billion in committed sales for the output from the ACP.

USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.

Under The Hood With Duncan Williams - Miniature Nuclear Reactors

steveheiser — Wed, 04 Nov 2009 13:51:00 GMT

Miniature Nuclear Reactors

- By Duncan Williams -

Senator Mark Udall (D-Co) last week introduced a bill in the Senate titled “The Nuclear Energy Research Initiative Improvement Act of 2009,” which would authorized the Department of Energy to fund research in the field of compact, or miniature, nuclear reactors as an energy source. However, many companies have already begun researching and designing smaller more compact nuclear reactors that can provide electricity for years to rural outposts, or third world communities. Here is just a sample of some of the major players already in the marketplace.

French Atomic Energy Commission
On December 26, 2006, the U.S. Patent Office issued Patent No. 7,154,982, titled “Compact Pressurized Water Nuclear Reactor,” to the French Atomic Energy Commission (Commissariat a l’Energie Atomique).

Unlike most conventional nuclear reactor plants, the reactor described in this patent positions most of the reactor plant components inside the reactor vessel itself. In conventional reactor plants, the reactor vessel houses only the nuclear fuel that drives the fission process. Pumps, connected to the reactor vessel via metal piping, circulate water into the reactor vessel in order to absorb the heat produced from the nuclear fission process. After the water is heated, it is pumped out of the reactor core travels through piping to a heat exchanger which removes the heat from the water. A separate tank, known as a pressurizer, is connected to the reactor vessel and acts as a surge tank for the water in the vessel. All of these components are external to the reactor vessel in a traditional reactor.

But as can be seen in the diagram taken from this patent, most of these components are located inside the reactor vessel. The pumps (28), heat exchangers (42), and pressurizer (30), are all located inside the reactor vessel (10). The pumps (28) circulate water down the sides of the reactor vessel across the heat exchangers (42) which cools the water. The water then enters the bottom of the vessel (10) and flows upwards through the reactor core (14) which contains the heated nuclear fuel. The fission reaction in the reactor core (14) is controlled by hydraulic control rods (40) which can be inserted into the nuclear fuel to absorb neutrons and effectively halt the fission reaction. As water is heated, it rises up into the u-tubes (26), which heats water in the secondary closed space (24). This water turns to steam and can then be used to rotate turbines to generate electricity.

Although the exact dimensions of the reactor are not disclosed, the patent indicates that the design is applicable to small and medium power nuclear reactors with an output of 600 Megawatts. This makes it one of the largest “compact” reactors in the marketplace.

Toshiba
Toshiba is currently designing a small 10 Megawatt nuclear reactor known as the “Super-Safe, Small and Simple” (4S) design. Intended to be buried underground, this reactor can last 30 years before needing a fuel replacement. Although the reactor design Toshiba submitted for approval by the Nuclear Regulatory Commission (NRC) shows the reactor uses enriched uranium-235 as a fuel, the patent owned by Toshiba covering this product indicates that plutonium can also be used.

The reactor described in U.S. Patent No. 7,139,352, titled “Reactivity Control Rod for Core,” is similar to the French design, since all the components of the reactor coolant system are located inside the reactor vessel. As can be seen in a figure from this patent, the reactor core (2) contains the reactor fuel. Electromagnetic pumps (13) circulate liquid sodium to the bottom of the core, then up through the reactor core (2) in order to remove heat created during the fission process. The heated sodium rises up the center the reactor and enters the steam generator (14) which cools the liquid sodium causing it to circulate down to the bottom of the reactor core again. The hot sodium flowing through the steam generator (14) is used to create steam which can then be used to rotate turbines to generate electricity.

Hyperion Power Generation
Los Alamos National Laboratory has granted an exclusive license to Hyperion Power Generation to license, manufacture, market and distribute a 1.5 meter nuclear reactor about the size of a hot tub. Hyperion claims that just one of these reactors (25 Megawatts) has enough energy to power 20,000 average American homes for at least 5 years.

The only known patent application associated with this technology is U.S. Patent Publication No. 20080069289, published on March 20, 2008, and titled, “Self-Regulating Nuclear Power Module.” As can be seen in a figure of this reactor from the patent application, the reactor core vessel (28) is filled with uranium hydride (UH3) fuel particles containing enriched uranium-235. The entire structure seen in this diagram would itself be enclosed in a hydrogen gas atmosphere.

The properties of the uranium hydride itself serves to regulate the fission process in the reactor core. The heat generated during the fission process causes the temperature to rise, which causes the hydrogen in the uranium hydride particle to detach from the fuel particle and to form hydrogen gas. Since there are less hydrogen particles in the reactor core, the reactor core is less dense, and thus more neutrons leave the reactor vessel and are not used in the fission process. This causes the reactor power level to go down, which reduces the temperature. If the power level gets low enough, the temperature drops to a level which causes the hydrogen to once again bond onto the uranium hydride particles, increasing the density of the core. Since the core is more dense, then neutrons are more likely to be used in the fission process resulting in reactor power going up.

In order to maintain the proper equilibrium of hydrogen in the enclosed atmosphere, the vessel (28) is surrounded by several layers of trays (22) containing depleted uranium or thorium. Theses substances absorb and expel hydrogen much the same as the uranium hydride particles, allowing the hydrogen to quickly reach equilibrium instead of constantly oscillating between too much and too little hydrogen. Without the trays (22), the reactor would constantly oscillate attempting to reach an equilibrium.

Babcock & Wilcox
Babcock & Wilcox has formed a new entity, B & W Modular Nuclear Energy, LLC, to lead the development, licensing and delivery of its new 125 Megawatt “mPower” brand of nuclear reactors. Although no published patent documents are yet available, the NRC’s website indicates that this reactor core uses enriched uranium-235 as fuel and will last approximately 5 years before needing replacement. As seen in the diagram taken from the NRC’s website, this design is similar to the French design which locates most of the reactor plant components inside the reactor vessel itself alongside the nuclear fuel.

NuScale Power, Inc.
NuScale is developing a 40 Megawatt reactor which can last 2 years before needing replacement. A reactor utilizing this design has already been built and tested in cooperation with the laboratories at Oregon State University. Similar to the other designs, NuScale places several reactor plant components inside the reactor vessel. Unlike the other designs, the coolant inside of NuScale’s reactor circulates through natural circulation and does not require any pumps. This design could give NuScale the advantage since less moving parts inside the reactor vessel means there is less of a chance that repairs will be needed. However, this design also includes the traditional enriched uranium-235 nuclear fuel requiring the use of control rods to absorb neutrons in order to control the fission process. Thus, NuScale’s design seems to be less automated than some of the other designs. NuScale has applied for several patent applications relating to this design, but have not yet been issued from the U.S. Patent Office.

Last Week's Column:

Under The Hood With Duncan Williams - Thorium Power’s Seed-Blanket Thorium Reactor

Thorium Power’s Seed-Blanket Thorium Reactor - By Duncan Williams - The ever increasing global demand for energy is driving new research into alternate fuel sources for nuclear reactors. Most nuclear reactors in operation today use uranium dioxide (UO2) as a fuel source, which includes a large initial amount of enriched ...

About Duncan Williams
Duncan Williams graduated from the University of Florida in 1994 with a B.S. in Physics, and a minor in mathematics. Upon graduation, he was commissioned in the U.S. Navy where he completed training in the Navy’s Nuclear Propulsion program. He then served onboard an aircraft carrier, the USS Theodore Roosevelt, as a reactor control division officer. Onboard, he was responsible for the operation and maintenance of the electrical and mechanical components that make up the reactor control systems. This includes the control rod drive mechanisms, the reactor safety and emergency systems, the reactor coolant pump systems, and the ion exchangers. He also developed and implemented ship-wide reactor safety drills in order to educate sailors in reactor safety.

Duncan then transferred to the U.S. Naval Academy, where he served as a senior instructor teaching Thermodynamics to senior cadets. While serving as an instructor at the Naval Academy, Duncan attended night law school at the George Washington University Law School. After receiving his J.D. in 2004, he resigned his commission and began working as an intellectual property associate with Kenyon & Kenyon LLP. While at Kenyon & Kenyon, he drafted numerous patents relating to medical devices, electronic devices, telecommunications, as well as other technologies. He also has experience in all stages of patent litigation, and has represented numerous Fortune 500 companies in protecting their intellectual property rights. Duncan is currently an intellectual property associate at Blank Rome LLP.

If you have questions, comments, or know of a patent that you think Duncan should review E-mail Duncan Williams>> duncan@nuclearstreet.com

Dominion Resources Says It’s Narrowing Reactor Builder List

steveheiser — Wed, 04 Nov 2009 13:50:00 GMT

Six companies, which Dominion would not identify, bid on the proposed 1,500-megawatt North Anna 3 power plant

- Edited by April Murelio -

According to a report in The Richmond Times-Dispatch, Dominion Resources Inc. has winnowed down the number of potential builders for its proposed third nuclear reactor at the North Anna Power Station in Louisa County. "We are narrowing down the list," said Dominion spokesman Chet Wade, "and we expect to make a decision in the next two quarters."

Six companies, which Dominion would not identify, bid on the proposed 1,500-megawatt North Anna 3 power plant.

"We have not decided on whether to move forward with the project," Wade said, noting that the State Corporation Commission would have to approve the plant's construction.

North Anna's existing reactors generate a combined 1,800 megawatts of electricity. The company also operates nuclear plants in Surry County and in Connecticut and Wisconsin.

Dominion Resources filed an application to construct the third North Anna reactor with the Nuclear Regulatory Commission in November 2007.

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 27,500 megawatts of generation, 1.2 trillion cubic feet equivalent of proved natural gas and oil reserves, 14,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage facility with 975 billion cubic feet of storage capacity and serves retail energy customers in 12 states. Corporate headquarters are in Richmond, Va.

Dominion's strategy is to be a leading provider of electricity, natural gas and related services to customers in the energy-intensive Midwest, Mid-Atlantic and Northeast regions of the U.S., a potential market of 50 million homes and businesses where 40 percent of the nation's energy is consumed.