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Edison Con? San Onofre Nuclear Plant Owner Proposes Reactor Restart

9:00 am in Uncategorized by Gregg Levine

Containment domes or shell game? (Aerial view of San Onofre Nuclear Generating Station by Jelson25 via wikipedia)

Southern California Edison (SCE), the operator of the troubled San Onofre Nuclear Generating Station (SONGS), has proposed to restart one of the facility’s two damaged reactors without repairing or replacing the parts at the root of January’s shutdown. The Thursday announcement came over eight months after a ruptured heat transfer tube leaked radioactive steam, scramming Unit 3 and taking the entire plant offline. (Unit 2, offline for maintenance, revealed similar tube wear in a subsequent inspection; Unit 1 was taken out of service in 1992.)

But perhaps more tellingly, Edison’s plan–which must be reviewed by the Nuclear Regulatory Commission–was issued just weeks before the mandated start of hearings on rate cuts. California law requires an investigation into ratepayer relief when a facility fails to deliver electricity for nine months. Support of the zombie San Onofre plant has cost California consumers $54 million a month since the shutdown. It has been widely believed since spring that Unit 3 would likely never be able to safely generate power, and that the almost identical Unit 2 was similarly handicapped and would require a complete overhaul for its restart to even be considered.

Yet, calls for more immediate rate rollbacks were rebuffed by Edison and ignored by members of the California Public Utilities Commission (CPUC). Despite studies that showed SONGS tube wear and failure was due to bad modeling and flawed design, and a company pledge to layoff of one-third of plant employees, San Onofre’s operators claimed they were still pursuing a restart.

Thursday’s proposal for that restart does not directly engage any of the concerns voiced by nuclear engineers and watchdog groups.

When SONGS installed new turbines in 2010 and 2011, it did not replace “like with like”–that would have required a costly custom machining of parts no longer routinely manufactured. Instead, San Onofre’s owners moved to “uprate” their generators–cramming in more transfer tubes to increase output–with the nuclear industry equivalent of “off the shelf” parts. It was a transparently profit-driven decision, but more crucially, it was a major design change that should have required a lengthy license-amendment process at the NRC.

Federal regulators, however, took on faith industry assurances that changes were not that big a deal, and approved San Onofre’s massive retrofit without an extensive investigation into the plan.

What is now understood to have happened is that the design of new parts for San Onofre was based on flawed computer models that failed to anticipate new fluid dynamics, increased vibration, and more rapid wear in the numerous thin, metal, heat transfer tubes. It’s a flaw that presumably would have turned up in a more rigorous regulatory review, and, again, a problem not directly addressed by Edison’s restart plan.

Rather than repair or replace the tubes and turbines, San Onofre’s owners propose to simply plug the most severely degraded tubes in Unit 2 and then run that reactor at 70 percent power. After five months, Unit 2 would be shut down and inspected. (There was no plan offered for the future of Unit 3.)

Why 70 percent? Edison said it believes that would lessen vibration and decrease the rate of wear on the heat transfer tubes. Does that make any scientific sense? Not in the eyes of nuclear engineer Arnie Gundersen, who has produced three studies on San Onofre’s problems:

Restarting San Onofre without repairing the underlying problems first turns Southern California into a massive science experiment. Running at the reactor at a 30 percent reduction in power may not fix the problems but rather make them worse or shift the damage to another part of the generators. It’s a real gamble to restart either unit without undertaking repairs or replacing the damaged equipment.

S. David Freeman, former head of the Los Angeles Department of Water and Power, as well as the Tennessee Valley Authority, and now a senior advisor to Friends of the Earth, is even more pointed:

Neither of the reactors at San Onofre are safe to operate. While Edison may be under financial pressure to get one up and running, operating this badly damaged reactor at reduced power without fixing or replacing these leaky generators is like driving a car with worn-out brakes but promising to keep it under 50 miles an hour.

That is the scenario now before the NRC. An experimental roll of the dice within 50 miles of 8.4 million California residents, offered up with a “trust us” by the same folks who got the modeling dangerously wrong last time, versus multiple studies calling into question the viability of a plant that already has a long history of safety and engineering problems. Regulators are at least talking as if they understand:

“The agency will not permit a restart unless and until we can conclude the reactor can be operated safely,” NRC Chairman Allison Macfarlane said. “Our inspections and review will be painstaking, thorough and will not be rushed.”

The right words, but hardly reassuring ones given the commission’s past actions (or inactions) on San Onofre and numerous other dangerous events across the nation’s aging nuclear fleet.

The sting that keeps on stinging

But does NRC approval really matter to Southern California Edison, at least in the short run?

Operating only one of San Onofre’s reactors at two-thirds of its proposed output for five months sometime next year–which is the best-case scenario–does not provide a meaningful addition to California’s near- or long-term energy outlook. (California officials are already making plans for another year without San Onofre.) In addition, San Onofre has other problems to address, such as aforementioned staffing issues, new seismic evaluations required in the wake of the Fukushima disaster, newfound safety lapses, and ongoing concerns about the quality of the concrete used to plug 28-foot holes in both reactors’ containment domes (the holes were cut for installation of the new turbines, inquiries about the strength and durability of the concrete were made a year ago, but, to date, the NRC has not released a report).

But Thursday’s proposal does provide Edison with a modicum of cover going into an October 9 public information session and the upcoming debate over whether California consumers should still have to pay for a power plant that provides no power.

Indeed, billing for services not rendered could be considered a profit center for the US nuclear industry. San Onofre is but one case; ratepayers in Florida are also familiar with the scam.

The same day SCE submitted its SONGS plan, attorneys for the Florida Public Service Commission (PSC), Progress Energy and Florida Power & Light (FPL), appeared before the Florida Supreme Court to defend an “advance fee” that has allowed the utilities to soak Sunshine State ratepayers for upwards of $1 billion. The money collected, and additional fees approved last year by the PSC, are slated for the construction of new nuclear reactors in Levy County and at Turkey Point.

The court challenge was brought by the Southern Alliance for Clean Energy, which contends there is little evidence Progress or FPL can or ever really intend to build the new facilities. Indeed, FPL has spent some of its takings on existing operations, while Progress has blown hundreds of millions of dollars trying to repair its Crystal River nuclear plant, which has been offline since 2009, and likely will never return to service.

What do attorneys for the utilities say when challenged on these points? That their intent is borne out by the fact that both are still seeking construction and operating licenses from the Nuclear Regulatory Commission.

There is no indication NRC approval on those projects is imminent (in fact, no NRC approvals of any projects are imminent), nor are there any guarantees that the projects could be fully financed even with licenses and all that ratepayer cash.

But, be it for future fantasies or current failures, from Florida to California, electricity consumers are paying higher prices to perpetuate the myth of a nuclear renaissance and balance the books of the nuclear industry. . . while industry officials, lobbyists and favored politicians pocket a healthy share.

And not satisfied with that cushy arrangement, San Onofre’s operators are also pushing for permission to move its ratepayer-financed decommissioning fund into riskier investment properties. The industry promises this will bring higher yields, but, of course, it also chances bigger losses–and it guarantees larger fees, which would be passed on to Southern California consumers upon CPUC approval.

None of these actions–not the investment games, the rate hikes or the experiment with San Onofre’s damaged reactor–are actually about providing a steady supply of safe, affordable energy. These are all pecuniary plays. Across the country and across the board, nuclear operators seem more interested in cashing in than putting out.

More prudent for governments and utility commissions, and more beneficial for ratepayers, of course, would be to stop paying the vig to nuclear’s loan sharks, stop throwing good money after bad in a sector that is dying and dangerous, and start making investments in truly clean, truly renewable, and increasingly far more economical 21st Century energy technologies.

Until that happens, the most profitable thing about nuclear power will continue to be the capacity to charge for a service that might never be provided. Private utilities have understood this for a long time; ratepayers are becoming painfully aware of it, too. The question is, when will government regulators and utility commissions understand it–or at least fess up to being in on the con?

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Stop the Madness! Or at least learn more about it. Join me on Saturday, October 13, at 5 PM Eastern time (2 PM Pacific) when I host an FDL Book Salon chat with Joseph Mangano, author of Mad Science: The Nuclear Power Experiment.

RIP San Onofre Nuclear Generating Station, 1968 – 2012

8:45 am in Uncategorized by Gregg Levine

San Onofre

San Onofre Nuclear Generating Station, the twin-reactor power plant that spread its isotopic glow across coastal communities from Los Angeles to San Diego, was declared dead last week. SONGS, as it was affectionately known, was 44, though many of its parts are considerably younger.

Originally conceived as a single Westinghouse pressurized water reactor in 1964, San Onofre was officially commissioned on January 1, 1968. Two additional units were brought online in the early 1980s. The original Unit 1 was closed permanently in 1992, and stands as a radiant monument to nuclear’s 20th Century aspirations.

With its proximity to seismic fault lines and a history of accidents, security breaches and safety complaints, SONGS has long been deemed one of the most difficult siblings in its nuclear family. Units 2 and 3 have been offline since January of this year due to a leak of radioactive steam from a heat transfer tube. Subsequent inspections of the tubes–completely redesigned and replaced when SONGS got an extreme makeover in 2010 and 2011–revealed alarming rates of wear previously unseen at any similar facility. Both reactors have been considered too damaged to simply restart since the initial discovery.

Though multiple scientists, engineers, public interest groups and government agencies diagnosed San Onofre’s troubles as terminal early in the year, Southern California Edison and San Diego Gas & Electric, SONGS’ “guardians” held out hope (or more likely just put on a brave face for the sake of family and friends–also known as “shareholders”) that their beloved ward could be revived. A decision last month to remove the nuclear fuel from Unit 3 made it hard to maintain that façade, and news late last week that the utilities were planning for a 2013 summer without any power produced or transferred by San Onofre made it clear that even SONGS’ oldest friends understood it was time to “pull the plug,” as electrical types are wont to say.

San Onofre is survived by its California cousin, Diablo Canyon, and 100 other frail and faltering nuclear reactors nationwide. At the time of this writing, funeral arrangements have still not been made official.

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And there’s the rub. While it is the present reality and the obvious future, the final shuttering of San Onofre has not been made official. Not by its operators, and not yet even by the California Public Utilities Commission. Acknowledging the nuclear plant’s demise would trigger a review process that would result in rate reductions for Edison and SDG&E customers. Those reviews will kick in automatically in a couple of months because SONGS has failed to generate a single kilowatt of electricity from February on, but the owner-operators of the plant have fought to drag the process out to its longest legal limit, despite the widespread understanding that a restart of even one reactor is at best very far off and likely just never to be.

The head of the Nuclear Regulatory Commission, Allison Macfarlane, has asked for a letter from Edison detailing the “root causes” of the leak and tube degradation. Edison said that letter would be delivered by the end of the first week in October. That letter will not contain any kind of a plan for a restart of Unit 2 (no one is talking about restarting Unit 3), and the NRC will have to review Edison’s report for months before there is any possibility of repair work (realistically, there should be no possibility of repair to Unit 2, since its damage is comparable to the essentially condemned third unit, but this is how these things play out, and, sadly, stranger things have happened).

Meanwhile, Edison has announced it will cut San Onofre’s workforce by one-third (730 jobs), another clear signal that nothing like a restart will be happening any time in the predictable future.

With this reality universally understood and effectively acknowledged by all parties, the NRC should stop wasting resources on any plan for a restart, and start asking the tough questions about decommissioning SONGS. And it borders on corrupt that SCE and SDG&E are still charging ratepayers $54 million a month for service not rendered, with no promise that it ever will be. The California PUC should remove San Onofre from the utilities’ rate base now.

Shockingly, some on the CPUC are looking to make this scandalous situation worse. Over the life of San Onofre, utilities customers have paid into a decommissioning fund–and though the balance in that account now approaches $3 billion, it is still considered underfunded by at least 25 percent. And now, one commissioner, Tim Simon, a former securities industry attorney, is publicly advocating lifting limits on how that money could be invested, arguing that riskier bets would yield higher returns. This suggestion was voiced last week, after the decision was made to remove the fuel from Unit 3, after the NRC made it clear that a restart of Unit 2 was far from guaranteed, and, of course, over eight months after SONGS stopped generating power altogether. It also comes after the NRC announced a delay in any final decisions on relicensing until the government developed a new radioactive waste disposal scheme, a process expected to take at least two years.

Consumer advocate Matt Freedman of The Utility Reform Network (TURN) sees this idea for what it is–socialized risk, privatized return:

“It‘s a maxim of retirement planning that as you get closer to your own personal retirement, your investments get more conservative,” Freedman said, “not more risky. But in this case, Commissioner Simon is suggesting that as these units near their retirement, that we should begin to invest more of the money in very risky investments.”

Freedman said the proposal on the table appears designed to benefit investment managers who would charge higher fees for new categories of investments. He said without a lot of time to ride out market fluctuations, ratepayers could be left on the hook for any depletion of the fund caused by market drops.

Naturally, San Diego Gas & Electric finds Simon’s idea appealing, but in the same breath, the company notes such a move means higher fees–fees that could be passed on to ratepayers with CPUC approval. It appears to be another sign that the utilities are looking to cash in before San Onofre officially is forced to check out.

But in times of trouble, responsibility ultimately rests with the family (aka the shareholders) to confront the hard truths. Owners of Edison and SDG&E stock should demand that the boards of these companies stop wasting shareholders’ money and everyone’s time and get on with divesting from their dirty, dangerous, and expensive involvement with nuclear power.

A public wake–also known as a public meeting–will be held for San Onofre by the NRC on October 9 from 6 to 9:30 PM at the St. Regis Monarch Beach Hotel in Dana Point. Mourning attire optional.

Photo of San Onofre Nuclear Generating Station courtesy NRC.gov

End-of-Summer News Puts Nuclear Renaissance on Permanent Vacation

6:59 am in Uncategorized by Gregg Levine

Calvert Cliffs Nuclear Power Plant, Units 1 & 2, near Lusby Maryland. (photo: NRCgov)

The Nuclear Regulatory Commission cannot issue a license for the construction and operation of a new nuclear reactor in Maryland–that is the ruling of the NRC’s Atomic Safety and Licensing Board (ASLB) handed down Thursday.

In their decision, the ASLB agreed with intervenors that the Calvert Cliffs 3 reactor project planned for the shores of Chesapeake Bay violated the Atomic Energy Act’s prohibition against “foreign ownership, control, or domination.” UniStar, the parent company for the proposal, is wholly owned by French energy giant Électricité de France (EDF).

EDF had originally partnered with Constellation Energy, the operator of two existing Calvert Cliffs reactors, but Constellation pulled out of the project in 2010. At the time, Constellation balked at government requirements that Constellation put $880 million down on a federal loan guarantee of $7.6 billion (about 12 percent). Constellation wanted to risk no more than one or two percent of their own capital, terms the feds were then willing to meet if Constellation and EDF could guarantee the plant’s completion. Constellation also found that requirement too onerous.

Constellation has since been purchased by Exelon.

The ASLB decision technically gives EDF 60 days to find a new American partner, but given the history and the current state of the energy market, new suitors seem highly unlikely. It marks only the second time a license has been denied by the ASLB. (The first, for the Byron, Illinois plant in 1984 was overturned on appeal. Byron opened the next year, and Illinois’s groundwater has never been the same.) The NRC also declined to grant a license to the South Texas Project late last year when US-based NRG Energy (corporate ID courtesy of the Department of Redundancy Department) pulled out of the project, leaving Japanese-owned Toshiba as the only stakeholder.

The Calvert Cliffs intervenors were led by the Nuclear Information and Resource Service (NIRS), which has been fighting Calvert Cliffs 3 almost since its inception. NIRS was joined by Beyond Nuclear, Public Citizen and Southern Maryland CARES.

Michael Mariotte, Executive director of NIRS, called Thursday’s decision “a blow to the so-called ‘nuclear renaissance,’” noting that back in 2007, when permit requests were submitted for Calvert Cliffs 3, the project was considered the “flagship” of a coming fleet of new reactors. “Now,” said Mariotte, “it is a symbol for the deservedly failed revival of nuclear power in the US.”

A symbol, yes, but far from the only symbol. Read the rest of this entry →

NRC Cites San Onofre Nuclear Plant for Lapse in Security

4:45 am in Uncategorized by Gregg Levine

An aerial view of the troubled San Onofre Generating Station. (photo: Jelson25 via Wikipedia)

The US Nuclear Regulatory Commission hit Southern California Edison’s San Onofre Nuclear Generating Station (SONGS) with a violation for what it called a lapse in plant security, the agency announced late Thursday.

The NRC noted the violation during a four-day inspection in May. SONGS has been completely offline since January, when a radioactive leak led to the discovery of severely degraded heat exchanger tubes in both of the plant’s (nominally) operating reactors. (In July, the NRC released its report on the tube failures, saying that although plant operators had made major design changes that affected the stability of the tubes, they had not violated any laws.)

Regulators said Edison “failed to develop procedures to monitor electronic devices related to security,” but the NRC has withheld most of the details of the violation.

San Onofre has a long list of safety and security problems dating back long before the latest tube debacle. In January, around the same time as the radioactive leaks, a SONGS worker accidentally fell into one of the facility’s spent fuel storage pools while trying to retrieve a dropped flashlight. And just two weeks ago, an investigation uncovered a staggering number of fire safety violations that continue to go uncorrected, despite previous NRC warnings.
Read the rest of this entry →