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Nuclear “Renaissance” Meets Economic Reality, But Who Gets the Bill?

10:15 am in Uncategorized by Gregg Levine

Crystal River Nuclear Generating Plant, Unit 3, 80 miles north of Tampa, FL. (photo: U.S. NRC)

Crystal River is back in the news. Regular readers will recall when last we visited Progress Energy Florida’s (PEF) troubled nuclear reactor it was, shall we say, hooked on crack:

The Crystal River story is long and sordid. The containment building cracked first during its construction in 1976. That crack was in the dome, and was linked to a lack of steel reinforcement. Most nuclear plants use four layers of steel reinforcement; Crystal River used only one. The walls were built as shoddily as the dome.

The latest problems started when Crystal River needed to replace the steam generator inside the containment building. Rather than use an engineering firm like Bechtel or SGT–the companies that had done the previous 34 such replacements in the US–Progress decided it would save a few bucks and do the job itself.

Over the objections of on-site workers, Progress used a different method than the industry standard to cut into the containment building. . . and that’s when this new cracking began. It appears that every attempt since to repair the cracks has only led to new “delamination” (as the industry calls it).

Sara Barczak of CleanEnergy Footprints provides more detail on the last couple of years:

The Crystal River reactor has been plagued with problems ever since PEF self-managed a steam generation replacement project in September 2009. The replacement project was intended to last 3 months, until PEF informed the Commission that it had cracked the containment structure during the detensioning phase of the project. PEF subsequently announced that the CR3 reactor would be repaired and back in service by the 3rd quarter of 2010…then by the 4th quarter of 2010…and then by the first quarter of 2011. On March 15, 2011 PEF informed the Commission that it had cracked the reactor again during the retensioning process and subsequently told the Commission that it estimated repair costs of $1.3 billion and a return to service in 2014. Shortly thereafter, the Humpty Dumpty Crystal River reactor suffered yet another crack on July 26, 2011.

That July crack was later revealed to be 12-feet long and 4-feet wide–and here, at least when it came to notifying the Nuclear Regulatory Commission, “later” means much later. . . like four months later.

The issue, of course–as anyone with a lifetime crack habit will tell you–is that this all gets very expensive. Not only is there the cost of the repairs. . . and the repairs to the repairs. . . and the repairs to the repairs to the repairs. . . there is the cost of replacing the energy that was supposed to be supplied to PEF customers by the crippled reactor.

And then there is the cost of the new reactors. . . .

Wait, what? Read the rest of this entry →

Subsidize This: US Eyes Tariffs on Chinese Solar Panels, But What Gets Protected?

7:50 am in Uncategorized by Gregg Levine

Inside SolarWorld's Oregon manufacturing plant. (photo: OregonDOT)

While trade is often a bone of contention between the United States and China, this week’s visit by Chinese Vice President Xi Jinping threw the spotlight on one subset of that battle that could have far-reaching effects well in excess of the raw dollar amounts at stake.

At issue is a complaint filed by a solar industry trade group, the Coalition for American Solar Manufacturing, or CASM, asking that the US government impose tariffs on Chinese solar panels. CASM wants the duties for what it claims are unfair subsidies by China that make Chinese solar products substantially cheaper than those offered by many US competitors.

Language in President Obama’s State of the Union, along with comments made during Xi’s visit, would seem to indicate that the federal government is set to weigh in on the side of US solar energy companies in this brewing trade war, and so make a stand for domestic green energy manufacturing and good-paying American jobs.

It seems like a political slam-dunk. The president, after all, campaigned in 2008 on the promise of a growing alternative energy sector, and protecting jobs from being off-shored appears to be the perfect play at a time when unemployment is still unacceptably high. But the reality is, to put it in diplomatic speak, more nuanced.

First, that solar trade group, the Coalition for American Solar Manufacturing, claims to represent seven solar manufacturers, but the only company publicly identified as a CASM member is SolarWorld. SolarWorld is actually not a US company, but a German one, though it does employ about 1,000 at its Hillsboro, Oregon factory.

And even that number is nuanced. SolarWorld is considered the largest producer of solar panels in the US, and so it is used as a sort of case study in this trade dispute. Several stories on the topic note that SolarWorld shuttered its Camarillo, California plant, and with it went 100 jobs. The implication is that Chinese pricing caused the California closure, but a quick step through the Google looking glass will reveal that SolarWorld moved all its manufacturing to Oregon after that state offered it millions of dollars in tax breaks. Read the rest of this entry →

NRC Vogtle Reactor Approval Should Blow Lid Off Nuclear Finance Scam

9:30 am in Uncategorized by Gregg Levine

The Nuclear Regulatory Commission’s Thursday vote to approve the combined construction and operating license application (COLA) for Southern Company’s Plant Vogtle cleared the way for adding two AP1000 nuclear reactors to the two existing units near Augusta, Georgia, but it should also shine a light on the elaborate shell game that masquerades as nuclear-powered electrical generation.

Coming almost exactly two years after the Obama administration granted the project $8.33 billion in federal loan guarantees, the NRC’s OK for the project did not signal a groundbreaking at Vogtle. Thanks to a redefinition of what constitutes construction, drafted under a former NRC commissioner who now works for the nuclear industry, Southern started building on the site long before the AP1000 reactor design was finally approved by the NRC last December. And foundations were poured into the Georgia earth before environmental impact surveys were even required to be filed. So, Thursday’s move did not actually start construction, but it did start the roulette wheel turning on a massive financial gamble where Southern Company is pretty much assured of winning, and US taxpayers and Georgia utility customers are guaranteed to lose.

How much those Americans who don’t happen to own a power company will lose is an issue of some question–a question that the Department of Energy and Southern Company is making very hard to answer.

As this month marks two years since the government agreed to the loan guarantees, it will mark almost as long a time since the Southern Alliance for Clean Energy (SACE) filed a Freedom of Information Act (FOIA) request for the details of the deal the DOE struck with Southern Co., and thus it also marks almost two years of stonewalling by the Obama administration and the energy consortium:

To date, DOE has produced heavily censored documents that have provided little or no information in an effort to frustrate any analysis that would be useful to taxpayers. Based on the limited information produced to date, it appears that the power companies had to put almost no “skin in the game,” only promising to pay a token credit subsidy fee of what could be as little as 0.5 or 1.5 percent of the total loan principal.

Perhaps the once-pledged-to-be-the-most-open-in-history-but-now-proving-to-be-just-as-secretive administration thinks it can hide behind the idea that it is only a guarantee, and, at that, a guarantee of a private business plan, but that would be doubly troubling. Read the rest of this entry →

Nuclear Regulatory Commission Ignores Fukushima, Green-Lights First New Reactors in 34 Years

4:59 pm in Uncategorized by Gregg Levine

Current containment buildings and cooling towers at the Vogtle Electric Generating Plant in Burke County, GA. (photo: NRC)

The Nuclear Regulatory Commission has granted a construction and operating license to Southern Co. for two reactors to be added to its Plant Vogtle facility in Georgia. The OK is the first granted by the US regulator since 1978.

The NRC approved the license over the objections of its chairman, Gregory Jaczko, who wanted the license to stipulate that the units would meet new standards recommended by the agency’s Fukushima Near-Term Task Force (NTTF) report:

“I think this license needed something that ensured that the changes as a result of Fukushima would be implemented,” Jaczko said in an interview after the vote. “It’s like when you go to buy a house and the home inspector identifies things that should be fixed. You don’t go to closing before those things are fixed.”

The NTTF recommendations, geared toward improving safety and preventing another disaster like the one still evolving at Japan’s Fukushima Daiichi nuclear power facility, have still not become official government rules–some are projected to take up to five years to draft and implement–and so, for now, the new reactor construction will get to pretend the Tohoku quake and tsunami, and the resulting core meltdowns and widespread radioactive contamination, never happened.

The Vogtle reactors are of a new (or, let’s call it “new-ish”) design. The AP1000 reactor was just approved by the NRC in December, over the objections of numerous scientists and engineers, who saw claims of innovation insufficient to counter the dangers native to any Pressurized Water Reactor (PWR) design. Upon examination, many of the “improvements” to the AP1000 look more like ways to cut construction costs. Even so, a single new AP1000 is expected to cost anywhere from $8 billion to $14 billion dollars–and, it should be noted, no US nuclear facility has ever come in anywhere close to on time or on budget. The US government has already pledged over $8 billion in federal loan guarantees to cover construction of the Georgia reactors, since without the government backstop, no private financial institutions will invest in such a high-cost, high-risk project. Southern Co. has already spent $4 billion preparing the Vogtle site for the anticipated new construction.

I cannot support this licensing as if Fukushima never happened,” said Gregory Jaczko after the Thursday vote–but thanks to the four other commissioners of his captured agency, licensing as if Fukushima never happened is exactly what the NRC did.