North American Nuclear Plants Forming Maintenance Alliances to Cut Costs and Improve Reliability

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Researched by Industrial Info Resources (Sugar Land, Texas)--The South Texas Project Nuclear Generating Station (STP), located in Wadsworth, Texas, about 90 miles southwest of Houston, is part of the trend-setting Utilities Service Alliance (Overland Park, Kansas). The alliance, better known by its acronym, U.S.A., is a nonprofit organization focused on forming partnerships between nuclear utilities and maintenance contractors in order to reduce operating and maintenance costs at nuclear power plants.

The U.S.A. is truly staggering in size, including 14 companies that own or operate 31 nuclear facilities across the U.S. and Canada. Its goal is to have member-vendor companies ready to repair and maintain units whenever needed. This alliance is a prime example of why some strategic alliances are the best option for maximizing plant performance while lowering overall costs. For example, STP's 2006 operating costs, the lowest among all U.S. nuclear facilities at 1.356 cents per kilowatt-hour, were directly correlated to very little downtime and low maintenance expenditures. In addition, U.S.A. yields a $9.39 return on every capital dollar invested. Simply put, fixing things right the first time leads to less maintenance costs in the long run and member-vendors profiting from not having to repair hardware/machinery twice or more.

For decades, many industrial plant owners in North America have selected large contractors (such as GE, Siemens, Bechtel, etc.) to perform maintenance, repair and overhaul work. These large contractors often have the ability to out-bid smaller competitors simply because they have more manpower, technological advantages and vast amounts of expensive hardware; however the plants would not necessarily get the best contractors available to repair equipment. Now, some industries, particularly nuclear power, want the most experienced and reliable workers at their plants. Sometimes smaller companies with more experienced contractors are the best alternative. A utility loses money when a unit is offline for maintenance work. Reliable, knowledgeable and efficient contractors allow utilities to get their nuclear units back online quickly and safely, making the unit more profitable while depreciating at the slowest possible rate. Evidence can be noted in near world records set in downtime during major maintenance projects, such as STP refueling its Unit 1 and replacing its low-pressure turbine in a mere 36 days in fall 2006.

Less downtime by nuclear power plants allows them to reduce the amount of power purchased from other energy providers, saving the consumer money in the long run. Moreover, money spent in upkeep is reduced, as less depreciation is affecting the nuclear units, keeping them in better shape and having a longer life expectancy. If the alliance remains populated with the best contractors available, it will help keep energy costs down for consumers. It should also provide a safer and more efficient operating fleet, which makes nuclear power a better alternative for our ever-increasing energy demands.

The South Texas Project is owned by NRG Texas LLC (Wadsworth) (44%), CPS Energy (San Antonio, Texas) (40%), and Austin Energy (Austin, Texas) (16%). STP's reactors went online in August 1988 and June 1989, and are the sixth- and fourth-youngest, respectively, of the more than 100 operating nationwide.

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