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Released July 12, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Tennessee Valley Authority (TVA) (NYSE:TVE) (Knoxville, Tennessee) finished construction of Unit 2 of the Watts Bar Nuclear Power Station earlier this summer. Early in the morning of May 23, Unit 2's reactor achieved its first sustained nuclear fission reaction. Since then, Unit 2 has been going through power ascension testing, a process expected to last for several more weeks.
Jim Hopson, a TVA spokesman, told Industrial Info that Unit 2 is expected to be in commercial operation "by the end of the summer." Pressed for a specific date, Hopson said, "We're less concerned about a specific date than we are with making sure the power ascension testing is conducted safely." He described power ascension testing as "fine-tuning" the unit's equipment and systems.
"During power ascension testing, we have the option of tripping the unit intentionally" to ensure all systems are operating as they were designed, Hopson continued. The unit has tripped offline twice since it achieved criticality in late May, but neither of those trips was intentional, he added.
TVA paid about $4.7 billion to complete construction of Unit 2, according to Hopson. Construction began in 1972 but was interrupted in 1985 when TVA placed the unit in layup status. It took it out of layup in 2007. All told, he estimated TVA spent $6 billion over 44 years to build the unit. TVA received the license for Unit 2 late last year. For more on Watts Bar Unit 2's construction and licensing, see November 11, 2015, article--TVA Receives License for Watts Bar Unit 2, Startup Scheduled for Early 2016 and September 29, 2011, article--Completion Date Slips for TVA's Watts Bar Unit 2.
Watts Bar Unit 2 is the first nuclear unit in the U.S. to come online since 1996, when Watts Bar Unit 1 started generating electricity. Four new nuclear units remain under construction: Two at the Alvin W. Vogtle Nuclear Power Station in Georgia and two at the Virgil C. Summer Nuclear Power Station in South Carolina. Both have been plagued by construction delays and cost overruns. For more on construction of the Vogtle and Summer unit additions, see January 5, 2016, article--Westinghouse Completes CB&I Nuclear Business Acquisition, Picks Fluor to Manage Vogtle, Summer Power Plant Unit Additions.
While there have been additions to the U.S. nuclear fleet, there have been losses too. Most recent, in late June, Pacific Gas & Electric (NYSE:PCG) (San Francisco, California) announced it would close its two-unit Diablo Canyon Nuclear Power Station when the current licenses expired in 2024 and 2025. And Exelon Corporation (NYSE:EXC) (Chicago, Illinois) has decided to close two of its nuclear plants in Illinois, citing large sustained losses. For more on that issue, see Jun 14, 2016, article--Pepco Deal Closed, Exelon Grows and Shifts its Capital Spending Plan. In recent years, nuclear operators in Wisconsin, Vermont, Massachusetts, New York and Nebraska have opted to close nuclear units in those states, citing unfavorable economics vis-à-vis electricity generated from natural gas. For more on that, see May 24, 2016, article--Omaha Utility Continues Generation Makeover with Plan to Close Nuclear Plant.
Now that construction of Watts Bar Unit 2 is complete, TVA apparently needs fewer employees in its nuclear group. Over the July 4th holiday weekend, TVA informed the media that it would offer all 3,500 employees in its nuclear group an opportunity to apply to a voluntary reduction in force (RIF) program, scheduled to open July 11. Hopson declined to say if TVA has a target for the number of voluntary employee separations from its nuclear group, but he said an involuntary reduction could be implemented.
In its July 2 statement about the voluntary RIF, TVA said: "Some [nuclear group employees] may wish to retire and others may wish to pursue other job opportunities. While it is only fair to allow all team members the chance to participate, we expect only a few will choose to apply... We owe it to the people we serve to continually re-evaluate the way we run our business to ensure we are being cost-effective while continuing to provide safe, reliable power. But, we will do so in a way that preserves the respect our employees deserve."
"We have implemented voluntary RIFs in other groups, as our business evolves," Hobson said. "In one way or another, virtually all business units have gone through this process in recent years. That's because we are required by Congress to provide power at the lowest possible cost." He noted that employment in TVA's power group declined as the agency closed power plants across its seven-state Southeast U.S. service area.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Jim Hopson, a TVA spokesman, told Industrial Info that Unit 2 is expected to be in commercial operation "by the end of the summer." Pressed for a specific date, Hopson said, "We're less concerned about a specific date than we are with making sure the power ascension testing is conducted safely." He described power ascension testing as "fine-tuning" the unit's equipment and systems.
"During power ascension testing, we have the option of tripping the unit intentionally" to ensure all systems are operating as they were designed, Hopson continued. The unit has tripped offline twice since it achieved criticality in late May, but neither of those trips was intentional, he added.
TVA paid about $4.7 billion to complete construction of Unit 2, according to Hopson. Construction began in 1972 but was interrupted in 1985 when TVA placed the unit in layup status. It took it out of layup in 2007. All told, he estimated TVA spent $6 billion over 44 years to build the unit. TVA received the license for Unit 2 late last year. For more on Watts Bar Unit 2's construction and licensing, see November 11, 2015, article--TVA Receives License for Watts Bar Unit 2, Startup Scheduled for Early 2016 and September 29, 2011, article--Completion Date Slips for TVA's Watts Bar Unit 2.
Watts Bar Unit 2 is the first nuclear unit in the U.S. to come online since 1996, when Watts Bar Unit 1 started generating electricity. Four new nuclear units remain under construction: Two at the Alvin W. Vogtle Nuclear Power Station in Georgia and two at the Virgil C. Summer Nuclear Power Station in South Carolina. Both have been plagued by construction delays and cost overruns. For more on construction of the Vogtle and Summer unit additions, see January 5, 2016, article--Westinghouse Completes CB&I Nuclear Business Acquisition, Picks Fluor to Manage Vogtle, Summer Power Plant Unit Additions.
While there have been additions to the U.S. nuclear fleet, there have been losses too. Most recent, in late June, Pacific Gas & Electric (NYSE:PCG) (San Francisco, California) announced it would close its two-unit Diablo Canyon Nuclear Power Station when the current licenses expired in 2024 and 2025. And Exelon Corporation (NYSE:EXC) (Chicago, Illinois) has decided to close two of its nuclear plants in Illinois, citing large sustained losses. For more on that issue, see Jun 14, 2016, article--Pepco Deal Closed, Exelon Grows and Shifts its Capital Spending Plan. In recent years, nuclear operators in Wisconsin, Vermont, Massachusetts, New York and Nebraska have opted to close nuclear units in those states, citing unfavorable economics vis-à-vis electricity generated from natural gas. For more on that, see May 24, 2016, article--Omaha Utility Continues Generation Makeover with Plan to Close Nuclear Plant.
Now that construction of Watts Bar Unit 2 is complete, TVA apparently needs fewer employees in its nuclear group. Over the July 4th holiday weekend, TVA informed the media that it would offer all 3,500 employees in its nuclear group an opportunity to apply to a voluntary reduction in force (RIF) program, scheduled to open July 11. Hopson declined to say if TVA has a target for the number of voluntary employee separations from its nuclear group, but he said an involuntary reduction could be implemented.
In its July 2 statement about the voluntary RIF, TVA said: "Some [nuclear group employees] may wish to retire and others may wish to pursue other job opportunities. While it is only fair to allow all team members the chance to participate, we expect only a few will choose to apply... We owe it to the people we serve to continually re-evaluate the way we run our business to ensure we are being cost-effective while continuing to provide safe, reliable power. But, we will do so in a way that preserves the respect our employees deserve."
"We have implemented voluntary RIFs in other groups, as our business evolves," Hobson said. "In one way or another, virtually all business units have gone through this process in recent years. That's because we are required by Congress to provide power at the lowest possible cost." He noted that employment in TVA's power group declined as the agency closed power plants across its seven-state Southeast U.S. service area.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
