Completed Uprate Makes Grand Gulf World's Largest Boiling Water Reactor

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Unit 1 of the Grand Gulf Nuclear Power Station is now the world's largest boiling water reactor (BWR), following completion of its extended power uprate project this summer, according to Suzanne Anderson, communications specialist with the power plant. Grand Gulf, owned by Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana), increased generating capacity more than 13% to about 1,443 megawatts (MW), the company said. Anderson told Industrial Info the cost was more than $800 million. That works out to about $5,500 per installed new megawatt of generating capacity. The Shaw Group (NYSE:SHAW) (Baton Rouge, Louisiana) provided engineering, procurement and construction services for the uprate.

The uprate, which began in 2010, is part of Entergy's plan to narrow the growing gap between the amount of power it generates and what its customers use, according to the company's website. The company says Grand Gulf's low operating costs make it the most affordable source of electricity in Mississippi. Grand Gulf is located about 25 miles south of Vicksburg, Mississippi. It is the state's only nuclear power plant.

The Grand Gulf uprate project was part of a broad trend of nuclear uprates across the U.S. More than 40 other nuclear power plants were uprated in recent years, as operators decided that adding about 100 MW of new nuclear capacity made more sense than building a new nuclear unit or a new coal unit. The total investment value of these completed uprates exceeds $4.5 billion, according to Industrial Info's North American Power Industry Project Database.

In recent years, nuclear uprate projects have been completed by utility units of:

• Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia)
• DTE Energy Company (NYSE:DTE) (Detroit, Michigan)
• Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina)
• Exelon Corporation (NYSE:EXC) (Chicago, Illinois)
• NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida)
• Southern Company (NYSE:SO) (Atlanta, Georgia)
• Westar Energy Incorporated (NYSE:WR) (Topeka, Kansas)
• Tennessee Valley Authority (Knoxville, Tennessee)
• Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota)

But the cost of nuclear uprates, plus soft electric demand growth and the prospect of a prolonged period of low natural gas prices, will lead to a slowdown in nuclear uprate activity, at least in 2013, predicted Brock Ramey, Industrial Info's director of North American Power Research.

Ramey predicted that nuclear uprate activity will only reach about 200 MW next year, but could pick up in 2014. "Given that it can cost $450 million for a nuclear uprate, and given the cost of building a new gas-fired, combined-cycle unit, utilities that own nuclear and gas-fired generation are having to answer some hard questions from investors and regulators about the wisdom about doing a nuclear uprate versus building a new gas-fired plant," Ramey observed.

Industrial Info is tracking more than $2.4 billion of active U.S. nuclear power uprate projects with various kickoff dates. These scheduled projects include:

• LaSalle County Nuclear Power Station, operated by Exelon
• Cooper Nuclear Power Station, operated by the Nebraska Public Power District (Columbus, Nebraska)
• Peach Bottom Nuclear Power Station, operated by Exelon
• Turkey Point Nuclear Power Station, operated by NextEra Energy
• Kewaunee Nuclear Power Station, operated by Dominion
• Dresden Nuclear Power Station, operated by Exelon

In granting the Grand Gulf uprate, the U.S. Nuclear Regulatory Commission (NRC) (Rockville, Maryland) said: "Entergy could safely increase the reactor's power output primarily by replacing significant portions of several plant systems and components, including the turbine rotors for the reactor feed pumps, power range neutron monitoring system, steam dryer, and the high-pressure turbine. As part of its evaluation, NRC staff reviewed the company's analysis showing the plant's design can accommodate the increased power level."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.