Released September 29, 2011 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Construction of Unit 2 of the Watts Bar Nuclear Power Station will not be completed until 2013, rather than 2012 as planned, according to the Tennessee Valley Authority (NYSE:TVE) (TVA) (Knoxville, Tennessee). Watts Bar 2 is a 1,180-megawatt (MW) pressurized water reactor (PWR) located in eastern Tennessee. Construction of the unit started in 1972, was suspended in 1988, and resumed in 2007. Unit 2 is about 86% complete, and TVA expects to spend about $2.5 billion finishing it.
The delay in finishing construction is the result of schedule integration issues, worker productivity, an Atomic Safety and Licensing Board (ASLB) hearing on a water-intake issue at Watts Bar 2, and ASLB's nuclear plant safety modifications stemming from the Fukushima accident in Japan, a TVA source told Industrial Info Resources. Schedule integration and worker productivity were the most significant reasons for the delay, he said. Fukushima-related safety modifications are not expected to be a significant factor in the construction delay.
Click on image at right for a photograph of the Watts Bar Nuclear Power Plant.
In a statement, TVA Chief Operating Officer Bill McCollum said the delay at Watts Bar 2 means the agency "will not meet the aggressive 60-month timetable for the project. We are reviewing the overall construction and licensing schedule and will take a deliberate approach that will extend commercial operation of the facility from late 2012 into 2013. There is no substitute for safety and quality in the construction of our nuclear facilities. We have the time and resources to do it right."
"As part of TVA's renewed vision, nuclear is an important part of our energy mix to achieve cleaner air and competitive rates," he added.
McCollum said TVA is working closely with contractors performing much of the construction work at Watts Bar 2 to develop a detailed analysis and timetable for completion of construction. That analysis also will detail what effect the delay will have on the cost to complete Unit 2. He noted that the U.S. Nuclear Regulatory Commission (NRC) (Rockville, Maryland) has not yet issued its final report on Fukushima-related changes for U.S. nuclear operators. Those changes also will affect the cost and completion date for Watts Bar 2. The TVA COO said he doesn't expect safety-related changes will significantly affect the cost to produce electricity at Watts Bar 2.
TVA does not know when this more detailed analysis will be finished. Until that analysis is done, the agency can't determine the length of the construction delay at Watts Bar 2. But a TVA source said nuclear fuel is expected to be loaded at the unit near the end of next year, and the agency plans to complete construction of the generator in 2013.
Bechtel Power Construction (San Francisco, California) is the engineering, procurement and construction (EPC) firm for Watts Bar 2. Siemens Power Generation, a unit of Siemens AG (NYSE:SI) (Munich, Germany), is the design-build firm for the unit. During peak construction period, the Watts Bar 2 completion project will create about 2,300 jobs.
TVA can't operate Watts Bar 2 until it receives an operating license from the NRC. That licensing process is expected to begin in mid-2012 and last for about six months, a TVA source told Industrial Info. The agency already has applied for an operating license for Watts Bar 2. The licensing process runs on a parallel path with construction, so TVA does not have to wait until construction of Watts Bar 2 is finished before applying for an operating license.
TVA announced construction delays at Watts Bar at the same time it announced a change in leadership within its Nuclear Generation Development and Construction (NGDC) group. Ashok Bhatnagar, NGDC's senior vice president since 2007, announced his retirement. He will be replaced by Mike Skaggs, currently site vice president at TVA's Sequoyah Nuclear Plant. Skaggs has extensive nuclear construction experience, including work at TVA's Watts Bar Unit 1 and Browns Ferry Unit 1.
A TVA source denied any connection between Bhatnagar's retirement, Skaggs' promotion and construction delays at Watts Bar 2.
View Plant Report - 1000407
View Project Report - 25002189
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
The delay in finishing construction is the result of schedule integration issues, worker productivity, an Atomic Safety and Licensing Board (ASLB) hearing on a water-intake issue at Watts Bar 2, and ASLB's nuclear plant safety modifications stemming from the Fukushima accident in Japan, a TVA source told Industrial Info Resources. Schedule integration and worker productivity were the most significant reasons for the delay, he said. Fukushima-related safety modifications are not expected to be a significant factor in the construction delay.
Click on image at right for a photograph of the Watts Bar Nuclear Power Plant.In a statement, TVA Chief Operating Officer Bill McCollum said the delay at Watts Bar 2 means the agency "will not meet the aggressive 60-month timetable for the project. We are reviewing the overall construction and licensing schedule and will take a deliberate approach that will extend commercial operation of the facility from late 2012 into 2013. There is no substitute for safety and quality in the construction of our nuclear facilities. We have the time and resources to do it right."
"As part of TVA's renewed vision, nuclear is an important part of our energy mix to achieve cleaner air and competitive rates," he added.
McCollum said TVA is working closely with contractors performing much of the construction work at Watts Bar 2 to develop a detailed analysis and timetable for completion of construction. That analysis also will detail what effect the delay will have on the cost to complete Unit 2. He noted that the U.S. Nuclear Regulatory Commission (NRC) (Rockville, Maryland) has not yet issued its final report on Fukushima-related changes for U.S. nuclear operators. Those changes also will affect the cost and completion date for Watts Bar 2. The TVA COO said he doesn't expect safety-related changes will significantly affect the cost to produce electricity at Watts Bar 2.
TVA does not know when this more detailed analysis will be finished. Until that analysis is done, the agency can't determine the length of the construction delay at Watts Bar 2. But a TVA source said nuclear fuel is expected to be loaded at the unit near the end of next year, and the agency plans to complete construction of the generator in 2013.
Bechtel Power Construction (San Francisco, California) is the engineering, procurement and construction (EPC) firm for Watts Bar 2. Siemens Power Generation, a unit of Siemens AG (NYSE:SI) (Munich, Germany), is the design-build firm for the unit. During peak construction period, the Watts Bar 2 completion project will create about 2,300 jobs.
TVA can't operate Watts Bar 2 until it receives an operating license from the NRC. That licensing process is expected to begin in mid-2012 and last for about six months, a TVA source told Industrial Info. The agency already has applied for an operating license for Watts Bar 2. The licensing process runs on a parallel path with construction, so TVA does not have to wait until construction of Watts Bar 2 is finished before applying for an operating license.
TVA announced construction delays at Watts Bar at the same time it announced a change in leadership within its Nuclear Generation Development and Construction (NGDC) group. Ashok Bhatnagar, NGDC's senior vice president since 2007, announced his retirement. He will be replaced by Mike Skaggs, currently site vice president at TVA's Sequoyah Nuclear Plant. Skaggs has extensive nuclear construction experience, including work at TVA's Watts Bar Unit 1 and Browns Ferry Unit 1.
A TVA source denied any connection between Bhatnagar's retirement, Skaggs' promotion and construction delays at Watts Bar 2.
View Plant Report - 1000407
View Project Report - 25002189
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.
