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Released November 21, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A recent study by the Nuclear Energy Institute (NEI) shows that nuclear generation costs in the U.S. have declined about 19% since their peak in 2012, largely due to a steep drop in capital expenditures. This aligns with the decline in new nuclear plant construction and growing preservation of operational plants far beyond their original expiration dates. Industrial Info is tracking more than $78 billion in active U.S. nuclear projects, roughly one-third of which is attributed to projects under construction.
Click on the image at right for a graph detailing the top 10 U.S. states with nuclear power projects.
Since 2013, seven U.S. nuclear reactors have been shut down permanently, and plant operators have announced another 12 would shut down in the future. But 86 of the remaining 99 operating reactors in the U.S. have received 20-year license renewals, according to the NEI, and 92 of the operating reactors have been approved for uprates that have added more than 7,900 megawatts of capacity. "Capital spending on uprates and items necessary for operation beyond 40 years has moderated, as most plants are completing these efforts," the report says.
Capital spending projects under construction at existing U.S. nuclear plants include Tennessee Valley Authority's (NYSE:TVE) (TVA) (Knoxville, Tennessee) $160 million extended power uprate on Unit 1 at the Browns Ferry Power Station in Athens, Alabama. The utility is performing upgrades on a tandem-compound turbine and a boiling water reactor to increase the unit's capacity 15%. Other work includes a steam dryer replacement, upgrades to recirculation motors, modifications to the reactor feed pump turbines, and the installation of higher-horsepower condensate pump motors. For more information, see Industrial Info's project report.
Other capital projects to improve existing plants are scheduled to begin within the next few years, such as TVA's $438 million steam generator replacement on Unit 2 at the Watts Bar Nuclear Power Station in Spring City, Tennessee, and Evergy's (NYSE:EVRG) (Kansas City, Missouri) $30 million dry cask storage installation at the Wolf Creek Nuclear Power Station in Burlington, Kansas. New dry-cask storage pads at Wolf Creek would hold 30 dry-cask canisters to store spent nuclear fuel. For more information, see Industrial Info's reports on the Watts Bar and Wolf Creek projects.
Although maintenance-related projects at U.S. nuclear power plants only account for $3.4 billion of the total spending, they cover 157 of the 201 nuclear projects tracked by Industrial Info. These include several ongoing outages at power plants across the southern U.S., such as the:
More than $20 billion of the $78 billion-plus in active U.S. nuclear projects is attributed to dismantlement and decommissioning projects, which sometimes are planned decades in advance and can take more than 10 years to complete. Edison International's (NYSE:EIX) (Rosemead, California) $2.7 billion dismantlement and decommissioning of the San Onofre Nuclear Generating Station (SONGS) near San Clemente, California, which had once generated 2,140 MW, is probably the best-known case; it is not expected to be completed until 2031, at the earliest. Early next year, PG&E Corporation (NYSE:PCG) (San Francisco, California) expects to wrap up the $287.9 million decommissioning of Unit 3 at the Humboldt Bay Generating Station in Eureka, California, which had once generated 65 MW.
Exelon Corporation (NYSE:EXC) (Chicago, Illinois) is looking at an estimated $1.4 billion decommissioning and dismantlement of the Oyster Creek Nuclear Power Station in Forked River, New Jersey, which it retired in September after nearly 50 years of service. Although licensed to operate until 2029, Exelon decided in 2010 to retire the plant early after revisions to New Jersey's water use rules would have required it to build new roughly $800 million worth of cooling towers, according to World Nuclear News. For more information, see Industrial Info's reports on the SONGS, Humboldt Bay and Oyster Creek projects.
The U.S. nuclear industry's post-2012 cost reductions included a 40.8% reduction in capital expenses, a 17.2% reduction in fuel costs, and an 8.7% drop in operating costs, according to the NEI.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
Click on the image at right for a graph detailing the top 10 U.S. states with nuclear power projects.Since 2013, seven U.S. nuclear reactors have been shut down permanently, and plant operators have announced another 12 would shut down in the future. But 86 of the remaining 99 operating reactors in the U.S. have received 20-year license renewals, according to the NEI, and 92 of the operating reactors have been approved for uprates that have added more than 7,900 megawatts of capacity. "Capital spending on uprates and items necessary for operation beyond 40 years has moderated, as most plants are completing these efforts," the report says.
Capital spending projects under construction at existing U.S. nuclear plants include Tennessee Valley Authority's (NYSE:TVE) (TVA) (Knoxville, Tennessee) $160 million extended power uprate on Unit 1 at the Browns Ferry Power Station in Athens, Alabama. The utility is performing upgrades on a tandem-compound turbine and a boiling water reactor to increase the unit's capacity 15%. Other work includes a steam dryer replacement, upgrades to recirculation motors, modifications to the reactor feed pump turbines, and the installation of higher-horsepower condensate pump motors. For more information, see Industrial Info's project report.
Other capital projects to improve existing plants are scheduled to begin within the next few years, such as TVA's $438 million steam generator replacement on Unit 2 at the Watts Bar Nuclear Power Station in Spring City, Tennessee, and Evergy's (NYSE:EVRG) (Kansas City, Missouri) $30 million dry cask storage installation at the Wolf Creek Nuclear Power Station in Burlington, Kansas. New dry-cask storage pads at Wolf Creek would hold 30 dry-cask canisters to store spent nuclear fuel. For more information, see Industrial Info's reports on the Watts Bar and Wolf Creek projects.
Although maintenance-related projects at U.S. nuclear power plants only account for $3.4 billion of the total spending, they cover 157 of the 201 nuclear projects tracked by Industrial Info. These include several ongoing outages at power plants across the southern U.S., such as the:
- $26 million maintenance of Unit 2 at the Sequoyah Nuclear Power Station in Soddy Daisy, Tennessee, which affects 1,130 MW; see project report
- $25 million maintenance of Unit 2 at the Surry Nuclear Power Station in Surry, Virginia, which affects 865 MW; see project report
- $22.5 million maintenance of Unit 2 at the Palo Verde Nuclear Power Station Tonopah, Arizona, which affects 1,314 MW; see project report
- $21 million maintenance of Unit 1 at the Catawba Nuclear Power Station in York, South Carolina, which affects 1,129 MW; see project report
More than $20 billion of the $78 billion-plus in active U.S. nuclear projects is attributed to dismantlement and decommissioning projects, which sometimes are planned decades in advance and can take more than 10 years to complete. Edison International's (NYSE:EIX) (Rosemead, California) $2.7 billion dismantlement and decommissioning of the San Onofre Nuclear Generating Station (SONGS) near San Clemente, California, which had once generated 2,140 MW, is probably the best-known case; it is not expected to be completed until 2031, at the earliest. Early next year, PG&E Corporation (NYSE:PCG) (San Francisco, California) expects to wrap up the $287.9 million decommissioning of Unit 3 at the Humboldt Bay Generating Station in Eureka, California, which had once generated 65 MW.
Exelon Corporation (NYSE:EXC) (Chicago, Illinois) is looking at an estimated $1.4 billion decommissioning and dismantlement of the Oyster Creek Nuclear Power Station in Forked River, New Jersey, which it retired in September after nearly 50 years of service. Although licensed to operate until 2029, Exelon decided in 2010 to retire the plant early after revisions to New Jersey's water use rules would have required it to build new roughly $800 million worth of cooling towers, according to World Nuclear News. For more information, see Industrial Info's reports on the SONGS, Humboldt Bay and Oyster Creek projects.
The U.S. nuclear industry's post-2012 cost reductions included a 40.8% reduction in capital expenses, a 17.2% reduction in fuel costs, and an 8.7% drop in operating costs, according to the NEI.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
