Archive for the ‘Nukes’ Category

A $50 Billion Nuke Power Bomb is Dropping Toward Obama’s Stimulus

by Harvey Wasserman
January 31, 2009

The desperate, dangerous nuclear power industry has dropped a $50 billion stealth bomb meant to irradiate the Obama Stimulus Package.

It comes in the form of a mega-loan guarantee package that would build new reactors Wall Street wouldn’t finance even when it had cash. It will take a healthy dose of citizen action to stop it, so start calling your Senators now.

The vaguely worded bailout-in-advance provision was snuck through the Senate Appropriations Committee in the deep night of January 27. It would provide $50 billion in loan guarantees for “eligible technologies” that would technically include renewable sources and electric transmission. But the handout is clearly directed at nukes and “clean coal.”

The Stimulus Package is explicitly meant to create jobs within the next two years. But according to sources at the Nuclear Regulatory Commission, no new reactors could be licensed for construction within that time. Nor could any new coal plants. And thus the funds in this rider are to “remain available until committed.” That means their “stimulus” might not go into effect for many years.

But the nuclear industry does have the ability to spend large sums of money on “site preparation” and other busy work prior to being licensed. Though the guarantees could technically be used for truly green sources such as wind and solar, the provision’s backers, including Senators Robert Bennett (R-UT) and Thomas Carper (D-DE), have made it clear that this money is meant to go for new reactor construction.

In late 2007, nuclear power’s Congressional Godfather, then-Sen. Pete Domenici (R-NM), stuck a similar $50 billion loan guarantee package into that year’s energy bill. A grassroots uprising, joined by virtually all national environmental organizations, helped defeat the package. Among other things, the fight inspired a music video from Bonnie Raitt, Jackson Browne, Graham Nash, Keb Mo and Ben Harper (www.nukefree.org).

In late 2008 the industry came back again with a blank check package that went down in flames along with the stock market.

Still unable to get private financing, the industry is back yet again. In the interim, the projected cost of building new reactors has soared to more than $10 billion each, and continues to climb steadily. Many of the previous generation of reactors came in hugely over budget. According to the Nuclear Information & Resource Service, one DOE study places the overall average overruns at 207%. But reactor projects such as Seabrook, in New Hampshire, New York’s Shoreham, Pennsylvania’s Beaver Valley, California’s Diablo Canyon, and many others, far exceeded that.

The Congressional Budget Office now predicts that half the nuclear utilities using such a loan program will go into default. Some $18.5 billion in loan guarantees has already been approved, apparently for such use. But its legality is being hotly disputed, and the money has not been distributed by the Department of Energy.

Washington insiders believe this latest attempt at a pre-arranged bailout has again come from Domenici, who has stayed in Washington to lobby for his radioactive benefactors after apparently retiring from the Senate in January.

This guarantee package was not part of the Stimulus Package that passed the House. Its secretive, late night inclusion on the Senate side is reminiscent of how former Vice President Dick Cheney did business for the fossil/nuclear corporations that funded much of the Bush Administration. The reappearance of this kind of back door dealing has not been well received, especially in the House.

Numerous national groups, including the Nuclear Information & Resource Servic (www.nirs.org) are providing sign-ins for sending e-mails to the Senate. They also urge that you call your Senator at 202-224-3121.

Time is fast slipping by for the nuke power industry. As the popularity of renewables and efficiency escalates, the most obvious source of new jobs and prosperity has become truly green technologies. Atomic power has long since been priced out of the market. Only massive federal and ratepayer subsidies could bring it back, to the direct detriment of the revolution in renewables.

Defeating this latest money grab will help drive another nail in the coffin of the 20th century’s most expensive failed technology. It is an essential step toward a truly greenpowered future.

Harvey Wasserman’s SOLARTOPIA! Our Green-Powered Earth, is at www.harveywasserman.com. He edits the NukeFree.org web site, and is senior editor of www.freepress.org, where this article first appeared.

60 Day Clock For Nuclear Opponents Starts Ticking;
Luminant Moves Forward Toward Expansion of Comanche Peak Nuclear Plant
Reactor Design Not Ready for Primetime

For Immediate Release
February 5, 2009

Contacts:
Karen Hadden, Director, SEED Coalition 512-797-8481
Tom “Smitty” Smith, Director, Public Citizen’s Texas Office 512-797-8468

Download press release in pdf format for printing.

AUSTIN, TX The NRC posted notice today on the federal register of the application of Luminant to build two reactors at the Comanche Peak nuclear plant site, southwest of Fort Worth. Citizens now have only 60 days to prepare and present their legal case in opposition.

The reactor design (US-APWR) has not been approved by the NRC and it has never been built anywhere in the world. Mitsubishi Heavy Industries Ltd. submitted the US-Advanced Pressurized Water Reactor (US-APWR) for design certification on December 31, 2007, but the review will take the NRC several years and is not scheduled to be completed until 2011.

“This fast-tracked combined construction and operating license process was rationalized based on the assumption that new reactors would only use pre-certified designs, but the Comanche Peak reactor design is not approved yet. Not only does this put a huge burden on the public to quickly learn what’s happening and become involved within only 60 days, but it also puts pressure on the NRC to rubberstamp designs that should have extra scrutiny,” said Smith.

“The streamlined process is designed to cut citizens out and limit public involvement in the licensing of two reactors that could cost $22 billion before cost overruns,” said Karen Hadden, executive director of the Sustainable Energy and Economic Development (SEED) Coalition. “It makes the fast-tracking of TXU’s coal plants in Texas look slow.”

Comanche Peak Unit One ran ten times over budget and was years late coming online. An untested reactor design increases the likelihood of similar problems occurring again and soaring rate hikes that would result.

“If safety was a real concern, the three processes all occurring simultaneously would be taken one at a time. This rush increases risks of safety oversight and problems from faulty design and construction” said Hadden. “Reactor designs should be analyzed first, and if and when the NRC deems them adequate, a construction license application should be allowed. If the plant has no major construction flaws after completion, then the operating license should be decided.”

This federal notice posting comes as Congress debates whether to give more subsidies to the nuclear industry in the stimulus bill. The US Senate included in its economic stimulus package a handout of $50 billion to the nuclear industry, subsidies in the form of federal loan guarantees. The House did not include these handouts which would “bail in” a fifty year old industry that still can’t stand on its own, remaining dependent on federal subsidies because investors are wary of the huge liability and risks.

The NRC today issued a Federal Register notice regarding the public’s opportunity to request participation in the hearing regarding the Comanche Peak COL. The deadline for filing a request to participate is April 6. Citizens must develop their contentions during this extremely short time period, even though major factors could change, including the design of the reactors.

The notice is online at http://edocket.access.gpo.gov/2009/pdf/E9-2455.pdf

The notice is entitled “Luminant Generation Company LLC; Application for the Comanche Peak Nuclear Power Plant Units 3 and 4; Notice of Order, Hearing, and Opportunity to Petition for Leave to Intervene.” This federal register notice was published as Volume 74, pages 6177-6180.

It posting will also be online at www.NukeFreeTexas.org, where a series of articles detailing the history of the existing Comanche Peak reactors is available.

Comanche Peak Federal Register Notice posting. 2/5/09

###

Nuclear Information and Resource Service produced a briefing paper on the NRC licensing process:

Every atomic power reactor is licensed by the federal Nuclear Regulatory Commission (NRC). By law, the licensing process is open to public participation. In reality, the process is deliberately designed to be difficult to understand and to discourage effective public involvement. Even so, a determined and knowledgeable public can affect nuclear licensing decisions. The purpose of this briefing paper is to provide a basic overview of the licensing process, as a first step toward helping grassroots groups, individuals, and state and local governments determine whether they want to participate in this process.

Download the report here.

What Nuclear Renaissance? Nuclear Power Opposition Strong in First Project

May 16, 2008

Statement by Karen Hadden, Executive Director – SEED Coalition, May 16, 2008

Austin, TX Opposition to investing in more nuclear plants is so strong in San Antonio, Texas, that the mayor and municipally owned CPS Energy were forced to take nuclear power out of the rate hike package. Instead of passing a 5% rate hike, the San Antonio City Council voted to approve only a 3.5% rate hike on May 15, 2008. As a result there is less money for CPS to stealthily apply toward nuclear power.

At the day long San Antonio City Council proceeding, citizens opposing nuclear power called for close scrutiny and more accountability of CPS Energy. Council Members echoed citizen demands for more energy efficiency and renewable power, and utility board members and executives were called on the carpet throughout the day. For too long CPS Energy has been operating in the dark, failing to provide answers to basic questions and calling on the attorney general to defend their  so called  "competitive trade secrets" claims frequently.

CPS Energy refuses to provide cost estimates for the proposed two nuclear reactors, STP 3 & 4, proposed for the existing Matagorda County site. Their would-be partner, NRG Energy, Inc. is seriously underestimating costs, which have risen 30% even before licensing. NRG went bankrupt in 2003 and has never built a nuclear reactor before. Inexperience led to delays and cost overruns for the existing two STP reactors, which ran six times over budget and eight years late.

CPS Energy has been spending money for preliminary design and engineering, the license application and nuclear reactor parts, including a reactor vessel, without a vote by either city council or the citizens.  Speakers questioned what authorization they had for this spending.

The $206 million allocated only by the CPS Board could retrofit over 50,000 homes in San Antonio, lowering utility bills and creating local jobs.

This first nuclear project to move forward in the country in 29 years has hit only roadblocks and opposition so far:

• The license application was so incomplete that the Nuclear Regulatory Commission halted their review. Numerous exemptions were sought to the presumably standardized design.

• SEED Coalition’s petition was successful, and the NRC gave an indefinite suspension of the licensing procedure.

• The City of Austin, a partner in the existing nuclear project, walked away from investing this time. The nuclear reactor portion of the rate hike package had to be removed in order to get any rate hike passed in San Antonio.

• On May 15, 2008, the rate hike was reduced from 5 to 3.5%. The additional rate hikes needed for expensive nuclear power are sure to hit serious resistance as well. Nuclear power could cause the currently low rates in San Antonio to increase by up to 60

###

Nuclear Deal Won’t Stand the Light of Day, Must Be Done in the Dark

May 9, 2008

Contacts Karen Hadden 512-797-8481, SEED Coalition
Loretta Van Coppenolle, 210-492-4620 Alamo Group of the Sierra Club
Eric Lane, 210-732-6564, Citizens’ Environmental Coalition

MEDIA RELEASE
For Immediate Release

Initial work toward first nuclear reactors in decades gets hidden
from the public in San Antonio, Texas

Download this press release in pdf format for printing

Citizen pressure in San Antonio has led to CPS Energy and Mayor Phil Hardberger’s altering of the electric rate hike request, nearly 20% of which was to fund two more nuclear reactors. The modified rate hike is scheduled to be voted on next Thursday, May 15, by the San Antonio City Council.

“This looks to me like a smokescreen,” said Eric Lane, a member of San Antonio’s Citizens’ Energy Coalition. “We are not fooled. The utility is still stealthily pursuing expensive nuclear power. In fact utility representatives have said that without this rate hike, the project can’t move forward. We call on the mayor and city council to halt the nuclear funding now.”

“The shift shows that nuclear power is so unpopular that it had to be removed from the rate hike proposal” said Karen Hadden, director of the Sustainable Energy and Economic Development (SEED) Coalition. “However in order to accurately reflect their big agenda CPS Energy’s strategic plan should be renamed Muddying the Waters and Withholding Information: A Plan to Sneak Nukes Past the Public.”

“We’re happy to have more money going toward efficiency, but taking the nuclear title off the rate hike package won’t stop the utility from aggressively pursuing nuclear power. It just won’t show so clearly,” said Loretta Van Coppenolle, a member of the Citizens’ Energy Coalition and conservation chair of the Alamo Group of the Sierra Club.

Two reactors, STP 3 & 4, are planned for Matagorda County at an existing nuclear site. The Nuclear Regulatory Commission license for these plants is the first in the nation to move forward in 29 years.

The San Antonio municipal utility, CPS Energy, still refuses to reveal their cost estimate for the proposed two reactors, claiming first that they don’t know and secondly that they’re still negotiating. Other states require detailed cost analyses up front. Simple citizen requests for information go unanswered, and the utility got a ruling from the state’s Attorney General that they don’t have to answer some of them. Meanwhile CPS’s would-be partner, NRG, significantly underestimates costs.

“The utility has been asking for a rate hike for nuclear power but refuses to give a cost estimate. Who would put a down payment on a house without knowing how much the house costs? It’s not good business,” said Karen Hadden. “The shift in the rate hike funding is good, but it doesn’t stop CPS Energy from quietly pursuing the nuclear reactors in the dark. The public has never been given a chance to vote. In fact, when citizens tried to attend the CPS Board meeting where an initial $206 million was approved, they had to bang on the door for half an hour before being admitted to the room, after having been promised an opportunity to speak. Will we now see a massive shell game with money shifting all around?” asked Hadden. At least two more rate hikes will follow if the nuclear pursuit continues and former NRC Commissioner Peter Bradford has said that bills could increase 50-60%.

The two existing nuclear reactors at the Matagorda County site ran six times over budget and construction ran eight years late. If the Moody’s Corporate Finance estimate of $16.2 billion for two of the reactors is accurate, similar cost overruns could lead to a final price tag of over $97 billion, enough to make 24 million homes more energy efficient.

The CPS Energy Board recently approved $206 million, presumably for a study of the nuclear project. Now they concede that this money is actually for preliminary design and engineering work. The San Antonio City Council was never asked for its approval.

Purchases of reactor components have begun and a down payment on one reactor vessel has been made. If approved, the rate hike will allow the utility to replenish their coffers. “There is no accountability for CPS Energy and simple, basic questions go unanswered,” said Eric Lane of the Citizens’ Energy Coalition. The Citizens’ Energy Coalition says the nuclear reactors aren’t needed and wants energy efficiency to replace the proposed reactors. The utility’s own 2004 efficiency study found that 1220 MW of energy could readily be reduced through existing programs, but CPS has only pursued energy savings of one tenth that amount. “Improving efficiency could reduce consumers’ bills, make homes and businesses more comfortable, build the local economy and obviate the need for nuclear reactors,” said Van Coppenolle.

Getting investors involved in the project may prove challenging since NRG went bankrupt in 2003 and has recently had poor credit ratings. The City of Austin (Texas) voted against becoming involved in the project. The federal loan guarantees needed for the project may or may not be available with a new Congress. NRG’s place at the head of the line at the Nuclear Regulatory Commission could be called into question as a result of the indefinite suspension in the licensing process by the NRC, a decision made in response to petitions filed by the SEED Coalition and the Southwest Workers’ Union. The indefinite suspension was due to incompleteness of the NRG application.

Experts have been brought into town by citizens’ groups in an attempt to talk with the Mayor, City Council, CPS Energy and various organizations. Dr. Arjun Makhijani analyzed costs of the proposed reactors for the SEED Coalition, and estimated that the STP reactors would cost $12 – $17.5 billion. NRG’s questionably low estimates have risen from $6.6 billion to $9 billion, a nearly 30% increase in only a short period of time, and before the license application has even been completed. Although a supposedly standardized, pre-approved design has been chosen for the Advanced Boiling Water Reactors, numerous exemptions and changes to the design are being sought.

For more information regarding the proposed plants, the license application, petitions filed with the NRC and more, please visit www.NukeFreeTexas.org.

###