USA

Economic Aspects of Nuclear Fuel Reprocessing

admin — Tue, 05 Jun 2007 12:45:26 GMT

MADAM CHAIRWOMAN AND MEMBERS OF THE COMMITTEE: It is an honor to be invited here today to discuss the economic aspects of nuclear fuel reprocessing. Together with colleagues at Harvard University, I recently completed an in-depth study of this issue,1 the results of which were published recently in the journal Nuclear Technology.2 In the course of this study we conducted an exhaustive search for information on historical and projected costs of reprocessing and other nuclear fuel-cycle services. We also examined previous studies of fuelcycle economics by the Nuclear Energy Agency of the Organization of Economic Cooperation and Development (OECD), the governments of France and Japan, the U.S. National Academy of Sciences, the Massachusetts Institute of Technology, and others. Our conclusions are therefore well-grounded, and we have made our results transparent by documenting all of our assumptions and methods and by making spreadsheet versions of our economic models available on the web, so that anyone can reproduce and check our results. With this background, let me turn to the specific questions raised in your letter to me.

DIABLO CANYON POWER PLANT: STEAM GENERATOR REPAIR/REPLACEMENT COST/BENEFIT ANALYSIS

Highrad — Fri, 25 May 2007 12:13:08 GMT

Nuclear power plant steam generator replacement decisions involve roughly $1 B in capital and replacement power costs. SDG has been engaged in helping utilities make this type of decision for the past 20 years. For PG&E, we decided to change our analytic approach to include a Monte Carlo simulation. This paper discusses the results and the strengths and limitations of this analytic approach. Before this case, a California utility decision of this size had never included a Monte Carlo simulation. In contrast, another utility in California filed for steam generator replacement using a base case approach and has had very different results.

Economic Impact Study of the Progress Energy, Inc., Brunswick Nuclear Power Facility

admin — Mon, 14 May 2007 13:03:04 GMT

The Progress Energy, Inc., nuclear facility located in Brunswick County near Southport, North Carolina, has significant positive impacts on the four counties of Brunswick, Columbus, New Hanover, and Pender that comprise State Planning Region O in Southeastern North Carolina. The facility has impacts on gross output or income, employment, payrolls, self-employment income, property income, indirect business taxes, and local property taxes.

Economic Benefits of Millstone Power Station

admin — Mon, 14 May 2007 13:00:43 GMT

The Millstone nuclear power plant in Waterford, Conn., is an integral part of the New London County economy. The plant provides jobs and makes purchases that stimulate the local economy directly and indirectly. The benefits to the area come through jobs, taxes, economic output, labor income, contributions to the local community and other areas. And there are other intangible benefits to the region, such as clean air and low, stable electricity prices. Millstone’s economic impact reaches beyond the local community to the state and even the national level.

Economic Benefits of Indian Point Energy Center

admin — Mon, 14 May 2007 12:58:08 GMT

The Indian Point Energy Center in Buchanan, N.Y., is an integral part of the local economy. The plant provides jobs and makes purchases that stimulate the local economy directly and indirectly. Among the tangible benefits that the plant provides to the area are jobs, taxes, economic output and labor income, together with contributions to the local community. And there are other intangible benefits to the region, such as clean air and low, stable electricity prices. Indian Point’s economic impact reaches beyond the local community to the state and even the national level.

Economic Benefits of Diablo Canyon Power Plant

admin — Mon, 14 May 2007 12:55:37 GMT

Diablo Canyon Power Plant in San Luis Obispo County, California, is an integral part of the local economy. The plant provides jobs and makes purchases that stimulate the local economy directly and indirectly. The benefits to the area include jobs, tax revenues, economic output, labor income and contributions to the local community. And there are other intangible benefits, such as clean air, environmental stewardship and low, stable electricity prices. Diablo Canyon’s economic impact reaches beyond the local community to the state and even the national level.

The total economic impact of Diablo Canyon on San Luis Obispo County for 2002 was $641.9 million. Diablo Canyon’s total impact on the California economy for the same period was $723.7 million and $1 billion for the U.S. economy. The plant’s total economic impact includes direct effects, which comprise the value of electricity produced at the plant, as well as secondary effects resulting from plant operation.

Economic Benefits of Palo Verde Power Plant

admin — Mon, 14 May 2007 12:52:52 GMT

The Palo Verde Nuclear Generating Station in Arizona’s western Maricopa County is an integral part of the county and state economy. The plant provides jobs and makes purchases that stimulate the local economy directly and indirectly. Additional benefits to the area include higher tax revenue, increased labor income and significant charitable contributions to the local community. In addition, there are important intangible benefits, such as clean air, environmental stewardship and stable, affordable electricity prices. According to this study by the Nuclear Energy Institute, Palo Verde’s economic impact reaches beyond the local community to the state and nation.

Economic Benefits of Wolf Creek Generating Station

admin — Mon, 14 May 2007 12:50:03 GMT

Wolf Creek Generating Station in Coffey County, Kan., is an integral part of the local economy. The plant is owned by Kansas City Power & Light Co. (a Great Plains Energy Inc. company), Westar Energy and Kansas Electric Power Cooperative Inc. Wolf Creek Nuclear Operating Corp. operates the facility.

Besides its economic output, the plant provides jobs, labor income and tax revenues. Additionally, there are important intangible benefits, such as clean air, environmental stewardship and stable, affordable electricity prices. According to this study by the Nuclear Energy Institute, Wolf Creek’s economic impact reaches beyond the local community to the state and nation.

Economic Benefits of Salem and Hope Creek Nuclear Generating Stations

admin — Mon, 14 May 2007 12:47:31 GMT

The Salem and Hope Creek nuclear generating stations in Salem County, N.J., are an integral part of the local economy. The plants provide jobs and make purchases that stimulate the local economy directly and indirectly.

Besides their economic output, the plants provide jobs, labor income and tax revenues. Additionally, there are other important benefits, such as charitable giving, clean air, environmental stewardship and stable, affordable electricity prices for consumers. The economic impacts from Salem and Hope Creek reach beyond their local communities to multiple state economies and to the nation, according to this study by the Nuclear Energy Institute.

Economic Benefits of PPL Susquehanna Nuclear Power Plant

admin — Mon, 14 May 2007 12:44:56 GMT

This economic impact study, conducted by the Nuclear Energy Institute1 (NEI), examines the economic, fiscal and other benefits provided by the PPL Susquehanna Nuclear Power Plant, owned and operated by PPL Susquehanna LLC, a subsidiary of PPL Corp. (90 percent), and Allegheny Electric Cooperative Inc. (10 percent).

This study also analyzes the economic and other benefits that the plant provides to Luzerne County, Pennsylvania and the United States. The analysis uses detailed data from PPL Susquehanna to assess these benefits. Although this study focuses primarily on benefits to the local community, it also calculates state and national benefits.

These include direct impacts—such as people employed by the plant, expenditures within the community and corporate tax payments—and indirect impacts, including jobs created indirectly by plant expenditures in the local economy. The study also discusses other benefits provided by the plant, such as reliable, low-cost electricity, the benefits of a clean-air source of electricity and land stewardship.

PPL Susquehanna and NEI cooperated in developing this study. The company provided data on employment, operating expenditures and tax payments, as well as guidance on particular details specific to Luzerne County and the plant.

Economic Benefits of Grand Gulf Nuclear Station

admin — Mon, 14 May 2007 12:41:52 GMT

Grand Gulf Nuclear Station in Claiborne County, Miss., is an integral part of the local economy. The plant, owned by System Energy Resources Inc., an Entergy subsidiary (90 percent), and the South Mississippi Electric Power Association (10 percent), makes purchases that stimulate the local economy in Claiborne and Warren counties, both directly and indirectly. Besides its economic output, the plant provides jobs, labor income, local property tax revenues and community services. And there are other intangible benefits, such as clean air, environmental stewardship and low, stable electricity prices. Grand Gulf’s economic impact reaches beyond the local community to the state and nation.

Economic Benefits of the Duke Power-Operated Nuclear Power Plants

admin — Mon, 14 May 2007 12:40:18 GMT

Nuclear power plants operated by Duke Power in North and South Carolina are an integral part of their local economies. The plants provide jobs and make purchases that stimulate the local economies directly and indirectly. Besides their economic output, the plants provide jobs, labor income and tax revenues. And there are other intangible benefits to the region, such as clean air, environmental stewardship and low, stable electricity prices. The economic impact of the Duke Power-operated nuclear plants reaches beyond their local communities to their respective states and the nation, according to this study by the Nuclear Energy Institute.

Economic Benefits of Three Mile Island Unit 1

admin — Mon, 14 May 2007 12:38:46 GMT

Three Mile Island 1 in Dauphin County, Pennsylvania, is an integral part of the local economy. Owned and operated by AmerGen Energy Co. LLC, a wholly owned subsidiary of Exelon Corp., the plant generates low-cost electricity and makes purchases that have stimulated the local economy since its commercial operation began in 1974.

Besides its economic output, the plant provides jobs, labor income and tax revenue to the area. Additionally, there are important intangible benefits, such as charitable giving, clean air, community involvement, environmental stewardship and stable, affordable electricity prices. Three Mile Island’s economic impact reaches beyond the local community to the state and nation, according to this study by the Nuclear Energy Institute.

Economic Benefits of The Exelon Pennsylvania Nuclear Fleet

admin — Mon, 14 May 2007 12:33:51 GMT

Exelon Corp. owns and operates three nuclear plants in Pennsylvania: Limerick Generating Station in Montgomery County, Peach Bottom Atomic Power Station in York County and Three Mile Island Unit 1 in Dauphin County. All three plants play integral roles in their local and state economies. The plants generate low-cost electricity and make purchases that have stimulated their respective local economies since beginning commercial operation.

Besides economic output, the plants provide jobs, labor income and tax revenues, as well as important intangible benefits, such as environmental stewardship, community involvement, and stable, affordable electricity prices. The economic impact of Exelon’s Pennsylvania nuclear power plants reaches beyond their local communities to the state and nation.

Although this report highlights local economic benefits to each station’s host county, it does not include the specific economic benefits to other counties within 10 miles of each station (see Figure 2-4), some of which are substantial. In addition to Montgomery County, Limerick makes a positive economic impact on Chester, Bucks and Berks counties. At Peach Bottom, other counties reaping benefits include Lancaster and Chester counties in Pennsylvania and Cecil and Harford counties in Maryland. And Three Mile Island provides benefits to Lancaster, Lebanon, Cumberland and York counties. These additional benefits are included in statewide economic results.