Finding nuclear case less compelling, commission caps allowable costs through 2013.

Update courtesy of Utility Regulatory News #4037: Citing last spring’s earthquake in Japan, ongoing economic woes, and faltering Congressional enthusiasm for carbon regulation, the North Carolina Utilities Commission has retreated from its prior showing of strong support for an electric utility’s proposal to further develop and expand its nuclear facilities.

The utility, Duke Energy Carolinas, had announced plans to augment its Lee Nuclear Station in South Carolina. When the project was first proffered, the utility had averred that growing demand, as well as the likelihood of carbon legislation within the foreseeable future, made it prudent to add more nuclear resources to the utility’s generation portfolio. However, given the questions about nuclear safety that had arisen since the Japan earthquake, and noting that Duke Energy has suffered continued load loss as a result of the moribund economy, the commission found that the utility’s present nuclear plans might be too ambitious.

Moreover, the commission pointed out that recent changes in the political composition of Congress made carbon regulation a more distant possibility rather than a nearer-term certainty. Consequently, the commission, while still allowing Duke Energy to proceed with certain aspects of its plan, decided that the project should have a cost cap, which the commission set at $120 million for the four-year period ending December 31, 2013. For the full story, subscribe to URN.

Posted: October 18th, 2011 under carbon regulation, nuclear.
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Court denies effort to compel project to go forward

Update courtesy of Utility Regulatory News #4029: In a case decided on procedural grounds, the U.S. Court of Appeals for the First Circuit has rejected a move to reinstate apparently now-abandoned plans by the U.S. Department of Energy (DOE) to designate the Yucca Mountain site in Nevada as the nation’s repository for spent nuclear fuel.

In 2008, in conformance with Bush administration policies, DOE had submitted an application with the Nuclear Regulatory Commission (NRC) for formal approval of the site. However, the NRC had not yet ruled on the application when President Obama took office. The change in administrations included a change in outlook on the Yucca Mountain project, with DOE seeking to withdraw its application in 2010. But the NRC Licensing Board refused to allow such withdrawal, explaining that Congress had explicitly listed Yucca Mountain as the nuclear waste repository of choice and that DOE did not have the power to substitute its policy decisions for those set forth by Congress. The full NRC then stepped in and said it would review the Licensing Board’s determination. To date, though, the NRC has not acted on either that Licensing Board review or the original underlying DOE application, leading several local governmental authorities from around the country to file suit seeking to force DOE to get the Yucca Mountain project back on track.

The court, however, deemed it premature to hear the suit. It explained that inasmuch as the NRC has not yet taken any “final action” in the matter, the issue is not ripe for appeal. While the court appeared sympathetic to the petitioners’ obvious frustration with the slow pace of development of the long-promised Yucca Mountain facility, the court said that as of now, neither DOE nor the NRC has failed to comply with federal legislative directives and timelines. Thus, the court held, until such time as they miss a deadline or the NRC renders a final agency action, the plaintiffs do not have grounds for appeal. For the full story, subscribe to URN.

Posted: August 25th, 2011 under energy policy, nuclear.
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