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[en] A Florida Power and Light Co. study and demonstration of automated system control to manage nuclear plant outages and reduce downtime found the system improved reaction to problems and shortened the length of outages for refueling. The use of PROJECT/2 at Turkey Point improved early warning, interdepartmental planning, and support estimates. The study established a reduction in manpower needs, operating costs, and refueling days. It also identified some areas for plant improvements
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 112(10); p. 61-64

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[en] Rate adjustments to accumulate the capital needed to decommission nuclear power plants require complex cost estimates that must be accurate, plant-specific, and defensible. The radioactive nature of the facility makes it more difficult to estimate decommissioning than construction costs. Of the decommissioning methods, safe storage (SAFSTOR) and entombment (ENTOMB) are interim solutions, with dismantlement (DECON) taking place after 30 to 100 years. This analysis shows DECON to be the least expensive over the long term and the most attractive. New technical knowledge and more stringent industry standards call for periodic adjustments of the cost estimates, which now have only a periodic escalation for inflation. This results in understated costs. 3 figures
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 114(2); p. 47-49

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[en] The tax treatment of decommissioning costs is as important a consideration as construction costs. The principles also apply to offshore operations and pipeline systems having a negative salvage value. Estimates place the cost at somewhere between 15 and 100% of construction costs, depending on how the decommissioning is done. It is essential to find an accurate way to project decommissioning costs and to decide how they should be reported for tax purposes. The Internal Revenue Service (IRS) does not plan to apply Section 167, which deals with negative net salvage. Utility customers will ultimately provide the funds, but current IRS rulings count these funds as ordinary income and do not allow matching the additional revenue with decommissioning expenses
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 110(11); p. 46-47

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[en] The author feels that, with electric demand growth of 4.5 to 5% per year expected, it will be only a matter of time before stepping-up the stream of utility capacity additions becomes an important issue. If demand grows 4.5% per year instead of 2.8% as projected by NERC, demand will be 10% higher and peak reserve margins about 12 percentage points lower than envisioned by the NERC projections after five years. By 1988 or 1989, little or no excess capacity will remain, and the utilities will be faced with adding twice as much capacity annually as now planned to avoid service deterioration. As questions about the adequacy of current utility capacity plans and concerns about service quality move toward center stage, the antinuclear movement should find it increasingly difficult to garner the broad support it now enjoys. Capacity represented by any uncompleted nuclear plants will appear increasingly beneficial, and those who do not have strong antinuclear sentiments should become increasingly hesitant about lending support to the movement. Accordingly, electric demand growth in due course can be expected to drain marginal supporters from the antinuclear movement and thereby erode the movement's vitality
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 114(3); p. 40-41

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[en] Almost every electric utility company involved in nuclear plant construction has experienced difficulty as a result of the deteriorating condition of the nuclear industry as a whole. The thrust of a growing number of lawsuits brought against electric companies for alleged violations of federal securities laws is that the companies failed to reveal cost overruns, delays, and the risk of cancellation and write-off of nuclear plants in their annual reports and registration statements. A review of several suits and the disclosure requirements of securities statutes concludes that, although investors have known about utility problems, they have just become aware this year that the entire financial viability of the electric companies is threatened
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 114(10); p. 62-65

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[en] This topic is not exactly novel, but its importance seems to be growing. In Public Utilities Fortnightly, November 8, 1979, George A. Avery offered some thoughtful insights concerning The Costs of Nuclear Accidents and Abandonments in Rate Making, prompted by the Three Mile Island incident. Since then, the regulatory bodies of two states have grappled with TMI's rate-making implications - with the utility in question approaching the brink of bankruptcy. Building upon the earlier Fortnightly contribution which examined nuclear accidents and abandonments, Mr. Robinson considers the principles that should govern regulatory bodies as they consider how to allocate the cost of utility calamities. Using a closed nuclear-generating station in New York as a point of departure, the author suggests that regulators consider the broad implications of their decisions - to both the financial community and the public
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 108(13); p. 17-23

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[en] Criticisms of inaccurate nuclear power plant cost estimates have commonly focused upon what factors have caused actual costs to increase and not upon the engineering cost estimate methodology itself. This article describes two major sources of cost underestimation and suggests corrections for each which can be applied while retaining the traditional engineering methodology in general
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 113(4); p. 28-31

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[en] Escalated cost estimations, delays and cancellations in nuclear construction have caused a preoccupation with the risks of nuclear power plant construction that dominates utility stock investment, overshadowing increased earnings per share and recent growth in production. The issue will be resolved when increased power demand requires new construction, but the effect has so far been to erode the economic advantage of nuclear power and threaten the ability of utilities to get rate increases high enough to cover their costs. Projected delays and cost escalations and their effects must go into an economic appraisal of the investment risks
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 114(1); p. 41-42

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[en] The Westinghouse Electric Corporation announced in September, 1975, that it would not honor commitments to deliver to US and Swedish utilities nearly 65 million pounds of uranium. The fallout from this default is only now beginning to reach electric ratepayers, as the units for which this uranium was committed now come on line and their costs enter the rate base. This article summarizes the events leading to the Westinghouse default, the ensuing litigation, and current circumstances in the uranium market. 1 figure, 1 table
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 115(3); p. 20-25

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[en] The author modifies and extends the argument presented in the September 22, 1983 issue by Richard E. Nellis for using economic depreciation to allocate nuclear power plant costs. The two goals of his model are to charge constant real costs to consumers and to provide a fair return of .125 to investors in each period. The addition of other objectives requires further modification of the model since the schedule of revenues that are deemed to be optimum defines the depreciation schedule. 1 table
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Public Utilities Fortnightly; ISSN 0033-3808;
; v. 113(11); p. 49-50

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