Subject: Nuclear: Positive Thinking Date: Fri, 06 Mar 1998 22:29:49 -0800 From: J Hughes Newsgroups: sci.energy, misc.industry.utilities.electric, talk.environment BGE TO TAKE THE LICENSE EXTENSION PLUNGE AT NRC Baltimore Gas & Electric took the plunge late Wednesday, announcing plans to replace all four steam generators at its Calvert Cliffs nuclear station and to ask the Nuclear Regulatory Commission for a 20-year extension of its operating licenses at the two-unit plant, which currently will expire in 2014 and 2016. The announcements are important not just for BGE, but for the industry as a whole, since BGE will be the first nuclear utility to seek a license extension from NRC. The utility does not have a firm schedule for submitting its license renewal application, but BGE spokesman Karl Neddenien said it likely will be ready by July. Once it is formally submitted to the commission, he predicted it will take from three to five years for NRC to reach a decision on the request. Given the precedent-setting nature of the application, BGE added that it will coordinate its work closely with industry trade groups and other utilities ``to ensure an effective and stable federal licensing process.'' While being first inevitably means there is bound to be plenty of uncertainty, the company is optimistic NRC will approve the extension. In a statement, Christian Poindexter, BGE chairman and CEO, said that the company's own ``extensive evaluation'' has shown that the plant will remain safe for the additional 20 years. He also stressed that company did not reach these decisions lightly, pointing out that BGE has been studying its options at Calvert Cliffs for the past eight years--finally determining that replacing the steam generators and seeking a license extension is the right answer for the utility. ``The continued safe, reliable operation of Calvert Cliffs is important to our company, our customers and our shareholders,'' he said. ``The benefits provided by Calvert Cliffs during its first 20 years of operation have been enormous and should continue.'' And while the application is the first of its kind, Neddenien pointed out that the company has been working with NRC during the past several years on the license renewal issue. As such, he said, BGE has a good idea of what the commission will be looking for in its review. At the same time the license extension application is before NRC, BGE will be moving ahead with its steam generator replacement plans. Indeed, the license renewal would not even be an issue without replacing the steam generators-- according to company estimates it would have to shut down the two 850-megawatt pressurized water reactors, which were supplied by Combustion Engineering, between 2004 and 2006 because of performance degradation at the plant's existing steam generators. BGE estimates that replacing the four steam generators will cost $300 million. The company has not yet awarded a contract for the refurbishment work, but it is planning to change out the two generators at Unit 1 in 2002 during a scheduled refueling outage and to replace the Unit 2 generators in 2003. To ensure that potential bidders have plenty of lead time to meet these deadlines, BGE plans to put the generator replacement contract out for bid in the near future, said Neddenien. Overall, he added, there are 63 units with steam generators like those at Calvert Cliffs, and 33 already have been replaced or are in the process of being replaced. Asked about the possibility of having to replace the generators a second time should the license extension be granted, Neddenien said only that the company ``expects improved performance and longevity'' from the new steam generators. He also said that of the 33 units that have replaced their steam generators, 20 are newer than those at Calvert Cliffs, adding that this shows BGE knows how to get the most out of its plants. Charles Cruse, BGE vice president for nuclear energy, added that the company expects the new steam generators ``will pay for themselves before the initial 40- year operating period is over, and they will be even more cost-effective with license renewal.'' Or, as Neddenien phrased it, the $300 million replacement cost ``is worth every penny.'' In fact, from both perspectives--license renewal and steam generator replacement-- Calvert Cliffs appears to be a strong candidate. The company says the plant has never operated better, generating a record 13.1 million megawatt- hours of electricity in 1997. At the same time, its industrial safety record remained in the top 10 percent of the industry for the third consecutive year. Even with all this planned investment--indeed, perhaps because of it--the site will remain competitive, Neddenien continued. ``The time is right'' for the company to move ahead, he concluded. <> 03-05-98 at 18:35 EDT, Copyright 1998, King Publishing Group, File: k0305700.2ng Copyright (c) 1998 by INDIVIDUAL, Inc. All rights reserved. Contact EPRIweb Support Center Toll free (888) 377-4932 (EPRIWEB) International (650) 855-1000 c 1997, EPRI.