Uranium Institute News Briefing 14 July 1998

[NB98.28-1] US: The Uranium Producers of America (UPA) and the Oil, Chemical, and Atomic Workers union (OCAW) have voiced concern over issues stemming from the anticipated privatisation of the United States Enrichment Corporation (USEC). Both groups are thought to be considering separate legal action against USEC. The UAP is questioning whether inventories currently in USEC's possession were transferred legally, an issue brought to the forefront lately as estimates by USEC now suggest they may sell close to 80 million lbs U3O8 equivalent into the market by 2005. Separately, the OCAW is said to be concerned by USEC's unwillingness to release documents about its public obligations, requested in a previous Freedom of Information Act inquiry. (PRNewswire, 13 July; see also News Briefing 98.27-10 and 98.26-3)

[NB98.28-2] US utility, GPU, Inc. has been unsuccessful in its attempt to find a buyer for its Oyster Creek plant. According to the company's president and CEO, Fred Hafer, interest was expressed by one potential buyer, but the parties were unable to finalise a deal. GPU's options are now to either close the plant early, in 2000, or continue its operation through the end of its license in 2009. GPU has said it is leaning towards early closure for economic reasons. The company still hopes to sell its Three Mile Island plant. (NEI Infowire, 8 July; see also News Briefing 98.19-1 and 97.40-2)

[NB98.28-3] Australia: WMC Ltd has announced quarterly uranium production, ending 30 June 1998 at 405 t U3O8 (891,000 lbs U3O8), identical to production in the same quarter last year. Meanwhile, the construction of the Olympic Dam processing plant is said to be continuing ahead of its scheduled 31 March 1999 startup. (Ux Weekly, 13 July, p4; see also News Briefing 97.30-1)

[NB98.28-4] US: Wisconsin Public Service Corp. (WPS) has received approval from the state's Public Service Commission to complete an asset swap with Madison Gas and Electric (MGE) which will see WPS increase its share in the Kewaunee nuclear power plant by 17% to 59%. The majority ownership will allow WPS to go ahead with the replacement of Kewaunee's steam generator, which MGE had voted against. The Public Service Commission originally ruled against the asset swap, but reversed its decision under re-negotiated terms. Replacement of the steam generator will begin in the spring of 2000. (FreshFUEL, 13 July, p2; see also News Briefing 98.25-16)

[NB98.28-5] US: New York State Electric and Gas (NYSEG) has amended a lawsuit against Niagara Mohawk, alleging that Niagara breached its fiduciary responsibility by negotiating to sell the Nine Mile-2 nuclear power plant to British Energy plc, without telling the plant's other owners. The original lawsuit was filed by NYSEG in June and was aimed at preventing Niagara Mohawk from transferring ownership of Nine Mile-2 to the newly formed New York Nuclear Operating Co. NYSEG owns 18% of the plant. (Binghamton Press, 10 July; see also News Briefing 98.28-16)

[NB98.28-6] Hungary has halted efforts to privatise its energy sector, which would have included the sale of up to 49% of electricity wholesaler MVM Rt., owner of the Paks Atomeromu nuclear plant. The move towards privatisation had been initiated by the previous Socialist-led government, and has now been halted under the ruling centre-right party, Fidesz. (Ux Weekly, 13 July, p4; see also News Briefing 96.29-8)

[NB98.28-7] US senator Pete Domenici has called on the US and Russia to begin the disposition of larger quantities of surplus plutonium to reduce the threat of diversion and possible creation of new weapons. Senator Domenici expressed concern that the countries were discussing quantities of plutonium to be used in MOX fuel that were too low to quickly reduce the risks involved. Senator Domenici also urged that the rate of disposition be stepped up to ten tonnes per year over a five year period, representing the 50 tonne surplus of material each country has already declared. (NucNet News, 8 July, 269/98; see also News Briefing 98.23-15 and 97.03-11)

[NB98.28-8] US: In one of his last official actions as Energy Secretary, Frederico Pena granted authorisation to five US companies, ABB-Combustion Engineering, General Electric, Raytheon, Stone & Webster, and Sargent & Lundy, to pursue civilian nuclear business with China. Before the companies can go ahead with any exports, however, the US state Department must first receive a guarantee from China that US technology or equipment will be used only for civilian purposes and that it will not be transferred to a third party. The State Department has already requested these guarantees. (SpentFUEL, 13 July, p4; see also News Briefing 98.13-11 and 98.12-14)

[NB98.28-9] Canada: Cyprus' high commissioner to Canada has urged the country to back away from plans to sell nuclear reactors to Turkey. Andros Nicolaides said he believed Turkey plans to use material from any reactor it buys to build an atomic bomb, calling the country a "militarily controlled pseudo-democracy." Nicolaides also cited geological instability in the proposed construction area as a reason to drop out of the bidding. No formal deal to sell reactors has been announced yet, with two other consortiums, from Europe and the United States, also vying for the deal. (The Ottawa Citizen, 10 July; see also News Briefing 98.22-11)

[NB98.28-10] The European Bank for Reconstruction and Development (EBRD) has indicated that it might agree to fund the completion of the Khmelnitsky 2 and Rovno 4 nuclear reactors in Ukraine, but that the country must reform its inefficient electricity market before it will provide the estimated US$1.2 to $1.7 billion. EBRD funding has been subject to the criteria that the project be Ukraine's most economic option for investment in the energy sector. This now appears to be the bank's view based on a new study by consultants Stone and Webster which has concluded that if the plants were completed by 2002, it would be 50% cheaper than other energy options. (Reuters, 10 July; see also News Briefing 98.25-4 and 98.35-5)

[NB98.28-11] Thailand's state power authority has projected that demand for electricity will fall by 2.25% this year, representing the first decline in 35 year. Prior to the economic crisis which has hit the region, demand had been growing at double digit rates. The shift has led a number of independent power suppliers to suspend projects, and it is now thought that there may be no need for additional generating capacity before the year 2000. (Nikkei Weekly, 13 July, p20; see also News Briefing 97.42-9)

[NB98.28-12] Germany's Siemens AG has signed a contract worth DM 300 million (US$165 million) to plan and supply control systems for two Russian-designed VVER-1000's being built in China. Construction began at the Lianungang site earlier this year, with the first of the two units scheduled to go on line in 2004, and the second to follow in 2005. (Power in Asia, 13 July, p22; see also News Briefing 98.01-3 and 95.41-2)

[NB98.28-13] US: Maine Yankee's plans to ship radioactive waste from its shutdown Wiscasset nuclear power plant to Texas for storage was temporarily stalled when a Texas court declared the proposed site unsuitable because of its proximity to a fault line. Voters in Maine, Vermont and Texas had previously approved the agreement to dispose of waste from the facility starting next year, as dismantling of the plant begins. (UPI, 10 July)

[NB98.28-14] Korea's ambitious plans to increase electricity generating capacity, from all sources, by almost 28 000 MW by 2010, is being revised downward given the impact of the financial crisis and unexpected fall in electricity demand. Despite this reduction, national power supplier, Korea Electric Power Co. (KEPCO) is said to be uncomfortable with the narrow electricity reserve margin of 9%, occasionally dipping to as low 5%, currently being produced. The generator's goal remains to raise this to around 18%. (Power in Asia, 13 July, p6; see also News Briefing 98.25-2)

[NB98.28-15] Czech Republic authorities continue to move towards the restructuring and eventual privatisation of the country's power sector. Recently, the Czech trade and industry minister forced national power utility, CEZ, to move towards splitting off the national grid into a separate entity in 1999 and has also chosen advisors to oversee the privatisation of the country's electricity and gas distribution companies. Also in the Czech Republic, the government has decided to hire a team of local and foreign experts to reassess the nuclear power plant project at Temelin and recommend whether construction should be continued, halted or temporarily abandoned. (East European Energy Report, June 1998, p8 and p12; see also News Briefing 98.25-7)

[NB98.28-16] Japan's Electric Utility Industry Council has called for a lowering of the annual growth in electricity demand from the projected 2.1% to 1.2% per annum through 2010, in order to deal with power plant emissions and meet the targets set at last years Kyoto conference on global warming. The Council also recommended that Japan rely more heavily on nuclear power, suggesting it increase targeted levels of generation from nuclear to 45% from 35%. (Modern Power Systems, June 1998; see also News Briefing 98.26-5 and 98.18-4)

Prepared by the Uranium Institute Information Service.
All news and views are those of the publications cited.

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