Wednesday, June 08, 2016

Junk Plant Susquehanna: Crack in Reactor Vessel?

05000387/388...its a 34 year old plant. This is a BWR-4.  

So this the first nuclear plant owned by a private equity firm in the USA. These guys are already cutting employee jobs at Susquehanna. 

Talen Energy to be Acquired by Riverstone

Stockholders to receive $14.00 per share in cash

Transaction has total enterprise value of approximately $5.2 billion

ALLENTOWN, Pa., June 3, 2016 /PRNewswire/ -- Talen Energy Corporation (NYSE: TLN), a competitive energy and power generation company that owns or controls 16,000 megawatts of capacity in eight states, announced today that it has entered into a definitive merger agreement with affiliates of Riverstone Holdings LLC ("Riverstone"), a private investment firm. 

Under terms of the merger agreement, all outstanding shares of Talen Energy common stock not currently owned by Riverstone affiliated entities will be acquired for $14.00 per share in cash. Affiliates of Riverstone currently own approximately 35 percent of the outstanding shares of Talen Energy common stock, which were issued in the June 2015 transaction that established Talen Energy by combining competitive generation assets that had been owned by affiliates of PPL Corporation and affiliates of Riverstone.
The purchase price represents a 56 percent premium to the closing price of $9.00 per share on March 31, 2016, the last trading day before public reports of a potential sale of Talen Energy, and a 101 percent premium to the 60-day volume-weighted average price of $6.95 per share through March 31.
When did they discover the leak. They are supposed to shutdown quickly with a pressure boundary leakage? 
Power Reactor
Event Number: 51983
Facility: SUSQUEHANNA
Region: 1 State: PA
Unit: [1] [ ] [ ]
RX Type: [1] GE-4,[2] GE-4
NRC Notified By: LONNIE CRAWFORD
HQ OPS Officer: STEVE SANDIN
Notification Date: 06/06/2016
Notification Time: 08:13 [ET]
Event Date: 06/06/2016
Event Time: 05:56 [EDT]
Last Update Date: 06/06/2016
Emergency Class: NON EMERGENCY
10 CFR Section:
50.72(b)(2)(i) - PLANT S/D REQD BY TS
50.72(b)(3)(ii)(A) - DEGRADED CONDITION
Person (Organization):
DAN SCHROEDER (R1DO)


UnitSCRAM CodeRX CRITInitial PWRInitial RX ModeCurrent PWRCurrent RX Mode
1NY9Startup8Startup
Event Text
ISOLABLE LEAKAGE IDENTIFIED FROM SEAL WATER LINE WELD INSIDE RCS PRESSURE BOUNDARY

"Susquehanna Unit 1 commenced a manual shutdown on 06/05/2016 for a maintenance outage. At 2202 hours [EDT] on 06/05/2016, operators began reducing power in accordance with plant procedures. At 0352 hours on 06/06/2016, the Main Turbine was tripped with reactor power at approximately 15%.

"The Mode switch was taken to 'STARTUP/HOT STANDBY' (Mode 2) at 0515 hours on 06/06/2016. Manual insertion of control rods was paused as scheduled for entry into the drywell for inspections. There were no ESF actuations.
It is not so bad if it is a water seal leakage?  

"At 0556, the licensee identified leakage from a weld on seal water line piping connected to the 1B reactor recirculation pump seal area. The location is within the reactor recirculation loop isolation valves, therefore is isolable from the reactor vessel. The piping is ASME Class 2 and is reactor coolant pressure boundary. The reactor was in Mode 2 at the time of discovery.

"This event is being reported as a plant shutdown required by technical specifications pursuant to 10CFR50.72(b)(2)(i) and degraded condition pursuant to 10CFR50.72(b)(3)(ii)(A).

"Activities are continuing to achieve cold shutdown."

The licensee informed the Commonwealth of Pennsylvania and the NRC Resident Inspector.
Such incompetence, the pump seal area and the reactor vessel is a large distance apart. 
Susquehanna to complete additional work on Unit 1 
11:18 ET from Susquehanna Nuclear LLCBERWICK, Pennsylvania, June 8, 2016 /PRNewswire/ -- The Susquehanna nuclear power plant in Luzerne County, Pennsylvania made a non-emergency notification to the Nuclear Regulatory Commission (NRC) on Wednesday, June 8, 2016. As was previously reported, Susquehanna Unit 1 was safely shut down on June 6 for planned maintenance to
So this is two seperate leaks? Now it sounds like a instrument nozzle welded inside the reactor vessel leak and it is unisolable.  
identify and repair a small leak inside the containment structure that completely surrounds the reactor. During the investigation, Susquehanna staff identified and reported additional leakage from an instrumentation connection to the reactor vessel. The leak rate is currently measured at two drops per minute. 
Unit 1 remains shut down and the condition is not a safety risk for plant workers or the public. "We have established a dedicated team of nuclear professionals to further
The seal piping fix would be really a easy to fix. A crack in the vessel would be bringing into the plant outside experts to this degree. Brace yourself for the nuclear industry quake if this turns out to be a crack in the reactor vessel.   
evaluate the situation and develop a plan to safely complete repairs, said Robert Franssen, plant general manager. "We will continue to work with the NRC, industry experts and our equipment vendors to understand the issue, evaluate our repair options, complete the necessary work and safely return the unit to service."
Susquehanna Unit 2 continues to operate safely at full rated power. 
The Susquehanna plant, located about seven miles north of Berwick, is jointly owned by Susquehanna Nuclear, LLC, and Allegheny Electric Cooperative Inc., and is operated by Susquehanna Nuclear. For information, visit www.susquehannanuclear.com
Susquehanna Nuclear LLC is one of Talen Energy's generating affiliates. Talen Energy (NYSE: TLN) is one of the largest competitive energy and power generation companies in the United States. Our diverse generating fleet operates in well-developed, structured wholesale power markets. To learn more about us, visit www.talenenergy.com.
Another
 
Unit 1 reactor at Susquehanna nuclear plant shuts down
Officials are investigating the cause of the automatic shutdown Thursday of Unit 1 at Talen Energy Corp.'s Susquehanna nuclear power plant.


Talen spokesman Todd Martin said a cause of the shutdown had not been determined. He also said it was premature to speculate when the unit would return to service.


NRC Spokesman Neil Sheehan said a preliminary review indicated that the reactor tripped due to high pressure levels. During testing on a main steam line, it apparently resulted in an "isolation valve closing," Sheehan said.


Monday, June 06, 2016

New Junk Plant Watts Bar 2 Consequential Trip.

Update: June 7

You get it, about a zillion stories about first startup and very few stories explaining what happened during the trip. Something is fishy? 

These guys are the worst in the industry with how they treat safety complaints from employees. I can't even begin to tell how much more worst this will become if the NRC is perceived as pulling their punches concerning the Unit 2's trip.

Say, if risk perspectives indicate this plant needs a special inspection...would the NRC say this is a special case, we need not do the inspection telegraphing Watt Bar 2 is in serious trouble.  

I'll bet you it was chaotic as hell in the control room. How many people do you think was in the control room when this happened.  


Watts Bar received more safety complaints from employees this year than any other US plant
By Dave Flessner, Chattanooga Times Free Press

April 07, 2016 0
Employees at TVA's Watts Bar nuclear plant near Spring City, Tenn., have made more allegations about safety problems to federal regulators this year than any other nuclear plant in the country, according to a new report from the U.S. Nuclear Regulatory Commission.

The NRC has received six safety concerns from employees at Watts Bar already this year, bringing to 54 the number of such complaints made to regulators in the past three years. Only the Millstone Nuclear Power Station, the biggest power plant in Connecticut, has had more such complaints from its employees since 2012.

More allegations have been substantiated by the NRC in 2016 for Watts Bar than for any other plant. In fact, the only allegation substantiated by the NRC in 2016 for the entire fleet of operating nuclear plants was at Watts Bar.

TVA vows to thaw chilled atmosphere, better handle employee safety concerns

Under regulatory pressure to change the way employee concerns are handled, TVA says it is trying to thaw the often chilled atmosphere for employees to raise safety concerns at its Watts Bar nuclear plant.

TVA's top nuclear officials said Tuesday they have revamped management procedures, coached bosses on how to better treat workers and conducted surveys and employee meetings to better encourage and respond to safety issues raised by workers.

"We recognize that the Watts Bar environment, and specifically in operations, had degraded to a point where some operators felt reluctant to raise issues — we get that and we own that," Mike Balduzzzi, senior vice president at TVA, told nuclear regulators Tuesday. "We firmly believe it is necessary for our employees to feel free to raise nuclear safety issues without fear of retaliation and, in fact, they should expect to be complimented for doing so."

Despite such reassurances, however, a nuclear watchdog group questioned why TVA keeps having problems with employee concerns at its nuclear plants. During a hearing before the Nuclear Regulatory Commission's regional staff in Atlanta, the director of the Union of Concerned Scientists' Nuclear Safety Project said the corrections program outlined by TVA "is troubling in that it shows how blind TVA continues to be" in its culture and response to worker concerns about potential safety problems at nuclear plants. 
"It's disappointing for a company that has gone through a number of safety-conscious work environment problems repeatedly over a number of years can't recognize signs of those problems until someone else calls their attention to it," said David Lochbaum, a nuclear engineer who once worked at the NRC and now studies the industry for the Union of Concerned Scientists. "Since they are having trouble figuring out that they have those problems, there's not much confidence that they will be able to solve problems that are invisible to them."






Upon the plants first start-up ever, they got only up to 12% 18%, then scrammed on a turbine control valve slamming open.


It doesn’t like the NRC properly vetted the plant for power operation?

June 2, 2016: WATTS BAR NUCLEAR PLANT UNIT 2 CONSTRUCTION - NRC INTEGRATED INSPECTION REPORT 05000391/2016604
It is a risk full accident at this power level. It reminds me of Indian Point's leaking steam generator where they cooled down too quickly. It is implicated in the baffle bolt problem. Wonder what the cool down rate was?
TVA and the NRC are doing a terrible job at preparing the public for the rocky road with a new plant startup.  
Could get a lot of steam generator water slamming down the main steam lines?

What is the significance of Unit 1's annulus over pressure. Must be associated with the air filtering (SBGT) system startup.
You got a very fragile 1960s technological age reactor vessel here. With the amazing metallurgical technological advancement in recent times, you’d get a much more safer plant with current technology. Imagine the risk this is to the nuclear industry public relations if the plant is abandoned at this point. Here comes yet another nuclear industry's perfect storm?  
Right, basically upon governor valve slamming open, the steam generator level went low.  The safety ejection must have came about with a low pressurizer level. The Plant safety logic must have thought they had vessel leak. Did anyone check the underwear with all employees leaving the control room?

Wonder what the delay time between when the governor started to fail and then the scram? They must have been preparing to put the turbine on the grid.

Check out the historic power history. A full week almost :) It is a brand new 43 year old plant. First startup can be very troublesome. But this looks abnormal. Sounds like they were having trouble with the turbine or its control system. It is a very erratic startup. The power level here  is taken at midnight, once a day. It probably much more erratic than shown
Watts Bar Unit 2 begins power generation
The  newest reactor at the Watts Bar Nuclear Plant began generating electricity over the weekend.
The Tennessee Valley Authority synced Unit 2 reactor to the grid for the first time Friday and licensed operators have begun an initial test run of generation equipment.
The team is using this run to collect data to be sure generating equipment is prepared for continuous full-power operation later this summer.
"This is another major step in fully integrating Watts Bar Unit 2 as the seventh operating unit in TVA's nuclear fleet," TVA Chief Nuclear Officer Joe Grimes said in a statement. "It is rewarding to see TVA taking the lead on delivering the first new nuclear unit of the 21st century and providing safe, affordable and reliable electricity to those we serve."
The next step is full-plant testing of systems and controls at increasing reactor power levels up to 100 percent power by this summer.
Combined with Watts Bar Unit 1, the plant will supply power to roughly 1.3 million homes in the TVA service area.
May 31  0%
June 1  14%
2  14%
3  18%
4  18%
5  10%


Power ReactorEvent Number: 51982
Facility: WATTS BAR
Region: 2 State: TN
Unit: [ ] [2] [ ]
RX Type: [1] W-4-LP,[2] W-4-LP
NRC Notified By: MICHAEL BOTTORFF
HQ OPS Officer: DONG HWA PARK
Notification Date: 06/05/2016
Notification Time: 16:22 [ET]
Event Date: 06/05/2016
Event Time: 12:27 [EDT]
Last Update Date: 06/05/2016
Emergency Class: NON EMERGENCY
10 CFR Section:
50.72(b)(2)(iv)(A) - ECCS INJECTION
50.72(b)(2)(iv)(B) - RPS ACTUATION - CRITICAL
50.72(b)(3)(iv)(A) - VALID SPECIF SYS ACTUATION
Person (Organization):
OMAR LOPEZ (R2DO)


UnitSCRAM CodeRX CRITInitial PWRInitial RX ModeCurrent PWRCurrent RX Mode
2A/RY13Power Operation0Hot Standby
Event Text
REACTOR TRIP AND ECCS ACTUATION CAUSED BY TURBINE GOVERNOR VALVE FAILURE

"On June 5, 2016 at 1227 Eastern Daylight Time (EDT), Watts Bar Nuclear Plant (WBN) Unit 2 was in MODE 1 at approximately 12.5% power when a safety injection actuation occurred, followed by an automatic reactor protection system (RPS) trip. Preliminary data suggests that the #1 high pressure turbine governor valve failed open causing a steam header pressure rate of decrease safety injection [SI] actuation signal. As designed, the safety injection actuation caused both trains of the shared Emergency Gas Treatment System (EGTS) to align to Unit 2, requiring WBN Unit 1 to enter Technical Specification (TS) LCO 3.0.3 at 1227 [EDT]. Also as designed, Unit 1 annulus pressure momentarily increased, causing operation personnel to enter LCO 3.6.15 Condition B at 1240 [EDT]. At 1242 [EDT], after annulus pressure normalized, operations personnel exited LCO 3.6.15. At 1245 [EDT], Operations personnel secured safety injection and Unit 2 was stabilized in MODE 3 at normal operating pressure and temperature. By 1349 [EDT], Unit 1 Operations personnel had restored both trains of EGTS to standby readiness, and exited TS 3.0.3. No primary safety barriers (RCS, containment and fuel clad) were challenged and no primary or secondary safety or relief valves actuated during the event. The Unit 2 plant trip was uncomplicated and safety equipment operated as expected.

"Unit 2 is stable in Mode 3 at normal operating temperature and pressure, in normal shutdown power alignment. Unit 1 is stable in Mode 1 at 100% power.

"The Senior Resident Inspector has been notified of this event."

The MSIVs are shut with the steam generators (SG) discharging steam using the atmospheric dump valves. There is no primary to secondary leakage. Motor driven AFW pumps are running to maintain SG levels. RCS pressure remained above ECCS (Emergency Core Cooling System) discharge pressure

Thursday, June 02, 2016

Major limitations of ultrasonic testing

Major limitations of ultrasonic testing are:
  • Surface must be accessible
  • Skill training is more extensive that with some other methods
  • Normally requires couplant to promote sound transfer
  • Surface roughness, complex geometries, small parts or exceptionally thin materials are difficult to inspect
  • Coarse grained materials i.e. cast iron are difficult to inspect due to low sound transmission and high signal noise
  • Linear defects oriented parallel to the sound beam go undetected
  • Reference standards are required for equipment calibration
  • Some kinds of noise like hissing and flow noice can throw the detector off
  • austenitic steel because of large grain size is very troublesome

Junk Plant Indian Point Baffle Bolts: Shocking New News

I'll make the case today the NY grid prices are around 25 bucks per megawatt-hour. They need on the far side of 60 bucks to making any profit. In the last two two years across the board, there has been shocking reduction of grid prices across the board in the Northeast. 

My position is all bolt and baffle panel need to be replace before start-up, plus all the supports for the panals. 
06/01/2016 08:42 am ET | Updated 1 day ago
   Roger Witherspoon Journalist

The unprecedented degradation of critical baffle bolts in the Indian Point 2 reactor has triggered an extensive investigation by federal officials seeking to learn why the
Yep, I identified this too. The loose parts monitor is much like the UT detector. You can adjust the sensitivity of this device. If the sensitivity is set to low, then again you get false positives. You enter a multi dollar outage chasing ghost loose parts. Basically in order to save money, they bypass the loose parts monitor. They set the sensitivity so high it basically doesn't work.  
problem was so severe, why systems designed to detect loose metal objects failed, and whether the plant has a specific flaw that could compromise its ageing management program. 
The discovery in March during a routine fuel change that more than 27% of the stainless steel bolts needed to channel cooling water through active nuclear fuel rods were broken, distorted or “missing” has prompted the Nuclear Regulatory Commission to demand answers from Entergy, which owns Indian Point 2&3 in Buchanan, NY. The NRC will first review Entergy’s Licensee Event Report, due within a week, on the degradation problem and regulators insist they will not allow the plant to resume operating until critical questions are answered. 
“The analysis to be performed by Entergy regarding the bolts,” said NRC spokesman Neil Sheehan “will need to demonstrate that the baffle-former plates would remain in place even if a certain number of bolts failed.
This is a change in licencing. They need to do a 50:59.  What does plant design and licencing say as far the acceptable amount of broken baffle bolts. It is a huge reduction of margins from initial licencing. You get it, this will be a paper whipping evaluation without any actually testing.   
And those criteria will include the safety margins. We will review Entergy’s analysis and plans before deciding if the company’s proposed course of action is acceptable. Part of those evaluations will include whether it intends to assess the baffle-former bolts in Indian Point 3 in the near-term or several years from now.” 
An escalating series of problems began with an enhanced inspection of the interior of the Indian Point 2 reactor during a scheduled refueling. New York Attorney General Eric Schneiderman had insisted in a series of legal actions starting in 2007 that Entergy go beyond the visual inspection by a camera lowered into the radioactive coolant and utilize more intensive ultrasonic testing. That revealed that 227 of the 882 bolts, more than one in four, were damaged due to the intensive wear and tear in the interior. That is a failure rate never recorded in any reactor in the world. And loss of the bolts and the directed coolant could lead to a fuel meltdown.

An Expanding Problem 
But as Entergy began the slow process of removing each two-inch long, stainless steel bolt using robotic arms and cameras under 40 feet of water, there were additional developments impacting the NRC’s urgent need to find the reason for the massive failure:
Basically they can dial up or down the sensitivity of the ultrasonic detectors. If they make it too sensitive, then they will have a lot of costly false positives. This will slow down the job.  This is the most shocking news here. We need a clear explanation on the limitations with the UT devices. They have to replace all bolts and baffle panels. We have to know in all inspected plants where all the bolts UT'd. What percentage weren't UT'd I just can't believe it, The UT devices sensitivity were set to low to catch all fatal flaws. This means we need a new UT inspection at all plants whose baffle bolts were inspected. How does the NRC qualify UT devices to catch all fatal flaw and tinny flaws? How do we know the device is accurate.  
• At least four additional bolts that were not detected by the ultrasonic examination broke while work was being done on the identified, degraded bolts. Sheehan said “the ultrasonic testing is not considered to be 100% foolproof.” But its rate of inaccuracy is not known and there is no way to tell what other bolts or critical internal structures may be poised to break inside the reactor. Ultimately, Entergy found it necessary to replace an additional 50 baffle bolts, bringing the total to 277, meaning one in three critical bolts was thought to be fatally degraded. 
• Alarmed by conditions in Indian Point 2, New Jersey’s energy utility, PSEG Co., conducted an ultrasonic scan of its baffle bolts during an outage last month for their Salem 1 reactor. Both Salem 1&2 had previously passed the visual inspections via underwater camera and an ultrasonic scan was not scheduled before 2019. But the scan showed 18 baffle bolts were degraded out of 832, or 2.1%. It was the first time degraded baffle bolts had been found in Salem 1, though the percentage of worn-out bolts was in keeping with industry projections for ageing systems. It added pressure on Entergy to show a circumstance specific to Indian Point 2, and not a design flaw affecting both plants. 
I  was the first person to associate the IP baffle issues with the North Anna water jetting issues.   
• The issue of water jetting, stemming from what had been regarded as an isolated incident in 2014, has now been added to the potential problems facing Indian Point 2 which may need to be addressed in the ongoing ageing management program. In the North Anna nuclear reactor in Virginia, one of the baffles became slightly loose - though the bolts proved to be sound - and the pressurized coolant shot through the gap in an intense, cold water jet and damaged two 12-foot-long fuel rods. The water jet forced the rods to spin, and the zirconium cladding burst, sending 15 radioactive uranium fuel pellets careening throughout the reactor ( http://bit.ly/1XTuCBR ). Actual core damage can be a precursor to a meltdown since the loose fuel cannot be controlled and roaming metal parts can block the cooling system for other fuel assemblies. 
• Increasing attention is being paid to a tube break in one of the Indian Point 2 steam generators which occurred in February, 2000. The rupture sent radioactive coolant surging into the normally “clean loop” that turns the electric generating turbine on the non-nuclear side of the plant. The accident forced the first regional nuclear “alert” and activation of the emergency operations center. The record shows that in the confusion, ConEd workers—then rated by the NRC as the worst in the nation - improperly shut down the reactor by inserting too much cold water in violation of rules designed to protect the reactor and critical systems from thermal shock. The official report of the incident shows the temperature differentials during the improper shutdown were not very large ( http://bit.ly/1WROTZD ) and it was thought there would be no long-term damage. But it marked a clear deviation and threat to the integrity of the baffle bolts. There are indications Entergy researchers have sought evidence that the thermal shock was greater than initially reported. If so, Indian Point 2 had the radioactive equivalent of an incipient cancer at the time it was sold to Entergy in 2000, and it may or may not be curable. 
• Pressure is mounting on the NRC to take over the investigation. The environmental group Friends of the Earth filed an emergency petition with the agency asking the Commissioners order an investigation by an agency Augmented Inspection Team which takes over investigations when the danger of a meltdown increases by a factor of 10. Further, the Commissioners are asked to issue a Confirmatory Action Letter prohibiting the plant from reopening until a root cause analysis shows it is safe to do so, and shutting Indian Point 3 for an intensive examination. Such letters are issued if the risk of a meltdown is increased by a factor of 100. 
“This plant was built in an age when people worshipped nuclear power,” said David Freeman, former president of the New York Power Authority which built and operated Indian Point 3 until it was sold to Entergy in 2001. As head of the NYPA Freeman ordered Indian Point 3 shut for two years in the 1990s because of lax standards and frequent mishaps.
“ConEd even proposed building a nuclear reactor in downtown New York,” he added after the Friends of the Earth press conference. “They never dreamed it, in itself, is as dangerous as a bomb. But you can have a radioactive fire the likes of which you’ve never imagined. 
“We’re asking the NRC to do their job and thoroughly examine every aspect of those plants. Even if Entergy replaces all of the bolts at Indian Point 2, what is the basis for not thinking that something else is way out of whack? You just can’t take risks, and it defies common sense not to shut down Unit 3 and examine it.”

Controlling Nuclear Power 
At the core of the dispute is the ability of Entergy to accurately monitor critical systems it cannot directly see or easily access in one of the world’s most forbidding industrial environments.  
Normal air pressure is about 14 pounds per square inch (psi). The pressure in a typical home water tank is about 35 psi, which is more than enough to fight gravity and send water from the bottom to the top of the home. The water does not reach a boiling point, and one could conceivably stir the water by hand, if desired. 
The heart of a nuclear reactor is the 12-foot-long fuel rod, consisting of about 360 uranium pellets encased in a zirconium sleeve. At the North Anna plant, a pressurized water reactor like Indian Point, some 264 fuel rods are grouped into “assemblies”, each containing boron control rods to slow down or speed up the fission process. There are 157 of these assemblies strategically placed inside the huge reactor core, according to Dominion Power Co. spokesman Richard Zuercher. 

If the fission process is uncontrolled, the uranium pellets will heat up to the point where it becomes a molten slag and melts through the steel reactor. So control of the temperature around the assemblies, and the flow through the assemblies is critical to safely operating the system that is, essentially a controlled chemical fire. 

The operating temperature of a reactor is about 700 degrees Fahrenheit, and the pressure is maintained at about 2,250 psi in order to keep the 300,000 gallons of superheated water in a liquid state. It is not a jumbo home water heater, and at that enormous pressure the water in the reactor core most resembles superheated, roiling concrete.
It is critical that there be a constant flow of water to avoid buildups of hot pockets around individual fuel rods. That is the function of the baffle former bolts, which hold a series of 13-foot baffles that line the core of the reactor and surround the fuel assemblies. A series of pumps, operating at even higher pressures, force some 300,000 gallons per minute of cooler water to flow down between the baffles and the wall of the reactor and come up through a series of openings and flow through the fuel assemblies to keep them in the optimal operating temperature. 

The roiling, highly radioactive reactor water is pumped out of the reactor and into the steam generator, a massive heat exchanger featuring 3,260 U-shaped, thin steel tubes (http://bit.ly/RSxaiw ), and then flows back to the reactor. To avoid thermal stress, the NRC operating regulations dictate that the temperature difference between the “hot leg” coming out of the reactor and the “cool leg” returning to the reactor can’t exceed 72 degrees F. And when cooling down the reactor, the temperature can’t drop more than 100 degrees per hour. 
The reactor water provides the first part of a 3-step process of generating electricity. The second step involves a “clean loop” of water which is forced over the steam generator tubes containing the superhot reactor water, and quickly turns to steam. This blows out to an adjacent building and through fans turning the massive, 40-ton turbine which generates electricity. The steam then passes through a reverse heat exchanger featuring cool water from the Hudson River. The steam condenses into hot water and is routed back to the steam generator to be reheated and repeat the process. The hot river water is dumped back into the Hudson, a process that kills more than a billion fish annually. 

It is a system that is intricately designed, infinitely interwoven, and extremely efficient. There are sensors to monitor temperature changes in each fuel bundle; X-ray sensors to detect wear and tear on steam tubes; a Metal Impact Monitoring System to detect loose metal parts which can damage fuel rods or block a coolant stream from properly circulating; and a Reactor Coolant System Activity monitor to detect cracks in fuel rods. 
In 2000 this efficient system went horribly wrong. 
The Nuclear Emergency 
ConEd saved money by ignoring repairs. By Feb. 15,2000, there were more than 15,000 items on its “corrective action list” of major or minor items which had broken or malfunctioned and needed repair or replacement. The NRC”s Augmented Inspection Ream report ( http://bit.ly/1WROTZD ) of April 28, 2000 notes: “the number and duration of the equipment problems reflected weaknesses in engineering, corrective action processes, and operational support at the Station. The Licensee’s response to a number of equipment problems identified during the event reflected an acceptance of ‘working around’ rather than fixing the problem.” 
Indeed, workers in one area had to walk around holding a broom in front of them to detect thin jets of steam leaking from high pressure pipes that were hard to see but could cut through a person like a laser. If the broom suddenly shredded the workers knew where a leak was.

Emails To NY DPS Concerning Junk Plant Indian Point

Showing the DPS my credentials. 

1)
mailto:steamshovel2002@yahoo.com 
To: brandon.goodrich@dps.ny.gov

Mr. Brandon.

It was a nice talk with you today. I was a little nervous talking to you and a bit hyped up. 
Here are my talking points concerning our conversation. I was very please how quickly the DUP responded to my concern. You never know what information they will release from this...how big it will be. This applies to many other plants. We are talking about hundred of millions of dollars. 
"Indian Point: It's Core Components Highly Irradiated Differential Of Expansion, Stupid" 
Feb 04, 2016Victor M. McCreeExecutive Director for OperationsU.S. Nuclear Regulatory CommissionWashington, DC 20555-0001 
SUBJECT: Runaway Main Steam Safety Valve (MSSV) Tech Spec lift Setting Failures at Indian Point since 2009. 
Dear Mr. McCree, 
Why is the NRC sleeping at the switch? I request a 2.206 petition at Indian Point. 
Why has there been an astonishing increase in Main Steam Safety Valve Setpoint drift testing failures beginning in 2009? There seems to be none before 2009. Why did these failure begin in 2009…considering all corrective action and processes at the site. It continues today unabated. 
It is like they caught some mysterious disease and there is no cure. These valves being opened cool the core and control steam generator pressure.

Shearson Harris mysterious began having similar failures. Two valves fail in 2013 and in the most current LER five valves failed. They have a similar clean record before 2013. Why has this mysterious problem popped up from nowhere and the failure rate has been drastically increased as time goes on. Why can’t these two plants get control of this problem? 
There seems to be vibrations issues. An odd assortment of internal parts degradations seems to be the culprit. What new has changed?

What new has changed in both these plants to cause the internal parts to fail? I am particularly irked by pressurizer safety internal coil or spring being stretched. It reminds of the test stand damage seen a Pilgrim before installation. It is known, when most of these guys fails lift setpoint and out of federal tolerance, they just adjust the setting to acceptable Tech Spec limits. They don’t do any further inspection or proactive or preventative maintenance. No doubt this in happens at many plants. 
What is the concern to me the most, is there is no new “Information notices” on SRVs, MSSVs and pressurizer valves degradation or failure? We know the LERs really only capture-report on a small proportion of the valve problems. Your industry wide trends and information is not being kept up to date on these components. Your NRC notices are grossly out of date (most of them a decade out of date or more) on the components and these licensees are constantly referencing these grossly out of date notices in the current LERs.

You would think a nuclear plant having problems like this would go the market to get a better reliable design and up to date components new. Is Indian Point have problems with component replacement and can they buy sufficient valve new internals? 
1) Request an immediate special inspection on the magnitude of the valves involved anthe constant reoccurrence of these failures. These guys have constantly said in each LER the problem is solved. If they can’t keep these valves operable, then both plants shouldn’t be operating. I am sure NY State would agree with me. 
2) Please create a new NRC Information notice on the failures of the valve and the organization. 
3) I request Indian Point immediately eradicate any problems with their MSSV up to and Including a shutdown. They are controlled by technical specifications.
.The involved LERs at Indian Point below. Why did it start in 2009…what has changed? 
LER 2015-002-01LER 2012-003-02LER 2012-005-01LER 2011-004-00LER 2010-002-00LER 2009-002-00 
I suspect they will have more MSSV unreliability issues. 
Will you let me know if there are new LERS? 
The NRC response to me: 
http://steamshovel2002.blogspot.com/2016/03/nrc-2206-response-junk-safety-valves-at.html 
I was heavily involved with the Pilgrim’s unsafe Safety Relief Valves, the 2015 plant trip…the resultant special inspection and Entergy shutting the plant in 2019.  I was on the SRV problem in 2013 and it is in the record. 
“NRC: Proof Iinstigated The 2014 Christmas River Bend plant Scram Special Inspection” 
This is ridiculous. 
The aim of my game is to fix problems early and anticipate then, not fix big costly problems re-activity.

Please read my comments on the NRC blog:  
An Outage Twist: Degraded bolts at New York Nuclear Plant Warrant Attention
An Outage Twist: Degraded bolts at New York Nuclear Plant Warrant Attention
Neil Sheehan Public Affairs Officer Region I When the Indian Point Unit 2 nuclear power plant entered a refuelin...

Did I mention I was a licensed operator at Vermont Yankee? 
North Anna had Baffle Jetting in 2014. The edges of the baffle plates widened. Basically caused by the same phenomena as Indian Point. The jetting damaged fuel pins leading to a large release radioactively in the coolant, but no offsite release. Before the fuel pins leaks, they have wear marks on the pins from slowly spinning in place by the water jet. This can be seen under close inspection. 
I have already given you way too much information. 
I apologized  to you for that.


Sincerely,
Mike MulliganHinsdale, NHHome 16033368320Cell 16032094206
Call or email me anytime?
2)

To: brandon.goodrich@dps.ny.gov 
May 14 at 9:57 AM 
I went over the last SG report coming from IP 2. They say they discovered some foreign debris in the SG, but don't accurately (nothing) detail what the new debris is on the steam side. This is highly suspicious. Most plants detail the discovered debris in this report. You need to know if components are spitting off metallic parts from the rest of the plant and threatening the steam generator tubes. With debris, you need to hunt down where the metal came from. It is important to put it in a trend, is the threat to the tubes increasing or decreasing over time. Read up on their last SG tube rupture event at the site. Did baffle debris end up in the steam side of the SG? Was this a cover-up? This is a regulatory failure, in that the NRC should have forced IP to publically document in detail all SG debris in the refueling outage tech spec mandated report.

You need get the NRC to list and describe all SG debris in their upcoming inspection report for the last ten years. I believe its in IP's secret internal reports? The NRC knows where its at.   
Mike MulliganHinsdale, NH
3)
To : brandon.goodrich@dps.ny.gov
May 4 at 5:51 PM
How are these guys at IP? I know IP has intensive relicensing contention core inspections. See attachment. It's the Cook root cause on the degradation. I hope the state is going to pry the RCA on the baffle bolt issue from IP.

Clevis Insert Bolts
" Clevis Dowel Pins
* LRSS Lug Weld
* BMI Nozzles and Welds

Can you even imagine the  plant vulnerability with the worst case degradation on the above components and the worst case degradation of the baffle plates? I like to see the risk perspective numbers on that baby.

It is a accident never conceived by anyone before. Sound familiar? Thank you UCS!  

 


A Huge Intensification of the Nuclear Industry's Historic Financial Problems.

We are waiting for somebody to say boo...where the utilities start to throw (cascade)overboard the regulated plants. These regulated plants are highly susceptible to the politicians. These guys are grossly not profitable. 

I think we are unprecedented times with these financial troubles silencing their employees.   

Basically three plants going dead. 

Exelon Makes Good on Threat—Quad Cities and Clinton Nuclear Plants to Close

Given the lack of progress on Illinois energy legislation, Exelon Corp. announced on June 2 that it would begin taking steps to permanently shut down its Quad Cities and Clinton nuclear power plants. 
In a statement, the company said Clinton would close on June 1, 2017, and that Quad Cities would follow exactly one year later. The two facilities have long been rumored to be on the chopping block due to economic struggles. 
“This is an extremely difficult day for the 1,500 employees who operate these plants safely and reliably every day, and the communities that depend on them for support,” said Chris Crane, Exelon president and CEO. “We have worked for several years to find a sustainable path forward in consultation with federal regulators, market operators, state policymakers, plant community leaders, labor and business leaders, as well as environmental groups and other stakeholders. Unfortunately, legislation was not passed, and now we are forced to retire the plants.” 
The two stations are said to have lost a combined $800 million during the past seven years, despite being two of Exelon’s best-performing plants. The news comes on the heels of the Clinton station setting a new U.S. record for the shortest refueling outage for a boiling water reactor. It returned to full power on May 30 after only 11 days offline (Browns Ferry Unit 3 had held the record previously at 14.5 days). 
Although the Illinois legislative session has not ended, Exelon said that the path forward for the “Next Generation Energy Plan” legislation—which included a “Zero Emission Standard” that would make Illinois one of the first states to recognize the zero-carbon benefits of nuclear power—is not clear. As a result, Exelon has begun taking necessary steps to shut down the two nuclear plants. The steps include:
  • Making permanent shutdown notifications to the Nuclear Regulatory Commission within 30 days.
  • Terminating capital investment projects required for long-term operation of Clinton and Quad Cities.
  • Immediately taking one-time charges of $150 million to $200 million for 2016, and accelerating approximately $2 billion in depreciation and amortization through the announced shutdown dates.
  • Cancelling fuel purchases and outage planning.
The company said it has and will continue to brief the Governor’s office, legislative leaders, the Illinois Commerce Commission, Illinois Environmental Protection Agency, Illinois Power Agency, other relevant state agencies, and host community leaders, on developments as it executes the shutdown plan. 
“We are deeply grateful for the broad support we received from policymakers, plant community leaders, labor officials and business leaders who spoke out to help keep the plants operating,” Crane said. “We wish the outcome would have been different, and we appreciate all the support this effort has received

Sunday, May 29, 2016

Junk OPPD, Fort Calhoun and NRC: The Shut Down

I look at it like this. Lets say all the humans in these organizations are free agents. They are all loaded with the same histories, experiences, education and flaws like the first Fort Calhoun. Lets say we have 1000 identical Fort Calhouns and 1000 crews. We are thinking about system analysis. Lets say the starting point is Jan 1, 2006. If all these Fort Calhouns were reset to Jan 1, 2006, then allowed to play through to today, would they all have a decade of identical histories? You better be thinking how unique all our histories are.

I think there would be a continue of outcomes. Some worst and some better. Maybe one outcome would end with Fort Calhoun lasting safety another 20 years. I bet you there would maybe be 20 meltdowns, maybe 50 red findings, maybe 100 would shutdown before the flooding.

Its like if we had a national fleet 1000 plants. Basically we are talking about are global organizational rules and outside pressures that sets this up.  Do you see what a threat this type plant is with 20 meltdowns. It would be a industry ending event every two years. This is a way, way, way complex system and very few of industry and governmental officials don't understand complex systems.   

This is a hell of a risky threat to our nation. Fukushima accident is thought as a much more infrequent accident.

This is the limitation of our news media today. They are only able to portray a very thin slice of the risk to us. A phrase in this document is relevant to the write up of this new article. Is the newspaper reporters guilty of this also: leaders functioning more in a tactical rather than strategic manner. I am saying the reporters are writing the article up tactically in the events and people of the shutdown event (today), instead of being able to explain it in a holistic way why this plant began failing in 2006 to today.

Honestly, I think it went this way. Its the business philosophy of the least worst choice. You have a mandatory and severe budget restrictions on this plant. All of the stupidity of the senior officials were playing this game. Do I have the money to fix it right now or do I have to half ass fix now?   

The got you 99% of the way to understand what happened here. What changed in and around 2006?

You get it, cheap coal has bailed out OPPD of accountability for decades. I bet you outside Fort Calhoun they are a terrible dysfunction small utility. 

I actually think the dual and three unit plants are more financially vulnerable than the single unit plants. It is like a hungry wolf pack is circling the nuclear industry. The industry is throwing their children out to the wolf pack so they can escape. When the wolfs are busy tearing their children apart they can escape. The whole industry is bankrupt as it sits now. The titans of the industry are throwing ten or twenty plants as a attention getting tactic to the wolves hoping the legislator will heavenly subsidized the larger bankrupt facility. Remember we are going to see 20 to 40 plant declines into permanent shutdowns in the next few years. It is important we understand a good plant permanent shutdown from a chaotic pertinent plant shutdown. Oyster Creek is a example of a chaotic shutdown.   

I wouldn't subsidize a old facility. You are throwing money away. I would think about a smart subsidy for the new build.        
    
Fort Calhoun Flooding Root Cause Analysis  
A. EXECUTIVE SUMMARY: 
Event Date: May 11, 2012 
Executive Sponsor: W. Gary Gates
Summary of Events: 
Fort Calhoun Station has a history of organizational effectiveness weaknesses as indicated by The Nuclear Regulatory Commission has identified organizational effectiveness issues in Problem Identification and Resolution (PI&R) inspections conducted in 2007, 2009 and 2011. A Pl&R Root Cause Analysis (CR2011~10135) identified that flawed mental models, misguided beliefs, and misplaced values have driven, influenced and permitted the misalignment of organizational behaviors. The station has shown an adverse regulatory trend of violations beginning in 2007, entering action matrix column 3 (95003) in October 2010, then action matrix column 4 in July 2011, to eventually Inspection Manual Chapter 0350 in December 2011.
A root cause analysis team was formed to evaluate the causes of this organizational ineffectiveness’. The team conducted a root cause analysis on organizational effectiveness related events that occurred from 2007 through May 2012. The team also reviewed the! I [Band Strategic Talent Solutions (STS) Executive Leadership Assessment summary to validate their findings.
Condition Report 20112-03986 was initiated when a team of station management personnel and external consultants determined that the Fort Calhoun Station’s organizational effectiveness is inadequate. 
The team characterized the issue as follows:
"Senior leaders and managers are not providing the necessary leadership to improve organizational performance. Additionally, leadership has failed to be intrusive, set the right priorities, and holds personnel accountable and has not understood major processes or issues affecting morale. As a result, timeliness and thoroughness of resolution of important issues has been lacking and station performance has declined significantly." 
The RCA team subsequently developed a problem statement that, "The Fort Calhoun Station (FCS) organization has been ineffective in meeting regulatory and industry standards, resulting in untimely and ineffective resolution of issues contributing to a significant decline in station performance." 
This organizational effectiveness weakness has had a direct negative impact on nuclear, radiological, and industrial safety and other business aspects. Examples include organizational effectiveness issues identified in the Yellow external flooding finding, the MQ contractor failure White NRC identified finding, and the 184A Bus fire NRC Red finding. Industrial safety has been identified by :__-___::l as lacking sufficient organizational oversight and that station oversight did not perform adequate organizational challenging of radiological planning for outages. 
The analysis identified that there has been inadequate direction, prioritization and oversight from the "board of directors” down to the station leaders. The team identified three root causes and three Contributing causes. Less than adequate corporate and station governance and oversight; leaders functioning more in a tactical rather than strategic manner and not valuing accountability; and lack of thorough policy implementation as root causes. Three policies were determined to be contributing causes base on the fact that both the policy was weak and needed improving, as well as proper implementation. Those three policies included the stations Nuclear Safety policy, Change Management policy, and Communications policy. All three of these policies were identified in theThe extent of condition was based on the problem statement, interviews conducted, documents reviewed and the analytical tools used to assess FCS performance in the area of Organizational Effectiveness. An extent of condition exists: The team concluded the organizational effectiveness deficiencies reviewed by this causal analysis extend to those programs, processes, and departments throughout the organization.
There all liars and thieves!!!
As natural gas prices plummeted, OPPD leaders clung to expensive, inefficient Fort Calhoun 

Posted: Sunday, May 29, 2016 12:15 am | Updated: 8:56 am, Sun May 29, 2016.

By Cole Epley and Russell Hubbard / World-Herald staff writers

The Omaha World-Herald
Two months before Missouri River floodwaters in 2011 threatened the Omaha Public Power District’s Fort Calhoun nuclear power plant, executives at a similar-size nuclear plant in Wisconsin faced their own problem: what to do with a facility they said no longer made economic sense to operate. The leaders at Dominion Resources, which operated the Kewaunee Power Station, said in April 2011 they were throwing in the towel — that the plant outside of Green Bay would be put on the auction block. There were no takers. Dominion announced plans to permanently close Kewaunee in October 2012. “This decision was based purely on economics,” Dominion chief Thomas Farrell said then. 
At the same time, OPPD leaders were sinking nearly $300 million into Fort Calhoun to reopen the plant in December 2013. 
Now the Omaha utility says it has decided its nuclear plant is too expensive to operate compared with electricity fueled by natural gas and wind power. Leaders want it shut by the end of the year. 
What did operators of the Wisconsin plant see in 2011, even as OPPD pushed full-steam ahead to keep the Fort Calhoun plant online? 
A nationwide boom in natural gas, fueled by fracking, led to the decision in Wisconsin, its owners said. That boom would push down the price of power generated from natural gas — and even back in 2011, experts were saying prices for natural gas would only keep falling. They were nearly $15 a unit in 2005; Friday, they traded at $1.98. 
The boom made nuclear — especially that generated at smaller plants, such as Kewaunee and Fort Calhoun — less attractive, with its relatively high-cost, labor-intensive safety standards. And it made coal — under fire for being dirty — less attractive, too. 
Wind power, with the help of government subsidies, also was on the horizon in a big way; next door in Iowa, Berkshire Hathaway-owned MidAmerican Energy put 1,285 megawatts of wind-fueled electricity online between 2004 and 2010 with turbine farms across the state — nearly three times the power generated by Fort Calhoun. 
Whatever was going on in the OPPD boardroom, it wasn’t in sync with mainstream thinking that was informing much of the U.S. energy market at the time. 
Current and former OPPD executives said last week they made the right decision to resuscitate the nuclear plant outside Omaha. It went offline for a routine refueling in April 2011 but didn’t come back until December 2013 — knocked out by the flood and a subsequent fire and slew of federal safety violations. 
Gary Gates, who was OPPD’s chief executive at the time of the Calhoun crisis, said the company and the board made the decision to keep the plant open based on regimented, objective analyses of the power market. 
For example, natural gas prices in 2011 were double their current level, he said. And uncertainty surrounding federal environmental regulations meant emission-free nuclear was an important part of the OPPD energy mix, Gates said. 
He said there wasn’t any way to know back then that energy generated from other sources — the natural gas from the fracking revolution and the wind from Mother Nature — would become so cheap when compared with nuclear. 
“We always had healthy, vigorous discussions, but my sense was always that we had unanimous support for continued operations” among board members when it came to Fort Calhoun, he told The World-Herald last week. 
The OPPD board of directors never voted on the question of whether to give up on the plant and power it down permanently during the period of 2011 through 2013.
OPPD did model a future without Fort Calhoun, its leaders said last week when questioned by The World-Herald. The utility commissioned a study by outside consulting firm Black & Veatch of Overland Park, Kansas. The World-Herald requested a copy of the study, which OPPD had not shared publicly, saying it was “held confidential due to competitive information, impacted contracts and personnel matters.” 
On Friday, the utility gave the newspaper a PowerPoint summary of the report. The summary was dated Oct. 30, 2013, which is when an OPPD spokeswoman said it was presented to the utility’s board of directors. 
The analysis said it would be cheaper to forgo restarting Calhoun and turn to other forms of energy. “All results indicate the replacement options are more economic than operating Fort Calhoun Station,” it said. 
But on Oct. 29, 2013 — the day before the board was presented with the summary — Fort Calhoun’s reactor had been fired up, part of a warming-up period to prepare for coming fully online in December of that year. 
The World-Herald over the past two weeks contacted the eight current and three former OPPD board members — everyone except for a former board member who has since died. All said they supported the restart of Calhoun and trusted the decisions of OPPD’s management, although two — Mike Cavanaugh and Lloyd Scheve — also said they had informally expressed misgivings. 
There was some informal buzz around not restarting the plant, said Cavanaugh, who has been on the board for 22 years. 
“I don’t recall exactly when it was, but there was discussion about it,” he said. He said he might have considered not restarting the plant, but discussions never happened in formal session. 
In some ways, OPPD appeared determined to zig with respect to nuclear when many others in the energy industry were zagging. 
A postmortem of OPPD’s decisions is instructive:
In the year between the disastrous flood of June 2011 and the flood’s one-year anniversary in June 2012, signs were abundant that natural gas was already cheap and destined to get far cheaper, just as a Dominion spokesman told an industry magazine as the publicly traded company closed the Wisconsin plant. 
“Certainly” cheap natural gas was a factor in shutting the plant, Dominion spokesman Jim Norvelle told trade publication Natural Gas Intelligence in October of that year. 
Now, OPPD executives say the coming of cheap natural gas — what it calls a nail in the coffin of expensive and small nuclear plants such as Fort Calhoun — was tough to forecast back at the time. 
Yet signs were flashing all over the place that natural gas was falling and would keep doing so: 
» In September 2011, three months after the flood, the U.S. Energy Department said in a report that natural gas was so cheap, record use of the fuel by utilities was likely as they responded to pressure to cut emissions. That meant those utilities likely would turn increasingly from coal to natural gas, the Energy Department said. Electric utilities, the top consumers of coal, were set to use unprecedented amounts of gas that year, the Energy Department report said. 
» In November 2011, five months after the flood, an Environmental Protection Agency official put the kibosh on any hopes the OPPD board might have had of proceeding with mainly coal-fired generation. (About 70 percent of OPPD’s generation came from coal at the time — a share that has held steady.) With its nuclear plant out of commission, what was left other than natural gas? 
Gina McCarthy, assistant administrator for the EPA’s Office of Air and Radiation, warned that coal-dependent utilities had better prepare to clean up their acts. She said that month at a conference sponsored by the Federal Energy Regulatory Commission that four proposed clean air and water rules aimed mainly at coal-fired power plants would not be derailed by those predicting dire economic consequences — a move-forward policy that any energy industry professional should have seen as having enormous implications for the price and supply of natural gas.
“Our analysis and past experience indicate that the recent warnings of dire economic consequences of moving forward with these important rules are at best exaggerated,” McCarthy said. 
» In December 2011, six months after the flood, energy industry analysts began calling the replacement of coal by natural gas “the new normal.” 
Energy industry analysts at Houston investment bank Simmons & Co. International said in a report that month that natural gas prices had dropped 17 percent that year — a sign of abundant supply as producers ramped up to meet demand. 
The bank cited an Energy Department forecast that coal’s market share of electricity generation was expected to fall to 43.5 percent in 2012 from 44.9 percent in 2011. In other words, the Energy Department was calling the switch at the very same time OPPD now says it was unable to spot it.
“A reduced share for coal is quickly becoming the new normal,” Simmons & Co. wrote. 
» There was another natural-gas trend booming its way around the energy industry in December 2011: shale production. 
New technologies such as hydraulic fracturing, or fracking, allowed gas producers to tap reserves previously not economical to drill. The effect, predictably, sent natural gas prices down as supplies increased, making the blue flame a cheaper source for generation just as OPPD was in its sixth month of struggling with Fort Calhoun. 
The Energy Department, however, didn’t miss the hints. It said in its Short-Term Energy Outlook in December 2011 that booming U.S. natural gas production from shale formations was likely to send natural gas prices falling for an unprecedented fifth year in 2012 — presumably a good thing for utilities seeking to replace generation from dirty coal plants or under-repair nuclear stations. 
“Gas may tumble 8.2 percent from its 2011 average next year, as output rises 2.8 percent to a record 67.72 billion cubic feet a day, according to the Energy Department,” Bloomberg News reported at the time. “Demand will probably climb 1.7 percent, after a 1.8 percent increase this year.”
» In January 2012, as the Fort Calhoun debacle entered its second calendar year, the price of natural gas — the fuel that OPPD now says it didn’t see coming — reached a 10-year low. 
» If OPPD was looking to the government for more clues about sentiment regarding the future of natural gas, it didn’t have to look too hard. Also in January 2012, the Interior Department put up for auction 32 onshore U.S. oil and natural gas leases. 
» If OPPD didn’t see cheap natural gas coming back in 2012, the energy industry analysts at Bank of America and others did, citing strong prospects for prices below $2 per million British thermal units. 
“We don’t believe there is a short-term floor for prices,” one of the analysts told Bloomberg News.
» January 2012 is also when President Barack Obama said in his State of the Union address that he expected domestic energy sources, cleaner ones including natural gas, to take to the forefront. 
As OPPD was deciding to proceed or not with what became a nearly $300 million repair bill for an aging and tiny nuclear power station, the president said: “This country needs an all-out, all-of-the-above strategy that develops every available source of American energy. ... We have a supply of natural gas that can last America nearly 100 years.” 
OPPD leaders argued at the time that hanging on to Fort Calhoun was indeed part of an all-of-the-above strategy, and a carbon-free one at that. But they now say it’s too expensive for smaller plants such as Calhoun to survive in the era of cheap natural gas: Larger nuclear plants with two and three times the generating capacity of Calhoun can spread costs over a greater base. 
For instance, OPPD has paid about $57 per megawatt-hour to generate at Calhoun over the past three years, on average. The average cost nationally — at plants that are all bigger than Omaha’s — is $35.50 per megawatt-hour, according to the Nuclear Energy Institute. 
» March 2012, natural gas reaches another 10-year low. 
» April 2012, one year after the Fort Calhoun facility went cold, the chairman of Exelon — the Chicago company later hired by OPPD to run the troubled Fort Calhoun station — said cheap natural gas was the grim reaper for nuclear power. 
Market conditions are “really not great for nuclear,” Mayo Shattuck said at a conference in Washington, D.C. The economic environment “raises very serious questions” about whether nuclear would be able to survive on its own without government subsidies. 
OPPD didn’t get the message. A few months later, Exelon — despite its warning — was the recipient of a $400 million contract from OPPD to run Fort Calhoun. 
» Finally, also in April 2012, what had been a trend was recognized as a new way of doing business. 
Less than one year after Fort Calhoun went offline, the U.S. Energy Department formalized its 2012 outlook, saying it expected natural gas output to rise about 2 percent and prices to fall 21 percent — a seeming bonus for any utility poised to take advantage of the cheaper and cleaner fuel.
So OPPD faced a choice after the Missouri River flooding in 2011 and the serious fire at the Fort Calhoun nuclear plant put the facility on a federal regulator’s list of the nation’s most troubled: OPPD could shut down the plant or spend the money to get the plant back up to snuff.
The summary of the Black & Veatch study, which said a permanent shutdown was more economical, cited three arguments for restarting: 
1) Nuclear is a carbon-free source of energy. 
2) About 700 jobs were at stake. 
3) Employee morale: “30+ months has been dedicated to restart efforts.” 
Choosing to fix the plant cost OPPD $283.5 million, according to a World-Herald analysis of the utility’s books. 
And OPPD wouldn’t fix the plant on its own: Even though it had run Fort Calhoun since it first generated power in 1973, OPPD said it lacked the expertise to handle its own nuclear operation. So it signed its $400 million, 20-year contract with Chicago-based Exelon — a large nuclear plant operator — to actually run Fort Calhoun. So far, OPPD has paid Exelon $86 million. 
Lloyd Scheve was appointed to the OPPD board in February 2011 and was defeated in his subsequent election bid in late 2012. He said he remembered questions about the nuclear plant’s viability came up around the time the Exelon contract was inked in August 2012. 
Scheve compared the plant’s troubles to working on an old house, saying that “every time we turned around there was another $100,000 worth of things that needed to be fixed.
Still, the OPPD board at that time made a unanimous decision to turn over day-to-day control of Fort Calhoun to Exelon. 
OPPD still has about 700 staff connected to the nuclear operation despite outside management by Exelon. Details of the contract with Exelon have never been released, but public records requests by The World-Herald show payments to the Chicago company have averaged about $2 million a month since September 2012. OPPD has repeatedly declined The World-Herald’s request to review the Exelon contract, citing what it says are confidentiality clauses. 
(Exelon itself said earlier this month that it would close two of its Illinois nuclear plants if lawmakers don’t cough up money to help the financially troubled facilities. The imperiled Clinton and Quad Cities plants have lost $800 million since 2009, according to Exelon, which is publicly traded.) 
All told, seven nuclear plants have either shut down or have been slated for decommissioning since 2013. 
The money OPPD has paid to Exelon, the lost revenue from the 2011-2013 shutdown and the other costs associated with getting Fort Calhoun back online after the flood came on top of nearly $400 million the utility spent in 2006 to refurbish the plant, replacing some major components — measures that were required to keep the plant in operating condition through the end of its regulatory licensing in 2033. 
Former CEO Gates, who retired last summer, said keeping the plant running was the prudent choice to make. Current Chief Executive Tim Burke, who announced the planned closing, said he agreed with Gates’ decision at the time. 
The utility needed the reliability and diversity afforded by Fort Calhoun to protect against wide swings in the price of energy commodities like coal, for example, Gates said. Plus, the inherent carbon-free generation that distinguishes nuclear power from greenhouse gas-emitting fossil fuel plants made it an even more attractive asset in the face of potential regulatory crackdowns on such emissions. 
The ripple effects of the nuclear plant’s woes soon hit ratepayers, with the OPPD board in December 2012 approving a rate hike that hit residential customers to the tune of $7.30 per month, or 7.7 percent. 
Would a privately owned or publicly traded operator have plowed so much cash into a nuclear plant in the midst of the natural gas revolution? 
No, said Travis Miller, a Wall Street analyst who covers Exelon and other nuclear operators for Morningstar. “I would imagine it would’ve closed” in the aftermath of the 2011 Missouri River flood, he said. 
Because of the fading economic argument for nuclear, as many as 20 nuclear plants, or 20 percent of the U.S. fleet, are at risk of shutting down in the next five to 10 years, Nuclear Energy Institute President Marvin Fertel said earlier this month at a U.S. Department of Energy summit.
Paul Patterson, a Wall Street analyst with New York-based Glenrock Associates who covers Exelon competitor Entergy, said he also doubts Fort Calhoun would have survived in a competitive marketplace unlike the state-mandated monopoly enjoyed by OPPD. 
While he said he’s careful about second-guessing the utility’s decisions, Patterson called the restart of Fort Calhoun “a little peculiar.” 
“If only a few years ago they were spending that kind of money on a plant this size,” he said, “and now to believe it would be a better idea to shut it down and buy power than to keep running? 
“That would suggest that it probably wasn’t the best decision.”