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Posts Tagged ‘south texas nuclear project’

Wednesday, CPS Energy of San Antonio announced that they are writing off the nearly $400 million already spent to develop two new proposed South Texas Project nuclear reactor units.

south-texas1.jpg“The NRC can license these reactors, but they won’t get built,” said Karen Hadden of the Sustainable Energy and Economic Development (SEED) Coalition. “Renewable energy is cheaper these days and much safer. Nuclear power creates radioactive waste that remains deadly for hundreds of thousands of years.”

“CPS’ decision shows that proposed nuclear reactors are worthless. There’s no market for their rate raising, high-cost, high-risk power,” said Tom “Smitty” Smith of Public Citizen’s Texas office.  “The proposed reactor price tag rose from $5.9 billion to $18.2 billion, even before a license was ever issued.  Delays, construction problems and lawsuits are the norm for nuclear reactors. They cost so much that even with all the federal subsidies, no bank will loan money to build them. CPS did the smart thing and wrote off this worthless investment”

You can read about this fiscal decision on their blog by clicking here. You can read the excerpt regarding the financial write-off from the post below:

In FY 2015-16, we also made the decision to financially write-off our investment in the proposed South Texas Project Units 3 & 4. The decision to write-off the investment should be seen solely as an “accounting decision.” CPS Energy will retain a legal interest in the project, which aligns to our perspective that   nuclear is a significant part of our local and the broader national energy portfolio and will continue to be an important, carbon free and economic fuel type, as well as a good alternative to help counter volatile fuel prices.

We continue to argue that, for a variety of reasons – stated briefly above, nuclear energy should not be considered the future of the nation’s broader energy portfolio. CPS’s financial decision is one such indicator, in spite of the caveat in their statement.

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Statement of Tom “Smitty” Smith, Director, Public Citizen’s Texas Office

Today’s announcement that as a part of a settlement with NRG Energy, CPS Energy will withdraw its application for a federal loan guarantee for the South Texas (Nuclear) Project (STP) expansion and end further investment in the project demonstrates nuclear plants are too costly and too risky to build.

CPS Energy and the San Antonio City Council have signaled their desire to stop throwing good money after bad at STP, a message we hope will tell the U.S. Department of Energy that this plant is a poor candidate for federal loan guarantees. This debacle should show the federal government that nuclear loan guarantees are a fundamentally flawed and wasteful use of taxpayer money.

At $18.2 billion, the cost of STP has already tripled in just a year. When STP 1 and 2 were built, they ended up being six times over-budget and eight years behind schedule, and STP 3 and 4 look like they are on track to beat out that poor performance record.

Today’s announcement is a victory for the many citizens of San Antonio that have worked so hard in the last year to bring openness and accountability to the city’s participation in this project. We applaud CPS for wisely seeing the futility of wasting more time and energy on this flawed nuclear endeavor. We hope that they will be satisfied with the deal they’ve gotten and avoid the temptation to increase their ownership in the project. CPS has finally reached a settlement that shields San Antonio ratepayers from the financial risks of yet another nuclear deal gone wrong. Any future investment would throw that protection to the wind.

On Thursday, the City Council will vote on a proposed rate increase for CPS. The City Council should put a firewall in that proposal to ensure that no unauthorized money will be siphoned off to buy a bigger stake in STP.  San Antonio can’t afford to let this rate increase become a back door to continued nuclear investment.

We also have to wonder how NRG will move forward, without another clearly delineated partner in the project. Less than a month ago, NRG announced that if CPS “does not meet future obligations representative of its ownership interest in the site”, they “will wind down the project as quickly and as economically as possible.” We certainly hope that NRG CEO David Crane will remain true to that expressed intent to protect his shareholders from the next financial failure in a long historic line of overly expensive, poorly executed nuclear projects.

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

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Two proposed nuclear reactors in Florida were put on hold this week after the Florida Public Service Commission denied the lion’s share of a rate increase necessary to fund the project’s construction. The utility Florida Power and Light (FPL) requested a record rate hike of $1.27 Billion, but was only granted a a $75.5 million base-rate increase. Stripped of their authority to make ratepayers bear the financial burden and risk of new reactors, FPL announced

it would halt $10 billion in projects, including plans to build two new nuclear reactors at the Turkey Point plant near Miami and upgrade two new generators.

If the economy improves, FPL can ask for a larger rate increase at a later date — but for the time being, this is a major victory for consumers and anti-nuclear advocates alike.  Florida has seen the folly of forcing citizens to pay large rate increases and bear the long-term burden for risky investments in nuclear power — let’s just hope that the San Antonio City Council comes to the same conclusion.  They’re set to vote on $400 million in bonds to continue their stake in two additional proposed reactors at the South Texas Nuclear Project facility later this month.

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

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*Update: Greg Harman at the San Antonio Current just published a fantastic and very thorough recap of the twisted nuclear saga. Check it out!

Here’s part 2 in this year’s first annual Year in Review: Top Texas Vox Stories of 2009 series. Part 1 is just a hop, skip and scroll down.

3. San Antonio Nuclear Debacle/Amores Nucleares Telenovela

This year has been a doozy for nuclear power, with the highlight of course being the San Antonio situation.  Over the last 12 months San Antonio has ridden a wild wave of cost estimates, community meetings, protests, scandals, and misinformation.  But I’m getting ahead of myself. Remember when…

Last January, CPS Energy committed to spend $60 million more on the proposed expansion of the South Texas Nuclear Project, a decision which at that point brings the city utility’s total expenditures on units 3 & 4 to $267 million. Not long after that, Austin City Council took a look at participating in the expansion project but said “No way, that’s much too risky of an investment for us.” San Antonio decided that something magical (but mysterious) was different for them, despite our prediction in late April that the proposed reactors could actually cost as much as $22 Billion.  Mum was CPS’ word on a cost estimate at that time, but by June they announced that $13 Billion was a good, round number. We worried at this point that CPS was being overly optimistic, ignoring the history of the South Texas Project and other nukes around the nation and independent reports, but those concerns largely fell on deaf ears.

Then over the summer, CPS Energy launched a massive public outreach campaign, with meetings in every district — but kind of botched it.  Despite activists’ protests that CPS’ cost numbers were innacurate, the utiltiy refused to release their information or back up numbers, and many San Antonio citizens left the community meetings feeling disenchanted with the process and suspicious of CPS.

As a rising tide of activists and concerned citizens grew, eventually they formed the coalition group Energía Mía and worked together to halt CPS’ spending for more nuclear reactors. The group launched a string of protests and press conferences highlighting the many flaws of nuclear power and the San Antonio deal in particular.  Everyone was all geared up for a big showdown the last week in October, but then the cowpie really hit the rotating bladed device (let’s call it a windmill). For the next part, I’m going to pull from a previous post where I likened the whole situation to a geeky, policy version of a telenovela.

Previously, on Amores Nucleares:

With just days before San Antonio City Council was to vote to approve $400 million in bonds for new nuclear reactors, it was leaked that the project could actually cost $4 Billion more than CPS had been saying all summer (according to Toshiba, who would actually be building the plant). The vote was postponed, there was an impromptu press conference, and it came out that CPS staff had actually known about the cost increase for more than a week — Oops! Oh, and the “leak” wasn’t that CPS came out with the truth, an aide from the mayor’s office only found out after confronting CPS about a rumor he’d heard. But how did the mayor’s office find out? NRG, CPS’ partner in the project was the “Deepthroat”, because they were going to announce Toshiba’s $17 Billion cost estimate at a shareholder’s meeting soon after the city council vote and thought, geez, that could look really bad for CPS! Meanwhile, CPS reps flew to Japan in a hurry to figure things out. Steve Bartley, interim GM for CPS, resigned. Furious that CPS had hidden the ugly truth from City Council, the mayor demanded the resignation of two key CPS board members, and got City Council to vote unanimously that they get the boot. Chairwoman Aurora Geis agreed to go, but Steve Hennigan said “No Way, Jose.” THEN CPS completed an internal audit of the whole shebang to figure out what-the-hell-happened, which found that Steve Bartley was to blame, and everyone else was only guilty of failure in their “responsibility of prompt disclosure”. Then it came out the project could be even more way way expensive than anyone thought (except of course Energia Mia, Public Citizen, SEED Coalition, the Center for American Progress, Nuclear Information and Resource Service, and analysts Arjun Makhijani, Clarence Johnson, Craig Severance, and Mark Cooper to name a few). And then those crazy cats all started suing each other.

So in the end, they told folks all summer long that the plant would cost $13 Billion, even though insiders knew since late June that it could very well be $4 Billion more. Latest update is that the plant could really cost $18.2 Billion! On December 31st, Toshiba provided CPS with another new estimate, which the utility will use to come up with their own new cost estimate mid-January. City council is slated to vote sometime after that, once and for all, on $400 million in bonds to continue the project.

But clearly, enough is enough. So if you live in San Antonio, tell City Council to stop throwing good money after bad, and to cut their losses before its too late. Tell them to vote “no” to nuclear bonds and start the year off fresh and free from the “ghost of nuclear projects past.”

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By promoting cleaner energy, cleaner government, cleaner cars, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

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The fall is upon us, and so the Texas Progressive Alliance closes out another summer with some more hot blogging.

Halliburton was fracking for Cabot and … Oh Oops! We spilled some! TWICE! Deadly Hydraulic Fracture Fluid! Ironically, industry just released part of their $80 million propaganda campaign asking people to submit “Eureka” moments.  From TXSharon at Bluedaze: DRILLING REFORM FOR TEXAS.

Congressman “Deer in the headlights” Pete Olson (R-TX) gets called out at his own town meeting and the police are called in!

The Texas Cloverleaf wonder when police departments will enter the 21st century.  A San Antonio lesbian couple sues in federal court over blatant harrassment in their own home.

This week at McBlogger, Mayor McSleaze took the time out of his life to educate you people on some things going on around the country.

CouldBeTrue of South Texas Chisme notes Rick Perry won’t admit execution might have been a mistake.  To be a Republican is never to say you’re sorry.

At Texas Vox, nuclear energy and economic experts explain just how much is at stake with the South Texas Nuclear Project expansion — the entire San Antonio economy.

Off the Kuff takes note of some hot judge-on-prosecutor action going on at the Court of Criminal Appeals.

Neil at Texas Liberal ran a one-minute video this week, filmed in front of hurricane remembrances in Galveston, Texas, in which he made a plea for folks to be aware of the past.

Kay Bailey has two purse boys, and Ricke Perry is unaware there is a recession. Sometimes the cluelessness and utter hypocrisy of Texas Republicans still amazes the cynical PDiddie at Brains and Eggs.

WhosPlayin had video of parents handing all kinds of hell to Lewisville ISD board and administration over banning the Obama pep talk.  Perhaps the bigger story though is that like many other school districts in the state, the financial situation looks bleak for the coming year.

Over at Texas Kaos, Bulldog reminds us that health care, like national defense is NOT about profit, but about the security of the American people.  She tells her story and does it well in Health Care Rambling.

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Many of you have been clamoring for these videos of the clean tech forum that we attended on Wednesday, so here they are in streaming digital goodness.
[vimeo 6648744]
[vimeo 6649649]

Outside the event we caught up with two of the panelists from the forum, specifically the ones opposed to San Antonio investing in the new nuclear expansion.  First, Craig Severance, a CPA by trade, who did a financial “due diligence” type of analysis on the proposed nuclear expansion at STP 3 and 4. Read about it in his blog at energyeconomyonline.com/San_Antonio_Debate

[vimeo 6648340]

We also spoke with Dr. Arjun Makhijani, a noted power expert, on the risks of nuclear expansion.

[vimeo 6648395]

It’s time to be hard-headed about this, folks.  Investing in nuclear  is an economic risk the City of San Antonio simply can’t afford to take.

Hungry for more?  We have full footage of the “Risking San Antonio’s Economic Future, Nuclear Experts Explain Flaws and Risks of Pursuing More Nuclear Reactors” forum that was held later in the day at the UTSA Downtown Campus.

[vimeo 6660448]
[vimeo 6662900]

Here’s some of the press coverage from the event:

Energy leaders to debate nuke issue in S.A.By Tracy Idell Hamilton   -Express-News

Nuclear forum highlights contrasting opinions –  By Anton Caputo   -Express-News

Nuke vote delayed; final hearing is set By Tracy Idell Hamilton   -Express-News

Nuclear investment part of a viable energy portfolio By Patrick Moore
(please go here and leave snarky comments about what a corporate stooge sell-out Patrick Moore is)

http://johntedesco.net/blog/2009/09/16/fresh-from-twitter-debating-nuclear-power/

http://blog.barberassociates.com/2009/09/san-antonio-clean-technology-nuclear.html

http://www.ksat.com/news/20966023/detail.html

And last but certainly not least, for our Amigos who can habla espanol, please watch this video from Univision featuring our own Melissa Sanchez and David Power!

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Dont Nuke The Alamo:  Local Power Coalition, opposes new Nuclear Reactors

Dont Nuke The Alamo: Local Power Coalition, opposes new Nuclear Reactors

Don’t Nuke The Alamo!  As we all know, San Antonio’s CPS energy is on the verge of investing in a third and fourth reactor for the South Texas Nuclear project in Bay City. In addition to the environmental and social concerns we have about nuclear power at Public Citizen, we also want to make it known that these reactors are a huge financial gamble. Our best independent studies on the topic show that it will likely be well over budget (possibly 100% over budget) and there is every reason to expect unplanned time delays and hidden costs.

Fortunately the citizens of San Antonio are working to voice their concerns about the project and encourage CPS to reconsider this investment. I recently attended the first meeting of Local Power (or Energía Mia), a coalition of various environmental and social organizations from the San Antonio area, to talk about ways we can voice our concerns about the proposal and get our Mayor and City Council to take action. For anyone interested, the next local power meeting will take place on July 28th at the San Antonio Progress Action Coaltion (SAAPAC) office. Plans were made to target local council members by participating in and producing Public Service Announcements, Forums, District Meetings, Right-wing talk radio interviews and radios ads, and letters to churches and neighborhood associations.

Anyone concerned about these issues is welcome to help and attend any events. SAAPAC head Cindy Wheeler expressed plans for the group to make a concentrated effort to identify the San Antonio residents who will experience a 5% or more rate hike on their electric bills if the reactors are built and help them voice their opposition.

The attendees made plans to attend the CPS Neighbors Night meeting series which will take place all around San Antonio on the designated nights at 6:00pm. At these meetings any interested person can sign up to speak. Here is the schedule for the remaining meetings:

Thursday, July 23 (District 1)
Tripoint Center (YMCA)
3233 N. St. Marys St.

Tuesday, August 4 (District 2)
Freeman Coliseum
3201 E. Houston St.
(Held in Auction Barn. Enter through west gate off W Houston near railroad tracks. Parking available in Lot #9)

Wednesday, August 5 (District 7)
St. Paul’s Community Center
1201 Donaldson

Tuesday, August 25 (District 9)
Alzafar Shrine Temple (Terrace Room)
901 North Loop 1604

Tuesday, September 1 (District 10)
My Father’s House
3131 Nacogdoches Road, Suite 105

Wednesday, September 2 (District 3)
Holy Name Activity Center
6618 Fairlawn

Thursday, July 23 (District 1)
Tripoint Center (YMCA)
3233 N. St. Marys St.

Thursday, July 30 (District 8 )
Firefighters Union Hall
8925 IH-10 West

Tuesday, August 4 (District 2)
Freeman Coliseum
3201 E. Houston St.
(Held in Auction Barn. Enter through west gate off W Houston near railroad tracks. Parking available in Lot #9)

Wednesday, August 5 (District 7)
St. Paul’s Community Center
1201 Donaldson

Tuesday, August 25 (District 9)
Alzafar Shrine Temple (Terrace Room)
901 North Loop 1604

Tuesday, September 1 (District 10)
My Father’s House
3131 Nacogdoches Road, Suite 105

Wednesday, September 2 (District 3)
Holy Name Activity Center
6618 Fairlawn

Tuesday, September 15 (District 4)
Knights of Columbus
5763 Ray Ellison Blvd.

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Hip-hip- HOORAY! After a series of informative, provocative presentations and public comments this morning, the Austin City Council voted unanimously to DECLINE participation in the South Texas Nuclear Project’s expansion plan.

Austin has a 16% stake in the current South Texas Nuclear Project, and has been questioning for months whether it should be a financial participant in new plans to double the capacity of that plant.  Months ago a consultant firm, Worley Parsons, was hired by Austin Energy to investigate whether this would be a good idea for Austin’s future.

First to present was Roger Duncan, general manager of Austin Energy.  He gave a presentation on the consulting firm’s recommendations.  We learned the following:

  • The proposed expansion would generate an additional 436 MW for the City of Austin.  Estimated cost: $2 billion.
  • Under a worst case scenario (of cost overruns, delayed construction, etc), power generated from the new boilers would cost 13 cents/kwh.  Under the best of circumstances (everything was beautiful and nothing hurt), electricity would cost 6 cents/kwh.  The firm’s most realistic, expected scenario would price out at around 8 and a half cents/kwh — however, it should be noted that Worley Parsons is a pro-nuclear consulting firm, so these are likely the most conservative of estimates.

The consulting firm concluded that with only a 16% stake in the project, Austin Energy would have insufficient owner protection from the scheduling, cost, contractor and regulatory risks involved in the project.  For example, if significant cost overruns did occur, Austin Energy would not have any vote or say in the matter of how to proceed.  Furthermore, large capital costs would be associated with the project throughout 2016 — but none of that cost risk would be within Austin Energy’s control.  The firm also warned of a potential downgrade of Austin Energy’s bonds because of the extended time period of debt issuance without cost recovery.

Because of the significant amount of unacceptable risk associated with the the expansion project, Worley Parsons recommended that Austin NOT participate.  As an Austin Energy spokesman Mr. Duncan announced that the utility had reached the same conclusion with the additional reasoning that Austin has no need for the 432 MW of base-load power that the project would eventually supply.  We wouldn’t even know what to with all that power.  Austin Energy also expressed concerns (rightly so!) that the nuclear waste issue remains unresolved. (more…)

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CPS committed to spend $60 million more on the proposed expansion of the South Texas Nuclear Project at its Board of Trustees meeting on Tuesday, which brings the city utility’s total expenditures on units 3 & 4 to $267 million.

The construction and operating license still languishes at the NRC, almost a year and a half after being submitted.

Somewhat lost amid the honorings, approvals, and statements of the Board meeting was the fact that STP 3 & 4 ranking for DoE’s loan guarantees has slipped from #1 to #3 (out of 14).  Updated rankings will be out in March.  3rd seems respectable.  It’s a bronze medal, right?  Well, there’s only $18.5 billion slotted for loan guarantees and each reactor can cost $6-who-knows-how-many-billions.

Gschwartz’s piece on this week’s Board of Trustees meeting sums things up pretty well on SA Current’s Queblog.  The Express-News touched on it here and here.

-Matt

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