Economic ‘Uncertainties’ Delay Decision On New Texas Units
Written by NucNet
Wednesday, 01 July 2009
A US utility is deferring planned major pre-construction work on a proposed new nuclear power plant in Texas because of “uncertainties” in the national economy.
Exelon said yesterday that it would seek an early site permit (ESP) for the proposed twin-unit Victoria County plant rather than a combined construction and operating licence (COL).
The change in licensing strategy allows the utility to continue with some aspects of site evaluation and approvals while deferring a decision on construction and technology choices.
Exelon said the decision was the result of “uncertainties in the domestic economy, the limited availability of federal loan guarantees and related economic considerations”.
“Some visible site activity may continue, but planned major pre-construction work such as road upgrades and site preparations will be deferred,” the utility said.
Exelon’s senior vice-president for new business development Thomas O’Neill added: “We are not leaving Victoria, but we are ramping back our schedule for decision-making… Today’s economic realities compel us to defer any decision on construction for a while.”
Exelon expects to submit the ESP application late this year or early 2010. An ESP does not commit Exelon to building, but it is part of the licensing process should the utility eventually decide to build. ESPs are valid for 10 to 20 years and can be renewed for an additional 10 to 20 years.
Exelon said in November 2007 that the General Electric-Hitachi Economic Simplified Boiling Water Reactor (ESBWR) was its preferred technology for the Victoria County site, should it eventually decide to build. However, in 2008, the utility said it expected to change its selected reactor design.
The International Energy Agency warned last May that the global economic downturn could lead to delays or cancellations of new nuclear power plant projects and could reduce the nuclear generating capacity likely to be commissioned worldwide between 2015 and 2020.
