Posted on 06/29/2006 6:27:17 AM PDT by IrishMike
Why Wall Street Is Skeptical Of Backing A New Round Of Proposed Nuke Plants ?
Nuclear power is hot. Sixteen utilities have expressed intentions to build up to 25 new reactors across the U.S. Just last month, NRG Energy (NRG) in Princeton, N.J., unveiled plans to invest $5.2 billion in two new reactors at an existing atomic plant near Houston.
It's a nuclear renaissance, right? Not yet. While smart money is placing multibillion-dollar bets on ethanol, wind power, and solar, it's not throwing buckets of cash at nukes. "The real obstacle isn't the Sierra Club but the 28-year-old analysts on Wall Street," says Bob Simon, Democratic staff director of the Senate Energy and Natural Resources Committee.
Regulators could balk if proposed designs don't meet construction and safety standards. But memories of the delays, titanic cost overruns, and bankruptcies that ended America's love affair with nuclear power in the mid-20th century are the most daunting obstacle. "Investors remain wary of construction risks," says Paul Ho, a director at Credit Suisse First Boston's (CSR) energy group.
LONG MEMORIES.
That's why, five or so years from now, when the first construction and operating licenses are likely to be granted, only the most creditworthy diversified players, such as Duke Energy (DUK) and Southern Co., would be likely to dip a toe in these waters, explains Denise Furey, senior director of global power with Fitch Ratings. With their scale, such companies could finance these projects for a decade or so using some combination of debt and equity. But that's a far cry from a new nuclear age.
(Excerpt) Read more at 10news.com ...
And what was it that caused these delays, etc.?
Oh, yes:
the Sierra Club and the rest of the environMENTAL patients.
I am sympathetic with the concerns.
Here in Indiana, we had to scrap Marble Hill.
I can't remember exactly why.
I do remember that it was $5.2 billion down the drain.
Don't give them the credit. They were only bumps in the road.
That and substandard work by overpaid goonion workers.......
Watts Bar, a nuke plant owned by TVA, about 30 miles up the road from me, was plagued by poor workmanship and it's commissioning was delayed significantly as a result. Another nuke plant, Widows Creek, about 30 miles the other direction was never commissioned to go nuclear because of problems with workmanship. WC has since been converted to a coal fired plant.
Building two plants "near Houston" would indicate South Texas Project (closer to Corpus actually) would go from 2 plants to 4 plants.
It burns coal. All their (and lots of fully degreed and licenced Engineers) work went down the crapper.
An ironic aftermath is that now the residents downwind from the Zimmer coal-fired plant are complaining about the air pollution from it. I told people at the time the decision was made to scrap the nuke that this would happen, but nobody listened to me. I say let them choke. You reap what you sow.
We need more like that.
(Marble Hill) In the original proposal, the estimated cost was a little over $1 billion to build the twin 1130 MWe Westinghouse reactors at the Marble Hill site. Construction began in 1977 and by 1984, costs had skyrocketed and production was shut down. $7-$8 billion had been put into the project and at that time the project was estimated to be only 20% complete. The main problem with the project was the financing. Huge loans were taken out and the interest grew rapidly. Any delay cost millions of dollars, since more time literally meant more money. Problems with workmanship by general contractor Newburg Construction led to many man-hours and therefore many dollars being spent chipping away “honeycombs” (air pockets) in the concrete of the containment building and then re-pouring the concrete.
Dang ... the passage of time sure screws around with the memory, doesn't it?
Building two plants "near Houston" would indicate South Texas Project (closer to Corpus actually) would go from 2 plants to 4 plants.
.............Interesting
And the eco-fanatics know this VERY well, which is why they file dozens of frivolous lawsuits to delay, delay, delay.
"Problems with workmanship by general contractor Newburg Construction led to many man-hours and therefore many dollars being spent chipping away “honeycombs” (air pockets) in the concrete of the containment building and then re-pouring the concrete."
This may indeed be true, but I'll bet a much larger fraction of the cost was those frivolous lawsuits by the eco-fanatic groups.
WTF??? I assume nothing ... I never even discussed that matter. Beyond that, you're preaching to the choir. ;'} I've been a big-time nuke proponent for ... well ... ever since I was old enough to understand what a "Power Plant" is.
We'll have a couple dozen built in the next 25 years. Our commuter cars will be electric, plugged in for a recharge overnight.
"Watts Bar, a nuke plant owned by TVA, about 30 miles up the road from me, was plagued by poor workmanship and it's commissioning was delayed significantly as a result. Another nuke plant, Widows Creek, about 30 miles the other direction was never commissioned to go nuclear because of problems with workmanship. WC has since been converted to a coal fired plant."
Do you remember the abandoned reactor in Hartsville? What a waste. I knew some union welders and pipefitters up there that stood around for most of the day doing nothing.
Not to mention hyped and mythical nucyouler disasters, and any idiot that thinks wind, ethanol and solar, are going to do anything for future energy needs, is, well, an idiot. Many of our US navy ships are noocyouler. It is the best technology ready for the future, there isn't anything on the horizon that is even close to production. Newquler hasn't been sitting still either, the technology and safety have made significant progress in the last thirty years.
Don't forget unions. During the construction of WNP-2 in Wa state, two painters got mad and started picketing a gate. All unions working that day honored the picketers and work was shut down a full day.
Forget investing in alternative energy stocks. Buy uranium mining and processing companies.
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