CORRECTION: A previous version of this story stated NRG Energy’s application for a new nuclear reactor was the first such application in three decades. The Nuclear Regulatory Commission has 18 new reactor applications pending, although most of the projects are on hold because of financing concerns.
Decades will pass before Connecticut’s nuclear light goes out.
But that light won’t glow green, either.
Despite being a large emissions-free, nuclear power won’t play a role as Connecticut strives toward a more environmentally friendly energy future. The reason: The state is concerned that there isn’t a long-term solution for the waste created through nuclear reactions.
Over the next 10 years, Connecticut law calls for 27 percent of the state’s electricity to come renewable resources such as wind and solar, a diffiult goal as surrounding states with similar standards compete for the same limited renewable resources.
Since 45 percent of Connecticut’s generated electricity comes from nuclear, an easy solution for the state is to count nuclear power as a renewable — or at least give it some credit like the proposed national standard. That method would be cheaper, as nuclear power doesn’t have premiums of wind and solar, but that solution won’t come to fruition.
“Nuclear has never been proposed or even considered (as renewable),” said Phil Dukes, spokesman for the Connecticut Department of Public Utility Control. “The legislature has taken the position that the spent nuclear fuel is an environmental hazard.”
Connecticut’s only nuclear power plant, the Millstone Power Station in Waterford, is the largest single generator of electricity in New England. Millstone’s two newest nuclear reactors generate more than 2,100 megawatts daily.
The Nuclear Regulatory Commission operating licenses for the two active Millstone reactors expire in 2035 and 2045, with the possibility for another 20 years of operation tacked onto each deadline. Its original reactor was permanently shut down in 1997.
Beyond the extensions, Dominion, the owner of Millstone, doesn’t plan to expand the nuclear facility, although the original plan called for six nuclear reactors on the 535-acre site.
Despite the recent regional and national push for cleaner energy, nuclear power can’t shake its negative perception, making potential new neighbors wary of any reactors being built near them.
“It would be very difficult but not impossible to get that process started in New England,” said Jim Robb, Northeast Utilities senior vice president for enterprise planning and development. “Nuclear should be a big part of the solution to the greenhouse gas issue, but right now it isn’t.”
Beyond the perception issues that come with adding nuclear, the biggest obstacle is cost, said Kenneth Holt, Dominion manager of nuclear communications.When Millstone added its third and newest reactor, it didn’t come online until 1985, eight years behind schedule and at a cost of $3 billion, five times the original budget of $450 million.
If Dominion, which purchased Millstone in 2001, decided to add a nuclear reactor in Connecticut, the cost could be as high as $11 billion and construction could take eight years. Unlike states such as Virginia where Dominion is considering nuclear expansion, Connecticut is a deregulated energy market, meaning the company would have to pay for and bring the new reactor online before ratepayers started contributing toward its cost.
Taking such a costly risk would put the entire company in jeopardy, said Dan Weekly, Dominion managing director of Northeast government affairs. Deregulated markets just aren’t attractive to nuclear development.
NRG Energy, a national power company that owns nine natural gas and oil generating facilities in Connecticut, believes it has found the solution to nuclear expansion in a deregulated market. NRG wants to add two nuclear reactors to the two already at its South Texas Project plant, which is in a deregulated market.
The expansion of the South Texas Project from its two existing nuclear reactors to four will cost $10 billion and take 10 years. To pay for it, NRG applied for 50 percent of the project cost through the U.S. Department of Energy Loan Guarantee Program and applied for another 30 percent of the cost through a similar Japanese government program.
To cover the 20 percent, or $2 billion, in equity NRG must put into the project, the company presold the power coming out of the new nuclear reactors through power purchase agreements.
To avoid costly delays, NRG picked a simpler reactor design already built four times in Japan, and hired the Japanese company for the Texas design work. NRG doesn’t expect objections from neighbors, as reactors have been operating onsite since 1988, said David Knox, NRG Energy director of communication.
The spent nuclear fuel is a non-issue, Knox said, because the South Texas Project can store all its used uranium onsite until the federal government develops a long-term plan.
But the uncertainty over the spent uranium has led to the hesitancy in Connecticut and across the nation to explore nuclear as a viable non-greenhouse gas energy option, Robb said.
In 1998, the U.S. Department of Energy was supposed to start collecting waste from reactors around the country and permanently deposit it in Yucca Mountain in Nevada, a cause to which Connecticut ratepayers have contributed $383 million. That plan has been fraught with political delays, and the Department of Energy has a special commission reexamining the issue, considering recycling the spent uranium instead.
While the Department of Energy continues its 12-year delay, Millstone must store all its nuclear waste onsite in Waterford. The closed Connecticut Yankee nuclear plant must also store its 1,920 metric tons of spent uranium on its location in Haddam as well, even though that facility closed in 2007.
If uranium is the major hang-up in giving nuclear credit as a zero-emission power source, Connecticut could give the state’s electricity suppliers credit for nuclear. Under the proposed — but failed — 2010 American Power Act in U.S. Congress, suppliers got credit on the portion of their electricity coming from nuclear didn’t have to meet the same renewable standards as the rest of their supply.
“As the country becomes more focused on climate, nuclear has to be a big part of the plan,” Weekly said.
(NEXT: Energy will be on the agenda when the state legislature convenes in January.)
