New Nuclear Unit in Georgia Reaches Key Milestone
March 8, 2023
by Paul Ciampoli
APPA News Director
March 8, 2023
A new nuclear unit at a site in Georgia has safely reached initial criticality, Georgia Power announced on March 6.
“Initial criticality is a key step during the startup testing sequence and demonstrates that — for the first time — operators have safely started the nuclear reaction inside the reactor. This means atoms are being split and nuclear heat is being made, which will be used to produce steam,” the investor-owned utility said.
Vogtle Unit 3 continues with startup testing, which demonstrates the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor.
Vogtle Unit 3 is adjacent to the operating Units 1 and 2, near Waynesboro, Georgia. Unit 3 and a second new unit are two 1,100-megawatt Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga.
A reactor achieves criticality when the nuclear fission reaction becomes self-sustaining. Achieving initial criticality is necessary to continue the startup of the unit in order to generate sufficient heat for the production of electricity.
Now that the Unit 3 reactor has reached criticality, operators will continue to raise power to support synchronizing the generator to the electric grid and begin producing electricity. Then, operators will continue increasing power through multiple steps, ultimately raising power to 100 percent. These tests are designed to ensure all systems are operating together and to validate operating procedures prior to declaration of commercial operation.
The in-service date for Unit 3 is projected during May or June 2023.
Southern Nuclear will operate the new units on behalf of the co-owners: Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities.
DOE Urged to Provide More Flexibility, Fund Eligible Hydro Projects Under Incentive Programs
March 7, 2023
by Paul Ciampoli
APPA News Director
March 7, 2023
The Department of Energy should provide for more flexibility for permits and authorizations and fund all eligible projects under hydroelectric incentive programs that will be implemented under the Infrastructure Investment and Jobs Act, the American Public Power Association and two other associations recently said in comments filed with DOE.
Section 40333 of the infrastructure law amended the Energy Policy Act of 2005 to establish section 247, which offers a new hydroelectric incentive payment to the owners and operators of qualified hydroelectric facilities for capital improvement projects directly related to supporting grid resiliency, improving dam safety, and environmental enhancements.
Incentive payments are limited to 30 percent of the cost of capital improvements, and only one incentive payment of no more than $5 million can be made to a single project per year. $553.6 million was appropriated for the provision.
In February, DOE issued draft guidance to inform its implementation of hydroelectric incentives in the Infrastructure Investment and Jobs Act.
APPA was joined by the National Hydropower Association and the Edison Electric Institute in Feb. 23 comments filed in response to the draft guidance.
The Associations asked that DOE provide funds to all eligible projects on an equitable basis. “Congress did not authorize DOE to create a prioritization structure between categories or within categories. It is impossible for DOE to create a system that could score the vast array of potential projects that could be eligible for Section 247 grants,” they said. “DOE should review each project to see if it is eligible for funding and, in the event of oversubscription, prorate such that eligible projects receive at least some funding.”
The groups noted that the draft guidance requires applicants to have received any and all permits and authorizations as a condition on eligibility. “This strict requirement significantly limits the population of potential investments to only those that are shovel ready. This was not Congress’ intent,” APPA and the other groups said.
Projects that are still ongoing the permitting process should be eligible to apply for funding, they argued, noting that DOE has other programs that “obligate” funds pending the permitting process. “Actual outlay should remain conditioned on the project receiving all applicable permits.”
The groups also argued that the application period should be long enough to give applicants the opportunity to put together robust and complete applications, noting that the Section 247 program is new for both DOE and the industry.
“The Associations have heard great interest in this program from member companies; however there are significant questions on what constitutes an eligible project and uncertainty as to what is required in the application package.”
APPA, EEI and NHA said that potential applicants will require varying degrees of resources to put together a complete application. “The Associations recommend at least a 90-day open window which gives potential applicants enough time to put together comprehensive applications.“
The Associations said they agree that projects where capital was spent (i.e., placed in service) after the IIJA was signed by President Biden, but before guidance was finalized are eligible.
However, due to the timing of the development of these projects, they were planned and undertaken without guidance from DOE, they pointed out.
“Therefore, they had no way to know what was required to apply for Section 247 funds. DOE should create a process such that these projects have a path to apply for these funds and cure any deficiencies so they can meet the spirit and intent of the guidance.”
The Associations recommended that that DOE require only expenditures made after the final guidance is issued need to adhere to the Community Benefits Plan requirements in Section VIII and relevant requirements in Section XIII. Alternatively, DOE could grant waivers in these cases.
Santee Cooper Issues RFP for Capacity and Energy
March 7, 2023
by Paul Ciampoli
APPA News Director
March 7, 2023
Santee Cooper has issued a request for proposals to assist in meeting specific load growth expectations in their service territory starting January 1, 2024.
Santee Cooper, the state-owned public power utility in South Carolina, is requesting proposals for firm capacity and energy from all dispatchable resources for delivery to its load in the Santee Cooper balancing authority.
Santee Cooper may be required to bundle multiple offers to meet load growth forecasts as a result of this RFP.
Examples of eligible dispatchable resources include, but not limited to:
- Long-term Power Purchase Agreement for capacity and energy from a new or existing designated generation resource
- Long-term PPA proposals for firm with liquidated damages energy and capacity
- Long-term PPA proposals for call option products
Proposals are due March 24, 2023.
The RFP is available here.
Nuclear Regulatory Commission Grants Exemption For Calif. Nuclear Plant’s Continued Operation
March 6, 2023
by Paul Ciampoli
APPA News Director
March 6, 2023
The Nuclear Regulatory Commission has granted an exemption to Pacific Gas & Electric Co. that would allow the Diablo Canyon nuclear power plant to continue operating while the agency considers its license renewal application.
After evaluating the company’s exemption request, NRC staff determined that the
exemption is authorized by law, will not present undue risk to the public health and safety, and is
consistent with the common defense and security.
In addition, the staff determined Diablo Canyon’s continued operation is in the public interest because of serious challenges to the reliability of California’s electricity grid.
The current operating licenses for the Diablo Canyon Nuclear Power Plant, Units 1 and 2, expire on Nov. 2, 2024, and Aug. 26, 2025, respectively. The exemption will allow those licenses to remain in effect provided PG&E submits a sufficient license renewal application for the reactors by Dec. 31, 2023.
The NRC will continue its normal inspection and oversight of the facility throughout the review to ensure continued safe operation. If granted, the license renewal would authorize continued operation for up to 20 years.
NRC regulations allow a reactor’s operating license to remain in effect beyond its expiration date contingent upon the licensee submitting a sufficient license renewal application at least five years prior to expiration – a status called “timely renewal.” PG&E requires the exemption because it has not met that five-year requirement.
PG&E applied to renew the licenses in November 2009 but withdrew the application in
2018 and announced plans to cease operations and decommission the reactors when the licenses
expire.
After California enacted legislation last September to support continued operation, PG&E
asked the NRC to resume its review of the previous application. In January, the staff informed
the company that it would need to submit a new, up-to-date renewal application. That made the
current exemption necessary to allow continued operation while the application is under review.
PG&E has said it will submit an application by the end of this calendar year.
The NRC’s review of a license renewal application typically lasts 22 months.
The California Energy Commission on Feb. 28 approved a staff analysis recommending the state pursue extending operation of Diablo Canyon nuclear power plant through 2030 to ensure electricity reliability.
The determination is based on data showing California risks energy supply shortfalls during extreme weather events driven by climate change, the CEC said.
California Energy Commission Determines Nuclear Plant Needed to Support Grid Reliability
March 1, 2023
by Paul Ciampoli
APPA News Director
March 1, 2023
The California Energy Commission on Feb. 28 approved a staff analysis recommending the state pursue extending operation of Diablo Canyon nuclear power plant through 2030 to ensure electricity reliability.
The determination is based on data showing California risks energy supply shortfalls during extreme weather events driven by climate change, the CEC said.
California Senate Bill 846 requires the CEC to determine the need to extend DCPP’s license to operate beyond its expiration date of 2025.
Located in San Luis Obispo County, DCPP is owned and operated by Pacific Gas and Electric Company. The nuclear power plant supplies about 17 percent of California’s zero-carbon electricity and 9 percent of total electricity.
The CEC will publish additional analysis this year comparing the cost of alternatives to the cost of extending DCPP. At the same time, the California Public Utilities Commission is evaluating how an extension would impact electricity rates.
Ultimately, the U.S. Nuclear Regulatory Commission will consider whether to approve PG&E’s application to extend the plant’s operating license.
In a 2022 letter to the CEO of PG&E, groups representing public power utilities and electric cooperatives in Arizona made the case for extending the life of the California nuclear power plant Diablo Canyon Power Plant past its existing license.
Salt River Project Issues All-Source Request for Proposals for New Power Generation Resources
February 28, 2023
by Paul Ciampoli
APPA News Director
February 28, 2023
Arizona public power utility Salt River Project has issued an all-source request for proposals in which it seeks additional power resources that can provide at least 200 megawatts during the summer peak to be online as early as May 1, 2026, and at least an additional 300 MW by May 1, 2027.
SRP will evaluate and compare proposals that meet the minimum requirements identified in the RFP, including SRP self-developed resource options. SRP currently serves customer energy needs with a diverse fuel mix including nuclear, coal, hydroelectric, natural gas, battery storage and renewable resources including solar, wind, biomass, and geothermal.
To the extent the total requested capacity SRP is seeking is not satisfied by carbon-free resource proposals, SRP may procure up to an additional 500 MW of carbon-free resources. This is contingent on the projects being feasible, cost effective, and if SRP can accommodate these additional resources while maintaining customer reliability.
Resource projects selected through the all-source RFP process will also support SRP’s 2035 sustainability goals by adding to new renewable-resource and storage system projects SRP has under contract and expects to have online by 2025. These include 2,025 MW of added solar resources, 161 MW of wind energy, and over 1,100 MW of battery storage systems. SRP has among the largest utility-scale renewable and battery storage investments in the Western U.S.
Respondents to the all-source RFP can view the details and register here: http://srpnet.com/AllSourceRFP. Registration enables access to all RFP-related documents.
SRP will offer a web conference for respondents on March 20, 2023 and is requesting bid proposals by April 27, 2023. SRP anticipates short-list selection by Fall 2023.
Small Modular Reactor Project Being Developed by UAMPS Moves Forward
February 28, 2023
by Paul Ciampoli
APPA News Director
February 28, 2023
Participants’ governing boards in the Carbon Free Power Project being developed by Utah Associated Municipal Power Systems are moving forward with the development and deployment of a small modular reactor project, UAMPS reported on Feb. 28.
With the commitments, the CFPP Project Management Committee approved a new budget and plan of finance.
That action will move the small modular nuclear reactor project into an aggressive 2023 workplan, which focuses on completing the preparation of the application to construct and operate the plant, to be submitted to the Nuclear Regulatory Commission in January 2024.
Other activities for 2023 include the procurement of long lead material and the development of the AACE Class 2 construction estimate, which will provide a more detailed cost estimate for the project, UAMPS said.
Participants were provided an opportunity to withdraw from the project, or revise subscription levels, after costs increased above the target price due to high inflation and interest rate increases. Of the 27 participants in the project, 26 voted to continue, with one participant reducing its subscription level and one participant substantially increasing its subscription in the project.
“Despite the project’s rising costs, felt worldwide by all large energy projects due to interest rates increases and rapidly escalating inflation in commodities such as fabricated plate and structural steel, copper wire and cable, not seen for over 40 years, participants felt overwhelmingly that the CFPP remains viable and is a key energy resource for the future,” said Mason Baker, UAMPS CEO and General Manager.
“The project will support our decarbonization efforts, complement and enable more renewable energy, and keep the grid stable. It will produce steady, carbon-free energy for 40 years or longer,” he said.
CFPP Partners include NuScale Power (developer of the nuclear power modules), Fluor Corporation (construction and licensing contractor), and the U.S. Department of Energy.
The CFPP is planned to be constructed at the Idaho National Laboratory outside of Idaho Falls, Idaho, and power will be distributed among UAMPS’ members that are participating in the project.
The first module is scheduled to be operational in 2029 to meet UAMPS’ timeline for replacing aging assets.
Additional details about the CFPP are available here.
California Community Choice Aggregator MCE to Convert Peaker to Energy Storage Facility Hybrid
February 27, 2023
by APPA News
February 27, 2023
California community choice aggregator MCE’s newest resource adequacy project will convert a natural gas-fired peaker plant into an energy storage hybrid facility.
The addition of 16 megawatts of battery storage to the 48-megawatt facility enables the plant to burn significantly less fuel than a standard gas site. The project reduces particulate emissions from the facility by as much as 78%.
The new battery hybrid project in Fresno, California, was created in partnership with Wellhead Power eXchange, LLC, using their Hybrid ElectricGas Turbine technology that was co-developed with General Electric.
The battery will shorten the amount of time the natural gas plant is operating while increasing the quality of its reliability services which support wind and solar generation, MCE said.
Based on previous hybrid conversions, the Wellhead project is expected to reduce greenhouse gas emissions by up to 60% and water usage by up to 80%.
Serving a 1,200 MW peak load, MCE provides electricity service and programs to more than 580,000 customer accounts and 1.5 million residents and businesses in 37 communities across four Bay Area counties: Contra Costa, Marin, Napa, and Solano.
EIA Reports Western Hydropower Generation Rose 13% in 2022
February 27, 2023
by Paul Ciampoli
APPA News Director
February 27, 2023
After decreasing to a 20-year low for the 2020–21 water year, hydropower production in the western U.S. increased slightly during last year’s water year, rising 13% to reach 161 million megawatt-hours, the Energy Information Administration reported.
Western hydro generation can vary significantly from year to year because it follows rain and snowpack patterns. A water year covers the 12-month period from October 1 through September 30. The water year follows the water cycle. Precipitation in the fall or early winter does not affect stream and river flows until the following spring and summer, EIA noted.
The western U.S. produced 61% of the country’s hydroelectricity last water year (2021–22).
Increases in hydropower generation in the region’s three largest hydropower-producing states—Washington, Oregon, and California — drove last year’s rise in western hydroelectric generation. Combined, these states made up 82% of western hydropower generation in the 2021–22 water year.
Data from the Northwest River Forecast Center and the California Department of Water Resources show that increased precipitation in the 2021–22 water year fueled the increased hydropower generation in these states.
Washington’s Grand Coulee Dam generated 21.5 million MWh of electricity during the 2021–22 water year, 19% more than it did in the previous water year.
Although hydropower generation in some western states, including Montana, Idaho, and Colorado, was relatively unchanged, well-below-normal flow rates in the Lower Colorado River reduced hydropower generation in Arizona and Nevada.
In the 2021–22 water year, the Hoover Dam generated 10% less electricity than it did in the previous water year because the water level of the dam’s reservoir continued to decline during a historic drought.
From December 2022 to January 2023, a series of atmospheric rivers drenched parts of the western United States, especially California, with large amounts of rain and snow. The snowfall helped establish significant snowpack at high elevations and somewhat replenished reservoirs after years of drought.
EIA said the excessive rainfall in California may have improved the prospects for hydropower production in the state this summer.
EIA forecasts hydropower generation for electricity market regions, rather than at the state level, in its short-term energy outlook.
In the latest STEO, it forecasts that total hydropower production in the western market region (California, Southwest, plus Northwest and Rockies) in the 2022–23 water year will decline slightly, by 4%, from the last water year.
Western Area Power Administration Issues RFIs for Power Supplies
February 21, 2023
by Paul Ciampoli
APPA News Director
February 21, 2023
The Western Area Power Administration has issued requests for information for the procurement of electric generation. One of the RFIs is for short- to mid-term procurement, while the second RFI is for long-term procurement. Responses are due by February 24.
WAPA issued the RFIs through the Colorado River Storage Project Management Center and in collaboration with several of its preference power customers.
The short- to mid-term (1-5 years) RFI notes that CRSP and the participating customers would like to identify up to 400 megawatts of existing or potentially new electricity generation, including a broad range of traditional sources and carbon emissions free sources to meet the firm and non-firm energy requirements associated with federal power marketing contractual arrangements with municipalities,
federal agencies, state agencies, Native American Tribal Organizations, and Joint Action Agencies.
Under the long-term (5-25 years) RFI, CRSP and the participating customers would like to identify up to 400 MW of existing or potentially new electricity generation.
Under both RFIs, the intention is for CRSP to enter into a purchase power agreement or agreements for
replacement power and/or facilitate PPA(s) through participating customers.
The RFIs are available for download here.