Saturday, October 07, 2006

The National Energy Policy (Click on for pdf)

On pages 112 through 114 the 'energy grid' is discussed. On page 112 there is a map of large capacity energy lines in the USA. The map starts on 111, but, I am more interested in the map on 112 and in particular the AC-DC-AC ties. They are noted to exist in Texas. Only in Texas, or to be absolutely correct very near Texas.

On page 114, there is a map of these 'ties' and the problem with effective transmission along those ties because of demand and the ability to supply high demand through them. In particular on the red, white and blue map there are arrows that point out the 'congestion' issues.

Why then?

Why then is Texas going to have the 'corner' on new nuclear energy plants IF the existing infrastructure is compelety inadequate?

Hm?

Exelon is a Chicago based company. Why Texas? It's inadequate to begin with.

Exelon studies 8 Texas sites for nuclear reactor (From the Washington Post)
ReutersFriday, October 6, 2006; 8:35 PM


HOUSTON (Reuters) - Exelon Corp. (EXC.N), the largest U.S. nuclear power producer, said it is "actively" evaluating eight sites in Texas as possible locations for a new nuclear reactor, a spokesman said on Friday.

Chicago-based Exelon, which entered the Texas generation market in 2002 with the purchase of two aging natural gas-fired power plants from TXU Corp. (TXU.N), became the fourth company last week to say it wants to apply for a license to build a nuclear plant in Texas to meet growing power needs.

Of the 19 preliminary proposals for new U.S. reactors, Texas has attracted the most interest, with four proposals, according to data from the Nuclear Energy Institute.

The industry, dormant since the 1979 accident at the Three Mile Island nuclear station in Pennsylvania, is undergoing a rebirth amid growing environmental concern about carbon emissions from fossil-fuel plants and rising costs of natural gas.

President George W. Bush supports new nuclear construction and energy legislation passed in 2005 offers billions of dollars in incentives to owners of the first new plants to go into service.
Two other Texas generators,
NRG Energy Inc. (NRG.N) and TXU Corp., have proposed new reactors in the Electric Reliability Council of Texas, which serves about 85 percent of the state's power needs. In addition, an Amarillo-based real estate developer is working to attract a reactor to the panhandle region, outside ERCOT.

Exelon has not disclosed the size of the nuclear plant it is considering in Texas, but has narrowed its choice of reactor design to the General Electric ES Boiling Water Reactor of the Westinghouse Advanced Passive 1000 design, according to its letter of intent filed with federal regulators.
Princeton, New Jersy-based NRG owns 44 percent of the 2,560-megawatt South Texas Project, located southwest of Houston, while Dallas-based TXU owns 100 percent of 2,300-MW Comanche Peak station southwest of Fort Worth.


In June, NRG proposed adding two reactors, totaling 2,700 MW, at the South Texas location.
TXU said it was studying an expansion at Comanche Peak but did not disclose how much capacity it might build. TXU also said it was looking at other sites in Texas and sites outside the state.


Exelon spokesman Craig Nesbit said the company is pursuing a new Texas reactor on its own, but he would not dismiss the idea of a partnership with one of the other companies. "I would never shut the door on anything," he said.

Both NRG and TXU have said they would like to reduce the risk of building new reactors by attracting partners.

Exelon filed its letter with the Nuclear Regulatory Commission September 29, three days after TXU Chairman C. John Wilder told analysts in New York that the companies had dropped plans to swap assets.

Wilder said TXU was interested in an "asset swap" with Exelon to expand its generation outside Texas while helping Exelon alleviate market-power concerns related to its proposed merger with Public Service Enterprise Group (PEG.N).

Exelon called off the $17.7 billion merger in mid-September, citing problems obtaining approval of the deal in New Jersey.

TXU, already the largest power generator in Texas, faces market-power limits as it seeks permits to build 9,000 MW of coal-fired generation to be completed before any new nuclear plants.

Exelon is also considering adding reactors in Illinois and as part of NuStart, a 12-member consortium looking at sites in Tennessee and Mississippi.