#FactCheckFriday
🧵/1
Let's take a look at how many reactors are REALLY eligible for @ENERGY's Civil Nuclear Credit program.
Hint: It's less than this article states.
Dozens of US nuclear plants could qualify for DOE credit program spglobal.com/marketintellig… @SPGMarketIntel
🧵/1
Let's take a look at how many reactors are REALLY eligible for @ENERGY's Civil Nuclear Credit program.
Hint: It's less than this article states.
Dozens of US nuclear plants could qualify for DOE credit program spglobal.com/marketintellig… @SPGMarketIntel
/2
The article claims dozens of reactors could qualify for the bailout, and include a list of reactors located in what are called organized markets but that is NOT the same as the baseline criterion in DOE’s guidance or the legislation.
The article claims dozens of reactors could qualify for the bailout, and include a list of reactors located in what are called organized markets but that is NOT the same as the baseline criterion in DOE’s guidance or the legislation.
/3
The DOE guidance and legislation require reactors to be merchant reactors that generate a majority of their revenue by selling power and services on competitive wholesale markets or through competitively-awarded bilateral contracts.
The DOE guidance and legislation require reactors to be merchant reactors that generate a majority of their revenue by selling power and services on competitive wholesale markets or through competitively-awarded bilateral contracts.
/4
The article lists quite a few utility-run, non-merchant reactors that happen to be located in organized markets (MISO, SPP, and CAISO, e.g.), so it clearly overestimates the number of reactors that could be eligible for the subsidy program.
The article lists quite a few utility-run, non-merchant reactors that happen to be located in organized markets (MISO, SPP, and CAISO, e.g.), so it clearly overestimates the number of reactors that could be eligible for the subsidy program.
/5
The article does mention the profitability criterion but it doesn’t mention any of the other criteria reactors must meet to qualify for the bailouts: emissions impacts of closure, ability to operate at lower or no subsidies in the future, etc.
The article does mention the profitability criterion but it doesn’t mention any of the other criteria reactors must meet to qualify for the bailouts: emissions impacts of closure, ability to operate at lower or no subsidies in the future, etc.
/6
The Civil Nuclear Credit is a federal nuclear bailout in search of a justification. The nuclear industry isn’t interested because it is too limited in scale and has too many strings attached.
The Civil Nuclear Credit is a federal nuclear bailout in search of a justification. The nuclear industry isn’t interested because it is too limited in scale and has too many strings attached.
/7
We’ve been saying for years that state and federal governments couldn’t go through with nuclear bailouts if they actually had to be justifiable and weighed against the alternatives. That’s what this case ought to prove.
We’ve been saying for years that state and federal governments couldn’t go through with nuclear bailouts if they actually had to be justifiable and weighed against the alternatives. That’s what this case ought to prove.
/8
Is @ENERGY scrambling to repurpose the $6 billion subsidy program because it became clear that there were no reactors that could qualify for it?
Is @ENERGY scrambling to repurpose the $6 billion subsidy program because it became clear that there were no reactors that could qualify for it?
/9
If dozens of reactors were going to apply, DOE wouldn’t have pressure @PGE4Me and @Entergy to undo years-old plans and legal agreements in the cases of Diablo Canyon and Palisades.
nirs.salsalabs.org/palisadesdiabl…
If dozens of reactors were going to apply, DOE wouldn’t have pressure @PGE4Me and @Entergy to undo years-old plans and legal agreements in the cases of Diablo Canyon and Palisades.
nirs.salsalabs.org/palisadesdiabl…
/10
So, how many reactors WOULD qualify?
Out of the list of 39 nuclear power plants with a total of 63 reactors included in the article, there are only 39 reactors at 21 plants/sites that are merchant reactors. Of those, just 37 that actually compete in competitive markets.
So, how many reactors WOULD qualify?
Out of the list of 39 nuclear power plants with a total of 63 reactors included in the article, there are only 39 reactors at 21 plants/sites that are merchant reactors. Of those, just 37 that actually compete in competitive markets.
/11
Point Beach 1&2 are owned as merchant reactors, but they operate under a massively overpriced, long-term contract to sell 90% of their power and only sell 10% of their power on a competitive basis. Those reactors are likely quite profitable to operate.
Point Beach 1&2 are owned as merchant reactors, but they operate under a massively overpriced, long-term contract to sell 90% of their power and only sell 10% of their power on a competitive basis. Those reactors are likely quite profitable to operate.
/12
Of the 37 merchant reactors, 18 are already being bailed out under state subsidy programs & would likely not qualify:
CT: Millstone 2&3
IL: Braidwood 1&2, Byron 1&2, Clinton, Dresden 2&3, Quad Cities 1&2
NJ: Hope Creek, Salem 1&2
NY: Ginna, FitzPatrick, Nine Mile Point 1&2
Of the 37 merchant reactors, 18 are already being bailed out under state subsidy programs & would likely not qualify:
CT: Millstone 2&3
IL: Braidwood 1&2, Byron 1&2, Clinton, Dresden 2&3, Quad Cities 1&2
NJ: Hope Creek, Salem 1&2
NY: Ginna, FitzPatrick, Nine Mile Point 1&2
/13
Of the remaining 19, a few are likely projected to be profitable and would not be eligible. With electricity market prices soaring, even reactors that have been economically struggling could be raking profits at the moment.
Calvert Cliffs 1&2
LaSalle 1&2
Seabrook
Of the remaining 19, a few are likely projected to be profitable and would not be eligible. With electricity market prices soaring, even reactors that have been economically struggling could be raking profits at the moment.
Calvert Cliffs 1&2
LaSalle 1&2
Seabrook
/14
That leaves 14 reactors that might be able to submit a feasible bid, since DOE has set aside the requirement that reactors’ closures have been announced:
Beaver Valley 1&2
Comanche Peak 1&2
Davis-Besse
Perry
Limerick 1&2
Peach Bottom 2&3
South Texas 1&2
Susquehanna 1&2
That leaves 14 reactors that might be able to submit a feasible bid, since DOE has set aside the requirement that reactors’ closures have been announced:
Beaver Valley 1&2
Comanche Peak 1&2
Davis-Besse
Perry
Limerick 1&2
Peach Bottom 2&3
South Texas 1&2
Susquehanna 1&2
/15
The other 23 reactors are all utility-run, meaning they get their costs covered through either approved rates (with a profit margin) or they are run by non-profit utilities that set their own rates (public power companies or cooperatives).
The other 23 reactors are all utility-run, meaning they get their costs covered through either approved rates (with a profit margin) or they are run by non-profit utilities that set their own rates (public power companies or cooperatives).
/16
Utility run reactors:
Arkansas Nuclear One 1&2
Callaway
Cooper
Diablo Canyon 1&2
Donald C. Cook 1&2
Fermi
Grand Gulf
Monticello
North Anna 1&2
Palo Verde 1,2,&3
Prairie Island 1&2
River Bend
Surry 1&2
Waterford 3
Wolf Creek
Utility run reactors:
Arkansas Nuclear One 1&2
Callaway
Cooper
Diablo Canyon 1&2
Donald C. Cook 1&2
Fermi
Grand Gulf
Monticello
North Anna 1&2
Palo Verde 1,2,&3
Prairie Island 1&2
River Bend
Surry 1&2
Waterford 3
Wolf Creek
/17
From @toledonews - "Ohio’s two nuclear plants, Energy Harbor’s Davis-Besse nuclear plant east of Toledo and its Perry nuclear plant east of Cleveland, likely won’t qualify, though."
toledoblade.com/business/energ…
From @toledonews - "Ohio’s two nuclear plants, Energy Harbor’s Davis-Besse nuclear plant east of Toledo and its Perry nuclear plant east of Cleveland, likely won’t qualify, though."
toledoblade.com/business/energ…
/end
Thanks for reading our long thread on the DOE subsidy program and the ownership profiles of reactors in response to @mollyknc in @SPGlobal.
Learn more and take action to ensure @ENERGY follows its own criteria in awarding the CNC subsidies here: nirs.salsalabs.org/palisadesdiabl…
Thanks for reading our long thread on the DOE subsidy program and the ownership profiles of reactors in response to @mollyknc in @SPGlobal.
Learn more and take action to ensure @ENERGY follows its own criteria in awarding the CNC subsidies here: nirs.salsalabs.org/palisadesdiabl…
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