News

California: Nuclear Plants May Need $5.6 Billion in Cooling Retrofits

November 20, 2008
By Jeff Stanfield
http://www.snl.com/interactivex/article.aspx?CdId=A-8719626-10846  
The California Energy Commission on Nov. 20 adopted a report warning that the state's two nuclear plants may be required to conduct more than $5.6 billion worth of cooling system retrofits if another state agency adopts regulations to outlaw the "once-through" cooling systems both plants use."A restriction on the use of once-through cooling in California is likely to be implemented in the future," the report said. "If the [State Water Resources Control Board] preliminary draft policy is adopted, Diablo Canyon and [San Onofre Nuclear Generating Station] would need to either adopt closed-cycle cooling systems or reduce the negative effects of their once-through cooling systems to a level comparable to the effects of a closed-cycle system."
The commissioners said nothing about that part of the 331-page "AB 1632 Assessment of California's Operating Nuclear Plants" final report, but instead focused on what they saw as a need for continued monitoring of seismic conditions around the nukes to evaluate the risks of extended plant outages from earthquakes or tsunamis.
Pacific Gas and Electric Co. Counsel Scott Galati told the commissioners that the U.S. Geological Survey has found a potential offshore fault near the Diablo Canyon nuclear station of which PG&E was previously unaware. Galati said the fault does not appear to present as big a threat as the previously known Hosgri fault. The Hosgri hazard is debated among scientists, according to the commission's just-approved report, but Galati said the plant has been designed to withstand an earthquake originating there. The offshore Hosgri fault zone is 2.8 miles west of Diablo Canyon.
The report also said there are major uncertainties regarding the seismology near Southern California Edison Co.'s seaside San Onofre plant, called SONGS. A nearby offshore fault zone connects faults in the Los Angeles and San Diego regions, but much is unknown about the seismic structure and stability.
The report, prepared for the commission by MRW & Associates Inc., said studies with newer technologies, such as three-dimensional geophysical seismic reflection mapping, are needed to resolve questions about the extent of the hazards for both Diablo Canyon and SONGS.
Commissioner Jeffrey Byron told PG&E and SoCalEd representatives that the utilities should provide status reports to the commission on their continued efforts to explore the fault zones around their plants. He noted that interest has intensified since a major earthquake in Japan in July 2007 knocked out the world's largest nuclear plant located there. He said Japan is still juggling for replacement power as repairs on the Kashiwazaki-Kariwa nuclear plant continue.
New regulations could shake nukes too
California's regulators may be a more immediate threat to the nuclear plants, which account for 12% of the state's electricity supply.
The report concluded that "while the regulations are still being finalized, it appears possible that Diablo Canyon and SONGS will be required to replace their cooling systems or to retrofit them in a manner that significantly reduces marine impacts."
Extended outages would be required to complete the projects, the report said. It said that the California Ocean Protection Council in 2006 commissioned a consulting firm, Tetra Tech, to evaluate the feasibility of converting the cooling systems to wet cooling towers. Tetra Tech estimated the total net present cost for cooling system retrofits at Diablo Canyon and SONGS to be $3.02 billion and $2.62 billion, respectively, but the utilities said those estimates are too low.
In comments regarding the Tetra Tech report, both PG&E Corp. subsidiary PG&E and Edison International subsidiary SoCalEd responded that a retrofit is not feasible, the commission's just-adopted report said. PG&E estimated its nuclear plant would have to be sidelined for 12 to 18 months to make the conversion and that replacement power costs alone would be up to $2 billion.
The energy commission has previously called for caution in dealing with the nukes on this issue.
"The Energy Commission's 2007 Environmental Performance Report produced recommendations to retire or repower numerous aging once-through cooling power plants by 2012," the report said."However, it recognized that California's nuclear power plants present special circumstances due to their size, costs, and unique contribution to grid stability, fuel diversity, and resource adequacy, and therefore 'should be evaluated carefully before new regulations on once-through cooling are finalized in California.'"
The commission's just-adopted report was prepared in response to a law passed from legislation that Assemblyman Sam Blakeslee initiated to require the commission review policy and reliability issues associated with the use of California's nuclear plants. The report also delved into plant aging, safety, economic impacts, prospects for relicensing, nuclear waste, the role in the power system and alternative supply options.