NRC Issues Subsequent License Renewals for First Time to Nuclear Reactors in Florida

LCG, December 11, 2019--The Nuclear Regulatory Commission (NRC) staff recently approved Florida Power & Light's (FPL's) application for an additional 20 years of operation for Turkey Point Nuclear Generating Units 3 and 4. This is the first time the NRC has issued renewed licenses authorizing reactor operation from 60 to 80 years. The subsequent (or second) license renewals (SLRs) for Turkey Point Unit 3 and Unit 4 now expire on July 19, 2052 and April 10, 2053, respectively.

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New York Poised to Close Last Coal-fire Power Plant

LCG, December 4, 2019--The last operating coal-fired power plant in New York is moving toward closure shortly. Last month, Somerset Operating Company, a subsidiary of Riesling Power LLC, submitted a request to the New York State Public Service Commission (NYSPSC) to waive the state's required, 180-day notice to close the Somerset Station, allowing the facility to be retired on February 15, 2020. Closure is contingent on approvals by both NYSPSC and the New York Independent System Operator (NYISO), which will evaluate if it will cause an adverse effect on grid reliability.

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Industry News

California Hopes to Renegotiate Power ContractsAs Large Users Sign Their Own Supply Deals

LCG, Oct. 22, 2001--Energy advisors to California Gov. Gray Davis said on Friday that the state intended to press ahead in its attempts to renegotiate some of the power purchase agreements entered into by the state Department of Water Resources.

The water agency signed more than 50 contracts with independent power producers for some $43 billion worth of electricity to be delivered mostly over the next ten years, but with one contract extending 20 years into the future.

The cost of power under those contracts averages about $69 per megawatt-hour, more than twice the current market rate.

State records show that many large power customers aren't waiting around to see what the state will pay for power and are arranging their own deals with power suppliers. That move could leave householders and small commercial customers on the hook for the high-priced power.

"This stampede could shift over $8 billion in costs to these consumers in coming years," said state Treasurer Phil Angelides, who added "It isn't fair and it isn't right."

State officials say that not all of the power contracts will be renegotiated, but decline to say which.

"Certainly we're not targeting every contract," said Barry Goode, Davis' legal affairs secretary. "Long-term contracts have been extremely valuable in keeping the market stable."

Separately, the California Department of Water Resources, which also makes spot market power purchases to serve the day-to-day needs of the state's cash-strapped investor-owned utilities, said it expects its total electricity costs for the three utilities to be $17.2 billion by December of next year, a sharp drop from its earlier estimate of $21.4 billion.

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