Economic and Market Challenges Facing the U.S. Nuclear Commercial Fleet

Technical Report · Thu Sep 01 04:00:00 EDT 2016

DOI:https://doi.org/10.2172/1364498· OSTI ID:1364498

Szilard, Ronaldo ^[1]; Sharpe, Phil ^[1]; Kee, Edward ^[2]; Davis, Edward ^[2]; Grecheck, Eugene ^[3]

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1. Idaho National Lab. (INL), Idaho Falls, ID (United States)
2. Nuclear Economics Consulting Group, Washington, DC (United States)
3. Grecheck Consulting LLC, Midlothian, VA (United States)

This report identifies underlying economic and electricity market factors that have led to early retirements of U.S. operating nuclear power plants, assesses the Gap between operating revenues and operating costs for selected nuclear power plants, and discusses a range of actions that might be taken to stop early retirement of operating nuclear power plants. The Kewaunee and Vermont Yankee nuclear power plants were retired early for economic and financial reasons. Early retirement has been announced or proposed for Clinton and Quad Cities in Illinois, Fitzpatrick and Ginna in New York, Fort Calhoun in Nebraska. Other nuclear power plants, including Palisades, Davis-Besse, Prairie Island, and Three Mile Island Unit 1, have been identified as facing financial stress that might lead to early retirement. The early retirement of operating nuclear power plants will mean the loss of a large amount of zero-emission electricity, inconsistent with the goal of reducing carbon emissions in the electricity sector. This report provides a high-level view of the major factors driving early retirement: • The U.S. market and private ownership approach to the electricity sector; • Low electricity market prices resulting from low natural gas prices, low demand growth, increased penetration of renewable generation, and negative electricity market prices; and • No compensation to nuclear power plants for public benefits including zero-emission electricity.

• Research Organization: Idaho National Laboratory (INL), Idaho Falls, ID (United States)
• Sponsoring Organization: USDOE Office of Nuclear Energy (NE)
• DOE Contract Number: AC07-05ID14517
• OSTI ID: 1364498
• Report Number(s): INL/EXT--16-39951
• Country of Publication: United States
• Language: English

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