Capturing stranded value in nuclear plant assets

Journal Article · Sat Jun 01 04:00:00 EDT 1996 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(96)80232-6· OSTI ID:379389

Schoenberger, R G; Cudlin, R L

The New York Power Authority owns and operates two nuclear plants - generating assets that demand innovative approaches in an increasingly competitive market for electricity. NYPA plans to turn to the specialized skills of one of the industry`s best nuclear operators, with the goal of maximizing the plants` value and yielding lower cost electricity for its customers. In the transition to a competitive electric power business, much of the power industry`s focus has been directed at the issue of stranded assets, particularly those associated with investments in nuclear plants. Many nuclear plants are struggling with the twin disabilities of relatively low and/or variable operating performance and high costs. The result is a cost for power that may not be fully recovered in the marketplace, thus stranding part or all of the asset`s value. At the NYPA attention has been on the flip side of stranded costs: what they term the stranded value associated with nuclear plants. They view stranded value as the potential additional value - increased power generation and reduced costs, while maintaining high levels of safe operations - that could be obtained from an average nuclear plant if it could be operated at the performance levels attained by the best neclear plant operators in the country. They do not accept current performance or industry averages as a given. They expect to deliver the full potential value of their nuclear assets to their customers by implementing a new operating strategy.

• OSTI ID: 379389
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 5 Vol. 9; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
INCOME
INVESTMENT
NEW YORK
NUCLEAR POWER PLANTS
OPTIMIZATION
POWER GENERATION