Trends and impact of prudence challenges on operating nuclear plants
- Richard Metzler Associates, Northbrook, IL (USA)
Although the concept and standard for prudence associated with capital investments were first defined by U.S. Supreme Court Justice Brandeis in 1923, prudence reviews have become a growing phenomenon within the electric utility industry over the past decade. These examinations were primarily initiated by state public utilities commissions (PUCs) in response to public and political pressure in the evaluation of delays, cancellations, and cost overruns associated with large nuclear construction projects. The early application of the prudence standard was intended to be, not so much a part of the normal means of regulatory oversight, but a specific review of the management process that could not be adequately addressed within the existing regulatory framework. Since these initial construction reviews, however, the regulators have found the prudence examination to be an effective regulatory tool to evaluate other utility functions, operations, and projects. The broadening in application and scope of these reviews has introduced a new and growing dimension of concern for utility management. The primary target for prudence challenges has been the utility's decision-making process, which typically has not been well defined or documented. This paper briefly presents the trends and issues of prudence within the nuclear industry to date, the form and focus of future examinations, and the strategic measures to prepare for these preemptive challenges.
- OSTI ID:
- 5490324
- Report Number(s):
- CONF-891103-; CODEN: TANSA
- Journal Information:
- Transactions of the American Nuclear Society; (United States), Vol. 60; Conference: Winter meeting of the American Nuclear Society (ANS) and nuclear power and technology exhibit, San Francisco, CA (United States), 26-30 Nov 1989; ISSN 0003-018X
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
NUCLEAR POWER PLANTS
MANAGEMENT
CAPITALIZED COST
CONSTRUCTION
DECISION MAKING
DOCUMENTATION
ELECTRIC UTILITIES
IMPLEMENTATION
PERFORMANCE
PLANNING
POLITICAL ASPECTS
PROCUREMENT
PUBLIC OPINION
REACTOR OPERATION
REGULATIONS
US DOE
US NRC
COST
INSTITUTIONAL FACTORS
NATIONAL ORGANIZATIONS
NUCLEAR FACILITIES
OPERATION
POWER PLANTS
PUBLIC UTILITIES
THERMAL POWER PLANTS
US ORGANIZATIONS
210800* - Nuclear Power Plants- Economics
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290600 - Energy Planning & Policy- Nuclear Energy