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News

America’s nuclear energy facilities have launched a multi-year initiative to safely generate electricity that the nation uses more efficiently and economically. The initiative was announced in December by the Nuclear Energy Institute (NEI), which is coordinating the multifaceted effort in tandem with member electric utilities and member power producers – including USA fleet members – the Institute of Nuclear Power Operations (INPO) and the Electric Power Research Institute (EPRI).

The initiative, titled “Delivering the Nuclear Promise: Advancing Safety, Reliability and Economic Performance,” comes with nuclear energy facilities operating at sustained high levels of safety – as documented by an array of performance metrics – but earning less revenue during an unprecedented era of low natural gas prices and subsidies for other electric sources.

As part of the initiative, the industry will analyze cost drivers common to all nuclear power plants and recommend programs and processes to improve their efficiency and effectiveness. The goal is to identify innovative solutions by 2018 that will enable plant operators to significantly reduce operating expenses.

“We want to encourage bold ideas, not just tweak current processes,” said NEI Chief Operating Officer Maria Korsnick. “We are operating in markets with a glut of natural gas at historically low prices, concurrent with low growth in electricity demand nationally. We are seeking to redesign fundamental plant processes to significantly improve operational efficiencies and effectiveness, and in the process make nuclear energy facilities more economically viable.”

Talen Energy Senior Vice President and Chief Nuclear Officer Tim Rausch, who serves as Board Chairman of the Utilities Service Alliance (USA) and Chairman of the EPRI Nuclear Power Council, has been chosen to serve on the steering committee for “Nuclear Promise” to enhance the safety, efficiency and cost-competitiveness of America’s nuclear power plants. Tim is one of ten CNOs serving on the steering committee:

Corrective Action Program – Danny Bost, Southern Nuclear

Engineering – Tim Rausch, Talen Energy

Preventive Maintenance Templates – Neil Wilmshurst, EPRI

Radiation Protection – Fadi Diya, Ameren Missouri

Regulatory Efficiency – Mano Nazar, NextEra Energy

Security – Bryan Hanson, Exelon

Training – Randy Edington, Arizona Public Service

Work Management Execution – Tim O’Connor, Xcel Energy

Work Management Preparation – Dennis Koehl, STP Nuclear Operating Company

Supply Chain – Adam Heflin, Wolf Creek Nuclear Operating Corp.

Tim was chosen to lead the Engineering discipline, identifying engineering processes and efficiencies as a strategy to standardize them across the industry. This objective will make it easier to safely and efficiently execute engineering tasks common to every US nuclear station. Whether your home nuclear station is Susquehanna, Prairie Island, Columbia, Fermi or South Texas Project, the goal is to allow engineering skill sets to be applied almost immediately at any nuclear plant in the US – improving efficiencies and reducing operating costs.

“The goal is to standardize processes across the industry in order to drive up efficiencies and drive down operating costs,” said Tim in a recent interview. “Susquehanna generates approximately 2600MW of power – one of the largest Boiling Water Reactor’s in the US – and that has protected us from the fate which has befallen smaller nuclear plants because they were no longer cost competitive. I’m pleased and honored to represent Susquehanna and USA in this position. The challenge will be great and I’m looking forward to the opportunity.”

In the last two years, nuclear power plants in Vermont and Wisconsin were retired prematurely because they were no longer cost competitive. Two more plants – one in New York and one in Massachusetts – will be retired in the next two years because they, too, are no longer cost-competitive. More broadly, NEI reported that the average cost to generate a megawatt-hour of electricity at the nation’s nuclear power plants has increased 28 percent in the last 12 years.

CNOs from across the industry are aligned in their commitment to implement the strategic plan and its goals, with governance by utility chief executive officers. The teams will be assisted by working groups from the industry, in coordination with the EPRI, INPO and NEI.