Energy Policy / Nuclear Power Would Help State Cope With Future Shortages

By John Watkins

A column I wrote not long ago focused on some of the consequences of weather events in this country that have brought energy needs and resources to everyone’s attention. The particular resource of interest in that piece was natural gas. As Americans, and particularly as Virginians, there are other resources on which we should focus our attention. In recent months, a special subcommittee of the Virginia Coal and Energy Commission has been looking at energy policies in Virginia on a more strategic scale. These policies will affect the quality of life and the economic stability of this Commonwealth.

Electricity consumption in the United States has been projected to increase by almost 50 percent between the years 2002 and 2025. When you consider the fact that in many instances it requires at least 10-15 years to design, plan, permit, and construct a base- load generating station, we are running short on time in order to meet the future demands. Another consideration is our ability to assure the public of the safety, efficiency, and environmental soundness of future facilities. The third factor is to utilize resources that are not dependent upon foreign suppliers.

With all of these things in mind, it becomes extremely evident that the nation and certainly Virginia need to look to nuclear energy as a significant part of our response. We have in Virginia two nuclear power stations that collectively operate four separate units. These four units produce 3,467 megawatts (MW) of total (net) capacity at an extremely low cost, as compared to generating stations using other fuel sources. There are no atmospheric emissions from nuclear power stations. There is an abundant fuel supply available for these nuclear power stations’ units in this country and on the world market.

Investment and Uncertainty

Unfortunately, there have been no new nuclear units built in this country for nearly two decades and we might ask why. Building a nuclear power station requires a tremendous capital investment, and there was a considerable amount of uncertainty as to the total cost because of the changes to the design criteria that typically took place during construction and other unforeseen elements. Regulators were reluctant to allow full recovery of cost when a very expensive nuclear plant came on line. No chief executive officer wanted to “bet the company” by embarking on a nuclear generating facility that would face the uncertainty of cost recovery on such an investment.

Even if a new facility were constructed in accordance with Nuclear Regulatory Commission criteria, in some cases, it would have great difficulty getting an operating license due to over-ambitious regulatory red tape. Opponents of nuclear power learned that they could exploit the cost escalation, delay, or block issuance of operating licenses and raise alarm over nuclear waste so as to make such investments prohibitively expensive. It is ironic that those nuclear plants that were constructed and licensed during that era now constitute an indispensable and economical source of power for our nation.

Studies conducted by the Southern States Energy Board and the National Energy Policy Development Group have both identified continued use of nuclear energy as essential to sustaining the nation’s economic growth and to our standard of living. Both reports pointed to the need to extend the licenses on existing units where adequately justified and to remove barriers to future deployment of nuclear energy generating stations. This includes addressing radioactive waste disposal issues and streamlining the licensing process to provide needed certainty for investors. These two reports have been issued since 2000: one entitled “Energy Policy in the South” by the Southern States Energy Board, and the other, “National Energy Policy,” by the Energy Policy Development Group. Though somewhat dated, the conclusions remain valid and probably more acutely so today as we realize our vulnerability in terms of gas and oil resources.

‘Early Site’ Permitting

Fortunately, steps have recently been taken towards maintaining the availability and expanding the use of nuclear energy. The Nuclear Regulatory Commission (NRC) has provided a mechanism referred to as “early site permits,” which will enable investors to resolve siting issues and to identify suitable sites for potential nuclear generating stations in a more timely fashion. Additionally, the NRC has adopted a Combined Construction and Operating License procedure that will reduce uncertainty and shorten the timeframe necessary for the permitting process. Utilities, including Dominion, have come forward to participate in these innovative regulatory programs. In addition, we should note that existing nuclear facilities have an impressive performance record. Since 1990, existing nuclear units’ increased generation due to improved availability and performance is the equivalent of adding 26 new 1,000 MW power plants.

Virginia is in a very desirable position to take advantage of these regulatory opportunities to enhance our future electricity production capabilities with additional nuclear base-load units. We have also seen 20-year license extensions granted on Dominion’s four existing units in Virginia, and this is a clear indication of the soundness and safety that is attributable to the design and operation of those units.

The facts regarding nuclear energy clearly demonstrate that in order to meet the growing energy demands of our citizens and our economy, Virginia must include in its strategic energy policy efforts toward facilitating future nuclear energy development. Strategic energy policy development at the state level should give Virginia the opportunity to appropriately establish incentives for long-term plans for meeting energy needs that maintain a balance of diverse energy sources.

John Watkins represents the 10th District in the Virginia State Senate.

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