The filing was made under the New Nuclear Incentive Rule established by the Louisiana Public Service Commission in 2007 to provide the LPSC regulatory oversight of new nuclear plant construction in the state
– By April Murelio –
Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. has submitted a filing to the Louisiana Public Service Commission asking for approval to continue the early development activities necessary for the future construction of a new nuclear plant (River Bend 3) at the River Bend site in St. Francisville, La. No decision has been made to build a new nuclear plant, and in the filing, the companies are not asking for approval to construct one.
Rather, the companies are seeking approval to continue, at a measured pace, the development activities necessary to keep the option of new nuclear generation available for customers when needed and in time to meet the milestones for incentives that may be made available by the federal government in the future.
The filing was made under the New Nuclear Incentive Rule established by the Louisiana Public Service Commission in 2007 to provide the LPSC regulatory oversight of new nuclear plant construction in the state.
The companies have a sustained need for baseload resources, and developing and maintaining new nuclear as a generation option could result in significant customer savings relative to other generation options.
“Although no decision has been made to build a new nuclear plant, we are taking the necessary steps to ensure we can provide economic generation resources for customers in the future,” said Renae Conley, president and chief executive officer of Entergy Louisiana and Entergy Gulf States Louisiana. “Continuing the present development efforts will provide the companies with the needed information to properly evaluate all generation alternatives that can meet customer needs and position the companies to take action when it is appropriate.”
The companies’ existing nuclear baseload generation has proven it is a low-cost form of baseload generation and has contributed to energy independence by reducing the companies’ reliance on fossil fuels. The existing nuclear units have saved customers hundreds of millions of dollars in fuel costs and have played a critical role stabilizing electricity costs during times of natural gas price volatility.
The development of a viable new nuclear option is an important component of long-term generation resource planning for the utilities, particularly if CO2 legislation is passed, or gas prices increase. Nuclear plants are a carbon-neutral generating resource, and its costs are not dependent upon the price of natural gas.
The requested certification would preserve the companies’ ability to develop and construct new nuclear generation on a schedule that could allow a new nuclear unit to provide reliable and economic baseload power at River Bend as early as 2024, should the option prove to be economically attractive relative to other baseload generation options.
Both Entergy Louisiana and Entergy Gulf States Louisiana need additional baseload generation, and that need is expected to grow over time. The companies plan to participate in the River Bend 3 project on an equal, or fifty-fifty, basis.
In 2008, Entergy’s nuclear organization submitted a construction and operating license application to the Nuclear Regulatory Commission for the River Bend Station that referenced the GE Hitachi Economic Simplified Boiling Water Reactor technology. Subsequently, the two companies were unable to come to mutually agreeable business terms, and Entergy’s nuclear organization asked the NRC to temporarily suspend certain review activities related to the construction and operating license application. Work on the application was stopped at a point that would preserve the work accomplished to date so that the results could be used if and when the application process is resumed.
The certification of the companies’ preliminary development activities would allow the companies to continue to monitor progress in the NRC design certification of reactor vendor technologies, such as the ESBWR, and the commercial terms and conditions from reactor vendors and their partners, as well as federal incentives. This would position the companies to take timely action so that the benefits of new nuclear generation could be made available to customers.
Through Jan. 31, the companies have incurred approximately $50.5 million in early nuclear development costs related to the River Bend site. In the filing, the companies indicate that the costs will continue to be deferred at this time.
Entergy’s nuclear organization supports funding for federal incentive programs for new nuclear plants and was pleased to see additional funding for potential new nuclear plants in the federal budget. Additional funding, if approved, would be another positive step to help foster clean, efficient baseload energy and energy independence for America. The current funding level of $18.5 billion would cover approximately two to three plants, and many more are needed. An additional $36 billion in funding has been proposed.
Entergy’s Louisiana utility companies serve more than one million customers through the operating companies Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. With operations in southern, central and northeastern Louisiana, the companies are part of Entergy Corporation’s electric system serving 2.7 million customers in Louisiana, Arkansas, Mississippi and Texas.