Nov 13

November 2009 Vol. 153 No.
11
www.powermag.com
Vol. 153 No. 11 November 2009
Top Plants:
Two Innovative Nuclear Plants
Special Report: Power in Chile

EUCG: Benchmarking
Nuclear Plant Operations
Modeling and Simulation
Expedite Maintenance
Vogtle Leads
in New Nuclear Race
circle 1 on reader service card
Established 1882 Vol. 153 No. 11
November 2009
28
TK
Large
Valve
Inventory
Petrovalve
ON THE C OVER
In January, Pacific Gas & Electric Co. replaced the steam generators in Unit 1 of its 2,300MW Diablo Canyon Nuclear Power Plant in a very short 58-day refueling outage. The contract schedule specified 58 days and 14 hours breaker to breaker for the outage. Unit 2s
steam generators were replaced last year. Steam Generating Team West, a URS Washington Division/AREVA NP joint venture company, provided services for both projects. Photo
by Jim Zimmerli, courtesy PG&E
COVER STORY: NuClEaR TOP PlaNTS

28 Diablo Canyon Power Plant, San luis Obispo County, California
When the team at Pacific Gas & Electric Co.s Diablo Canyon Power Plant undertook
the replacement of four steam generators in Unit 1, they realized that the challenging
site and building configuration would require handling all components three times
rather than the usual two. Nevertheless, they completed the plants largest project
since initial construction in record time, with a superlative safety record.
34 Oconee Nuclear Station, Oconee County, South Carolina

Though many nuclear power plants are proving their operating longevity with relicensings, their control systems are becoming obsolete. A multiyear, comprehensive
controls modernization project has made Duke Energys Oconee Nuclear Station a
leader in the digital revolution at U.S. nuclear plants.
INDuSTRY TRENDS
42 Map of Nuclear Power Plants in North america
SPECIal REPORTS
POWER IN CHIlE
45 Chile Plans for Growth with all the Options Energy Mix
Chile gets high marks for its business-friendly environment, which may in some
cases make it a more attractive location for developing power generation projects
than North American and European markets. POWER partnered with Global Business Reports to learn how a stable South American democracy is tackling the challenges we all faceand a few localized ones as well.
BENCHMaRKING
74 Benchmarking Nuclear Plant Operating Costs

In an exclusive agreement with the EUCG Nuclear Committee, POWER was provided
access to the groups nuclear industry benchmarking database of performance and
operational data. All U.S., and many international, nuclear power plants are members of the committee and have contributed to its database for many years. This
month we share sample operating costs.
(800) 255-9527
www.petrovalve.com
sales@petrovalve.com
CIRCLE 4 ON READER SERVICE CARD
November 2009 POWER
www.powermag.com
MODELING & SIMULATION
82 Modeling and Simulation Tools Reduce Plant Outage Duration

Few nuclear power generators have adopted modeling and simulation tools for
outage and overhaul planningeven though their complex projects could benefit the most. Combining scanning and modeling with up-to-date planning could
take about 20% off the old industry-wide average of 78.5 days for steam generator replacement. Heres how the roll-out of an integrated, digital plan worked at
Entergy Nuclears Waterford 3 plant.
FEATURES
FUELS
90 New Nuclear Plants Are on the Horizon

Yeah, youve heard it before. But now the environment in which U.S. nuclear plants
get built is thawing a bit. Heres the latest update on whats in the planning queue.
16th AnnuAl
NUCLEAR
92 Plant Vogtle Leads the Next Nuclear Generation

Southern Nuclear is moving forward with plans to build two new AP1000 Generation III+ reactors at Plant Vogtle, which are expected to enter commercial service
in 2016 and 2017. Given the companys progress in checking off the necessary
preconstruction steps, it looks as if Vogtle will be the first of the next generation
of U.S. nuclear plants and the first to install the AP1000 reactor.
The Plant Asset

Lifecycle Event
Design. Build.
92
98 Modularizing Containment Vessels in New Nuclear Power Plants

Prefab may have a questionable reputation in the home-building market, but
when it comes to building modern nuclear power plants, modular/prefab construction techniques can not only lower costs but also improve the quality of the
final structure and shorten construction schedules. Learn how to determine if
modularization is the right approach for a particular project.
Operate. Maintain.
Discover Technologies
for All Power Plant
Lifecycle Stages
March 1-3
2010
Hilton Americas-Houston
Houston, Texas
www.digitalplantexpo.com
DEPARTMENTS
6
8
8
11
12
12
13
SPEAkING OF POwER
Time Flies
GLObAL MONITOR
worlds First EPR Gets a Roof

Three CCS Tests Launch worldwide
India Designs Thorium-Fueled Reactor for Export
New Pressurized CCS System Could Cut Energy Penalty
Europes Offshore wind Race
POwER Digest
FOCUS ON O&M
16 Catching Faults with Centralized Condition Monitoring

19 HDPE Replaces Carbon Steel in Safety-Related Pipe System
21 Scale Model Testing Confirms Adequate Refueling water Storage Tank
Vortex Allowance
26 LEGAL & REGULATORy
Conn. v. AEP: Call for Congressional Action
101 NEw PRODUCTS

108 COMMENTARy
The New Nuclear Fuel Market
By Thomas L. Neff, PhD of the Center for International Studies at MIT

2
www.powermag.com
POWER November 2009
Serving Up Perfection in Power Solutions
NV Energy Tracy Station celebration luncheon for

achieving a million work hours with no lost time
accidents.
Celebrating safety milestones is a fulfilling way to acknowledge great

achievements. On the NV Energy Tracy Station Project , CH2M HILL
performed over 1,000,000 work hours with no lost time accidents.
CH2M HILLs performance reflects the value we place on having every
employee return home each day without injury, being good stewards of
the environment, and striving for continual improvement.
CH2M HILL recently completed the
Xcel Energy High Bridge Project in
St. Paul, Minnesota.
..the performance of [CH2M HILL]
on this project has been exemplary.
Their approach to safety,
production, planning and leadership
has been impressive. Xcel and I
personally consider this project to
be near perfection. My compliments
and congratulations on a job well
done.
CH2M HILL will work with you to meet the worlds demand for energy by
safely delivering the most challenging programs and complex projects
globally and locally. Our expertise enables us to respond to your needs
quickly.
CH2M HILL provides innovative engineering, procurement, construction,
operations and consulting solutions that span the entire power value
chain.
David Wilks, President of Power

Generation for Xcel Energy
atmb200901.007.indd
2009 CH2M HILL
ch2mhill.com/power
now incorporating
and
Visit POWER on the web: www.powermag.com

Subscribe online at: www.submag.com/sub/pw
EdiTORiAl & PROduCTiOn

Editor-in-Chief: dr. Robert Peltier, PE
480-820-7855, editor@powermag.com
Managing Editor: Gail Reitenbach, PhD
Senior Editor: Angela Neville, JD
Contributing Editors: Mark Axford; David Daniels; Steven F. Greenwald;
Jim Hylko; Kennedy Maize; Dick Storm; Dr. Justin Zachary
Senior Writer: Sonal Patel
Senior designer: Leslie Claire
Senior Production Manager: Tracey Lilly, tlilly@accessintel.com
Marketing Manager: Jamie Reesby
AdVERTiSinG SAlES
north American Offices
Southern & Eastern u.S./Eastern Canada/
latin America: Matthew Grant, 713-343-1882, mattg@powermag.com
Central & Western u.S./Western Canada: Dan Gentile, 512-918-8075, dang@powermag.com
international Offices
uK/Benelux/Scandinavia/Germany/
Switzerland/Austria/Eastern Europe:
italy/France:
Spain/Portugal:
Japan:
india:
South Korea:
Turkey:
Thailand:
Malaysia:
Petra Trautes, +49 69 5860 4760, ptrautes@accessintel.com

Ferruccio Silvera, +39 (0) 2 284 6716, ferruccio@silvera.it
Vibeke Gilland, +34 91 553 42 06, vibeke.gilland@publistar-es.com
Katsuhiro Ishii, +81 3 5691 3335, amskatsu@dream.com
Faredoon B. Kuka, 91 22 5570 3081/82, kuka@rmamedia.com
Peter Kwon, +82 2 416 2876, +82 2 2202 9351, gulfk@unitel.co.kr
Muge Senel, +90 212 327 2464, muge@gbreports.com
Nartnittha Jirarayapong, +66 (0) 2 237-9471, +66 (0) 2 237 9478
Tony Tan, +60 3 706 4176, +60 3 706 4177, nmedia@tm.net.my
Classified Advertising
Diane Hammes, 713-343-1885, dianeh@powermag.com
POWER Buyers Guide Sales
Diane Hammes, 713-343-1885, dianeh@powermag.com
AudiEnCE dEVElOPMEnT
Audience development Manager: Terry Best
Fulfillment Manager: George Severine
CuSTOMER SERViCE
For subscriber service:
Electronic and Paper Reprints:
list Sales:
All Other Customer Service:
powermag@halldata.com, 800-542-2823 or 847-763-9509

lyndsay.bahn@theYGSgroup.com, 717-666-3052
Statlistics, Jen Felling, j.felling@statlistics.com, 203-778-8700
713-343-1887
BuSinESS OFFiCE
TradeFair Group Publications, 11000 Richmond Avenue, Suite 500, Houston, TX 77042
Publisher: Brian K. Nessen, 713-343-1887, briann@tradefairgroup.com
President: Sean Guerre
ACCESS inTElliGEnCE, llC

POWER (ISSN 0032-5929) is published monthly by Access

Intelligence, LLC, 4 Choke Cherry Road, Second Floor,
Rockville, MD 20850. Periodicals Postage Paid at Rockville,
MD 20850-4024 and at additional mailing offices.
POSTMASTER: Send address changes to POWER, P.O. Box
2182, Skokie, IL 60076. Email: power@halldata.com.
Canadian Post PM40063731. Return Undeliverable Canadian
Addresses to: Station A, P.O. Box 54, Windsor, ON N9A 6J5.
Subscriptions: Available at no charge only for qualified
executives and engineering and supervisory personnel
in electric utilities, independent generating companies,
consulting engineering firms, process industries, and other
manufacturing industries. All others in the U.S. and U.S.
possessions: $59 for one year, $99 for two years. In Canada:
US$64 for one year, US$104 for two years. Outside U.S. and
Canada: US$159 for one year, US$269 for two years (includes
air mail delivery). Payment in full or credit card information is
required to process your order. Subscription request must
include subscriber name, title, and company name. For new
or renewal orders, call 847-763-9509. Single copy price: $25.
The publisher reserves the right to accept or reject any order.
Allow four to twelve weeks for shipment of the first issue on
subscriptions. Missing issues must be claimed within three
months for the U.S. or within six months outside U.S.
For customer service and address changes, call 847-7639509 or fax 832-242-1971 or e-mail powermag@halldata
.com or write to POWER, P.O. Box 2182, Skokie, IL 60076.
Please include account number, which appears above name
on magazine mailing label or send entire label.
Photocopy Permission: Where necessary, permission is
granted by the copyright owner for those registered with
the Copyright Clearance Center (CCC), 222 Rosewood Drive,
Danvers, MA 01923, 978-750-8400, www.copyright.com,
to photocopy any article herein, for commercial use for the
flat fee of $2.50 per copy of each article, or for classroom
use for the flat fee of $1.00 per copy of each article. Send
payment to the CCC. Copying for other than personal or
internal reference use without the express permission of
TradeFair Group Publications is prohibited. Requests for
special permission or bulk orders should be addressed to the
publisher at 11000 Richmond Avenue, Suite 500, Houston, TX
77042. ISSN 0032-5929.
Executive Offices of TradeFair Group Publications: 11000
Richmond Avenue, Suite 500, Houston, TX 77042. Copyright
2009 by TradeFair Group Publications. All rights reserved.
4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850

301-354-2000 www.accessintel.com
Chief Executive Officer: Donald A. Pazour
Exec. Vice President & Chief Financial Officer: Ed Pinedo
Exec. Vice President, Human Resources & Administration: Macy L. Fecto
divisional President, Business information Group: Heather Farley
Senior Vice President, Corporate Audience development: Sylvia Sierra
Senior Vice President & Chief information Officer: Robert Paciorek
Vice President, Production & Manufacturing: Michael Kraus
Vice President, Financial Planning & internal Audit: Steve Barber
www.powermag.com
POWER November 2009
Treat SOX and acid gases quickly and

cost-effectively with Dry Sorbent Injection!
Remove SOX and other acid gases using sodium sorbents in a Dry Sorbent Injection (DSI) system, a low-cost
alternative to semi-dry or wet scrubbing systems. Sorbent is stored and injected dry directly into the flue duct
where it reacts with acid gas, thus requiring no slurry equipment or reactor vessel. Spent sorbent is collected
through a baghouse or electrostatic precipitator, or through an existing wet scrubber vessel. DSI may also help
to capture mercury and reduce NOX.
SOLVAir Select 300 sodium bicarbonate and Select 200 trona are the most effective products for use in DSI systems.
Both undergo rapid calcinations of contained sodium bicarbonate to sodium carbonate when heated at or above
275F. The decomposition brings unreacted sodium carbonate to the particle surface, allowing HCl and SO2 to be
neutralized. Byproducts are sodium chloride and sodium sulfate, which are collected with fly ash.
Concerned about high capital and operating costs? Call the SOLVAir professionals at 800-765-8292 or go to
www.solvair.us for information you need to effectively control air pollution.
Dont miss Dr. Yougen Kongs presentation, Dry Sorbent Injection of Trona and Sodium Bicarbonate for SO2 , SO3 ,
NOX and Mercury Mitigation at Power-Gen 2009!
PRODUCTS
Solvay Chemicals, Inc.

1.800.SOLVAY C (800.765.8292)
www.solvair.us
Chemical and Phamaceutical Group
Copyright 2009, Solvay Chemicals, Inc. All Rights Reserved

SPEAKING OF POWER
Time Flies
uly 17, 1955, was the first time electricity generated by

a U.S. nuclear power plant flowed into a utility grid. The
experiment required Utah Power & Light to disconnect
itself from the power lines to the 1,200 residents of Arco,
Idaho, and plug in the Argonne National Laboratory experimental boiler water reactor, BORAX-III. The plant produced
merely 2 megawatts for more than an hour, as planned, after which linemen reconnected the towns grid to the utility.
Since then, the U.S. nuclear industry has demonstrated excellence in operations, but more than 50 years after that first
nuclear power supply, it is lagging far behind even developing
nations in new construction.
Significant Global Growth
Today, 439 nuclear power plants are in operation in 30 countries

with a total capacity of 372 GW. The U.S., for comparison, operates 104 of those plants, totaling a bit over 100 GW of installed
capacity. France is runner-up with 59 operating plants and one
new plant under construction.
As with picking stocks, the U.S. nuclear industrys past performance may not be a predictor of future performance. According
to the International Atomic Energy Agency (IAEA), 53 reactors,
rated at just over 47 GW, are under construction around the world
today. In the U.S., the only new nuclear plant is Watts Bar Unit
2. Construction of that unit was stopped in 1985 but restarted
two years ago. When completed in 2013, Watts Bar Unit 2 will
add almost 1,200 MW to the Tennessee Valley Authority grid.
The growing global nuclear industry is leaving the U.S. nuclear
industry in the dust. The IAEA predicts that the global 372 GW
will grow to somewhere between 510 GW and 810 GW by 2030,
an 8% increase compared with last years projections.
The IAEA projections by region are a mixed bag. Modest
downward projections for North America are offset by major increases in the Far Eastwhich includes China, Japan, and the
Republic of Koreaand South Asia, which includes India. IAEA
projections are presented as high- and low-range projections to
reflect uncertainties surrounding individual countries economic
and electricity growth projections and national policies supporting low-carbon electricity production. The IAEA projections also
illustrate that the agency believes the U.S. nuclear market has
softened over the past year.
Developing Countries Pick Nuclear
The location of these new reactors provides a peek into where

the U.S. fits into the global nuclear marketplace. Unexpectedly, the countries with the largest fleets of operating nuclear
plants are not the countries looking to add plants. As many as
20 countries will build nuclear plants by 2030 that do not currently have one.
The numbers also indicate that developing countries are
likely to lead the industry in new construction in future years.
For example, China, with 11 operating nuclear plants, leads
the planet with 16 more under construction. Five of those
6
plants broke ground in 2009 and six in 2008. Next, the Russian
Federation, with 31 operating reactors, has another nine reactors under construction. Tied for third place, with six reactors
under construction, are India (17 operating reactors) and the
Republic of Korea (20 operating reactors). Japan will have 55
nuclear plants when its two units now under construction are
completed.
Heres another interesting observation that helps put the
progress of the U.S. nuclear program into perspective. The explosive growth of global nuclear power construction is determined not only by the number of projects under construction
but also by the number of projects that have been recently
completed. IAEA statistics show that the last nuclear plants to
enter commercial service (ignoring the Browns Ferry 1 restart
in 2007) were Chinas Tianwan 1 and Indias Tarapur 3, both in
mid-2006.
The number of new plants under construction grew from 33 in
2008 to more than 50 in 2009, but only two plants have been
completed since 2006. Lots of starts but few plants completed
means that the backlog of work under way is growing. Even so,
its a fraction of the peak of 233 plants under construction in
1979. The average has been around 30 to 40 plants under construction in each of the past 15 years.
Think Globally
My EUCG nuclear benchmarking article (p. 74) this month notes

that power uprates and capacity factor improvements in the
U.S. nuclear fleet over the past two decades have added the
equivalent of over a dozen new nuclear plants. That experience was not unique to the U.S. Global nuclear availability factors have increased from an average of 72.3% to 83.2% since
1990. During the past 25 years, power uprates have accounted
for two-thirds of the total increase in global nuclear energy
produced, while new construction produced one-third of the
increase. The global improvement in the operation and maintenance of nuclear plants is just as astounding as improvements
in the U.S. over the same period.
Act Locally
The U.S. remains the largest single market for new nuclear power
plants given its 30-plus applications pending before the Nuclear
Regulatory Commission. Nevertheless, the U.S. is also unable to
produce pressure vessels and key forgings, it has an unproven
new licensing system, it has an administration that seems to be
ambivalent about the advantages of nuclear power, and it has a
nuclear industry distracted by a potential quick profit from the
carbon allowances promised by passage of carbon emissions reduction legislation. The U.S. nuclear industry is producing paper
while other countries are pouring concrete.
The Roman poet Ovid is credited with observing that tempus
edax rerum (time [is the] devourer of all things). I hope he
wasnt talking about the nuclear future of the U.S.
Dr. Robert Peltier, PE, is POWERs editor-in-chief.
www.powermag.com
POWER November 2009
GE Power & Water
Less input.
More output.
GE Power & Waters new 7FA gas turbine has been engineered to deliver the best of both worlds. Generate more power
for your customers, while at the same time reducing and controlling the cost of generating that power. All without
compromising your high operational standards. And with the new 7FAs exceptional flexibility and proven reliability,
you can operate however you need towhether in peaking or cyclic mode. Greater output, efficiency and flexibility.
The new 7FA truly is one powerful gas turbine. Learn more at www.GE-7FA.com.
Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor Global Monitor
Global Monitor
Worlds First EPR Gets a Roof
Olkiluoto 3, the worlds first EPR whose construction in Finland

has been plagued by major delays, in September reached a significant milestone as its 200metric ton, 47-meter-diameter steel
dome was hoisted into position 44 meters above the ground (Figure 1). The massive concreting process for the internal structures
of the reactor containment have also now been completed, all
large components have been installed in the turbine building,
installation of piping and electrical equipment is nearing completion, and erection of piping and other installation work will
now start on a large scale, Finnish utility Teollisuuden Voima Oyj
(TVO) said in October.
The utility expects that the first systems will be ready for
the commissioning phase before the end of the year. The plant
is now expected to come online in 2012three years behind
schedule. The delaysblamed largely on persistent issues
with faulty materials and planning since construction began
in 2005are said to have cost builder AREVA an estimated
2.3 billion. In September, having publicly lambasted TVO for
being slow to fulfill contractual commitments, the French stateowned nuclear engineering firm said it would only compete the
plants construction if the utility agreed to the companys contract ammendments.
AREVA has sent proposals to TVO in order to get back to methods of execution that are in line with usual practices for major
projects, said AREVA CEO Anne Lauvergeon. We will only commence the final phases of the works when TVO has agreed upon
the proposals that have been made or issued contract amendments that provide for the requested modifications.
But Olkiluoto is not the only EPR project under way to have
seen costly delays. The evolutionary 1,600-MW pressurized water reactor is also being built at Flamanville in France, and two
unitsTaishan 1 and 2are planned for China. Industry sources
say that costs for the Flamanville project, spearheaded by French
energy giant Electricit de France (EDF), had risen from 3.3
billion as originally stated to 4 billion by December 2008. Con-
1. Raising the roof. The worlds first EPR, Olkiluoto 3, in September reached a major milestone with installation of the reactor dome.
Two cranes hoisted the steel component weighing 200 metric tons and
measuring almost 47 meters across and lowered it into place 44 meters above the ground. The inner section of the reactor building is now
completely covered, and to seal it, the dome will be welded around
its circumference and covered with 7,000 metric tons of concrete. The
project, expected to come online in 2012, is three years behind schedule, plagued by planning and material delays. Courtesy: AREVA
struction of the project, begun in July 2006, was also expected

to last only 54 months. EDF insisted in June this year, however,
that the project was on time and on schedule.
AREVA in late August, meanwhile, postponed pouring concrete
for the Taishan EPR project until mid-Septembera task not performed as of Oct. 1.
How the delays will affect several planned EPRs is not clear.
EDF and E.ON have opted for EPR technology in the framework
of the UKs nuclear new build program. The EPR certification process is also under way in the U.S., where several utilities have
opted to build a total of seven EPRs at proposed nuclear power
plants. AREVA, in a partnership with GDF-Suez and Total, is also
proposing the EPR in the United Arab Emirates, and it has inked
a commercial agreement with Indias nuclear monopoly, Nuclear
Power Corp. of India Ltd. for construction of at least two EPRs
in Jaitapur, Maharashtra state. Most recently, Italys ENEL signed
a joint venture with EDF for the construction of four EPRs split
across three power plants.
Three CCS Tests Launch Worldwide
This Septembera year after Vattenfall launched the worlds first

oxyfuel pilot plant for carbon capture and sequestration (CCS)
at the Schwarze Pumpe lignite-fired plant south of Berlin, Germanythree high-profile and long-awaited carbon capture tests
started operation around the world.
Vattenfall to Scale Up Oxyfuel Plant. The Swedish stateowned utility reported that during the first year, the oxyfuel approach had been tested on a small scale at the research and
development facility at Schwarze Pumpe, and that it now sought
to demonstratethrough tests and experimentsthat the technique could be scaled up. Vattenfalls ultimate goal is to commercially operate CCS power plants in the years following 2020.
The 30-MW thermal pilot plant at Schwarze Pumpe is designed
to capture 95% of carbon dioxide, but we believe we can even
reach 98%, said Bjarne Korshj, Vattenfall CCS manager, on the
projects first anniversary.
E.ON, Siemens Start Up Carbon Capture Facility at Staudinger. In mid-September, E.ON and Siemens switched on a 1-MW
pilot plant that will test postcombustion carbon capture on
Unit 5 at E.ONs hard coalfired 510-MW Staudinger facility in
Grosskrotzenburg near Hanau, Germany (Figure 2). The facility,
designed to be retrofitted onto existing plants, will operate until
the end of 2010. Findings will serve a large-scale demonstration
of the technology, and E.ON expects that an industrial-scale CCS
coal-fired plant could come online in 2020.
Siemens developed the postcombustion capture process, which
uses a scrubbing agenta special cleaning agentto trap
about 90% of low-temperature CO2 from flue gases in an absorber. The CO2-laden agent is then fed into a desorber to get rid
of the greenhouse gas by raising the temperature, before feeding
the regenerated agent back into the absorber.
The project is being sponsored by the German Federal Ministry of Economics. E.ON recently called on the government
to pass an infrastructure law for carbon capture at coal-fired
power plants early in 2010, saying that it could lose a role in
the future of CCS. E.ON, which is testing CCS in the Netherlands,
Sweden, and the UK, said those countries had approved operation of individual test plants to speed up the process, but the
Berlin cabinet had delayed voting on a national law this past
www.powermag.com
POWER November 2009
L I Q U I D
L E V E L
M E A S U R E M E N T
When the going gets tough,

the tough get an Orion.
Orion level gauges take on the toughest

measurement challenges in the
worlds harshest conditions.
rion level controls are built tough. Our Aurora

Magnetic Level Indicator (MLI) combines float-
operated and leading-edge electronic measurement in a

single, redundant indicator. Orion MLIs not only serve
industrys most demanding applications and environments, theyre built to thrive in these extremes.
Learn more about new or replacement solutions in
AURORA
Float-based level
indicator with a
redundant Guided
Wave Radar
transmitter
ATLAS
Float-based
Magnetic Level
Indicator
(MLI)
JUPITER
Float-based
Magnetostrictive
level transmitter
shown mounted
to an Atlas MLI
liquid level indication at orioninstruments.com.

Onshore/Offshore Oil & Gas
Oil and Gas Refining
Thermal & Nuclear Power
Water & Wastewater
Pharmaceutical & Biotech
Chemical Processing
6646 Complex Drive Baton Rouge, LA 70809 1-866-556-7466 info@orioninstruments.com

GLOBAL MONITOR
June, owing mainly to a lack of public support for coal as a fuel
for future power generation.
Alstom, Dow Facility to Test CO2 Capture from Flue Gas. Alstom
teamed with the Dow Chemical Co. to start up a 2-MW pilot plant that
captures CO2 from the flue gas of a coal-fired boiler at the Dow-owned
facility in South Charleston, W.Va. The pilot plant uses proprietary
advanced-amine technology jointly developed by Alstom and Dow to
capture approximately 1,800 metric tons of CO2 per year (Figure 3). It
is expected to operate for the next two years. Data from the test will
be use to optimize the technology, the companies said.
Alstom is testing, or plans to test, three main carbon capture
technologies at 10 facilities around the world. The companys oxyfuel
combustion processa precombustion carbon capture technology
is being developed at Lacq, a gas plant in France, and at Vattenfalls
Schwartz Pumpe project. Along with developing advanced-amine
technology at the Dow pilot facility, Alstom has been testing its
chilled ammonia process at the Karlshamn oil and gas facility in Sweden and at We Energies Pleasant Prairie plant in Wisconsin.
In Octoberafter 7,000 hours of operationAlstom and We Energies announced long-awaited results for that pilot project, saying it
had successfully demonstrated 90% CO2 capture from a 1.7-MW plant
slipstream. (See our Feb. 2008 issue for project details.) The project also produced high-purity CO2 with low ammonia (<10 ppm) and
water content (<2,500 ppm). The lessons learned have been essential for the scaled-up 20-MW cpature system installed at a validation
project soon to be commissioned at American Electric Powers (AEPs)
Mountaineer plant in New Haven, W.Va., the companies said.
AEP Readies Mountaineer Validation Project for Commissioning. Meanwhile, American Electric Power told POWER in
September that it had started its 20-MW carbon capture system
2. A postcombustion pilot.
German giants E.ON and Siemens in September launched a pilot project to test postcombustion
carbon capture on Unit 5 at E.ONs hard coalfired 510-MW Staudinger
facility in Grosskrotzenburg near Hanau, Germany. Siemens process
uses a proprietary scrubbing agent to trap 90% of low-temperature
carbon dioxide from flue gases in an absorber. Courtesy: E.ON
3. Amine, Amen. Also this September, Alstom and The Dow

Chemical Co. started up a 2-MW pilot plant to capture CO2 from
the flue gas of a coal-fired boiler at the Dow-owned facility in South
Charleston, W.Va. The process uses the companies jointly developed
advanced amine technology to capture about 1,800 metric tons of CO2
per year. Courtesy: The Dow Chemical Co.
4. The acid test. American Electric Power is preparing to commission

a 20-MW carbon capture and sequestration system (shown here between
the stack and the cooling tower) that is expected to remove and sequester
some 100,000 metric tons of CO2 emissions annually from the flue gas
stream of the utilitys 1,300-MW Mountaineer plant in New Haven, W.Va.
The system uses Alstoms chilled ammonia process. Courtesy: AEP

10
www.powermag.com
POWER November 2009
GLOBAL MONITOR
to confirm that it was capturing a clean stream of the greenhouse gas for the $76 million validation project at its Mountaineer plant (Figure 4).
The project will officially be commissioned on Oct. 30. The
Mountaineer project will then operate for up to five years and
help validate the effectiveness of Alstoms patented chilled ammonia process for carbon dioxide capture and the viability of
storage in the local geology. The project is being watched closely
around the world because it will be the first to capture CO2 from
a pulverized coalfired power plantas well as inject it into a
permanent storage site more than 7,800 feet underground. It has
also been hailed for its potential to provide the critical information that could scale up capture and storage technologies for new
power plants and for the retrofit of existing facilities.
India Designs Thorium-Fueled Reactor

for Export
While the global spotlight is fixed on Indias massive coal-fired

power capacity expansion, the country with meager uranium
reserves has been pressing on with a unique long-term program that pushes for research and development of nuclear reactors using all three main fissionable materials: uranium-235,
plutonium, and uranium-233. The three-pronged program, developed largely during the countrys almost 30-year-long isolation from international nuclear trade, also factors in Indias
abundant reserves of thorium, which constitute 25% of the
worlds total reserves.
The program has made some major advancements, as Anil

Kakodkar, chair of Indias Atomic Energy Commission (IAC) told
members at the International Atomic Energy Agencys (IAEAs)
General Conference in Vienna this September. The nation has
largely completed design of a 300-MW Advanced Heavy Water
Reactor (AHWR), a unit that will be fueled by a mix of uranium-233 and plutoniumwhich will be converted from thorium
by previously deployed and domestically designed fast breeder
reactors. Construction on the first AHWR is scheduled to start in
2012though no site has yet been announced. Civil construction of the nations first 500-MW prototype fast breeder reactor
at Kalpakkam, Tamil Nadu, meanwhile, is under way, scheduled
for completion in 2011.
And now the nation has also designed a special version of the
AHWR (Figure 5), a 300-MW reactor that uses low-enriched uranium (LEU), replacing plutonium with uranium enriched to 19.75%
U-235, the AEC head said. Kakodkar indicated that the vertical,
pressure tube type, boiling light watercooled, and heavy water
moderated AHWR-LEU was intended for export. This version of
the design also can meet the requirement of medium sized reactors, in countries with small grids while meeting the requirements of next generation systems, he said. While we strongly
advocate recycle option, AHWR-LEU would also compete very favourably even in once through mode of fuel cycle.
Kakodkar did not say when the new AHWR variant would be
commercially ready. Industry experts said, however, that the
announcement was significant because it reaffirmed that India
5. Packing a punch. India, a country that has devoted its nuclear research and development program to making use of its abundant thorium
reserves, recently announced it had designed a special version of the Advanced Heavy Water Reactor (AHWR), which uses low-enriched uranium
(LEU). According to a brochure distributed at a recent nuclear conference in Vienna, in comparison with modern light water reactors, the 300-MW
AHWR-LEU would require about 13% less mined natural uranium for the same quantity of energy produced. The country has indicated that this
reactor would be exported to nations with small grids. Courtesy: Bhabha Atomic Research Centre
Reactor building
Passive containment
cooling system
Gravity-driven water
pool (GDWP)
Isolation condenser
Passive core decay heat removal system
Passive concrete
cooling system
for V1 volume
Turbine
Poison
tank
High steam pressure
Accumulator
V2 side
V1 side
Passive
containment
isolation
U ducts (2 Nos.)
Steam
Steam drum
GDWP
injection
Feed pump
Deaerator
Desalination
plant
Feedwater
heaters
ECC header
Condenser
High V1
pressure
Core
Process water
November 2009 POWER
Cooling
Water
CEP
Passive
vavles Inlet
header
Passive
poison
injection
system
Generator
Turbine building
Moderator heat-recovery system
www.powermag.com
11
GLOBAL MONITOR
was committed to development of its thorium fuel cycle and
that it was doing so with urgency, particularly because of climate change concerns. The matter should also be given weight
in light of Indian Prime Minister Manmohan Singhs assertion
on Sept. 29 that the nation could generate 470 GW of power
by 2050 if it managed the three-stage program well. This will
sharply reduce our dependence on fossil fuels and will be a major contribution to global efforts to combat climate change, he
reportedly said at an international conference on the peaceful
uses of nuclear energy.
New Pressurized CCS System Could Cut

Energy Penalty
Researchers at the Massachusetts Institute of Technology (MIT)

looking into new power generation cycles have designed an innovative oxyfuel system that uses a pressurized coal combustor
to capture and concentrate carbon dioxide emissions for direct
injection into deep geological formations. The scientists say that
the new approach reduces the energy penalty that all carboncapture systems for power plants have by nearly 3%. But, even
this small efficiency gain could enable technology to help make
carbon capture and sequestration systems (CCS) practical and affordable, they say.
As Professor of Mechanical Engineering Ahmed Ghoniem and
his team explain, any system for separating and concentrating
carbon dioxide from a power plant reduces the efficiency of the
plant by about a third. Ghoniem compared that process to mixing
salt and pepper, saying that mixing is easy, but separating them
takes energy. Nobody in their right mind will jump into this and
do it unless we can reduce the energy penalty and the extra cost,
Statement of Ownership, Management, and Circulation (Requester Publications Only)
1. Publication Title: POWER 2. Publication Number: 0032-5929 3. Filing Date:9/18/2009
4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual
Subscription Price $69. Complete Mailing Address of Known Office of Publication: Access
Intelligence, 4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850-4024 Contact:
George Severine Telephone: 301-354-1706 8. Complete Mailing Address of Headquarters
or General Business Office of Publisher: Access Intelligence, LLC, 4 Choke Cherry Road,
2nd Floor, Rockville, MD 20850-4024 9. Full Names and Complete Mailing Addresses of
Publisher, Editor, and Managing Editor: Publisher: Brian Nessen, 4 Choke Cherry Road,
2nd Floor, Rockville, MD 20850-4024 Editor: Robert Peltier, 4 Choke Cherry Road, 2nd
Floor, Rockville, MD 20850-4024 Managing Editor: Gail Reintenbach, 4 Choke Cherry
Road, 2nd Floor, Rockville, MD 20850-4024 10. Owner if the publication is owned by a
corporation, give the name and address of the corporation immediately followed by the
names and addresses of all stockholders owning or holding 1 percent or more of the total
amount of stock: Veronis Suhler Stevenson, 350 Park Avenue, New York, NY 1002211.
Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1
Percent or More of Total Amount of Bonds, Mortgages, or other Securities: None 12.
Non-profit organization: not applicable. 13. Publication: POWER 14. Issue Date for
Circulation Data: September 2009
Average No. of No. Copies of
15. Extent and Nature of Circulation:
Copies Each Issue Single issue
During Preceding
Nearest to
Filing Date
12 Months
a. Total Number of Copies (Net press run)
55,911
55,527
b. Legitimate Paid and/or Requested Distribution
(1) Outside County Paid/Requested Mail Subscriptions 53,236
53,200
(2) Inside County Paid/Requested Mail Subscriptions
0
0
(3) Sales Through Dealers and Carriers, Street Vendors
0
0
(4) Requested Copies Distributed by Other Mail Classes
0
0
c. Total Paid and/or Requested Circulation
53,236
53,200
d. Nonrequested Distribution (By Mail and Outside the Mail)
(1) Outside County Nonrequested Copies
1,327
1,411
(2) Inside-County Nonrequested Copies
0
0
(3) Nonrequested Copies Distributed Through the USPS
by Other Classes of Mail
0
0
(4) Nonrequested Copies Distributed Outside the Mail
(Include Pickup Stands, Trade Shows, Showrooms,
and Other Sources)
469
250
e. Total Norequested Distribution
1,796
1,661
f. Total Distribution (Sum of 15c and 15e)
55,032
54,861
g. Copies not Distributed (Office, Returns, Spoilage, Unused) 879
666
h. Total (Sum of 15f and g)
55,911
55,527
i. Percent Paid and/or Requested Circulation
96.74%
96.97%
16. Publication of Statement of Ownership for a Requester Publication is required and
will be printed in the November 2009 issue of this publication.
17. Signature of Owner: Don Pazour Date: 9/18/09
PS Form 3526-R, September 2007
12
and only if it is mandated to reduce CO2 emissions he said.

The team designed a coal plant combustion chamber that burns
the fuel under pressure and uses a stream of pure oxygen instead
of ordinary air (which is 79% nitrogen and 21% oxygen). The use
of pure oxygen already eliminated more than three-quarters of
the resulting flue gases, the team said.
In performing simulations and lab-scale tests of the new system, the researchers then demonstrated that the system recovers more thermal energy from flue gases because the elevated
flue gas pressure raises the dew point and the available latent
enthalpy (heat content) in flue gases. This high-pressure watercondensing flue gas thermal energyrecovery system reportedly
eliminates the low-pressure steam bleeding, which is typically
used in conventional system cycles. As a result, it enables the
cycle to achieve an efficiency gain of nearly 3% compared with
an unpressurized oxyfuel system.
In their tests, the researchers examined a flue gas purification
and compression process that removed sulfur oxides and nitrogen oxides, and which used a low-temperature flash unit. The
comparison was between combustors that operated at 1.1 bars
versus 10 bars.
Ghoniem told the MIT news service in September that even
though the process uses more energy at the beginning of the
combustion cyclebecause of the need to separate oxygen
from air and pressurize itthe increased efficiency of the power cycle raises the net output of the plant. It also reduces the
compression work needed to deliver CO2 at the requisite pressure for sequestration, as compared with unpressurized carboncapture systems.
Pressurization of the combustion system also reduced the size
of the components and hence the plant, which could reduce
the footprint of needed real estate, and potentially the price of
components, he said. The efficiency gain of nearly 3% compared
to an unpressurized system could probably be improved to a 10%
to 15% gain with further research and development from current
values, he said.
European power giant ENEL, which sponsored the research, is
planning to build a pilot plant in Italy based on the technology if researchers manage to reach those gains. Ghoniem said,
however, that much more study is needed in three specific areas:
the operating conditions at which the different components work
together for highest efficiency; component-level research to optimize the design of individual partsespecially the combustion
chamberof the new system; and process analysis to examine
the details of the physics and chemistry involved.
The researchers findings are published in an August 2009
paper titled, Analysis of Oxy-Fuel Combustion Power Cycle
Using a Pressurized Coal Combustor. The pdf document is
available online at http://web.mit.edu/mitei/docs/reports/
hong-analysis.pdf.
Europes Offshore Wind Race
Denmark in September inaugurated a 209-MW offshore wind

parkthe worlds largest to dateoff the west coast of Jutland, in the North Sea. Owned 60% by Vattenfall and 40% by
DONG Energy, construction of the massive Horns Rev 2 project
consisting of 91 Siemens 2.3-MW turbines (Figure 6)began in
early 2008 as the second phase of the Horns Rev project. The
first phase, the 160-MW Horns Rev 1, which uses 80 Vestas 2-MW
turbines, began feeding the Danish electricity grid in 2002. It
was the first offshore wind farm built in the North Sea.
The size of the Horns Rev 2 park is reportedly so vast that
it features the worlds first offshore wind farm equipped with
www.powermag.com
POWER November 2009
GLOBAL MONITOR
6. Treading water. Denmark inaugurated
the worlds largest offshore project to date this

September. But the 91-turbine, 209-MW Horns
Rev 2 wind parkbuilt in just 18 months off
the west coast of Jutland on the North Sea
could soon be overtaken in size and installed
capacity by several planned wind farms, including British projects like the 140-turbine Greater
Gabbard and the 340-turbine London Array.
Courtesy: Vestas Central Europe
a platform where maintenance personnel

can spend the night. It is expected to
produce more than 800 GWh of electricity annually, making Denmarka country that already receives about a fifth
of its electricity from wind powerthe
worldwide leader of installed offshore
wind capacity.
The nation had lost that title to the
UK last year after Centrica opened the
194-MW Lynn and Inner Dowsing wind
farms off the coast of Skegness, in Lincolnshire. Though Danish Minister for Climate and Energy Connie Hedegaard said
at the inauguration that Denmark would
triple its capacity of offshore wind power
over the next four year, the nation will
continue to vie for the title with the UK,
as several planned projects could overtake the Horns Rev 2 project both in size
and installed capacity.
In the works are the UKs Greater Gabbard fielda 140-turbine wind farm
expected to come online next year. After that it will be 340 turbines on the
London Array. DONG Energy, a partner in
that project, along with Germanys E.ON
and Abu Dhabibased Masdar, also plans
to separately build a 102-turbine, 367MW wind farm in the Irish Sea.
And European ambitions concerning
new offshore capacity are only set to get
larger. The European Wind Energy Associa-
November 2009 POWER
tion (EWEA) increased its 2020 target to

230 GW of installed wind power capacityincluding 40 GW that would be offshore wind. Saying that the task would be
challenging but manageable, the industry group set out a 20-year plan in a European Unionbacked report released this
September.
An entire new offshore wind power
industry and a new supply chain must be
developed on a scale that will match that
of the North Sea oil and gas endeavour,
it said in the report, titled, Oceans of
Opportunity. To reach the 40-GW target
by 2020 would require an average growth
in annual installation of 28%from 366
MW in 2008 to 6,900 MW in 2020, EWEA
acknowledged. But, it pointed out, in
the 12-year period from 1992 to 2004,
the market for onshore wind capacity in
the EU grew by an average 32% annually, from 215 MW to 5,749 MW. There
is nothing to suggest that this historic
onshore wind development cannot be repeated at sea, it said.
The 20-year plan calls for construction
of a transnational offshore power grid. That
network would build on 11 grids already in
place and incorporate the 21 being studied by grid operators in the North and Bal-
tic Seas. EWEA also proposed that eight

additional offshore grids be built by 2020
and six more by 2030. The groups plan
was made public as the European Commission gears up to publish a blueprint for
a North Sea grid and European electricity
network operators develop a 10-year plan
for a unified European grid.
POWER Digest
News items of interest to power generation

professionals.
STP Sets Another Record. The 2,700-MW
South Texas Project (STP) near Bay City,
Texas, set a U.S. nuclear power record on
Oct. 1 by operating a unit continuously
between refuelings for a fifth consecutive
time. The plants Unit 1 operated continuously from April 2005 to October 2006,
when it was shut down for refueling; from
November 2006 to March 2008, when it
was refueled again; and from April 2008
until Oct. 1, 2009. Unit 2 was continually
online from October 2005 to March 2007,
and again from April 2007 until October
2008. The facility will not have a sixth
consecutive breaker-to-breaker production
run, however. Unit 2 was temporarily taken offline Sept. 16 to replace equipment
in its steam condenser unit.

www.powermag.com
13
GLOBAL MONITOR
According to the STP Nuclear Operating Co., no other nuclear power plant has
achieved five breaker-to-breaker production runs in the five decades since the
first commercial reactor in the U.S. began
operations in 1958. The announcement is
the latest in a string of achievements for
the plant. The two-unit facilityone of
the nations largestproduced more energy than any other nuclear plant in the
U.S. in the past five years, and in 2007,
Unit 1 led all 439 reactors worldwide in
electric generation. It has also operated

more than two years without an accident
among its 1,200-member workforce, and it
has a total safety industrial accident rate
of 0.0, which places the company in the
top 10% of all U.S. nuclear plants in terms
of personal safety.
GE, Hyundai Sign $2.65 Billion Contract with Kuwait Government. The Kuwait Ministry of Electricity and Water on
Sept. 14 signed a turnkey contract with
GE and Hyundai Heavy Industries total-
Reduce Steam & Gas

Turbine Outage Time
Brackets can be installed
in tops-on or tops-off
configurations and in
magnetic or non-magnetic
bores.
New CENTRALIGN Ultra

Wireless Laser Alignment System
Single laser setup spans up to 133 feet. Extend the
measurement range with the Splice function. An automatic
correction factor is applied if laser drift is detected.
CENTRALIGN Ultra calculates true bore center position and
reveals bore out of roundness. Instant display of shim
corrections for each bore.
See us at PowerGen 09 Booth# C-4 912

305-591-8935 www.ludeca.com/centralign
14
www.powermag.com
ing $2.65 billion for a new 2,000-MW

combined-cycle power plantthe largest
in the countryin Sabiya. GE Energy will
supply equipment and long-term services. On the equipment side, GE will supply, by mid-2010, three combined-cycle
power blocks, including six Frame 9FA
gas turbines, three steam turbines, nine
generators, and a plant-level control protection system. GE will also operate and
maintain the plant for seven years from
the commercial operation date. The plant
will come online in two phases: The first
phase will add 1,300 MW to the Kuwait
grid by 2011, and the second phase will
add the remaining 700 MW in 2012. Primary fuel will be natural gas, with distillate as a backup.
The Government of Kuwaitowned plant
is expected to add much-needed power to
the grid, allowing Kuwait to meet an expected 8% growth in power demand. When
completed, the plant will raise Kuwaits
power capacity from current levels of
around 11,000 MW. Kuwaits robust business and residential growth has strained
the countrys power generation capability,
resulting in power outages during the hot
summer months.
Ausra to Supply Steam Boiler for
Jordanian 100-MW CSP Project. California-based Ausra Inc. is to supply
the solar steam boiler for the proposed
100-MW JOAN1 concentrated solar thermal power (CSP) project. The project
currently under development in Maan,
Jordan, could be the largest CSP project in the world using direct solar steam
generation when it begins operation
in 2013. It will also include a backup
fossil-fuel boiler to guarantee 24-hour
dispatchable electric power.
JOAN1 will rely on Ausras compact
linear Fresnel reflector technology to
power the plants solar steam cycle and
generate up to 100 MW of electricity.
JOAN1 will use dry cooling to conserve
water. Ausra plans to install an advanced manufacturing facility in Jordan
in order to supply JOAN1 with its solar
steam boilers. The project is scheduled
for financial close in the fourth quarter
of 2010, with construction beginning in
early 2011.
MHI Achieves 3,000 Hours of SOFCMGT Combined-Cycle Generation System. Mitsubishi Heavy Industries (MHI)
on Oct. 1 announced it had achieved
3,000 cumulative hours of operationunprecedented in Japanof a 200-kW combined-cycle power generation system that
incorporates solid oxide fuel cells (SOFC)
and a microgas turbine (MGT).
POWER November 2009
SOFCs are ceramic-based fuel cells that operate above 900C

(1,650F) and produce electricity directly by chemical reaction
between the hydrogen and carbon oxide removed from city
gas and oxygen in the air. MHI began developing the SOFCMGT system in 2004. In 2007 the system marked a maximum
power generation capacity of 229 kW and confirmed 52.1%
power generation efficiency. Having reached the 3,000-hour
milestone, MHI now intends to pursue reliability enhancement and system downsizing. The company said that it views
the development of large-scale combined-cycle power generation systems using SOFCs as a key challenge and powerful
trump card.
AMSC and Sinovel Sign $100 Million Contract for Wind
Turbine Components. American Superconductor Corp.
(AMSC) in late September signed a contract worth more than
$100 million with Beijing-based Sinovel Wind Corp. for core
electrical components to be utilized in Sinovels 3-MW wind
turbines, known as the SL3000. AMSC expects to begin shipping sets of core components under the new contract in March
2010 and to complete all shipments by the end of calendar
year 2011. Sinovel is Chinas largest wind turbine manufacturer and expects to be the worlds fifth-largest wind turbine
manufacturer by the end of 2009.
Wrtsil to Supply Floating Power Barge in Papua New
Guinea. Wrtsil in August signed a 57 million contract
with Lihir Gold Ltd. to supply a barge-mounted power plant
to power the gold companys Lihir Island gold mine in Papua
New Guinea. The plantexpected to be operational by April
2011will be based on Wrtsil 20V32 engines operating on
heavy fuel oil. Because the plant is planned as being an interim solution to the companys power needs for the site, it
was decided to mount the power plant on a barge so that it
can be moved to another location when it is no longer needed
at Lihir Island.
Alstom to Supply Diesel Generators to Chinas EPR plant.
Alstom in September said it had won an order to supply eight
new emergency diesel generators (EDGs) to the Taishan nuclear
power plant in Guangdong, China, the countrys first EPR-based
plant. The contract was signed between a consortium regrouping
Alstom Power Turbomachines, Alstom Wuhan Engineering &
Technology Co. Ltd., and MAN Diesel SAS and an AREVA-led
consortium with the China Nuclear Power Engineering Co.,
Ltd. and the owner TSNPC. With a scope of 40 million in the
contract, Alstom, as the leader of the consortium, will supply
the design, manufacturing, and procurement for 8 x 9.1-MW
EDGs and provide on-site support service. These EDGs, the highest unit-output models for similar applications in the world,
will be due for commissioning in 2013.
AES Begins Commercial Operation of Three Power Facilities in Chile, China, and Jordan. The AES Corp. in September began commercial operation of three new facilities across
its global portfolio: Guacolda 3, a 152-MW coal plant in Chile;
Huanghua I, a 49.5-MW wind farm in China; and Amman East,
a 380-MW combined-cycle gas plant in Jordan. The Guacolda
3 facility is the first coal plant to come online in Chile in 12
years. A second phase of the Huanghua wind project located in
the Hebei Province of China is on track to come online during
the first half of 2010. The Amman East combined-cycle gas
plant is the first independent power producerowned plant in
Jordan and increases the countrys electricity generation capacity by 18%.
By Sonal Patel, POWERs senior
staff writer.
November 2009 POWER
FP1.B.GB
GLOBAL MONITOR
Conveying
Loading
Palletizing
Packaging
BEUMER conveying
technology that has
every process nicely
under control.
High temperatures. Long distances. Great

heights. Efficient solutions. BEUMER conveying technology always offers you the right
systems and equipment for the transport of
bulk materials like cement, lime, gypsum or
clinker. See for yourself. You can find more
information about the BEUMER company
and its products on the Internet.
www.beumer.com
www.powermag.com
BEU_AZ_86x254_Foerdertech_Bau_GB.indd 1
15
12.01.2009 16:25:36 Uhr
FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M
FOCUS ON O&M
Catching Faults with
Centralized Condition
Monitoring
In 2007, Exelon Corp. began the Centralized Performance Monitoring (CPM) pilot
program. The goal was to reduce downtime
costs and lost revenue associated with the
25% of unplanned forced losses across its
fleet of 17 nuclear power units without additionally taxing existing personnel or adding new personnel. Exelon determined that
at least 2% of these losses could be caught
with a centralized monitoring program.
Exelon selected InSteps PRiSM online
condition-monitoring software and interfaced it to Exelons existing real-time plant
data historian infrastructure. Together,
they provide a fleetwide centralized solution requiring only two corporate-level
individuals.
Within two months Exelon had developed 500 different models with the InStep solution and identified $540,000 in
avoided faults. According to Chris Demars,
Exelon corporate engineering CPM project
manager, a conservative annualized estimate of failure avoidance is $3.3 million.
This program also won the 2008 NEI Top
Industry Practice TIP award. Here is the
story behind this success.
Selecting the Solution
Several factors drove Exelon to look
for an alternative to the decentralized
monitoring model. As staff resources and
senior expertise to monitor its plants
shrunk, the value of intelligent monitoring grew. A solution that lessened the
burden on personnel, extracted more
data, found more faults, and was quickly
installed and scaled was necessary to increase Exelons efficiency and meet business goals. Additionally, early detection
of equipment failures prevents the creation of a hazardous environment that
accompanies rotating equipment failures
or the release of industrial gases and
process fluids; it also improves nuclear
and radiological safety.
The Exelon CPM pilot focused on monitoring a 17-unit fleet without hiring additional personnel. The software vendor
selection process lasted three months,
from March to May. Eight vendor products
using a variety of different technologies
were reviewed and assessed on 35 different factors.
InStep Softwares PRiSM online condition-monitoring software was chosen for
16
1. Quantify the failure.
The top graph indicates a 25% deviation from normal condensate pump operation as determined by the multidimensional PRiSM model analytics. The
second graph indicates that measurement sensor readings BRW01V_T2560 (inboard bearing
temperature) and BRW01B_T2561 (outboard bearing temperature) are the main contributors to
the deviation. Source: InStep Software
the pilot project. PRiSM was interfaced

to Exelons existing real-time plant data
historian infrastructure, which includes
InSteps eDNA and another historian software application. According to Demars,
InSteps experience in the nuclear industry combined with their data historian
specialization, allowed them to develop
an effective, intelligent, easy to install
and use anomaly detection tool that fit
our selection criteria better than any other on the market.
InSteps PRiSM software is a selflearning analytic application for realtime online monitoring of critical assets
for condition-based maintenance. The
software uses pattern recognition and
advanced data-mining technologies to
provide for advanced early warning of
equipment problems and failures. PRiSM
learns from an assets individual operating history and develops a series of normal operational profiles for that piece
of equipment. PRiSM then compares the
known operational profiles with realtime operating data to detect the subtle
changes in system behavior that are often the early warning signs of pending
equipment failure. One of the hallmarks
of PRiSM is its ability to quickly develop
models; this made it a strong candidate
for Exelon early on, says Demars.
www.powermag.com
Deploying the Solution

One of the big savings of the InStep solution involved minimizing the number
of plant personnel needed to monitor
the fleet. The original calculation for a
decentralized program manned by 300+
part-time corporate-level individuals included an allowance of time for training,
individual software installations, and periodic updates and refresher courses. This
would have led to a commitment of seven
man-years every 12 months to reduce
the 2% of catchable unplanned forced
losses. The InStep solution allows a user
to quickly assemble and train a group of
related plant process computer points in
a model that, when deployed, will constantly monitor those points for behavior
that deviates from the norm.
InSteps PRiSM learns nominal system
behavior from archived system data and
automatically develops a model of nominal operation that is stored in a knowledge base. This system knowledge base
is continuously compared to the online
system to alert personnel of pending
equipment problems. The system alerts
an individual to parameter relationship
changes that should be investigated for
potential adverse equipment conditions
that could lead to equipment failure. The
system features an online graphical user
POWER November 2009
What if better than ever before

is only the beginning?
When your area of expertise is the entire energy conversion

chain, innovation is an ongoing process.
At Siemens, innovation is never an end in itself. It is rather the driving force that makes us come up with products,
solutions, and services that are trendsetting in terms of efficiency, cost-effectiveness, and environmental
compatibility. And there is always something more to achieve. Our all-electric oil and gas approach, for example,
increases the efficiency in oil and gas processes. And our innovative control equipment is a catalyst for highly
efficient, more fault-tolerant, and self-healing Smart Grids. www.siemens.com/energy
Answers for energy.

focus on o&M
interface, web-based alarm management,
and easily read anomaly visualization.
One of the critical elements for success
with this project was the speed at which
we are able to model. It was literally a
half an hour or less and a model would be
ready. We put together 500 models and the
pilot began, says Demars. PRiSM was developed for installations like Exelons with
many distributed, complex assets and a
premium on personnel. The PRiSM technology provides for the ability to best capture
and use the knowledge of a few key senior
personnel, allowing their experience to be
applied across a fleet of assets in place of
just a single plant, says Sean Gregerson of
InStep Software, who worked with Exelon
on the project.
Due to the design of the technology
infrastructure and the integration of project functions within an existing corporate
engineering group, the centralized performance monitoring concept was implemented with comparatively little staffing.
Fault Catching and Cost Savings
Personnel savings were just the beginning. Within two months, the catching
of one major fault and two smaller faults
saved Exelon over $500,000. The following descriptions of these faults were provided by Demars.
First Catch. We discovered that a condensate pump motors bearing oil temperatures were not within the allowable range
as defined by the multidimensional PRiSM
model. The cause was found to be an improperly assembled coupling that was seizing and approaching mechanical failure.
Had this gone undetected, the coupling
would have resulted in damage to both the
motor and the pump, requiring a replacement time of four to six weeks.
Replacement cost, expediting fees, and
craft overtime were estimated at $700,000.
The probability of this failure was estimated as 0.70 or $490,000. Online loss of the
pump with a failure of the standby pump
to start would have resulted in a power
reduction of 34% for 12 hours or about
$100,000. The probability of this failure
scenario was estimated as 0.10 or $10,000.
Additionally, potential fatalities or injuries
resulting from the ejection of coupling material were completely avoided.
Second Catch. The second significant
catch was a service water temperature
controller failure that would have result-
ed in a $30,000 loss. The main turbine

vibration model was alerted by a small
step change on the number 11 bearing.
The vibration level itself was not significant enough to cause an alarm in any of
the normal plant-monitoring systems.
The step change was caused by a change
in the generator hydrogen temperature,
which is controlled by stator water cooling and then by service water. The stator
water turbine trip function had not been
blocked, as had been done in other plants.
The temperature/flow control valve was
gagged at most plants to limit travel and
not induce huge swings in temperature
and potentially cause a turbine trip.
Although staff were planning to do
that in the upcoming refuel outage, Peach
Bottom Atomic Power Station was still
susceptible to that type of turbine trip.
In other words, the conditions identified
by the software may have prevented a turbine trip, which results in a reactor plant
shutdown as well as a couple of days of
lost revenue. Trip of the main turbine
would have resulted in a loss of generation for 24 hours or $600,000. The probability of a turbine trip was estimated as
0.050 or $30,000.
MATERIALS
NANOSTEEL POWER SOLUTIONS
A New Level of
Power Plant Protection
APPLICATIONS
NanoSteel Solutions for Corrosion, Erosion and Wear

ISO Compliant Quality Program
Engineered Applications
Job Site Material Test Lab
Find Out How NanoSteel Can Help You

Reduce Forced Outages
Increase Component Life
Lower Maintenance Costs
Call Toll Free 1-877-293-NANO

www.NanoSteelco.com infopwr@NanoSteelco.com
INSPECTIONS
Visit NaNosteel iN Booth # C4-1163

at PoWeR-GeN 2009 iN las VeGas

18
www.powermag.com
POWER November 2009
focus on o&M
Third Catch. The third catch was a
reactor feed pump (RFP) lube oil cooler
temperature controller failure that would
have been a $20,000 loss. A nuclear unit
was recovering from the effects of a transformer failureinduced voltage transient
that caused some system isolations and
momentary power losses. Shortly after the
transient, the RFP bearing the models for
all three pumps went into alert. The plant
was notified the following day that one of
the controllers did not recover from the
initial transient and was continuing to cycle significantly. The station determined
that the controller for the RFP oil cooler
had failed; staff were able to stabilize
temperatures manually until the controller was replaced.
The worst case scenario is bearing damage due to rapid overheating and loss of
the RFP. The physical damage was estimated at $100,000 with a probability of 0.10
and lost generation of 33% for 24 hours, or
$200,000 with a probability of 0.05.
Avoided Costs Add Up
According to Demars, The total avoided costs for the two-month period was
$540,000. If detected failures of a similar
magnitude continue to be revealed by the

InStep CPM solution, we expect an annualized avoidance of $3.3 million. Avoidance of a failure of a generation critical
component could also easily exceed this
amount, but the cost avoidance calculation methods are conservative.
The PRiSM software application has now
become a critical part of Exelons fleetmonitoring solution. According to Demars,
The use of this intelligent monitoring
technology within a centralized group
monitoring a fleet of generating stations
would apply across the industry.
Contributed by Steve Lundin (slundin@
bigfrontier.org) BIGfrontier
Communications Group.
HDPE Replaces Carbon

Steel in Safety-Related
Pipe System
Corrosion of steel water pipes in the safety-related piping systems of aging U.S.
nuclear power plants is fast becoming a
safety concern and a significant operational cost, not to mention an indication
of potential future liability for nuclear
utilities currently constructing new plants
Material Handling for

Biomass Power Generation
or retrofitting existing sites. According

to the Electric Power Research Institute,
the physical maintenance of degraded
steel water pipe systems, combined with
the operational costs of shutting a plant
down during repairs, is already costing
some nuclear utilities up to $25 million
per year.
The problem is particularly sensitive
when the water pipe systems in question
are safety-related, such as the essential
service water (ESW) systems that stand
ready to cool a reactor when needed. In
these systems, water-cooled secondary
heat exchangers are used to maintain public safety and power generation continuity. Lost revenue from a system shutdown,
which is likely when an ESW system fails,
can be more than $1 million per day for a
utility due to the expense of purchasing
electricity on the open market to replace
what was being generated by the plant.
Carbon steel pipe is the incumbent
medium for transporting water to heat
exchangers in ESW systems, but alternatives are being explored and, in the case
of Amerens Callaway Nuclear Power Plant
in Fulton, Mo., alternatives are now in
operation.
U
N I T E D STATES
STATES
UNITED
CCANADA
ANADA
SW
EDEN
SWEDEN
Silos
Biomass Handling Equipment

Complete Engineered Systems
Pulverized Coal Boiler Conversions
CFB Boiler Feed Systems
Wood Hogs
Disc Screens
Open Storage
Closed Storage
Truck Dumpers
Chain Conveyors
Bucket Elevators
Screw Conveyors
Screw Reclaimers
See our Biomass video at www.jeffreyrader.com/videoB

USA: CORPORATE HEADQUARTERS
Jeffrey Rader Corporation
398 Willis Road
Woodruff, SC, USA 29388
Phone: 864.476.7523
Fax: 864.476.7510
CANADA: Montreal, Quebec

Jeffrey Rader Canada
2350 Place Trans-Canadienne
Dorval, Quebec H9P 2X5 Canada
Phone: 514.822.2660
Fax: 514.822.2699
CANADA: Vancouver, BC
Jeffrey Rader Canada
Unit 2, 62 Fawcett Road
Coquitlam, BC V3K 6V5 Canada
Phone: 604.299.0241
Fax: 604.299.1491
Pneumatic Conveying
SWEDEN: Stockholm
Jeffrey Rader AB
Domnarvsgatan 11, 163 53 SPNGA
Stockholm, Sweden
Phone: +46 8 56 47 57 47
Fax: +46 8 56 47 57 48
For information on how Jeffrey Rader Corporation can solve your Biomass Handling needs, visit us at www.jeffreyrader.com/pow
November 2009 POWER
www.powermag.com
19
focus on o&M
2. A nuclear industry first.
Installation of an underground essential service water

pipe system made from bimodal high-density
polyethylene or HDPE at AmerenUEs Callaway Nuclear Power Plant in Fulton, Mo., was
an industry first. Courtesy: Dow Chemical Co.
An Alternative to Carbon Steel

AmerenUE, a subsidiary of Ameren Corp.,
has pioneered the use of polyethylene
(PE) as a new alternative to steel pipe
ESW systems at its 1,200-MW Callaway
plant. Polyethylene material does not corrode, rust, rot, pit, tuberculate, or support biological growth. It also has an
outstanding field performance record for
more than half a century in water piping
systems. Taking advantage of material
science advances in bimodal polyethylene resins and a collaborative effort with
a resin supplier, a pipe manufacturer, a
pipe fittings manufacturer, an engineering contractor, and a primary construction contractor, AmerenUE engineers and
construction teams have successfully replaced the carbon steel ESW pipe system
at Callaway with a new class of bimodal
high-density polyethylene (HDPE) pipe
(Figure 2).
Prior to the installation at Callaway,
PE pipe had not been used for a safetyrelated ASME Class 3 water pipe application at a nuclear power plant in the U.S.
AmerenUEs use of bimodal HDPE met all
design requirements, was validated with
extensive test data, and has also received
approval from the Nuclear Regulatory
Commission (NRC). This use of HDPE in
a safety-related water pipe system is a
first for the U.S. nuclear power industry
and could be instructive for other nuclear
utilities grappling with steel water pipe
corrosion issues.
20
The ESW pipe systems at Callaway hold

and transport service water drawn from
the reservoir pond inside the plant. Since
the plant started operations in 1984, the
original buried carbon steel water pipe
systems have been continually susceptible
to corrosion, fouling, rusting, and microbiologically induced corrosion, leading
to pipe integrity issues such as pinhole
leaks, pitting, and other localized forms
of degradation. The detection of even a
single pinhole leak meant taking down the
offending ESW system for up to 72 hours
for repair and sometimes resulted in the
plant being shut down entirely. It takes
several days to restart a nuclear plant, and
problems literally the size of a pinhole
were sometimes costing AmerenUE up to
$1 million per shutdown.
The tipping point at Callaway was a
combination of test results and an internal
visual inspection of an ESW pipe in early
2007. Though it had only been in service
for 24 years, the unlined water pipe system once again showed signs of significant degradation, including four pinhole
leaks and pits. Frustrated at the prospect
of yet more disruption and spiraling maintenance costs, the Major Modification
Group and mechanical design engineers
at Callaway determined that they would
start to evaluate alternatives to carbon
steel pipe. One immediate option was
HDPE, which had already been used at
Callaway in non-safety-related water pipe
systems such as fire protection piping.

The installation of this system gave Callaway engineers valuable experience with
HDPE and pipe fusion methods.
HDPE pipe was attractive to AmerenUE
at Callaway for several reasons:
HDPE pipe is leak-free when produced
properly, even at joints, which can be
as strong and leak-free as the pipe
itself through use of the heat fusion
joining technique.
HDPE is corrosion and chemical resistant: It does not rust, rot, pit, corrode, tuberculate, or support biological
growth.
HDPE offers seismic resistance, in that
it can safely accommodate repetitive pressure surges above its static
pressure rating and is well suited for
seismic loading due to its natural flexibility.
HDPE is easier and more cost-efficient
to install than carbon steel.
Starting from Scratch
As this was to be the first ever use of HDPE
in a safety-related water pipe system at
a nuclear plant in North America, the
team at Callaway had to create a material
specification and related procedures from
scratch. In the process, they underwent a
change in mindset from focusing on what
was available to specifying what was really needed. Most importantly, Callaway
3. Plastic replaces steel. HPDE pipe and joint fittings were required to be tested to confirm that they met the quality and safety specifications of ASME Class 3 nuclear service piping
systems. AmerenUE submitted a special Relief Request to the NRC in 2008 demonstrating that
HPDE pipe could be used instead of carbon steel pipe. Courtesy: Dow Chemical Co.
www.powermag.com
POWER November 2009
focus on o&M
engineers began to work closely with
members of the HDPE pipe value chain.
These players included The Dow Chemical
Co. (Dow) as the HDPE supplier, WL Plastics Corp. as the pipe manufacturer, and
Independent Pipe Products Inc. for the
manufacture of special pipe fittings. The
consultant, Frank Schaaf, Jr. of Sterling
Refrigeration Corp., was also instrumental
in the work necessary to gain approvals
from the NRC (Figure 3).
After an evaluation of available options,
and based on the service condition and
stringent requirements for HDPE pipe performance, the Callaway team selected CONTINUUM DGDA-2492 Bimodal Polyethylene
Resin from Dow as the raw material for its
new ESW secondary water pipe system.
Given the groundbreaking nature of the
application for HDPE pipe, no American Society of Mechanical Engineers (ASME) code
and standard is available. Callaway needed
to obtain approval from the NRC through a
Relief Request. In order to be approved for
use by the NRC, water pipes manufactured
from HDPE had to demonstrate that they
could match the quality and safety specifications of ASME Class 3 nuclear service
piping systems. AmerenUE submitted a
special Relief Request to the NRC in 2008
with documentary evidence proving that
the specified HDPE pipe could be used in
lieu of carbon steel Class 3 pipe.
The Relief Request asked for NRC approval for using HDPE pipe based on the
specified CONTINUUM DGDA-2492 resin.
Callaway engineers knew that the HDPE
pipe would need to meet water pressures
of 161 psig at 95F and 45 psig at 176F.
CONTINUUM DGDA-2492 has a 2.5-year
pressure listing by the Plastic Pipe Institute, exceeding the application of a
three-month requirement, at 176F.
Initially, the NRC had a concern regarding the effect of increased stress
intensity on the slow crack growth (SCG)
resistance of the proposed 36-inch pipe.
This concern was mitigated because CONTINUUM DGDA-2492 resin has >10,000h
PENT, more than 20 times better than the
most stringent ASTM SCG requirement for
PE4710 (a higher performance standard
for HDPE pipe); it meets and exceeds the
requirement at the adjusted higher stress
intensity. In addition, the NRC requested
that Callaway conduct extensive testing
on the joint to ensure the integrity of the
pipeline. As a result, a total of 168 pieces
of fusion joint samples were tested using
NRC-recommended test methods. All joints
passed the test without a single failure.
The request was officially approved by the
NRC on October 31, 2008.
November 2009 POWER
Place the Pipe

AmerenUE anticipated such a result, and
its engineering firm, Sargent & Lundy LLC,
together with its primary construction
contractor, Corrigan Mechanical, moved
quickly to make the piping replacement
at Callaway.
Installation of the HDPE ESW pipe project was completed by December 9, 2008.
Approximately 1,800 feet of 36-inch HDPE
pipe (with 4-inch wall thickness) was installed underground at the site. A number
of special HDPE joint fittings at 45-degree
and 22.5-degree angles were also successfully fused to the main pipe components.
The new HDPE ESW system was started
up on December 10, 2008, and immediately demonstrated its value. Callaway engineers noted no vibrations in the HDPE
sections of the system, though some steel
pipe sections in the pump house did vibrate due to a static issue. In addition,
due to the lower friction, the new HDPE
pipe was found to allow about 150 gallons more water flow-through per minute
than the previous steel pipe it replaced,
even with a smaller inside diameter.
According to the team at Callaway, this
installation is a first important step toward
HDPE becoming a preferred material for
safety-related water pipe systems at nuclear power stations. AmerenUE is already
planning to replace other buried piping
with HDPE in other systems in 2009.
Contributed by Jimmy Zhou
(dowpipeline@dow.com), a senior development specialist for the Dow Chemical Co., and Frank Schaaf (treecode@
cs.com), an energy industry consultant for
the Sterling Refrigeration Corp.
Scale Model Testing

Confirms Adequate
Refueling Water Storage
Tank Vortex Allowance
Recent Nuclear Regulatory Commission

(NRC) Component Design Bases Inspection
activities have scrutinized empirical approaches used to determine vortex allowances for emergency core cooling system
(ECCS) suction sources. In 2006, the NRC
asked nuclear plant operators to review
their analysis of the tanks in their ECCS and
containment spray systems (CSS). The NRC
wanted to verify that plant designs were adequate to ensure that any vortices formed
during draw-down of the fluid would not
result in pump air ingestion (see sidebar).
Duke Energy Corp. of Charlotte, N.C., opted
to perform rigorous physical scale model
testing to demonstrate adequate vortex allowances were present in its designs.
www.powermag.com
The ECCS includes a variety of different pump designs: some are singlestage centrifugal, some are multi-stage
pumpsand the latter are very intolerant
to air ingestion, says Bryan Meyer, principal engineer in the Primary Systems Engineering Group at Duke Energys McGuire
Nuclear Station.
To demonstrate that its cooling systems could operate safely, Duke Energy
NRC Issues Notice on

Air Entrainment
On September 21, 2006, the U.S. Nuclear Regulatory Commission (NRC)
issued NRC Information Notice 200621 Operating Experience Regarding
Entrainment of Air into Emergency
Core Cooling and Containment Spray
Systems. As the notice stated, air can
severely compromise the cooling system operation: Air entrained by more
than a few percent by volume may degrade or cause failure of centrifugal
type pumps. A degraded pump which
successfully expels small amounts of
entrained air (or other gases), may
become air (or gas) bound to such a
degree that it will not restart after being stopped due to the coalescing of
air into the pump casing. Additionally,
voids in the pumped fluid can cause
excessive vibration and wear of important internal parts.
The information notice was prompted by events at several nuclear power
facilities. Each plant in question had
different conditions that put it at risk,
but the fact that there were multiple
potential problem sources emphasized
the need for a review of all individual
nuclear plants.
As the report states: The above described events highlight the importance
of proper engineering analysis in ensuring that entrained air will not enter suction supply lines and impair the ability
of the ECCS and CSS pumps to perform
their specified safety functions. The
conditions which could have allowed air
to be entrained had not been revealed
by routine surveillance testing of pumping capability because it is not always
practicable for the surveillance test to
replicate the accident conditions that
could cause air entrainment.
21
focus on o&M
4. Vortex classification. Vortex types 1 through 4 are common and usually dont cause
damage to the pump. Vortex types 5 and 6 ingest air into the pump and can cause significant
damage to a pump. Source: Alden Labs
Surface swirl
Surface dimple:
coherent swirl
Dye core to
intake: coherent
swirl throughout
water column
Vortex pulling floating

trash, but not air
Trash
Full air core

to intake
Vortex pulling air
bubbles to intake
Air bubbles
engaged Alden Research Laboratories

(Alden) of Holden, Mass., to conduct
physical modeling of its refueling water
storage tanks (RWST). The tanks were
found to be well within the margin of
safety.
The physical modeling allowed us to
recover additional margin in our usable
tank inventory and reduce our vortex allowance dramatically, says Meyer.
Modeling Vortices
For many utilities, once the NRC issued
Information Notice 2006-21, Operating
Experience Regarding Entrainment of Air
into Emergency Core Cooling and Containment Spray Systems, the first action was
to conduct a literature search to determine if existing research could validate
their system designs without having to
conduct individual testing. In most cases,
this proved fruitless.
Its not a case where one size fits all,
says Andrew Johansson, Aldens director
of hydraulic modeling. The flow rates
vary, the plant geometries vary, and so the
results are dependent on those flow rates
as well as plant-specific geometries.
Some utilities have expressed an interest in parametric testing that would guide
decision-making. To date, no such studies
have been carried out. Another option was
to use computational fluid dynamics (CFD).
However, this wouldnt deliver the accurate,
defensible results required. CFD has come a
long way over the past decade as increasingly powerful computers make it possible
to model flows with higher precision. One
issue they have not yet been able to solve,
however, is vortex formation.
22
Vortex formation is unstable, and CFD

models are unable to predict the unsteady
nature of the vortex, says Johansson.
In addition, although CFD may be
able to show a swirl beginning within
the cooling water, it cant show whether
or not that swirl poses a problem. There
are six different levels of vortices, ranging from Type 1, where water is swirling
on the surface, to Type 6, where there is
a full air core reaching from the surface
into the intake. Types 1 through 4 dont
pose a problem of air entrainment. Type 5
(vortex pulling air bubbles to intake) and
Type 6 can be disastrous (Figure 4).
Even if you did a CFD study and could
predict vortexing, you would not know
whether it was just a surface rotation or
something stronger like a vortex drawing
air bubbles or a full air-core vortex pulling air into the inlet, says Johansson.
The only way to determine if a vortex
will form and whether it will cause a problem, is to build a scale model simulating
the geometry of the tank, the size and
shape of the inlet nozzles, and the flow
rate of the pumps. In doing so, it is essential to have a tank that is large enough
to create an accurate simulation, but not
so large that it becomes cost prohibitive.
The models are constructed using Froude
(Fr) number similarity, because the flow
process is controlled by gravity and inertia. The Froude number is calculated
by dividing the average velocity at the
intake (V) by the square root of gravitational acceleration (g) times the average
intake diameter (L): Fr = V (gL).
As long as the scale model is large
enough to minimize any viscous or surwww.powermag.com
face tension effects, by keeping Fr constant, the flow patterns in the hydraulic
model will simulate those in the plant.
For nuclear tank draw-down models, a
scale of 1:2 to 1:5 generally meets these
requirements.
Building the Model
Duke Energy Corp. owns and operates three
nuclear stationsCatawba, McGuire, and
Oconeeand opted to perform physical
scale model testing for all three stations.
The system design requires that the
RWST suction piping remain water-filled
during drawdown, such that no air ingestion occurs, says Meyer. We must transfer pumps from the tank prior to the pipe
becoming voided.
The company considered using CFD but
eventually opted for hydraulic modeling.
Alden was ultimately selected to perform
the scale model testing. Alden proposed
the most rigorous modeling and technical
approach, says Meyer.
Alden, which has been conducting
hydraulics research for more than a century, has an established reputation with
the NRC and has an on-site calibration
laboratory to ensure that all measurements are accurate. Flow meter calibrations are done using equipment that is
NIST (National Institute of Standards and
Technology) traceable and accurate to
within 0.25%.
Because several different tanks with
different geometries needed to be modeled, Alden utilized a circular tank with
a diameter of approximately 10 feet at
the bottom and a depth of approximately
5.5 feet, which would allow simulation of
different depths. For the McGuire station,
which consists of two 1,100-MW Westinghouse pressurized water reactors with
wet/ice containment, a model-scale of
1:4.073 was used.
The 24-inch primary outlet pipe, which
is installed at a 45 degree angle, with the
elliptical entrance 12 inches above the
tank bottom, was modeled using acrylic
pipe. The installation of clear acrylic piping enabled visual observations of air
entrainment. A flow loop could operate
closed, fully open, or partially open. Partial return flow controls the rate of drawdown in the water tank, with the rest of
the water going to the laboratory sump.
Because water and acrylic have nearly
identical refractive indexes, a rectangular
acrylic viewing box was installed around
the outlet pipe to compensate for the visual distortion of the curved pipe and to
allow for good viewing and videotaping of
the air bubbles (Figure 5).
POWER November 2009
2009 Swagelok Company
In times like these, you need more than the right product in the right place. Thats
why, at Swagelok, we take training to heart. Working side by side with you to improve
Because show me
works so much
better than tell me.
your bottom line, well guide you in everything from correct component installation to
efficient steam systems and orbital welding. We even offer a variety of self-paced online
courses through Swagelok University, covering product and technology information
and applications. It all stems from our dedication to Continuous Improvement both for
ourselves and our customers. And its just one more way we continue to offer more than
you might expect. See for yourself at swagelok.com/training.
focus on o&M
5. Scale models. Alden
Labs designed a scale model test of the pump suction at the

Duke Energy nuclear plants. Duke Energy elected to develop scale models to determine vortex
allowances for its three plants emergency core cooling systems and containment spray systems to demonstrate that their pump suction designs ensure that any vortices formed during
drawdown of the fluid would not result in pump air ingestion. Courtesy: Alden Labs
A series of 10 tests were run at prototype flow rates from 1,600 gpm to 19,700
gpm. Five of the tests were conducted
with a return flow rate representing a water level drop of about 0.5 inch per minute, and five were done with the return
pipe closed.
The tests showed that the tank could
safely operate at much lower water levels
than required by ANSIs Hydraulic Institute Standards (HIS). Whereas the HIS
specified a submergence of 2.85 feet for
a flow of 1,600 gpm and 8.70 feet for
19,700 gpm, the hydraulic model testing
showed that the tank was free of air entrainment to depths as low as 0.045 feet
at 1,600 gpm and 0.705 feet with no return flow at 19,700 gpm.
Similar results were achieved on the
tests for the tanks at the two other Duke
stations. As a result, Duke was able to
demonstrate that prior vortex allowances
were conservative and avoided the need
for additional vortex suppression devices
priced at roughly $50,000, without plant
down-time expenses included.
Contributed by Drew Robb, a Los
Angelesbased writer specializing in
engineering and technology issues.
Weve discovered
the next source of
renewable energy.
Manpower.
With global experience in fossil, wind, solar and nuclear projects,

we dont just believe in our ability to build a sustainable future. We prove it.
www.bakerconcrete.com
24
www.powermag.com
POWER November 2009
LEGAL & REGULATORY
Steven F. Greenwald
Jeffrey P. Gray
=Conn. v. AEP: Call for

Congressional Action
By Steven F. Greenwald and Jeffrey P. Gray
n September, the Second Circuit Court of Appeals reversed

the district court ruling in Connecticut v. American Electric
Power (Decision), a lawsuit initiated by eight states,
New York City, and environmental organizations against six
power-generating utilities. The plaintiffs allege that carbon
dioxide emissions from the defendants fossil fuelfired power plants in 20 states are contributing to a public nuisance
climate change and global warming. The Decision rejects a
variety of defenses asserting that climate changerelated
damages raise political questions and are thus not suitable
for judicial resolution.
The Connecticut case is one of several now pending in which
plaintiffs are advancing various tort theories to challenge the
carbon emissions by the electric utility, automotive, and oil industries. Assuming the Decision is not overturned by the Supreme Court, and assuming no superseding federal legislation,
the Decision will be urged as precedent for the existence of a
federal common law public nuisance claim and is likely to encourage the filing of additional actions asserting the theory.
Climate Change Is Not a Discrete Issue
Remedial measures to combat climate change are best designed

and implemented by legislators and regulatory agencies. Judicial
initiatives triggered by a finding of fault will distract society
from the critical objectives of determining the actual scope of
the problem, how best to solve it, and how to allocate the costs
required to address it. (See Climate Change: Policy via Litigation? in the July 2008 issue of POWER.)
The Decisions 139 pages of legal analysis and history trace
public nuisance law back to the American colonies and British
monarchy. Nonetheless, the Decision turns on the fundamental
question of the capability of a courts adjudicatory process to
respond meaningfully to climate change. The Decision strains to
portray climate change as a garden-variety discrete dispute,
limited to Defendants alleged public nuisance and Plaintiffs
alleged injuries. It is not.
The Decision rationalizes that on remand the district court
will not be asked to fashion a comprehensive and far-reaching
solution to global climate change. The Decision further promises that [w]ell-settled principles of tort and public nuisance
law will provide the district court appropriate guidance to
resolve the discrete issue. We respectfully disagree.
The District Court Should Do What?
The complaints seek to impose tort liability, alleging that the

defendants generation of electricity has been and will continue
to be wrongful. The plaintiffs request the court to permanently
. . . enjoin each Defendant to abate [the] nuisance first by capping carbon dioxide emissions and then by reducing emissions by
a specified percentage each year for at least ten years.
26
These questions are not discrete; rather, they are inextricably intertwined with the climate change/energy future issues being debated nationally. Furthermore, no well-settled principles
are available to guide the district court. The remand for further
proceedings order offers no criteria to resolve whether the generation of electricity, fully compliant with operating permits and
other regulatory requirements, may constitute an actionable tort.
With respect to the possible remedy the district court may
impose, the Decision again retreats into legal abstractionsthe
district court may not set across-the-board domestic emissions
standards or require any unilateral, mandatory emissions reductions over entities not party to the suit. How the district court
is to adhere to this mandate and yet fashion a meaningful remedy and reduce emissions in the eight plaintiff states that stretch
from coast to coast is never intimated.
Congress Must Act
Tort law works best in discrete two-party disputes in which the

courts order can restore the damaged party to the conditions
existing prior the tortuous conduct (such as through monetary
damages) and the remedy has little or no consequences on the
general public (such as prohibiting a junk yard at a neighbors residence). Tort law offers a poor means to seriously address climate change. Emissions at fossil fuel plants can only
be reduced by ceasing or curtailing operations or installing
retrofits. Either option will increase the generation costs and
potentially impair the reliability of electric service. The costs
emanating from the court order will inevitably flow to consumers. The judicial system lacks the expertise to balance the competing values of cost and reliability of electric service versus
the costs climate change will continue to impose if the planet
maintains its current emission levels.
The Decision, however, does offer a better solution. It reminds
us that the separation of powers cornerstone of our federalist system retains for Congress the full authority to override any judicial decision based on federal common law. Enacting effective
climate change legislation presents Congress daunting economic
and scientific challenges, but further congressional delay is not
a responsible option. Political rhetoric based on climate change
denial must yield to proposing solutions to the challenges that
climate change poses for this and future generations.
As John Rowe, chairman and CEO of Exelon Corp., recently
stated: The carbon-based free lunch is over. The Decision
makes clear that, by failing to act in a timely way, Congress
will be abdicating its legislative responsibilities to the judiciary,
which is ill-equipped to develop or implement an effective strategy for addressing climate change.
Steven F. Greenwald (stevegreenwald@dwt.com) leads Davis
Wright Tremaines Energy Practice Group. Jeffrey P. Gray
(jeffgray@dwt.com) is a partner in the firms Energy Practice Group.
www.powermag.com
POWER November 2009
Potential is limitless.
An idea has no momentum until talented people start
chasing it. Its then that one begins to glimpse whats
possible, and the future begins to take shape. Today,
we are thousands of people sharing ideas, dedicated to
finding new ways to meet the needs of an ever-demanding
Power sector. Which is why, when it comes to nuclear,
natural gas, coal, renewables and hydroelectric, more
people are turning to us to get it done. We are URS.
POWER
INFRASTRUCTURE
FEDERAL
INDUSTRIAL & COMMERCIAL
URSCORP.COM
TOP PLANTS
Diablo Canyon Power Plant

San Luis Obispo County, California
Owner/Operator: Pacific Gas & Electric Co.
Diablo Canyon Power Plant, which is situated in a postcard-perfect location on

the central California coastline, generates electricity for more than three
million households in central and northern California. In 2009 the project team at the dual-unit Westinghouse pressurized water reactor facility
replaced four steam generators at Unit 1 in just 58 days. Through meticulous planning and excellent project execution, performance on this
Unit 1 project was an improvement on the earlier Unit 2 steam generator
replacement project.
By Angela Neville, JD
ocated on the dramatic Pacific coastline

and encircled by green mountain ranges,
Pacific Gas & Electric Co.s (PG&Es)
Diablo Canyon Power Plant (DCPP) has a
surrounding worthy of a five-star resort (Figure 1). But the project team at this facility
definitely did not embrace a laid-back California attitude during their recent steam generator replacement project (SGRP). Instead,
they set up an aggressive work schedule and
replaced four steam generators in Unit 1 in
record time with a superlative safety record.
1. Pacific powerhouse. The 2,300-MW Diablo Canyon Power Plant is located near Avila
Beach in central California. The installation of eight generators in 2008 and 2009 was the largest project in the history of the plant since initial construction was completed in the 1980s.
Courtesy: PG&E
Project Profile
The Steam Generating Team West (SGT), a
URS Washington Division/AREVA NP joint
venture company, provided services for replacing the four steam generators at Unit 1 during
a planned refueling outage that began in January 2009 and was completed in 58 days.
Steam generators are replaced as part of
a power plants long-term maintenance program. Inside the steam generators used in
pressurized water reactor power plants, heated water that has passed through the reactor
is pumped through thousands of small tubes.
The heat is then transferred through the walls
of the tubes to water in a separate system,
which then boils and turns into steam. The
energy in the steam is used to turn a turbine
generator to generate electricity. The steam
generators used at DCPP are each 70 feet
long and weigh 350 tons.
Each of the two DCPP units produces
1,150 MW, and each unit was designed with
four steam generators. SGT provided project management, planning, engineering, and
construction services to prepare and install
the four new steam generators. In 2008 the
SGT team had successfully replaced the
28
steam generators in Unit 2 during a scheduled refueling outage.

SGTs scope of work included general design, safety analysis, licensing, old generator
storage facility design and construction, construction of temporary facilities, removal of
existing steam generator insulation, removal
of existing steam generators, installation of
replacement steam generators, supply and
installation of new insulation, and restoration of the plant.
Safety: A Vital Concern

SGRPs pose a significant challenge to employee safety, as the work is performed in
www.powermag.com
an operating facility with a large variety of

potential physical and radiological hazards.
These challenges include high-radiation
areas, confined spaces, heavy rigging, and
hot work in close quarters. Safety permeated all aspects of the teams work, and each
task was meticulously planned. SGTs total
workforce for the DCPP Unit 1 outage exceeded 1,100 manual and nonmanual personnel. The project achieved 1 million safe
work hours on December 1, 2008, and 1.9
million safe hours through project demobilization in May 2009.
The project team finished under the radiation dose goal and in the top quartile indus-
POWER November 2009
In the gas turbine game, you need PSM on your roster.

PSM, an Alstom Group Company, now delivers a full scope of turbine services. High technology gas turbine parts including
all critical F-Class components. Comprehensive reconditioning services in a new 80,000 square foot facility. Expert field
services with 24 hour response for F-Class and E-Class fleets. And flexible long term agreements designed to meet your
specific needs. Its the full support you need season after season.
psm.com
The Proven Alternative
1440 West Indiantown Rd. | Jupiter, Florida 33458 | P 561.354.1100 | F 561.354.1199

Top planTs
try performance for radiological exposure.
This feat was accomplished while working
in a 30% higher radiation dose field compared with the Unit 2 SGRP performance
while achieving a radiation dose that was
only 15% higher. The team was committed
to keeping radiation exposure as low as reasonably achievable (ALARA) and employed
innovative ideas to minimize the radiological exposure, such as additional shielding
and work sequencing.
A Complex Undertaking with

Many Tasks
Steam generator replacements are complex,
schedule-driven projects that require intricate engineering and planning that begins
years before the outage starts. The meticulous preplanning for DCPP began in April
200545 months before the January 2009
Unit 1 outage began.
Steam generator replacement engineering and planning consists of many tasks
to ensure success. Among the tasks in this
project were:
26 task plans covering how the work

would be managed and performed.
16 Unit 1 design change packages covering all contract design specifications.
169 Unit 1 work packages covering detailed implementation work steps.
69 Unit 1 playbooks detailing tooling coordination steps and permits needed for
each work package.
ALARA dose estimate, ALARA planning, and radioactive waste management
for both pre-outage and outage.
An integrated outage schedule to coordinate all SGT and plant work activities.
A bottoms-up estimate at completion and
burn rate cost-tracking tools.
Detailed risk identification for SGT, subcontractors, and PG&E.
Direct labor staffing both through local
unions and third-party subcontractors.
Pre-outage work included installing temporary facilities for craft, trailers for the staff,
and warehouse storage. To provide storage
for the old steam generators coming out of
containment, SGT built a large concrete
structure that could house up to eight steam
generators and two reactor vessel heads.
Before the outage, major equipment was
procured and tested on-site, and major lifting and transfer systems were installed and
tested. Temporary power and scaffolding
were installed at accessible areas in containment. Personnel were qualified and tested
for site access, radiation worker and welding
requirements, and other job-specific needs.
The team challenged station conventional
outage preparations by maximizing work inside the containment while the unit was still
at 100% power.
Like every SGT replacement outage, the
DCPP project comprised multiple integrated
scopes of work that all required careful and
exact schedule adherence to ensure successful implementation. The major work scope
included, but was not limited to, the cutting,
rigging, and removal of the old steam generators as well as transporting them to the
concrete storage facility.
Next, the new replacement Westinghouse
steam generators were transported, rigged,
set, and welded (Figure 2). Using photogrammetry and computer modeling, SGT
was able to position the 70-foot-long, 350ton replacement steam generators to within
1/16th inch of the required design criteria, an
accomplishment recognized industrywide.
Platform upgrades, instrumentation reroutes,
interference removal and installation, and
other plant system modifications were per-
formed in parallel with the steam generator

change-out scope.
Concurrent with the replacement scope
and plant start-up, demobilization and closeout activities were in progress. By mid-April
more than 1,100 project personnel, both
craft and temporary project staff, left as their
work was completed. In addition to the personnel resources, more than 450 truckloads
of major construction equipmentincluding
cranes, forklifts, welders, generators, flatbed
trucks, and trailersleft the plant to either
return to vendors or be transported to another SGT project. SGT also disassembled
the hatch transfer system (HTS), outside
lift system (OLS), and single-point lift system (SPLS); disassembled and packed up
scaffold; removed temporary power; and
demobilized the temporary facilities. SGT
engineering and quality groups closed out
paperwork on 169 work packages, 16 design
change packages, and multiple major subcontracts and purchase orders.
Planning and Innovation Drive

Safe Performance
The project team was able to maximize what
it had learned on the Unit 2 SGRP. By the
end of that project, the team had identified
and dispositioned more than 1,100 lessons
learned that covered a multitude of subject/
process areas.
The instrumentation and controls (I&C)
element of the project proved particularly
challenging: The total scope involved removing and rerouting more than 3,000 feet
of tubing; there are fewer than 1,000 feet in a
typical steam generator replacement project.
Activities included fabrication of supports,
2. Team work.
Project team members worked together meticulously to complete the

welding on large components. Courtesy: Robert De Haas
At its peak, more than 1,100 SGT personnel worked at the plant on alternating 12-hour
shifts running 24 hours per day. The outage
schedule included 7,226 SGT activities, with
1,500 relationship ties to client activities.
The defueling, replacement of four steam
generators, refueling, and successful start-up
of the reactor and plant at DCPP Unit 1was
performed in 58 days breaker to breaker.
The contract schedule duration was 58 days
and 13 hours.
Complex planning and coordination began before the outage was under way. During the pre-outage period, the team prepared
for a seamless transition from normal operations to the major replacement outage scope.
30
www.powermag.com
POWER November 2009
Top planTs
3. Out with the old. An old steam generator leaving the containment area perched on
top of a self-propelled modular transporter. The generators had to be tied down during transport to prevent them from rolling off the self-propelled transport in the event of an earthquake.
Courtesy: Robert De Haas
installation of numerous concrete anchors,

routing and connecting tubing, documenting
as-built configurations, and field walkdowns
for acceptance of installed configurations.
From the early planning phase of the Unit
1 outage, the team determined that I&C
would likely drive the critical path at the end
of the outage. Coordination with other work
groups (such as platforms and upper lateral
supports) enhanced performance of the I&C
scope, which was completed ahead of schedule without ever making critical path. SGT
constructed a number of mock-ups that were
used during the pre-outage for craft, oversight, and quality control familiarity with the
I&C work scope.
Innovative planning with both SGT and
PG&E engineering involvement was key
in the area of insulation. The team built
pre-outage mock-ups in the warehouse and
obtained PG&E and SGT work groups acceptance to ensure that the configuration was
agreed upon prior to the outage. In addition,
the team performed much of the tubing installation and insulation (such as hangers)
earlier, during the first part of the outage.
Transco, the insulation subcontractor, installed stainless steel sheet metal on all of the
unanalyzed tubing, and all of the insulation
was prefabricated outside of the containment
building; both of these changes significantly
shortened the schedule.
The insulation group maintained a high
standard of excellence and safety while
successfully coordinating its activities with
those of many other groups during implementation of the project. There were no insulation events, and Transco shortened the
schedule considerably for all areas of insu-
November 2009 POWER
lation, including the instrumentation tubing,

when compared with the previous outage.
Keyway shims are an integral part of the
steam generator lateral supports. They close
up the interface between generator supports
and the fixed building structure. Due to the
difficulties of keyway shim installation on
uneven surfaces, the team investigated innovative alternatives to maintain the required
and restrictive gap criteria. The chosen methodology used custom-designed machines to
surface the keyways to a flat surface prior
to installing the keyway shims. The E.H.
Wachs Co. developed the conceptual design
and, after careful evaluation, SGT purchased
two of the custom-built machines for use in
the Unit 1 outage.
This proved to save time, money, and dose
during completion of the lower lateral supports. The team improved the performance of
routine rigging and handling and eliminated
issues that had arisen during the previous,
Unit 2 outage. For example, the support bolts
on three of the four steam generators in the
Unit 2 replacement project could not be easily removed; the team had to install welded
brackets, which added an extra step, to complete their removal. As this task was on the
critical path, the team developed an innovative contingency plan to thread studs to install
the down-ending device if the steam generator support bolts stuck during this project.
Challenges Due to Unique

Site Conditions
The containment building configuration and
original installation of the steam generators
was not designed to facilitate easy generator
replacement. A completely customized rigwww.powermag.com
ging system and an innovative assembly process were required to remove the four steam
generators. The heavy rigging subcontractor, Mammoet, worked with SGT to provide
these unique lifting and handling systems.
Managing the rigging operations through
DCPPs challenging configuration required
handling all components three times, rather
than the usual two times.
This major handling system included the
temporary lifting device, utilizing a containerized winch system (CWS) mounted on the
existing plant containment polar crane; the
installation of temporary lifting trunnions
on the generators; an upending/down-ending
device; the hatch transfer system; the singlepoint lifting system on the auxiliary building roof to transfer the generators from the
HTS to a self-propelled modular transporter
(SPMT) (Figure 3); and the outside lifting
system with the second CWS to lower the
generators to the ground. Finally, a second
SPMT moved the generators to the old steam
generator storage facility (OSGSF).
Once the steam generators were placed
on the SPMT by the SPLS, restraints were
used to tie down the generators The SPMT
then drove across the auxiliary building roof,
through the fuel-handling building (FHB),
and onto a specially designed, elevated platform outside the FHB. The drive engine on
the SPMT had to be removed and reinstalled
in a specially designed configuration due to
very tight clearances. Further considerations
required the SPMT to be designed to withstand an earthquake at any time while traveling with a steam generator load.
The OLS was installed outside the FHB
and was used to lift the steam generator from
the SPMT located on an elevated platform
and lower the steam generator to another
SPMT located on the ground. The OLS also
included a CWS to speed up the handling
process. Finally, the steam generators were
placed on and tied down to another SPMT for
transport to the interim storage building. The
transport covered approximately 1.5 miles,
most of which was up a 7% grade (Figure
4). The SPMT drove into the OSGSF and
offloaded the steam generators. The old generators will remain in this long-term storage
location until their final disposal as part of the
plant decommissioning and disposal. The rigging and handling process for installation of
the replacement steam generators was similar to the process described above, in reverse
(Figures 5 and 6).
Oversight and Focus Groups

Add Value
A Performance Improvement Oversight
Group (PIOG) was established to identify
high-consequence failure scenarios, imple31
Top planTs
4. Uphill climb. An old steam generator begins a trip up the hill; most of the trip to the old
steam generator facility was up a 7% grade. Courtesy: PG&E
5. Made in Spain. The
new generators were manufactured in Spain by the Westinghouse division Design/Equipos Nucleares S.A. (ENSA) and shipped to California. Then they
were transferred to barges in Port Hueneme and delivered to the dock near Diablo Canyon
Power Plant. Courtesy: Robert De Haas
6. Getting ready. Pre-outage activities included receipt of the replacement steam gen-
erators (RSGs), followed by preparation activities to ready the RSGs for installation and welding
to permanent systems. Courtesy: Robert De Haas
ment mitigation strategies, evaluate lessons

learned, and take actions to prevent future
occurrence of adverse trends. The PIOG met
each week to review the progress of actions
taken to address known issues or future/
potential issues, understand overall performance data and cross-cutting issues, and
determine and direct actions to address identified performance issues.
After the Unit 2 replacement, the team
had established focus groups consisting of
key stakeholders from PG&E and SGT (construction, engineering, quality, safety, and
radiation protection) to implement ways to
improve performance on the Unit 1 replacement project. These focus groups consisted of
nine teams and were formed to address critical
areas of the project such as safety, steam generator supports, structural, instrumentation,
rigging and handling, document turnover, and
work package closure. Because group members had worked together during the first outage, they functioned even more seamlessly as
a team during the second outage.
Members of the focus groups developed
a comprehensive, integrated schedule with
logic tie-ins that integrated SGT activities
both internally to the project and with other
activities planned at the plant. Over a period
of several weeks, the focus groups worked to
ensure that all applicable interfaces between
the various SGT project work groups were
identified and appropriately incorporated in
the pre-outage and outage integrated schedules. The focus groups obtained a commitment from all key stakeholders on their
pre-outage and outage schedule activity durations, sequences, coordination, predecessors, and successors. This effort ultimately
defined the SGT outage window duration.
Promoting Prevention of
Dropped Objects
Building on the success of the previous
steam generator replacements, SGT enhanced its already robust dropped object
prevention strategy. Dropped objects, which
can range from tools to scaffold parts, can
pose a hazard to employees or structures and
are directly attributed to poor housekeeping practices. SGT formed a hand-selected,
full-time team called the Red Hat Team,
which functioned as the frontline defense for
eliminating dropped objects and maintaining good housekeeping practices. Though a
Red Hat Team had been in place during the
earlier DCPP outage, for the Unit 1 outage,
the Red Hat Teams charter was to improve
the project teams overall housekeeping and
safety practices through active surveillance
and real-time feedback to the site manager.
Red Hat personnel, nine per shift, constantly monitored all areas of containment with a
32
www.powermag.com
POWER November 2009
Top planTs
primary focus: to monitor and report housekeeping deficiencies and
to aid and assist in the mitigation and prevention of dropped objects.
Red Hats were tasked with reporting and taking corrective action immediately when they observed any unsafe condition.
Training Strengthens the Team

All those who worked on the project received specific training
about project-related responsibilities and tasks. In addition, SGT
developed and implemented extensive supervisor training to provide a common base for performance and accountability. Training
covered key areas such as enforcing job safety rules using standardized daily pre-job briefings. Pre-job briefings covered safety,
human performance, and specific activities related to performance
of the days work. Supervisor training covered the dropped object
prevention plan and support for the Red Hat program, housekeeping, fire prevention, signs and barricades, fall protection, accident
reporting, and emergency preparedness.
A separate training session, presented by the project manager, established and defined expectations of supervisors, such as
encouraging the team to create and promote a safety-conscious
work environment. It also detailed how to supervise and give clear
direction. Training also focused on the importance of quality for
the SGT team and outlined procedures to report deficiencies and
maintain material control.
Wed Like
to Welcome
Metering
to the 21st
Century.
FULLY
I
AMR/AM
ble
Compati
Making Communication a Priority

Communication was fundamental to the success of the team, and
it was a crucial component to maintaining safety and schedule on
such a complex project. Each shift began with a plan of the day
(POD) meeting. As with all project meetings, a relevant safety
topic was at the top of the agenda. Other topics discussed included
ALARA, upcoming shift activities, progress toward schedule, and
client activities.
POD meetings served as a forum to communicate Red Hat observations and an opportunity for personnel to ask questions. The
content of completed real-time observation cards was discussed to
share successes and identify potential issues early. Discrepancies
and housekeeping issues were also discussed to ensure that the corrective measures were understood and ongoing difficulties would
be avoided. Information from the previous shift was carried forth
in these meetings, which helped provide continuity during the fastpaced outage phase of the project.
The Projects Economic Benefits

Replacing the steam generators in both units ensures that DCPP
will run through the length of its current operating license,
which expires in 2025. The old generators had been in operation
since the mid-1980s; if they had not been replaced, the power
plant would have had to shut down prior to the end of the licensed operating period. Maintaining the old generators also
had become costly.
Installing new steam generators is more cost-effective than
shutting down the power plant and obtaining power from other
sources. In addition, replacing the steam generators helps ensure
that the facility continues to operate at the safest possible level.
The complexity of this outage required bringing in more than
2,300 additional specialized workers. This influx of workers had a
positive effect on the local economy and brought new commercial
activity to local restaurants, hotels, and other businesses. The project also promoted positive relations between the power plant and
the local community.
Angela Neville, JD, is POWERs

senior editor.
November 2009 POWER
www.powermag.com
It has long been a practice to strap

high-voltage meters directly across
480V potential -- even though at 480V
the equipment is dangerous and more
susceptible to failure.
But not anymore. The revolutionary
VT-Packs from TSTM allow you to
operate meters and sockets at lower
voltage. Theyre easy to install,
cost effective and greatly increase safety
while reducing risk. To learn more,
visit us on the web at http://pow.ts-tm.com
or give us a call at 1 866 772 8786.
Fully compatible with AMR/AMI systems.
2900 Sencore Drive, Suite 100

Sioux Falls, SD 57107
1 866 772 8786 pow@ts-tm.com
http://pow.ts-tm.com
33
TOP PLANTS
Oconee Nuclear Station

Oconee County, South Carolina
Owner/operator: Duke Energy Corp.
Duke Energys nuclear fleet provides electricity to approximately half of the

utilitys customers in the Carolinas. The 2,538-MW Oconee Nuclear Station is part of that fleet and has been a pacesetter among U.S. nuclear
plants since it began operation in 1973. In order to maintain the plants
productivity and reliability, its staff implemented a comprehensive controls modernization project that spanned a decade. With its new stateof-the-art upgrades, the facility has become a leader in applying digital
electronic technology in the nuclear power industry.
By Angela Neville, JD
he Oconee Nuclear Station (Figure 1) is

set in the northwestern corner of South
Carolina, which is a land of waterfalls,
cool pine forests, and rivers with fast rapids
that are popular among whitewater rafters.
Fittingly located not far from the Chattooga
River, where the movie Deliverance was
filmed, the plant for more than 36 years has
successfully delivered more than 500 million
MWh of electricity to its customers. According to Duke Energy, it is the first nuclear
plant to achieve this milestone.
1. Leading by example. Through the years, the Oconee Nuclear Station has excelled in
providing safe, reliable energy. For example, it is the first U.S. nuclear plant to successfully deliver more than 500 million MWh of electricity to its customers. Courtesy: Duke Energy Corp.
Looking Back
Duke Energy Corp. designed and constructed Oconee Nuclear Station (ONS)
in the late 1960s and early 1970s. Units 1
and 2 began commercial operation in 1973,
and Unit 3 began operation in 1974. The
units have a common Babcock & Wilcox
pressurized water reactor design, and each
has a rated electrical generating capacity
of 885 MW. The original control systems
were analog systems, based on standard
power plant engineering practices of the
time, with no redundancy designed into the
systems. During the course of operation
through the mid-1990s, plant trips and transients were experienced due to single-point
vulnerabilities in the nonsafety control systems. Another problem became evident in
the 1980s when original equipment manufacturers (OEMs) for control and protection systems began to discontinue support
for that equipment.
Recognizing the economic and environmental benefits of operating ONS beyond the
original 40-year license, Duke applied for and,
in 2000, received a license extension from the
U.S. Nuclear Regulatory Commission (NRC)
34
permitting plant operation through 2034. Duke

recognized that significant replacements and
upgrades would be required to continue operating the facility in a reliable, cost-efficient
manner well into the 21st century.
Digital Modernization of Oconee

Nuclear Station
A report was developed to assist in identifying plant improvements to reduce the rate
of trips and transients. This report outlined
nonsafety control system modifications to
add redundancy and eliminate single-failure
vulnerabilities. As a result of the report, system upgrades were initiated on the integrated
control system, the main turbine control system, the main generator voltage regulator,
main feedwater pump control system, and
control rod drive system.
www.powermag.com
The obsolescence of control and protection systems due to discontinued OEM support was another issue being addressed at
the same time as the trip and transient report
recommendations. Facility personnel determined that digital system upgrades were
the best options to address obsolescence of
the reactor protection system, engineered
safeguards system, Keowee Hydroelectric
Plant exciter, Keowee governor, turbine supervisory instrumentation, and pneumatic
controllers and instrumentation.
The last input to the modernization project derived from the need to isolate feedwater during specific design basis events in
order to improve plant response and prevent
excessive cooling. To address this concern, a
new safety-related digital automatic feedwater isolation system was designed.
POWER November 2009
Westinghouse is focused
on nuclear energy.
The nuclear energy renaissance has already
created thousands of new jobs. By providing
reliable and affordable electricity, nuclear energy will help keep American
business competitive, and will power future worldwide job growth.
Westinghouse and its 13,000 global employees are proud of our
leadership position in this important industry. Our technology is already
the design basis for well over 40 percent of the worlds operating nuclear
power plants, including 60 percent of those in the United States.
The Westinghouse AP1000 nuclear power plant is the most advanced
of its kind currently available in the global marketplace. Four AP1000s
are now under construction in China, and the AP1000 is the announced
technology of choice for no less than 14 new plants planned for the
United States.
TM
Today, nuclear energy provides 16 percent of total global electricity

generation and 20 percent in the United States. Additionally,
nuclear energy accounts for more than 70 percent of the carbon-free
electricity in the United States.
Building additional advanced nuclear plants like the AP1000 will
enhance our energy security and provide future generations with safe,
clean and reliable electricity.
Check us out at www.westinghousenuclear.com
W E S T I N G H O U S E E L E C T R I C C O M PA N Y L L C
For a strong economy

and clean air,
Top planTs
A thorough modernization overhaul was
approved to perform all identified upgrades
over the course of a decade. These upgrades
have positioned ONS as a leading U.S. nuclear power plant in the application of digital
electronic technology. The remainder of this
article provides a summary of each upgrade.
sulted from ICS equipment failures following this upgrade. Historically, it was not
uncommon to have two reactor trips a year
due to ICS component failures.
This installation of a digital ICS was the
first in the industry for nuclear power plants.
The integrated control system (ICS) controls

reactor core power by regulating steam demand, control rod positions, and feedwater
input. Digital upgrade of the ICS was performed by Duke Energy personnel using
proven digital STAR modules from AREVA.
In addition, Duke Energy developed the
control software by converting existing analog plant control algorithms and then implementing experience-based enhancements
to improve plant operations. As part of the
upgrade, redundancy was built into the hardware and software design.
This installation was completed by late
1998. No plant trips or transients have re-
2. Triple hitter.
4. Keeping things under control. Heres what the control rod drive system cabinets
Integrated Control System
The main turbine control

system cabinet following the upgrade with a
triple-modular-redundant system. Courtesy:
Duke Energy Corp.
Main Turbine Control System

The main turbine control system provides
control and protection of the main turbine by
balancing steam power input with generator
output load. The digital upgrade of the main
look like after the upgrade with a triple-modular-redundant system. This picture shows processor modules and input /output modules. Courtesy: Duke Energy Corp.
5. Strength in numbers. The facility has redundant single-rod power supplies for each
3. Touch-smart equipment. The new
control rod. Courtesy: Duke Energy Corp.
main turbine control system has a touch

screen human machine interface. Courtesy:
Duke Energy Corp.
36
www.powermag.com
POWER November 2009
Top planTs
turbine control system involved installation
of a Triconex triple-module-redundant system
(Figures 2 and 3). The triple redundancy built
into the modular design dramatically increased
the fault tolerance of the system and eliminated
plant trips and transients due to main turbine
control system equipment failures. For example, the turbine valve position indication is
now performed by redundant position demand
indication such that the failure of an indication
does not result in a plant transient. This new
feature has prevented several reactor trips.
The improved performance of the digital
system has also been evident during required
equipment testing during power operation.
With the original main turbine control system, the facility experienced reactor power
swings of 3% to 4% during main steam stop
valve tests, but with the upgraded digital system the reactor power typically varies 0.5% or
less during a test. This more stable reactor response provides both operational and nuclear
safety benefits. In addition, the main turbine
control system design automated numerous
manual operator activities to minimize the
need for operator actions during chest warming, shell warming, and turbine start-up.
The main turbine control system digital
upgrade was completed in 2004.
Control Rod Drive System

The control rod drive (CRD) system receives
inputs from the ICS on desired control rod
position and manipulates control rods to the
demanded position. The digital upgrade of
the CRD system utilized an AREVA-designed
system on a triple-modular-redundant platform
from Triplex (Figures 4 and 5). The triple redundancy built into the modular design dramatically increased the systems fault tolerance.
For example, the upgraded CRD system
experienced the failure of a fuse disconnect in
the AC power supply system, but this failure
did not result in a reactor trip. As another example, failures of control rod power supplies
have occurred with the digital CRD system.
However, the redundant power supplies kept
the CRD energized and thereby prevented
dropped control rod events that could have led
to reactor trips. In addition to better fault tolerance, design functions were added to the CRD
system to improve system performance.
The CRD system digital upgrade is a nuclear
industry first and was completed in 2008.
Main Generator Voltage Regulator

The main generator voltage regulator controls
operation of the generator based upon load
demand. In the past, the analog main gen-
erator voltage regulator routinely experienced

equipment reliability issues, which resulted
in the units being operated in a manual mode
for extended time periods. The digital voltage
regulator upgrade included an automatic digital system from ABB. This included redundancy to prevent plant trips and transients. As
one example of the benefits of this upgrade, a
developing issue on the measuring unit board
was detected and the associated inputs were
disabled in order to prevent a plant trip.
The main generator voltage regulator digital upgrade was completed in 2008.
Main Feedwater Pump

Control System
Oconee uses two steam-driven variablespeed main feedwater pumps to provide water to steam generators for primary system
heat removal. The main feedwater pump
control system controls the speed of the main
feedwater pumps using an input demand signal from the ICS. The digital upgrade of the
main feedwater pump control system is the
last upgrade that was recommended by the
plant trip and transient review report.
Currently, design activities for this upgrade are in progress; implementation is
scheduled to start on Unit 3 in 2010. The
UDI International Electric Power Sourcebook
PURCHASE
TODAY!
The UDI International Electric Power Sourcebook is a must-have reference for anyone doing
business in the international electric power arena. Brought to you by Platts, the globally recognized
source for energy information, this CD-ROM has contact information and reference material unavailable from
any other single source. It is available in a convenient e-book PDF format which can be used on any PC.
Locate the right customer for your business.
Make informed decisions based on the facts.
The Directory section of the Sourcebook includes:
The Profiles section gives a comprehensive overview of the

electric power sector in every country and territory outside
North America, including:
Over 9,800 contacts at more than 4500 companies and

220 countries and territories outside North America
Extensively updated listings including electric utilities,
IPPs, and other private power companies, plus
government ministries and regulatory agencies
Contact information for more than 2500 individual power
plants
Detailed coverage of hundreds of power plant and

transmission system projects
A brief profile review of overall economic and energy
development, with country-level statistics
Information on privatization, restructuring activities,
renewable energy development, and much more
Visit http://infostore.platts.com/ or call us today:

North America
+1-800-PLATTS8 (toll-free)
+1-212-904-3070 (direct)
November 2009 POWER
EMEA
+44-(0)20-7176-6111
Latin America
+54-11-4804-1890
Asia-Pacific
+65-6530-6430
www.powermag.com
Russia
+7-495-783-4141
37
Top planTs
planned design incorporates redundancy
in the control system to address equipment
failure single-point vulnerabilities.
Process Control System

To upgrade numerous pneumatic controllers
and instrumentation, the digital modernization
project used a process control system based on
a foundation fieldbus infrastructure. The pneumatic instrument loops are on the secondary
side of the ONS units and impact the efficiency
of the stations performance. The conversion
of each pneumatic instrument loop to an electrical instrument loop was not the preferred
option due to limited space for installation
of the cabling needed for the loops. Thus, the
infrastructure was installed in the plant with
remote access points that have trunk connections to the process control system. This infrastructure was installed with the conversion of
approximately 50 instruments on each unit to
foundation fieldbus technology.
The process control system used equipment from Smar Technology to set up plant
infrastructure (Figures 6 and 7). This infrastructure addresses pneumatic equipment obsolescence and provides a means to continue
with the upgrade of hundreds of additional
pneumatic instruments over the next decade.
The performance of the fieldbus controllers

has demonstrated improvements over the
pneumatic equipment with respect to equipment reliability. As additional loops are converted to foundation fieldbus on the process
control system, improved plant efficiency is
expected from better equipment performance
and tolerances on the digital devices.
Completed in 2008, the installation of the
process control system is a nuclear industry
first for large-scale utilization of foundation
fieldbus.
tion and isolates feedwater to a steam generator for specific design basis events. For the
Babcock & Wilcox station design, steam generator isolation is required during some postulated accidents to prevent excessive reactor
cooldown. Because AFIS is a new system
added to address plant response during specific design basis events, a redundant safetyrelated digital platform was designed for the
upgrade (by AREVA) using safety-related
STAR modules. The installation of AFIS on
all three ONS units was completed in 2002.
Turbine Supervisory
Instrumentation
Keowee Hydroelectric Stations

Exciter and Governor
The turbine supervisory instrumentation

(TSI) system is a monitoring system for main
turbine vibration. The digital upgrade for the
TSI system addresses obsolete equipment
and provides for future expansion to include
the main feedwater pump turbine vibration
instrumentation. A Bently Nevada System
was installed for the TSI system digital upgrade. This project was completed in 2008.
Most nuclear power plants rely on diesel

generators to supply emergency electrical
power. ONS has an emergency power design
in which Duke Energys Keowee Hydroelectric Plant provides one source of emergency
backup power. The Keowee Hydroelectric
Plant was designed and placed in commercial operation in 1971. Due to its role in
ONS support, upgrades for its exciter and
governor systems were performed under the
nuclear quality assurance program.
The Keowee exciter was upgraded to
address obsolete equipment issues. A redundant system was obtained from General
Automatic Feedwater
Isolation System
The automatic feedwater isolation system
(AFIS) performs a safety-related design func-
Fire Protection &

Safety of Power Plants
PLUS!
Post conferen
ce
workshop led
by
the NRC
Tuesday 3 and Wednesday 4 November 2009, Boston, Massachusetts, USA www.vibevents.com/power/fp
Optimizing your re protection strategy to achieve cost

eective regulatory compliance and ecient plant operation
DISTINGUISHED SPEAKERS:
HOT TOPICS:
Jeery Ertman, Fire Protection

Supervisor, PROGRESS ENERGY
Reviewing the latest updates

to re protection regulations
Bob Taylor, ES&H, AMERICAN

ELECTRIC POWER
Reducing the impact

of Multiple Spurious
Operations
Brenda Simril, Fire Protection

Program Manager, TENNESSEE
VALLEY AUTHORITY TVA
Identifying and evaluating

the latest suppression and
detection technologies
Amjad Mian, Chief Protection

Ocer, MANITOBA HYDRO
Developing ecient
strategies for both retrot
and new-build projects
FPPP1109 HP_Advert.indd 1
38
The first ever cross

industry, case study
driven conference
designed specifically
for the power
generation sector
Organised by:
VIBevents
Sponsored by:
Accredited by:
Register now at www.vibevents.com/

power/fp and receive a 10% discount
by using reference code: PM
11/8/09 12:47:49
www.powermag.com
POWER November 2009
Publication: Power Magazine
Wouldnt it be great to know how your plant will operate in the future, allowing you to make informed critical
decisions? With Siemens SPPA-D3000, your entire plant is monitored through all operational cycles to provide
the earliest and most accurate warning of abnormal conditions. Our non-intrusive technologies provide realtime, in-depth, critical feedback and our root-cause analysis allows you to optimize your predictive maintenance
program. Run your assets with more confidence. Contact us today, and start listening to your plant.
www.siemens.com/energy/controls
Answers for energy.

B6LHPHQV3*B'B30DJLQGG
Untitled-1 1
30
10/20/09 6:55:48 AM
Bleed: 8.125w x 11 h
Get the earliest warning possible with Siemens SPPA-D3000 all-inclusive,

non-invasive, start-to-finish monitoring and diagnostic suite.
Trim: 7.875w x 10.75h
Live: 7w x 10h
What if I could have predicted

where and when my system
might fail?
Top planTs
6. Hardware holders.
Each Oconee Nuclear Station unit has

four process control system field hardware cabinets. These cabinets
contain all power supplies and linking devices to support up to 16 segments of H1 hardware. Courtesy: Duke Energy Corp.
Electric using Nuclear Logistics Inc. as the

third-party qualifier. Nuclear Logistics Inc.
qualified the Keowee exciter for safetyrelated design criteria including seismic,
equipment qualification, electromagnetic
interference, and other criteria.
In addition, the Keowee governor was upgraded to address obsolete equipment concerns. Duke used the AREVA Teleperm XS
system to provide controls for Keowee. The
control system had specific performance criteria unique to the Keowee design due to its
operational requirements.
Digital upgrades to the Keowee exciter and
governor systems were completed in 2004.
Reactor Protection System and

Engineered Safeguards System
The reactor protection system (RPS) monitors various inputs related to reactor core
operation and shuts the reactor down by
tripping control rods if any allowable values are exceeded. In this manner, the RPS
protects the integrity of the nuclear fuel,
which helps ensure the health and safety
of the public. The engineered safeguards
(ES) system monitors inputs that would
indicate the occurrence of certain design
basis events and actuates engineered safety
40
7. Continuous connection.
Each unit at the plant has a network/power cabinet that provides uninterruptible power and network
connection between field cabinets and system servers for the process control system. Courtesy: Duke Energy Corp.
features, such as cooling water injection, to

mitigate these events.
The digital upgrade to the RPS system
and ES system addresses equipment obsolescence concerns. It also includes system
enhancements that include additional ES
channels, which provide operational and
maintenance benefits. Another major benefit
of the RPS system and ES system digital upgrade project is the inclusion of online monitoring and diagnostic capabilities. Online
monitoring allows elimination of periodic
operator checks of system performance.
Because the RPS and ES systems are safety-related protection systems, NRC review
and approval was required. Oconees RPS
system and ES system digital upgrades will
be the first digital systems to receive regulatory approvals in the U.S. An AREVA Teleperm XS system will be used for this upgrade,
and NRC approval is expected in 2009; installation is scheduled to begin in 2011.
Water Treatment System

Most of the existing equipment in the water
treatment room was designed and built in the
1960s. Many of the water treatment system
components are no longer manufactured,
and replacement parts are unavailable. Digiwww.powermag.com
tal modernization of the water treatment system helped ensure a reliable source of plant
make-up water for the extended life of the
facility. In addition, the water treatment systems efficiency was improved by the digital
modernization.
21st-Century Digital Technology

Workers at ONS are completing a 10-year
program to upgrade 1970s-vintage instrumentation and control systems to state-ofthe-art digital technology. In doing so, Duke
Energy has become an industry leader in addressing the associated technical and regulatory issues. At present, the project team has
completed digital upgrades on the integrated
control system, the main turbine control system, the control rod drive system, the main
generator voltage regulator, the process
control system, and the automatic feedwater isolation system. Regulatory approval
for digital upgrades to the reactor protection system and the engineered safeguards
system is expected this year. Together, these
upgrades are successfully addressing longterm plant reliability and original equipment
obsolescence issues.
Angela Neville, JD, is POWERs

senior editor.
POWER November 2009
Introducing a breakthrough
in LM2500 engine depot services.
Chromalloy opens up a new option in LM2500 depot services with an independent, cost-conscious
alternative to the OEM. We now operate a full capability, 111,000 square foot depot facility in San Diego,
California. Our services combine more than 30 years experience in gas turbine MRO with unmatched
technological advancements and a global repair network. This unique combination enables us to provide
end-to-end depot services that are more responsive, customer-driven and capable of reducing costs.
Break free with the independent optionChromalloySM depot services.
Coatings / Repairs / Parts
To learn more, visit chromalloy.com
Industry trends
Nuclear Power Plants

in North America
Columbia Generating (WNP)
Monticello (N
Pra
Idaho Energy Complex (Bruneau Nuclear Plant)
Fort Calhoun
Cooper Station
Blue Castle Project
United States o
Diablo Canyon
Amarillo Nuclear Facility
San Onofre
Arkansas Nuc
Palo Verde
Comanc
Mexico
42
www.powermag.com
POWER November 2009
Industry trends
Canada
Gentilly 2
Point Lepreau
Darlington (OPG)
Pickering Ginna James A Fitzpatrick
Seabrook
Vermont Yankee
airie Island
Pilgrim Nuclear
Nine Mile Point (COOPSE)
Nantioke
Donald C. Cook
Millstone
Palisades (NMC)
Indian Point 3
Indian Point 2
Byron (EXGEN)
Fermi
Perry (FINUOP)
Susquehanna
Duane Arnold
Three Mile Island
Limerick (EXGEN)
Dresden (EXGEN)
Oyster Creek
Davis-Besse
Peach
Bottom
Braidwood
Salem
(PSEGN)
Quad Cities (EXGEN) La Salle
Beaver Valley
Hope Creek (PSEGN)
Clinton (AMERGEN)
Calvert Cliffs
North Anna
Callaway (UNIEL)
Surry
Wolf Creek (WCNOC)
NMC)
Bruce (2)
Kewaunee
Point Beach
of America
William States Lee III
Watts Bar Nuclear

Sequoyah (TVA)
Browns Ferry
Oconee
Summer
Bellefonte
Alvin W. Vogtle
clear One
Harris (CPLC)
McGuire
Catawba
Brunswick (CPLC)
Robinson
Nuclear plants
by status
Edwin I. Hatch
che Peak
Grand Gulf
Joseph M. Farley
River Bend
Waterford (ELA)
Operating
Planned
Levy County Nuclear (PEF)

Crystal River
South Texas
St. Lucie (FLPL)
Turkey Point
Courtesy: Platts
Data source: POWERmap. All rights reserved.
November 2009 POWER
www.powermag.com
43
Big Ideas!
Big Results!
COAL. GAS. NUCLEAR. SOLAR.
WIND. BIOMASS. GEOTHERMAL.
TIDAL/WAVE.
Plan Now to Be a Part of the
One Power Industry Event that
Covers it All
12
For exhibiting and

sponsorship information,
contact HUNTER JONES
Phone: 832-242-1969 ext. 308
12
hunterj@tradefairgroup.com
For conference information,
contact CARRIE SHAPIRO
Phone: 832-242-1969 ext. 321
carrie@tradefairgroup.com
May 18 20, 2010 | Baltimore, MD

Baltimore Convention Center
www.electricpowerexpo.com
POWER in CHILE
A special report from Global Business Reports and POWER
Chile gets high marks for its business-friendly environment,
which may in some cases make it a more attractive location
for developing power generation projects than North American
and European markets. Heres how a stable South American
democracy is tackling the
challenges we all face
and a few localized
ones as well.
Machinery in action at the Guacolda Power Plant. Courtesy: SalfaCorp, Chile
Power IN CHILe
Chile Plans for Growth with

All the Options Energy Mix
Chile was considered a world leader for reforming and liberalizing its power
sector as early as the 1980s. However, 25 years later, Chile is at a crossroads in terms of developing future capacity. With an estimated GDP
growth rate of 2% to 3% during the current global financial crisis, a highly
competitive economy, an established democracy, and a stable macroeconomic environment, Chile is considered a premium destination for
foreign investment.
By Ramona Tarta, Mark Storry, and Oliver Cushing, Global Business Reports
hile has developed into a leader of

the Latin American economy, boasting a gross domestic product (GDP)
per capita of $14,300one of the highest
in Latin America. This productivity, coupled
with Chiles position as the most businessfriendly Latin American country, according
to the World Economic Forums The Global
Competitiveness Report 20092010, means
that Chile is seen as an ideal location for the
investor looking to target South America.
However, despite countercyclical government policies, Chile remains dependant on
the mining sector for its exports and, in turn,
much of its energy demand is intrinsically
linked to the price of copper and any fluctuations in that price.
As Figure 1 shows, the price of power increased about tenfold in Chile over the past
three years, resulting in decreased industry competitiveness. For example, Claudio
Ramirez of EDYCE, a large-scale steel producer, explained that the high cost of energy
in 2008 forced his company to temporarily
cancel its night shift. However, high marginal prices, together with low barriers to
entry, made energy projects more attractive

and helped to encourage a rush of investment
into the energy sector.
Chile needs to boost its power generation
capacity by 12,000 MW by 2020 to meet
its expected growth in demand. This report,
compiled after months of on-the-ground research, examines the challenges that need
to be tackled for Chile to fully achieve its
potential.
A Brief History of Power in Chile

Chile was seen as a torch bearer of liberalization and privatization in the energy sector.
Under the military dictatorship of Augusto
Pinochet the first steps were taken to shift
the balance from state to private ownership,
a path continued under subsequent civilian
governments. The formerly state-owned monopoly, ENDESA, was privatized beginning
in 1987 and sold first to Spanish investors
and, more recently, to Italian investors.
Chiles first steps were to unbundle the
generation, transmission, and distribution
sectors and then privatize them. Currently,
apart from the CNE (Commission Nacional
de Energia), which is responsible for central

planning and tariff regulation, the whole sector is private. This model has been exported
to other Latin American countries such as
Argentina, Peru, and Columbia.
As Minister Marcelo Tokman explained
in an interview (see sidebar, p. 50), although
Chile does have a minister for energy, it is
just now in the process of putting together
a Ministry of Energy. At the time of writing
this report, important responsibilities were
divided between the Ministry of Mining, the
Ministry of Public Works, and the Ministry of
Economy. For example, the DGA (La Direccin General de Aguas), headed by Rodrigo
Weisner, which grants the water permits
needed for hydro plants, lies within the Ministry for Public Works. A bill currently going
through parliament will attempt to centralize
the majority, but not all of these responsibilities, within a unified Ministry of Energy.
Unlike some of its neighbors, Chile isnt
rich in traditional fossil fuel resources. This
lack of fossil fuels, together with Chiles
unique topology, has resulted in a very
strong hydro sector. Chilean engineering and
1. Price spike. The cost of power in Chile increased roughly tenfold between mid-2006 and
early 2008 due to the combination of droughts, gas reductions, and high oil prices. Source: CNE
Hydro
Thermal
Marginal cost
350
3,500
300
3,000
250
2,500
GWh
200
2,000
150
1,500
100
1,000
50
500
0
46
US$/MWh
4,000
0
2000
2001
2002
2003
2004
2005
2006
2007
www.powermag.com
2008
Marcelo Tokman, Ministry of Energy
POWER November 2009
Power IN CHILe
2. GDP per capita vs energy consumption. As Chiles economy grows, so will its
energy consumption. Source: International Energy Agency, 2006
40,000
US
35,000
Canada
UK
GDP ppp (US$) per capita
25,000
Japan
OECD
Italy
20,000
15,000
Chile
10,000
Latin
America
Brazil
China
5,000
India
0
8
10
MWh per capita
expertise in this area are among the best in

the world. This specific strength has enabled
Chilean energy companies to offer services
and develop the hydro sector throughout
South America.
As Figure 2 shows, Chile is still at an
emergent stage in terms of energy consump-
12
14
16
tion. The country currently has 12,000 MW

of capacity and intends to reach 25,000 MW
by 2020.
Chile faces a difficult challenge to both expand and diversify its power portfolio. During the 1990s and the start of this decade, the
power industry as a whole shifted using im-

48
18
www.powermag.com
ported natural gas. This led to overcapacity

and a subsequent drop in prices. This movement to gas was to be short-lived, as political changes left Chiles gas supplies hugely
reduced. Imports currently stand at less than
10% of the 22 million cubic meters that were
originally agreed upon with Argentina. Argentinas withdrawal of natural gas in 2004
left a devastating scar on Chiles power landscape and has pushed many opinion-makers
toward the idea of energy independence.
Alfredo Zamorano, CEO of Proyersa Energy, an engineering and project management
company, argues: When the Argentineans
stopped exporting gas, all development
stopped and the industry was in a state of
shock. Other projects were reactivated very
speedily as the industry tried to look for an
alternative to gas. The projects we have now
are not enough to satisfy the level of demand
for energy in Chile. We need to build more
plants.
Chiles challenge is to determine which
route it will take to make up for its power
deficit. Colbn and ENDESA, which jointly
own HidroAysn, believe that this huge hydro
project located in the south of the country is
the answer. Other voices, such as Jaime Vela,
executive vice-president of SW Consulting,
argue for a return to fossil fuels: We believe
POWER November 2009
Power IN CHILe
Enviable ranking. Chile ranks highest
of all Latin American countries and #30 in a
field of 133 countries in global business competitiveness, according to a 20092010 World
Economic Forum report. Source: World Economic Forum
Country
Rank
Switzerland
Chile
30
Brazil
56
Peru
78
Argentina
85
Ecuador
105
Bolivia
120
that coal is the future, he says, highlighting

the competitiveness of this fuel source. Still
others, including Jos Ignacio Escobar, general manager of the Chilean section of Irish
renewables company Mainstream, believe
that with certain regulatory adjustments, the
renewable sector could play a significant
role. Escobar says, There are certainly improvements which we believe the government could implement which could really
benefit the renewables sector.
Chiles Attractiveness
as an Investment Location
Chile is generally considered to offer one of
Latin Americas most business-friendly environments, as the table indicates. It is an associate member of MERCOSUR, the South
American regional trade organization, and is
an ideal location for regional headquarters.
Since 1992 it has had an investment grade
bond rating and in March 2009 (in the middle of the financial crisis) the ratings agency
Moodys actually upgraded the governments
foreign currency bond rating to A1. Moodys
Vice PresidentRegional Credit Officer
Mauro Leos stated at the time that Chiles
fundamentals are supported by solid institutional and policy frameworks.
Its relative cash-rich position convinces
analysts that it is well positioned in comparison to its Latin American neighbors to
weather the current crisis. Indeed, in a recent
competitiveness stress test by the prestigious
Swiss business school IMD, Chile was ranked
highest in the whole of the Americasone
place above Canada.
Javier Garca of CORFO, the state investment body, argues that three factors make
Chile a good place to invest in the energy sector: a developed legal framework, stable political conditions, and a strong platform from
which to launch Latin American activities.
Edwin Chvez, country head of Siemens
Chile, believes, It is a very interesting time
for the energy sector in Chile. I feel that there
are opportunities for investments.
November 2009 POWER

www.powermag.com
49
Power IN CHILe
Interview with Minister for Energy

Marcelo Tokman
THE PEOPLE TO DELIVER

RENEWABLE ENERGY IN CHILE
Mainstream Renewable Power was

established in February 2008 to develop,
build and operate renewable energy plants
across South America, North America,
Europe and South Africa.
Our people are our defining strength. With
over 250 years of industry experience and
a best-in class management team, we have
an enviable track record in project delivery
and raising finance. Our Finance team have
raised 98 million in equity and mezzanine
finance including a 20 million equity
investment from Barclays Capital.
Its our approach that sets us apart. Our vision,
our commitment to partnership, our entrepreneurial
spirit, and most of all, our passionate belief in what
we do.
Were the people to deliver renewable energy
in Chile.
WWW.MAINSTREAMRP.COM
SANTIAGO BERLIN CAPE TOWN CHICAGO
DUBLIN GLASGOW LONDON TORONTO
GBR: Chile hasnt traditionally had a specific minister of energy. What impact has this change had on energy policy development and implementation in the country?
MT: When this government came to power, the Energy Ministry was combined with the Mining Ministry. There wasnt
a specific minister of energy. Whoever had been in charge
of energy was also in charge of something else at the same
time, and there was a tendency only to focus on energy when
we had a crisis.
Once the crisis had passed, the minister started concentrating on other issues in one of their other areas of responsibility. At the moment I have political responsibility, but
the tools necessary are in various departments. This change
will help to unify the decision-making structure and concentrate power.
GBR: Does the current bill enjoy sufficient support and signify
a change regardless of who wins the upcoming election?
MT: This bill [an ammendment to LEY No. 2224, which created the Ministry of Mines and Energy] has already gone
though the House of Deputies without a single vote against
it. In the Senate the progress has been slower than we had
hoped. However, a large majority of the senators have expressed their support to the idea of creating a Ministry of
Energy and to transfer some faculties which are currently
spread through different ministries to the Energy Ministry.
GBR: How important is the role of renewable energy in Chiles
energy matrix?
MT: If you compare Chile to the rest of the world, using the
broad definition, which includes hydro-power, we compare
very well, with 40% of the electric mix being renewable.
Renewables play a much stronger role in Chile than most
other parts of the world. If you exclude conventional hydro
though, nonconventional renewables had a very small participation (2.4%) at the beginning of this government three
years ago.
We find this strange due to the enormous availability of
natural resources which Chile has (small hydro, wind, solar
radiation, biomass, and geothermal). Given our natural resources and the fact that technology has been improving
rapidly, there seem to be restrictions that are not allowing
these technologies to deploy as much as they could. We have
been working very hard to find what are the barriers preventing higher penetration of the nonconventional renewables
and designing and implementing policies to eliminate these
barriers.
In just four years of our government the use of renewables will have more than doubled. There were certain
types of renewables which werent present at all, such as
wind and geothermal. Now we have geothermal exploration
being carried out in several places of the country and by
the end of this governments current term, just taking into
account wind parks in operation or under construction, we

50
www.powermag.com
POWER November 2009
Power IN CHILe
will have 200 MW of wind power. At the start we heard people

saying that it was impossible to have wind farms constructed
without government subsidies, but we were convinced that
the problem was not the cost but the fact that our market
wasnt designed for these types of projects. What we see from
this explosion in renewable projects, not only small hydro, is
that we were right.
GBR: You talk about 200 MW in operation, and the figures that
you mention arent really an explosion. It is only a small percentage of what Chile needs.
MT: We are talking only about wind power. We started with a
2-MW project, which wasnt connected to the main grid, and
we will have ended this period with 200 MW in just three years.
So this is a 100-fold increase. If you take into account that
we need at least one year to measure and design, to obtain a
contract, and to purchase equipment, it has been a period of
considerable growth. If you take into account all of the wind
farms that have been presented for environmental approval in
the last few years, you will find projects for more than 2,000
MW. In addition to that, you have more than 500 MW of other
nonconventional renewables. The projects are there; you just
need to give them the time that they require to be built.
GBR: When you say something has grown 100 times, thats a
strong level of growth, but in fact the sector has grown from a
very, very small percentage to just a very small percentage of the
power output Chile needs.
MT: When we started promoting nonconventional renewables
there was very little support for the sector. We have implemented different policies to remove existing barriers. Among
many we can mention are low-interest-rate credit lines and
subsidies for pre-investment and engineering studies, solar radiation, and measurements and maps, and a guarantee fund
and contingent subsidy for geothermal exploration. We have
also created tax incentives and made it mandatory that a certain percentage of electricity has to be generated from nonconventional renewables. We have done all this in a very short
period of time. We have evidence that the policy is right and
that the projects are starting to appear. This is something we
have been doing for three years. This shows that it doesnt
seem to be a problem from a policy point of view.
GBR: Do you foresee yourself making further changes to the
regulatory environment?
MT: The fact that all of these projects are coming to the market
is the best proof that the framework and the environment work
for the deployment of these technologies is working. You dont
start with 1,000 MW right away, but the fact that these projects can start without a subsidy is a good signal.
Our expectation and our aim is for nonconventional renewables to reach a 10% target by 2020. We believe that this
amount can be achieved without having to incur higher energy costs than conventional sources. We understand that there
are some technologies which are not competitive. We want
November 2009 POWER
to ensure that we use first all of the potential that we have

in competitive renewables before making further charges in
the framework.
GBR: What advantages does Chile have over its neighbors as a
destination for investment within the energy sector?
MT: We are not expecting firms to come to develop projects
if they are not profitable. We are not competing with Spain
or Germany in terms of our levels of subsidies. Chile is a developing country which has several needs which require fiscal
resources. There are still a lot of people living in poverty in
Chile. In our case it would be an irresponsible policy to force
higher-cost technologies on our people and firms. We have allocated more than $500 million just for renewables, not to
subsidize the final price, but to create information and reduce
the barriers that these technologies face.
As for reasons to invest in Chile, you can look at rule of
law, macroeconomic stability, low levels of corruption, and
nondiscriminatory treatment of foreign investment. In terms
of international comparisons, which are important for potential investors, risk premiums are low compared to our regional
competitors. Chile stands out as a serious, responsible, and
well-managed country.
In terms of electricity we were one of the first in the world
to liberalize the energy sector, so we have plenty of experience. We have a good and stable regulatory framework; we
have a history of large international players in the energy
sector who have been here for several decades. After the uncertainty over our levels of gas imports from Argentina, we
have made some changes to the regulatory framework which
have helped to attract new investments. These changes were
made on the basis that prices reflect costs. This is the foundation of our thinking on energy policy.
Forty-eight percent of total investment in the country is
projected to be in the energy sector. In terms of electricity,
the environmental evaluation system has approved more than
11,000 MW of projects, and we have the same amount again
under evaluation. That implies that in terms of any estimates
of what we may need for the next decade, there are companies
who are willing to make the required investments.
GBR: How difficult is it to balance the need to increase power
generation and the environmental concerns that may arise from
this expansion?
MT: It is increasingly difficult to balance environmental concerns with power needs. There are two factors in this equation.
First, the size of the country; it is hard to find a location of
a project which doesnt have alternative demands on its use.
Secondly, and this isnt necessarily a bad thing, we see more
awareness and concern amongst the population about the environmental impacts of new developments. All projects have
some kind of impact, so we have to expect opposition. What
we have to do is guarantee that the projects that are constructed comply with all the norms and minimize their impacts.
www.powermag.com
51
Power IN CHILe
3. Taxing transmission. Chiles two major grids have had to respond to an enormous
increase in capacity over the past 26 years. The two grids are not connected. Source: CDEC-SIC,
CDEC-SING
12,000
Central Interconnected System (SIC)
Northern Interconnected System (SING)

10,226
10,000
MW
8,000
6,000
3,581
4,000
2,713
2,000
428
0
1982
2008
Regulatory Framework
Chile was one of the first countries to privatize its power generation and distribution
system, which is now the global norm.
These reforms stem from the 1982 Electricity Reform Act, which was designed to break
up the state monopoly, ENDESA. Renato
Agurto, one of the architects of the Chilean
energy sector, argues: I believe that this

process of privatization and liberalization
in Chile was successful. From the very beginning, in the 1980s, the government was
involved almost 100% in generation and
transmission, while it had 80% of the distribution market. Almost the entire power
sector was state-owned.

52
www.powermag.com
Now critics argue that Chile has ventured

too far in the opposite direction. All of the
sector is in private hands, and the government lacks the tools necessary to direct the
private sector in a sustainable direction. The
high price of power acts as a break on other
sectors of the economy, most notably the
mining sector. The cost of power constitutes
some 20% of the cost of copper, Chiles primary export.
When Salvador Allendes socialist government was overthrown by the military
junta headed by Augusto Pinochet, Chiles
whole economy, including the energy sector, was under state control. After the coup,
state-controlled companies were either privatized or returned to their previous owner. One
of the primary steps in this process was to
separate the generation, transmission, and
distribution sectors. ENDESA, the former
state monopoly, was split into 14 different
companies, including six generation companies and six distribution companies. The
transmission section was initially maintained
in-house. These privatizations earned considerable hard capital for the government, and
Agurtonow working for Synex, an energy
consultancyargues that these reforms were
the basis for considerable growth and investment in the sector.
As demonstrated by Figure 3, between
1982 and 2008, installed capacity that fed
into the Central Interconnected System
(SIC), which supplies 90% of Chiles population, increased from 2,713 MW to 10,226
MW, while capacity on the Northern Interconnected System (SING), which supplies
the north of the country and many of the
mining companies, increased from 428 MW
to 3,581 MW. To date these two grids are not
interconnected. Chile also has two smaller
systems, the Aysen Interconnected System
and the Magallanes Interconnected system,
but these two service a very small percentage
of the population.
Despite this period of restructuring and
growth, ENDESA remained the dominant
player, controlling the majority of the generation sector, all of the transmission sector, and (following its takeover by Enersis)
a controlling stake in Chilectra, the largest
distribution company in Chile. Transelec has
since been spun off into a separate company;
however, critics have argued that the deregulation process didnt go far enough, and the
sector remains monopolistic.
The next significant change in the regulatory framework came in 1999 in the aftermath of the 199899 droughts. A new law
was designed to address the lack of incentives for long-term investment in the energy
sector. However, the law was seen as poorly
implemented and resulted in a vast reduction
POWER November 2009
Power IN CHILe
in investment in generation. Dr. Hugh Rudnick, director of Systep, an engineering and
design consultancy, explained to us that the
risk exposure to generation companies was
too great, and there followed a general halt
in investment and contracting in the generation section.
The Ley Corta or Short Law, passed in
January 2004, was seen as a milestone by
many in the energy industry. The Short Laws
reforms included a revision of the charges for
transmission, a modification of node prices,
and a reduction in the eligibility category for
unregulated users from 2 MW to 0.5 MW.
Christian Arnolds, general manager of
Chilquinta, a distributor in the 5th region
of Chile, argues that this regulatory change
allowed the distributors to get together and
enter long-term agreements with the generation companies. The security that the power
generation companies experienced due to this
reform allowed the long-term investment that
was necessary to increase generation capacity in Chile. The new contracts consisted of
a bidding process whereby distribution companies bid for energy. Importantly, however,
the bid prices were linked to the underlying
commoditybe it gas, coal, or anything
elserather than a fixed cost. This meant
that the risk was passed from the generation
company to the end user.
Since the Short Law, investments in generation, transmission, and distribution have
significantly increased, helped by the strong
rate of economic growth and high copper
prices. Gaston Fontaine, country head of
SANTOS CMI, an Ecuadorian engineering,
procurement, and construction (EPC) provider now moving back into the Chilean market,
argues: In Chile we had a gap of investment
for 10 years. We didnt have any clear rules
as to how investments could take place. Now
we do.
Later, Short Law II was passed, affecting
the transmission sector. Andrs Kuhlmann,
general manager of Transelec, argues of the
Short Law I and II: These laws made possible a huge increase in investment that wasnt
possible previously. Sergio Correa, general
manager of Besalco Construcciones, one of
the three largest construction firms in Chile,
says that his company entered the Chilean
energy market due to this change in the law.
As this report is being written, given all
of the aforementioned changes, the power
generation sector is technically a competitive sector. Final prices reflect the marginal
cost of production, and the Chilean government does not prevent new competitors from
entering the market. As per the international
standard, generation companies in Chile will
receive payment for both their power capacity and the power that they supply. Genera-
November 2009 POWER

www.powermag.com
53
Power IN CHILe
tors can also enter an internal market and
purchase power surplus capacity in order to
meet their obligations.
Generation Ownership
The power generation sector is dominated
by three companies: ENDESA, Colbn, and
AES Gener. Together they control around
65% of the market. If the controversial
HidroAysn project were to go ahead (a joint
venture between ENDESA and Colbn), this
figure would increase.
ENDESA is the formally state-owned giant that was fully privatized in 1989. Upon
privatization it went through an ambitious period of expansion throughout South America.
ENDESA has around 4,800 MW in installed
capacity within Chile and around 8,500 MW
of installed capacity throughout South America, including Peru, Brazil, Columbia, and Argentina. ENDESA is the central figure in the
Chilean energy sector and, despite frequent
changes of ownership, it remains at the top.
ENDESAs portfolio is made up of a mix
of gas-fired and hydro plants. The company
also owns ENDESA Eco, its renewables subsidiary, which is developing a 60-MW wind
farm in Canela, the largest wind farm under
development in Chile to date. ENDESA also
controls Ingendesa, an EPC company, created
when ENDESA was taken private. Ingendesa
doesnt just supply services for ENDESA but
also is a vibrant player in the national market.
Rodrigo Alcaino, the general manager of Ingendesa, states: We stand ready to offer our
expertise to the market.
Colbn is the second-largest player in the
market, with around 2,500 MW in installed
capacity, and is the only major generator remaining in Chilean hands, being controlled
by the Matte family. Currently, around 50%
of Colbns capacity is hydro, with the other
50% coming from thermal sources. Colbn is
currently working on a 144-MW hydro plant
in San Pedro at a cost of $202 million. It is
also developing a 350-MW coal-fired plant
in Coronel. In addition, it is planning some
smaller, nonconventional renewable projects,
the most advanced of which is a 7-MW project in San Clemente.
AES Gener is the smallest of the three big
players. It currently has around 2,500 MW in
installed capacity but has no involvement in
the HidroAysn mega plant. AES Gener suffered a severe setback when the environmental permit for its 270-MW coal-fired plant
Campiche was invalidated by the Chilean
Supreme Court.
Compaia General de Electricidad (CGE)
is a vertically integrated energy group holding stakes in generation companies, distribution companies, and even transformer
manufacturer TUSAN. Founded in 1905, it
54
www.powermag.com
POWER November 2009
Power IN CHILe
Bernardo Larrain, Colbun
has acquired businesses from various areas

over its lifetime.
One of the biggest criticisms of the generation market concerns market control.
Rodrigo Dans, managing director of SW
Consulting, argues: The main challenge
is to increase competition and help the new
entrants in the market. He argues that the
position of these three companies makes it
extremely difficult for new companies to establish themselves and gain a foothold. The
large companies have the contacts, the relations with the government, and a monopoly
of expertise on the ground, which makes it
difficult for a new entrant to aggressively
enter the market. Consequently, most of the
new market entrants are niche players focusing on wind or hydro power.
The three large companies also hold the
vast majority of water rights, 80% of which
are currently unused, meaning that the more
lucrative possibilities are already taken.
Chile has an open bidding process when it
comes to the energy market, but critics have
argued that the government needs to play a
greater role to encourage competition. Alexandre Keisser, CFO of GDF Suez Latin America and CEO of GDF Suez Andino (GDFs
Chilean holding company), states that they are
ready and willing to develop small and midsize hydro plants, but that the crucial issue
for us is to gain access to water rights in order to develop plants. Keisser observes: The
challenge for the regulatory system is ensuring that if water rights are given, that they are
then developed, though he is keen to clarify
that this does not mean he is advocating the
compulsory reauctioning of unused rights.
Bernardo Larrain, general manager of
November 2009 POWER

www.powermag.com
55
Power IN CHILe
Christian Arnolds, Chinquinta
Colbn, believes that the level of competition

in the sector is determined by the number of
new entrants: I would say that the generation sector is open and competitive. We cant
forget that the sector used to be just ENDESA. Colbn was a marginal player when we
first began. We occupied a tiny percentage
of the market, and since then we have vastly
increased our share. In the current market
there are an abundance of new players such
as Pacific Hydro and SN Power, Mainstream,
and Suez.
Christian Arnolds of Chinquinta, a distributor, says that new competition in the market
would be ideal, advantageous to the end consumer, and reduce the cost of energy. However,
in Chile there is still some way to go: I would
love to see more competition in the market; it
would be ideal for companies like us.
Generation Mix
Chiles generation technology portfolio consists largely of combined-cycle plants, now
mostly running on imported diesel, and hydro
resources located in the Andes. The country
has some coal-fired plants (mostly in the
north) dating from the prenatural gas days,
as well as a few new ones being built.
Chiles strong hydro sector is what distinguishes it from most other countries, but it is
a sector that still has some distance to go before it reaches maturity. Ricardo Quezada,
general manager of DESSAU INGENTRA,
a specialized EPC firm, argues: Chile has
56
www.powermag.com
POWER November 2009
Power IN CHILe
4. Gas explosion. This chart shows how the availablilty of natural gas profoundly affected
the mix of generation technology on the SING grid. Source: CDEC SING
4,000
Diesel-fuel oil
Coal
Natural gas
Max demand
3,500
1999: Last coal
power plant
Installed capacity (MW)
3,000
2,500
1999: Natural
gas arrived
2,000
1,500
1,000
500
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
5. Gas shutoff. Significant restrictions in the supply of natural gas shipped from Argentina
created problems in Chiles energy market. Source: CNE
100
Gas delivered (% of normal requirements)
90
80
70
60
50
40
30
20
10
0
2004
2005
a lot of potential in hydroelectric energy

which has not been exploited yet.
To date, the country only has a very small
amount of nonconventional renewable projects, although there are considerable numbers
under consideration. Wind and geothermal
are the two most advanced nonconventional
renewables in the market.
The administration of President Michelle
Bachelet has made tentative steps to explore
the nuclear option but has made it clear that
any final decision must be made by the next
government. This attitude has become something of a tradition in Chile, which first established a nuclear commission in 1965 but,
44 years later, has yet to actually authorize
the construction of a commercial reactor.
In mid-2009 the Commission for Nuclear
Energy stated that a public-private model
would be adopted should nuclear generation
58
2006
2007
2008
be added to the mix, and it appears that the

current administration is keen to demonstrate
that it is preparing the ground for a decision
to be made. Given the long lead in times for
nuclear10 to 15 yearsand the political
establishments dawdling track record on
the issue, it is likely to be many years before
Chile gains a nuclear reactor.
In the next sections we look in greater
depth at the main energy sources for power
generation.
Turning Off the Gas

The withdrawal of Argentinean gas in 2004
had a huge effect on the Chilean energy market, which still resonates today. One of the
more interesting stories is that of GasAtacama, which owns a 740-MW combined-cycle
plant designed to work with natural gas.
Rudolf Araneda, general manager of
www.powermag.com
GasAtacama, explained to us that the basis

for his companys investment was the legal
agreement between Chile and Argentina
that allowed for the export of natural gas to
Chile. In fact, this natural gas largely originates in Bolivia, but due to historical differences, it was routed via Argentina. As Figure
4 shows, the arrival of gas resulted in a huge
increase in capacity. Greater capacity led to
a corresponding decrease in price. Araneda
observed that The legal agreement between
Chilean and Argentinean partners was made
on a nondiscriminatory basis; there would
be no price difference between Chilean and
Argentinean companies for this Argentinean
gas. The distribution of gas should be to both
markets; any reduction in supply would be
for both markets. This set the incentives for
both parties to come to the table to fix any
problem which might arise.
This low price of energy, assuming a nondiscriminatory agreement, provided the basis for vast expansion in the mining sector,
where energy costs constitute about 20% of
the final price of copper.
In 2002, Argentina suffered from welldocumented economic problems, and the
government moved to fix energy prices and,
as a consequence, demand soured for gas.
As Araneda put it, In 2004 the Argentinean
government decided it needed to take action
on this energy problem and unilaterally declared that they wouldnt follow the terms
of the agreement as they wanted to serve
the local market first. Figure 5 shows how
restricted the gas supplies were for several
years thereafter.
These stoppages in gas exports had substantial effects on the industry as a whole.
Guillermo Noguera, president of EDIC Ingenieros, an engineering consulting firm specializing in hydro and geological projects,
said, This movement was a serious blow
for the generation companies, but for service
providers focusing on the hydro sector it was
a great opportunity, as building hydro plants
returned to fashion.
Generation companies, such as GasAtacama, had signed long-term agreements
with clients based on a low price of gas.
When gas was no longer available, they had
to replace it with considerably more expensive diesel. Consequently, the cost of generating electricity for GasAtacama grew from
$12/MWh to between $120 and $200/MWh,
resulting in losses of around $1,000,000
per day. GasAtacama was forced to go to
the mining companies and arrange a passthrough of the energy costs, which of course
meant the mining companies had to pay
more.
As a result of the Argentinean decision to
turn off the gas tap, and the high price of die-
POWER November 2009
Power IN CHILe
6. Future home of huge hydro. The HidroAysn projects five
planned hydropower plants are expected to have a capacity of 2,750.
Two plants would be built on the Baker River and three on the Pascua
River (pictured). The project is jointly owned by Colbn and ENDESA.
Source: SANTOS CMI
sel, the energy market in Chile entered a substantial period of growth

to fill its energy gap. The largest and most controversial of its projects
is HidroAysn, a joint venture between Colbn and ENDESA.
Huge Hydro
The HidroAysn Project (Figure 6) involves the construction of five
electrical power stations in the Aysen region of Chilean Patagonia.
The proposed mega-project would produce 2,715 MW, which would
be carried through 2,000 kilometers (km) of transmission lines to be
November 2009 POWER

www.powermag.com
59
Power IN CHILe
Predictions from a Top Official

Minister of Public Works Sergio Bitar, formerly a mining minister under Salvador
Allendes socialist government who was
later imprisoned under the military junta,
believes that the energy situation is one
of Chiles foremost current challenges. He
argues that Chile needs to build at least
11,000 MW in the next 10 years. He thinks
that only 20% of this can be achieved
through renewables, so hard decisions
need to be made as to how Chile can
achieve the rest.
Bitar insists that the generation comHernn Salazar, HidroAysn
distributed on the SIC. The scheme is currently projected to cost $3.2 billion. It would
tap the power of two virgin riversthe
Pascua and the Bakerwith three dams on
the former and two on the latter.
The project was first mooted in the 1950s;
by 1975 a new proposal involving the flooding of 30,000 hectares was floated. In 2005
the project was reinitiated by the current
consortium; their initial proposal was for the
flooding of 9,300 hectares, whichafter public consultationwas reduced to 5,910 hectares, of which 1,900 are natural riverbed.
The HidroAysn scheme will be highly efficient in terms of output relative to dam area:
2.15 hectares per MW. The HidroAysn company submitted its Environmental Impact
Assessment to the Aysen Region National
Environmental Commission in mid-2008,
and the evaluation process was still under
way as this was written.
Hernn Salazar, managing director of the
panies need to do better in terms of

water rights, as the majority of the rights
are held, unused, by a few companies. He
also argues that hydro and coal will be the
future generation sources for Chile, with
liquefied natural gas becoming part of the
mix once the terminals are open.
The biggest dilemma is to ensure that
the most modern technology is used to
minimize environmental impacts. Bitar
predicts that in 10 years, once the technology has developed, solar and nuclear
could be part of the generation mix.
HidroAysn company and the man charged
with realizing the project, described it to
Global Business Reports as the most important energy project in the history of Chile.
For Salazar, there are three key reasons why
HidroAysn must be built. The first and most
obvious relates to greenhouse warming: Chile
needs extra capacity, and if it does not come
from hydro, the only viable alternative is thermal. Given that Chile has virtually no hydrocarbon reserves and cannot rely on regional
sources of piped natural gas, these plants must
be fired by coal or liquefied natural gas (LNG)
imported from beyond the continent, further
adding to Chiles carbon footprint.
Second, as previously noted, Chile is
pursuing a vigorous campaign to build its
nonconventional renewables generation capacity. Wind farms, solar plants, and many
run-of-river hydro projects generate an unpredictable and intermittent power flow that
requires additional backup capacity. Dam-fed
hydro turbines can be online within minutes
and are by far the best counterweight to other
renewables.
The third of Salazars points relates to the
strategic security of energy supply: The fact
that Chile depends on imported fossil fuels
clearly sacrifices the countrys independence
and leaves us exposed to the price volatility
of these products. As long as a country uses
the resources found in its sovereign soil, it is
independent. The only energy technology in
Chile that is offering to substantially lower
the countrys dependence on foreign suppliers is hydroelectricity. Salazar notes that, in
Chile we take advantage of 25% of our hydro
electric potential at present. This is difficult
to understand when you consider that 72% of
our primary energy is generated from fossil
fuels and that Chile only produces 4% of the
fossil fuels it consumes.
Minister for Public Works Sergio Bitar (see
sidebar) told us that the main issue regarding
the project is that of the transmission infra-

60
www.powermag.com
POWER November 2009
Power IN CHILe
structure. HidroAysn is extremely far from
end users and requires 2,000 km of new transmission linesmore than any high-tension
line currently in operation. The lines would
cut through a number of national parks and
areas of natural beauty and, as such, are highly contentious. It is likely that HidroAysns
transmission partner, Transelec, will have to
employ submarine cables and other less-visible but more expensive forms of transmission
for certain parts of the route if permission is
to be granted. Within the Aysn region itself
it is likely that the construction process and
associated infrastructure will open the door
for further development and industrialization.
The scheme has drawn criticism from environmental organizations around the world as
well as nationally and locally.
Within the industry the issue is also divisive, though because the project will be a
competitor for some and a client for many,
this is to be expected. Rodrigo Dans of SW
Consulting, one of HidroAysns competitors, who favors a movement to carbon-fueled
generation, argues: My opinion is that the
project will have a substantial impact on the
environment. Im not against hydro facilities
in general, but I am against this kind of investment, which is bad from an environmental point of view for Chile. We are publicly
saying that Chile needs to look for an alternative and not to proceed with HidroAysn.
Many argue that greenhouse gas emissions, which per capita are less than one-third
of the G-7 average, should not be the main
determinate of Chiles energy future. Assuming the nonconventional renewables threshold is met and rises to 10% as intended, and
that Chiles generation capacity does grow
to 25,000 MW by 2020, there will only be
2,500 MW of nonconventional power in the
mix. Given that Chile already has double this
figure of installed hydro capacity, some argue that the wind and solar counterbalance
argument should not be allowed to influence
the outcome of the HidroAysn debate.
Like all power plants, HidroAysn has
many pros and cons. The outcome of the application will, however, help determine the
future of the generation sector in Chile and
will help shape both future hydro policy in
the country and investors attitude toward
hydro projects.
7. Run of the river. The Ralco Plant, a two-unit 690-MW hydroelectric plant commissioned in 2004 and the largest hydroelectric plant in Chile, is owned by Empresa Nacional de
Electricidad S.A. The Bio Bio River supplies water to the 1,200 million cubic meters, man-made
reservoir. Courtesy: Enersis
Hydro Project in 2011. Jos Antonio Valds,

CEO of Pacific Hydro Chile, also told us that
his company would potentially look at making investments in wind.
Pacific Hydro is also working on a joint
venture, Tinguiririca Energa, with Norwegian company SN Power. This joint invest-
Global Supplier for Engineering

and Electrical Equipments
rhona.cl
Smaller Hydro
There are several other, slightly less controversial hydro projects taking shape in Chile
(Figure 7). One new player, Pacific Hydro,
gained entry to the market by buying two
Codelco-owned properties in the north of
the country. Currently, the company has 550
MW of projects under development, the first
of which to come online will be the Chacayes
November 2009 POWER
ment shows how multinationals have been

attracted to the Chilean market. Tinguiririca
Energa has two plants under construction at
the moment: a 155-MW run-of-river project
located in La Higuera, which involved more
than $300,000,000 of foreign investment, and
another in La Confluencia. SN Power Chile
Tel: +56-32-2320 600 - info@rhona.cl - Via del Mar - Chile

www.powermag.com
61
Power IN CHILe
8. Building the future. This new coal-fired power plant in Mejillones, on the Pacific
Ocean, will use circulating fluidized bed technology, which will enable the burning of biomass
and other fuels. When it goes online in 2010, it will be the first coal unit in Chiles SING interconnection. This project, along with the LNG import and regasification terminal in Mejillones, and
the Horniots thermoelectric power station, will contribute decisively to fuel security and diversity on the SING network. That enhanced security will benefit residential customers as well as
mining, industrial, and services activities in Chiles Norte Grande region. Courtesy: SalfaCorp
fourth- or fifth-largest generator in Chile, focusing on large hydro projects but also developing wind projects in the future.
The Combined-Cycle Contribution

Another of the newcomers, SW Consulting, has moved from the energy consulting
business to developing its own projects via
subsidiaries.
SW Consulting started out providing
advice and assistance to international players. The company has now moved into the
generation business itself and has been developing a 180-MW combined-cycle plant
in the 8th region of Chile via its subsidiary
Campanario. Like similar plants, due to the
gas restrictions, it will be largely run on
imported diesel. This plant is being built in
conjunction with investment group Southern Cross.
Given the expense of imported diesel, SW
Consulting intends to focus on coal plants in
the future.
Liquefied Natural Gas

has made a considerable number of investments in the country, including several large
investments in the Trayenko region. Nils
Huseby, vice president of SN Power Chile,
explained his companys interest in Chile:
We identified Chile as a principal market

and as an ideal destination to invest in. South
America plays a key role in SN Powers ambitious growth plans towards 2015. He went
on to state that his desire is to become the
Chile is currently making substantial investments in building LNG terminals designed

to increase its energy independence. This
movement originates from the cuts in gas
supplied by Argentina in 2004. These cuts, as
explained above, resulted in Chilean generators being forced to rely on much more expensive fuel sources and highlighted Chiles
reliance on foreign supplies.
The principal LNG port is being built in
the central part of Chile by GNL Quintero, a
joint venture between ENDESA Chile (20%),
ENAP (20%), Metrogas Chile (20%), and BG
Group plc (40%). The main attraction of the
project is that it will be able to use the existing Chilean infrastructure of combined-cycle
plants that were designed for gas rather than
needing once again to radically change the
nations generation technology. The intention
is that LNG will act as a direct substitution
for Argentinean gas, and as the LNG will be
bought mainly on the free market, this will
reduce Chiles energy dependence. A second
terminal and plant being developed by Suez
Energy International and state copper company Codelco, is located in Mejillones (Figure 8), in the north of the country.
Although the GNL Quintero LNG terminal has started receiving its supplies, largely
from Trinidad and Tobago, Egypt, and Equatorial Guinea, among other sources, there are
still some doubts over its long-term future.
Some critics have argued that the LNG terminal cannot compete on prices with existing
sources, for example hydro projects and, in
particular, HidroAysn, should it go ahead.
Transelecs Kuhlman explained to us the pros
and cons of the project: LNG is mainly a

62
www.powermag.com
POWER November 2009
Power IN CHILe
solution for the Argentinean gas, which has
since disappeared. We have invested considerable amounts of capital in gas-fired plants,
and this infrastructure remains today. LNG
is a more expensive solution to our energy
problems but allows the existing infrastructure to be used. This doesnt have an impact
on transmission, as the infrastructure will already be there.
Renewables in Chile
Although Chile has a very strong hydro sector, nonconventional renewables arent yet a
large contributor to the market. All of this is
expected to change in the near future due to
the implementation of Law 20.257, which
compels all power generators that have a
total installed capacity of above 200 MW to
produce at least 5% of their output from nonconventional renewable sources. That percentage will rise beginning in 2014 by 0.5%
increments until it reaches a ceiling of 10%.
Unlike many other countries, Chile has no
subsidies on the delivered price of renewable
power and no price guarantee. Incentives are
limited to fully or partially releasing nonconventional renewables stations with power outputs of less than 20 MW from transmission
tolls, ensuring that a minimum percentage of
the demand for nonconventional renewables
energy comes from regulated customers, and
altering the rules regarding the connection
of plants smaller than 9 MW to facilitate the
connection of small, nonconventional projects to distribution grids. The new renewables legislation obliges generators to meet
the targets or face fines.
Renewables offer Chile a way to gain
its long-sought-after energy independence,
which other potential sources dont. The LNG
terminal being built in Quintero and the movement to coal in the north merely diversify the
risk, whereas renewables offer Chile a way to
reduce its dependence on foreign suppliers.
Generators do not have to generate power
from renewable energy sources directly, and
are free to purchase from a third party or pass
on the obligation to their nonregulated clients,
subject to the terms of the specific power purchase agreements (PPAs). As a consequence,
smaller, niche players are entering the market, and mining companies are being put in
the unlikely situation of becoming wind farm
developers. This is a nascent market, and deal
history is scarce. How the market evolves is
still very much open to debate.
Juan Carlos Jobet of Asset Chile argues
that it is not natural for mining companies to
develop and own alternative energy plants,
and that new companies specializing in renewables will enter the market and seek to
sell their power directly to mining clients:
Mining companies are being forced by gen-
November 2009 POWER

www.powermag.com
63
Power IN CHILe
9. New wind farm under construction. Endesa Chiles subsidiary Endesa Eco
installed the first of 40 wind turbines at the Canela II wind farm project located in the Region of
Coquimbo in July. Each of the 1.5-MW wind turbines, supplied by Acciona Windpower S.A., is
79 meters high and can turn at a maximum speed of 15 rpm. Courtesy: ENDESA Eco
Alexandre Keisser, GDF Suez
erators to come up with a solution to comply

with the 5% renewable target. Energy generation is of course not part of their core business, so this is a big challenge for them.
Alexandre Keisser, GDF Suezs man in
Chile, notes that renewables are capital intensive, and that capital is not cheap in Latin
America.
Wind. Wind is seen as one of the strongest
prospects in the renewables sphere, and the

technology that is closest to reaching market
potential. Chile is attracting investment from
major and niche international players. GDF
Suez is developing the 38-MW Monte Redondo Park, 300 km to the north of Santiago.
The park consists of 19 2-MW V90 Vestas

turbines and signals the companys return
to the central SIC grid. ENDESA Eco completed the Canela I 11-unit, 18-MW wind
farm and is constructing a follow-on 60-MW
Canela II project. (Figure 9).

64
www.powermag.com
POWER November 2009
Power IN CHILe
Julio Friedmann, country head of French
service company Alstom, sees great potential
in renewable projects, specifically wind. He
calculates that in the long term, 10% of revenue will come from renewable sources. He
explained that the two main drivers behind
this focus on renewables: the governments
long-term plan to enforce generation companies to produce 10% of their revenue from
renewables and the consistent demand from
the export-orientated mining sector.
Mainstream, the Irish renewables company, has started the development of Leguna
Verde, a 37-MW farm due to begin construction in 2010. Mainstream was founded by
Eddie OConnor, who was the CEO of Irish
renewable company Airtricity before moving on to focus on his own investments. As
Mainstream was deemed to have experience
and a strong financial basis, it has entered the
global market feet first.
Jos Escobar, CEO of Mainstream Chile,
sees the potential in Chile: Chile was one of
the first countries which Mainstream looked
at for investment, though Mainstream intends to use Chile as a base from which to
work in other South American countries as
well. He explained Mainstreams business
model in Chile: We conduct all of the greenfield activity, all of the feasibility studies, we
November 2009 POWER
conduct the engineering, and we build and

develop the project. Once the project is developed and operational, we sell the assets
to a fund which would take this low-risk asset, and we then use the capital to invest into
further developments. We would also receive
maintenance, operations, and trading contracts to ensure we have a steady cash inflow
for the asset investor.
Alfredo Solar, of Acciona Energy, part
of the Spanish conglomerate, advised that
Wind energy could be of interest to the
mining community, as it offers steady energy prices, allowing mining companies to
plan their costs in advance rather than having to rely on fluctuating resources. It has
been pointed out, though, that because Chile
doesnt have any kind of manufacturing base,
all the equipment for wind generation needs
to be imported at great expense.
Geothermal. Chile is generally thought
to have considerable potential in the geothermal area. Though the technology is still
advancing, Liam Smith, geothermal expert at
SKM Minmetal, said, Financially speaking,
some of these projects do make sense.
GGE, an American geothermal company
known as Geoglobal LLC in the U.S., is just
entering the Chilean market with the intention of operating Chiles first geothermal
plant. Rdiger Trenkle, GGEs country head,

said, Chile needs to do more to diversify its
matrix. He sees geothermal as one strong solution. Geothermal technology is seen as one
of the more advanced forms of renewables,
given its usage in the U.S., New Zealand, and
Italy. GGE sees Chile as a tier 1 market,
where potential is extremely high.
In Chile geothermal concessions are bid
for in auctions. Once a private company
gains a concession, it then has two years for
exploration (which can be extended) before
it transforms into a exploitation concession.
One of the main drawbacks of geothermal
not just in Chile but worldwideis the hitor-miss nature of the technology. Companies
need to be dedicated and well financed, as
drilling can be capital intensive because there
is a high geological risk that drilling will not
find an effective energy source. Trenkle believes that, especially with the addition of
carbon credits, geothermal is competitive.
Unlike other areas, geothermal concessions
remain under the supervision of the Ministry
of Mining and are in their infancy. There have
been concerns that if the concession process
were to move to the newly created Energy
Ministry, the concession process could slow
down due to the lack of expertise. Another
criticism is that certain speculators are bidding

www.powermag.com
65
Power IN CHILe
Alan OBrien, Hatch
for concessions, inflating the price, while having no intention of developing any project.
Small Hydro. Law 20.257 distinguishes
between large- and smaller-scale hydro projects on the basis that large hydro is an already
well-established part of the generation equation and also perhaps reflecting a widely held
belief that large hydro projects have more of
an impact on local environments than their
smaller cousins.
Law 20.257 states that only hydro plants
below 20 MW will be considered nonconventional renewables and count toward the
5% target. The law also fails to distinguish
between run-of-river and conventional dam
hydro schemes. Many in the industry feel
that the 20-MW ceiling is too low and that it
reflects misperceptions of the impact hydro
projects have on the local environment.
Alan OBrien, global managing director
of renewable energy at the international energy-to-mining consultancy Hatch, notes that a
200-MW run-of-river scheme need only have
a very limited visual impact on its site. The
law does not prohibit larger-scale projects,
but generators are going to struggle to meet
the 5% target, and therefore it is inevitable
that there will be some form of premium attached to energy generated from nonconventional renewable sources. By placing the bar
so low, attention will be shifted away from
the numerous midsize opportunities that exist in Chile.
Due to Law 20.257, small hydro and the
wider energy crisis in Chile has been attracting interest from across the globe and
considerable recent investment. OBrien
said that Hatch has experienced a surge in
interest for its hydro services recently in
Chile. The tight current supply of electricity, combined with the need to fulfill the 5%
target, has resulted in some healthy reported
returns on investment.
Santiago Castro, head of power at the
66
www.powermag.com
POWER November 2009
Power IN CHILe
Renewables Market Realities

Finding ways to make renewables, especially solar power, costcompetitive is a challenge. One way in which Chile can benefit
from investment in renewables is the Clean Development Mechanism (CDM). This arrangement, established under the Kyoto Protocol, allows investment in developing countries in order to reduce
greenhouse gas emissions. Arturo Errzuriz, country head of EcoSecurities Chile, highlighted the potential benefits that investors
in renewable projects can take advantage of. Although the CDM
cant replace firm government action or subsidies, it can assist
development of the sector.
To date, Chile is far from achieving the 5% figure from nonconventional renewables. There have been suggestions that the major
generators will pay the consequent fines rather than investing the
necessary resources in renewables. Alejandro Steiner, energy head
of AMECCade, an engineering company, argued: I dont believe
that it will be possible for this target to be achieved unless the
government changes its policy. He went on to say, In the majority of other countries, the government has offered effective incentives. They have offered a price guarantee, which sets the IRR
[internal rate of return] and allows developers to appropriately
plan their projects. Of course, this means that taxpayers will be
energy, mining, and manufacturing consultancy Golder Associates
Chile, notes that returns on small and midsize hydro, the companys
core market in Chile, have risen from approximately 10% to 15%.
Capital values, driven by widely expected growth in demand and the
long lead in times required for large-scale thermal and hydro plants,
are also expected to grow for smaller hydro plants.
Perhaps the biggest barrier to entry for small hydro projects is
their location. Most of the potential for small hydro projects is in the
mountains, far away from central transmission lines. If these projects are undertaken, they suffer problems accessing the grid. The cost
of building extensive transmission lines for a project of less than 20
MW is considerable, making it difficult for small hydro projects to
go forward. Pedro Matthei of APEMEC argues that micro-hydro will
become a significant market player once the problem of connecting
small, remotely located plants to the grid has been solved.
Solar. From a physical and environmental perspective, Chile has
among the worlds greatest potential in terms of solar power. The
Atacama Desert in the north of the country is the worlds most arid
desert and among the worlds sunniest locations. It is also the location
of the worlds two largest copper mines and at the center of Chiles
mining industry. The combination of abundant supply and demand
appears a near perfect catalyst for the development of a significant
solar industry.
Yet, despite the hype and much discussion of the regions potential
by the government, there are few signs of actual investment. One reason for this may be the mismatch between the supply characteristics of
solar energy and the demand patterns of industrial consumers. Mines
tend to operate 24 hours a day and, needless to say, solar plants do not.
As the northern grid is yet to be connected to the central grid (which
serves the majority of Chiles domestic consumers) solar energy cannot be exported to the bulk of its natural clients: household consumers.
Perhaps the most important factor in the solar equation is the technologys infancy. Outside of Germany, Spain, South Africa, and the
U.S., solar has yet to take off. In terms of cost, the complicated nature
of the technology and its low efficiency levels mean that in Chile it
cannot compete on price with traditional thermal energy or alternative
November 2009 POWER
subsidizing the industry. This is how the industry grew in Europe,

and in many countries the subsidies have now been removed.
Acciona Chiles CEO, Alfredo Solar, agrees that without some
kind of government intervention, it will be difficult for renewables
to establish themselves. Jose Escobar of Mainstream argues for
promoting the financial environment around renewables projects:
Europe has proven that there are ways to promote an investment climate and to control the risks associated with renewables
projects. If the banks feel that the risks are controlled, then it is
easier to gain access to project funding.
Other voices, such as Guillermo Paredes of Enerconsult, say that
any foreign company that comes into the renewables market needs
to understand that it is run on a free market basis. In Europe, companies may expect the government to do more, but there is little
tradition of this in Chile.
Nelson Stevens of Wireless Energy argues that Chile is in a difficult situation when it comes to renewables. It cant compete
with the U.S. or Europe in terms of technology, nor can in compete with Brazil in terms of labor cost. Given the changes in the
law, the next few years will be crucial ones in the evolution of
renewables in Chile.
nonconventional renewables (see sidebar). The general impression of
the market is that Chile has great solar energy potential, but the technology isnt yet ready to compete here or elsewhere.

www.powermag.com
67
Power IN CHILe
Transmission Challenges
The Chilean transmission sector is facing a great challenge. Transelecs CEO Kuhlmann explains: Our challenge was to take this technically well-managed business and adapt it to the new climate.
Since it was spun off from ENDESA in March 1993, Transelec
has remained the dominant, though not monopolistic, player in the
market. The transmission sector mainly consists of three interlinking sectors: the trunk system, which is 100% owned by Transelec
and permits the transmission of electricity across the majority of the
country; the sub-transmission systems that connect the main grid to
areas of the distribution commissions; and the transmission facilities,
designed to supply nonregulated customers, mainly mining and large
industrial users. Transelec retained 100% of the market for 500-kV
transmission lines. It has 46% of 220-kV lines, and competition from
the distribution companies leaves just 6% for Transelec at the 154-kV
level. Since the Short Law was implemented, Transelec bids have
won three out of five transmission contracts.
Chile benefits from a dynamic industry that services the transmission sector. PROINGESA, a multidisciplinary engineering company
based in Concn, has gone through a rapid period of growth based on
its focus on the transmission sector. CEO Ivan Rivero explained, This
is a market that has seen explosive growth. Our company grew 100%
every year for the past three years. Samual Jerardino, associate director of KAS Ingeneria, a engineering and consultancy company, said,
There are many opportunities for niche players such as ourselves.
Transelecs Kuhlmann believes that the most difficult challenge
has been the change in the generation mix: When Chile was importing gas from Argentina, one of the advantages was that the combined-cycle units used to generate electricity could be built close to
the points of consumption. So for example, if your end customer is
based in Santiago, there is nothing stopping them from building a
combined-cycle plant in a close, convenient location. With other technologies this kind of approach just isnt possible. The hydro plants
are located near to the resource, which can be anywhere in Chile!
The coal-fired plants would preferably be located near to the sea, as
the pollution factor is extremely important. When we could no longer
rely on Argentinean gas, we had to look at these other technologies,
which wouldnt be located close to the consumption point and would
mean a more sophisticated transmission grid. Given the challenges
that the transmission sector faces, and the opportunities in supplying
the unregulated market (mainly mining companies) Transelec cant
afford to fail (Figure 10).
As mentioned previously, to date the central SIC is not connected
to the northern SING system. This means that Chile does not have one
national system whereby deficits in one area can be complimented by
excesses in the other. Instead, it has a consumer-dominated central
system and an industry-dominated northern system. This means that,
although Chile has a wealth of hydro resources in the center and south
of the country, should industrial demand pick up again, these cannot
be exploited. Instead, future generation on the northern grid is likely
to be fossil-fueled.
Chiles distribution networks are split into concessions with permanent licenses granted to operators. These licenses are transferable with the price of energy in the regulated market (>0.5-MW
consumers) being determined nationwide by a simple node price
plus operators commission (or value-added distribution allowance).
The distribution market is inherently monopolistic by design. As
holder of four concessions, SAESA Group CEO Francisco Mualim
observes that distributors can only add value by improving efficiency and the quality of services and reducing outages. Where there
is population growth, the distributor stands to gain, especially if it
can accurately predict the location of this growth and develop the
requisite infrastructure accordingly.
68
www.powermag.com
POWER November 2009
Power IN CHILe
10. A Transelec substation. AREVA constructed a major substation for Transelec, Chiles main transmission company. Located in Charrua,
520 km south of Santiago, the 500 kV/220 kV substation is designed to incorporate the nearby Ralco 570-MW hydro power plant, and is a key
element of a project to strengthen Transelecs 500-kV transmission system. Courtesy: Transelec
The distribution licenses make for extremely attractive investments. The stability
of the country, market transparency, and security of these regulated but private monopolies
combine to offer a low-risk investment with
relatively predictable returns. It is testament
to Chiles risk profile and the distribution
concessions that SAESA was purchased in
mid-2008 by The Morgan Stanley Infrastructure Fund and the Ontario Teachers Pension
Plan. Teachers, not known for making rash
investments or expecting rapid returns, has
publicly stated that it hopes to hold its 50%
stake in SAESA for 70 years.
power plants being built. With the reduction

in demand due to the cancellation of or delays in mining and industrial projects, when
these power projects eventually come online,

there will be an oversupply and resulting
price reductions.
Market Risks
Critics have argued that Chile doesnt have
an energy generation problem; instead, it
suffers from an efficiency problem. Instead
of focusing on increasing its capacity, it
should increase its efficiency, in both the
generation and mining sectors. Alfredo De
La Quintana, development head of Conecta,
an energy solution provider, told us of the
opportunities for generation companies: If
I can manage a 1% of improvement in the
efficiency of a generator, we would be talking of millions of dollars.
Maria Gonzales, director of energy efficiency company, Energetica, told us that her
company can help regulate energy demand in
Chile by restructuring companies so they use
as little as possible electricity during peak
hours, thus reducing strain on the grid.
Claudio Ramirez, commercial manager
of EDYCE, suggests that there are too many
November 2009 POWER

www.powermag.com
69
Power IN CHILe
Carlos Lobos, Wrtsil
Due to the global financial crisis, energy

demand has dropped and projects in the influential mining sector have been pushed
back (see sidebar). Industrial output has
fallen 8.3% year over year, while copper production is down 2.2% year over year. Critics
argue that although Chile certainly needs to
invest in new generation, perhaps it needs to
focus and predict exactly what it needs. If it
fails to do so, once the current range of projects come to fruition, it will have considerable overcapacity.
It was in 2007 that the Chilean energy crisis came to its head, when a combination of
drought, gas reductions, and high oil prices
brought the industry to its knees. The industry is in agreement that there wasnt enough
investment in the energy sector, but when all
of the new projects that the crisis inspired

all come online, some losers will emerge.
Given the current tight financial conditions, another challenge that entrants and
potential entrants find is the difficulty of
financing projects, particularly renewable
energy projects. Francisco Aguirre of Electroconsultores, a boutique contractual consultancy, explains that PPAs have changed to
allow the investor to pass on the cost of any
fluctuation in fuel prices to the end customer,
which should encourage investors.
Roberto Morrison, general manager of
Soletanche-Bachy, a French-owned multinational focusing on foundation works, argues
that The financial crisis has pushed back
some projects as demand has been reduced,
but that due to the long-term contracts that
Soletanche-Bachy has, his company is well
positioned to weather the crisis.
SN Powers Huseby explained, Market
conditions have tightened up considerably
over the past year in terms of project financing, both in terms of availability of credits and
the conditions of credits and covenant costs,
but SN Power has not been having problems
with financing in Chile. However, it is more
difficult than before and it is also taking longer
to obtain credit. Banks are considerably more
inaccessible in terms of the process that you
have to go through, so you need to take that
into account when executing your projects.
Carlos Lobos, country head of Wrtsil,
the Finnish service company, argues that
the financial crisis was new opportunity for
companies like Wrtsil. He went on to say
that he intends to move aggressively in the
Chilean market with the intention of becoming a market leader.
Edwin Chavez, county head of Siemens
Chile explained: I believe the crisis did not
Minings Influence in Chile

Mining is by far the largest and most
profitable sector of the Chilean economy, featuring both a strong state-owned
player, Codelco, as well as a full array of
multinationals. This vast mining sector
offers strong advantages due to synergies
in demand. Chile produces about onethird of the worlds copper, and these
exports directly influence Chiles balance
of trade.
Mining and energy are intrinsically
linked in Chile. For any new mining project, the financiers will require a power
purchase agreement specifying where the
project will obtain its energy from and
how much it will cost. Julio Molina, energy head of Cummins Chile, a motor and
70
generator supplier, told us that at the

peak of the energy crisis in 2007 (also the
peak of the commodities bubble), there
was a huge demand for energy. However,
since then, as the price of copper fell and
the global credit crisis hit, there have
been delays and cancellations of projects,
meaning that energy demand is projected
to stabilize in Chile.
Jean Marincamp, energy head of Atlas
Copco Chile, argues that there is a core
demand for copper from the BRIC countries (Brazil, Russia, India, and China),
and this demand has weakened due to the
financial crisis. But once the economy recovers there will, once again, be extensive
demand for energy in the north of Chile.
www.powermag.com
Edwin Chavez, Siemens Chile
affect everyone in the same way or to the

same effect. Some of us view it as an opportunity to grow. Sixty percent of our income
comes from the mining sector, and we werent
sure what kind of impact the financial crisis
would have on them and how that would affect their operations. We were surprised that
they stopped some of the larger projects they
had planned for the next five to 10 years. As
we saw, though, they halted these projects
just for a few months. At the current time of
speaking, as the copper price has recovered,
so the situation has improved.
Beyond the issues caused by the recent
financial crisis, the lack of credit is due to
the difficulties financiers face modeling
spot energy prices in Chile and the resulting
problems that arise when trying to accurately
value proposed projects. The spot energy issue is compounded by the extreme volatility
of historic price data caused by the gas crisis
and the global increase in fuel prices during
2007 and 2008.
Juan Carlos Joblet, who heads up investment bank Asset Chiles power services,
noted that a strong PPA is key to securing
finance. For the generator looking to supply the northern grid (SING), this should not
present a problem, as over 90% of demand is
from mining and industrial clients.
Indeed, Raoul Soto Mayor, partner at the
investment fund Southern Cross (which holds
a 50% stake in Gasatacama and owns generator Campanario), argues that The Chilean
mining industry can probably provide longerterm contracts than any other sector in the
world, which, given the stability of the country, is highly attractive to investors.
Jos Snchez, country head of Atlas Copco, a well-established mining service compa-
POWER November 2009
Power IN CHILe
ny that is seeking opportunities in the energy
sector, said that one of the main attractions
of his company as a partner are the financing opportunities that Atlas Copco can offer:
We believe this gives us an advantage over
our rivals.
The problem of funding is particularly
acute for the nonconventional renewables
sector. Not only do investors and financiers
have to deal with volatile spot prices, but in
Chile there also are no top-ups or guaranteed
base prices for renewable energy. For the European or North American investor, used to
markets structured to encourage renewable
generation and generous state subsides for
construction and operation of green plants,
this can be difficult to deal with.
Environmental Concerns
The huge expansion of projects that Chile is
now experiencing doesnt come without consequences to both the environment and the local
population. Chile has moved from combinedcycle plants, which can be built in a number of
locations because the fuel is imported, to coal
and hydro plants, which need to be located either near the sea or near the natural resource.
This has resulted in greater resistance toward
new projects. Local populations argue that
these plants threaten water supply for human

and agricultural consumption, change the priorities of the local government, and adversely
affect the local environment together with the
tourism economy, which many of these local
communities are built on.
Under the current legal framework, once a
company has the water rights to a project, it
can force local residents to sell their property
(subject to reasonable compensation) in order
to begin developing a property. Certain exceptions are made for indigenous populations.
Though there are certainly environmentalists
who are adamantly opposed to all developments, and there have been suggestions that
local pressure groups are being organized by
international nongovernmental organizations,
there can be no doubt that many local indigenous people are being asked to sacrifice a lot
for little in return. Chilean companies and environmentalists remain far apart.
SN Powers Huseby believes that the
biggest challenge upon entering Chile is
persuading the locals who are affected by
a project that the investment is good for
the country and good for them. He claims:
If you do it right, projects can become an
important catalyst for development locally.
You can implement training programs to
engage the local population in the projects

you are leading, you can have plantations
of forests, develop forest management, and
develop greenhouses. There are many ways
to involve communities in the projects. Another measure is to manage the local provision of food. All of the foods consumed
at our constructions are locally produced.
There are lots of things you can do if you
start thinking about it. The way to do it is to
start consultation early on and find out what
is important to the residents of a local community. It is a long process and it takes time,
and in many cases you need to win trust, so
you may need to do some preliminary work
to build trust with people.
Manufacturing
for the Power Industry
Chile is not known for its manufacturing
industry. Its small population and relatively
high labor costs have made it less attractive as an outsourcing location compared to
Asian countries or Brazil, and local efforts
have been focused on the mining and processing sectors. Felipe Andrews, General
Manager of HBSE, which provides solutions to the electricity sector, argues: We
have noticed that most companies which
November 2009 POWER
www.powermag.com
71
Power IN CHILe
11. High-level teamwork. Kipreos is a low-, medium-, and high-voltage transmission line erector that has developed sophisticated helicopter operations for erecting transmission lines in challenging terrain. Courtesy: Kipreos
have the experience of manufacturing complicated, sophisticated products will base

their operations in Brazil.
Chile does, however, have some wellestablished and technologically advanced
manufacturers in the energy sector. The
same principles of economic liberalism that
define energy legislation apply to the wider
economy, and there are few trade barriers
to protect Chilean manufacturers. Chile is
probably the most pro-market economy in
South America, and numerous trade agreements have forced energy components manufacturers to sink or swim.
Pablo Neuweiler, commercial manager
of Chiles largest transformer manufacturer, Rhona, notes that: We have no import barriers like Brazil or Argentina, which
forces us to be competitive. We are used to
it. Carlos Rojas of engineering company
Proingesa, says, This type of market forces
us to be more competitive, to improve our
management and strategic running of the
company.
Though transmission and generation
companies tend to view cheap components
as a false economy in light of the significant financial implications of shutdowns,
Chilean companies are still reviewing
their businesses in order to meet emerging
competition from Asia. Augusto Wiegand,
72
general manager of the transformer manufacturer TUSAN noted: We need to start

manufacturing highly technological items
because the cheaper ones will be produced
in China, and we will be left unable to compete in the global . . . economy. The major
Chilean transformer manufacturers are increasingly focused on differentiating themselves from the international competition
through after-sales services and their ability
to adapt rapidly to the needs of local clients.
Wiegand predicts: We shall evolve into a
services company.
Domestic components manufacturers are
forced to offer high-tech products as their
local clients normally procure supplies using international tenders and, according to
the local head of Tyco Electronics Energy
Division, Juan Darritchon, the energy distributors cooperate on many parts tenders in
order to ensure conformity across the countrys grids.
Perhaps the area where Chile needs to invest the most, but seems to be focusing the
least, is the area of innovation. In order to
effectively compete in the global economy,
Chile needs to move forward and do things
better rather than doing them cheaper. Chilean companies are dynamic and aggressive
in moving to larger markets, but they need
to find their competitive advantage. EDYCE,
www.powermag.com
the domestic leader in steel structures, is an

example of how when a Chilean company invests in improving processes and in research
and development, it can become not only a
domestic leader but also a regional leader.
Multinationalism
and Chilean Exports
A notable feature of Chile is its growing
intraSouth American trade and investment
model. As well as having representation from
the full range of multinationals present in
most countries around the world, Chile also
hosts various South American multinationals.
An example of a foreign company that has aggressively and dynamically moved into Chile
is SANTOS CMI. The Ecuadorian EPC offers
a different solution than most companies in
the market. Unlike its competitors, it comes
from a construction background rather than
an engineering background. Gaston Fontaine,
country head, said, Our engineers are practiced and experienced in the field, and that
gives us a relative advantage in the market.
Another South American multinational is
WEG, the Brazilian service company. Fernando Cardozo, WEGs country head, told us
why WEG decided to enter the Chilean market: Financially, Chile is absolutely secure.
It is an extremely competitive market in spite
of its size. I could say that in terms of the way
POWER November 2009
Power IN CHILe
it operates it is very similar to bigger countries, like the United States, for example.
Some Chilean companies have built, or are
in the process of building, substantial overseas operations. The open market culture in
Chile, something lacking in many other Latin
American business communities, has aided
this process as Chilean businessmen throughout the power value chain are use to dealing
with foreign clients and meeting their tendering processes and standards. Pablo Bosch,
general manager of BBosch, explained that
through consistent annual growth of 13% to
16%, his company has grown from a simple
erector and maintainer of transmission lines
into the tower fabrication sector. BBosch
is now a Latin American leader in the fabrication business and has galvanizing plants
(serving sectors beyond power) in Chile and
Brazil. For Bosch, a keen free trade and globalization advocate, building his export business is essential: I know I can not depend
only on my Chilean customers. Therefore
BBosch is developing the network and engineering capacity to sell structures all over the
world. The company, which had a turnover
of approximately $100 million last year, sells
to Peru, Brazil, and Costa Rica and is even
bidding on a project in the Arctic.
Chilean companies are gaining market penetration in other Latin American markets because they have built strong relationships with
European and North American EPCs, and
their clients are confident that they will meet
their requirements regardless of the location of
the project. BBosch was a key subcontractor
on the SIEPA project to build an international
Central American grid because of this reality.
Fernando Zuiga, energy head of SalfaCorp, explained his strategy for expansion:
Presently, we are the biggest construction
company in Chile. Two years ago we acquired a company in Peru. We have been
present two years now in the Argentinean
market and we have recently opened an office in Colombia. To be able to reach those
countries you need investments or to buy
domestic companies.
Although many Chilean service companies
are moving into foreign markets, there is considerable confidence in the domestic market.
This is due to the rising demand for energy
and the fact that the many of the new plants
coming online are typically located far from
the load and therefore require more transmission infrastructure than the gas-fired plants
built in the early part of this decade. Local operators are building relationships with foreign
manufacturers in order to service the Chilean
market. Sergio Palacios, general manager of
transformer engineering and service company
Jorpa, said, We have a strategic alliance with
an Argentine company called Los Conce S.A.,
November 2009 POWER
ica, in the Dominican Republic to be more

specific, and also in Peru. DESSAU INGENTRA is one of the huge beneficiaries of
this growth within the hydro sector, which
advanced company growth at a rate of 300%
over the past three years. Quezada reckons
that the level of experience within his company is the driving force behind this growth.
Fernando Vivanco is commercial manager
of Mas Errzuriz, a specialized EPC company
working in Chile as well as expanding overseas. It is another shrewd operator that has
been quick to take advantage of this growth
in projects: These projects need companies
with expertise in subterranean construction,
and we have it, he said.
Chile at a Crossroads
Ricardo Quezada, DESSAU INGENTRA
which is starting to produce transformers, and

we have a contract to distribute and represent
their products here in Chile.
Alfredo Zamorano, CEO of Chilean EPC
Proyersa Energy insisted: We do not discard
the international market. . . . right at this moment the domestic market is the most important [for us].
Human Resources
Industry chiefs are keen to emphasize that
the Chilean service sector is a sophisticated
market with a labor force as skilled as in any
Western market. For example, Kipreosa
low-, medium- and high-voltage transmission line erectorhas developed a substantial helicopter operation in order to undertake
complex operations in some of the worlds
most adverse terrain (Figure 11). Chilean
companies are focused on developing the
knowledge base of their employees and adding value through transferring their expertise
to their clients. Oscar Jimenez, general manager of the precision instruments distributor
Intronica, believes that What we have to do
is add value by training the users.
Due to its topography and well-established
hydro sector, Chile has strong, established expertise in this field. Though the ill-conceived
regulatory changes of 1999 effectively stifled
new hydro developments and triggered a brain
drain as engineers emigrated to more promising markets, it also forced Chilean engineering companies to enter new foreign markets.
The 2004 revision of the law reopened the
gates to new hydro developments and has put
Chilean EPCs in a strong position.
Executive Vice-President of Chilean/Canadian EPC DESSAU INGENTRA Ricardo
Quezada claims: DESSAU INGENTRA is
set to expand through all of Latin America.
We currently have projects in Central Amerwww.powermag.com
Chile faces a great challenge to diversify its

power generation sector, maintain its environment, and achieve energy independence. Chile
suffered greatly from energy supply security
in the last few years; its key mining sector was
handicapped, and its reputation as an entry
point for South America was damaged. The
main actors in Chile are aware of the seriousness of this situation and have shown increased
interest in the energy sector as a result. The removal of natural gas from Chiles energy mix
leaves a gaping hole, and it is important that
Chile doesnt repeat its mistake and attempt to
fill this round hole with a square peg.
Chile certainly offers great opportunities
for investors, but there is still uncertainty as
to how its generation sector will develop. A
great volume of new projects are planned or
under construction, but the lack of governmental control over the wholly privatized
sector makes it difficult for any specific solution to be pushed.
Chile likely will look to hydro projects
and coal-fired plants for the next generation
of power plants. Hydro, most prominently
HidroAysn in the south, will service the SIC.
In the north, the SING will rely on coal-fired
plants. The two LNG terminals being built
will diversify Chiles portfolio, but it remains
unclear whether LNG plants can financially
compete in the Chilean market. The lack of
subsidies for renewables means that it is unlikely Chile will become a regional leader in
this area.
Should Chile manage to reconcile with
one of its neighbors and begin importing
natural gas again, doing so could change all
of this once again. The world will be looking
at Chile with great interest to see which path
it takes.
Ramona Tarta (ramona@gbreports

.com), Mark Storry (mark@gbreports.com),
and Oliver Cushing (oliver@gbreports.com)
are reporters for Global Business Reports
(info@gbreports.com).
73
Benchmarking
Benchmarking Nuclear Plant

Operating Costs
In an exclusive agreement with the EUCG Nuclear Committee, POWER was
provided access to some key, high-level performance and operational
data from the groups nuclear industry benchmarking database. All U.S.,
and many international, nuclear power plants are members of the committee and have contributed to its database for many years. This month
we introduce you to the EUCG Nuclear Committee and share sample nuclear operating costs. Look for future reports on other key performance
benchmarking metrics during 2010.
By Dr. Robert Peltier, PE
he nuclear power industry enjoyed

another banner year in 2008. The industrys average plant capacity factor
remained above 90% for the second year
in a row, and the 104 U.S. nuclear power
plants (35 boiling water reactors and 69
pressurized water reactors) produced more
than 800 million MWhjust a tenth of a
percent less than in 2007. Sixteen of these
plants recorded capacity factors greater than
100%, which is a phenomenal achievement.
Exelon Corp., for example, reported that its
17 reactors finished the year with a fleetwide
average capacity factor of 93.9% and operated above 93% for the sixth consecutive
year. In comparison, the industry average for
coal-fired plants is about 70%, and for wind
turbine plants it was slightly less than 25% in
2008, according to the U.S. Energy Information Administration.
Equipment and controls upgrades at nuclear plants have also increased the rated
power output of selected plants over the past
few years. During 2008 alone, the Nuclear
Regulatory Commission (NRC) approved a
combined 726 MW of power uprates, which
are normally unavailable to coal-fired plants,
given the limitations of the Clean Air Acts
New Source Performance Standards. Since
1977, the NRC has approved some 124 nuclear power plant uprates, representing about
5,640 MW of added capacityroughly
equivalent to constructing another five complete nuclear power plants. (See Nuclear
Uprates Add Critical Capacity in the May
2009 issue of POWER.) If you consider the
enormous increase in the industrys average
capacity factor over the past 20 years, improved plant operations are equivalent to at
least another dozen plants (Table 1).
The nuclear uprate program that is driving these upgrades remains strong. There are
currently nine power uprate applications in
the NRC queue awaiting approval that total another 949 MW. In addition, the NRC
expects nuclear operators to submit a total
of 40 uprate applications between now and
2013, representing another 2,075 MW of
installed capacity. For example, Exelon announced in late September a series of power
uprates across its fleet that will increased the
rated capacity of its plants between 1,300
and 1,500 MW within eight years without
turning a spade of earth, said Exelon Nuclear President and Chief Nuclear Officer
Charles (Chip) Pardee at the press conference. With these uprates, we will be able
to produce the equivalent output of a new
Table 1. The nuclear industry received an A on its 2008 report card.
Source: Energy Information Administration
Year
Total electricity
generation (MWh)
Nuclear
generation
(MWh)
Nuclear
fuel
share (%)
Capacity
factor (%)
Summer
capacity
(MW)
Number of
operating
units
1988
2,707,411,177
526,973,047
19.5
63.5
94,695
109
1998
3,620,295,498
673,702,104
18.6
78.2
97,070
104
2007
4,156,744,724
806,424,753
19.4
91.8
100,266
104
2008
4,110,258,881
806,181,935
19.6
91.5
100,266
104
74
www.powermag.com
advanced nuclear reactor, and well bring it

to market in a timeframe commensurate with
the fastest new construction.
EUCG Becomes the Industry

Standard
There are many reasons why the nuclear
industrys performance has made such a
dramatic improvement over the past two
decades, especially in terms of increased capacity factors, improved safety, and keeping
the price of electricity at the busbar very low.
Attention to operations and maintenance has
certainly improved, but so have the entire
work process planning and scheduling processes. Where the length of a refueling outage
was measured in weeks or months a decade
ago, today, it is down to a couple of weeks.
Improved computerized information management systems, human productivity and
work processes, and effective leadership all
share credit for the industrys excellent performance. In addition, and perhaps most importantly, these performance improvements
occurred while maintaining a high level of
plant safety and quality assurancethe yin
and yang of every nuclear power plant.
Another significant cultural change over
the past two decades was that nuclear operators established performance measures that
were objective, measurable, and related to
results. However, the only way to accomplish
this goal was to have a source of validated,
consistent data that nuclear power generators
could use to compare their performance with
that of their peers. That is when the EUCG
(formerly known as the Electric Utility Cost
Group) stepped in and, working with other
industry organizations, developed a common
set of cost and data definitions. When the
industry approved those definitions, compa-
POWER November 2009
Stay on top
of change
with Intergraph
Manage change strategically. Manage configuration sMarter.

Change can be a good thing, especially when youre ready for it. While methods change slowly,
those pipes, pumps, and pieces of equipment and their paperwork never seem to stop changing.
With Intergraphs integrated plant design environment, you have an edge as conditions, assets,
and data change over time. Your data becomes strategic when used in a powerful data portal from
which you can drive concurrent engineering, rules-based design, and global worksharing throughout
the plant life cycle. From ribbon cutting to handover to operational plant, Intergraph helps you configure
your data faster and smarter, taking full advantage of it, minimizing costs, speeding up operations
and staying on top of change.
www.intergraph.com/power
Intergraph and the Intergraph logo are registered trademarks of Intergraph Corporation. 2009 Intergraph Corporation. 10/09
benchmarking
EUCG Nuclear Committee Manages Critical Benchmarking Data

Founded in 1973, the EUCG is an association of utility professionals that provides a forum through which electric utilities
can improve their operating, maintenance, and construction performance. The EUCG is organized into committees and working
groups by interest areas such as fossil, nuclear, and hydroelectric
plants; transmission and distribution; and information technology. One of the key functions of the EUCG is to develop and
share benchmarking information and unit reliability strategies
and best practices among member utilities to help them excel in
competitive markets. The EUCG committees hold technical conferences, including workshops, twice yearly for the purpose of
information exchange.
The EUCG Nuclear Committee is a cooperating group of nuclear
plant representatives from all 25 of the nuclear owners/operators
in the U.S. International members include Canadas Bruce Power,
Hydro-Qubec, and Ontario Power Generation; Frances Electricit
de France; Chinas Daya Bay Nuclear Power; Japans CRIEPI; Romanias Societatea Nationala Nuclearelectrica; and Spains AlmarazTrillo, ANAV, and Nuclenor.
The committees primary goal is to optimize the costs and reliability performance of participating plants by publishing for its
rable performance data were used to populate
the EUCGs Nuclear Integrated Information
Database (NIID).
members a comprehensive database of performance metrics for

comparing nuclear plant costs, staffing, and performance data and
best practices derived through surveys of its membership.
A Data Membership in the EUCG entitles a member to receive
a complete benchmarking data set customized for the members
plant plus online access to the Nuclear Integrated Information
Database. Membership fees are significantly lower than other industry databases or consulting organization costs.
The Nuclear Committee presents industry-relevant topics during
its biannual workshops, and members discuss and share ways to conduct data mining of the databases. The agendas are member-driven.
Standard benchmarking reports are made available to members
beginning with the Early Exchange, a high-level view of industry cost trends released in January of each year. That report is
followed by plant and unit performance and by nuclear operating costs, capital, and staffing reports released throughout the
year. The extensive peer network gives members the opportunity
to raise questions or survey other member utilities on keys issues
or other benchmarks.
For more information about the EUCG, contact Executive Director Pat Kovalesky at 623-572-4140 or visit www.eucg.org.
The EUCG subsequently prepared a series

of benchmarking reports for its members.
Since then, benchmarking has grown far be-

76
www.powermag.com
yond just comparing standard performance

metrics, such as capacity factors and length
of refueling outages, to identifying best prac-
POWER November 2009
benchmarking
1. Operating costs for 2008. The EUCG defines operating costs as the sum of plant,
support, and other related costs, without fuel or capital investment expenses. Note that the
data are reported by each of the 65 nuclear plants in the U.S., not by individual units. Individual
unit data are available to members of the EUCG Nuclear Committee. Source: EUCG
$50
$40
$20
Each of the nine processes is further divided into 46 sub-processes or level one processes in the NIID. Member companies can
define additional sub-processes into activities
(level two) and tasks (level three). However,
November 2009 POWER
$0
Plant
2. Total operating costs for 2008. The EUCG defines total operating costs as the
sum of operating costs plus fuel, but not capital investment expenses. The average cost of
fuel for plants in each quartile can be found by subtracting Figure 1 data from that of Figure 2.
Source: EUCG
$50
$40
Minimum plant
Maximum plant
Average plant
1st quartile 2nd quartile 3rd quartile 4th quartile

$16.53
$20.01
$23.12
$27.75
$19.88
$22.62
$27.45
$50.54
$18.15
$21.15
$25.40
$33.22
$/MWh
Operations. Includes operations, environmental, chemistry, and radiation protection.

Design engineering and configuration
management. Includes design changes and
physical configuration management.
Work management. Includes planning
and scheduling, preventive and corrective
maintenance, and tool calibration.
Plant engineer and equipment reliability. Includes long-term planning and lifecycle management, performance monitoring, and continuous equipment reliability
improvement.
Materials and services. Includes materials
management and warehousing, contracts
and purchasing, and material disposal.
Support services. Includes information
technology, business services, human resources, and executive offices.
Loss prevention. Includes security, quality
assurance and control, corrective action
program, emergency preparedness, and
safety and health.
Training.
Nuclear fuel. Includes fuel management,
transportation, handling, storage, and disposal.
$10
$30
$20
$10
$0
Plant
3. Total generating costs for 2008.
The EUCG defines total generating costs

as the total operating costs plus capital investment expensesa fully loaded cost. Source:
EUCG
$60
$50

Minimum plant
Maximum plant
Average plant
$18.65
$23.98
$21.53
$24.26
$29.64
$26.82
$29.92
$35.56
$32.44
$36.38
$60.32
$44.47
$40
$/MWh

$12.15
$15.41
$17.61
$22.37
$15.19
$17.31
$21.98
$46.66
$13.56
$16.21
$20.35
$28.06
$30
Defining Consistent Data

Clear process definitions are the prerequisite for collecting comparable data from different plants. Without a common lexicon, it
would be pointless to use the data for benchmarking purposes. Developing new processes, and maintaining existing ones, has been
a coordinated effort between the EUCG, the
Institute for Nuclear Power Operations, the
Electric Power Research Institute, and the
Nuclear Energy Institute (NEI).
The process definitions are organized into
nine top-level groups that are defined as level zero processes:
Minimum plant
Maximum plant
Average plant
$/MWh
tices and implementing continuous improvement programs.

Todays NIID includes plant and unit performance and cost data, operating and outage
cost data, capital cost investments, staffing
information, and more. The database, originally developed in 1986 and updated annually
for its participating members, is recognized
as the most comprehensive source of nuclear
plant data in the world. However, EUCG data
are shared on a give-to-get basis among
members, meaning that the data are only
available to members that participate by providing their plant data.
$30
$20
$10
$0
Plant
www.powermag.com
77
benchmarking
4. Operating costs, average for 20062008. Source: EUCG
$50
$11.24
$14.88
$14.91
$17.14
$17.36
$21.49
$21.58
$38.69
$13.01
$15.97
$19.30
$26.52
$/MWh
$40

Minimum plant
Maximum plant
Average plant
$30
$20
$10
$0
Plant
5. Total operating costs, average for 20062008. Source: EUCG

$50

Minimum plant
Maximum plant
Average plant
$15.69
$19.58
$17.44
$19.64
$21.94
$20.69
$22.10
$26.13
$23.95
$26.84
$41.90
$30.99
$/MWh
$40
industry standardization occurs only at level

zero and level one processes.
The process definitions define how to
collect and allocate costs and other important data. In addition to cost data, the NIID
also contains key performance indicators
(KPIs) and staffing data, making it a very
useful tool for benchmarking. Many other
metrics can be derived from the NIID, giving the database user extra flexibility to
design additional metrics. Specifically, the
types of data collected and stored in the
NIID include:
$30
$20
$10
$0
Plant
6. Total generating costs, average for 20062008. Source: EUCG

$60

$50
Minimum plant
Maximum plant
Average plant
$17.67
$23.97
$20.78
$24.03
$27.44
$25.65
$27.86
$34.71
$30.83
$34.83
$57.42
$40.12
Comparing Nuclear Plant

Operating/Generating Costs
$40
$/MWh
The EUCG Nuclear Committee is the nuclear industrys preeminent organization for
economic and performance benchmarking
data and has the most comprehensive and
accurate nuclear industry cost and staffing
database in the world because the data come
directly from plant operators. Therefore,
those who rely on other sources of nuclear
industry performance data do so at a risk.
For example, the NEI presents data on nuclear plant operations developed by a database vendor that interprets Federal Energy
Regulatory Commission Form 1 filings and
$30
$20
$10
$0
78
Cost data. Nuclear operating and generating costs are collected for most level one
and level two functional processes or subprocesses. The differences between operating and generating costs are discussed
later in this article.
Key performance indicators. KPIs measure process characteristics in quantifiable
terms and usually are economic in nature.
KPIs are tracked throughout each level
of the hierarchy or may be derived from
or consist of combinations of other KPIs,
cost data, or staffing data and be reported at the appropriate level. For example,
Unit Capability Factor is reported at the
unit level, whereas Productivity Factor
(MWh generated/full-time employee) is
reported at the plant level. This difference
is important when there is more than one
unit at a plant site.
Staffing data. Staffing data allow human performance calculations and cost
comparisons. For example, both cost and
staffing data are required to compare utilities that outsource with those that rely on
permanent employees to perform different types of work. Staffing data allow the
user to make comparisons between similar plants and processes. Staffing data,
like cost data, are reported at the plant
level and include on-site utility employees, off-site corporate support, and baseline contractors.
Plant
www.powermag.com
POWER November 2009
L I Q U I D
L E V E L
M E A S U R E M E N T
Introducing the all-new

Eclipse Caged GWR probe
The worlds only Guided Wave Radar Single Rod
to combine all these features in one probe:
The viscosity immunity of a Single Rod probe
The unimpeded performance of a Coaxial probe
Measurement to the very top of the chamber
Measurement of dielectric constants as low as 1.4
Accurate measurement of liquid interface level
esigned for use in external chambers, the all-new Model 7xG

Caged Guided Wave Radar Probe is a single rod probe that
combines the unimpeded performance of a coaxial with the

viscosity immunity of a single rod.
Engineered exclusively for Eclipse level transmitters, the Model 7xG
probe is available in three different diameters to dimensionally match either
existing or new 2", 3", or 4" chambers. This creates a perfectly matched
impedance along the entire length of the probe for error-free signals. The
probe measures dielectric constants as low as 1.4 in temperatures of up to
+400 F (+200 C) and provides the capability of an overfill probe with accurate measurement up to the full point of a chamber. Because of its matched
impedance characteristics, the Model 7xG probe is also ideal for interface
level measurement.
To learn more about the all-new Caged Guided Wave Radar probe, call
us or visit magnetrol.com.
Worldwide Level and Flow Solutionssm
1-800-624-8765 magnetrol.com info@magnetrol.com
SIL 2
benchmarking
80
7. Operating costs, industry annual average for 20042008. Source: EUCG

35
Industry average
1st quartile
2nd quartile
30
$/MWh
25
20
15
10
$14.76
$12.00
$15.76
$16.81
$16.65
$13.62
$13.17
$17.28
2005
$18.17
2006
$14.24
$17.31
$15.30
5
0
$16.07
2004
$18.32
2007
$19.49
2008
8. Total operating costs, industry annual average 20042008.

EUCG
35
Industry average
1st quartile
Source:
2nd quartile
30
$/MWh
25
20
15
$19.24
$16.41
$20.96
$21.47
$17.71
$17.86
$18.44
$21.46
2005
$22.41
2006
$22.84
2007
$20.05
$22.62
$19.94
10
5
0
$20.27
2004
$24.43
2008
9. Total generating costs, industry annual average for 20042008. Source:
EUCG
35
Industry average
1st quartile
2nd quartile
$29.64
30
25
$/MWh
models the costs of unregulated plants to estimate nuclear plant production costs. Those
data sets also exclude any indirect costs.
Determining indirect costs is very difficult
because it requires a detailed understanding
of the peculiarities of utility economics and
cost reporting processes at each plant. The
EUCG database has none of those shortcomings.
Heres an example of the differences
between data from the EUCG and the data
source used by the NEI. The NEI nuclear
plant operating data presented on its web site
show that production costs (defined as all
operating costs plus fuel) for the top quartile
of plants, averaged for the period 2006 to
2008, were $16.1/MWh (1.61/kWh). The
EUCG data, as reported directly from its
members, average $17.44/MWh, as youll
see in Figure 5about an 8% difference. The
lesson learned here is to carefully consider
the source of your data.
The nuclear industry continues to have
the lowest cost of electricity generation
in the power industry, so examining those
costs is a good demonstration of the NIIDs
capability. The data were accessed by performing a series of queries on the NIID to
determine the available operating cost data
on a per-MWh basis. The NIID has a webbased query and reporting toolthe same
tool used by plants to add their latest performance data to the master database. (You
will note that the actual plant names are
blinded, in compliance with anti-trust rules.
The complete data set is only available to
members on a give-to-get basis: You provide your plants data sets, by unit, and then
you have access to the entire database.)
The cost and performance data are available by unit, enabling the user to select relevant and accurate peer groups (plant, unit,
technology, region, and the like) for benchmarking studies. (Although the database
includes several plants in other countries,
we provide data for just U.S. plants in this
article for easier comparison of plants with
similar operating constraints.)
POWER made a series of queries of the
NIID to obtain detailed production cost
data. The three key queries were for 2008
data, industry average data for 20062008,
and five-year industry data (20042008).
Within each key query, detailed cost data
were requested using standard EUCG definitions: operating costs (sum of plant, support, and other related costs), total operating
costs (operating costs plus fuel), and total
generating costs (total operating costs plus
capital investednormalizing the various
capitalization policies among utilities)all
in $/MWh. The data from each query were
then automatically formatted into bench-
$23.58
20
$25.02
$19.44
$19.69
$25.30
2004
$27.04
2005
$25.88
$21.17
$26.06
$22.81
$24.12
15
10
5
0
marking quartiles and bar charts. The results

from these nine queries are presented in Figures 1 through 9.
The NIID also features standard benchmarking reports and graphics that give users more time for data analysis and require
less time for constructing graphs and charts.
In addition, the NIID has been updated with
www.powermag.com
$28.05
2006
$28.56
2007
$31.24
2008
an optional purchasing power parity feature that accounts for international currency
fluctuations. Clearly, the EUCGs worldwide
reputation as the source of the most comprehensive nuclear benchmarking data available
is well deserved.
Dr. Robert Peltier, PE is POWERs

editor-in-chief.
POWER November 2009
Modeling & SiMulation
Modeling and Simulation Tools

Reduce Plant Outage Duration
Replacing equipment inside a nuclear power plant requires careful planning
that begins many months before the plant outage. Entergy has adopted
advanced modeling and simulation tools that allow engineers to walk
through the entire outage in a virtual model, thus avoiding unanticipated surprises.
By Jack Thornton, Mindfeed Marcomm
aterford 3, located about 25 miles

west of New Orleans, is one of the
dozen nuclear plants owned and/
or operated by Entergy Nuclear. The 1,157MW plant has a two-loop pressurized water
reactor that began commercial operation on
September 24, 1985. According to Entergy
Nuclear, the plants cost per unit of electricity
produced is one of the lowest in the Entergy
system. Data from the Energy Information
Administration showed Waterford 3 operated
at a capacity factor of 89% during 2008.
As is the case with every operating nuclear plant, upgrades are in order. Entergy plans
to replace the two steam generators, reactor
vessel closure head, and control element
drive mechanisms during an outage scheduled for 2011. The estimated cost of these
plant upgrades is approximately $511 million. One important feature of this plant outage is the absolute necessity that every aspect
of it be considered in the project plan. To that
end, Entergy Nuclear has adopted digital

modeling and virtual simulation, combined
with scanning inside reactor containment
buildings, to do the most thorough and costeffective job of preparing for the engineering
and for planning maintenance tasks.
These simulations are among the first of
their kind in the U.S. nuclear power industry, and the potential return on investment
using these digital tools is huge. John M.
Mahoney, innovations leader for Entergy
Corp., sums it up as another day, another
million dollars. Each day of a power plant
outage means purchasing about $1 million in
replacement power.
With that much money at stake, it is very
easy to justify the investment in modeling
and simulation technology for maintenance
and refurbishment projects. A plant can be
brought back online sooner when task sequencing is optimized through better planning. The same is true when potential delays
1. Moving a real pump. In the physical world, a reactor coolant pump motor similar to
the one in the Waterford 3 project is taken out of a utility company warehouse (left) and loaded
on a flatbed truck (right) for transport to a shop for refurbishing. Courtesy of BCP Engineers &
Consultants
82
www.powermag.com
are discovered early, preferably during the

planning phase, and avoided when the cost
and impact of any changes are minimal.
Combining Digital Tools

John Gaertner, tech executive for plant
technology at the Electric Power Research
Institute, pointed out that nuclear power
plants have excellent process management
and plant configuration management. But
they achieve it at great cost and with many
resources consumed. Creating a virtual plant
with scanning and PLM [product lifecycle
management] will integrate information systems, visualize and access information, perform logistical and analytical simulations,
communicate within plant processes, and
interface easily with suppliers, contractors,
and other entities.
Not many innovative technologies come
along these days that will change the way engineering is done, the way work plans are developed, and where training can be provided
prior to doing workespecially all at once,
Mahoney said. The problem is the complexity of the work that must be completed in a
two- or three-week outage. For example, refueling a power plant takes more than 2,000
discrete tasks. This involves many different
contractors and hundreds of pipe fitters, riggers, nuclear-certified welders, and so on.
Few of them have ever been inside Waterford
3s containment.
Because all U.S. nuclear power plants are
at least 20 years old and predate 3-D design
tools, it is impossible to find to up-to-date
3-D computer-assisted drawing (CAD) models for these plants. Good 3-D models can
be intelligently built from 2-D engineering
drawings by using techniques such as laser
scanning and sketch-tracing. Until now, nuclear generation owners have planned plant
outage work in traditional meetings and conferences using hundreds of paper drawings,
project timelines, physical mockups, and
POWER November 2009
(Ph
Since 1967,
More Nuclear Plants Have Chosen Plymouth Tubing

Than Any Other Brand...
...For Good Reason
hoto courtesy of Retubeco)
(Photo courtesy of Hydrodyne Inc.)
Plymouth Tube Co. offers the most comprehensive,

high-quality and high-technology selection of stainless
steel tubing in the industry. Its no surprise, then that for
more than 40 years, nuclear plants worldwide have
made us their preferred tubing choice.
XtraLowStress processed feedwater heater tubing
features the lowest residual stress in the industry
making it less susceptible to stress corrosion cracking.
XtraLowStress is available in wall thicknesses up to
0.134 (3.4mm) for super critical applications.
SEA-CURE , our exclusive alternative to titanium and

Cu-Ni, features exceptional corrosion and vibration
resistance. Select from a range of wall thicknesses from
0.016-0.083 (0.4-2.1mm).
No matter your plant requirement, Plymouth Tube Co.

has a proven tubing solution for you. Call us to find out
how we can help you run more efficiently, safer, cleaner
and with less downtime.
Plymouth's Type 439 tubing is not susceptable to

stress corrosion cracking and offers the best thermal
conductivity of stainless steel making it a reliable choice
for feedwater heater applications.
Get more information at www.plymouth.com
Corporate Headquarters:
29W150 Warrenville Road

Warrenville, IL 60555 USA
1-800-323-9506
1-630-393-3550
Fax:
1-630-393-3551
E-mail: energy@plymouth.com
Phone:
The Opportunity to Virtualize and Visualize

John M. Mahoney, innovations leader for
Entergy Nuclear, explained that the value
of modeling and simulation lie in their
ability to virtualize and visualize a
proposed modification to a plant. These
technologies add new and unique opportunities to review options and see the effects of the change virtually. This can be
done, he added, while we are planning
construction activities and conducting
pre-job briefings. Even when a simulation reveals no problems, it still has huge
value. Here are some examples:
Plant employees and craftspeople are

trained better and sooner, so everyone
understands the work and their role in it.
other training aids. However, those methods

no longer seem cost-effective.
Plan for Success

Modeling and simulation tools have been
available for some years, but few nuclear
power generators have adopted them for
Simulations as 3-D videos can augment,

if not entirely replace, verbal explanations and cumbersome paper drawings.
A reduction in human errors is ensured.
Coordination is improved among all the
crafts and contractors on site. Threedimensional virtual tours analyze task
sequences, work practices, and tool
selections before anyone enters the
containment building. Better project
execution results.
Knowledge retention and transfer help
offset retirements in an aging workforce.
New engineering ideas and alternative
solutions are evaluated faster and at far
less cost than trial and error.
outage and overhaul planning. What is

unique with this project is Entergy Nuclears innovation in combining laser scanning,
to prepare the plant as-built digital database, with modeling and simulation tools
to plan for this outage project. The resulting
3-D virtualizations also use 2-D engineering
BOLTING PROBLEMS?
Meet the solution:
Patented MultiJackbolt Tensioners

only require hand/
air tools to install
or remove. This
eliminates unsafe
and time consuming
bolting methods!
The impact of a potential fire on equipment located in a key area of the plant.
The replacement of a reactor coolant pump
(RCP) motor (Figure 1, p. 82) rated at
9,700 hp and weighing 115,000 pounds.
The replacement of thimbles and in-core
instrumentation (ICI) sensors that monitor
reactor fuel. ICI sensor replacement requires working underwater close to irradiated reactor components when cutting out
and reinstalling new units. This simulation
is heavy on ergonomics and radiationexposure monitoring.
These simulations were completed using

3-D simulation software from DELMIA, and
modeling was completed with CATIA, both
from Dassault Systmes. Some simulations
were done by the Dassault Systmes Industry
Services project office in Montral, Quebec,
Canada.
These simulation projects were not just
theoretical exercises (see sidebar). The planning that was based on knowledge gained
from these simulations is being put to the test
as you read this article. In October, Waterford
3 is scheduled to begin a 30-day refueling
outage when the RCP motor and ICI thimbles will be replaced, steam generator tubes
and the reactor head will be inspected, and
other maintenance tasks will be completed
as a precursor to the major outage scheduled
in 2011. Work on the RCP motor will extend
through most of the outage, a projected 25
days. (See the virtual motor removal sequence in the sidebar, p. 86.)
Benefits that are even more dramatic are
anticipated from modeling and simulation in
replacing the steam generators at Waterford
3. Clearances for the steam generator project
are as tight as two inches, Mahoney pointed
out. This means precise laser measurements
and a 360-degree view are essential for project engineers, contractors, and workers.
Mahoney believes combining scanning
and modeling with up-to-date planning could
take 13 to 15 days (or about 20%) off the old
industry-wide average of 78.5 days to replace
steam generators.
Develop As-Built Models
Our products save time and increase worker safety.

To learn more, request your FREE DVD or catalog at:
Laser scanning inside reactor containments

is not new in the nuclear power industry, but
neither is it in widespread use. (See Laser
Scanning Produces 3-D Plant Database in
the November 2008 issue of POWER for details of how laser scanning plant equipment is
www.superbolt.com
1-800-345-BOLT (USA)
1-412-279-1149 (International)
84
drawings, CAD files, and photos of previous

modifications.
Entergy Nuclear engineers completed
three simulations in late 2008 and early 2009
for Waterford 3:
www.powermag.com
POWER November 2009
WITHOUT
TOTAL INTEGRATION,
EVEN THE MOST COMPATIBLE PARTS DONT ALWAYS FIT.
Only Cleaver-Brooks offers single source and single responsibility for every
aspect of your industrial steam system projects, from burner to stack,
custom built to fulll your needs. Our Nebraska boilers, NATCOM burners
and Energy Recovery HRSGs have long been the industry benchmarks for
quality and engineering. When theyre incorporated into a complete system
built, managed and maintained by us, you are getting the best solution, the
best efciency, and the lowest emissions possible.
cleaverbrooks.com/engineered 402.434.2000
2009 Cleaver-Brooks, Inc.


used to produce an as built 3-D database.)
Laser scanning the equipment space is the
first step in preparing accurate as-built 3-D
models of existing equipment.
The accuracy is the direct result of scanning and photogrammetry. At Waterford 3,
this work was done by AREVA NP, Lynchburg, Va., an engineering services unit of
French nuclear power company AREVA.
Other utility companies have embraced laser scanning on a few projects, but none are
as focused as we are on using it for risk mitigation, Mahoney noted.
There is great value for power utilities
in using DELMIA and PLM tools in general
to build an up-to-date, dimensionally exact
model of everything inside the containment,
said Chris Staubus, general manager, utility
services, at BCP Engineers & Consultants,

which is a DELMIA and DS business partner for nuclear power. When we scanned
the containment and then modeled and
simulated the removal of the RCP motor, we
found conflicts between equipment and some
structures, he added. The DELMIA simulations and the CATIA model of the containment showed Waterford 3 management the
Follow the Virtual Removal of Waterford 3s Reactor Cooling Pump Motor

John M. Mahoney, innovations leader for
Entergy Nuclear noted that Waterford 3
managers have determined that tying
their long-range asset replacement planning process to the use of laser scanning
and 3-D simulations is an ingenious way to
be more efficient and cost-effective in the
detailed engineering and project planning
of plant life-cycle management. Plant
lifecycle management is the power-andprocess counterpart to product life-cycle

management as it has evolved in engineering design and large-scale manufacturing
such as ship and aircraft building.
The use of this technology during the
planning process reduces overall risk and
improves scenario planning for any major
project, he noted. Scanning and simu-
lation give the engineers an intelligent

model with detailed specifications. Digital data accuracy is within plus or minus a
quarter of an inch, measured over dozens
of feet, and in some cases an eighth of
an inch.
Follow the virtual removal of Waterford
3s reactor cooling pump in this series of
frames taken from the 3-D simulation.
2. Tight fit.
This 3-D model of the Waterford 3 containment building with its roof
removed was built in CATIA from Dassault
Systmes. The compact arrangement of
the equipment illustrates the challenge
in removing a 9,700-hp motor through
the access hatch in the containment vessel. Courtesy: Entergy, BCP Engineers &
Consultants, and Dassault Systmes Industry Services
3. Heavy lift.
Workers are preparing to

remove the reactor coolant pump motor inside the Waterford 3 nuclear power plants
containment building. The model was created with modeling and simulation in DELMIA
DPM Assembly. Tight clearances are clear.
The human figure (bottom center) gives a
craftspersons perspective when moving the
57-ton motor. Courtesy: Entergy, BCP Engineers & Consultants, and Dassault Systmes
Industry Services
4. Watch for interferences.
5. Thread the needle. Here the reactor coolant pump motor is being lowered to
the floor of the Waterford 3 reactor containment building through existing structures.
The motor will then be removed through the
cylindrical port (lower left). Installing the replacement motor follows the same path in
reverse. Courtesy: Entergy, BCP Engineers
& Consultants, and Dassault Systmes Industry Services
6. Finding the right path. This side

view of the motor lift at Waterford 3 shows
the second potential clearance problem in
the containment building: the angle of the
steel structure just to the right of the hoist.
Any unforeseen interference could have added one or even two costly days to the reactor
outage. Courtesy: Entergy, BCP Engineers &
7. On the way out. Finally, the reac-
86
www.powermag.com
One
of two interferences detected by modeling and simulating the task in DELMIA is
the beam structure between the simulated
workers in the yellow hard hats. The motor
(brown and pink, lower center) is about 10
feet in diameter and stands about 20 feet
tall. Courtesy: Entergy, BCP Engineers &
tor coolant pump motor is tilted 90 degrees

in a special fixture and moved into the cylinder port in the reactor containment building. Courtesy: Entergy, BCP Engineers &
POWER November 2009

unforeseen and pointed to ways to plan for
these conditions well in advance of the work
being performed.
The arrival of 3-D PLM is very new to
the commercial nuclear industry, said Darrel
Turner, BCP project manager for Waterford
3. Much of our ability at BCP to introduce
PLM, scanning, and simulation is due to the
fact that DS [Dassault Systmes] offers very
effective technologies.
Mahoney cited three examples of how this
project will reduce project risk by focusing
on ways to make sure all nuclear plant operations stay on schedule and within budget:
Evaluating several options for plants that

combine systems for radiation worker
protection with scenario planning for outages and physical security. These simulations are being assessed by Entergys New
Nuclear Work Group, along with new
systems for 3-D document management
and configuration management for future
plants. Industrial safety and radiological
safety are also enhanced by laser scanning
data, and using 3-D PLM allows for predetermination of hazards in workspaces,
he pointed out. These simulations help us
identify any constraints that might hinder
worker performance.
Developing operational and engineering databases with 3-D PLM to track and
manage all changes, starting with Waterford 3. Modifications of the plant as it was
designed, as it was built, and as it has been
maintained are being documented with
plant lifecycle management. File-based
data management systems will be phased
out as Dassault Systmes ENOVIA is
implemented.
Taking longer-term risk mitigation company-wide. It is not far-fetched to link
the use of this 3-D technology to a plants
asset management program and longrange planning, Mahoney noted. This
would provide Entergy the opportunity
to continue to effectively shrink outage
schedules through critical path scenario
optimization. This approach has not yet
been widely accepted in the nuclear power
industry, but Entergy is embracing it. We
expect it to re-baseline the expected costs
of modernization projects.
Physical Models Are So 1990s

Mahoney predicted that the significantly
higher cost of custom-built, full-size mockupshundreds of thousands of dollars
apiecewill be a major factor driving the
use of 3-D virtualization. He also pointed
out that mockups do not readily accommodate engineering changes and plant modifications, nor are they easily modified for reuse
in other facilities.
A sheet metal mockup of the motor was
made and moved in and out of containment,
said Gerald Butts, Waterford 3 project manager when the RCP project started. But the
necessary comfort level of really being able
to move the motor was not reached. The 3-D
modeling and simulation gave us an extra
[reassurance] factor we had to have to start
the project.
Many thanks go to John M. Mahoney
PMP (jmahone@entergy.com) innovations
leader, Entergy Nuclear Operations; Chris
Staubus (cls@bcpengineers.com), general
manager of utility services, BCP Engineers
& Consultants; Al Casas (al.casas@3ds
.com), senior consultant, and William Butcher
(william.butcher@3ds.com), director, Worldwide Marketing and Communications, Dassault Systmes; and Ren Pronovost (rene
.pronovost@3ds.com), engineering project
manager, Dassault Systmes Industry Services for their kind assistance in the preparation
of this article.
Jack Thornton (jackt@mindfeed.com)

is a principal in the firm of Mindfeed
Marcomm.
November 2009 POWER
www.powermag.com
87
GENERATING COMPANIES: Plan Now to Join

Professionals at the Worlds Premier Event for the
Why Attend RETECH 2010?

Wind. Solar. Hydro. Ocean. Geothermal. Biomass. Biofuels. Waste.
Whatever your interest, RETECH covers it plus
DISCOVER why renewables should be part of a balanced delivery portfolio.

GET answers to your pressing questions on how renewables can help meet electricity demand.
Customize your own agenda from 40+ sessions on the hottest topics.
Hear key issues impacting renewable energy policy in Washington.
See more than 250 exhibitors showcasing the latest products and services.
Connect with investors in renewable energy technologies and products.
Learn how to access renewable energy stimulus capital.
Meet face-to-face with the leaders who are shaping the market in the U.S. and abroad.
Save your company time and money by attending the one event that covers all renewables.
February 35, 2010
Washington Convention Center | Washington D.C.
3,500 Government, Business and Technology

Renewable Energy Technology Industry
RETECH 2010 Business Conference:

Six High-Value Tracks with Ideas, Insights and Info Power
Producers Can Use Immediately
Strategic Issues Track
State and Locals Track
The Strategic Issues Track will analyze key challenges

being faced by the renewable energy industry both in
the United States and abroad. Session topics will include
Transportation, National Security, Climate Change/
Environment, Utility/Transmission, Energy Supply,
Investment/Economic Development.
The State and Local Government Agency track will feature

briefings from the state and local level. Governors, Energy
Advisors and other key players working with economic
and renewable project development, industrials and job
development.
Industry Leadership/CEO Track
The International Track will focus on the countries/regions

that are moving renewable energy into the mainstream
through national, sub-national, economic, political or
trade mechanisms. Country briefings will be conducted
by panels led by corporations and government leaders
from China, Germany, India, Japan, Scandinavia (Denmark,
Norway, Sweden), Spain, and the Commonwealth
(Australia, Canada, New Zealand, United Kingdom).
The Industry Leadership/CEO Track will highlight the top

corporate CEOs, Chairmen, Presidents and additional
industry leaders in the renewable energy industry who will
give their outlook on the state of renewable energy trade,
policy and finance, both on a domestic and global scale.
Industry leaders will, in addition, speak to the innovative,
comprehensive and entrepreneurial strategies behind the
sustained growth of the renewable energy industry.
Federal Agencies Track

The Federal Agencies track will feature briefings from
Government Agencies, Departments, and Programs that
have been key players in working under the Obama
Administration to assist in the development, financing and
scale up of renewable energy.
International Track
University, Laboratory and R&D Track

The University, Laboratory, and R&D Track will cover
important advances in research and development
conducted by premier universities, laboratories and
government programs that are aiding in the evolution
of the technology behind the renewable energy
revolution. Featured speakers will come from both US and
International facilities and institutions of higher learning.
Power Plant Owners/Operators and Project Developers:

Save $$$ - Register by December 18th for the BEST RATES at www.retech2010.com
using VIP code POWER for the #1 All-Renewable Energy Event
FUELS
New Nuclear Plants Are

on the Horizon
Most of the big utilities, with an eye to ensuring a good mix of future generation
resources, have a new nuclear plant in development. Even though federal
loan guarantees are slow to materialize and financing these multi-billiondollar projects has become a bet-the-company investment, the NRC has
more than 40 applications from generators that continue to believe in the
future of nuclear power.
By Britt Burt, Industrial Info Resources
ew nuclear power plants may be

the solution to diversifying the
fuel mix used in U.S. power generation and providing affordable clean
energy. Currently, nuclear generation supplies about 20% of Americas electricity.
Although nuclear plants are more expensive to build than coal plants (taking into
account the costs of licensing, decommissioning, and waste disposal), nuclear fuel
is half the price of coal, so the plants total
production costs are about the same. Of
course, nuclear plants emit no CO 2 and
new nuclear power generating units across

the U.S. Overall, applications received to
date represent 44,000 MW and more than
$300 billion of investment if all were built.
This total capacity includes two projects
that have fallen by the wayside: Ameren
Corp. cancelled plans for a 1,600-MW
addition at the Callaway Nuclear Station,
and Entergy Corp. has placed plans to add
1,550 MW to the companys River Bend
Station on indefinite hold.
Apart from new nuclear generating units
being proposed, Tennessee Valley Author-
Given the length of the early site

permitting and COL processes, the earliest
construction date for any of the proposed
projects is expected to be 2012.
could help the U.S. reduce greenhouse gas
emissions.
Although the Energy Policy Act of 2005
included tax incentives and loan guarantees for up to 6,000 MW of new nuclear
capacity, little has been offered by the
current administration to encourage development of new nuclear generation. The
most substantive forward move to date has
been the Nuclear Regulatory Commission
(NRC) streamlining the lengthy processes
for permitting and licensing new reactors
by creating a new system for issuing early
site permits and combined construction
and operating licenses (COLs) and providing advance approval of reactor designs.
Plenty of Plants in the Queue

So far, the NRC has received 22 applications, which, if approved, would add 33
90
ity is completing the 1,220-MW Watts Bar

Unit 2 in Tennessee. Completion of this
project is scheduled for 2012.
Overall, Industrial Info Resources has
identified 39 new nuclear generating units,
capable of producing 55,000 MW, that
have been proposed across the U.S. This
total includes the previously mentioned
reactors, for which applications have been
submitted.
Of the projects under review by the
NRC, seven (for a total of 14 units) are
planning to use Westinghouse Electric
Co.s AP1000 two-loop pressurized water
reactor, including Duke Energys William
Lee Nuclear Station in South Carolina and
FPL Groups Turkey Point project in Florida. So far, six of the projects under review
are proposing to use one of two reactors
designed by General Electric Co., includwww.powermag.com
ing the two units proposed at NRG Energy

Inc.s South Texas Nuclear Station, which
will use Advanced Boiling Water Reactors,
and five units that are proposing to use
GEs Economic Simplified Boiling Water Reactor. Six other projects (six units)
are plan to use AREVA NPs European
Pressurized Reactor, and one project (two
units) is proposing the use of Mitsubishi
Heavy Industries US-APWR design.
Of the 55,000 MW of nuclear capacity being proposed in the U.S., 23 generating units and 33,000 MW of capacity
are expansions to existing stations, while
16 units and 22,000 MW are planned as
part of greenfield power stations. Given
the length of the early site permitting and
COL processes, the earliest construction
date for any of the proposed projects is expected to be 2012. Many of these are anticipated to fall victim to financing hurdles,
not-in-my-back yard activity, and permitting constraints.
Until timetables are firmed up and financing issues are resolved, the U.S. nuclear industry will have to be satisfied with
incremental uprates to exising plant capacities. Currently, 12 such upgrade projects
are in the works, representing over $600
million in capital expenditures.
Although the amount of new nuclear
power generation that actually moves
forward in the U.S. remains to be seen,
it seems likely that building a significant
number of new units in the next two decades will be necessary to meet increased
demand.
Britt Burt (bburt@industrialinfo.com) is

vice president, power industry for Industrial
Info Resources. IIR (www.industrialinfo
.com) is a leading provider of global market
intelligence specializing in the industrial
process, heavy manufacturing,
and energy-related markets.
POWER November 2009
Where Does the Industry

Find Its Best People?
POWER magazine has served the generation industry for more than 125 years. Now POWER is making
it easier than ever for industry professionals to find career opportunities and for hiring authorities to
find the best candidates for open positions. The Careers-in-POWER job board on powermag.com allows
visitors to post resumes anonymously, view the latest job positions, post job listings, and set up personal
job alerts.
JOB SEEKERS:
Access the most recent positions available to engineers, operations and maintenance managers, and
corporate and general managers at coal, nuclear, combined-cycle, and alternative power facilities.
EMPLOYERS/RECRUITERS:
Attract highly qualified candidates by posting open positions on the Careers-in-POWER job center.
Visit Careers-in-POWER on powermag.com to become part of the fastest growing site dedicated to
connecting power generation employers and employees. Contact: Diane Hammes at dianeh@powermag.com;
832-242-1969.
www.CAREERSinPOWER.com
nuclear
Plant Vogtle Leads the Next

Nuclear Generation
In August 2009, the Nuclear Regulatory Commission (NRC) issued its fourth
Early Site Permit for two new units at Southern Nuclears Vogtle site and
its first for the Westinghouse AP1000 pressurized water reactor design.
The two new units planned for Vogtle also became the reference plant for
the AP1000 under NuStart in June 2009. This means Vogtle Units 3 and 4
will be the first licensed installations of the new AP1000 reactor design in
the U.S. Plant Vogtle is expected to get the NRCs approval to begin construction in 2011.
By James M. Hylko
he Alvin W. Vogtle Electric Generation

Plant (Plant Vogtle) is one of Georgia Powers two nuclear facilities and
one of three nuclear facilities in the Southern Company system (Figure 1). Southern
Nuclear, a subsidiary of Southern Company
since 1990, is the licensed operator of Plant
Vogtle, which is located about 25 miles south
of Augusta, Ga. The plant is jointly owned by
Georgia Power (45.7%), Oglethorpe Power
Corp. (30%), Municipal Electric Authority
of Georgia (22.7%), and the Dalton Utilities
(1.6%). Units 1 and 2 consist of Westinghouse
four-loop pressurized water reactors (PWRs)
rated at 1,109 and 1,127 MW respectively.
Unit 1 began commercial operation in 1987;
Unit 2 followed in 1989.
David Jones, site vice president for Plant
Vogtles planned Units 3 and 4, is responsible for construction and operation of the new
units. Jones recently talked with POWER
about the need for additional baseload capacity in the southeastern U.S. Based on the statistical data from the Department of Energy,
40% of the U.S. population will be living in
the southeastern U.S., and the state of Georgia alone is expected to grow by 4 million
people, by 2030. Over the last 13 years, average residential consumption in Georgia rose
approximately 16%. Over the next 15 years,
electrical demand on the Georgia Power system is projected to grow 30%. The demand
for electricity is going to be there, so we
needed to develop a reliable baseload source
of energy for our customers. The construction of Units 3 and 4 at Plant Vogtle is one
way Southern Co. anticipates meeting the rising demand for electricity (Figure 2).
Jones added that each component of Southern Co.s energy portfolionuclear, fossil,
and renewablesis equally important. However, the long-range generation planning
92
1. Peach of a plant. The Alvin W. Vogtle Electric Generation Plant is located on a 3,100acre site along the Savannah River, 25 miles south of Augusta. Its two units entered commercial
service in the late 1980s and together produce over 2,200 MW. Courtesy: NRC
2. Twins. Southern Nuclear is moving forward with plans to build two new AP1000 Generation
III+ nuclear reactors at Plant Vogtle. The two new plants are expected to enter commercial service
in 2016 and 2017. This artists concept drawing illustrates the placement of the two new units in
the foreground with the two existing units in the background. Courtesy: Southern Nuclear
www.powermag.com
POWER November 2009
Bechtel Nuclear: Building on the Past

Powering
the Future
Bechtel Nuclear:
Building on the Past
Powering
the Future
Bechtel Power has been the active world leader in the nuclear industry for more than 60 years with
more than 74,000 MW of nuclear design, construction and operating plant support experience. We
Bechtel
Powerand/or
has been
themore
active
world
the nuclear
more
thanStates
60 years
have
designed
built
than
halfleader
of the in
nuclear
powerindustry
plants inforthe
United
andwith
150
more
than
74,000
MWworldwide.
of nuclear design, construction and operating plant support experience. We
nuclear
power
plants
have designed and/or built more than half of the nuclear power plants in the United States and 150
Today, we are leading the nuclear renaissance in the United States. From plant restarts and
nuclear power plants worldwide.
completions to steam generator replacements and extended power uprates, were helping
Today, we get
are the
leading
renaissance
in the
From
restarts
and
customers
mostthe
outnuclear
of existing
assets. We
alsoUnited
offer aStates.
full range
of plant
services
for newcompletions
to steam
generator
were
helping
generation nuclear
plants,
includingreplacements
construction and
and extended
operating power
license uprates,
applications,
EPC,
and
customers
get
the
most
out
of
existing
assets.
We
also
offer
a
full
range
of
services
for
newowners engineer/program management.
generation nuclear plants, including construction and operating license applications, EPC, and
owners
engineer/program
management.
B
echtel
Power
Frederick, Maryland, USA
B
Sanechtel
Francisco Power
London
u
San Francisco
BP_TOWER_POWER_10_09.indd 1
London
u
u
bechtel.com
bechtel.com
New Delhi
Frederick, Maryland, USA
1-800-946-3632
1-800-946-3632
New Delhi
10/6/09 1:42 P
nuclear
Table 1. Timeline for Plant Vogtle Units 3 and 4. Source: Southern Nuclear
Date
Stage
August 2006
Filed early site permit (ESP) application
August 2007
Filed limited work authorization (LWA) application
March 2008
Filed combined construction permit and operating license (COL) application
April 2008
Signed contract with Westinghouse-Shaw consortium
March 2009
Georgia Public Service Commission certifies Units 3 & 4
April 2009
Full notice to proceed issued to Shaw for site clearing and preparation
Summer 2009
Excavation of reactor area begins
August 2009
NRC issues ESP and LWA
Summer 2011
NRC decision on COL
2016
Commercial operation for Unit 3
2017
Commercial operation for Unit 4
3. Early site works begins. Displacement in below-grade soil and rock is being moni-
tored using an integrated system of highly accurate Geokon extensometers, displacement transducers, and pore pressure transducers. Other applications of this instrumentation include the
measurement of ground movements around tunnels and behind retaining walls. Data obtained
from the instrumentation at each monitoring location are collected several times each day and
transmitted on-site by wireless radio from data loggers at each monitoring point, and then transmitted off-site via an IP phone to a central bank of data servers. Courtesy: J.M. Hylko
Commission] to focus their resources on the

differences rather than go over documentation they have already approved.
The goal going forward to a one-step
licensing process and using a standard design, such as the AP1000, is very valuable
to the success of our nuclear power plants,
Jones continued. NuStart is participating in a
cost-sharing program that is part of the Department of Energys Nuclear Power 2010
initiative. The permit time-savings for future
projects could be enormous for adopters of
the AP1000 PWR design in the future.
Southern Companys schedule for the two
new units at Plant Vogtle is reasonable and
achievable (Table 1). The plan to proceed
with building two new units at the Vogtle site
was confirmed after achieving the following
major milestones.
The NRCs renewal of the operating licenses for Units 1 and 2 for an additional 20 years (completed June 2009). The
renewal application was submitted on June

27, 2007. In June 2009, the NRC renewed
the operating licenses for Units 1 and 2 for
an additional 20 years. The new licenses for
Units 1 and 2 will expire on Jan. 16, 2047,
and Feb. 9, 2049, respectively.
The Georgia Public Service Commissions (PSCs) certification, required under Georgia law, that approved building
two new reactors at the Vogtle site
(completed March 2009). The PSC adopt-
process identified nuclear power as the most

cost-effective, reliable, and environmentally
responsible energy source to meet growing
electricity demands in its service territory.
This requirement, plus the continued successful operation of Vogtle Units 1 and 2, were the
primary reasons why nuclear power was chosen for the Vogtle expansion project. From a
company perspective, only 16% of our electricity is generated by nuclear power, and we
wanted to maintain a proper mix of energy
generating solutions. All of that culminated in
choosing nuclear power, Jones added.
Positive Steps Toward Building

Two New Units
The NuStart Energy consortium was originally envisioned to demonstrate the licensing
94
process for obtaining a combined construction and operating license (COL), but it has
evolved into one of the critical success factors
necessary to support the actual deployment
of a new nuclear plant in the U.S. Jones said,
NuStart was very valuable from the standpoint of standardization. The advantage is that
follow-on projects can in the future just reference those portions of the Plant Vogtle project
COL application that contain standard licensing, engineering, technical, quality, and safety
information, and develop their own applications much more efficiently. This alignment
of resources creates a valuable experience
base that can be used in the standardization
of new plant construction and bring new technologies to market in a timely manner. This
process allows the NRC [Nuclear Regulatory
www.powermag.com
ed a motion on March 17, 2009, allowing

Georgia Power to recover the cost of financing the plant during construction. Both
entities will jointly develop mechanisms to
provide shared risk protection to taxpayers
from significant cost overruns. In addition,
the Georgia Senate voted to allow the company to recover its financing costs during
construction of the reactors, thereby saving
customers about $300 million over time.
The PSC agreement set Georgia Powers
portion of the certified cost of each of the
new units at nearly $6.5 billion.
The NRCs issuance of an ESP and
LWA (completed August 2009). Southern
Nuclear had submitted an Early Site Permit

(ESP) application for the Vogtle site to the
NRC on August 15, 2006, and an application
for a Limited Work Authorization (LWA)
on August 16, 2007. (See the sidebar for a
complete explanation of the NRC licensing
process.) The ESP application requested the
NRC to approve a project site adjacent to the
existing Plant Vogtle Units 1 and 2. The ESP
and LWA were approved by the NRC on August 26, 2009. The ESP is valid for 20 years.
The LWA allows a narrow set of construction activities at the site, according to the
NRC. In Southern Nuclears LWA, the company can start construction activities limited
POWER November 2009
nuclear
4. New PWR ready for business. The AP1000, based on the proven performance of
Westinghouse-designed PWRs, is an advanced 1,154-MWe nuclear power plant that uses the
forces of nature and simplicity of design to enhance plant safety and operations and reduce
construction costs. Source: Westinghouse
Containment shield building

Fuel-handling area
(auxiliary building)
Auxiliary building
Turbine building
Annex building
Radwaste building
Annex
building
Diesel
generator building
to the placement of engineered backfill, retaining walls, lean concrete, mudmats, and a
waterproof membrane (Figure 3).
On August 26, 2009, the NRC issued an
ESP for the two new units at the Vogtle site.
Southern Nuclears ESP is the fourth such
permit approved by the NRC but the first
based on a specific technology: the Westinghouse AP1000 PWR (Figure 4).
Although the ESP, LWA, and COL processes can be combined, Southern Nuclear
decided to treat each process separately.
Jones explained: We chose to do this in
order to manage our construction and licensing schedules concurrently. Also, there
are certain types of construction activities
that can be performed prior to receiving
NRC approval. For example, workers have
been proceeding with excavation activities
for Unit 3, which are expected to continue
through February 2010. The excavation will
consist of a hole about 90 feet deep, several
hundred feet wide, covering about 42 total
Improving the Nuclear Plant Licensing Process

The Nuclear Regulatory Commission (NRC) is responsible for licensing and regulating commercial nuclear plants in the U.S. The current fleet of nuclear plants was licensed under a two-step process
requiring both a construction permit and an operating license.
Beginning in 1989, the NRC promulgated a complementary licensing process that incorporates three fundamental elements:
Early Site Permits (ESP), Standard Design Certifications, and Combined Licenses (that is, a combined construction permit and operating license, or COL) to improve regulatory efficiency and add
greater predictability to the licensing process.
Site Permits. The applicant can evaluate future nuclear
plant site-related issues (such as safety, environmental protection, and emergency preparedness) for NRC approval that is independent of a construction permit, COL, or specific nuclear plant
design. Because the NRC considers public involvement to be a
cornerstone of strong, fair regulation of the nuclear industry,
it issues a Federal Register notice for a mandatory public hearing after the NRC staff and the Advisory Committee on Reactor
Safeguards (ACRS) complete their safety reviews. Once approved,
the ESP is initially valid for no less than 10 and no more than 20
years, and can be renewed for 10 to 20 years. In addition to the
ESP, the applicant may seek approval for a Limited Work Authorization (LWA) to perform site preparation activities in advance
of issuance of a COL.
Standard Design Certifications. The NRC may approve and certify a
standard nuclear plant design through a rulemaking, independent
of a specific site. The level of detail in the application, equivalent
to a Final Safety Analysis Report for an operating nuclear plant,
must be sufficient to enable the NRC to reach a final conclusion
on all safety questions associated with the design, with the exception of site-specific design features such as intake structures
and the ultimate heat sink. The ACRS reviews each application for
Early
November 2009 POWER
certification, together with the NRC staffs safety evaluation report, in a public meeting. Upon determining that the application
meets the relevant standards and requirements, the commission
drafts a rule to issue the standard design certification that is
valid for 15 years. The NRC can grant a renewal for another 10 to
15 years.
Combined Licenses. The COL is a one-step licensing process designed to reduce regulatory uncertainty through which the NRC
approves and issues a license to construct and operate a new
nuclear power plant. The COL must contain the same information as was required for a construction permit under the old
two-step process. Then, not less than 180 days before the date
scheduled for initial fuel loading, the NRC will publish a notice of intended operation of the facility in the Federal Register.
There is an opportunity for a hearing at this time. However, the
NRC will consider petitions for a hearing only if the petitioner
demonstrates that the licensee has not completed required inspections, tests, and analyses, or will not meet the acceptance
criteria that are necessary to provide reasonable assurance that
the plant has been constructed and will be operated in conformity with the license and applicable regulations. The NRC
then authorizes operation of the plant after verifying that the
licensee has met the required acceptance criteria. A combined
license is issued for a specified period not to exceed 40 years.
The COL application may incorporate by reference a standard
design certification, an ESP, both, or neither. The advantage of
this approach is that the issues resolved during the design certification rulemaking and the ESP hearing processes are excluded
from reconsideration later, at the COL stage. However, if an ESP
and design certification are not referenced, then the NRC reviews
the technical and environmental information as described for the
two-step licensing process.
www.powermag.com
95
nuclear
5. Inherently safe design. The inherent passive safety of the AP1000 derives from its
modular construction design, which has fewer pumps and valves than the typical plant operating in the U.S. today. This increases reliability and reduces maintenance and operating costs.
Source: Westinghouse
100
90
80
70
60
50
40
30
The AP1000 Is NRC-Certified
20
10
0
50% fewer 35% fewer 80% less

valves
safety grade pipe
pumps
45% less
seismic building
volume
85% less
cable
Table 2. Typical breakdown of AP1000 modules. Source: Westinghouse

Mechanical
equipment modules
Structural modules
Piping modules
Containment
41
20
12
73
Auxiliary building
42
34
29
105
Total
88
Turbine building
29
45
14
Annex building
10
NA
NA
10
Total modules
122
99
55
276
Note: NA = not applicable.
acres. More than four million cubic yards of

soil will be removed from the excavation.
Once the existing soil is removed, backfill
and compaction activities must be approved
and monitored by the NRC.
The NRC Issues a COL (pending
scheduled for mid-2011). On March 31,
2008, Southern Nuclear filed an application with the NRC for a COL. The NRC has
scheduled completion of the Vogtle final
safety evaluation report in April 2011. Southern Nuclear expects to receive its COL later
in 2011 and then immediately begin safetyrelated construction.
NuStart is working with Southern Company toward demonstrating the nations new
process for licensing a nuclear power plant.
For instance, Vogtle recently became the reference plant for the AP1000 under NuStart
in June 2009. What this means is that Vogtle
Units 3 and 4 will be the first to implement
the NRC-approved AP1000 technology, and
the Vogtle license application will serve as
the reference COL.
96
Southern Nuclear has signed an engineering, procurement, and construction (EPC)

contract with the consortium of Shaw and
Westinghouse for Units 3 and 4.
Its worth noting that ESP, LWA, and COL
processes are not unique to Vogtle Units 3
and 4; the NRC reports that 17 companies
have submitted COL applications for up to 26
new nuclear reactors as of July 2009. Some
of the earlier applicants in this process are
also signing EPC contracts. As at the Vogtle
site, other companies looking at new nuclear
construction are conducting site preparation
work such as land clearing, soil testing, and
access road construction in anticipation of
constructing new nuclear power plants.
The licensing process and our timeline

to have our new units operating by 2016
and 2017 were key contributors for selecting
the AP1000, said Jones. He added that this
timeline is reasonable because the NRC staff
has provided Southern Nuclear with schedules or milestone dates as to when it expects
to complete its reviews of a particular licensing submittal.
Commenting on the upcoming regulatory
oversight, Jones noted, We will have an
NRC resident inspector on site once we begin the safety-related scope of work scheduled to begin first or second quarter of 2010.
For now, the licensing organization within
Southern Nuclear is corresponding primarily with the NRC headquarters staff in Washington. We have had a couple of meetings
with the Region II staff in Atlanta, Ga., in
order for them to adjust their resources, to
make sure they can be on-site at the proper
time to perform their necessary inspections,
and be ready and support key construction
milestone dates.
www.powermag.com
Although no new nuclear plants have been

ordered in the U.S. in 30 years, the major
designers and manufacturers of these plants
have continued to improve and refine designs,
building several evolutions of successful designs in foreign countries. Westinghouse
submitted the Standard Design Certification
Application for its AP1000 reactor design on
March 28, 2002. The NRC issued a final rule
in the Federal Register certifying the Generation III+ design on January 27, 2006, and
it remains the only Generation III+ reactor
certified to date. Additionally, the European
Utility Requirements organization certified
that the AP1000 can be deployed in Europe.
China is currently building multiple AP1000
reactors; its first unit is scheduled to be online by 2013.
The AP1000 has been designed to make
use of modern, modular construction techniques (Figure 5). The design incorporates
vendor-designed skids, equipment packages, and large multi-ton structural modules,
as shown in Table 2. Welding and fabrication activities are performed in a factory
environment, which improves working
conditions and scheduling flexibility while
reducing the special tools and equipment
needed on-site. Furthermore, modularization allows construction tasks that were
traditionally performed in sequence to
be completed in parallel, thus reducing
capital costs and shortening construction
schedules to approximately 36 months
from the pouring of first concrete to the
loading of fuel.
Principal Building Structures

The AP1000 plant is arranged with five
principal structuresnuclear island, turbine
building, annex building, diesel generator
building, and radwaste buildingeach on its
own base mat (Figure 6).
The nuclear island consists of a freestanding steel containment building, a
POWER November 2009
nuclear
6. Reduced construction required. The AP1000 plant arrangement consists of five principal building structures: the nuclear island, the
turbine building, the annex building, the diesel generator building, and the radwaste building. Source: Westinghouse
1. Shield/containment
2. Auxiliary building
3. Fuel area
4. Diesel generators
5. Service water pumphouse
6. Emergency fuel oil storage
7. Refueling water storage tank
8. Demineralizer/potable water plant
9. Condensate storage tank
10. Radwaste building
11. Annex building
Note: Darker areas shown are Seismic I category buildings
concrete shield building, and an auxiliary

building. These are the only Seismic Category I structures required with the AP1000
design. The foundation for the nuclear island is an integral base mat that supports
these buildings.
The safety-related equipment designed
to perform accident mitigation functions
is located on the nuclear island. Therefore,
the nuclear island structures are designed to
withstand the effects of natural phenomena
such as hurricanes, floods, tornados, tsunamis, and earthquakes, as well as the effects
of postulated internal events such as fires and
flooding, without loss of capability to perform safety functions.
To preclude adverse interactions, the plant
arrangement provides for separation between
safety-related and non-safety-related systems
and equipment. This separation is provided
by partitioning an area with concrete walls
and provides confidence that the safety design functions can be performed. The remaining nonseismic structures do not contain any
safety-related equipment.
Passive Safety-Related Systems

The AP1000s passive safety systems include
the passive core cooling system, containment
isolation, passive containment cooling system, and the main control room emergency
habitability system.
A major safety advantage of passive plants
is that long-term accident mitigation is maintained without operator action or reliance on
off-site or on-site AC power. Instead of relying on active components, the AP1000 relies
on natural circulation to keep the core and
containment from overheating. For example,
in the event of a design-basis accident, such
as a coolant pipe break, the plant is designed
to achieve and maintain safe shutdown conditions. To provide high reliability, these systems are designed to move to their safeguard
positions upon loss of power or upon receipt
November 2009 POWER
of a safeguards actuation signalthat is, a

single move powered by multiple, reliable
Class 1E DC batteries.
The passive safety system design does not
require the large network of active safetygrade support systems (such as AC power,
diesel generators, and HVAC) that are needed
in a typical nuclear plant. Therefore, less Seismic Category I building volume is required
to house the safety equipment, resulting in an
approximately 45% smaller footprint compared to an existing nuclear power plant with
the same generating capability. This provides
a large capital cost savings, as seismic structures cost roughly three times as much as
nonseismic structures.
The AP1000 uses extensively analyzed
and tested passive systems to improve the
defense-in-depth safety of the plant. The
ACRS and the NRC have scrutinized these
systems and ruled that they meet all the required criteria.
These defense-in-depth capabilities for
accident mitigation result in extremely low
core-damage probabilities while minimizing occurrences of containment flooding,
pressurization, and heat-up. For example,
the AP1000s probabilistic risk assessment
(PRA) core damage frequency (CDF) is 1/100
of the CDF of currently operating plants and
1/20 of the maximum CDF deemed acceptable for new, advanced reactor designs.
The AP1000 is designed to mitigate a postulated severe accident such as core melt. Additional features and improvements include
the absence of bottom-mounted in-core instrumentation and a lack of vessel penetrations below the top of the core. Having the
core lower in the reactor vessel minimizes
core temperature excursions during loss-ofcoolant accidents. The AP1000 operator can
flood the reactor cavity space immediately,
thereby surrounding the reactor vessel with
water. The cooling is sufficient to prevent
molten core debris in the lower head from
www.powermag.com
melting the steel vessel wall and spilling into

the containment.
Improved Operations and

Maintenance Efficiencies
Operating U.S. nuclear plants are already
competitive producers of electricity compared with coal-fired plants. They also have
the advantage that fuel accounts for about
25% of production costs for nuclear power,
while the remaining 75% is for fixed costs
of operation and maintenance. Therefore,
nuclear power production is much less sensitive to changes in fuel costs than fossil-fueled
plants, where fuel can account for 75% or
more of the production costs.
As an added benefit, the AP1000 reactor has several design features that improve
plant production, enhance worker safety, and
reduce costs:
The modular plant design and component

standardization ensures a high degree of
reliability, requiring significantly reduced
maintenance, staging, and testing and inspection requirements.
An 18-month fuel cycle results in improved
availability and reduced overall fuel costs.
Radiation exposure and the volume of
generated plant radwaste are reduced.
A 60-year design life.
Competitors in the race to build the next

generation of U.S. nuclear plants may be slow
out of the blocks, but we expect the level of
activity will accelerate in 2010 as companies
that are serious about constructing Generation III+ reactors ramp up staff and on-site
construction presence in preparation for a
full construction release in 20112013. We
expect Plant Vogtle to be the first of the next
generation of nuclear plants to enter commercial service during 2016.
James M. Hylko (jhylko1@msn.com) is

a POWER contributing editor.
97
NUCLEAR
Modularizing Containment Vessels

in New Nuclear Power Plants
Using modularization in the construction of nuclear containment vessels can
be one way to control both cost and schedule when building the next generation of U.S. nuclear power plants. Although the advantages of modularization can be significant, each new reactor design and plant site poses
unique construction challenges and must be individually analyzed to determine the benefits of this approach.
By Lee Presley and Barbara Weber, CB&I
or currently operating U.S. nuclear plants,

the average construction period was 9.3
years; the longest was 23.5 years. In Japan, close attention to modularization and construction sequencing has reduced construction
times for the ABWR reactor design. In fact,
units in Japan have been constructed in less
than four years! One of the secrets to this speed
was using modular construction techniques.
Standardization is the key to controlling
both cost and schedule in building the next
generation of nuclear power plants in the
U.S.: standardized designs, standardized
construction techniques, standardized equipment, and standardized plant layouts.
Once designs, details, plans, and procedures
for the first unit are completed, they can be reused, enabling subsequent units to be built at
a lower cost. Additionally, the learning curve
for fabrication, construction, and project management decreases with each unit built, which
improves the schedule for subsequent units.
1. Prefabricating rings. Construction pads located adjacent to a project site are used for
prefabricating containment vessel sections. Courtesy: CB&I
How Modular
Construction Works
One construction methodology that works particularly well with this standardized approach is
modularization. By definition, modularization
is the process of engineering and fabricating
construction projects into shippable packages
or segments that can be installed economically
at the job site. The task of fabricating and assembling these segments can be carried out in
a shop environment or on a nearby construction
pad, if on-site space is available (Figure 1).
There is precedent for modularizing components and systems of nuclear plants. Containment vesselsthe leak-tight steel structures
used to enclose the reactor and contain any
radioactive release in the event of an accidentare particularly well suited for modular
construction. Because of the shape of the vessels, they can be fabricated in large rings or
panels and then lifted one on top of the other
to assemble the structure (Figure 2).
98
CB&I used this technique in the construction of nuclear containment vessels built from
the 1950s to the 1980s, although it was not
called modularization at that time. Construction pads were built adjacent to the nuclear
island. Large pieces were assembled on these
pads and then lifted into final position. A number of countries have used these techniques
since that time, most notably Japan, where
modular construction techniques have been
enhanced to include structural segments that
include mechanical components, piping, and
electrical and control wiring.
2. Lifting rings. A containment module

is lifted from the construction pad.
Courtesy: CB&I
Benefits of Modularization
In addition to the benefits of standardization,
modularization can provide advantages of its
own. Space on the job site remains an imporwww.powermag.com
POWER November 2009
nuclear
3. Stacking rings. A modularized ring of a containment vessel is set on the nuclear island
containment vessel. Courtesy: CB&I
motely no longer compete for the same space

at the same time.
Minimizing safety risks is another way
modularization can benefit nuclear construction. Building modules in a shop environment
does not automatically make construction
safer. However, using modularization can enhance safety in a number of ways. Off-site
construction limits the number of people trying to perform different activities in the same
space. Less traffic in a congested area reduces
safety risks. Safety can also be enhanced by
the greater control of variables thats inherent
in a shop environment and by minimizing the
amount of elevated work performed.
Additionally, all of the fabrication and assembly of building modules is performed in
a controlled shop environment. This reduces
the impact of bad weather and labor shortages. It also provides a greater degree of quality
assurance and quality control, which is critical in building nuclear power plants.
Evaluating Modular Construction

as an Option
tant consideration. When the currently operating nuclear plants were built in the U.S., the
need to have many subcontractors working in
the same small area created numerous coordination challenges for the prime contractor. It
just made sense to do as much of the fabrication as possible away from the crowded activity at the nuclear island. When portions of a
plant are modularized, either in a shop or on a
nearby construction pad, the portions built re-
Using modularization for constructing containment vessels has many advantages, but
it is not the solution for every situation. For
all the advantages of modularization, this
technique does not guarantee lower cost or
Constructability Starts Here
Squirter DTIs
applied
bolting
the best way to bolt!

TRAINING FIELD SUPPORT TECHNICAL EXPERTISE
email: info@appliedbolting.com
November 2009 POWER
TECHNOLOGY
1 802 460 3100
ht t p: //w w w. app l i e d b ol t i n g. c o m
1 800 552 1999
1413 Rockingham Rd. Bellows Falls, VT 05101 USA

www.powermag.com
99
Nuclear
a shorter schedule. Each new project must be
evaluated individually to determine whether
the advantages of modularization can be used
to reduce cost and shorten the schedule.
At times, modular construction may not be an
option. But whenever modularization is considered for a construction project, a complete analysis must be performed and a number of factors
must be evaluated, such as those that follow.
Site evaluation. How much space is
available for on-site construction? The more
congested the site, the more desirable modularization becomes.
Site access. What transportation options are
available for accessing the plant via truck, rail,
or barge? Certainly, barge access provides the
optimal situation for modularization. If both the
shop and the plant are connected via a waterway, enormous modules can be fabricated in the
shop, shipped to the plant, and lifted into place.
If barge access isnt an option, the size of the
modules will need to be orders of magnitude
smaller to ship by truck or rail. Nevertheless,
these modules are still quite large and require
careful planning to transport, as permits for using roadways and bridges must be obtained.
Module lifting. What is the lifting capacity
at the site? Large, heavy modules that are constructed in a shop or on a nearby construction
pad must be lifted into place. Ideally, if a con-
struction pad is used, it is best to have a crane

that can access both the construction pad and
the area where the finished containment vessel will be placed on-site. As each piece of the
vessel is assembled, the crane lifts it into place.
If modules are shipped via truck, rail, or barge,
appropriate lifting capacity must be available
to lift the pieces into place (Figure 3).
On-site transportation. What space is
available to transport the modules from one
part of the site to another? If the modules
are built on a construction pad and need to
be transported to the nuclear island, a path as
wide as the unit must be available.
Cost savings. Can you save money by
modularizing the containment vessel? The
answer to this question varies, depending on
the considerations just discussed. Modularization increases the amount of engineering that
must be performed, as each module must be
designed to be safely transported. A framework for transporting and lifting the modules
must be engineered along with the unit itself,
increasing both engineering and material cost.
On the other hand, modularization can reduce
the schedule, and schedule reductions, in turn,
can reduce the cost of construction.
If You Choose Modularization

Although all five of the next-generation nuclear
power plant concepts in the U.S. include standardized designs and support modularization of
the containment vessels, careful analysis will
be necessary for each individual project to determine if modularization is the best approach.
If modularization is used, that decision must be
made early to realize optimal benefits.
Engineering of the modules must be done
early in the engineering phase so that all the
details of transporting and lifting the modules
can be considered and planned. Tolerances
for containment construction are critical and
must be established during the design phase.
If due consideration is not given during the
design phase, the erected modules could conceivably not match up to the piping and other
connections.
Additionally, all of the parties must be involved in developing and coordinating the modularization effort, including owners, nuclear
steam supply system manufacturers, fabricators, erectors, the logistics team, and even the
Nuclear Regulatory Commission, whose staff
will need to perform inspections in an off-site
shopa challenge not encountered during construction of the currently operating facilities.
Lee Presley (lpresley@cbi.com) is vice

president, nuclear operations, and Barbara
Weber (bweber@cbi.com) is senior director, corporate communications for CB&I.
TURNING LEMONS
INTO ORANGE-AID.
The Pre-Cleaner
PERFORMANCE UPGRADE KIT

Without the right blade and tensioner, your belt
cleaners performance is just another hassle.
Introducing the Performance Upgrade Kit. Martin
Engineerings patented TWIST Tensioner with
our most popular Heavy Duty QC #1 blade.
One, universal upgrade package.
All at a price that performs.
Keeping you rolling.
Visit martin-eng.com /upgrade

Call 800.544.2947 | Email info@martin-eng.com
Registered trademark of Martin Engineering Company in the US and other select locations.
2009 Martin Engineering Company. Additional information can be obtained at www.martin-eng.com/trademarks.

100
www.powermag.com
POWER November 2009
new products
to power Your BusIness
Ethernet-Accessible Power Meter
Electro Industries designed the Shark100 meter in response to requests within

the industry for low-cost Ethernet-accessible power meters. Featuring 100BaseT
Ethernet capability utilizing Modbus TCP as its standard protocol, the device
offers a highly economical solution to provide multifunction metering. In
addition to Ethernet TCP/IP, the Shark100 meter is a highly accurate 0.2%
power and energy meter that has been certified to meet IEC and ANSI
class standards. Users can equip the instrument with either an RS485 or
the 100BaseT Ethernet communication. The meters applications include
switchboard panel metering, campus metering, utility billing, submetering,
and substation metering. (www.electroind.com)
Flex-Neck Torches Offer Better

Joint Access
To help provide better joint access, Weldcraft offers

several TIG (tungsten inert gas) torches with flex-neck
designs. The companys popular WP-9, WP-17, and
WP-26 Series of air-cooled TIG torches all feature an
optional F (flex-neck) model for welding applications
featuring limited joint access and/or difficult joint
angles. Weldcraft also offers valved versions of each
of these flex-neck torch models for use with power
sources that do not have gas solenoids. All models are
designed to adjust to any angle the welding operator
needs and feature reliable air-cooling capabilities
that eliminate the need and expense of water-cooled
systems. (www.weldcraft.com)
Pneumatic Torque Limiter
Nexen has launched the TL Series, a pneumatically engaged, singleposition torque limiter for improved overload protection for industrial
machinery. The TL Series uses a ball/detent interface and proximity
sensor to immediately disengage the machine shaft when excessive
torque or a machine jam occurs, effectively protecting downstream
equipment and product from damage and decreasing downtime. Upon
detecting the overload condition, the sensor instantly sends a signal to
the torque limiters control valve, exhausting the air and disengaging
the unit for a clean disconnect of power to the driven components.
By using pneumatic actuation, TL Series units facilitate remote
trip-out torque adjustment via an air regulator, allowing operators
to optimize overload protection while the machine is in usethus
eliminating the need for inconvenient onsite adjustments. Each
torque limiters interface has five ball/detents arranged in an
asymmetrical pattern, ensuring that each engagement occurs in
the same position and that machine components are accurately
synchronized. (www.nexengroup.com)
November 2009 POWER
www.powermag.com
101
NEW PRODUCTS
Upgraded Retaining Heads for MIG Welding Guns
Tregaskiss has upgraded the design of its TOUGH LOCK retaining heads so that they
now feature the companys Dual Taper technologya second rear taper between the
gooseneck and the contact tip. This design improves electrical conductivity and heat
dissipation to provide consistent welding performance and extend the life of the TOUGH
LOCK consumables. The upgrade also complements the existing taper design between
the retaining head and contact tip, which helps keep the tip secure, centered, and cool.
Tips are machined with tight tolerances and feature a dual-lead thread design that
allows the tips to be rotated 180 degrees to create a new wear position and extend tip
life. The retaining heads are useable on both semi-automatic and robotic MIG (metal
inert gas) guns. (www.tregaskiss.com/dualtaper)
Ambient Temperature Black Body
Wahl Instruments introduced the Heat Spy Portable Calibration Black

Body, an ambient temperature black body used for single-point calibration
verification and checking of thermal imaging cameras and point infrared
thermometers. The easy-to-use device features an accuracy of 0.3F (0.2C)
over the entire range, and it is housed in a watertight IP67 carrying case.
The Wahl Portable Calibration Black Body is shipped standard with NIST
Traceable Certificate of Calibration, and it carries a two-year warranty on
parts and labor. It also includes a user-replaceable battery with a threeyear operational life. (www.palmerwahl.com)
Conventional and Self-Aligning Rollerbeds
ESAB Welding & Cutting Products announced the addition of conventional and self-aligning rollerbeds to its line of
automated handling equipment products. The durable rollerbeds are grit-blasted with a polyurethane finish coating to
endure abrasive environments. They also feature solidstate inverter technology for precise speed control to
ensure welding accuracy. The rollerbeds are available in
a variety of sizes and driver/idler rail bogie versions for
a broad scope of applications. Depending on the project,
fabricators can choose from conventional rollerbeds with
load capacities from 2.5 tons to 60 tons or selfaligning rollerbeds with load capacities from 2.5 tons
to 50 tons. These workpiece-handling solutions are
ideal for wind tower fabrication and for offshore
and shipyard, pressure vessel, and pipeline work.
(www.esab.com)
Inclusion in New Products does not imply endorsement by POWER magazine.

102
www.powermag.com
POWER November 2009
Power Plant Buyers Mart
POWER PROFESSIONALS
Opportunities in Operations and Maintenance,
Project Engineering and Project Management,
Business and Project Development,
First-line Supervision to Executive Level Positions.
Employer pays fee. Send resumes to:
P.O. Box 87875
Vancouver, WA 98687-7875
email: dwood@powerindustrycareers.com
(360) 260-0979 l (360) 253-5292
www.powerindustrycareers.com
READER SERVICE NUMBER 200
Boiler Cleaning Professionals

Explosive Deslagging Services Camera Assisted On-line Blasting Detonating Cord and Overhead
Hazard Blasting Introducing On-line Video Inspection/Recording of Bundle, Pendant and Wall Deposits
Grit-Blasting Electrostatic Precipitator Field Cleaning UT and Boiler/Vessel Overlay Preparation
On-line Radiant Recovery with Shatter Blast Bead Impact Deslagging
Big Water High Pressure Washing Air Pre-heater Baskets, Furnace + Boiler Washing
Heat Exchanger/Condenser Hydro-Laze, Pipeline Cleaning
Vacuum Services, Wet + Dry Fly Ash, Sludges, Silo + Vessel Evacuation
Number One In Safety and Compliance. Privately Owned and Operated
24/7 Emergency Response From Many US Locations
800-866-6247 www.naisinc.com
e-mail: naisinc@naisinc.com
CONDENSER OR GENERATOR AIR COOLER TUBE PLUGS

THE CONKLIN SHERMAN COMPANY, INC.
Easy to install, saves time and money.

ADJUSTABLE PLUGS - all rubber with brass insert. Expand it,
install it, reverse action for tight fit.
PUSH PULL PLUGS- are all rubber, simply push it in.
Sizes 0.530 O.D. to 2.035 O.D.
Tel: (203) 881-0190 Fax:(203)881-0178
E-mail: Conklin59@aol.com www.conklin-sherman.com
OVER ONE MILLION PLUGS SOLD
SCANNING SERVICES
3D Laser Scanning
Digital Site Survey
As-Built Documentation
gkspowergen.com 734-582-9600
Need Cable? From StoCk
Copper Power to 69kv; Bare ACSR & AAC Conductor;
Underground UD-P & URD, PILC-AEIC; Interlock Armor to
35kv; Copper Instrumentation & Control; Thermocouple
Basic Wire & caBle
Fax (773) 539-3500 Ph. (800) 227-4292

E-Mail: basicwire@basicwire.com
WEB SITE: www.basicwire.com
GEORGE H. BODMAN, INC.

Chemical cleaning advisory services for
boilers and balance of plant systems
George H. Bodman
Pres. / Technical Advisor
BoilerCleaningDoctor.com Office 1-800-286-6069
Office (281) 359-4006

PO Box 5758
E-mail: blrclgdr@aol.com
Kingwood, TX 77325-5758 Fax (281) 359-4225
November 2009 POWER
www.powermag.com
RACK & PINION ELEVATORS

Focus on Safety
Higher Technology
Std & Hazardous Locations
www.towerelevators.com 512-266-6200
103
READER SERVICE NUMBER
Clean Energy Update Drilling Down on

Renewable Regulation and Technology
Clean Energy Update, brought to you by the editors of
The Energy Daily, is the only weekly e-newsletter focusing on the business,
technology and implementation of alternative energy generation. Its
designed for the executives and engineers who are building and planning
new plants, capacity and infrastructure to capitalize on renewable
energy geothermal, wind, hydro, solar and biofuels.
Check us out at www.cleanenergyupdate.info

For advertising opportunities contact Erica Lengermann at
(301) 354-1598 or at elengermann@accessintel.com

104
www.powermag.com
POWER November 2009
POWER PLANT BUYERS MART

FOR SALE/RENT
Solar Taurus 60
24 / 7 EMERGENCY SERVICE
BOILERS
20,000 - 400,000 #/Hr.
/1$+.')'05'65
DIESEL & TURBINE GENERATORS
/9
50 - 25,000 KW
5QNCT/CKPVCKPGF
GEARS & TURBINES
.QY6KOG
25 - 4000 HP
7PKVU
)GP
)GP
#NN0CVWTCN)CU
.QY0QZRRO
/QDKNG2%47)5YKVEJIGCT
*\M8
*\%QPXGTUKQP#XCKNCDNG
WE STOCK LARGE INVENTORIES OF:
"JS1SF)FBUFSTr&DPOPNJ[FSTr%FBFSBUPST
1VNQTr.PUPSTr'VFM0JM)FBUJOH1VNQ4FUT
7BMWFTr5VCFTr$POUSPMTr$PNQSFTTPST
1VMWFSJ[FSTr3FOUBM#PJMFST(FOFSBUPST
847-541-5600
FAX: 847-541-1279
WEB SITE: www.wabashpower.com
wabash
Mid America Engine, Inc.
POWER
EQUIPMENT CO.
444 Carpenter Avenue, Wheeling, IL 60090

PROCESS & MACHINERY

CONTROL
ABB/BAILEY
3&"%&34&37*$&/6.#&3
GET CONNECTED TODAY
INFI90TM/NETWORK90TM
SymphonyTM
FOXBORO
I/A SeriesTM
Cost-effective replacement, repair, and

repair/exchange of hard-to-find DCS parts.
Seawater Chlorinators
ONE YEAR WARRANTY
Titanium Anodes & Cathodes

Electrolyzers / Cells
We also purchase surplus or

decommissioned DCS equipment.
(770)271-9932
www.pmcx.com
662-895-8444 Fax: 662-895-8228

205-590-3505 Fax: 205-590-3885
Wesley: wtuggle@maegen.com
Art: asigler@maegen.com
Greg: gposey@maegen.com
Keith: kcoleman@maegen.com
www.powermag.com
www.tianode.com . info@tianode.com
GEGU's - 750 KW Guascor - natural gas red 3/60/480 volts (Qty 2)
Need a Thorough Mix?

"TI DPBM TMVEHFT XIBUEP:PVOFFEUPNJY
GTGUs - 20 MW Brown Boveri oil red cheap

BOILERS - 200,000#/HR Combustion Engineering
package - 600# steam pressure - gas red
- 25,000#/HR ABCO - 150# steam pressure natural gas and propane red (Qty 4)
We buy and sell transformers, boilers, steam turbine generator units, gas turbine generator units,
EJFTFMFOHJOFHFOFSBUPSVOJUT FUD
*/5&3/"5*0/"-108&3."$)*/&3:$0
50 Public Square - Terminal Tower, Suite 834
Cleveland, OH 44113 U.S.A.
PH 216-621-9514/FAX 216-621-9515
&NBJMLFSOY!TCDHMPCBMOFU8FCXXXJOUMQXSDPN
Get a thorough mix with:
Pugmill Systems, Inc.
P.O. Box 60
Columbia, TN 38402 USA
ph: 931/388-0626 fax: 931/380-0319
www.pugmillsystems.com
TO ADVERTISE IN
POWER
CLASSIFIEDS
CONTACT
DIANE HAMMES
Phone: 713-343-1885
Fax: 832-251-8963
dianeh@powermag.com
3&"%&34&37*$&/6.#&3
November 2009 POWER
www.powermag.com
105
PRODUCT
Showcase
ELIMINATE
VALVE CAVITATION
Place one or more diffusers

downstream of a valve to
eliminate cavitation
Eliminate noise
Eliminate pipe vibration
Reduce valve first costs
Reduce valve maintenance
GPCALCS
THE PERFORMANCE ENGINEERS TOOLBOX
GPCALCS
CALCS
THE PERFORMANCE
ENGINEERS TOOLBOX
Only $595*
Version 6.0
GPcalcs
THE PERFORMANCE
ENGINEERS TOOLBOX
Free
Trial!
Try GPCALCS v6.0 free
for 30 days. If youre not

completely satisfied,
simply uninstall the software.
www.gpworldwide.com/gpcalcs
Cost-effective, industry-standard
performance test procedures and
calculation templates (Excel)
ASME Steam Properties Add-In

(67/97, SI/English)
Real Gas Properties Add-In (EOS Based)
Gas & Steam Properties Calculators
CU SERVICES LLC
For More Information

800.803.6737 716.799.1080
gpcalcs@gpworldwide.com
725 Parkview Cir, Elk Grove, IL 60007

Phone 847-439-2303
RCRONFEL@CUSERVICE.NET
www.cuservices.net
* VISA, MasterCard, AMEX Accepted
GPA-56 Showcase ad_PowerMAG.indd 1
106
www.powermag.com
10/12/09 2:24 PM
POWER November 2009
ADVERTISERS INDEX
Enter reader service numbers on the FREE Product Information Source card in this issue.
Reader Service
Page
Number
A B B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 3 . . . . . . . . . . . . 2
Reader Service
Page
Number
Proyersa Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . . . . . 37
Applied Bolting Technology . . . . . . . . . . . . . . . . . . . . . . 99 . . . . . . . . . . . 57
Rhona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 . . . . . . . . . . . 38
Atlas Copco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 . . . . . . . . . . . 42
Siemens AG E CC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . 12
Babcock and Wilcox . . . . . . . . . . . . . . . . . . . . . . . Cover 4 . . . . . . . . . . . . 3
Siemens Power Generation . . . . . . . . . . . . . . . . . . . . . . 39 . . . . . . . . . . . 22
Baker Concrete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . 16
Soletanche Bachy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 . . . . . . . . . . . 39
bbosch Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 . . . . . . . . . . . 40
Solvay Chemicals Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . 5
Bechtel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 . . . . . . . . . . . . .
South World Consulting . . . . . . . . . . . . . . . . . . . . . . . . . 49 . . . . . . . . . . . 26
Beumer Maschinenfabrik GMBH . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . 11
Superbolt Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 . . . . . . . . . . . 53
CH2M HILL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . 56
Swagelok . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 . . . . . . . . . . . 15
Chromalloy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 . . . . . . . . . . . 23
Transelec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 . . . . . . . . . . . 30
CleaverBrooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 . . . . . . . . . . . 54
Turbine Energy Solutions . . . . . . . . . . . . . . . . . . . . . . . . 87 . . . . . . . . . . . 55
Colbn. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 . . . . . . . . . . . 24
Tusan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 . . . . . . . . . . . 31
Conoco Phillips. . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 2 . . . . . . . . . . . . 1
Two Sockets Two Meters . . . . . . . . . . . . . . . . . . . . . . . . 33 . . . . . . . . . . . 20
DESSAU Ingentra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . . . . . . . . . . 34
U R S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . 18
Doosan Heavy Industries . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . 17
Wrtsil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 . . . . . . . . . . . 43
Edic Ingenieros . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 . . . . . . . . . . . 46
Westinghouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 . . . . . . . . . . . 21
www.abb.com/powergeneration
www.appliedbolting.com
www.atlascopco.cl
www.babcock.com
www.bakerconcrete.com
www.bbosch.cl
www.bechtel.com
www.beumer.com
www.ch2mhill.com/power
www.chromalloy.com
www.cleaverbrooks.com/engineered
www.colbun.cl
www.conocophillipslubricants.com/power
www.dessauingentra.com
www.doosan.com
www.edic.cl
www.proyersa.cl
www.rhona.cl
www.siemens.com/energy
www.siemens.com/energycontrols
www.soletanche-bachy.cl
www.solvair.us
www.swc.cl
www.superbolt.com
www.swagelok.com/training
www.transelec.cl
sales@turbineenergysolutions.com
www.tusan.cl
http://pow.ts-tm.com
www.urscorp.com
www.wartsila.com
www.westinghousenuclear.com
Endesa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 . . . . . . . . . . . 33
www.endesa.cl
GDF Suez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . 32
www.gdfsuez.com
G E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . 6
www.ge-7fa.com
CLASSIFIED ADVERTISING: Pages 103-106.

To place a classified ad, contact: Diane Hammes, POWER
magazine, 713-343-1885, dianeh@powermag.com
Hatch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 . . . . . . . . . . . 25
www.hatch.ca
HidroAysn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 . . . . . . . . . . . 47
www.hidroaysen.cl
Hurst Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . 9
www.hursttech.com
Ingendesa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 . . . . . . . . . . . 41
www.ingendesa.cl
Intergraph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 . . . . . . . . . . . 48
www.intergraph.com/power
Intronica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 . . . . . . . . . . . 29
www.intronica.com
Jeffrey Rader . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . 14
Develop greater corporate awareness and showcase your

featured editorial from this industry respected publication.
www.jeffreyrader.com/pow
Jorpa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 . . . . . . . . . . . 44
www.jorpa.cl
Presentations
Event Collateral
Media Kits
Direct Mail
Online Marketing
Recruiting Packages
KAS Ingeneria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . . . . . 35
www.kasing.cl
Kipreos Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 . . . . . . . . . . . 45
www.kipreos.cl
Ludeca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . 10
www.ludeca.com/centralign
BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY

ZZZSRZHUPDJFRP
9RO1R2FWREHU
Magnetrol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 . . . . . . . . . . . 50
www.magnetrol.com
Mainstream Renewable Power . . . . . . . . . . . . . . . . . . 50 . . . . . . . . . . . 27

www.mainstreamrp.com
Top Plants: Four model coal-fired plants
Martin Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 . . . . . . . . . . . 58

www.martin-eng.com/upgrade
Mas Errzuriz Construcciones S.A.. . . . . . . . . . . . . . . . 52 . . . . . . . . . . . 28

www.maserrazuriz.cl
Membrana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 . . . . . . . . . . . 51
www.liqui-cel.com/industries/power-boiler-feed-water.cfm
Nanosteel Company Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . 13

www.nanosteelco.com
Place your positive press

directly in the hands of
your customers and
associates with custom
reprints from POWER.
Shock therapy KOs boiler fouling

Stop your boiler from sucking air
SS tube specs begin at the mill
Orion Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . 7
www.orioninstruments.com
Paharpur Cooling Towers . . . . . . . . . . . . . . . . . . . . . . . . 76 . . . . . . . . . . . 49

www.paharpur.com
Petro-Valve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 10 . . . . . . . . . . 4, 8
ww.petrovalve.com
Plymouth Tube. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 . . . . . . . . . . . 52
www.plymouth.com
integrated publishing solutions
Power Systems Mfg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 . . . . . . . . . . . 19

www.psm.com
Proingesa Ingeneria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . . . . . 36
800.290.5460 I POWER@theYGSgroup.com
The YGS Group is the authorized provider of custom reprint products from POWER.
www.proingesa.cl
November 2009 POWER
www.powermag.com
107
Commentary
The New Nuclear

Fuel Market
By Thomas L. Neff, PhD
f the planned expansion of nuclear power materializes, it

will amplify demands on a nuclear fuel supply system that is
only beginning to recover from decades of neglect. Uranium
production, which supplies about 70% of estimated reactor requirements, has increased only 5% since 2005, despite higher
prices. However, enrichmentthe process of increasing the
concentration of uranium-235 atoms in uranium fuel so that it
can drive modern reactorsis expanding more rapidly due to
technological advances and growth.
The question is: Who will control these expanding markets
for uranium and enrichment? Increasingly, enrichment plants
will have the ability to take control away from utilities and
uranium producers.
Fuel Competition: Uranium vs. Enrichment
Uranium and enrichment are substitutes for each other in the

production of nuclear fuel. Mined uranium has only 7 out of
1,000 atoms that are U-235. The enrichment process uses separative work units (SWU) to increase the concentration of U-235
atoms. When uranium prices were low, it was economic to recover only about half of these essential atoms, using fewer SWU
and more uranium. However, when uranium prices began to rise
a few years ago, it became economic to recover moreusing
more SWU and less uranium. The potential range of substitution
can be as much as 30%.
Utilities typically purchase uranium and enrichment separately. In the past, free contractual flexibilities allowed utilities to
decide on the economically optimum mix of uranium and enrichment to make fuel, based on relative prices, by picking the tails
assay, or fraction of U-235 atoms thrown away in the enrichment process. These flexibilities caused uranium and enrichment
suppliers to endure punishing swings in demand and prices.
Today, uranium and enrichment suppliers limit such contractual flexibilities. For enrichment companies, this means
writing contracts with fixed tails assays. Utilities must deliver a specific quantity of uranium to the enrichment plant
in exchange for a specific amount of fuel according to a set
transaction tails assay that may be quite different from the
operating tails assay set by enrichment plants.
An Economic Balancing Act
By fixing contractual tails assays at relatively high levels, but

building in flexibility to lower actual operating tails assay, enrichers can underfeed (use less uranium than utilities deliver
while still producing the same amount of fuel) and resell uranium
into the market. Given enough capacity and flexibility in operations, enrichers will exercise considerable control over uranium
supply, demand, and price.
By returning uranium to the market through substitution
of enrichment for uranium, net demand for uranium from
primary production can be reducedessentially turning en108
richment plants into uranium mines and potentially lowering

prices for uranium.
Enrichers will continue to underfeed as long as the revenue from sales of uranium exceeds the loss of revenue from
selling the SWU used to obtain the uranium. As long as
enrichers have the operational flexibility to underfeed, uranium and enrichment prices will tend to come into equilibrium with each other. If uranium prices rise, underfeeding
will increase because it is more profitable for enrichers to
use enrichment capacity to minimize uranium use in production of fuel and resell uranium into the market than to sell
SWU. This, of course, will reduce uranium prices, restoring
price equilibrium.
Conversely, if enrichment prices fall, it may make sense to
divert enrichment services to uranium sales. This might happen,
for instance, if enrichment capacity overexpands. Enrichers can
turn a surplus in enrichment into a surplus of uranium, raising
prices for enrichment but lowering those for uranium.
(Elsewhere, I have analyzed the economic tradeoffs between uranium and enrichment, given the likely expansion
of enrichment capacity compared with the expansion of uranium supply.)
In 2007, when uranium prices spiked, enrichers might have
increased revenue by about 45% by underfeeding and selling
uranium, an effect only partly limited by contractual and operational inflexibilities. In fact, the rise in uranium prices did
result in an increase in enrichment prices by more than 40%.
To reach a new equilibrium, given higher enrichment prices,
long-term uranium prices fell by 30%.
The Enrichment Sectors Growing Control
Today, the rapid expansion of enrichment capacity and rigid

new contract terms appear likely to give enrichment companies
substantial control over both enrichment and uranium markets.
Uranium mining companies cannot exercise such technical flexibility and thus may have to yield market power to enrichment
companies. Of course, this is a compelling argument for vertical
integration. AREVA already has both uranium mining and enrichment operations, and Cameco has invested in GE-Hitachis
Global Laser Enrichment project, whose technical and economic
feasibility may be proven by next year.
The era when nuclear utilities had the contractual flexibility to minimize costs for fuel appears to be ending, with
control over uranium and enrichment price equilibrium shifting to others, who may not have the same interests. There
are major implications for uranium miners as well as utilities,
both of whom will have to find new strategies for dealing with
technological change and growth in the enrichment sector.
Thomas L. Neff, PhD (tlneff@mit.edu) works at the Center
for International Studies at the Massachusetts Institute of Technology in Cambridge, Mass.
www.powermag.com
POWER November 2009
Total control at your fingertips?

Absolutely.
The pioneering spirit of ABB is focused on the future of our customers. With more than 100 years of
experience in power generation and the largest installed base in the industry, ABB is a partner you can
rely on to deliver systems that outperform any others in the global market today. Our comprehensive
portfolio of fully integrated automation, instrumentation, control and electrical systems help you optimize
unit performance, improve reliability, reduce generation costs and lower environmental impact. ABBs
System 800xA provides a common operator interface and engineering tools for single-platform control
of your plant. System 800xA also offers electrical systems integration with IEC61850, superior fieldbus
technology and advanced system security, ensuring power plant integrity for the next generation.
www.abb.com/powergeneration
Visit our booth, C4-301 at Power Gen International 2009
ABB Inc.
29801 Euclid Avenue
Wickliffe Ohio, US 44092
E-mail: pspmarketing@us.abb.com

1787_SYS_TotalControlPowToday.indd 1
10/13/09 2:39 PM

Nov 13

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nov 13

Uploaded by

Copyright:

Available Formats

November 2009 Vol. 153 No.

Vol. 153 No. 11 November 2009

Special Report: Power in Chile

circle 1 on reader service card

Established 1882 Vol. 153 No. 11

COVER STORY: NuClEaR TOP PlaNTS

34 Oconee Nuclear Station, Oconee County, South Carolina

74 Benchmarking Nuclear Plant Operating Costs

November 2009 POWER

MODELING & SIMULATION

82 Modeling and Simulation Tools Reduce Plant Outage Duration

90 New Nuclear Plants Are on the Horizon

92 Plant Vogtle Leads the Next Nuclear Generation

The Plant Asset

98 Modularizing Containment Vessels in New Nuclear Power Plants

worlds First EPR Gets a Roof

16 Catching Faults with Centralized Condition Monitoring

Conn. v. AEP: Call for Congressional Action

101 NEw PRODUCTS

The New Nuclear Fuel Market

By Thomas L. Neff, PhD of the Center for International Studies at MIT

POWER November 2009

Serving Up Perfection in Power Solutions

NV Energy Tracy Station celebration luncheon for

Celebrating safety milestones is a fulfilling way to acknowledge great

David Wilks, President of Power

Visit POWER on the web: www.powermag.com

EdiTORiAl & PROduCTiOn

Petra Trautes, +49 69 5860 4760, ptrautes@accessintel.com

powermag@halldata.com, 800-542-2823 or 847-763-9509

ACCESS inTElliGEnCE, llC

POWER (ISSN 0032-5929) is published monthly by Access

4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850

POWER November 2009

Treat SOX and acid gases quickly and

Solvay Chemicals, Inc.

Copyright 2009, Solvay Chemicals, Inc. All Rights Reserved

uly 17, 1955, was the first time electricity generated by

Significant Global Growth

Today, 439 nuclear power plants are in operation in 30 countries

Developing Countries Pick Nuclear

The location of these new reactors provides a peek into where

My EUCG nuclear benchmarking article (p. 74) this month notes

POWER November 2009

GE Power & Water

CIRCLE 6 ON READER SERVICE CARD

Olkiluoto 3, the worlds first EPR whose construction in Finland

struction of the project, begun in July 2006, was also expected

Three CCS Tests Launch Worldwide

This Septembera year after Vattenfall launched the worlds first

POWER November 2009

When the going gets tough,

Orion level gauges take on the toughest

rion level controls are built tough. Our Aurora

operated and leading-edge electronic measurement in a

liquid level indication at orioninstruments.com.

Oil and Gas Refining

Thermal & Nuclear Power

Water & Wastewater

Pharmaceutical & Biotech

6646 Complex Drive Baton Rouge, LA 70809 1-866-556-7466 info@orioninstruments.com

3. Amine, Amen. Also this September, Alstom and The Dow

4. The acid test. American Electric Power is preparing to commission