An Ignoble Experiment

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Upgrades to Monticello Nuclear Generating Plant were completed at a cost consistent with the experience of other nuclear plants across the country, according to a report filed by Xcel Energy with the Minnesota Public Utilities Commission, even though costs were higher than originally anticipated. The Monticello life-extension/power upgrade project replaced hundreds of pieces of equipment and resulted in a largely rebuilt plant.

A functional replica of the Monticello Nuclear Generating Station on-site training simulation room. Credit: Ben Franske/Wikimedia Commons

The report cites evolving federal regulatory standards and schedules, higher installation costs and a broader project scope than originally anticipated as reasons for cost increases over the original 2008 estimate of $320 million. The final cost as of August 31 is $665 million.

The upgrade allows increased power output, supports safe and reliable operations, and delivers low-cost, round-the-clock energy through 2030. The Monticello plant supplies about 10 percent of Xcel's customers' electricity needs with carbon-free energy at a time of increasing regulation of power plant emissions. The plant is positioned to continue providing 600 MW of power through 2030 and will provide an additional 71 MW after approval from the federal Nuclear Regulatory Commission.

"Completing the project took longer and cost more than we anticipated, but it was essential it be done right, and we believe we made reasonable decisions along the way," said Tim O'Connor, senior vice president and chief nuclear officer. "Experience at other plants across the country with comparable projects demonstrates that our experience was not unique."

For more:
- see the filing

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2. Tucson Electric Power on the cutting edge of predictive maintenance

By Barbara Vergetis Lundin

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3. Second SCE filing calls for Mitsubishi accountability in SONGS failure

Tucson Electric Power (TEP) has received an international award for predictive maintenance at the Springerville Generating Station (SGS).

TEP's Springerville Generating Station Solar System. Credit: Tucson Electric Power

TEP received the Emerson Process Experts 2013 Reliability Program of the Year award for the use of effective reliability and maintenance practices that saved the utility more than $1.4 million in 2012 alone, using technology to monitor and identify equipment in need of repair or replacement.

"Because we are able to predict failures before they happen, the company is only paying the cost to replace parts instead of having to spend significantly more for new equipment, and we can schedule maintenance at our convenience rather than wait for a failure," said Mark Mansfield, vice president of generation, TEP. "Ultimately, this program helps us to maintain reliable service and lower costs on behalf of our customers and co-owners."

Specialized tools and equipment such as vibration analysis, infrared thermography, oil analysis and electrical motor testing are used to predict when bearings or other parts in motors, fans and pumps will go bad so the parts can be replaced or fixed before the equipment fails.

In 2013, TEP began installation of a wireless vibration system throughout the plant's coal handling facilities, which automatically collects vibration data and sends it to system supervisors for analysis. For example, as gears deteriorate, vibration increases -- a change that can be detected with the vibration system. Once fully installed, the system is expected to be among the largest wireless vibration networks of any power plant in the world and among the top five largest of any industry in the world.

For more:
- see this report

By Barbara Vergetis Lundin

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4. PA PUC slams EG suppliers with penalties for suspect marketing

Southern California Edison (SCE) has submitted a Request for Arbitration to the International Chamber of Commerce (ICC), which states claims against Mitsubishi Heavy Industries and Mitsubishi Nuclear Energy Systems for the defective steam generators Mitsubishi designed and built for the San Onofre nuclear plant.

San Onofre Nuclear Generating Station. Credit: Jelson25/Wikimedia Commons

The request for binding arbitration seeks to hold Mitsubishi accountable for the defective replacement steam generators, a failure which led to the permanent shutdown of the plant and caused billions of dollars in harm.

"We are taking this step…to ensure that Mitsubishi takes responsibility for providing defective steam generators and to recover, on behalf of our customers, all damages from Mitsubishi for its failures," said Ron Litzinger, SCE president.

SCE requested arbitration after a Notice of Dispute it filed against Mitsubishi in July did not produce a resolution. The Request for Arbitration contends that Mitsubishi totally and fundamentally breached its contract by failing to deliver what it promised. SCE also alleges that Mitsubishi failed to submit to a contractually mandated audit requiring it to disclose documents relevant to the design and other aspects of the replacement steam generator project and its implementation.

The Nuclear Regulatory Commission (NRC) announced in September that it had identified flaws in the computer codes that Mitsubishi used to design the failed steam generators, at which time the agency issued a Notice of Non-Conformance against Mitsubishi for the failed design resulting from the implementation of the codes. At that time, SCE was also cited for the failed design created by Mitsubishi.

For more:
- see the Request for Arbitration

Read more about: Southern California Edison, SONGS
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By Barbara Vergetis Lundin

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5. Smart buildings technology getting more competitive

The Pennsylvania Public Utility Commission (PUC) has approved civil settlements for two electric generation suppliers (EGS), IDT Energy and AP Gas & Electric (APG&E) following complaints concerning suspect marketing practices. The Commission unanimously voted to accept the settlements, with modifications, between the suppliers and the PUC's independent Bureau of Investigation & Enforcement (I&E).

The settlement with IDT Energy follows an informal investigation into 21 consumer complaints over marketing incidents with one of the company's independent sales agents. The I&E was able to substantiate allegations of slamming and fraudulent, deceptive, or unlawful sales and marketing actions after it alleged that IDT violated PUC regulations and the Pennsylvania Public Utility Code. IDT admits no wrongdoing.

According to the settlement, IDT must pay a penalty of $39,000, which it agrees not to recover from consumers. The company must also comply with the PUC's supplier marketing guidelines; retrain certain sales agents; implement better quality control; provide the PUC with written notification of marketing activities as well as a list of independent marketers; and increase its reporting to the PUC on consumer complaints.

The settlement with APG&E follows an informal investigation into consumer allegations of slamming. The I&E alleged that APG&E violated PUC regulations and the Pennsylvania Public Utility Code by failing to obtain the direct oral confirmation or written authorization from multiple customers to change their EGS supplier; engaging in fraudulent, deceptive or otherwise unlawful acts in the process of marketing services to consumers; violating the "Do Not Call" provisions of the Telemarketer Registration Act; and violating the code of conduct for licensed suppliers. APG&E admits no wrongdoing.

According to the settlement, APG&E must pay a penalty of $43,200, which it agrees not to recover consumers. Further, the company must send annual information to its customers stating the company has no affiliation with the customer's electric utility; provide written notice to the PUC of any changes to its marketing practices; and increase its reporting to the PUC on consumer complaints.

For more:
- see the settlements here and here

By Barbara Vergetis Lundin

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