Muted response to Palo, Iowa, nuclear plant's sale plan shows changing times

April 20--By Dave Dewitte, The Gazette, Cedar Rapids, Iowa Knight Ridder/Tribune Business News

Bob Lam remembers clearly the spring day in 1974 when Duane Arnold Energy Center began generating power.

From his farm north of Springville, Lam could see the vapor plume rising from the plant at Palo 20 miles west. Since then, he's been mindful that his location downwind could leave him vulnerable if a plant failure caused a radioactive discharge.

"I can look out my window and see the evaporated water almost every day, and the first time I saw that, I thought it looked like a mushroom cloud," recalled the farmer and retired junior high school teacher.

Lam might outlive the Duane Arnold Energy Center: The plant's operating license is set to expire, unless extended, in 2014.

The odds on that fell, however, in January when Alliant Energy announced plans to auction the plant to a buyer willing to seek a 20- year extension of the license.

The announcement was unwelcome news to some who have protested or simply worried quietly about the plant over the past three decades.

But the absence of any major reaction to the news shows how times have changed.

Once a prime target for environmental protests, the nuclear industry appears to be making a comeback. At the same time, environmentalists have other concerns.

"There are other things we need to focus on, and we can't do it all," said Sierra Club member Wallace Horan of Marion.

An attorney, Horan has taken on the cause of small wind producers in Iowa courts. He says fighting the utilities to win rights for small wind developers is just one of the issues he now considers equally important to fighting for nuclear safety.

The Iowa Environmental Council has no plans to take a stand on the Duane Arnold sale or license extension at this point, according to Executive Director Rich Leopold.

One of the few private citizens who's spoken out on the sale is renewable energy advocate Tom Snyder of Dyersville. He says Bush administration is attempting to redefine nuclear power as a form of renewable energy, on par with hydropower or wind energy.

"Everybody's become very blase in accepting nuclear power," Snyder said. "It scares me."

The retired science teacher said he worries that ownership of all the nation's nuclear plants will become concentrated in the hands of a few huge huge companies that will not be regulated by the states in the same was as the local utility companies that own them now. He says the trend could make it hard for regulators to force nuclear operators to maintain adequate decommissioning reserves, or to protect consumers from decisions by producers to shut uneconomical plants down suddenly.

Sale documents show Alliant expects to transfer the liability for decommissioning the plant, as well as the amount already collected in trust funds for decommissioning.

Horan is concerned that extending the licenses of existing nuclear plants will worsen the already serious situation with regard to storage of spent radioactive fuel rods.

The nation's only planned repository for such radioactive waste is the Yucca Mountain site in Nevada, Horan said. But it will not be open for years, Horan said, and is not planned to hold the volumes of nuclear fuel that could result from extending the life of America's nuclear plants by 20 years.

Duane Arnold Energy Center Plant Manager Dean Curtland agreed that the original Yucca Mountain plan would be inadequate in size, but says "it's no different from storage here on-site, it's expandable." He says the current on-site dry cask storage is safe.

One reason environmental activists aren't more concerned is the Duane Arnold Energy Center's improved operating record in recent years, according to David Osterberg, associate professor of occupational and environmental health at the University of Iowa.

"The people out there have been running the plant pretty well, and we should be happy about that," Osterberg said.

Osterberg would be happier, though, if Alliant simply decided to close the plant at its present license expiration date.

"If the company doesn't have the confidence going forward to get an extension on its own, I don't think we should have anybody else come in here and run it for an extended period of time beyond what it's design was," he said.

Osterberg said Sweden has placed a 40-year limit on the life of its nuclear plants.

"There's a lot of people nervous about the metals in these plants that have been bombarded with slow neutrons over such a long period of time," he said.

Curtland said Duane Arnold's operators closely monitor the condition of the plant. The owners are not selling the plant because they think it will become less safe or reliable, Curtland said, but because of the financial risk. With the plant fully depreciated, he said the owners do not know how much of a return on future plant investments regulators would allow.

Residents living near the plant are not unanimous in their opinions of the sale. But Palo Mayor John Harris believes the general opinion of the plant is supportive.

"We as a town would like to see the license extended," Harris said "The personnel that run the plant, we understand, would be likely to continue running the plant. The relationship we've had with the plant would not change very much," Harris said.

Plant majority owner Alliant Energy is committed to not relicensing the plant, spokesman Ryan Stensland. If the plant cannot be sold, he says, Alliant will decommission it in 2014, and that could mean higher rates until then to get the decommissioning reserve adequately funded.

Stensland says the sale does not reflect a change in Alliant's belief in nuclear technology, but its effort to "return to our roots" as a traditional utility offering shareholders predictable returns.

"In the next 10 years, there will be a tremendous amount of discussion regarding relicensing," he said.

 

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