Consumers likely
to see some effect from nuclear power station's shutdown
Oct 19, 2005 - The Tribune, Mesa, Ariz.
Author(s): Lynn Ducey
Oct. 19--A special hearing of the Arizona Corporation Commission will
likely be held in the coming weeks to review the impact of the shutdown
of the Palo Verde Nuclear Generating Station on Arizona Public Service
customers' bills.
Commissioners William Mundell and Kris Mayes on Tuesday formally
requested the hearing during a regular meeting of the ACC, the state
body that regulates utilities in Arizona.
The goal is to see how APS will handle the cost of idling two of its
three reactors, Mundell said.
"Does APS intend to ask customers to pay for these outages?" Mundell
said.
APS spokesman Jim McDonald said it's likely consumers will see some
effect from the shutdown in their bills.
Two of Palo Verde's three reactors were shut down Oct.11, after APS
officials were unable to demonstrate to Nuclear Regulatory Commission
inspectors that a key safety system would perform as designed.
Because the third reactor had been idle since Oct.7 for maintenance,
the plant was effectively closed down.
Palo Verde is the nation's largest nuclear power plant and generates
electricity for 4million customers.
The two reactors have been restarted and could be at full power by
late this week "if everything goes very well,"nMcDonald said. But, it's
more likely the reactors will be at full power next week, he said.
The third reactor remains idle.
Mundell said that in the summertime, electricity generated at Palo
Verde is used within Arizona, but during cooler months, excess
electricity is sold to utilities in other Western states. As a result of
higher natural gas prices -- a commodity used to make electricity -- the
ACC approved a 4.21percent rate hike requested by APS in March.
But part of the agreement took into consideration those cooler months
and "any off-system sales would protect the consumer and reduce the
(overall) cost of those higher natural gas prices," Mundell said.
With the recent closure, "not only could they not sell power on the
open market to offset those (higher natural gas) prices, they had to go
out on their own and buy power on the open market," Mundell said. "It is
much more expensive than the power we could have gotten from Palo
Verde."
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