2nd reactor being considered for Grand Gulf


 



File photo/The Associated Press

This is a 1982 file photograph of the Grand Gulf Nuclear Station, near Port Gibson, owned by Entergy Nuclear.
 
 

WASHINGTON — The summer of 1979 saw numerous protests against nuclear power plants around the nation, including a Mississippi atomic reactor in Port Gibson. The protests even came before the accident that year at the Three Mile Island nuclear power site in Pennsylvania, which sparked concerns about safety and the environmental harm that could come from the relatively new power source.

But few people near the Grand Gulf Nuclear Power in Port Gibson today would protest building a second reactor, because the first has run safely, said Jim Pilgrim, executive director of the Warren County Port Commission, which is located near Grand Gulf. Another plant also could lower natural gas prices as well as provide jobs, he said.

Entergy Corp., owner of Grand Gulf, is considering building a second reactor in the same area. The company says the project would create more than 1,000 construction jobs and several hundred permanent positions.

"We would be very supportive and would actively pursue the location of the second unit," Pilgrim said. The Grand Gulf plant "has proven to be a clean and safe operation."

Communities like Vicksburg aren't the only ones pushing for more nuclear plants. President Bush, members of Congress, utilities and even a few environmentalists support the technology because it doesn't cause air pollution or burn expensive natural gas.

Entergy, which owns 10 nuclear plants in eight states, has filed for a preliminary license to build another near Vicksburg. But the company won't make a final decision until late next year, said Dan Keuter, vice president of nuclear energy development for the Clinton, Miss.-based company.

"Everything would come down to cost and risk and timing," he said. "But (Wall Street investors) don't want to live through what happened in early 1980s in terms of cost overruns and schedule overruns."

Construction of nuclear plants stalled after the radioactive release at Three Mile Island, and the costs jumped significantly. Grand Gulf, for example, started producing electricity in 1985, six years behind schedule and the cost of plant construction quintupled to $3.5 billion.

Today, a large gas-fired plant costs about $600 million, a similar coal facility about $1.5 billion while a nuclear unit would approach $2 billion, although no one knows for sure since U.S. companies stopped ordering atomic reactors in the late 1970s.

One advantage of nuclear power facilities is that - unlike coal plants - they don't emit sulfur, mercury or carbon dioxide, a pollutant scientists say contributes to global warming. Nuclear generators also could replace some plants that burn natural gas, a fuel that has soared in price over the past few years.

The downsides are that the industry produces about 2,200 tons of nuclear waste yearly that needs to be disposed of.

To spur the construction of new nuclear power plants, the federal government has provided tax incentives in an energy law passed last year. They include:

 

  • A tax credit, worth $125 million a year for eight years, to be provided for producing electricity.

     

     

  • Loans, guaranteed by the federal government, for up to 80 percent of the construction costs of a nuclear plant.

     

     

  • Risk-delay payments of up to $500 million for plants that fall behind schedule due to red tape or litigation.

     

    There are long-term fundamental risks to building nuclear power plants, said John Kennedy, an industry analyst at Standard & Poor's, a Wall Street research company. It's difficult to predict the cost of building the first few U.S. nuclear plants or the price of electricity 10 or 20 years from now, he said.

    "We think the Energy Policy Act (signed last year) has some very supportive provisions to encourage investment in nuclear power," Kennedy said. "However, we think the incentives may not outweigh the risks."

    One environmental group objects to the government subsidies being given to electric utilities, most of which have reported large profits. Federal money will lead to building a few more nuclear plants rather than a major expansion similar to the 1970s and 1980s, when nearly 100 plants were completed, said Thomas Cochran, a scientist at the Natural Resources Defense Council.

    "We don't need to subsidize these first (nuclear plants)," Cochran said. "Let them compete" with other sources of energy.

    The environmental community is split on nuclear power. Patrick Moore, a founder of Greenpeace International, supports the technology because nuclear energy doesn't cause air pollution.

    "Nuclear energy has already made a sizable contribution to the reduction of (greenhouse gas) emissions in America," Moore told a Senate energy panel last year. "Among power plants, the dirty and old coal-fired plants produce the most pollution."

    Many in the energy industry think that once the first few nuclear plants are ordered, it will lead to a renaissance in atomic reactors producing electricity. A handful of companies have proposed building up to a dozen nuclear power plants, although no deal has been signed.

    The time to design and license nuclear plants should drop after the first few plants are approved, and facilities will become standardized, said Entergy's Keuter. The company expects that if it decides to build a plant in late 2007, it will take two to three years to get a Nuclear Regulatory Commission permit, three years to build and another six months to get operations underway, he said.

    "The subsequent ones should get cheaper," he said. "It looks very promising right now unless something happens."


    Contact Doug Abrahms at dabrahms@gannett.com.

    On the Web:

    www.entergy-nuclear.com, Entergy Nuclear.
    www.nrdc.org, Natural Resources Defense Council.
    www.nei.org, Nuclear Energy Institute.

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