Ameren expected to compete for nuclear funds

Mar 12 - St. Louis Post-Dispatch

The Obama administration is following through on its pledge to push for commercialization of a new breed of small nuclear reactors. And Ameren Missouri is expected to be among the companies to compete for funding.

The Energy Department on Monday announced it is soliciting additional proposals for small modular reactors that could begin producing electricity by 2025.

The small-scale reactors, generally less than a third the size of today's plants, have been touted by President Barack Obama and the nuclear industry as sources of around-the-clock electricity that would be easier for utilities to finance and deploy. The smaller size reduces both upfront costs and construction times and also makes these reactors ideal for small electric grids and for locations that cannot support full-size plants.

And because the plants would be built in modules at a central factory and shipped worldwide, they're seen as a potential new source of American manufacturing jobs -- a benefit that especially interests elected officials in Missouri.

For now, Ameren Missouri officials aren't ready to say they'll pursue the grant opportunity. The St. Louis-based utility said it had not yet had a chance to review information released Monday afternoon by the Energy Department, spokeswoman Rita Holmes-Bobo said.

But Ameren officials have in the past said they believe the state is "well-positioned" to compete in the next round of funding.

In fact, Warner Baxter, Ameren Missouri's chief executive, said earlier this year the utility and Westinghouse were runners-up among eight original applicants for the original small reactor grant award last fall.

"It is our understanding that we were absolutely No. 2," he said.

St. Louis-based Ameren has for years worked on controversial legislation that would allow it to move forward with possible development of a large-scale reactor adjacent to its Callaway plant outside Fulton, Mo.

Last spring, the utility shifted course and partnered with Westinghouse to seek federal funding for one or more small modular reactors that could be built over time to help replace older coal-fueled plants.

The partnership was announced last spring in a ceremony on the lawn of the governor's mansion with backing from a broad coalition of electricity providers, labor unions, and the university system.

Gov. Jay Nixon and other elected officials from both parties trumpeted the potential of the federal subsidy to jump-start a new industry in Missouri.

Despite that support, however, the Energy Department chose a single winner last fall -- a partnership led by Babcock & Wilcox that also included the Tennessee Valley Authority and Bechtel. Many in the nuclear industry expected two winners to share the $452 million in federal funding.

The Energy Department explained the choice of a single winner only after being pressed by Sen. Claire McCaskill and other members of Missouri's congressional delegation, who wrote a letter to Energy Secretary Steven Chu.

In a response to the lawmakers on Friday, Assistant Secretary for Nuclear Energy Peter Lyons said funding criteria were reconsidered after applications were received. In particular, the department was concerned that the requirement for projects using new and untested technologies to be in service within a decade was too aggressive.

"There was concern whether the 2022 deployment date placed too much schedule and technology risk on innovations that could improve safety of the next generation of reactors," Lyons' letter said.

Safety, in fact, is a selling point for designers of the new small reactors, which incorporated a number of passive safety features to help plants shut down safely in the event of a complete loss of power that caused reactor meltdowns and an explosion at Japan's Fukushima Daiichi nuclear plant.

Program funding is subject to congressional appropriations and will come from the $452 million pool announced a year ago. Applicants must commit to a 50 percent cost match.

Applications are due July 1, and awards are expected to be announced in the fall.

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