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Duke Energy Seeks to Extend Operating License for Robinson Nuclear Plant

LCG, April 9, 2025--Duke Energy announced yesterday its submission of a subsequent license renewal (SLR) application to the U.S. Nuclear Regulatory Commission (NRC) for the Robinson Nuclear Plant, a 759-MW nuclear unit located near Hartsville, South Carolina. The application requests extending the plant's operations for an additional 20 years.

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Gemma Power Systems Receives Notice to Proceed on a 1.2-GW Power Project in Texas

LCG, April 8, 2025--Gemma Power Systems (“Gemma”), a wholly owned subsidiary of Argan, Inc. (“Argan”), has received a notice to proceed on its previously announced engineering, procurement and construction (“EPC”) services contract with Sandow Lakes Energy Company, LLC (“SLEC”) for a 1.2-GW power plant in Lee County, Texas. Construction of the natural gas-fired, combined cycle facility is scheduled to commence this summer, with an expected project completion date in 2028

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Industry News

Nebraska Nuke's Future Uncertain

LCG, May 10, 2002--The largest generating unit in Nebraska, Nebraska Public Power District's Cooper nuclear plant, may be shut down at the end of power purchase agreements through 2004, more than a decade before its operating license is due to expire.

The NPPD is considering several options for the plant, which sells most of its output to MidAmerican Energy Co. and Lincoln Electric System. Perhaps the most serious issue is the need to cover decommissioning costs, which are estimated at $500 million, and out of which $297 million has been paid through installments into a fund. In 2000, a court allowed the two large customers to stop covering the costs, pending review.

NPPD might have to recover decommissioning costs through higher power prices, a result that the power purchasers have indicated would cause them to buy elsewhere. In addition, the 778-megawatt plant is one of only two plants in the country considered to meet only the absolute minimum operating conditions set by the Nuclear Regulatory Commission. Inspections-related costs stemming from the poor rating impact NPPD with up to $5 million in extra expenses.

Although NPPD will seek new purchasers for Cooper's output, the cost of lengthy outages may cause Cooper to lose out if it attempts to sell take-or-pay contracts, in which repair costs are explicitly covered by the buyer regardless of whether it is receiving power. The power district is currently unable to sell the plant under the law.
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