Turning seawater into electricity: NB Power's untested idea for Belledune

Three Mile Island closure highlights Exelon's nuclear plant losses as cheap natural gas, grid auctions, and renewable energy credits undercut profitability in Pennsylvania, prompting bailout debates over subsidies, reliability, carbon emissions, and local jobs.

Key Points

The Three Mile Island closure is Exelon's plan to shut the plant after gas losses, failed grid bids, and no state aid.

✅ Cheap natural gas undercuts nuclear profitability

✅ Plant missed capacity market awards in grid auctions

✅ Exelon seeks subsidies; Pennsylvania debates costs

Cheap natural gas could do what the worst commercial nuclear power accident in U.S. history could not: put Three Mile Island out of business.

Three Mile Island’s owner, Exelon Corp., announced Tuesday that the plant, now at the center of an energy debate over whether to let struggling nuclear plants close or save them, will close in 2019 unless the state of Pennsylvania comes to its financial rescue.

Nuclear power plants around the U.S. have been struggling in recent years, even as nuclear generation costs hit a ten-year low, to compete with generating stations that burn plentiful and inexpensive natural gas to produce electricity.

The Chicago-based energy company’s announcement came after what it called more than five years of losses at the single-reactor plant and Three Mile Island’s recent failure to be selected as a guaranteed supplier of power to the regional electric grid.

Exelon wants Pennsylvania to give nuclear power the kind of preferential treatment and premium payments that are extended to renewable forms of energy, such as wind and solar. It has not said how much it wants.

Pennsylvania Gov. Tom Wolf has made no commitment to a bailout. In a statement Tuesday, Wolf said he is concerned about layoffs at Three Mile Island and open to discussions about the future of nuclear power in the state. Exelon employs 675 people at the plant, whose license does not expire until 2034.

Nuclear bailouts have won approval in Illinois and New York, but the potential for higher utility bills in Pennsylvania is generating resistance from rival energy companies, manufacturers and consumer advocates.

The control room seen at the Three Mile Island nuclear power plant. The site has struggled to compete in an electricity market booming with inexpensive gas.

David Hughes, president of the Pittsburgh-based consumer group Citizen Power, said the notion that nuclear power is clean energy, as the industry argues, is laughable.

“It’s a myth, and they’re trying any way they can to get more money out of ratepayers,” he said.

In addition to contending that nuclear power can help fight climate change and enable net-zero emissions better than gas or coal, Exelon and other energy companies have argued that their plants are big employers and sources of tax revenue.

“Like New York and Illinois before it, the commonwealth has an opportunity to take a leadership role by implementing a policy solution to preserve its nuclear energy facilities and the clean, reliable energy and good-paying jobs they provide,” Chris Crane, Exelon president and CEO, said in a statement.

Around the U.S., nuclear plants have been hammered by the natural gas boom.

In December, Illinois approved $235 million a year for Exelon to prop up nuclear plants in the Quad Cities and Clinton, six months after the company threatened to shut them down.

FirstEnergy Corp. has said it could decide next year to sell or close its three nuclear plants — Davis-Besse and Perry in Ohio and Beaver Valley in Pennsylvania. PSEG of New Jersey, which owns all or parts of four nuclear plants, has said it won’t operate ones that are long-term money losers.

In this undated file photo, a Pennsylvania state police officer and plant security guards stand outside the closed front gate at Three Mile Island after the plant was shut down following a partial meltdown on March 28, 1979.  (PAUL VATHIS/AP)  

Built during a golden age for nuclear power, Three Mile Island’s Unit 1 went online in 1974 and Unit 2 in 1978, coughing steam into the air above its sliver of land in the Susquehanna River, about 10 miles from Harrisburg.

In March 1979, equipment failure and operator errors led to a partial core meltdown of Unit 2, leading to several days of fear and prompting 144,000 people to flee their homes amid conflicting or ill-informed information from utility and government officials.

Scientists worried at one point that a hydrogen bubble forming inside the reactor would explode with catastrophic consequences.

Experts have come to no firm conclusion about the health effects or the amount of radiation released, though government scientists have said the maximum individual dosage was not enough to cause health problems.

Regardless, the accident badly undermined support for nuclear power. No nuclear plant that was proposed after the accident has been successfully completed and put into operation in the U.S.

The damaged reactor has been mothballed, but the other reactor is still in use. Exelon says the operating costs for just the one unit are high, further straining Three Mile Island’s financial health.

Pennsylvania is the nation’s No. 2 nuclear power state, after Illinois.

Closing Three Mile Island would have little or no effect on electricity bills, analysts say. But the power may be replaced by electricity generated by carbon-emitting fuels such as coal or gas.

Because of the flood of natural gas on the market, a lot of it from the Northeast’s Marcellus Shale formation, dozens of new gas-fired plants are coming online or planned. At the same times, states are putting more emphasis on renewable energy and efficiency.

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Zambia Mining Electricity Tariff Agreement signals a shift to a 9.33 cents/kWh flat rate for mining companies, as Zesco and the ERB steer power pricing talks, with backdating, copper output, and tariffs in focus.

Key Points

A policy to set a 9.33 cents/kWh flat rate for mines, with Zesco backdating terms still under negotiation.

✅ 9.33 cents/kWh flat tariff accepted by most mining houses

✅ Talks involve Zesco, ERB, First Quantum, Glencore, Vale, Vedanta

✅ Backdating to January remains under negotiation

Zambia is close to reaching an agreement with mining companies over its plans to increase electricity prices, in line with recent increases in Hong Kong seen elsewhere, Finance Minister Felix Mutati reports.

The government last month proposed introducing a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh) backdated to January for mining companies, instead of individually negotiated rates that have averaged 6 U.S. cents/kWh, a structure echoing Manitoba's planned 2.5% yearly hikes over three years, but mining companies opposed the plan.

A team headed by the minister of energy was due to hold talks with mining companies this week, including First Quantum Minerals,.

"We have concluded with all the mining houses except for one. They have accepted our proposal to actually pay 9.33 cents/kwh," Mutati told Reuters in a move comparable to BC Hydro's 3.75% rate plan over two years.

However, an agreement has not yet been reached on backdating the higher tariffs to January as proposed by power firm Zesco Ltd, a point comparable to issues outlined in Nunavut's electricity price hike analysis, he said.

"It is part of the negotiations but ideally that is what the government is considering," Mutati said.

Other mining companies operating in Zambia, Africa's No. 2 copper producer, include Glencore of Switzerland, Brazil's Vale and London-listed Vedanta Resources .

Last week Zambia's Energy Regulation Board (ERB) approved a 75 percent increase in the price of electricity for retail customers, whereas utilities such as BC Hydro's $2 per month proposal in Canada have pursued more gradual adjustments. (Reporting by Chris Mfula; Editing by James Macharia and Susan Fenton)

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Ohio gas-fired generation accelerates as combined-cycle plants join PJM Interconnection, challenging FirstEnergy's Davis-Besse baseload in Lucas County with 869-955 MW capacity and lower costs than nuclear, this summer and a new 2020 project.

Key Points

Ohio gas-fired generation is new combined-cycle capacity for PJM, adding 955 MW and competing with nuclear baseload.

✅ 955 MW Lucas County plant approved by Ohio Power Siting Board

✅ 869 MW Oregon Clean Energy Center entered service this summer

✅ PJM says reliability unaffected without FirstEnergy nuclear

Nuclear generators already struggling in Ohio will face even more competition from almost 900 MW of gas-fired generation that came online this summer, amid concerns over a growing supply gap in some regions, and another 950 MW plant now in the works.

Both plants will connect to the PJM Integration market, according to the Toledo Blade, and will generate more power than FirstEnergy's nearby Davis-Besse nuclear plant overall.

The Clean Energy Future–Oregon project will cost an estimated $900 million to construct, and is expected to begin operation in 2020. The project was initially approved more than four years ago.

Nuclear plants in Ohio have pressed for subsidies to remain in operation, as their emissions-free power is being pushed off the grid by cheaper natural gas, reflecting a broader debate over the future of struggling nuclear plants across the U.S. In May, FirstEnergy CEO Chuck Jones told the Ohio Senate Public Utilities Committee that its Davis-Besse and Perry nuclear plants are unlikely to successfully compete with low cost gas-fired generation in the wholesale power market.

Proponents of supporting baseload generation like coal and nuclear have pointed to their contributions to the reliability and resiliency of the power system, and some jurisdictions are considering new large-scale nuclear to meet those goals. But FirstEnergy's Ohio nuclear plants are not necessary for system reliability, according to Craig Glazer, vice president of federal government policy at PJM Interconnection and the former chairman of the Public Utilities Commission of Ohio.

The Ohio Power Siting Board last week authorized Clean Energy Future-Oregon LLC to construct a 955 MW gas-fired, combined-cycle power plant in Lucas County.

The plant will be located on a 30-acre parcel of land in Oregon, Ohio, and will interconnect to the regional electric transmission grid via nearby 138 and 345 kV transmission lines.

The project is being developed by CME Energy, which this summer also brought online the Oregon Clean Energy Center, an 869 MW gas-fired power plant at a nearby location, while governments elsewhere weigh new gas plants to boost electricity production.

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Summerside Plant Asbestos Removal enables a heating system upgrade to electric furnaces with heat storage bricks, maximizing wind energy use and lowering peak loads; contractor tenders closed, work starts May 1.

Key Points

A city effort to remove asbestos so an electric furnace heating upgrade with wind energy heat storage can proceed.

✅ Four electric furnaces with heat storage bricks

✅ Maximizes wind energy, lowers peak load and diesel use

✅ Work starts May 1; about three weeks; no service disruptions

The City of Summerside is in the process of removing hazardous asbestos at the Summerside Electric Power Plant building in order to clear the way for replacement of the heating system.

The city is hiring a contractor to do the work and tenders for the project closed Thursday afternoon. 

The heating system is being replaced with four new electric furnaces, which are Heat for Less Now products. The products help maximize wind energy by using bricks to store heat created from wind energy for use during peak demand times, similar to using more electricity for heat initiatives advocated in the N.W.T.

"This program's working so well we wanted to continue with that in the power plant," said Rob Steele, electrical operations supervisor with the City of Summerside. 

Time to replace system

The new system will heat the whole building, as other utilities evaluate options like geothermal power plants to meet targets. 

"Having more of these units with heat storage already placed in them can lower the peak load of Summerside which therefore will help keep our diesel engines from running, aligning with power grid operation changes being considered in Nova Scotia," said Steele. 

Steele said the existing system is beyond life its expectancy and maintenance is getting costly so it's time to replace it, amid calls to reduce biomass electricity in generation portfolios. 

"And unfortunately in 1960 and 1963 asbestos was used on the elbow sections of the piping insulation and of course that must be removed for us to proceed," said Steele.  

Steele said the city doesn't know how much the project will cost yet as the tenders just closed Thursday afternoon. He said the city plans to announce the cost along with the successful bidder who will do the asbestos removal April 6. 

The city said there won't be any interruption of power or services during the upgrades, even as major facilities like the Bruce nuclear reactor undergo refurbishment elsewhere. Work is expected to start May 1 and take about three weeks to finish. 

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Alberta Renewable Energy Auction invites bids as AESO adds wind and solar capacity, targeting 5,000 MW by 2030, with 400 MW online by 2019 to replace coal, stabilize prices, and cut greenhouse gas emissions.

Key Points

A program to procure wind and solar for Alberta’s grid, replacing coal and scaling to 5,000 MW by 2030.

✅ 400 MW online by 2019 to backfill retiring coal units

✅ Timed additions to avoid price distortion on the grid

✅ Targets 5,000 MW of renewables by 2030

The operator of Alberta's electricity grid will start taking bids at the end of this month from companies interested in generating and selling renewable energy in the province.

The provincial government wants to add 5,000 megawatts of renewable electricity, supporting new jobs across the province by 2030.

The renewables, including wind power and solar power, will replace coal-fired power plants, which will be shutting down as part of the province's strategy to lower greenhouse gas emissions.

Energy Minister Marg McCuaig-Boyd announced Friday the first competition will be for 400 megawatts, which is enough to power about 170,000 houses.

"We're known as the energy hub of Canada, and make no mistake, green energy is a big part of that," she said.

Mike Deising with the Alberta Electric System Operator (AESO) says the new green power has to be developed gradually.

The new green power must be developed gradually, says Alberta Electric System Operator’s Mike Deising. (CBC)

"We don't want to put on too much generation because what we're going to see is, if we have too much generation all at once, we're going to drive down the market price and it's going to distort the electricity market that we have," he said.

Deising says from their perspective as the grid operator, they want to make sure the addition of new capacity is timed with when they are losing capacity.

AESO wants the 400 megawatts of new green power including solar generation to go onto the grid by the end of 2019 to replace electricity from coal-fired plants that will start shutting down by late 2020.

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Peter Sutherland Sr. Generating Station delivers 28 MW hydroelectric, renewable energy in Ontario via an Indigenous partnership, on-budget and ahead of schedule, supplying the provincial grid near the Abitibi River at New Post Creek.

Key Points

An OPG-Indigenous hydropower plant generating 28 MW in northern Ontario, feeding the provincial grid from New Post Creek.

✅ 28 MW hydropower on Abitibi River at New Post Creek.

✅ OPG and Taykwa Tagamou Nation partnership, on-budget and ahead of schedule.

✅ $300 million project delivers jobs, skills, and long-term revenue to community.

Ontario Power Generation, which has also partnered on new nuclear technology with TVA, says a new hydroelectric plant in the northern part of the province is now online, and the First Nation it has partnered with stands to benefit.

In a written release issued Friday, OPG announced the completion of the Peter Sutherland Sr. Generating Station on New Post Creek. The project is a partnership between the provincial power company and Coral Rapids Power, an Indigenous-owned company of the Taykwa Tagamou Nation, near Cochrane.

"This project has gone well due to the relationship we've built on a foundation of respect and trust," Coral Rapids President Wayne Ross was quoted as saying in the OPG release.

"There have been many benefits for our community including good paying jobs, transferable skills and a long term revenue stream."

The generating station, which is located about 80 kilometres north of Smooth Rock Falls, near where New Post Creek meets the Abitibi River, is named after a respected elder of the Taykwa Tagamou Nation. It generates 28 megawatts of power for the provincial grid, according to OPG, complementing modernization at the Niagara Falls powerhouse upgrade as well.

The project was finished ahead of schedule and on-budget, OPG said, as other Ontario initiatives like a pumped storage project advance.

According to the announcement and recent financial results, the project cost around $300 million.

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