ML21194A241

RIC 2021, Introductory Remarks on Economics of the Operating Nuclear Fleet

ML21194A241
Person / Time
Site:	Nuclear Energy Institute
Issue date:	03/11/2021
From:	Crozat M Nuclear Energy Institute
To:	Office of Nuclear Regulatory Research
Betancourt L
References
Download: ML21194A241 (14)

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Economics of the Operating Nuclear Fleet Matt Crozat Senior Director, Strategy and Policy Development March 11, 2021

©2020 Nuclear Energy Institute

Highest capacity factor ever achieved in 2019 100%

90%

80%

70%

60%

Last 6 years 93.4% in 2019 50%

92.3% in 2018 40% 92.2% in 2017 92.1% in 2016 30%

92.2% in 2015 20% 91.7% in 2014 10%

0%

NEIs capacity factor calculation (93.4%) accurately accounts for Three Mile Island I and Pilgrim generation in 2019. U.S.

Energy Information Administration reports 93.5% as nuclear energys capacity factor.

Source: U.S. Energy Information Administration ©2020 Nuclear Energy Institute 2 Updated: March 2020

2019 total generating costs decreased nearly $2.50/MWh 2019 costs compared to 2018:

Capital Fuel 5.71

• Total generating costs decreased by 6.15

$2.49/MWh (7.6% reduction)

Total

• Operations costs decreased by Generating $1.57/MWh (7.8% reduction)

Cost:

30.41

• Capital costs decreased by

$0.61/MWh (9.6% reduction)

• Fuel costs decreased by Operations 18.55 $0.32/MWh (4.9% reduction)

Source: Electric Utility Cost Group ©2020 Nuclear Energy Institute 3 Updated: July 2020

Total generating costs decreased nearly 32%

since 2012 50 45 40 Total Generating Costs ($/MWh) 35 30 25 20 15 10 5

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Electric Cost Utility Group ©2020 Nuclear Energy Institute 4 Updated: July 2020

Premature Closures and Announced Shutdowns KEY Premature Closures Announced Shutdowns

©2020 Nuclear Energy Institute 5 Updated: August 2020

State Policies Preserving Nuclear Plants KEY Plants Saved by State Action

©2020 Nuclear Energy Institute 6 Updated: August 2020

Regional Electricity Markets

©2019 Nuclear Energy Institute 7

Nuclear Reactors Map Two-thirds of reactors in some form of market KEY Nuclear Reactor Locations ISO New England NYISO PJM MISO Southwest Power Pool ERCOT California ISO

©2020 Nuclear Energy Institute 8

Electricity Market Design Questions Energy Market

• Which power plants should be used to meet demand?

• How much should they be paid for their electricity?

Capacity Market

• Which plants should be kept in service in case we need them?

• How much should they be paid to stay in service?

Answer: Use the less expensive ones most often.

©2020 Nuclear Energy Institute 9

Declining Wholesale Electricity Prices

©2020 Nuclear Energy Institute 10

Nuclear Plants Preserved via State Action Summer Initially Electricity CO2 Emissions Avoided Generated Plant / Site State Capacity Announced (billion kWh in (Million metric tons per (MWe) Closure Year in 2019) 2019)

Beaver Valley 1 & 2 Pennsylvania 1,808 2021 15.5 9.9 Clinton Illinois 1,065 2017 8.4 8.4 Davis-Besse Ohio 894 2020 7.8 5.0 Fitzpatrick New York 848 2017 7.4 3.5 Ginna New York 582 2017 5.0 2.4 Hope Creek & Salem 1 & 2 New Jersey 3,500 ~2020-2021 26.6 17.0 Millstone 2 & 3 Connecticut 2,073 ~2020 16.7 7.6 Nine Mile Point 1 & 2 New York 1,917 2017-2018 15.8 7.5 Perry Ohio 1,240 2020 9.2 5.9 Quad Cities 1 & 2 Illinois 1,819 2018 15.5 9.9 TOTAL 15,746 127.9 76.9 Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the U.S.

Environmental Protection Agency and latest plant generation data from the U.S. Energy Information Administration. ©2020 Nuclear Energy Institute 11 Updated: August 2020

State Clean Energy Policies

©2020 Nuclear Energy Institute 12

Utility carbon emission projections based on pledges AEP 1,000 Ameren Dominion DTE Energy 900 Duke Energy FirstEnergy Green Mountain Power 800 NRG PG&E CO2 Emissions (million metric tons)

Pinnacle West 700 PNM Resources PSEG Southern California Edison 600 Southern Company TVA Vistra Energy Xcel Energy 500 AES Alliant Avangrid 400 Avista CenterPoint Energy CMS Energy 300 ConEd Entergy Evergy 200 Idaho Power Madison Gas & Electric National Grid 100 NextEra Energy NiSource OG&E Energy Platte River Power Authority

- Portland General Electric PPL Puget Sound Energy Sempra Energy WEC Energy

©2020 Nuclear Energy Institute 13 Source: ABB Velocity Suite, U.S. Environmental Protection Agency, utility news releases.

Key Takeaways U.S. nuclear fleet operating at high level and reducing costs Depressed market revenues challenging the continuing operation of many plants Policies to value carbon-free generation can change prospects for nuclear plants

©2020 Nuclear Energy Institute 14