2009/06//19: Journal Sentinel: Point Beach closing underfunded

Posted: Jun. 19, 2009

Wisconsin's Point Beach nuclear power plants are currently underfunded for their eventual closure, according to an investigation of the nation's nuclear industry.

The U.S. Nuclear Regulatory Commission will notify the owners of 26 nuclear plants nationwide that they are not saving enough money to dismantle reactors once they're no longer operating, the investigation found.

In a memo obtained by The Associated Press on Thursday, the agency told congressional offices it would work with the plants on a case-by-case basis to develop remedial savings plans.

"Normally, there are only four to five plants that fall into this category," NRC senior congressional affairs officer Eugene Dacus wrote in the memo. "The NRC believes that the economy may account for the unusually high number this year."

Included on the list are the Point Beach plants, in Wisconsin, both underfunded, according to The Associated Press.

Point Beach plant No. 1 has an estimated decommissioning cost of $342 million, yet it has only $181 million in its fund.

Likewise, Point Beach plant No. 2 has a $342 million decommissioning cost but only $170.5 million in its fund.

The plants are licensed to operate through 2030 and 2033, respectively.

"Our company is fully committed to meeting all of our decommissioning financial obligations," said Sarah Cassidy, a Point Beach spokeswoman. The Point Beach operations are owned by FPL Energy LLC, based in Miami.

The shortfalls are due to current financial market conditions and will be corrected over time, she added.

Wisconsin's Kewaunee nuclear plant has an estimated $359 million decommissioning cost and $371 million in its fund. The plant's operators are waiting for approval of a license extension that would keep the facility active until 2033.

"Based on the numbers, it seems like everything is where it needs to be," said Mark Kanz, local affairs manager.

The Kewaunee plant is owned by Dominion Resources Inc., based in Richmond, Va.

The Associated Press reported this week that over the past two years, estimates of dismantling costs for the entire U.S. nuclear industry have soared by more than $4.6 billion because of rising energy and labor costs, while the funds that are supposed to pay for shutting plants down have lost $4.4 billion in the battered stock market.

NRC officials had said last week that about 30 reactors would receive letters this week saying their decommissioning funds were running short. That was based on the agency's review of status reports on the funds filed every other year by plant owners; the most recent batch was due March 31.

NRC officials also said an additional 19 plants would have to be mothballed for up to 60 years after they shut down, partly in hopes that their decommissioning funds would see enough investment growth to pay for dismantling the reactors and removing radioactive components.

Such long periods of idleness have raised concerns that plant systems could decay over time, raising the chances of an accident that might release radioactivity into the environment.

Various reports by government agencies and independent groups also have raised alarm that the plants could be tempting targets for terrorists bent on creating radioactive "dirty bombs."

Plant owners say they have several ways to close the gap. In addition to idling the plants, the government can simply extend licenses to operate them.

The Associated Press contributed to this report.