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NRC Issues Subsequent License Renewals for First Time to Nuclear Reactors in Florida

LCG, December 11, 2019--The Nuclear Regulatory Commission (NRC) staff recently approved Florida Power & Light's (FPL's) application for an additional 20 years of operation for Turkey Point Nuclear Generating Units 3 and 4. This is the first time the NRC has issued renewed licenses authorizing reactor operation from 60 to 80 years. The subsequent (or second) license renewals (SLRs) for Turkey Point Unit 3 and Unit 4 now expire on July 19, 2052 and April 10, 2053, respectively.

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New York Poised to Close Last Coal-fire Power Plant

LCG, December 4, 2019--The last operating coal-fired power plant in New York is moving toward closure shortly. Last month, Somerset Operating Company, a subsidiary of Riesling Power LLC, submitted a request to the New York State Public Service Commission (NYSPSC) to waive the state's required, 180-day notice to close the Somerset Station, allowing the facility to be retired on February 15, 2020. Closure is contingent on approvals by both NYSPSC and the New York Independent System Operator (NYISO), which will evaluate if it will cause an adverse effect on grid reliability.

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Industry News

PJM Acts to Establish National Interest Electric Transmission Corridors

LCG, March 9, 2006--PJM Interconnection, LLC (PJM) earlier this week filed a request with the Department of Energy (DOE) to designate two electrical paths as National Interest Electric Transmission Corridors (NIETC). If the designation is provided by the DOE, it is expected that a more timely solution can be implemented to reduce transmission congestion and related costs, as well as improve grid reliability.

One high-voltage, transmission corridor targeted is the Allegheny Mountain path, which connects electric generation resources west of the Allegheny Mountains in West Virginia and the Ohio and Kanawha River valleys with load centers in the metropolitan areas of Washington, D.C. and Baltimore.

The second high-voltage, transmission corridor targeted is the Delaware River path, which links electric generation resources west of the Allegheny Mountains in western Pennsylvania, West Virginia and the Ohio and Kanawha River valleys with load centers in the metropolitan areas Philadelphia, Wilmington, Newark and northern New Jersey, and exports to New York City as well.

Last week Allegheny Energy proposed building a $1.4 billion, 330-mile, 500-kV transmission line that would utilize the Allegheny Mountain path. Allegheny stated the first segment is scheduled to be operational in 2013.

AEP filed in February plans with the Federal Energy Regulatory Commission (FERC) to use the Delaware River path to build an electric "superhighway." The proposed 550-mile long, AEP Interstate Project is estimated to cost $3 billion and is scheduled to commence operations in 2014.

AEP and Allegheny Energy requested the DOE to designate their proposed lines as NIETC projects, as the Energy Policy Act of 2005 provides for NIETC designation for areas that are experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers. Both companies also filed plans with PJM to build their projects. PJM will consider these and other proposals through its Regional Transmission Planning process. The two proposals - which when combined would extend nearly 900 miles and would cost roughly $4.4 billion - will be also evaluated by a number of other regulatory agencies in multiple states. If NIETC designation is granted, then greater federal pressure may be applied to expedite the process.
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