For longer than any monarch ever ruled a foreign nation, coal has been King in Kentucky. Today, about 90 percent of the state’s electricity comes from coal-fired power plants. So a proposal to end a moratorium on nuclear power plants in the heart of coal country is drawing more than a little attention.
Kentucky legislators are considering lifting a state ban on nuclear plants imposed more than 20 years ago. The move would clear the way to potentially diversif y t he state’s power generat ion mix. Sponsors of a state senate bill to lift the ban cited improved ability to safely store nuclear waste on-site at nuclear plants as a reason why other states are receptive to allowing new nuclear construction. Kentucky’s current stance, say backers of the proposed repeal measure, is keeping the state from competing for nuclear power projects.
Under the state’s moratorium, no nuclear power plant can be built until a long-term federal disposal site has become operational. The ban has endured longer than many expected because development of the Yucca Mountain nuclear waste facility in Nevada, which started in the 1980s, remains unsettled. Yucca Mountain is not expected to be operational until perhaps 2021.
The lack of a long-term disposal site shouldn’t limit the opportunity to explore nuclear power projects in
Kentucky, said State Senator Bob Leeper, who introduced the rollback bill.
Kentucky is also a domestic source of uranium in addition to coal. Rob Ervin of the United Steel Workers, which has hundreds of members working in the uranium enrichment field near Paducah, said the safety of nuclear power has come a long way. “Exploring our options and giving us a chance to capitalize on the rebirth of an industry is what this bill is all about,” Ervin said. “Limiting our options based on a moratorium from a
bygone era does not.”
The Kentucky Coal Association is not taking a stand on the issue, but does support diversification in the state. Bill Caylor, association president, said he believes Kentucky needs a diverse energy portfolio and that nuclear power should be part of it. He called coal “the bridge to the future” saying it was the cheapest source, thereby giving it an edge. “But this country truly needs more energy resources,” he said.—Steve Blankinship
Windfall Profits Posted as PTC Sunset Nears
Although almost certain to be turbines in the world, report record
extended,theproductiontaxcredit(PTC) orders as rising natural gas prices and
for wind generation (which allows power state greenhouse-emission laws drive
producers to deduct two cents for each unprecedented demand for wind power.
kWh produced from wind) is scheduled Wind now accounts for 30 percent of
to expire at the end of this year. That new generating capacity and may boost
potential expiration is driving profits GE’s wind-turbine sales 25 percent to $6
for many wind turbine manufacturers, billion this year. Xcel Energy, the biggest
as developers rush to build as much new provider of wind power in the U.S., is
wind capacity as they can. buying 67 GE turbines for one of its
Last year, U.S. power providers added projects in Minnesota.
more than 5,200 MW of new wind Vestas has opened its first U.S.
capacity. And the American Wind Energy manufacturing plant, in Colorado, and
Association projects that additions this Siemens opened a plant in Iowa last
year could equal that amount as power fall. Meanwhile, GE is partnering with
providers rush to finish wind farms two companies to expand turbine blade
before the credit expires. production in New York and Iowa.
GE Wind, one of the largest maker of Early this year, GE Vice Chairman wind turbines in the U. S., and Vestas, John R ice told an investor conference that among the largest makers of wind GE Wind’s profit margin will eventually
be about $1 billion. If it reaches that level this year with sales of $6 billion, the profit margin would be 17 percent, news reports estimated. “Customers are giving billions of dollars of orders already because they’re afraid they’re going to lose their spot in line,” said John Krenicki, who heads GE Energy.
GE bought into the wind generation business in 2002 when it acquired Enron’s wind turbine manufacturing assets for less than $300 million. Since 2004, GE Wind’s production has grown 600 percent and sales have quadrupled. It now claims 45 percent of the U. S. market. Since late February, the GE Energy wind business unit has announced $1.7 billion in orders, including its second billion-dollar contract since November with Invenergy Wind.—Steve Blankinship
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