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EPSA REBUKES APPA REPORT ON NUCLEAR POWER AND COMPETITION
WASHINGTON, D.C. - Electric Power Supply Association President and CEO John E. Shelk today criticized an American Public Power Association (APPA) report questioning the significant performance improvements at nuclear generating facilities as a result of competition and electric industry restructuring.
"With this report APPA has sunk to a new low in pursuing its protectionist policies. As part of its concerted efforts to obscure the very real and tangible benefits of competitive electricity markets, APPA has cherry-picked data just as it hopes to cherry-pick power supplies and impose costs on other customers," Shelk said.
The anonymously authored APPA report, "Nuclear Plant Performance: What does restructuring have to do with it?," is dated May 2007 and is available on the public power group's website. The report attempts to dispute the clear and compelling factual evidence that competitive markets for electricity have provided the economic rationale for a stunning turnaround in nuclear power plant performance.
"The APPA report discards data that does not support its political agenda. No wonder no one was willing to have their name associated with this self-serving exercise," Shelk said.
"The facts are clear and indisputable that nuclear power plant performance improved dramatically in all regions of the country as a result of competitive power markets and industry restructuring. Nuclear generation is more efficient because of competition, and these efficiencies create cost savings and environmental benefits for consumers," Shelk continued.
"In 1994, the U.S. had 106 nuclear units in operation, run by 46 different companies. They generated 640 million megawatt-hours of electricity, with a capacity factor of 73.8%. In 2006, the U.S. had 103 units, operated by 25 companies. That consolidation in ownership helped produce a compelling improvement in performance - net generation of 787 million MWh (a 22% increase with three fewer units), with a capacity factor of 89.9%. Consolidation has been driven by the economic incentives offered by competition and restructuring, and the nuclear industry and its customers have been the beneficiaries," Shelk said.
"Despite APPA's torturing of the data, the facts clearly show that nuclear generating units in organized power markets are outperforming their counterparts in other regions. In 1995, capacity factors for nuclear generation in PJM, the Midwest, New England, New York, Texas and California averaged 66% and improved to better than 92% in 2006. By contrast, nuclear generation elsewhere had an average capacity factor of 74.5% in 1995 and improved only to 88.4% in 2006. The plants operating in organized markets improved at a rate nearly twice as fast and achieved a higher level of operational performance. Organized power markets have driven impressive generator efficiency improvements for fossil units as well as nuclear," Shelk added.
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FACTS SHOW COMPETION IMPROVES PLANT PERFORMANCE.PDF
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.