US nuclear O&M costs continued to decline in 2004

US nuclear O&M costs continued to decline in 2004

Washington (Platts)--8Jul2005


US nuclear plant operators continued to hold the line on costs in 2004,
inching median spending slightly downward to 1.61 cts/kWh, with Southern
Nuclear Operating Co's Vogtle--for the second year running--the only plant to
report spending less than 1.2 cts/kWh on operations and maintenance, including
fuel. 

The figures come from utility filings on the Federal Energy Regulatory
Commission's Form 1 and Dept of Energy's Energy Information Administration
Form 412, filed for 2004 by utilities reporting costs for the 39 of 65 nuclear
sites still subject to rate regulation. The available reports cover 60% of
sites and 61.2% of 2004 generation. From those filed, the average 2004 US cost
for a nuclear kilowatt-hour was 17.22 mils and the median, 16.11 mils. In
2003, with 42 stations reporting, the figures were 18.59 and 16.67 mils,
respectively, and in 2002, with 45 stations, 22.37 and 16.02.

Average spending per reporting station rose to $201.4-mil from the $199-mil
average in 2003. Despite the increased outlays, the efficiency numbers
improved in parallel with the US industry's record output in 2004, which meant
increased profit potential at US spot power prices. Overall, 36% of plants
generated power at a cost of below 1.5 cts/KWH in 2004, up from 29% in 2003,
and 80% produced for under 2 cts, up from 71% in 2003. No plant reported
spending more than 3 cts/kWh to produce power.

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