Columbia Nuclear Generating Station in Washington State |
Cross-posted to Energy Trends Insider.
Robert McCullough has an Op-Ed in the Seattle Times titled "Our
future is in green energy not aging, costly nuclear plants" that
rebuts an earlier Op-Ed by James Moss supporting Washington State's single
nuclear power station. McCullough:
"I
read James Moss’ recent Op-Ed with interest and some amusement. The interest
reflects whether Washington’s aging and very expensive nuclear plant is a good
use for our energy dollars. Moss is doing a good job for his union constituents
and takes a position I normally support. Sadly, we may not be on the same side
regarding the costs."
I read Robert
McCullogh's Op-Ed above with interest and some amusement.
We
recently reviewed the cost and value data for our Northwest clients and
found that ...
Which got me to wondering who these
Northwest clients might be? Neither the Times article nor the study he
references says. But based on the Wikipedia
article about this power station, I'm pretty sure I know who it is:
In December 2013, Robert McCullough, ... published
an analysis of the economics of Columbia Generating Station commissioned by
Physicians for Social Responsibility, a group that advocates eliminating the
use of nuclear power.
Shouldn't the Times have divulged
that information so readers would know he was being paid by a well-known
antinuclear energy group? And don't let the group's name (Physicians for Social Responsibility), which is an argument from
authority, fool you. It would be a big mistake to ask a physician to fix
your brakes. I'm married to a physician. I know a lot of physicians. Physicians
don't know any more about nuclear energy than any other lay person ...maybe less.
His antinuclear bias is further exposed
by his repetition of old, dog-eared, antinuclear talking points. Below I will
show you where he isn't being completely accurate with us using my tried and
true (and mostly arbitrary) veracity score system with a rating of ten defined
as a cold hard fact all the way down to one, which can be defined in any number
of colorful ways.
"This
is a relic of an energy plan begun in the 1960s and built with technology from
the 1970s. It is an 8-track tape player in an iPad world. "
Snappy ...but there's something
wrong with his metaphor. Analogously, that would make hydro electric dams, some
built in the 1930s, phonographs in an iPad world ...yet together, this 8-track
and phonograph continue to churn out 85% of Washington State's low carbon electricity. Natural gas
certainly isn't new technology. That leaves wind and solar at 5.6 percent and some
tiny fraction of a single percent respectively, and neither can produce the
steady stream of energy through every night and day that is required of
baseload energy suppliers. Wind and solar, being both intermittent and
nondispatchable, are best described as fuel savings devices for natural gas
power stations, which is fine, but their roles are limited to that. Veracity score = 2 for
ignoring hydro when making that analogy.
"The
prices of electric power have plummeted over the years as renewables have
sharply declined in price, natural gas is facing a glut..."
He just told us that lower cost
renewables are driving this nuclear power station out of business. Is he
talking about solar? Washington State only gets a tiny fraction of a single
percent of its power from solar. So, we can eliminate solar from the list of
nuclear competitors.
Is he talking about hydro? Hydro
has been around longer than nuclear. Because it is already tapped out, you
can't really expand it any further to replace nuclear, so we can eliminate
hydro from his list.
"...and new technologies from LED lighting to rooftop solar have arrived."
I hate to break the news to him but, new technologies like LEDs don't
supply power (see The
Death of the Fluorescent Shop Light). They save power, regardless of what
made that power: wind, solar, hydro gas, or nuclear, so that's a moot point
when it comes to nuclear energy. Veracity score = 0.
When he said that natural gas is facing a glut he
really said it all. America is drowning in dirt cheap natural gas. Nuclear is
being given a run for its money by a fossil fuel, not renewables. And this is
relevant for two reasons, climate change and the fact that natural gas prices
will one day go back up.
"Over
the past four years, the market price of power that is produced from CGS has
been only a bit more than half what it cost to produce it. We recently reviewed
the cost and value data for our Northwest clients and found that ratepayers had
paid more than $500 million more in cost than the energy was worth since 2012.
We know that given the lower prices today, running the plant for the next four
years will cost the region $800 million more than the value of the power it
produces."
Keep in mind, he's an economist.
Have you heard this joke?
A mathematician, an accountant and an economist apply for the same job.
The interviewer calls in the mathematician and asks "What do two
plus two equal?" The mathematician replies "Four." The
interviewer asks "Four, exactly?" The mathematician looks at the interviewer
incredulously and says "Yes, four, exactly."
Then the interviewer calls in the accountant and asks the same question
"What do two plus two equal?" The accountant says "On average,
four - give or take ten percent, but on average, four."
Then the interviewer calls in the economist and poses the same question
"What do two plus two equal?" The economist gets up, locks the door,
closes the shade, sits down next to the interviewer and says, "What do you
want it to equal"?
This reminds me of the corn ethanol debate where various
economists estimated it was costing billions or saving billions. Read this
piece about the cost
of wind in Washington State.
And to make things worse for McCullogh, here is what else
that Wikipedia article said:
In late 2012 the Bonneville Power
Administration and Energy Northwest came together to analyze the financial
value of Columbia in light of low energy prices in the wholesale electricity
market and historic low fuel costs for natural gas-fired power plants. The
agencies studied three scenarios and concluded, in April 2013, that Columbia’s
continued operation was the most cost-effective option for consumers.
In April 2013, Energy Northwest
commissioned a third-party study by IHS Cambridge Energy Research Associates, a
firm with a 75-year reputation for independent expertise in the fields of
energy, economics, market conditions and business risk. IHS CERA came to the
same conclusion as the April 2013 joint BPA-EN study.
In 2013 the Columbia Generating
Station set a record for electricity generation during a refueling outage year
– 8.4 million megawatt hours of electricity sent to the regional power grid. In
2012 – a non-refueling outage year – Columbia generated a record 9.3 million
megawatt hours of electricity for the regional power grid.
In January 2014, the Public Power
Council, representing Northwest consumer-owned utilities, examined the competing
market assessments and said they found no compelling evidence that ceasing
operation of Columbia is economically advisable for the region. The PPC
assessment supported public statements by BPA affirming Columbia’s provision of
unique, firm, baseload, non-carbon emitting generation with predictable costs
for the region’s ratepayers.
The Public Power Council observed in
February 2014 that the variable cost of Columbia operations in recent years
were slightly above spot market energy prices. However, the council stated that
a single unanticipated shift in the markets “can easily wipe out years of
anticipated benefits” gained from replacement power.
The council referenced the Western Energy Crisis of 2000-2001. During
that relatively short energy crisis, according to the council, the cost benefit
of Columbia’s power “dwarf[ed] the modest benefits that would have been
achieved” through replacement power. “In 2001 alone the operation of Columbia
Generating Station compared to the market saved Bonneville Power Administration
ratepayers $1.4 billion,” according to the council.
As I've said many times before, I'm a big fan of solar, and
also a big fan of tax rebates ($3,000 for first Prius, $1,800 for high
efficiency furnace, $7,500 for electric car).
Solar gets the 30% Federal Income Tax Credit, which for my
home would put about $18 thousand dollars of my fellow ratepayers money into my
pocket if I chose to replace all of my electricity generation with solar.
If I chose to install equipment made in Washington state, I
get the state Production Incentive, which would put roughly $5 thousand dollars
of my fellow ratepayers money into my pocket.
The sales tax exemption would put roughly another $6
thousand dollars of my fellow ratepayers money into my pocket.
Net metering, which is included
in Washington State's list of solar incentives, would pay me a
retail rate for energy produced by my solar power station as opposed to what a
commercial solar power station would get wholesale, putting roughly $500
dollars of my fellow ratepayers money into my pocket every year, so for a 25
year panel life span, that would be 25 x $500 = $12,500.
$18,000 + $5,000 + $6,000 + $12,500 = $41,000.
He gets a veracity score of 3
because he makes no mention of the subsidized cost of renewables.
"Put
another way, we could pay each employee of the nuclear plant a $500,000
severance and still have money left over for wind generators and solar panels.
Put yet another way, and assuming his study is accurate (and
the quotes from Wikipedia above strongly suggest why it isn't), $800,000,000/4
years/7 million people = $28.5 In
theory, and based on the calculations of an antinuclear economist, it's costing
Washington State citizens $28.5 a year,
$2.38 a month, to prevent the emissions
from the natural gas and coal that would replace it if it were shut down. Veracity score = 2 for
the biased way he chose to put the costs into perspective.
"Why
is the plant so expensive? It is in a poor location — competing with far less
costly renewable resources like wind and hydroelectricity"
It
isn't and expensive relative to solar, it most certainly is not. I used the
NREL solar cost estimator to see if I would save money or lose money by
replacing my grid power with solar. When excluding subsidies, I found that I
would lose $30,000 over the life of the panels. It's expensive relative to
natural gas and hydro, of which one is a greenhouse gas emitting fossil fuel
and the other can't expand to replace nuclear respectively. Wind is, in reality,
a hybrid component of a natural gas grid serving to reduce gas bills (or water
flows with hydro) when it is blowing.
Hydro
has always been here. It cannot be expanded. It has always existed along with
other energy suppliers like gas, coal, and nuclear, simply because it can't do
it all, ergo, claiming it should replace nuclear is a deception. It can't
expand any further. We do not want to dam anymore rivers, and in fact, we have
been tearing dams down. Veracity
score = 0.
Look
at the following pie chart. Assuming hydro is already being fully utilized, you
cannot expand the use of wind unless you also expand the use of natural gas
because natural gas power plants take over when the wind dies. The wind and gas
wedges have to expand which will reduce emissions as long as the coal wedge
shrinks instead of the nuclear wedge. If the nuclear wedge is replaced instead
of coal you will get a huge increase in emissions. Veracity score =2.
"When
the wind blows and the rivers surge, we have to turn off these resources, since
the nuclear plant can’t adjust its output like alternative-energy resources.
"
Except
utilities can simply reduce hydro output. On some occasions, utilities have
been known to reduce wind instead of hydro. Get rid of the coal if you want to
expand gas, but getting rid of nuclear will simply increase emissions for the
reasons stated above. Veracity
score = 2.
"We
have no storage solution for the nuclear waste that is being stored in its
elevated spent fuel pool and in dry casks outside the plant.
This
is one of those dog-eared antinuclear talking points that expose his
antinuclear bias that I mentioned earlier. The nuclear waste issue has been
blown way out of proportion by antinuclear energy organizations. It is, in
reality, trivial. Read Making Mountains Out of MoleHills. Veracity
score = 2.
"The
plant is a singleton, rather than having twin units — there are strong
economies of scale for twin plants that share repair and operating resources.
"
The
above argument is irrelevant if emissions reductions take precedence over
expansion of natural gas at the expense of a lower carbon source to support
wind. Veracity score = 4 because the argument has chosen to downplay the importance of
reducing greenhouse gas emissions.
"However,
even more efficient, better-located nuclear plants are closing across the U.S.
— recent announcements indicate plants closing in Illinois, New York,
California, Massachusetts, and Nebraska. These plants are not closing because
they are ailing. They are closing because the costs of aging nuclear is simply
much higher than cleaner and simpler technologies."
He is
insinuating that these much simpler technologies are wind and solar. But they
are not what's giving nuclear a run for its money. It's natural gas, which is a
simpler technology, so at least he got that part right, but it's also a
greenhouse gas emitting fossil fuel. Veracity score = 3.
"The
Nebraska closure is a case in point. Last week, the Omaha Public Power
District, a public power entity comparable to Energy Northwest, announced the
closure of the Fort Calhoun Nuclear Station on economic grounds. This was a
thoughtful, well-considered opinion that weighed the costs over the rhetoric."
Riiiight
...weighed the costs over the "rhetoric" What rhetoric would that be? Climate change?
This is another example of his antinuclear bias that I mentioned earlier. Everywhere nuclear has closed, emissions have
spiked because natural gas (a greenhouse gas emitting fossil fuel) has taken
over. Veracity score = 3.
"At
the top of this piece, I indicated that Moss’ Op-Ed had some amusement value.
Energy Northwest several years ago purchased a multiyear supply of the
dirtiest, most expensive and most carbon-intensive nuclear fuel in the world.
The fuel is from the now closed, bankrupt and decaying facility in Paducah,
Ky., which was one of the largest emitters of chlorofluorocarbons (CFCs) —
hundreds of times more harmful than carbon — and was powered by two very dirty
coal stations."
...and
another of those dog-eared antinuclear talking points that expose his
antinuclear bias that I mentioned earlier. The Paducah plant ceased operations
three years ago. The emissions created making that fuel is a drop in the bucket
compared to the emissions saved by the nuclear power station, and he knows
that. Solar panels, mostly made in China, are not created using very dirty coal
power? Where is the power used to make wind turbines and the concrete pads they
sit on coming from? Veracity score = 2.
"This
is a case of selective accounting by Energy Northwest — the plant emits no
carbon using the nuclear fuel, but emits a great deal by using carbon-intensive
fuel."
...says
the zen master of selective accounting. Yet another dog-eared antinuclear
talking point. All energy sources emit a great deal of emissions by using
carbon-intensive fuel to make, install, and maintain their parts. That's what
life-cycle analysis is for. And nuclear power produces less lifecycle emissions
than solar. Veracity score = 1.
"The
bottom line is that we can afford a much better mix of resources — at lower
cost — than this aging nuclear station. As the Omaha Public Power District put
it, it is time to rebalance our generating portfolio for a less expensive and
less risky future."
Omaha is about to have a spike in greenhouse gas emissions.
As for that risky part? It's another dog-eared antinuclear talking point.
Nuclear is one of the safest sources of energy we have.
Veracity score =2.
Conclusion
Average veracity score = 1.8 out
of 10.
Now look back over this post and compare it to the short
piece allowed in a newspaper. Newspapers really should stick to news, or go out
of business. They are not doing the world any favors with these Op-Ed pieces.
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