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Category Archives: New Reactors

Counting the Costs on Advanced Reactor Reviews

Anna Bradford, Chief
Advanced Reactors and Policy Branch
Office of New Reactors

We’re continuing to examine topics from the recent two-day public workshop we jointly hosted with the Department of Energy regarding non-light water reactor designs. One topic getting a lot of attention is the possible costs for NRC reviews of applications for these designs.

Last month’s workshop included presentations on the NRC’s experience licensing non-light water designs, as well as discussions of proposed advanced reactor designs.

Last month’s workshop included presentations on the NRC’s experience licensing non-light water designs, as well as discussions of proposed advanced reactor designs.

For instance, some people interpreted a DOE presentation on the Next Generation Nuclear Plant project as saying it costs $800 million to receive a final certification or license from the NRC. The bulk of that $800 million, however, falls outside of NRC fees and would be made up of the designer’s costs to develop and test its design to ensure that it works as planned.

In other words, the designer does not pay the NRC $800 million to review a reactor design. Looking at recent reviews of large light-water reactors, we see designers spent approximately $50 – $75 million for NRC fees to certify their designs.

A recent Government Accountability Office assessment, “Nuclear Reactors: Status and Challenges in Development and Deployment of New Commercial Concepts” says costs can be “…up to $1 billion to $2 billion, to design and certify or license the reactor design.” A different portion of the GAO report, however, pointed out most of these costs aren’t attributable to the NRC review. The largest part of the price tag would be research, development, and design work to develop and test a new reactor design.

We can also examine information from the public workshop on design development costs versus NRC review costs for the developer of a new small modular reactor design. The company said that of approximately $300 million in design investment to date, only $4 million of that amount (or slightly more than 1 percent) is from NRC fees for several years of pre-application interactions with the agency.

Here’s something to keep in mind: NRC review costs depend on the quality and maturity of the applicant’s information. The NRC always aims to efficiently and effectively review designs. Incomplete or inadequate information will very likely increase costs, however, since the NRC will spend more time and effort getting the data necessary to determine whether the reactor could operate safely and securely.

Everyone benefits from a common understanding of NRC costs as we discuss the next generation of reactor designs. The NRC’s website has more information on how the agency is approaching advanced and small modular reactor designs.

The Inspection Beat Goes on at Watts Bar Unit 2

William Jones
Director of the Division of Construction Projects
Region II

An NRC Construction Resident Inspector watches TVA staff install the reactor pressure vessel inside the containment building at Watts Bar Unit 2.

An NRC Construction Resident Inspector watches TVA staff perform construction activities at Watts Bar Unit 2.

The NRC has issued an operating license to the Watts Bar Unit 2 reactor in Tennessee, bringing the U.S. to 100 commercial reactors. The plant’s owner, the Tennessee Valley Authority, had restarted construction of the incomplete reactor in 2007 and updated its application for Unit 2’s license in 2009.

Since 2007, NRC inspectors have devoted more than 200,000 hours to supporting the agency’s decision that Unit 2 qualifies for a license. There’s more to do, however, before Unit 2 starts splitting atoms and generating electricity, and the NRC’s going to keep an eye on all of that.

The NRC’s two permanent Resident Inspectors at Watts Bar have another full-time resident inspector and additional regional inspectors on site during this period. The inspectors and NRC management follow a well-defined process to monitor a plant as it starts up for the first time.  One of the most obvious steps we’ll monitor is when TVA loads the uranium fuel into the Unit 2 reactor.

Once Unit 2 is ready for the initial reactor startup, the NRC staff will verify TVA has properly calibrated the instruments that monitor the chain reaction even at the lowest sustainable level. The plant operators must also show they can manually shut off the chain reaction. When all those steps are done, the NRC inspectors will watch the operators’ actions as they let Unit 2 start splitting a very small number of atoms.

The next step involves testing the reactor at very low power levels. The chain reaction is affected by changes in coolant water temperature and chemicals in the water. The NRC inspectors will examine the low-power tests to ensure the plant has properly measured changes in the reaction.

As each of these tests is passed, Unit 2 will increase power in small steps and examine the reactor’s response to abnormal events. For instance, if the plant’s turbine stops running the reactor’s heat has lost its normal outlet, so the reactor must shut down. The reactor must also respond properly to shutdown commands from alternate control stations and a simulated loss of power from the electric grid.

If TVA successfully completes all of these steps, Unit 2 will be ready to add about 1,100 megawatts to the electric grid in the Southeast. During this entire process, the NRC’s inspectors will also be gathering and analyzing the information needed to gauge Unit 2’s safety performance under the agency’s Reactor Oversight Process. This process will guide NRC actions at Unit 2 as long as the plant continues to operate.

Counting the Steps to a Final Watts Bar Unit 2 Decision

Jeanne Dion
Project Manager
Office of Nuclear Reactor Regulation

The NRC’s Commissioners have given the staff the authority to issue the Tennessee Valley Authority (TVA) a full-power operating license for Unit 2 at the Watts Bar nuclear power plant site in Tennessee. That permission has some strings attached, however, so we’re still months away from our final licensing decision.

wattsbarconstructionsriIf TVA is issued the license, Watts Bar 2 will be the first U.S. nuclear power plant to start operating since 1996, when Watts Bar 1 came online. TVA still has to satisfy the staff that several regulatory requirements for safe operation of Unit 2 have been met. We’re finishing up the licensing and inspection activities we need to conclude TVA is ready to load fuel and operate the reactor, which is near Spring City, Tenn.

We have to be satisfied not only that Unit 2 is safe to operate, but also that TVA can safely transition to operating two reactors at the site. We’re completing a few licensing actions needed to support dual-unit operation at Watts Bar. TVA also has to pass our remaining operational readiness inspections.

Other upcoming milestones include getting a recommendation from the NRC’s Region II Administrator, who has oversight responsibility for all inspections performed at Watts Bar 2. We also need to issue a couple supplements to the reactor’s Safety Evaluation Report.

TVA’s progress in completing construction and testing of Watts Bar 2 will directly influence our completion of the milestones. We may be able to make a licensing decision later this year. TVA has said repeatedly, however, that the actual operating license date depends on several factors and could shift as the final months’ work is completed. While we take TVA’s schedule into consideration for planning our licensing and inspection work, our priority is always on ensuring safety.

If we conclude Unit 2 is safe and ready to receive a license, TVA will still have to successfully complete several tests, including running the reactor at gradually increasing power levels, before the reactor can provide electricity to the grid. The NRC website has more information on the past few years of Watts Bar Unit 2’s licensing and inspection activities.

Listen In On Our Watts Bar Unit 2 Meeting with TVA

Jeanne Dion
Project Manager
Office of Nuclear Reactor Regulation

The NRC’s been closely observing the Tennessee Valley Authority’s work in completing Unit 2 at the wattsbarWatts Bar Nuclear Plant near Spring City, Tenn. Our meeting tonight will discuss where TVA stands in its effort to get an operating license for Unit 2.

If you can’t make it in person, we’re offering a teleconference and Web-based access to the meeting presentation. You can get the phone and webinar details from me or my NRC co-worker Christopher Even. For those who can attend, we’ll be available to answer questions and discuss issues with local residents and interested members of the public.  

During the meeting we’ll lay out the inspections and licensing activities the NRC must complete before we could decide whether Watts Bar 2 qualifies for an operating license. Some of our senior managers will explain how we’ve reached this point and what we need to see before we could conclude that the plant is safe to operate.

While we’re still reviewing a few issues, all the information we’ve seen so far indicates TVA is on track to meet the safety and security requirements for a reactor operating license.

If we issue Watts Bar Unit 2 an operating license, TVA would still have to load fuel and begin a series of tests during plant startup and a gradual increase in power output. The NRC would continue inspecting and overseeing the completion of these startup activities prior to Unit 2 generating full power and starting commercial operation. If licensed, Unit 2 would be the first plant to begin commercially operating in the U.S. since Watts Bar Unit 1 started in 1996. For more information please visit the NRC public webpage on Watts Bar Unit 2.

Watts Bar – Making History In Yet Another Century

Jeanne Dion
Project Manager
Watts Bar Special Projects Branch

Unit 1 at the Watts Bar Nuclear Plant in Spring City, Tenn., has a claim to fame as the last U.S. commercial nuclear reactor to come online in the 20th century. Now, the Tennessee Valley Authority aspires to have its sister reactor (Watts Bar Unit 2) make its own historic claim.

Numerous cranes helped complete construction of the Watts Bar Nuclear Plant Unit 1 containment building in front of the plant’s cooling towers in 1977.

Numerous cranes helped complete construction of the Watts Bar Nuclear Plant Unit 1 containment building in front of the plant’s cooling towers in 1977.

If the NRC concludes that the reactor is safe to operate and approves its operating license next year, Watts Bar Unit 2 could become the first new commercial nuclear reactor to come online in the U.S. in the 21st century.

To understand a little of the history of Watts Bar Nuclear Plant, let’s rewind to a time when Schoolhouse Rock premiered and the first mobile phone call was made in New York City — a time predating the NRC. In 1973, the Atomic Energy Commission greenlighted construction of Watts Bar Units 1 and 2 under the “two-step licensing process,” where construction permits and operating licenses were issued separately.

In 1985, construction quality issues at its plants caused TVA to stop work at both Watts Bar Units. Eventually, TVA resolved the issues and completed construction of Unit 1, and the NRC issued its operating license in 1996.

Fast-forward to more recent activities. TVA decided in 2007 to reboot the Watts Bar Unit 2 construction and licensing process. They submitted an update to their original license application to the NRC in 2009.

Other recent applicants have elected to use the combined license application process, where we issue a single license to both construct and operate a nuclear power plant at a specific site. However, because of the unique history of Watts Bar Unit 2, TVA chose to continue under the two-step licensing process. So, NRC staff developed a regulatory framework and established a licensing approach tailored specifically to the project.

We updated our construction inspection program associated with the two-step licensing process to provide guidance that reflects current NRC practices. For example, the NRC staff identified areas for further inspection at Unit 2 by screening applicable communications, allegations and other open items in the review.

The NRC staff also developed inspection guidance specific to TVA’s refurbishment program, which replaces or refurbishes systems and components at Watts Bar Unit 2. TVA’s resolution of key safety issues and the continued progress of construction inspection activities drive our review schedule.

If the operating license is issued next year, the NRC’s job doesn’t just end. We’d continue to inspect start-up testing required for power ascension and to oversee that Unit 2 transitions into the NRC’s Reactor Oversight Process before it can begin producing commercial power.

And, of course, the Resident Inspectors, the agency’s eyes and ears at the plant, would continue to carry out day-to-day inspection work to ensure safety and security is monitored and inspected during licensing and throughout the transition to commercial operation.

For more information about the Watts Bar Unit 2 project, visit the NRC’s website. There will be a Commission briefing Oct. 30 at 9 a.m. on the license application review. You get details about the briefing from the meeting notice. We’ll also do a live webcast.


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