The Flood Next Time

For nuclear power plants facing aging dams and rising seas, is a captured regulator the last finger in the dike?

Fort Calhoun nuclear plant surrounded by flood waters
Nebraska’s Fort Calhoun nuclear power plant surrounded by flood waters from the Missouri River in June 2011.


At just before 3 local time on the afternoon of March 11, 2011, the operators of the Fukushima Daiichi nuclear power plant already had a problem. An earthquake measuring 9.1 on the moment magnitude scale—the largest to hit Japan since at least 1900—had damaged key systems at the facility, an emergency greatly compounded by the region-wide power outage caused by the massive temblor.

A station blackout (or SBO, as termed by an industry intensely fond of acronyms) at a nuclear power plant is, by design, cause for concern. Light-water reactors—the category that includes the units at Fukushima Daiichi and every one of the 98 still-operating reactors in the United States—function inside a kind of paradox: in order to safely generate a dependable output of electricity, they require a steady input of electricity. A plant’s meters and monitors need electricity; so, too, do many of the motors that raise and lower large, neutron-absorbing boron control rods used to regulate the atomic activity inside a reactor core. And, perhaps most critically, the systems that circulate cool water (crucial for expelling some of the intense heat generated by the fission reaction) through the nuclear reactors, as well as through pools where decades of used but still highly radioactive “spent” fuel is stored, depend on electric-powered pumps.

The SBO at Daiichi triggered a back-up: several diesel-powered emergency generators that would provide enough electricity to run the cooling systems until power could be restored (as long as there were fuel for the generators). But less than an hour later, a wave higher than a four-story building—the tsunami set off by the quake—swept over the seaside site and flooded the nuclear facility, knocking out most of the generators, which had been situated in the basement by General Electric, the plant’s designer.

Without electricity (what is called a “LOOP,” for “loss of onsite power”), the pumps stopped circulating the water, and without that circulation, the temperature inside the reactor cores quickly exceeded boiling. Within three hours, the tops of the zirconium-clad uranium fuel rods were exposed to air, starting a series of chemical reactions hot enough to free hydrogen atoms from their watery bonds. Despite the valiant efforts of hundreds of plant workers, intense heat and pressure built up inside the containment structures. Three reactor cores suffered complete meltdowns, and over the next few days, at least three powerful hydrogen explosions leveled containment buildings and shot plumes of radioactive gas and particulates high into the air, spreading contamination over land and sea. The rest is an ominous and still-evolving history Japan continues to battle nearly eight years on.

Of the currently operating civilian nuclear reactors in the US, scattered across 30 states, about two-thirds sit on the banks of rivers, lakes, or reservoirs. Add in plants on ocean shorelines, and the number of reactors adjacent to large, sometimes unruly bodies of water climbs above 80. But according to a whistleblower at the United States Nuclear Regulatory Commission (NRC)—backed up by information provided by regulators and watchdogs—more than a third of those reactors are either on sites that would no longer meet NRC flood risk guidelines for new reactor construction, or are vulnerable to flooding caused by dam breaks, swelling rivers, rising sea levels, or increasingly severe weather events.

It is that kind of foresight that was once considered the stock and trade of government regulators: examine the science, identify potential problems, and use the power and authority of the government to compel remedies and improve public safety. But in the wake of another Atlantic Hurricane season—where several nuclear plants had to reduce output or (in one case) shut down completely because of the threat of “catastrophic” flooding—it is sobering to note that, while Fukushima has been analyzed and debated by nuclear operators and regulators, the lessons of Japan’s disaster have not sufficiently been taken to heart, nor put into practice. Be it because of debates over cost-benefit assessment or blatant examples of corporate sway, what seems on one level the minutiae of regulatory process are also part and parcel of what growing numbers of Americans see as ineffectual governance by a corrupt—and corrupting—swamp.

* * *

Soon after the start of the Fukushima crisis, the NRC established a panel, known as the Near-Term Task Force (NTTF), to review the disaster in Japan and recommend regulatory changes and plant upgrades to enhance safety at US nuclear facilities. Their findings—often shorthanded as the NTTF report, or the NTTF recommendations—were comprehensive (though not, in some critics’ eyes, comprehensive enough), touching on concerns from seismic reevaluations to emergency response, with lots of technical considerations in between—including dozens of pages on flooding and the LOOP accidents it can cause.

The report came out in July, and by October, the NRC had identified a small selection of the recommendations it considered top tier and requiring implementation “without delay,” as the Commission put it at the time. Central to many of those proposals were the hazards posed by flooding.

But it’s not as if the dangers of flooding were unknown to nuclear regulators (or the industry) before the cascading disaster at Fukushima Daiichi. In fact, at Duke Energy’s Oconee Nuclear Station (ONS) in the northwesternmost corner of South Carolina, regulators and plant owners had been debating the facility’s flood risk and flood preparedness for decades.

“The concern has been around in its current iteration since 2005 or -6, but it has been raised many times in the past,” said Larry Criscione, a reliability and risk analyst at the NRC since 2009. “It was raised in the ‘80s, it was raised in the ‘90s—I think it was raised in the ‘70s as part of [Oconee’s] initial licensing.”

Construction on ONS began in 1967, and its three reactors were all online before the NRC opened its doors in 1975. But documents provided by Criscione show that by 1977, the Commission had identified flood concerns at several plants licensed before the formation of the regulatory body. Oconee is one of them, and an alphabet soup of studies and recommendations—most notably the IPEEE (the Individual Plant Examination of External Events) for Severe Accident Vulnerabilities in 1991—requested its operators assess and plan for what the industry calls “beyond design basis events” (BDBEs), incidents more extreme or powerful than accounted for in a plant’s original design (of which the earthquake and tsunami in Japan later became prime examples).

Oconee is located on the shore of Lake Keowee, an artificial reservoir created by the damming of the Keowee River, and part of a system of dams built in the 1960s and ‘70s that also includes the Jocassee Dam, just 11 miles upstream from Keowee and ONS. What would happen should the Jocassee Dam fail—and just how likely that is to happen—is central to the debate over the flood preparedness at the nuclear plant. And it is central to the life of Larry Criscione.

* * *

That a dam failure would be a BDBE of dire proportions for ONS once seemed beyond debate. “As I understand it, the NRC’s assessment of the consequences of a flooding event at Oconee would be even greater than at Fukushima,” said Tim Judson, executive director of the Nuclear Information and Resource Service, a nuclear industry watchdog. Because Fukushima Daiichi was located on the coast, and prevailing winds blew an estimated 80 percent of the fallout out to sea in the first weeks of the disaster, much of central and southern Japan was spared the high levels of radioactive contamination seen in the prefectures immediately surrounding the failed nuclear plant. Still, more than 150,000 people had to be relocated from a 12-mile radius around Daiichi.

If the Jocassee Dam were to fail, the resulting flood would inundate Oconee with 12 to 17 feet of water in about five hours, according to Duke Energy’s own assessment, filed in the 1990s in response to the IPEEE, and referenced by Criscione in his report to the NRC. A station blackout would follow, and because Oconee’s backup plan involves hydroelectric power generated by the dams on Lake Keowee, and a break of the Jocassee Dam is projected to cause Keowee Dam failure, ONS would suffer a complete LOOP. With no electricity to run the cooling systems, all three reactor cores would melt down in eight to ten hours, and (and again, this is from Duke Energy’s report) the containment buildings would fail within three days. Radioactive contamination would head down river with the flood waters, and an airborne plume would engulf the university town of Clemson, 10 miles to the southeast, and then lay a blanket of fallout 300 miles eastward to the sea.

But at the time—a pre-Fukushima time—Duke argued that this nightmare scenario was so improbable as to not merit the kind of elaborate and expensive safety upgrades required to prevent it.

As Criscione explains it, the NRC evaluates Beyond Design Basis Events by two scales: one is the relative chance that a given event will occur; the other is the resulting danger once it does. For instance, the risk analyst told me, if a meteorite were to crash into a nuclear power facility, the results could be catastrophic, but the chances of a meteor strike are calculated to be so vanishingly small that plant operators are not required to guard against it.

“The term they use in nuclear is ‘credible,’” said Criscione, “you have to protect against credible threats.”

But try to find a place in the regulations where “credible” is defined. “You’ll never be able to,” Criscione told me. Instead, there is an unspoken range: In “the day-to-day business of the NRC, when things are less than one in a million [in any given year], you can make an argument they’re not credible; when they’re more than one in 10,000, they’re certainly credible.”

“When they’re in between,” Criscione continued, “that’s where the debates start to happen.”

“In a case like Fukushima, you see where that falls apart,” cautioned NIRS’s Judson. “The NRC would have very likely determined what happened at Fukushima was outside credibility range—less than one in a million—so therefore they wouldn’t have done anything about it.”

“Despite that,” Judson observed, “it happened, and the consequences are so great it outweighs the entire alleged benefit of the Japanese nuclear power program.” (After the quake and tsunami, one NRC commissioner reevaluated the risks at Fukushima, and determined they had been one in 1,000 in any given year. Or, to put it another way, TEPCO, the operators of Fukushima Daiichi, were lucky for 40 years, until the year they weren’t.)

In the case of Oconee, with the consequences of a Jocassee Dam failure originally agreed to be grim, Duke Energy debated the probability, placing it outside the “credible” one-in-10,000 chance. But by 2010, as Criscione’s NRC-sponsored analysis showed, it was Duke’s assessment that lacked credibility. Taking into account a broader data-set (paleological as opposed to solely the far-more-limited historical record) and the reassessment of critical infrastructure conducted by various US agencies (notably FERC, the Federal Energy Regulatory Commission) in the years after the September 11, 2001 attacks, regulators placed the odds of dam break causing a BDBE at ONS at one in 3,600—about the chance of drawing a straight in poker, as Criscione put it—or if projected over the remaining time on the plant’s license, there’s better than a one-in-200 chance of such an accident before ONS permanently shuts down. That’s not a certainty in any given year, said Criscione, but it is well above the NRC’s unspoken credibility threshold of one in 10,000.

And the NRC and Duke Energy were in the process of negotiating what should be done to address this now-understood-to-be-credible threat when, as Criscione, Judson, and other nuclear watchdogs see it, Fukushima changed everything.

* * *

When the NRC moved to adopt some of the NTTF recommendations (and only a subset of a subset of the report was ever considered by the Commission as formal rules), oversight of implementation was given to the JLD—the Japan Lessons-Learned Directorate (later expanded and renamed, replacing “Directorate” with “Division”)—a group that was supposed to hive off Fukushima-related concerns to allow “the rest of the NRC keep its focus on other important issues faced by the agency,” as JLD’s own web page put it. But almost inherent in that language is a segregation that puts anything dubbed a post-Fukushima upgrade into a new class of oversight—one that, to those on the inside like Criscione, did not meet the urgency of the risks at hand, nor the fanfare of the Commission’s own pronouncements.

As Criscione told me, Duke Energy “came to the NRC” soon after the start of the Fukushima crisis and argued that if there were going to be new rules derived from that disaster, Duke didn’t want to invest in upgrades at Oconee only to find they fell short of post-Fukushima recommendations.

On its face, said Criscione, “that was a reasonable request.” However, what it did in practice was move the Oconee case from staff who had been trying to address it for five years, who had a knowledge of the issues and the history of the debate, to personnel who were, according to Criscione, not only starting from scratch, but were led by “an industry apologist.”

“You’ve got to understand how the JLD operated,” Criscione explained, “the NRC really likes to see the industry fix its own problems.” It’s the nuclear industry that builds the power plants—the Commission just licenses them. The industry designs the plants, and the NRC reviews those designs. “We don’t tell them how to fix problems,” said Criscione, “we review their fixes to their problems to see if they’re accurate.”

When it came to post-Fukushima fixes, Criscione said, “we didn’t approach it with the attitude of ‘We’re the government, we’re going to decide what changes you need to make your plants safe.’ We approached it with the attitude of ‘You’re the plant owners, you prove to us that your plants are safe.’”

The lobbying arm of the industry, the Nuclear Energy Institute (NEI), came to the NRC with standards it had written to address post-Fukushima concerns like flooding and loss of onsite power events. “And,” as Criscione described it, given the general framework of how the NRC operates, “there’s nothing wrong with that.”

“The problem is that the person who was in charge at the JLD,” the one responsible for evaluating standards, the one who had the power to overrule the rest of the staff, as Criscione told me, “was actively seeking a job as a vice president at NEI.”

Criscione was not exaggerating. The NRC executive in question, Jack R. Davis, bragged on his LinkedIn page at the time (saved for posterity at the Environmental Archive) that his work at what was supposed to be the public’s nuclear regulator had “saved the commercial energy generation industry $1.6 billion,” and “achieved 80 percent reduction in the number of customers needing to complete mandated federal safety improvements.” Those Davis saw as his “customers” were in the energy industry, not the American people who were then paying his salary.

Davis didn’t get his job at NEI, but by 2016, he had landed an executive post at Entergy, one of the nation’s largest owners of nuclear power plants, and the company with the ignominious distinction of operating what the NRC has determined are the country’s three worst-rated nuclear facilities in terms of safety.

With respect to Oconee, the transfer of flood issues to the JLD resulted in a projected 17-foot flood being reevaluated down to a five-foot threat, which is coincidentally the height of a flood barrier built outside the plant in the 1980s. It was a coincidence that did not sit well with Criscione, who was charged with evaluating flood safety. In 2012, he forwarded his concerns to the chair of the NRC and to select members of Congress—information that eventually made its way to the environmental group Greenpeace and into a story in the Huffington Post.

The coverage caught the attention of the NRC’s inspector general, who, rather than act on Criscione’s allegations of lax oversite, opened an investigation into his sharing of official documents.

Criscione said he doesn’t believe he is currently under investigation by the Office of the Inspector General (NRC OIG), but he has also not seen a final report on his case, which he’s told is still under review.

* * *

Better than one in every four nuclear plants is at risk of a flooding event, according to Criscione, an event that could lead to a Fukushima-style disaster. With more than 20 reactors along the eastern seaboard vulnerable to hurricanes, flying debris, heavy rains, and massive storm surges, and dozens of others inland near swelling rivers and aging dams—all with a half-century of spent fuel rods stored nearby—the implications for the hundreds of millions of US residents that live near these reactors is at least unsettling. With climate change increasing the frequency and severity of flood-provoking events, the status quo should be unacceptable.

The NRC will tell you it has it all in hand. “Every US reactor site has completed its flooding hazard reanalysis,” Scott Burnell, the NRC’s public affairs officer, told me in an email.

Central to the post-Fukushima seismic- and flood-hazard analysis was something called a “walkdown.” The NRC “asked” US nuclear power plants “to perform a detailed inspection” of “their currently installed seismic and flooding protection features [and] ensure the features met current requirements.” Plant operators were also told to “identify, correct, and report any degraded conditions.” According to the NRC’s website, this phase was completed across the entire US nuclear fleet by November 2012.

But in March 2013, at Arkansas Nuclear One (ANO), a two-reactor facility 80 miles northeast of Little Rock, the accidental dropping of a 550-ton generator component in the truck bay caused enough shaking to rupture a water pipe. Water flooded the plant’s electrical switchgear, interrupting all power to one reactor, and partially disabling the second. Emergency diesel generators kicked in to ward off a bigger disaster, but the accident, which killed one plant worker and injured eight others, revealed that dozens of penetration points had missing or improperly installed seals.

Dave Lochbaum, the director of the Nuclear Safety Project at the Union of Concerned Scientists, contacted the NRC to express his grave concern about the quality of their plant walkdown program. According to Lochbaum, the NRC assured him that ANO was “the only plant in the country with an ineffective flood protection walkdown.”

But in January 2014, rains hit Florida’s Atlantic coast (“Not a monsoon or a once-in-a-blue-moon rain, but a thunderstorm,” Lochbaum said). At the St. Lucie Nuclear Power Plant, 70 miles north of Palm Beach, faulty storm drains caused a 55,000-gallon flood in an auxiliary building. Water penetrated improperly sealed electrical pass-throughs, disabling pumps needed for cooling one of the facility’s two reactors. “The penetration was about five feet off the floor—at eye level during a walkdown, had anybody only been looking,” wrote Lochbaum in an email.

“So, AFTER owners conducted NRC-mandated flood protection walkdowns, and AFTER the owners formally notified the NRC that flood-protection measures were adequate, those assurances were proven false by actual flooding,” Lochbaum wrote. “Apparently,” Lochbaum’s email surmised, “the walkdowns had been more for exercise than for verification of safety.”

The NRC’s industry-friendly approach also troubles Judson. The NIRS director detailed the case of New York’s Nine Mile Point—on the banks of Lake Ontario, 40 miles north of Syracuse—a site that is home to three nuclear reactors, including the oldest still-operating commercial reactor in the US (Nine Mile Point 1, which was commissioned in December 1969). Just last year, a swelling Lake Ontario came within a foot of triggering an “unusual event” (the NRC’s first level of emergency notification). Exelon, the facility’s owner, sprung to action—and applied to the NRC to change the standards so it wouldn’t have to declare an emergency unless the site was so flooded that workers couldn’t access the site by car.

That change was quickly approved by the NRC—an alarming lack of oversite, according to Judson, given the potential for widespread environmental disaster. “Lake Ontario is the drinking-water source for 9 million people,” he said.

* * *

In addition to the examples above, there are a number of sites that worry the experts—among them: Quad Cities Nuclear Generating Station, in Northern Illinois, on the banks of the Mississippi River, Dresden Generating Station, 60 miles southwest of Chicago, at the head of the Illinois River, and Pilgrim Nuclear Power Station in Plymouth, Massachusetts, on the shores of Cape Cod Bay, less than 40 miles south of Boston. What these sites have in common, beyond their remarkable age (online 46 years, the reactors at Quad Cities are the youngest of this group), is their acute vulnerability to the perils of a warming planet.

Riverine flooding, more frequent and more severe this century and unrelated to any dam failures, leave Quad Cities and Dresden in a precarious place almost annually. (Precipitation in this region is expected to increase 37 percent by 2070, according to a NOAA—National Oceanic and Atmospheric Administration—study.) For Pilgrim, a facility that has seen numerous weather-related shutdowns in recent years, a category 5 hurricane could elevate sea level by 22.4 feet, according to plant-owner Entergy—giving the hundreds of tons of irradiated fuel stored outside in concrete and steel “dry casks” about two-and-a-half feet of clearance. But when conservative estimates project a general sea-level rise in the Bay of three feet by 2065, and possibly six feet by the end of the century, the site has less than no margin for error.

Even a partial submersion of a dry cask could block vents, interrupting its convection-dependent cooling mechanism, according to Kevin Kamps, radioactive waste specialist at clean-energy advocacy group Beyond Nuclear. Depending how long this went on, the integrity of the fuel and the steel liner could be affected.

But of course, as perilous as it is for the casks, lined up on a concrete pad less than a football field’s length from the shore, the plight of Pilgrim’s spent fuel pool, filled to over three times its design capacity, worries watchdogs more. Like with all the other reactors, a prolonged interruption of power means a “loss of cooling accident” (LOCA—yes, this has an acronym, too), with limited time before the tightly packed fuel assemblies boiled off their pool and caught fire, potentially covering northern New England with many times the amount of radioactive cesium-137 released by the Chernobyl disaster.

Pilgrim is scheduled to go offline for good this spring, but the spent fuel is expected to remain on site for decades. This was troubling enough to Senator Edward Markey that he contacted the NRC last April asking how the Commission will factor in global warming. “It is imperative,” the Massachusetts Democrat wrote, “that these plants and the NRC regulations fully consider the impacts of climate change on dangerous nuclear waste.”

* * *

As far as the NRC is concerned, it has. “Every US reactor site performs relevant analyses based on location-specific parameters,” wrote the NRC’s Burnell in response to my question about the regulator’s assessment of climate-based changes in risk. In practice that means that predictions for things like precipitation and sea level rise are factored back into the NRC’s models for assessing credible risk. Well. . . sort of.

“My sense is there’s really no uniform methodology,” said Criscione. As to NRC requirements for what needs to be in an assessment, say, for flood risk, Criscione told me, “it’s more of a style guide.”

This wasn’t always the case. “The NRC used to have more deterministic standards,” said Judson, “and there’s a debate to be had about whether that regulatory process was better at safety outcomes than the one they’ve adopted since.” Before about 20 years ago, the process, according to Judson, was more open to the public. “There was a time when the public was able to raise safety allegations with the NRC,” he said, noting instances at several reactors in New England. “The NRC was forced by public acrimony, and in some cases by Congress to step in and regulate.”

Today, under what is called “probabilistic risk assessment,” nuclear plants are expected to meet performance metrics, and that is then weighted with “risk-informed regulation”—the system that evaluates whether a threat is credible enough to merit safety upgrades.

The shift wasn’t just academic. Under deterministic assessment, reactors in Connecticut, Illinois, Maine, and Oregon were taken permanently offline or forced to make significant improvements. But that era, Judson told me, “is largely gone.”

“There were no reactor closures in the US between 1998 and 2013,” he said.

And since 2013, with the shuttering of facilities in Wisconsin, Vermont, California, and New Jersey, as well as Nebraska’s once flood-ravaged Fort Calhoun—and with more expected to close in the next couple of years—could that be evidence of Fukushima-inspired regulatory vigor? Only tangentially. The past decade has also seen a major shift in the energy market. With the fracking boom creating a surplus of natural gas, and the cost of wind and solar generation continuing to fall, nuclear power, which was never able to come anywhere close to its atomic-age promise of being “too cheap to meter,” grew increasingly uncompetitive.

What would have been an affordable safety upgrade 10 years ago is now financially untenable. “Regulations that would have been something minor in the 2008 timeframe, would certainly shut down a plant today in some markets,” Criscione told me, adding, “I think the agency has recognized that, and I think they’ve kind of caved in to some of the economic pressure that the utilities are seeing.”

“Ultimately, it almost always comes down to money,” agreed Judson. “If it passes the ‘credible’ threshold level, the NRC will determine the possible impact of the event and weigh that against what the cost of remedying it or preventing it would be—and they make a determination from that point about whether the cost is justified.”

The NRC, for its part, rejects the views of the whistleblower and the watchdog. “Plant costs were not taken into consideration” on “post-Fukushima Orders,” wrote Burnell, and “none of the plants that have recently either permanently shut down, or have announced plans to do so, asked for financial-based relief from post-Fukushima requirements.”

Except that they have. Pretty explicitly. And it was granted. Pretty explicitly.

Almost exactly a year before Burnell sent me his statement, the NRC granted a request by Entergy to waive post-Fukushima requirements for their Pilgrim nuclear plant, including improvements to vents that could potentially relieve reactor core pressure in the case of a loss-of-power/loss-of-cooling event, new seismic regulations, and, of special note here, new flooding regulations. All this for a plant identical in design to the failed reactors at Fukushima, a plant that is one of the three-worst rated in the US, and a plant that was revealed in a leaked 2016 internal inspection memo to have a staff that is “overwhelmed by just trying to run the station.”

The NRC will counter that Pilgrim’s “operational lifespan”—Entergy has announced plans to shut it down by June—is too short to complete the upgrades. But the Commission granted Pilgrim a 20-year license extension in 2012, meaning regulators and plant operators had thought plant operations could continue through 2032. The reason the plant is shuttering early is because Entergy felt it was not financially viable to maintain it.

Strangely, though, at the same time Entergy was told it would not have to invest in post-Fukushima safety improvements, Pilgrim was starting an expensive refueling cycle, which can require hundreds of extra plant workers and take the plant off line for a month. If regulators had declined to grant the waiver, if Pilgrim had been required to begin plant upgrades to stay open, would Entergy have spent on a refueling that gives their reactor an extra two years of generating power?

Mary Lampert, a longtime environmental activist and the director of Pilgrim Watch, told the Boston Globe in 2017 that the NRC was making an industry-friendly gamble. “Sadly, it’s financial safety rather than public safety,” she said.

* * *

It’s a ratio that bears all the hallmarks of what is called “regulatory capture”—a government agency so close to the commercial sector it regulates that it considers the industry’s interests over the public’s. But with the NRC, it goes a step further.

“Unlike many other federal agencies, the NRC’s continuation is dependent on the perpetuation of its industry,” said Judson. “If nuclear power goes out of business, and reactors shut down, the NRC’s mission starts to drain away.”

(Of course, if the NRC took an interest in nuclear plant decommissioning, they’d have at least another fifty years of work to do. But that is clearly not their inclination.

“The NRC staff concluded that there is no need for regulatory action at decommissioning reactors in light of lessons learned from the Fukushima accident,” wrote Burnell.

Judson put it more starkly: “There is no oversite” at a non-generating plant. “During decommissioning, there are basically no inspections by NRC.”

“Something really bad would have to happen for NRC to send inspectors to a decommission,” he said.)

Perhaps nothing demonstrates the regulator’s deference to the industry in the post-Fukushima era quite like something called FLEX (which is amazingly, despite it always being spelled with all caps, not an acronym). “FLEX,” as the NRC’s Burnell explained to me in an email, “is the industry term for its approach to complying with the NRC’s Mitigation Strategies Order of March 2012 … which the NRC has reviewed and found acceptable.”

But another way to look at FLEX is the way watchdog Judson does: “The thing that the NRC has allowed that the industry is taking credit for, but that aren’t actually real requirements.”

FLEX, as loosely explained in an illustrated web page from the NRC, allows nuclear plant operators to meet LOOP events with three phases of emergency equipment. The first involves the batteries and diesel-powered generators that are part of the backup systems at most US plants—the systems that failed so dramatically at Fukushima Daiichi (as discussed, Oconee does not use diesel generators, relying instead on hydroelectric power from nearby Keowee Dam). The second is portable equipment stored on-site at a nuclear plant that is supposed to take over when the phase one, design-basis backups fail or are exhausted. The third phase of FLEX, according to the NRC-sanctioned industry plan, is backup equipment stored off site, at two industry-maintained “response centers” in Memphis, Tennessee, and Phoenix, Arizona, which can be moved to a faltering reactor “within 24 hours.”

“It’s the sort of thing where OK, sure, it might be value added,” Judson said, “but it’s not part of the design basis of the reactor, and not part of what the NRC can easily regulate.” In fact, while Burnell told me the NRC has inspected the response centers, that is not the same thing as it having to meet an agency rule.

“It’s not a requirement,” Judson observed, “it’s something that [the industry’s] doing voluntarily outside of the regulations.”

And the moving of that equipment to a troubled site also exists outside the regulatory process. “The industry has established standing contracts to airlift phase three cargo to airports close to reactors, and additional contracts (including helicopters) to bring the phase three cargo to a site,” said the NRC’s Burnell, again relying on industry assurances. (And when asked for clarification, Burnell told me that the cargo aircraft were all private contractors, while the helicopters could be private or military, depending on the nuclear facility.)

When I questioned the 24-hour allowance (given that the Fukushima example and the industry’s own projections at Oconee show core damage starting in as few as eight hours after a loss of power), Burnell wrote, “Each plant has determined how long they have to get phase three resupply to the site.” Asked about the possibility of a large-scale, fast-moving weather event affecting multiple nuclear facilities (as was the case with 2012’s Hurricane Sandy), Burnell seemed even more certain: “Cargo aircraft flights from Memphis to East Coast sites will certainly get phase three to the sites in a timely manner, and plant response procedures account for the additional flight time from Phoenix if necessary.”

If only the weather—or a disaster-battered infrastructure, or an overstretched private contractor—could be as sanguine. “It’s very easy to imagine situations where bringing in equipment from off site is just not going to be feasible,” Judson said.

Criscione referenced his analysis of Oconee in the event of a breach of Jocassee Dam, where all four bridges used to access the plant are expected to fail. Looking at Duke Energy’s promise to bring in emergency backup equipment from off site, he said, “I don’t think it’s realistic. There’s a path to success, but I think the odds are slim.”

* * *

But Criscione’s analysis doesn’t, by his account, carry as much weight inside his agency since he blew the whistle on flood preparedness to the NRC commissioners and Congress. “I’m less effective than when I brought the issues forward,” he said. “I’m certainly not invited to the same meetings that I was in the past.”

And Criscione thinks the problem is agency-wide. “People who draw a harder line on the industry have been less involved,” he said, tracing the change to about 2012, when battles over post-Fukushima regulations precipitated a change in the NRC’s chair, and the Japan Lessons-Learned Division took over a lot of the oversite of emergency preparedness and mitigation.

Today, even the JLD has disappeared, absorbed into another spoonful of alphabet soup, the NRR (the Office of Nuclear Reactor Regulation). “Post-Fukushima activities,” Burnell told me, “have been formalized to the point where the agency’s routine reactor oversite is appropriately tracking compliance.”

But to hear critics tell it, appropriateness is in the eye of the beholder. Seven years after the earthquake and tsunami that turned “Fukushima” into disaster shorthand, “things have been done,” said Judson, “I’m not sure I’d say that they’re adequate.”

“A lot of the things that they came up with after evaluating what happened at Fukushima were things that they should have done years before anyway,” he continued. “Now we’ve got emerging threats that the NRC hasn’t dealt with, and that, in all likelihood, it won’t deal with until something bad happens.”

Lochbaum put it this way in an email: “US nuclear power plants are adequately protected against flooding—unless a flood happens.” In a “worst-case failure of the Jocassee Dam, one would not want to be close to Oconee,” he said. “All three reactors are likely to follow Fukushima’s path and reach its destination.”

For Criscione, the clarion call is coming from the inside the house. “I don’t feel good about Oconee, he told me. “From what I see, we’ve been compromised when it comes to flooding.”

(No version of this story may be reprinted without the express written permission of Gregg Levine.)

Yule Fuel

Yes, it’s time for that metaphor again. If you grew up near a TV during the 1960s or ’70s, you probably remember the ever-burning Yule Log that took the place of programming for a large portion of Christmas Day. The fire burned, it seemed, perpetually, never appearing to consume the log, never dimming, and never, as best the kid who stared at the television could tell, ever repeating.

Now, if you have been watching this space about as intently as I once stared at that video hearth, perhaps you are thinking that this eternal flame is about to reveal itself as a stand-in for nuclear power. You know, the theoretically bottomless, seemingly self-sustaining, present yet distant, ethereal energy source that’s clean, safe and too cheap to meter. Behold: a source of warmth and light that lasts forever!

Yeah. . . you wish! Or, at least you’d wish if you were a part of the nuclear industry or one of its purchased proxies.

But wishing does not make it so. A quick look at the US commercial reactor fleet proves there is nothing perpetual or predictable about this supposedly dependable power source.

Both reactors at San Onofre have been offline for almost a year, after a radioactive leak revealed dangerously worn heat transfer tubes. Nebraska’s Fort Calhoun plant has been shutdown since April of 2011, initially because of flooding from the Missouri River, but now because of a long list of safety issues. And it has been 39 months since Florida’s Crystal River reactor has generated even a single kilowatt, thanks to a disastrously botched repair to its containment that has still not been put right.

October’s Hurricane Sandy triggered scrams at two eastern nuclear plants, and induced an alert at New Jersey’s Oyster Creek reactor because flooding threatened spent fuel storage. Other damage discovered at Oyster Creek after the storm, kept the facility offline for five weeks more.

Another plant that scrammed during Sandy, New York’s Nine Mile Point, is offline again (for the third, or is it the fourth time since the superstorm?), this time because of a containment leak. (Yes, a containment leak!)

Other plants that have seen substantial, unplanned interruptions in power generation this year include Indian Point, Davis-Besse, Diablo Canyon, Hope Creek, Calvert Cliffs, Byron, St. Lucie, Pilgrim, Millstone, Susquehanna, Prairie Island, Palisades. . . honestly, the list can–and does–go on and on. . . and on. Atom-heads love to excuse the mammoth capital investments and decades-long lead times needed to get nuclear power plants online by saying, “yeah, but once up, they are like, 24/7/365. . . dude!”

Except, of course, as 2012–or any other year–proves, they are very, very far from anything like that. . . dude.

So, no, that forever-flame on the YuleTube is not a good metaphor for nuclear power. It is, however, a pretty good reminder of the still going, still growing problem of nuclear waste.

December saw the 70th anniversary of the first self-sustaining nuclear chain reaction, and the 30th anniversary of the first Nuclear Waste Policy Act. If the 40-year difference in those anniversaries strikes you as a bit long, well, you don’t know the half of it. (In the coming weeks, I hope to say more about this.) At present, the United States nuclear power establishment is straining to cope with a mountain of high-level radioactive waste now exceeding 70,000 tons. And with each year, the country will add approximately 2,000 more tons to the pile.

And all of this waste, sitting in spent fuel pools and above-ground dry casks– supposedly temporary storage–at nuclear facilities across the US, will remain extremely toxic for generations. . . for thousands and thousands of generations.

There is still no viable plan to dispose of any of this waste, but the nation’s creaky reactor fleet continues to make it. And with each refueling, another load is shoehorned into overcrowded onsite storage, increasing the problem, and increasing the danger of spent fuel accidents, including, believe it or not, a type of fire that cannot be extinguished with water.

So, if you want to stare at a burning log and think about something, think about how that log is not so unlike a nuclear fuel assembly exposed to air for a day or two. . . or think of how, even if it is not actually burning, the high levels of radiation tossed out from those uranium “logs” will create heat and headaches for hundreds of thousands of yuletides to come.

Oh, and, if you are still staring at the Yule log on a cathode ray tube television, don’t sit too close. . . because, you know, radiation.

Merry Christmas.

Does the Netroots Care about Nuclear Power?

Van Jones speaking to the faithful at this year’s Netroots Nation conference in Providence, RI – June 9, 2012.

On Thursday, June 7, as hundreds of online journalists and activists gathered in Providence, Rhode Island for the seventh annual Netroots Nation conference to discuss what were deemed the most pressing issues of the day, a smaller group made up of nuclear industry representatives and officials from the Nuclear Regulatory Commission and the US Department of Energy got together 400 miles south to discuss matters they thought even more urgent. While the attendees in the Ocean State were getting training on “how to navigate the action-packed schedule at Netroots Nation [and] survive on two hours sleep (and still be alert for a day of panels!),” owners of the nation’s aging nuclear facilities pursued doubling the length of new operating licenses, floating the possibility that reactors will be allowed to run into their 80th year–twice the original design life of most plants.

As bloggers, organizers, pundits and politicians were discovering the charms of the Beehive of Industry (yes, that is one of Providence’s nicknames), inspectors at Davis-Besse, the oft-discussed, always troubled nuclear power plant near Toledo, Ohio were reporting what they termed a “pinhole” leak releasing about a gallon of radioactive coolant every 10 minutes. The reactor had been shut down for refueling, maintenance and safety inspections, but was supposed to restart last week. . . before the leak was discovered in a pipe weld. (Though the reason behind the leak has yet to be determined, FirstEnergy, Davis-Besse’s owner, has now resumed the restart. . . without so much as a raised eyebrow from regulators.)

This incident at Davis-Besse comes not so very long after the Ohio primary, where the safety of the plant and trustworthiness of its owners and regulators was an issue in the race between two sitting Democratic members of Congress–Representatives Dennis Kucinich and Marcy Kaptur. Forced to run against each other because of redistricting, the plight of Davis-Besse became a defining issue between the two, with Kucinich calling for the plant to remain off-line until the cause of cracks in the containment structure was determined, while Kaptur affirmed her faith in FirstEnergy. Kaptur argued that the failing facility meant jobs for the struggling district–a district that was drawn to favor Kaptur’s old base–and in the end, beat Kucinich for the Democratic nod.

Following this latest breach in safety, Representative-for-another-six-months Kucinich has petitioned the Nuclear Regulatory Commission’s Inspector General (PDF) for an investigation into the NRC’s lax supervision of Davis-Besse.

As the netroots community and representatives of organized labor pondered in Providence whither the union movement in the wake of the Wisconsin recall results, 250 actual union workers, locked out of their jobs at Massachusetts Pilgrim nuclear plant (a short drive from the Rhode Island Convention Center), some for as long as 10 weeks, were filing a five-point grievance with the National Labor Relations Board. The union accused Pilgrim’s operator, Entergy, of coercive and threatening behavior leading up to a June 2 vote on a new labor contract. The workers overwhelmingly rejected the contract a week after the NRC granted Entergy a 20-year license extension for the plant–and 10 days after Pilgrim had to scram because of reduced vacuum in the plant’s condenser.

That there would be problems at a plant where replacement workers have been complaining that they are being asked to do jobs outside their expertise hardly seems surprising. That an ongoing labor action, safety concerns and licensing fight happening just two counties away from Providence would not be an issue at the Netroots Nation convention is a bit more vexing.

While conventioneers in Providence listened to New York Attorney General Eric Schneiderman explain his relative lack of action on the foreclosure fraud crisis as somehow part of what he called a “transformational moment,” members of Pilgrim Watch, a citizen’s group opposed to the Massachusetts nuclear plant, were in court demanding that regulators do more to require post-Fukushima lessons learned be incorporated in required upgrades to Pilgrim’s GE Mark I boiling water reactor (the exact same design as those at Fukushima Daiichi). Activist groups have mounted similar (and additional) legal challenges to the relicensing of Vermont Yankee, another ancient Mark I reactor well into its break-down phase. And in New York, public activism mounts as the Indian Point reactors approach their relicensing hearing.

In fact, Friday, as Netroots Nation attendees wondered why there was a 90-minute gap in the midday schedule (word is conference organizers were hoping to bag the president or vice president as a lunchtime keynote, and the extra time was allotted for additional security. In case you missed it, the closest the conference got to any high-level White House official was a new campaign video, introduced on tape by Obama), the DC Court of Appeals handed down an important decision that could have broad implications for the future of domestic commercial nuclear power. A three-judge panel unanimously ruled that the Nuclear Regulatory Commission was negligent in the way it evaluated plant safety because regulators assumed a solution to the country’s long-term radioactive waste storage crisis when none currently exists.

If you were watching your twitter feed, you might have caught this. If you were sitting in on any of Friday afternoon’s Netroots panels, this ruling probably didn’t come up.

Indeed, throughout the three-plus days of panels, training sessions, caucuses and keynotes, attendees quite likely heard no mention of nuclear power, its persistent threats to safety, its drastic drain on the budget, its onerous oppression of workers or its brazen gouging of rate-payers. For, while there were well over 100 panels, and dozens of other training sessions and caucuses, nothing on the schedule even made a passing attempt to address nuclear energy here in the United States or the ongoing (and growing) crisis of radioactive contamination from Fukushima spreading across the globe.

It would be one thing if this were purely fodder for wonks and science geeks, but as demonstrated above, and in over a year’s worth of columns, nuclear power touches on many (if not most) of the issues considered to be core concerns of the netroots movement. Corporate greed, captured government, worker rights, environmental justice, and a lazy legacy media–its all part and parcel of the nuclear narrative.

And it might not be worth a few precious hours of conference schedule if the fight against nuclear power and its acolytes were a lost cause, but in this post-Fukushima moment (and, yes, we are still in it), the country and the world stand at a crossroads. While the US government seems hell-bent on backstopping a failing, flailing industry, other countries are using this crisis to step back from the next potential nuclear nightmare and commit to a cleaner, renewable energy future. Meanwhile, here in the United States, engaged communities of activists and concerned citizens are organizing to fight on the local level for the protections their federal government has failed to deliver.

The appeals court decision on Friday is a monument, really, to the years of hard work put in by individuals and organizations across the country–and it is a monumental opportunity to learn from this success and build the future of the anti-nuclear movement.

It is a movement that could benefit greatly from the online organizing tools that have breathed so much life into the netroots, but the netroots, too, could learn a few things from the anti-nuclear movement. Providence, with its physical proximity to Pilgrim, and its temporal proximity to so many developments on the nuclear front, would have seemed like a golden opportunity. But the organizers of Netroots Nation appeared to have other priorities.

While the good folks at NIRS–the Nuclear Information and Resource Service–where awarded a booth in the exhibition hall at the Providence convention center, veterans of the conference know there is quite a different level of engagement when it comes to the booths, versus what happens at panels and speeches. (This is to take nothing away from NIRS, which had a table filled with great information, much of which can also be found on their website.)

Fired up?

Some noise was made, quite publicly, as a matter of fact, about this year’s Netroots convention being friendlier to the Obama administration. “I think people are generally on board [with Obama’s reelection effort],” said Raven Brooks, the executive director of Netroots, as he explained to Talking Points Memo that this year’s convention would be relatively free of the confrontation that met White House Communications Director Dan Pfeiffer at the 2011 conference.

“People are fired up about 2012,” said Mary Rickles, who is communications director for Netroots, noting in the same TPM article that she expected an administration presence at this year’s conference. (Again, unless you count Schneiderman, there was none.)

Inside the convention center, Van Jones–briefly part of the Obama administration until driven out by a rightwing witch-hunt, and cofounder of Rebuild the Dream–headlined the last night of speeches. Jones, himself a longtime advocate for renewable energy, instead turned to a theme he has hit often in recent years: that while some might be disappointed with the pace of progress, in the end, it is not Obama’s failing, it is ours. But this time, it being an election year, and everyone thusly “fired up,” Jones put it this way: “We have two tasks: to re-elect the president and re-energize the movement to hold the president accountable.”

Quoting Jones in an email announcing next year’s convention, Brooks underscored the point:

After November has come and gone, our job of pushing for the strongest possible progressive policies will begin in earnest. In short, we’ve got to step up our game.

Inspiring thoughts, perhaps, but ones completely contrary to the way electoral politics has worked in this country about as far back as anyone can remember. Making demands of office-seekers after you’ve pledged your vote is not just cart-before-the-horse, it’s asinine and ass-backwards.

The netroots played a roll in the election of Barack Obama in 2008, though in the eyes of the now-POTUS, not an overly large one. After the election, Team Obama moved quickly to rein in the less-predictable elements of its grassroots campaign while one-by-one riding roughshod over most of the issues that mattered to left-leaning bloggers and online activists. Previous NetNat attendees had a right to boo Obama surrogates, and the folks charged with re-electing the president should be taught to fear that wrath–if not through activism, at least by way of apathy.

Mitt Romney would no doubt make a dismal president–but that is not the point. This election will be decided by turnout, and the Obama campaign will need to motivate parts of his base such as the netroots with reasons to get out and vote for his second term. If online activists want something from Obama in return for going to the polls, the time to demand that, the time to get that on paper–or in pixels–is before election day, not after.

After, Obama doesn’t need you anymore. It’s called a lame duck term for many reasons, but one of them is that the president can easily duck any kind of obligation some might feel he should have to his blandly loyal netizens.

Which brings us back to nuclear power and Netroots Nation. It is not a secret that one of Obama’s great benefactors in past elections has been Exelon, the nuclear giant that not only gave heavily to the 2008 campaign, but once employed both former Obama Chief of Staff Rahm Emanuel and David Axelrod, once a senior Obama advisor and now Communications Director for his 2012 campaign. Obama’s steadfast support for nuclear power–making the point, not once, but twice, in the first weeks after the Fukushima crisis began, to publicly assure that the US commitment to nuclear was strong–now puts him at odds with many countries in the industrialized world, but, more important here, it has always put him at odds with many in the online progressive community. It would be sad to think that conference organizers decided against any anti-nuclear content in an effort to keep this year’s Netroots Nation “onboard” with and “fired up” about a possible administration presence.

But it would be even sadder to think that the fault lies not in these self-anointed stars, but in ourselves. While chances are if you are reading this you have at least some degree of interest in nuclear issues, is it possible that what once was called the “blogosphere” (but now should be considered something more) does not see nuclear power, the looming environmental catastrophe and financial sinkhole it presents, as relevant? Is it that the almighty and always invisible atom is just not as juicy as, say, fracking, or anything with the word “occupy” in it?

That would be a shame–and a mistake–for it is all part of a piece. The work of occupiers across this country over the last year is to be applauded, but some of the things central to the protests, a broken system, a captured government filthy with corporate cash, are central to the fight against nuclear power, as well. And while hydrofracking represents a tremendous threat to our water supply and our climate, and so should be protested full bore, its current profitability might make it less sensitive to activism than nuclear power at this point in its history.

Without government support–without the federal loan guarantees, the Price-Anderson indemnity, state and local tax breaks and rate subsidies–the commercial nuclear power industry would collapse. There would be few demands for license renewals because few plants would turn a profit.

And without a government-run long-term waste repository, the nuclear industry faces even more safety and financial concerns. The lack of storage options is actually a crisis for nuclear operators–and a threat to the safety of a majority of Americans. What this country does with its atomic waste has always been a political issue, too–and it has played out on the political stage throughout this past year. It is an issue that is very sensitive to old-time, easy to grasp, electoral politics, and so it is one sensitive to the newfangled tools of internet organizing.

So, between environmentalists and budget wonks, between regulatory hawks and electoral junkies, and between old-line environmental activists and 21st Century online organizers there is much to discuss. Let’s hope that no matter who is running for whatever office next year, the netroots, and the Netroots Nation conference, find the time and space–and the political will–to engage the dirty, dangerous and expensive threat of nuclear power.

*  *  *

[Full disclosure: I had submitted a panel proposal for the 2012 Netroots Nation conference, and though it was given consideration and, I am told, was in the running till the end, it was not included in the final schedule. The panel was to be called “Clean, Safe, and Too Cheap to Meter? Countering Nuclear’s Lies in a Post-Fukushima Landscape,” and while I was disappointed at not having this opportunity, the far bigger concern for me was that conference organizers chose not to include any sessions on nuclear issues at all. One year’s personal slight is not really a big deal; ignoring the obvious and broad importance of this topic, however, signals a bigger problem.]

Nuclear “Renaissance” Meets Economic Reality, But Who Gets the Bill?

Crystal River Nuclear Generating Plant, Unit 3, 80 miles north of Tampa, FL. (photo: U.S. NRC)

Crystal River is back in the news. Regular readers will recall when last we visited Progress Energy Florida’s (PEF) troubled nuclear reactor it was, shall we say, hooked on crack:

The Crystal River story is long and sordid. The containment building cracked first during its construction in 1976. That crack was in the dome, and was linked to a lack of steel reinforcement. Most nuclear plants use four layers of steel reinforcement; Crystal River used only one. The walls were built as shoddily as the dome.

The latest problems started when Crystal River needed to replace the steam generator inside the containment building. Rather than use an engineering firm like Bechtel or SGT–the companies that had done the previous 34 such replacements in the US–Progress decided it would save a few bucks and do the job itself.

Over the objections of on-site workers, Progress used a different method than the industry standard to cut into the containment building. . . and that’s when this new cracking began. It appears that every attempt since to repair the cracks has only led to new “delamination” (as the industry calls it).

Sara Barczak of CleanEnergy Footprints provides more detail on the last couple of years:

The Crystal River reactor has been plagued with problems ever since PEF self-managed a steam generation replacement project in September 2009. The replacement project was intended to last 3 months, until PEF informed the Commission that it had cracked the containment structure during the detensioning phase of the project. PEF subsequently announced that the CR3 reactor would be repaired and back in service by the 3rd quarter of 2010…then by the 4th quarter of 2010…and then by the first quarter of 2011. On March 15, 2011 PEF informed the Commission that it had cracked the reactor again during the retensioning process and subsequently told the Commission that it estimated repair costs of $1.3 billion and a return to service in 2014. Shortly thereafter, the Humpty Dumpty Crystal River reactor suffered yet another crack on July 26, 2011.

That July crack was later revealed to be 12-feet long and 4-feet wide–and here, at least when it came to notifying the Nuclear Regulatory Commission, “later” means much later. . . like four months later.

The issue, of course–as anyone with a lifetime crack habit will tell you–is that this all gets very expensive. Not only is there the cost of the repairs. . . and the repairs to the repairs. . . and the repairs to the repairs to the repairs. . . there is the cost of replacing the energy that was supposed to be supplied to PEF customers by the crippled reactor.

And then there is the cost of the new reactors. . . .

Wait, what?

Yes, based on the amazing success they have had managing Crystal River–and something called a “determination of need,” which was granted in 2008–Progress Energy holds out hope of someday building two of those trendy new AP1000 nuclear reactors at another Florida site, this one in Levy County.

And who is expected to pick up the tab? Who is on the hook, not just for repairs and replacement energy at Crystal River, but for PEF keeping its options open at Levy? Well, not surprisingly in “privatize profits, socialize risk” America, the plan was to stick Florida ratepayers with the bill (again Footprints provides the numbers):

Customer bills for instance, were expected to increase by $16/mo. in 2016; $26/mo. in 2017 and a whopping $49/mo. in 2020. Initially, Progress expected the proposed reactors to cost $4-6 billion each, coming online beginning in 2016. Just a few years later, the estimated costs have skyrocketed to over $22 billion and the online date, if the reactors ever even come online, has bumped back to 2021 and 2022. And the Office of Public Counsel believes that PEF may not intend to complete the reactors until 2027, if at all. The company has spent over $1 billion dollars on the Levy nuclear reactors and has yet to commit to build them. And the company is entitled to recover all its preconstruction and carrying costs from its customers before even a kilowatt of electricity is produced. In fact, even if the project is never completed PEF can recover all its construction costs from customers courtesy of the 2006 anti-consumer “early cost recovery” state law…essentially a nuclear tax scheme.

But now, as of this week, there is a new plan. . . stick Florida ratepayers with the bill:

The state Public Service Commission on Wednesday unanimously approved an agreement that will increase the power bills of Progress Energy Florida customers — who already pay among the highest rates in the state.

It is supposed to be a win for consumers.

The deal includes a $288 million “refund” of money customers were to pay to replace power from the crippled Crystal River nuclear plant, which has been offline since fall 2009 and might never return to service.

PSC staff concluded that customer rates still would increase. The average Progress customer’s bill on Jan. 1 is expected to increase $4.93 a month per 1,000 kilowatt hours of usage, from $123.19 to $128.12, subject to adjustments for fuel costs.

That’s a “win” for Floridians, it seems, because they are paying out something less for Progress Energy’s mistakes–at least in the near term. But even that caveat is subject to scrutiny:

While the agreement provides a replacement power cost refund over 3 years of $288 million to PEF customers (due to the CR3 outage) – it comes packaged with a base rate increase of $150 million and it precludes the parties from challenging up to $1.9 billion (yes, billion) fuel and replacement power costs from 2009 to 2016.

And that’s not all. Also in the agreement is a requirement that PEF start (yes, that is start) the latest repairs on Crystal River by the end of 2012; if they do not, Progress has to “refund” an additional $100 million to consumers. Missing, however, from the agreement is any new estimate (given the latest revelations, not to mention any post-Fukushima upgrades required) of the cost should PEF actually try to remedy all of Crystal River’s problems–and perhaps even more glaring, questions remain as to who will pay (and how much it will cost) should PEF decide to stop throwing good money after bad and decommission Crystal River reactor 3.

Also missing from the calculation is any determination of what PEF’s insurance will cover–Crystal River’s insurer stopped paying out in early 2011, and they have yet to decide if they will pay anything more. . . at all.

The agreement also fails to put an end to what is now becoming a regular part of the nuclear power finance scam–collecting public money for plants that will never be built. As the Southern Alliance for Clean Energy (SACE, which is affiliated with CleanEnergy Footprints) observed when it opted not to sign on to the Florida rate agreement:

PEF hasn’t committed to actually building the Levy Co. reactors. Having customers pay for the company just to maintain the “option” at a later date to build reactors is unfair to today’s customers – and runs counter to the Commission’s “intent to build” standard. The agreement allows the company to collect another $350 million from customers, presumably for pursuing their Nuclear Regulatory Commission license (without any prudency review) for reactors it hasn’t committed to build? In fact, the agreement contemplates that the company will cancel its engineering and procurement contracts as well, further demonstrating the unlikelihood of project completion.

If something sounds familiar here, it should. Southern Company has been using heaping helpings of Georgia ratepayer money to do all kinds of preliminary work on their Vogtle site, purportedly the future home of two new AP1000 reactors, just granted a combined construction and operating license by the NRC in January.

The big difference so far between Levy and Vogtle has been Southern’s ability to line up some financing for its Georgia construction–thanks to $8.33 billion in federal loan guarantees granted the project by the Obama administration almost two years in advance of the NRC approval.

PEF does not have this kind of guarantee, but that did not stop them from trading on the possibility:

Progress Energy Florida officials said Thursday that President Obama’s plan to offer federal loan guarantees to encourage investment in nuclear power plant construction will be a strong incentive to move forward with the company’s proposed Levy County plant.

The project, however, is facing delays of between 20 to 36 months due to economic and regulatory problems, making the plant’s future uncertain despite the company’s insistence the project isn’t cancelled.

“It (the loan guarantee program) will definitely play a role in that decision (whether to continue with the project). It is one of many, but a very important one,” said Progress Energy spokesman Mike Hughes.

That was in 2010, right after President Obama announced the new Department of Energy loan program–but two years later, PEF has not secured a federal guarantee, and so has not secured any financing. . . and thus has also not committed to ever building the Levy plant. But none of that has stopped Progress from collecting money from Florida consumers just to keep hope alive, as it were. And none of that has apparently stopped any of Florida’s public service commissioners from telling PEF that this practice is just jake with them.

Even with NRC approval and some federally guaranteed money, it is still not a sure bet that the Vogtle AP1000 reactors will ever come on line. PEF’s Levy project has no license and no loan guarantee.

The folks at Progress Energy are not stupid–at least not when it comes to short-term financial gain–they know how very slim their chances are of ever pushing even a single kilowatt out of Levy County, but they also know where the profit is in the nuclear power game. It is not, quite obviously, in the construction of nuclear power plants–rife as that process is with lengthy delays and massive cost overruns–and it is not, some might be surprised to learn, so much in electric generation, given that plants in the US are now suffering “unusual events” that force one or more of them offline pretty much every week. Unusual events cost money–in parts and labor, and in time lost to repairs and inspections–and, as has been demonstrated at Crystal River, there is the cost of replacement energy.

No, the real profits in the nuclear racket come from the ability to collect on services not rendered and a product not delivered, or at least not delivered regularly. Because the system backstops the financing of nuclear facilities while also allowing plant operators to pass both real and anticipated costs onto ratepayers, many American taxpayers are poised to pay twice for nuclear power plants that don’t produce power.

And it would be remiss to close without adding a few more points.

Much has been made of the failure of solar panel manufacturer Solyndra, which also received aid from the federal government in the form of loan guarantees. Solyndra ultimately got $527 million from the government; contrast that with what has been granted to Southern for Vogtle. Or, starker still, look at the entire alternative energy loan program, now projected to cost out at under $3 billion, and then look back to 2010, when Barack Obama pledged $54.5 billion to the DOE loan guarantee program designed to foster investment in nuclear power.

In addition, while the government will actually recoup most of the money lost on Solyndra when the factory and inventory are auctioned off, the “leftovers” from a failed nuclear plant–even the parts that are not contaminated with radioactivity–are much harder (if not impossible) to move.

The focus of this story has been on the costs–because the case of Progress Energy Florida is such a glaring example of how nuclear operators fleece America–but the fact that a company so focused on the bottom line, regardless of its effect on public safety, is still allowed to play with something as dangerous as a damaged nuclear power plant should not be overlooked. Alas, as was exposed last year, nuclear regulators and the nuclear industry seem to agree that safety should be addressed with an eye toward cost. So, while Crystal River is a scary mess, the reactor in question is actually offline right now. The same cannot be said, for example, about Ohio’s Davis-Besse plant, which has cracking problems of its own, but was allowed by the NRC to restart in January–over the vociferous objections of industry watchdogs, engineers, and Rep. Dennis Kucinich (D-OH).

And then there is Palisades, on the shores of Lake Michigan, where numerous events and releases of radioactivity in the last year caused the Nuclear Regulatory Commission to issue a downgrade of the plant’s safety rating–but the NRC did not order the plant to shut down. Palisades is owned by Entergy Nuclear, who was recently cited for “buying reactors cheap, then running them into the ground.” In addition to Palisades, Entergy owns nine other plants–Arkansas Nuclear One, Nebraska’s Cooper Nuclear Station, Fitzpatrick in upstate New York, Grand Gulf in Mississippi, Indian Point, just north of New York City, Pilgrim, outside of Boston, River Bend and Waterford, both in Louisiana, and Vermont Yankee.

The case of Vermont Yankee is especially upsetting. Yankee is a GE boiling water reactor, similar to the model that failed so catastrophically at Fukushima–but the NRC voted to extend its operating license just days after the Tohoku quake. The state of Vermont had a better idea, declaring that the nuclear plant should shut down by March 21, 2012. However, in January, federal district court judge J. Garvan Murtha ruled Entergy could ignore Vermont’s order and continue operating. The state is appealing the ruling, but in the meantime, Yankee continues to operate. . . and continues to leak tritium into the groundwater, and into the Connecticut River.

It is not clear who will be paying for any attempt to clean up the Vermont Yankee leak–though one can guess–nor is it clear what will happen to new nuclear waste produced after March 21, since the Vermont statehouse has forbidden any new waste storage on the site. Indeed, storing used nuclear fuel is a nationwide problem that poses real dangers in the near term, and will likely cost billions of public dollars in the long term.

And that’s the bottom line–the real bottom line–for the industry’s oft-ballyhooed “nuclear renaissance.” Plant operators and captured regulators can try to obscure the safety concerns with diversionary dustups and magical thinking, but economic realities, like facts, are stubborn. Without huge injections of public money, nuclear power simply cannot continue to function–and the public is in no mood for another multi-billion dollar government bailout.