Thursday, March 17, 2011

Southern Co (SO), Entergy (ETR), Exelon (EXC), GE (GE) Face Nuclear Changes

Southern Co (NYSE:SO), Entergy (NYSE:ETR), Exelon (NYSE:EXC), GE (NYSE:GE), and others, are all in the spotlight as concerns over vulnerability in nuclear facilities has been heightened from the challenges now being faced in Japan after the earthquake and tsunami.

Eleven U.S. utilities, including those listed above, own similar reactors in 14 states. Most of them are operating beyond their initial 40-year licenses and have been granted 20-year extensions by federal regulators.

The Japanese crisis, in which problems at four reactors have led to dangerous releases of radiation in the surrounding area, could lead to safety-related changes at similar U.S. plants. Operators said that, even if they're not ordered to make changes by regulators, they might do so to restore public trust.

U.S. regulations require plant owners to make sure plants can survive any expected threat, even if that means they have to retrofit facilities that already have licenses.

At this time there isn't any clarity as to the problems connected to Japan's nuclear reactors, other than the fact of an 8.9 earthquake wreaking the havoc, along with the ability to be able to restore power quicker than Japan was able to; about the only thing understood at this time concerning its challenges.

According to General Electric, modifications were made to Mark I structures, at least in the U.S., in the 1980s after tests of Mark III designs exposed weaknesses common to all the structures. GE said it suggested similar changes in Japanese units but was still trying to determine if they were made, according to the Wall Street Journal.

Exelon closed Wednesday at $39.95, falling $1.39, or 3.36 percent. Entergy closed at $66.65, down $1.84, or 2.69 percent. Southern Company closed at $36.80, dropping $0.21, or 0.57 percent. General Electric closed at $18.95, losing $0.66, or 3.37 percent.




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