No abstract

No abstract

Portions of this document may be illegible in electronic image products. Images are produced frpm the best available original dOl.umf!Xlt AbstractOperations and Maintenance (O&M) expenditures by nuclear power plant owner/operators possess a very logical and vital link in considerations relating to plant safety and reliability. Since the determinants of O&M outlays are considerable and varied, the potential linkages to plant safety, both directly and indirectly, can likewise be substantial. One significant issue before the U.S. Nuclear Regulatory Commission is the impact, if my, on O&M spending from state programs that attempt to improve plant operating performance, and how and to what extent these programs may affect plant safety and pose public health risks. A prerequisite to understanding these linkages is to develop a framework to analyze the elements that affect the expenditures that are incurred in the post-construction, operating experience of plants. The rationale for analyzing the determinants of fixed O&M outlays at plants is strengthened further by the recognition of the dramatic escalation of these costs during much of the operating lives of the reactor units. The cost performance of nuclear power plants in the United States was considerably worse than the industry and regulators anticipated during much of the 1970s and 1980s. Although the expenditure trends have seemingly slowed, continuing analysis is justified by the recognition of continuing regulatory changes and the re-structuring of the entire electric utility industry.The purpose of this study is to examine the role and degree of impacts from state promulgated economic incentive programs (EIPs) on plant O&M spending. A multivariate regression framework is specified, and the model is estimated on industry data over a five-year period, 1986-1990. Explanatory variables for the O&M spending model include plant characteristics, regulatory effects, financial strength factors, replacement power costs, and the performance incentive programs. EIPs are found to have statistically significant effects on plant O&M outlays, albeit small in relation to other factors. Moreover, the results indicate that the relatively financially weaker firms are more sensitive in their O&M spending to the presence of such programs. Formulations for linking spending behavior and EIPs with plant safety performance remains for future analysis. SummaryThis study presents an analysis of the determinants of non-fuel operations and maintenance expenses (O&M) at commercial nuclear power plants for [1986][1987][1988][1989][1990]. O&M expenditures by plant owner/operators possess a very logical and vital link in considerations relating to plant safety. Skimping on O&M functions to meet a wide array of objectives or having expenditures subject to a variety of constraints poses potential questions about the resulting impact on public health and safety. Alternatively, overspending on a plant may unnecessarily drive up costs and ultimately increase rates to ratepayers. Since the d...

DISCLAIMERPortions of this document may be illegible in electronic image products. Images are produced from the best available original document.This study focuses on the rate of technological change in electricity production. The dominant role of fossil fuel-fired electricity production in the industry, coupled with the direct association with the emission of greenhouse gases, makes technology parameters particularly significant for several reasons. First, very long-run simulations of energy-economic paths at a global level require that technical progress occupy a place in the methodology for sound formulations that are vital in global emissions/energy policy analysis. Second, given the outlook for electricity generation being predominately coal-based, especially in developing economies around the world, the specification and measurement of technical change is essential for developing realistic long-run technology forecasts. Finally, industry or sector growth in productivity hinges partly on technical progress, and updated analysis will always be necessary to stay abreast of developments on this front, as well as for economic growth considerations in general.This study is based on empirical economic research on production functions in the electric utility industry. However, it advances a seldom used approach, called the "engineeringproduction function," in contrast to the more common neoclassical approach used by economists.Combined with this approach is a major departure from the type of data used to conduct econometric estimations of production parameters. This research draws upon a consistent set of ex ante or "blueprint" data that better reflects planned, technical performance and cost data elements, in contrast to the more customary, expost type of data from actual h / p l a n t operations.The results from the examination of coal-fired technologies indicate the presence of tech-Ncal change. Using data for the period from 1979 to 1989, we find technical change to be capital-augmenting at the rate of 1.8 percent per year. Technical advance diminishes fuel inputs, however. (Labor factors of production are not present in the specifiitions, given their very low cost share in the cost of installation and production.) The composite rate of technical progress is found to be 0.7 percent per year. Our estimates fall within the range of other studies, which are briefly reviewed in the report. This study is sponsored by internal Laboratory resources under the direction of the Global Studies Program.iii