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Blocked nuclear data seen lifting US power prices
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USA: October 15, 2001


NEW YORK - A federal agency's decision to stop posting potentially sensitive nuclear power plant data on its Web site following the Sept. 11 attacks could push up wholesale electricity prices, traders said last week.


The Nuclear Regulatory Commission (NRC), which oversees the use of all radioactive materials in the country, suspended its Web site on Thursday, as part of a general tightening of security nationwide.

"Our site is not operational at this time. The Nuclear Regulatory Commission has taken the action to shut down its web site," the NRC said in a statement posted on the site (http://www.nrc.gov).

"In support of our mission to protect public health and safety, we are performing a review of all material on our site. We appreciate your patience and understanding during these difficult times."

Among information previously shown on the Web site was the plants' locations, including longitude and latitude, and general design specifications for each facility.

Several electricity traders, who look daily to the federal agency's plant status report for fundamental market supply data, told Reuters not knowing whether a plant was operating raised uncertainties that would be reflected in higher prices.

"It's amazing how Sept. 11 has affected things you would never expect," one Houston-based trader said.

The daily plant status report lists the operating status of each of the 103 U.S. nuclear reactors, which provide about 20 percent of the country's electricity.

"If they find some reason this information would be dangerous in the hands of a terrorist, then I'm all for keeping it off the Web site," the trader said, echoing the views of all the power traders Reuters surveyed.

They warned, however, that keeping the information from the marketplace would give reactor owners and the local utilities they supply a big advantage over energy marketers who have no power plants in the area.

Nuclear reactors are among the lowest cost sources of electricity in the United States.

When a nuclear plant shuts, the region's grid operator tells generating companies to fire up more expensive oil-and gas-fired plants to cover the shortfall.

"You take in all the information available, process it and make a best guess at what the price of power will be each day based on what plants are available, what the weather is, what the cost of fuel is. Not knowing where the nukes are is just another unknown that will cost money," one trader said.


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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