Replacement Energy Cost Estimates for Nuclear Power Plants: 2020-2030 – Final Report

This report estimates replacement energy costs for regions in the United States wholesale electricity market that have nuclear power plants. The purpose of these estimates is to assist the U.S. Nuclear Regulatory Commission (NRC) in evaluating proposed regulatory actions related to safety modifications and the potential loss of generation in severe reactor accidents. The models simulate the dispatching of generating units in order of lowest to highest incremental cost until the regional power demand is met. Each generating unit is characterized by its technology, fuel type, heat rate, and variable and fixed costs associated with ownership and operation. The report compares a Reference Case, where all operational nuclear power plants are generating electricity, with an Alternative Case, where a nuclear unit is taken offline and the next unit in merit order replaces the lost generation. The difference in market clearing prices between the two cases represents the replacement energy cost.