Jose Ceralde
13 March 2010

More on the nuclear power plant from a cost stand point. Below section was cut and paste from this link; http://joongangdaily.joins.com/article/view.asp?aid=2917314;

““It’s difficult to answer questions regarding the issue due to the lack of information, such as if the Philippines has the money to pay for the nuclear reactors and why they are trying to buy outdated models,” an official at the Kepco said.

The Korean Ministry of Knowledge Economy said it’s not jumping to conclusions, particularly since a low-level official delivered the message as the presidential election in Philippines draws near. The deal could be canceled if the ruling party loses. Thus, Minister Choi told the envoy that discussion with higher-level officials was needed, the ministry said. According to the ministry, the Philippines plans to augment its electrical generation capability by 3,000 megawatts by 2012 to meet rising demand within the country. It plans to build 14 nuclear reactors to accomplish this.”

Wonder where the Koreans got the info about the country wanting to build 14 nuclear power plant?

The Bataan Nuclear Power Plant’s initial cost estimate during Marcos time (1973) was at 844 million dollars and the final cost was 2.3 billion dollars. It now costs the government 155,000 dollars a day to maintain a nuclear plant without the reactor. Wow, not a single kilwatt produce due to knee jerk reaction to impending power crisis.

Even with the huge economic clout of Meralco which is able to point the energy vision of the country, Meralco supplies almost 75% of power in Luzon, according to senate hearing. They would need more cash than SMC Corporation and its partners could put up. Imagine initial costs of four billion dollars for each plant.

Now the other illuminating question on the article is –  why did GMA send a low ranking official? Could it be because of the association of that low ranking official to the CEO and the controlling interest of SMC?

Remember the lesson of certain companies like Enron. It could put even a rich country like US to its knees. They were only caught for manipulation because a whistle blower taped how they were bleeding California with high power rates in utility market.

Everybody thought it was due to El Nino that was causing power crisis and the rise of power rates. Rings a similar bell and tone?

The Philippines has what we call WESM to stabilize the market price, does it work now?

Here are RP’s costs from each power sources; Hydro, .87
; Coal, 5.00; 
Diesel, 7.87; 
Nuclear, no data.

Now should San Roque be shut? Or just weed out incompetent operators?

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