NECG Capabilities

NECG Commentary #14 - Clinton Nuclear Power PlantNuclear power is a major source of electricity today, only a little more than 60 years since the first nuclear electricity generators were built. Government or regulated investor-owned electric utilities built the first wave of commercial nuclear power plants to minimize the long-term total cost of electricity. Many of these so-called Generation II nuclear power plants remain in operation today, providing benefits decades after they were built

In the past two decades, the electricity industry has moved away from the traditional government and regulated utility approaches with some countries and regions adopting electricity markets. These electricity markets, focused on minimizing short-term marginal cost, do not replace long-term planning and investment aimed at minimizing long-term total electricity system costs.

Nuclear power provides significant long-term benefits and is the only credible approach to moving electricity generation away from combustion-based technology.

Nuclear Economics Consulting Group (NECG)

Nuclear Economics Consulting Group (NECG; applies economic analysis to the complex business and legal challenges facing the nuclear power industry. Our particular focus is on the current issues related to electricity markets.

NECG’s experts have created strategies, conducted research and studies, written reports, and provided expert testimony for clients that include corporations, law firms, and government authorities. Our work is based on analytical rigor and objectivity that is tempered by real world industry experience in both the electricity industry and the nuclear power industry.

NECG has been involved in client engagements related to strategy, finance, regulation, and litigation.

NECG applies proven and innovative approaches, communicates results clearly and convincingly, and delivers independent findings to clients.

NECG assists companies and governments evaluate options and make thoughtful and effective decisions related to the nuclear power industry. We have worked with sellers, buyers, regulators, law firms, and other nuclear project stakeholders on a range of issues.

NECG experts have worked on nuclear projects around the world at all stages. A key part of our work is our extensive experience in the electricity industry and in electricity industry restructuring. Our insights into nuclear economics and into electricity industry issues help clients understand how nuclear power projects fit into various electricity industry structures, markets, and approaches.

A nuclear plant is a long-term commitment that requires a clear view of long-term economic issues early in the project developed to ensure long-term success.

NECG Capabilities

Structuring nuclear projects – Our work with new nuclear (and non-nuclear) projects is based on decades of work with power projects and the electricity industry. Our work with conventional IPPs and merchant power projects over several decades gives us insight into issues faced by merchant nuclear projects.

Analyzing electricity markets – The most important issue for any power plant investment is the value of nuclear electricity. This may be related to electricity market prices or to capacity expansion alternatives for traditional regulated and government utilities. Nuclear power plants, with long development periods and even longer operating lives, require a long-term analysis of the value of nuclear electricity.

Advising on new nuclear power projects – The owners, investors, lenders, vendors, and other parties involved in a new nuclear power project need sound advice on a range of issues. NECG provides advice on appropriate financial and contractual structures and assessments of risk.

Procurement programs – Developing and implementing strategies for nuclear procurement programs is critical. NECG has provided assistance in tender development, bid evaluation, and negotiation of key terms for nuclear tenders. We can work for investors, vendors, or regulators on these issues.

Conducting due diligence for nuclear investments and transactions– Detailed, quantitative, and independent assessment of nuclear power projects is needed by owners, investors, lenders, regulators and other parties in a nuclear power plant project or transaction. NECG provides assessments of the financial, regulatory, and market issues facing nuclear projects.

Supporting regulatory approvals and rate cases – Nuclear power investments are recovered through rates by traditional regulated and government utilities. NECG assists in the regulatory approval process by providing analyses of prudence and economic soundness of a nuclear power project investment.

Providing advice and expert testimony in litigation and arbitration – NECG provides consulting and testifying expertise in nuclear regulatory disputes, litigation cases, and international arbitration cases.

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Nuclear Economics Consulting Group - NECG