Westinghoue Electric Company

announced on Oct. 11 an agreement to acquire Westinghouse Electric Co. from Brookfield Business Partners (BBU). The deal has a total enterprise value of about $8 billion, including proceeds from the disposition of a non-core asset expected to be received prior to closing the transaction. The deal is expected to be finalized in the second half of 2023, subject to customary closing conditions and approvals.

Westinghouse has a long and storied history in the energy industry dating back more than a century. The company was a pioneer in the nuclear power industry, and it continues to be a major player in the sector today.

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Nuclear power nearly bankrupted the company in the late 70’s. They had sold several nuclear plants to customers along with a long term contract to supply uranium at fixed prices going forward. Oops, the costs of uranium changed dramatically by the time the plants were completed, and Westinghouse walked away from the contracts leaving the utilities in the lurch.

Although the biggest debacle came in the 90’s with the credit division,which necessitated a restructuring of the company (it bought CBS and spun nuclear off into its own company) that nuclear company also went bankrupt about 5-7 years ago, for reasons I haven’t paid attention to. Now it’s being bought by BRP and others from the remnant bin.

And so goes the state of nuclear, pretty much, in recent history. Ah well.

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@Goofyhoofy -

I didn’t realize that GE walked away from the contracts that they had with some customers to supply uranium.

What I also learned from this thread is that one of the purchasing parties in this transaction is Cameco → https://www.cameco.com

Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Utilities around the world rely on our nuclear fuel products to generate safe, reliable, emissions-free nuclear power. Together, we are meeting the ever-increasing demand for clean, baseload electricity while delivering energy solutions to support the world’s net-zero goals.

Seeing that Cameco can produce uranium at (basically) their cost, I wonder if they would be looking into picking up those contracts with those customers now? Sounds like it might be a win-win for both parties if this happens.

'38Packard

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I don’t know if GE did. I know Westinghouse did. They had little choice, they provided as long as they could but to go further would have put the entire company under. Although I worked there at the time I was a lowly newbie and didn’t know any of what was going on. I only heard bits and pieces later.

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Sorry - Meant to say Westinghouse not GE. They both made light bulbs - that’s all I know.

'38Packard
:bulb: :bulb:

In other Westinghouse news, from BusinessWire…

CRANBERRY TOWNSHIP, Pa.–(BUSINESS WIRE)–Westinghouse Electric Company congratulates China’s State Power Investment Corporation on adding two additional AP1000® technology-based plants in China to its growing list of newbuild projects. China’s State Council recently approved the two units owned by State Power Investment Corporation at Lianjiang Nuclear Power Plant in Zhanjiang, Guangdong Province.

The two reactors to be built will be part of the first nuclear plant constructed and managed by **** in Guangdong Province. Site preparation at Lianjiang Unit 1 began on Sept. 28, and a total of six units are planned.

This announcement comes after the April 2022 decision to build four more units on the Sanmen and Haiyang sites.

% % % % %

The “AP” stands for Advanced Passive. This means the reactor core is kept safe by means of passive thermodynamic principals such as conductive and convective heat transfer. As such, active safety systems like high pressure pumps and diesel generators are not required to bring the reactor to a safe state.

The Chinese version is now called the CAP1000, as Chinese companies have licensed the design from Westinghouse.

  • Pete
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The two reactors to be built will be part of the first nuclear plant constructed and managed by **** in Guangdong Province. Site preparation at Lianjiang Unit 1 began on Sept. 28, and a total of six units are planned.

This announcement comes after the April 2022 decision to build four more units on the Sanmen and Haiyang sites.

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China is way behind in their plans to build 100 nuclear power plants.
Jaak

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China has put into service many more nuclear power plants in recent years than any other country. They currently have 55 or so nuclear power reactors in service. The majority of those plants started up in the last 10 years. China has about 18 plants currently in construction, with many more in the planning stages.

Since China has a large, active nuclear power construction industry, they routinely build their plants faster and at less cost than countries in the west. I’m not a fan of the communist party’s control over all aspects of China’s economy, but they seem to have a nuclear power construction and operation system that works.

See following…

  • Pete
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If I’m not mistaken they went bankrupt because of the botched construction of 4 new nuclear plants in the US, two at the Summer plant in SC, which were abandoned about 1/2 way constructed wasting billions, and 2 at the Vogtle plant in GA, which they are still plugging along trying to complete more than a decade later, vastly over the original budget and timeline.

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Maybe Westinghouse should have stuck to light bulbs :bulb: :bulb:
Seems much more simple.

'38Packard

Don’t be surprised if Chinese companies/government do not fully pay the loans off.

Pete just like the US by 1970. By 1979 this will be getting ugly. Make that 2029 in China. It costs too much.

The Three Mile Island accident happened in 1979. That event had a large effect on the development of nuclear power in the US.

I cannot speak with first-hand knowledge about the safety culture in China, but I wouldn’t assume they are careless about safety. The fact they are building several of these AP1000 plants, which has improved safety as a major selling point, tells me they are serious. The Chinese nuclear engineers are capable of learning from our experiences at TMI, the Soviet experience with Chernobyl, as well as the Fukushima events in Japan. The Chinese have stayed away from the Chernobyl style, Soviet-era RBMKs, and I am not aware of any Chinese BWRs like at Fukushima. China has gone mostly with the PWR and VVER plants, which have the very heavy concrete, steel reinforced containment domes found in western PWR plants.

Don’t assume that all nuclear power construction projects are too expensive. The Chinese have proven otherwise. I am also impressed with the way the South Koreans got the new reactors in the United Arab Emirates constructed and in operation. It took longer than it would have in South Korea, but the UAE authorities had to create an entirely new industry for themselves, including the regulatory oversight structure, as well as doing things like training new operators and the like.

The intermittent renewables like here in California, and in Germany, have proven to be very expensive. Californians pay some of the highest electric rates in the US. Germans pay some of the highest rates in Europe. And the Germans are worried about how cold it is going to get this winter, as they have already shut down most of their nuclear power plants, and that pesky Nord Stream gas pipeline from Russia just blew up. Renewables are not going to save them on cold, calm winter nights.

  • Pete
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Pete that was for perceptual purposes in the press. The costs to the utility companies is what destroyed the growth of the industry in this country.

You are mixing earlier costs of alternatives in CA and DE against their other very expensive energy inputs today. Pete you have a fine mind for math, please. The statement convolutes the inputs.

The problem is the United States isn’t China. In the United States new nuclear is amazeballs expensive. And in some locations–like the northeast and midwest–even existing nuclear plants need subsidies to remain in operation. No US utilities are interested in new conventional nuclear, and many don’t even want the plants they already own. That’s just reality. Pointing at China doesn’t change the financial bottom line.

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China has put into service many more nuclear power plants in recent years than any other country. They currently have 55 or so nuclear power reactors in service. The majority of those plants started up in the last 10 years. China has about 18 plants currently in construction, with many more in the planning stages.

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China was supposed to have built 100 nuclear reactors by 2030 according to their plans in 2010. Their measly 55 nuclear reactors only supply 5% of their electrical power.

Renewables generate 30% of China’s electrical power. Shows that solar and wind are easier and cheaper to build then nuclear as is true in the rest of the world.

China: electricity generation share by source 2021 | Statista.

Jaak

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The intermittent renewables like here in California, and in Germany, have proven to be very expensive. Californians pay some of the highest electric rates in the US. Germans pay some of the highest rates in Europe. And the Germans are worried about how cold it is going to get this winter, as they have already shut down most of their nuclear power plants, and that pesky Nord Stream gas pipeline from Russia just blew up. Renewables are not going to save them on cold, calm winter nights.

  • Pete
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Wind and solar have not been expensive to build in California, Germany, China, UK, Denmark, Spain, and many other countries. New wind and solar power is being built around the world at much faster rate than nuclear power. The electricity prices in the past were higher in these countries because of taxes to pay for the transition from fossil fuels to renewables. However, if you look at Germany and France currently - then you see that they both have the highest electricity prices in EU as shown in the following link: https://euenergy.live/

Wind and solar are the cheapest and fastest form of electrical power generation to build and operate. No fuel costs, minimal maintenance costs, no nuclear accident worries, no nuclear waste worries, no radiation exposure to workers/operators, and no special nuclear security requirements.

Jaak

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Syke that is only because we have better accountants not because the costs are all the different. The Chinese government is picking up the financial problems…perhaps…The last nuke to come on line here was TVA/federal dollars. These plants are not competitive cost wise for the utility companies here or in China.

Bottom line the US only needs and wants a deflationary energy source. Saying we need an inflationary energy source is not what we are after.

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A new adjective!!! Amazeballs!!! LOVE IT!!

'38Packard
(I’m sure it was a spellcheck thing - but funny nonetheless!)

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And no such thing as low prices

Mike

P.S. Jaak, it’s not too difficult to officially quote the post you are replying to. And it makes it easier to read and know who you are quoting, automatically.
Method #1: select the text from the post then click the Quote box that appears above/left of the selected text.
Method #2: just click the empty text ballon just to the left of the B and I (bold and italics) icons in the reply box.

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