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1、 cannot be reduced by operating economiesHowever,the plant capacity factor,the fraction of rated capacity experienced(1044) ,has an important bearing on the fixed costs per unit of energy producedTherefore,there is a major incentive to minimize shutdown periodsAlthough fuel costs make a smaller cont
2、ribution,they lend themselves to savings by efficient fuel management during the plant Although less significant on a relative basis, operation and maintenance costs lifetime depend on efficient plant management Role of Rate Regulation 10.107. In considering the various factors affecting nuclear ene
3、rgy costs,the role of rate regulation deserves mentionInvestorowned public utilities are regulated by state public utility commissions since they have a franchise to serve a specific territoryTheir responsibility is to establish rates that provide the utility with a fair rate of return on the capita
4、1investedHowever,when the construction cost of new nuclear power plants escalated significantly during the late 1970s and early 1980s, opposition developed to burdening customers with corresponding major rate These disputes were resolved in various ways. At any rate, as a result of the increases nee
5、d to insulate utility rates from potentially high costs for new nuclear power plants, the Public Utilities Regulatory Policy Act was enacted in 1978This provides for a modified free market energy economy under control of the Federal Energy Regulatory Commission(FERC) The National Energy Policy Act(N
6、EPA)of 1992 provided further deregulation, particularly in the opening of transmission grids for the transport of electricity so that competitive marketing is now possible. Also,now permitted are non rate based independent power producers who can take advantage of this new access to markets 10.108.w
7、e can anticipate some restructuring of the electric utility industry in the United States with other than traditional forms of ownership being permittedFor example , independent power producers , not subject to rate structure based regulation,might market energy on a competitive wholesalebasis to traditional electric utilities , which wou1d then , in turn , distribute the energy to their customersThe role of nuclear power p
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