Christopher Dann is a Partner in the energy, chemicals, and utilities practice of Strategy& (formerly Booz & Company), a member of the Pwc network of consulting firms. His work in the utility sector includes a focus on generation portfolio strategy. Before joining Strategy&, Dann was with Strategic Decisions Group (SDG), Charles River Associates, and Arthur D. Little.
The existing U.S. nuclear fleet, representing 100GW or 20% of our electric generation, is in economic peril and in danger of declining even more rapidly than expected driven by five dominant factors:
• Sluggish Demand.
• Low Gas Prices.
• Aging Inventory.
• Escalating Costs.
• Competition from Renewables.
Sluggish Demand. Persistently low power demand in most markets driven by demand destruction during the recession and a prolonged sluggish recovery has depressed power prices in most markets - average reserve margins remain above 20% through 2018 in the NERC LTRA Anticipated Case.