Effects of Electricity Deregulation on Nuclear Power Safety. V. M. Bier, J. K. Joosten, J. D. Glyer, J. A. Tracey, and M. P. Welsh, University of Wisconsin-Madison, Connect USA, and Christensen Associates
Changes associated with economic deregulation of the U.S. electricity supply industry will cause major restructuring, with the potential to affect nuclear power safety. This study was undertaken to identify possible consequences of deregulation for nuclear power safety. A historical case study approach was adopted (using literature reviews and interviews), focusing on the U.S. aviation and rail industries and the United Kingdom nuclear power industry because of their relevance to the U.S. nuclear power industry. Overall, the experience of the case study industries suggests that economic deregulation need not be incompatible with a reasonable safety record, especially in areas where safety is positively related to productivity. However, safety clearly cannot be taken for granted after deregulation, since adverse effects on safety were observed in each of the three case study industries. Among the most notable of those involved financial pressures, safety culture problems associated with mergers and acquisitions, increased use of contractors, and downsizing. The magnitude and speed of such changes can create major challenges to the management of safety. Careful review and study of the problems observed in the case studies may make it possible to identify proactive ways of minimizing similar safety problems in the U.S. nuclear power industry.
This paper was prepared with the support of the U.S. Nuclear Regulatory Commission (NRC) under Award No. NRC-04-97-064. The opinions, findings, conclusions and recommendations expressed herein are those of the authors and do not necessarily reflect the views of the NRC.
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