Value and Risk in $5.2B Nuclear Refurbishment
SDG analyzed the value and risk of the largest recent nuclear investment in North America: the $5.25 billion refurbishment of several units at a 6,200 megawatt nuclear facility.
The risk analysis included project schedule, development and operating cost, and impacts on plant cash flow and value. The analysis enabled the three owners and the operator to reach a consensus decision on the highest value way to refurbish the plants.
The risk analysis resulted in a radically different contracting strategy than had been originally planned. The analysis informed and aligned the owners and operator, improved risk mitigation plans, and allowed the owners to negotiate effectively with counterparties and the government in ways that successfully allayed much of the project risk.
