Financial Impact of Nuclear Power Plants: FirstEnergy and Davis-Besse
In March 2002, during a scheduled refueling outage, workers at FirstEnergy's Davis-Besse nuclear power plant found a football-sized hole in the reactor head caused by boric acid corrosion. Redundant shielding prevented any radiation leakage, but FirstEnergy projected the outage would last two to three months and cost from $15 million to $30 million. Instead, the outage lasted 26 months and cost $588.9 million. Students will learn the financial impact of the event, how investors reacted, and lessons in financial transparency.
Collection: Darden University of Virginia (USA)
Ref: DARDEN-C-2232-E
Format: PDF
Number of pages: 6
Publication Date: Apr 6, 2009
Language: English
Description
In March 2002, during a scheduled refueling outage, workers at FirstEnergy's Davis-Besse nuclear power plant found a football-sized hole in the reactor head caused by boric acid corrosion. Redundant shielding prevented any radiation leakage, but FirstEnergy projected the outage would last two to three months and cost from $15 million to $30 million. Instead, the outage lasted 26 months and cost $588.9 million. Students will learn the financial impact of the event, how investors reacted, and lessons in financial transparency.
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Industry Setting: Energy
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