Finally, the NRC has demonstrated a successful plant license renewal process, which led to plant license renewal decisions for the five Calvert Cliffs and Oconee units in less than 23 months. License renewal applications were filed for five additional units in 2000, and applications are expected to be submitted for a further 28 units in the 2001-2004 time period. My final factor is industry consolidation and the adoption of new operating arrangements within the industry. Consolidation carries with it several benefits, including greater economies of scale, broader career development opportunities leading to improved employee retention, and the ability to capture the operating strengths and experience of the stronger performers. In addition, these larger nuclear operating organizations may be better equipped to cope with individual plant challenges.
Consolidation takes several forms.
One form is the creation of fewer, larger companies through mergers and acquisitions, which have resulted in greater nuclear management concentration. One example is the merger of PECO Energy and Unicom to form Exelon, which created the largest nuclear operating organization in the country with 17 operating units. Another form of new operating arrangements is the use of corporate restructuring within the industry. As the electric utilities transition to a competitive market, an increasing number of companies that wish to retain their generating plants are moving to a holding company structure with separate subsidiaries for the regulated transmission and distribution business, and for the unregulated generation business. In many instances, these new, unregulated generation subsidiaries will have a significant nuclear component.