TVA idles both units for Watts Bar repairs
Less than two days after a transformer fire forced TVA's newest reactor to shut down, the other reactor at the Watts Bar Nuclear Plant was also shut down Thursday to help plant workers perform needed tests and equipment repairs in the switchyard.
TVA spokesman Jim Hopson said the Unit 1 reactor at Watts Bar was idled to allow plant workers to safely assess the main bank transformers and other equipment without the switchyard being energized with electricity.
"The safest way to do the assessment we need to do is to de-energize the switchyard and the only way to that is to take the unit of line," Hopson said. "We wanted to ensure the safety of our employees while they do this necessary work."
Hopson said TVA hopes to complete the evaluation and to be able to restart the Unit 1 reactor "within a few days." But in the meantime, TVA is getting no power from either reactors at Watts Bar even as summertime temperatures keep power demand relatively high in the Tennessee Valley.
TVA was in the midst of a series of power ascension tests on its new Unit 2 reactor on Tuesday when a fire erupted in a main bank transformer on the non-nuclear side of Watts Bar. The fire triggered a trip of the Unit 2 reactor, which was operating at about 99 percent of its rated 1,150-megawatt capacity at the time.
TVA and Nuclear Regulatory Commission crews are still evaluating the cause of the fire and any corrective actions TVA needs to take to ensure the safety of the plant when it resumes power generation. The fire-damaged transformer will be replaced with one of the spare units on site at Watts Bar, Hopson said.
Storms idle Georgia ports
The Georgia Ports Authority will close its port facilities in both Savannah and Brunswick, Ga., today because of adverse weather conditions and the threat of major storms. Closed facilities include Garden City Terminal and Ocean Terminal in Savannah; and the Colonel's Island Bulk Facility and Mayor's Point Terminal in Brunswick.
The GPA said it may resume field operations as early as this evening.
Georgia Gov. Nathan Deal has declared a state of emergency for 56 counties, including Glynn and Chatham counties, where Georgia's deepwater ports are located.
"Out of an abundance of caution, and for the safety of our employees, local residents, customers and service providers, we are closing our facilities until the storm has passed," said GPA Executive Director Griff Lynch.
Productivity declines while labor costs rise
U.S. productivity fell in the April-June quarter by a larger amount than first estimated, while labor costs accelerated sharply.
Productivity declined at an annual rate of 0.6 percent, even worse than the 0.5 percent drop initially reported, the Labor Department reported Thursday. It marked the third straight quarter productivity has fallen.
Labor costs rose at an annual rate of 4.3 percent, the biggest rise since a 5.7 percent increase in the fourth quarter. Labor costs had fallen at a 0.3 percent rate in the first quarter.
Productivity is the amount of output per hour of work. It is the major factor that supports rising living standards and has been lagging in the current seven-year economic expansion.
The downward revision in productivity for the second quarter matched the 0.6 percent decline in productivity in the first quarter. The latest figure reflected the fact that the government last week revised lower its estimate of overall output, as measured by the gross domestic product. The revision showed GDP grew at an anemic 1.1 percent rate in the second quarter, slightly lower than the 1.2 percent first reported.
UPS to raise rates 4.9 percent in December
UPS will increase rates on many basic delivery services by an average of 4.9 percent starting Dec. 26.
The higher rates will cover U.S. ground shipping, U.S. air freight and international shipping, and regular freight.
UPS said Thursday the extra money will help pay for expansion and improvements.
United Parcel Service Inc. earned $2.4 billion in the first six months of this year, a 6 percent increase over the same period of 2015.
Thirty-year mortgage rates up this week to 3.46 percent
Long-term U.S. mortgage rates rose this week amid expectations in financial markets that an increase in interest rates by the Federal Reserve may be on the horizon. Mortgage rates remain at historically low levels, however.
Mortgage giant Freddie Mac said Thursday the average for the benchmark 30-year fixed-rate mortgage was 3.46 percent, up from 3.43 percent last week. The average rate is down from 3.89 percent a year ago, and is close to its all-time low of 3.31 percent in November 2012.
The 15-year fixed mortgage rate increased to 2.77 percent from 2.74 percent.
Factory activity shrinks for first time in 6 months
U.S. manufacturing contracted last month for the first time since February, as new orders and output plummeted and factories cut jobs.
The Institute for Supply Management said Thursday its manufacturing index dropped to 49.4 in August from 52.6 in July. Any reading below 50 signals contraction.
The report suggests that manufacturers continue to struggle as businesses spend less on machinery, computers and other large equipment. Auto sales have also leveled off this year after reaching a record level in 2015.