nuclear-news

Taxpayers at risk in nuclear plans

USA: Nuclear power’s up-front costs Persistent problems argue against increased tax investment  Herald Tribune October 21, 2009 .Whether you’re for or against nuclear power, you’re probably helping to fund its future expansion.
For example, Florida customers of Florida Power & Light and Progress Energy pay a monthly fee to help the utilities pursue new nuclear reactors — which may not be built for years, if ever. Only a few states allow that up-front charge. But nationwide, all taxpayers contribute in another way: by shouldering billions of dollars in loan guarantees for utilities seeking to expand nuclear power.

Without these guarantees — the federal government’s promise to pay off the incurred debt if the company defaults on its obligations — lenders would be unwilling to front the massive loans needed to build nuclear power plants.That’s because the process of planning and constructing a nuclear power plant is fraught with financial risk: It is lengthy (lasting an average of 10 years), is prone to mega-cost overruns, and has a history of defaults……….
The industry has not solved its radioactive waste problem………….

The high up-front costs, combined with this year’s deep recession, discourage new investment in nuclear power. Indeed, some companies that had planned to seek permission for new reactors have suspended their efforts.

That last obstacle — fiscal reality — is what federal loan guarantees are designed to address. Currently, $18.5 billion worth of loan guarantees are provided for, but U.S. Energy Secretary Steven Chu wants to double that amount, he said last month. Some advocates want to quintuple it.

The risks this presents are obvious. Taxpayers would be on the hook to pay back the loans if the planned nuclear power plants aren’t completed — a possibility for which the 1980s provide ominous precedent.

Conservation is a better deal………..

For now, energy conservation — a strategy with proven results — is a much better deal for taxpayers and consumers. Steady investments in clean energy must be made, but prudently.

Nuclear power — whose expansion Wall Street deems much too risky to fund without huge loan guarantees — isn’t what we’d call prudent.

Nuclear power’s up-front costs | HeraldTribune.com | Sarasota Florida | Southwest Florida’s Information Leader

October 22, 2009 - Posted by Christina Macpherson | 1, business and costs, USA | antinuclear, nuclear, nuclear costs