nuclear-news

Iowa residents might have to take the financial risks of planned nuclear power plant

opens the door for MidAmerican to charge customers rather than fund a significant portion of a project with their own capital.

“It shifts the risk from the shareholder to the ratepayer,” 

Lawmakers question if nuclear bill helps customers, The Gazette, 11 March 12,   DES MOINES, Iowa (AP) — Iowa lawmakers could take action this week on a bill allowing MidAmerican Energy to seek permission from regulators to move forward with a nuclear power plant, but some are still questioning if the measure would hurt customers.

The measure would allow MidAmerican to ask the Iowa Utilities Board for a rate increase from the company’s customers to fund the cost of permitting, licensing, and building a plant. Costs for such a project have been estimated at $2 billion.

A committee vote on the measure was delayed last week, but Senate Commerce Committee Chairman Matt McCoy said he expects to bring it up this week if support doesn’t weaken under heavy pressure from opponents…..The proposal passed the House 68-30 last April but
failed to get to the Senate floor.

Under the measure, the utilities board would not be required to follow
traditional rate rules or the usual cost recovery methods, which
critic claim opens the door for MidAmerican to charge customers rather
than fund a significant portion of a project with their own capital.

“It shifts the risk from the shareholder to the ratepayer,” said Steve
Falck, a clean energy and water lobbyist for the Des Moines-based
Environmental Law & Policy Center. “It doesn’t matter when the bills
would actually come due to the ratepayer. They’re going to increase
dramatically.”….
Construction of a nuclear power plant would take a minimum of four
years, said Mark R. Schuling, the consumer advocate in the state
Justice Department. Schuling is responsible for investigating the
legality of rates and practices of Iowa’s regulated utility companies.

MidAmerican said construction could take up to 10 years to site,
design, license and build. The company said because it could take so
long, the state needs to begin now adopting regulations that encourage
development of nuclear generation…..
Location and other details of the proposed Iowa nuclear power plant
haven’t been determined.

In 2010, the Iowa Legislature passed a bill allowing for a three-year
feasibility study to assess the viability of nuclear generation in
Iowa. It gave MidAmerican permission to recover up to $15 million in
study costs from its Iowa electric customers.

MidAmerican began collecting in October 2010 at a cost to customers of
about $4 per year, which brought in $5.2 million. http://thegazette.com/2012/03/11/lawmakers-question-if-nuclear-bill-helps-customers/

March 12, 2012 - Posted by Christina Macpherson | business and costs, USA