nuclear-news

Rebellion looming in Utah and Florida against customers paying upfront for nuclear reactors

Editors Rebel Against Ratepayer Financing For Nuclear Plants, Forbes, Jeff McMahon 20 Feb 13,  This is a tale of two editorials today: one in Utah, lambasting a lawmaker for trying to sneak a price hike into energy bills to pay for a proposed nuclear plant, and one in Florida, demanding the repeal of just such a price hike, which has collected hundreds of millions from ratepayers for nuclear plants that may never be built…

.. In Utah, State Sen. Curt Bramble introduced SB199, a bill that allows utilities to bill customers in advance for “zero-carbon emissions generation” plants that produce up to 3,000 megawatts. The Salt Lake Tribune sees right through that language, saying the bill was “dropped in the hopper at the behest of developers who just won’t give up the foolish idea of building a nuclear power plant on Utah’s Green River.”

The bill proves that nuclear power is too risky and expensive for private capital markets, says the Tribune, so utilities that want to build plants and developers who want the electricity are trying to shuffle the cost onto ratepayers. The problem is that the billions needed for permitting and design could, as the Tribune puts it, “lead to a dry hole.”

And that’s just what seems to have occurred in Florida, where the editors of the Lakeland Ledger and Winterhaven News Chief want to repeal a 2006 law that allows utilities to bill customers in advance for proposed nuclear plants. Thanks to this law, Florida Gas & Light will collect $151 million this year, by the Ledger’s account, and Duke Energy will collect $143 million.

And the utilities are not obligated to return that money. “To the contrary, the fee translates into hundreds of millions in profits for the companies, regardless of what they do,” the Ledger contends. “Duke Energy is forecast to pocket $150 million, whether the Levy plants are built or not.”….. http://www.forbes.com/sites/jeffmcmahon/2013/02/20/editors-rebel-against-ratepayer-financing-for-nuclear-plants/

February 21, 2013 - Posted by Christina Macpherson | politics, USA