nuclear-news

Nuclear power unpopular with utilities investors

The Motley Fool By  Justin Loiseau,   August 20, 2013“…….One of the biggest blows to nuclear came in June when Edison International (NYSE: EIX  ) announced the early retirement of two California nuclear units. The impetus for the exit came from a generator leak that had kept the plants off-line since January 2012. Not only did the decision cost Edison more than $300 million in post-tax damages, it also put 1,100 workers out of a job.

Given high costs and a risky regulatory environment, the utility probably made the right choice at the time. But if the NRC’s latest Entergy approval is any evidence, regulators may be more willing to let up a little to avoid another Edison exit.

But for utilities that haven’t yet made their nuclear investments, some are opting out before it’s too late. Duke Energy (NYSE: DUK  ) had previously planned to build a massive $24.7 billion Florida plant, but announced earlier this month that it would be backing off its original idea. The utility cited delays by the NRC in issuing new licenses, as well as state-level legislative changes. Duke will be looking increasingly toward natural gas to fuel its future, but will keep nuclear plans on the back burner in case opportunities arise…..”

August 21, 2013 - Posted by Christina Macpherson | general