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CPS Energy writes off $millions from Texas nuclear expansion project

financial-disaster-1CPS Energy writes off $391.4 million from South Texas Project nuclear expansion San Antonio Express News, 24 Feb 16 CPS Energy revealed Wednesday it has written off $391.4 million in costs associated with its partnership of the unbuilt — and highly criticized — Units 3 and 4 of the South Texas Project nuclear plant……..

Longtime opponents of the nuclear expansion said CPS Energy made the correct move to write off its costs so far.

“CPS’ decision shows that proposed nuclear reactors are worthless. There’s no market for their rate raising, high-cost, high-risk power,” Tom “Smitty” Smith of Public Citizen’s Texas office in Austin said in an email. “The proposed reactor price tag rose from $5.9 billion to $18.2 billion, even before a license was ever issued. Delays, construction problems and lawsuits are the norm for nuclear reactors. They cost so much that even with all the federal subsidies, no bank will loan money to build them. CPS did the smart thing and wrote off this worthless investment.”

Controversy erupted in 2009 over the expansion project, which already had received intense opposition over concerns about storage of waste fuel and estimated cost of $13 billion.

It was revealed that a new cost estimate from partner Toshiba Inc. — $4 million higher than the previous one — had been withheld by utility executives from the CPS board and City Council while additional financing was under consideration……….

“The NRC (Nuclear Regulatory Commission) can license these reactors, but they won’t get built,” added Karen Hadden of the Sustainable Energy and Economic Development Coalition. “Renewable energy is cheaper these days and much safer. Nuclear power creates radioactive waste that remains deadly for hundreds of thousands of years.”……..

By David Hendricks

February 24, 2016

February 27, 2016 - Posted by | business and costs, USA

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