nuclear-news

Local rep looks to boost nuclear by letting companies charge customers for plants up front, Austin Huguelet, Springfield News-Leader  Dec. 29, 2019  Missouri hasn’t seen a new nuclear plant in more than 30 years.A local lawmaker and state air conservation officials say that needs to change to meet the demands of the future.

Their first step: letting power companies bill customers up front for the cost.

Rep. John Black, R-Marshfield, filed a bill earlier this month that would allow companies to add the cost of a new nuclear plant or renewable energy generator to customers’ rates while they’re under construction.

Missouri voters banned the practice via initiative petition in 1976, shortly after St. Louis-based Ameren’s corporate predecessor won approval to collect costs while it built the state’s first nuclear power plant in Callaway County.

Consumer advocates railed against the idea of paying for something not yet in service. Environmentalists raised the specter of potential disasters. At the ballot box, 63 percent of voters agreed, delivering a durable mandate that has withstood efforts to repeal the law.

…….. John Coffman, who led the state’s utility watchdog from 2003-2005 and now does advocacy work around the country, said Black’s idea is simply about shifting risk from Wall Street to utility customers.

“Sometimes Wall Street doesn’t want to invest in it unless they’re using the ratepayers’ money to do it,” Coffman said. “But then people should be asking, ‘Why is that?’”

……..Ed Smith, the policy director for the Missouri Coalition for the Environment he said the lack of easy taxpayer or ratepayer money for nuclear has led Ameren to make better decisions for the public.

“Missouri was spared of having its customers spend billions of dollars on a nuclear plant,” he said. “And Ameren has acquired wind farms, built pipelines and done other things that are prudent for its customers rather than chasing this shiny nuclear idea that would generate a chunk of money for investors but was not in the best interest of their customers.”……..

John Coffman, who now represents the Consumers Council of Missouri, said all Black’s bill does is shift the risk taken on by investors and shareholders to customers.  That may not be a problem if a project is completed on time and on budget, but Coffman said other recent projects suggest there’s no guarantee and plenty of downside.

He represented AARP of South Carolina in the aftermath of that state passing a law allowing cost recovery during construction, which led to utility companies spending $9 billion on a reactor and then abandoning it amid cost overruns, delays, falling energy demand and the bankruptcy of its lead contractor.

Ratepayers have already paid more than $2 billion for the project, according to the (Charleston) Post and Courier, and are on the hook to pay a new owner roughly the same amount over 20 years.

“The public should not be their insurance,” Coffman said………

The legislation is House Bill 1784. https://www.news-leader.com/story/news/politics/2019/12/29/john-black-nuclear-power-charging-customers-up-front/2752198001/