Saturday, February 27, 2010
Nuclear power plant construction in Georgia (photo: Southern Nuclear)
Nuclear power can’t seem to escape the word “risk” even when new technologies offer promises of safer reactor designs. Because of its reputation as a dangerous source of power, efforts to develop new power plants come with considerable financial risk, forcing the Obama administration to put taxpayers on the line for guaranteeing construction loans.
Banks are unwilling to finance new nuclear plants unless the federal government guarantees the loans, and that has opponents of nuclear power upset. Already, President Barack Obama has said the government will back development of two nuclear reactors in Georgia. In time, the government could be on the hook for more than $50 billion in guarantees.
To quiet the opposition, the administration wants industry to pay into a government-managed insurance fund to back the loans. Nuclear power lobbyists are pushing to keep the fees as low as possible. Current talks have the fees ranging from 1% to 25% of loans.
-Noel Brinkerhoff
Nuclear Subsidies Put Taxpayers at Risk (by Michael Kranish, Boston Globe)
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