Subsidies
The nuclear industry has been heavily subsidized throughout its 50+-year history in the U.S. It continues to seek the lion's share of federal funding since it cannot otherwise afford to expand.
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The article quotes Tim Judson of NIRS:
“The reactors in question are so uneconomical and uncompetitive that the capacity market simply cannot deliver enough revenue to change their fortunes,” said Tim Judson, executive director at the Nuclear Information and Resource Service, which seeks to shut nuclear plants.
Of some three-dozen proposed new “Nuclear Renaissance” atomic reactors, none have been built. Those that did break ground include Summer Units 2 and 3 in South Carolina, and Vogtle Units 3 and 4 in Georgia. The South Carolina new build was cancelled, wasting $9 billion of ratepayer money, after the bankruptcy of reactor vendor/builder Westinghouse Nuclear last spring. The Georgia new build, also years behind schedule and billions of dollars over budget, is also increasingly at risk of going belly up. $12 billion of federal taxpayer money, in the form of U.S. Department of Energy (DOE) loan guarantees, is at risk, in addition to many billions of dollars of ratepayer money. If Fermi 3 breaks ground, DTE could similarly apply for some $10+ billion remaining in the DOE nuclear loan guarantee fund, as well as major ratepayer electric bill “nuclear tax” surcharges, to finance construction.
As the article reports, Exelon's lobbying juggernaut is pulling out all stops, to gouge ratepayers at every possible turn:
“Since our last earnings call, we continue to see positive momentum for policy changes … at state, FERC and RTO levels,” said Joe Dominguez, vice president of governmental and regulatory affairs and public policy.
FERC is short for Federal Energy Regulatory Commission. A Trump administration proposal to subsidize old coal and nuclear power plants, to the tune of $180 billion, at ratepayer expense, over time, was recently blocked by a coalition of environmental, public interest, and consumer groups.
RTO is short for Regional Transmission Organization. That is where the Trump administration proposal and Exelon money grab attempt has now moved, to RTOs such as PJM (short for Pennsylania, Jersey, Maryland, a 13-state RTO stretching from the Atlantic to Illinois).
Critics got about one single line in the article:
According to its critics, Exelon is seeking subsidies for plants that are no longer economical to operate.
Citizens Against Nuclear Bailouts (PA) update and alert:
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Valentine’s Day is right around the corner, and we’re feeling the love from deregulation and energy costs lower than the national average. Ratepayers in New York and Illinois aren’t as fortunate, because their states caved and enacted nuclear bailouts. This has meant higher electricity prices for families, seniors and schools, but for what?
Exelon last week announced a dividend increase to shareholders. The company had the audacity to call out the nuclear bailouts in New York and Illinois as a reason for the increase.
This is a classic case of Wall Street getting richer at Main Street’s expense. This 5 percent increase would equate to an additional $64 million per year for shareholders, according to our estimates.
Perhaps nuclear conglomerates should invest in their facilities and employees instead of fattening the wallets of their shareholders.
And they’re not done just yet. In New Jersey, a new nuclear bailout bill has been introduced, and it’s been revealed that nuclear industry officials worked with former Gov. Chris Christie to draft an earlier version of the bill:
The senators introduced the bill a day after the Associated Press reported that it had obtained records showing that PSEG lobbyists worked with the administration of former Gov. Chris Christie (R) to strengthen language in the earlier version of the bill meant to keep the company’s financial information confidential. That version, which would have provided upward of $300 million annually to nuclear operators, failed when Speaker of the General Assembly Vincent Prieto declined to post it for a vote earlier this month.
If New Jersey goes through with a nuclear bailout, ratepayers won’t be feeling any love from the industry. Instead, they’ll feel heartache and regret, just like New York and Illinois.
Continue to stand with us against nuclear bailouts in Pennsylvania!
Citizens Against Nuclear Bailouts is a coalition of Pennsylvania citizen groups,
associations, businesses and industry leaders who stand united to oppose
government—and ultimately taxpayer--funding of nuclear bailouts.
Our mailing address is:
Citizens Against Nuclear Bailouts
PO Box 11484
Harrisburg, PA 17108
Published: Friday, February 2, 2018
Washington state's attorney general is suing the Federal Energy Regulatory Commission for records related to the agency's consideration of an ultimately rejected plan to compensate coal and nuclear plants. [That is, subsidize them at ratepayer expense, yet again.]
(The article is behind a pay wall.)
May 22, 2018