BEYOND NUCLEAR PUBLICATIONS

Search
JOIN OUR NETWORK

     

     

DonateNow

 

 

CWIP

CWIP, or Construction Work in Progress, is a law, fortunately existent only in a handful of U.S. states, that allows a utility to charge ratepayers higher rates to cover future costs of a yet-to-be-constructed reactor, even if that reactor is never built.

.................................................................................................................................................................................................................

Friday
Sep012017

Is Vogtle 3 & 4 Decision a Hail Mary for Summer 2 & 3?!

The Nerve, S.C. Policy Council - Georgia's nukes: 'We'll go on'--Is it a ray of light for V.C. Summer? - Robert Meyerowitz

No matter how you slice it, ratepayers bear the risks...

Wednesday
Aug022017

Trigaux: Blind to runaway costs, nuclear power industry abandons another nuke plant

Business column in the Tampa Bay Times, by Robert Trigaux.

Trigaux concludes his column about the cancellation of Summer 2 & 3 in SC, as well as the cancellation of Levy County in FL:

None of these projects would have seen the light of day if state laws had not been enacted to shift the financial risk of grotesquely expensive nuclear plants from power company shareholders and dumped it all on hapless ratepayers. Utility customers typically have no other choice for their electricity. Florida's law, signed in 2006 by then Gov. Jeb Bush, was a loser from day one. Shame on Tallahassee for still having it on the books 11 years later.

Monday
Jul312017

FOE: South Carolina Bungled Nuclear Reactor Construction Project Canceled

Next Step: Who will be Held Accountable and When will Ratepayers Receive Refunds?


See the full press release by Friends of the Earth, featuring a statement by FOE's senior advisor, Tom Clements.

Here is an excerpt from Clements' statement:

To reduce the on-going blow to SCE&G ratepayers already paying 18% of the bill just to pay for project financing, it’s time for money to be refunded as it was collected from them under the false pretense that advance payment for the nuclear project was sound. In proceedings before the South Carolina Public Service Commission, we pledge to be a steward of the public interest and to determine who must be held accountable for this boondoggle and to fight for monetary reparations to customers.

Advance payment has also been referred to as "Construction Work in Progress," or CWIP.

Friday
Mar312017

Georgia and South Carolina ratepayers could lose many billions of dollars in return for zero electricity, if Westinghouse bankruptcy leads to cancellation of four partially constructed atomic reactors

Construction Work in Progress (CWIP), also known as advance cost recovery, is illegal in most states.

It was outlawed by popular referendum in Missouri in 1976, for example. In Indiana, CWIP's illegality led to the cancellation of partially constructed atomic reactors, when would-be nuclear utilities were busted in court by Citizen Action Coalition for trying to do it anyway, despite its illegality.

But the state governments of Georgia and South Carolina decided to make CWIP legal, in order to force ratepayers to fund construction of four Toshiba-Westinghouse AP1000 reactors: Vogtle Units 3 & 4 in Georgia, and Summer Units 2 & 3 in South Carolina. CWIP was made legal in South Carolina by the Base Load Review Act.

But Westinghouse Nuclear declared bankruptcy on March 29th, due to the massive cost overruns (in the billions of dollars), due to years-long construction delays, at the four reactors. There is a distinct possibility that all four reactors could be cancelled.

Already, after nine rate hikes in just the past several years, nearly 20% of South Carolina ratepayers' payments on their electric bills go toward the construction of Summer 2 & 3. If Summer 2 and/or 3 are cancelled, ratepayers will have invested billions of dollars, without receiving so much as one kilowatt-hour of electricity.

But at least if the two reactors are cancelled, the people of South Carolina won't face decades of "routine" radioactivity releases, as well as the risk of catastrophic releases of hazardous radioactivity, due to reactor core meltdowns, or high-level radioactive waste storage pool fires.

Vogtle 3 & 4 are also being financed through CWIP, through a surcharge on ratepayer bills, a veritable nuclear tax. In addition, Vogtle 3 & 4 were awarded $8.3 billion of federal taxpayer-backed nuclear loan guarantees, with zero credit subsidy fee. This means, if the Vogtle 3 & 4 construction project defaults on its loan repayment, that entire amount -- 15 times more taxpayer money than was lost in the Solyndra solar loan guarantee default -- could be lost to the U.S. Treasury.

For more information on the Westinghouse Nuclear bankruptcy declaration, and its implication for the ratepayers of Georgia and South Carolina (as well as for U.S. taxpayers, given the Vogtle 3 & 4 nuclear loan guarantees), please see Beyond Nuclear's Loan Guarantees website section.

Thursday
Mar302017

Decision to abandon South Carolina nuclear construction project could come in next 30 days

Thanks to Scott Stapf of the Hastings Group, for his tweet above, which points to the World Nuclear News article "Scana to evaluate Summer options."

The Summer 2 & 3 new reactors -- Toshiba-Westinghouse AP1000s -- are being financed by Construction Work in Progress (CWIP), also known as advance cost recovery, made legal in South Carolina by the Base Load Review Act.

CWIP is illegal in most states.

Already, after nine rate hikes in just the past several years, nearly 20% of South Carolina ratepayers' payments on their electric bills go toward the construction of Summer 2 & 3. If Summer 2 and/or 3 are cancelled, ratepayers will have invested billions of dollars, without receiving so much as one kilowatt-hour of electricity.

But at least if the two reactors are cancelled, the people of South Carolina won't face decades of "routine" radioactivity releases, as well as the risk of catastrophic releases of hazardous radioactivity due to reactor core meltdowns or high-level radioactive waste storage pool fires.