BEYOND NUCLEAR PUBLICATIONS

Search
JOIN OUR NETWORK

     

     

DonateNow

 

 

Loan Guarantees

New reactor construction is so expensive and unpredictable that no U.S. utility is willing to take the risk without the backing of federal loan guarantees, potentially in the hundreds of billions of dollars. Beyond Nuclear and others fight to prevent the mature nuclear industry from seizing any such subsidies which are better spent on true climate solutions such as renewable energy and energy efficiency programs.

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

Thursday
Oct052017

Trump DOE ups nuclear loans to $12 billion despite multiple investigations 

The Trump administration's Department of Energy (DOE) has, shockingly, just offered Southern Nuclear and its partners in the construction of the Vogtle 3 & 4 new reactors in Georgia a $3.7 billion (yes, with a B!) federal taxpayer-backed loan guarantee, in a bid to shore up the faltering new build project. This is on top of the $8.3 billion nuclear loan guarantee awarded by President Obama's DOE a few years ago, making a tidy $12 billion overall. That's more than half of the total approved for nuclear loan guarantees nationwide a decade ago during the George W. Bush administration. This is more than 22 times the amount of taxpayer money put at risk, than was lost in the Solyndra solar loan guarantee default several years ago, which congressional Republicans like U.S. Rep. Fred Upton (St. Joe, MI) made such a stink about at the time. It obviously puts all that federal taxpayer funding at very high risk of a loan default at Vogtle 3 & 4. Energy Secretary Rick Perry's largesse with taxpayer funds, to benefit filthy rich nuclear corporations, flies in the face of the cautionary tale at Summer nuclear power plant in South Carolina.  
 
Multiple federal and state investigations are now under way, probing wrongdoing associated with the recent cancellation of two proposed new reactors of the same design as at Vogtle -- Toshiba-Westinghouse AP1000s. The bankruptcy of Westinghouse, announced on March 29th, has led to Summer 2 & 3's cancellation, representing a huge loss of billions of dollars of ratepayer funding. Westinghouse's historic bankruptcy was due to the massive cost overruns, and years-long schedule delays, at these four AP1000 new builds in the Southeast. Please contact your U.S. Rep., as well as both your U.S. Senators, via the Capitol Switchboard (202-224-3121), and urge them to do all they can to block this latest giveaway of taxpayer money to the nuclear power industry! (The image, "Burning Money," above left, is compliments of the late Gene Case, of Avenging Angels; it was featured on the cover of The Nation magazine in 2003, accompanying Christian Parenti's feature article about the nuclear power relapse, of which Summer 2 & 3, and Vogtle 3 & 4, are the dubious flagships.) More 
Thursday
Aug032017

EXPERTS: V.C. SUMMER FAILURE SHOULD PUT AN END TO STATE AND FEDERAL BAILOUTS FOR NUCLEAR INDUSTRY

As quoted in an August 3, 2017 coalition press release, warning about the next shoe that could drop, in the aftermath of the cancellation of the Summer Units 2 & 3 atomic reactors in S.C. -- $8.3 billion of federal taxpayer-backed nuclear loan guarantees, at Vogtle Units 3 & 4 in Georgia (Michael Mariotte of NIRS liked to point out that that is 15 times the amount of taxpayer money lost in the Solyndra solar loan guarantee default):

Even if there is no new federal bailout for nuclear, taxpayers could still end up on the hook for billions of dollars if the Vogtle project goes belly up.

Ryan Alexander, president, Taxpayers for Common Sense, a nonprofit and nonpartisan taxpayer advocacy group, said: “The VC Summer project relied on the same problematic reactor designs and contractor, the recently bankrupt Westinghouse Corporation, as Southern Company’s Plant Vogtle. Westinghouse’s AP1000 design was being used in both VC Summer and Vogtle. Both projects have experienced multiple delays and significant cost overruns. Westinghouse’s recent bankruptcy pushed both projects further into turmoil. Unlike VC Summer, Vogtle managed to win themselves more than $8 billion in taxpayer-backed loan guarantees. So while federal taxpayers should and must watch any efforts to contribute to the bailout of the state of South Carolina and the players involved in the VC Summers project, billions in tax dollars are already at risk with the Vogtle project. It seems clearer than ever that the writing is on the wall for taxpayers. We’ve said it for 8 years: These massive nuclear reactor projects were doomed from the start, and taxpayer money should not be risked on them.”

Wednesday
Aug022017

Critics train their sights on Vogtle's future

As reported by E&E News. (Please note, all but the first sentence of this article is hidden behind a pay wall.)

$8.3 billion in federal taxpayer-back nuclear loan guarantees are at stake, if Vogtle 3 & 4's partners (including Southern Co.'s Georgia Power) default on their loan repayment. See posts in this LOAN GUARANTEE section, below, for more information on this.

$8.3 billion is 15 times more taxpayer money than was lost in the Solyndra solar loan guarantee default several years ago.

This particular article does not mention the federal loan guarantees at risk at Vogtle.

However, it does mention another potential federal taxpayer subsidy:

Even with that agreement in place, consumer advocates are worried that customers will wind up shouldering the burden of Vogtle's price tag. Westinghouse's parent, Toshiba Corp., has promised to underwrite $3.7 billion of the project, but it, too, is on shaky financial ground.

Congress could extend production tax credits, but the Senate has failed to act on a measure so far.

"There's just too much uncertainty, and I find that absolutely unacceptable," said Liz Coyle, executive director for Georgia Watch, a consumer group.

Whether it's CWIP (Construction Work in Progress, or advanced cost recovery, a.k.a. nuclear "tax" surcharges on ratepayers' electric bills), federal nuclear loan guarantees, or federal production tax credits, these all add up to massive public subsidies to filthy rich corporations like Southern Co. and GA Power.
And to these economic moral hazards of "we don't care how financially risky it is, because we're spending other people's money," must be added the radioactive moral hazards, if and when the two reactors at Vogtle 3 & 4 are completed and fired up -- reactor operating risks, as well as radioactive waste risks.

 

Tuesday
Aug012017

Death of Scana's V.C. Summer project puts industry on notice

As reported by E&E.

The $8.3 billion in federal taxpayer-backed nuclear loan guarantees at Vogtle Units 3 & 4 are mentioned in this article, by Stan Wise, GA PSC Commissioner, in the context of differences between the now-cancelled Summer Units 2 & 3 in SC, and the not-yet-cancelled Vogtle 3 & 4 units in GA:

Plant Vogtle also has more owners to spread out costs and has a federal loan guarantee. What's more, Toshiba has agreed to pay billions to both plants in parent guarantees, and more money is going to Vogtle, he said.

The statement came amidst a section of the article discussing Vogtle 3 & 4's future. GA decision makers may rule yet this month whether or not to proceed with Vogtle Units 3 & 4.

Wednesday
Jul262017

Why the Scariest Nuclear Threat May Be Coming from Inside the White House

As reported by Michael Lewis in Vanity Fair.

The article begins:

Donald Trump’s secretary of energy, Rick Perry, once campaigned to abolish the $30 billion agency that he now runs, which oversees everything from our nuclear arsenal to the electrical grid. The department’s budget is now on the chopping block. But does anyone in the White House really understand what the Department of Energy actually does? And what a horrible risk it would be to ignore its extraordinary, life-or-death responsibilities?

The article includes a long section on the loan guarantee program at Energy Dept. It mentions the Solyndra solar loan guarantee default -- with a loss of $535 million to American taxpayers. 

The article then goes on to say the remainder of the $70 billion energy loan guarantee program had been successful, even making a profit for the U.S. Treasury.

However, it left out a very high risk nuclear loan guarantee from the DOE, for $8.3 billion, toward the Vogtle 3 & 4 proposed new reactors in Georgia.