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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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Friday
Oct262012

"The Rust-Bucket Reactors Start to Fall"

Harvey WassermanHarvey Wasserman, editor of Nukefree.org and author of Solartopia, has written a blog inspired by the announced closure of the Kewaunee atomic reactor in Wisconsin. He begins by stating 'The US fleet of 104 deteriorating atomic reactors is starting to fall. The much-hyped "nuclear renaissance" is now definitively headed in reverse.'

He points out that Kewaunee may be but the first domino to fall, describing the impact of "low gas prices, declining performance, unsolved technical problems and escalating public resistance" at numerous other old, age-degraded, troubled reactors across the U.S., including San Onofre, CA; Crystal River, FL; Cooper and Fort Calhoun in NE; Vermont Yankee; Indian Point, NY; Oyster Creek, NJ; and Davis-Besse, OH.

Harvey writes "Many old US reactors are still profitable only because their capital costs were forced down the public throat during deregulation, through other manipulations of the public treasury, and because lax regulation lets them operate cheaply while threatening the public health."

Harvey recounts this abysmal history of nuclear power in the U.S., having much to do with doomed economics: "The announcement that Kewaunee will shut could send the US fleet into free fall. Richard Nixon promised the US a thousand reactors by the year 2000. But in fact there were 104. And with the needle now dropping, it's clear the "Peaceful Atom" is on its way out."

But Harvey also points out the momentum applies to new reactors as well, such as at Vogtle, GA and Summer, SC, as well as overseas, in the wake of Fukushima, not only in Japan, but also India, and even Europe, led by Germany's nuclear power phase out.

Harvey writes about the flagship new reactors proposed in the U.S.:

"The two reactors under construction in Georgia, along with two in South Carolina, are all threatened by severe delays, massive cost overruns and faulty construction scandals, including the use of substandard rebar steel and inferior concrete, both of which will be extremely costly to correct.

A high-priced PR campaign has long hyped a "nuclear renaissance." But in the wake of Fukushima, a dicey electricity market, cheap gas and the failure to secure federal loan guarantees in the face of intensifying public opposition, the bottom may soon drop out of both projects.

A proposed French-financed reactor for Maryland has been cancelled thanks to a powerful grassroots campaign. Any other new reactor projects will face public opposition and economic pitfalls at least as powerful."

Harvey, a senior advisor to Greenpeace USA and Nuclear Information and Resource Service (NIRS), will address "From Fukushima to Fermi-3: Getting to Solartopia Before It's Too Late" in Dearborn, MI on Dec. 7th at the official launch event for the new organization, the Alliance to Halt Fermi-3.

Thursday
May102012

"Nuclear industry suffers major defeat in Iowa"

"Burning Money" image by Gene Case, Avenging AngelsFriends of the Earth (FOE) reports that the Iowa State Legislature has ended its session without approving "Construction Work in Progress" (CWIP), a gimmick by which nuclear utilities can charge ratepayers on their electricity bill for the construction of atomic reactors, even if they never recieve one watt of electricity from their involuntary "investment." The victory is thanks to the efforts of an environmental coalition, including FOE as well as grassroots groups such as Green State Solutions. The grassroots environmental victory comes despite intense lobbying efforts by Warren Buffett's MidAmerican Energy, which hoped to foist the construction costs for its proposed "dirty, dangerous, and expensive" atomic reactor onto the ratepayers of Iowa, despite 3/4ths of Iowans opposing the plan.

Monday
Apr162012

"Stop the Nuclear Industry Welfare Program"

"Burning money" image by Gene Case, Avenging AngelsJust a couple days after rocking an anti-nuke rally in Brattleboro, Vermont, calling for the immediate shutdown of Entergy Nuclear's Vermont Yankee atomic reactor, Independent U.S. Senator Bernie Sanders has joined forces with Taxpayers for Common Sense Executive Director Ryan Alexander to pen an article on theHuffington Post entitled "Stop the Nuclear Industry Welfare Program." Sanders and Alexander list the many, large-scale taxpayer subsidies the nuclear power industry has enjoyed for over half a century. They point out the irony of filthy rich nuclear utility companies, like Exelon and Entergy, receiving such public support in the first place: they take in annual revenues of $33 billion and $11 billion, respectively.

On March 11, 2011, the Union of Concerned Scientists unveiled two major studies, one by David Lochbaum about the near misses at U.S. reactors in 2010, the second by Doug Koplow, a comprehensive analysis of half a century of taxpayer and ratepayer subsidies to the nuclear industry. The long scheduled press conference was eclipsed by the Fukushima Daiichi nuclear catastrophe which began just hours earlier. In this year's annual review report, "Living on Borrowed Time," Lochbaum documented that 5 of 15 near misses at U.S. reactors in 2011 took place at Entergy owned (Palisades, MI X 2; Pilgrim, MA X 2) or operated (Cooper, NE) plants. Sanders and Alexander point out that, for any catastrophic radioactivity release at a U.S. reactor causing more than $12 billion, U.S. taxpayers would be looked to for picking up the tab, under the Price-Anderson Act.

Monday
Jan022012

Fukushima further "explodes the myth" of the "nuclear renaissance"

Images such as the explosion at the Fukushima Daiichi Unit 3 reactor seared into the public's mind internationallyIn a new report entitled "Nuclear Safety and Nuclear Economics: Historically, Accidents Dim the Prospects for Nuclear Reactor Construction; Fukushima Will Have a Major Impact," Dr. Mark Cooper of the Vermont Law School's Institute for Energy and the Environment compares the cost increases for new reactor construction -- due to increased nuclear safety regulation in the aftermath of the 1979 Three Mile Island meltdown -- to escalating costs that can be expected after the Fukushima nuclear catastrophe. Cooper points out, however, the new reactor construction costs were already skyrocketing before the TMI and Fukushima meltdowns -- but the accidents accelerated the cost increases dramatically.

He concludes: "From a big picture perspective, Fukushima has had and is likely to continue to have an electrifying impact because it combines the most powerful message from TMI on cost escalation with the most powerful message from Chernobyl on the risk of nuclear reactors in a nation where it was not supposed to happen. And, it has taken place in an environment where information and images flow instantaneously around the world, so the public sees the drama and trauma of losing control of a nuclear reaction in real time."

Cooper points out that of the dozens of new reactors proposed in the U.S. over the past decade, the number of reactors actually moving forward is but a handful, and those only through heavy subsidies, such as the $8.33 billion federal loan guarantee for two new AP1000s at Vogtle nuclear power plant in Georgia, or the Construction Work in Progress subsidies provided at the expense of ratepayers in Georgia as well as South Carolina, for the two new AP1000s targeted at Summer nuclear power plant.

Thursday
Dec292011

What is really behind the "witch hunt" targeted at NRC Chairman Jaczko?

Alex Flint, now NEI's top lobbyist, was a primary author behind the creation of the nuclear loan guarantee program while a U.S. Senate stafferRyan Grim of Huffington Post, in an in-depth investigative report, documents that U.S. Nuclear Regulatory Commissioner (NRC) William Magwood IV and top Nuclear Energy Institute lobbyist Alex Flint have worked together before to "take down" Democratic political appointees in the nuclear energy field. Andrew Cockburn had also previously reported on this story at Counterpunch, quoting Beyond Nuclear's Kevin Kamps:

“[NRC Chairman Jaczko's] not ‘our guy’ by any means, he has voted to re-license plants that should probably be shut down” says Kevin Kamps of Beyond Nuclear.  “But he does care about safety, in ways that the [other NRC Commissioners] do not.”

Alex Flint (pictured, left), while serving as a top committee staffer for U.S. Senator Pete Domenici (R-NM), Chair of the Energy and Natural Resources Committee, was a primary author of the nuclear loan guarantee language in the Energy Policy Act of 2005, which has already netted the nuclear power industry with $22.5 billion of taxpayer-backed nuclear loan guarantees for new reactors and uranium enrichment facilities. Flint now works for the Nuclear Energy Institute as Senior Vice President for Governmental Affairs.

One of Jaczko's greatest "transgressions" against the nuclear power industry and its right wing political supporters -- earning their eternal wrath -- seems to be his carrying out of President Obama's policy decision to phase out the Yucca Mountain high-level radioactive waste dump. Before becoming an NRC Commissioner, Magwood had advocated for opening the Yucca dump.

Media coverage of this "mutiny" at the highest levels of the NRC began on Friday, December 9th with U.S. Representative Darrell Issa's (Republican-California) public release of a letter from NRC Commissioners Magwood, Svinicki, Ostendorff, and Apostolakis to President Obama that was clearly marked "Not for Public Disclosure," and has continued up to the present, as documented, with links to the articles, at the State of Nevada Agency for Nuclear Project's What's News page.

The webcast of the 3 hour, 30 minute long hearing on these matters, conducted on Dec. 15, 2011 by the U.S. Senate Environment and Public Works Committee, chaired by U.S. Senator Barbara Boxer (D-CA), featuring the five NRC Commissioners as the sole witnesses, is archived online.