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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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Tuesday
Mar172015

Exelon Nuclear announces sign off by Montgomery and Prince George's Counties, MD, on its merger with Pepco

Logo compliments of Public Citizen's Energy ProgramThe two counties comprising Pepco's residential customer base in Maryland -- Montgomery and Prince George's -- have just agreed to the merger of the electric utilities Exelon and Pepco, according to an Exelon press release.

UtilityDIVE has reported on this story.

Exelon is the largest nuclear utility in the U.S., with around two dozen dirty, dangerous, and expensive aging reactors in its nationwide fleet.

Despite the positive spin of Exelon's high-priced PR campaign, the simple truth is that the counties, and other organizations expressing support for the merger, have sold out cheap. Exelon's commitments to low income and other ratepayers in the Pepco service area are quite minimal. Exelon's commitments to energy efficiency upgrades and renewable energy expansion are likewise small-scale, compared to what is possible and needed.

To the contrary, Exelon has declared "nuclear war" against renewables and efficiency, as unwanted competition to its nuclear and fracked natural gas generators.

And perhaps most significantly of all for hard-working Maryland ratepayers: Exelon's thinly veiled motivation for merging with Pepco in the first place is to secure a solid rate base of customers, which it can milk to help prop up uncompetitive, and ever more dirty (as due to tritium leaks), dangerous (as due to meltdown risks), and age-degraded atomic reactors in Illinois -- where Exelon is simultaneously seeking massive ratepayer bailouts.

Sunday
Mar082015

"Experts warned of nuke work overruns"

The Vogtle Unit 3 reactor pressure vessel, parked in front the Vogtle Unit 4 containment vessell bottom head, May 2013. Photo credit: Georgia Power.As reported by Matt Kempner in the Atlanta Journal Constitution, the two new atomic reactors under construction at the Vogtle nuclear power plant in Waynesboro, Georgia are "more than three years behind schedule," and costs for just one partner, Georgia Power (a subsidiary of Southern Nuclear) "is at least $1.4 billion, or 23 percent, over original projections."

The Vogtle 3 & 4 construction project (see photo, left) is being financed through "Construction Work in Progress" (CWIP), or "advanced cost recovery" -- that is, simply surcharging ratepayer electricity bills. This practice is illegal in most states, but has been made legal in Georgia, as well as South Carolina -- where two more new reactors at Summer nuclear power plant are also under construction (and also suffering schedule delays and massive cost overruns).

Highly controversial CWIP resulted in the loss to ratepayers of $3 billion, for a cancelled new nuclear power plant. Somehow that massive amount of money was spent, even though ground was not even broken on the failed project.

The Georgia Public Service Commission, the same agency that approved ratepayer CWIP surcharges in the first place, will now decide on whether or not ratepayers will eat the cost overruns at Vogtle 3 & 4.

In addition to gouging ratepayers, Georgia Power/Southern Nuclear is also gouging federal taxpayers, compliments of the Obama administration. In Feb. 2010, President Obama himself made the announcement that his U.S. Department of Energy was awarding $8.3 billion in federal loan guarantees to the Vogtle 3 & 4 project. In addition to the loan guarantees, the actual loan is coming from U.S. taxpayers as well -- from the taxpayer-funded U.S. Finance Bank. In that regard, the federal nuclear loan guarantee is already a failure -- it was supposed to entice private investors to actually loan the money to the project.

Incredibly, the DOE didn't even charge a penny in credit subsidy fee. This means Southern Nuclear/Georgia Power has no skin in the game. If the loan repayment is defaulted upon, taxpayers will be left holding the bag, entirely.

Vogtle 3 & 4 have put at risk 15 times more money than was lost in the Solyndra solar loan guarantee default. And Vogtle 3 & 4's risk of default is actually significantly higher than Solyndra's risk ever was.

(Re: the RPV in the photo above, it actually was involved in a transport accident at the Port of Savannah in Jan. 2013, when its transport train carriage collapsed under its massive weight. It then limped back to the Port, where it was exposed to the elements for an extended period, covered only partially by run of the mill tarps.)

Thursday
Mar052015

"Maryland Attorney General opposes Exelon-Pepco merger, urges regulators to reject"

Logo courtesy of Public Citizen Energy ProgramAs reported by UtilityDIVE, the State of Maryland's Attorney General, Brian Frosh (Democrat), has filed a lengthy submission to the Maryland Public Service Commission on behalf of the State of Maryland and the Maryland Energy Administration, expressing strong opposition to the proposed merger of Exelon Nuclear and Pepco.

As reported by UtilityDIVE:

"This merger will harm Maryland customers, offers no tangible, incremental benefits of sufficiently meaningful value, and is not in the public interest," the document's conclusion reads. "Nothing in the filed testimony, or the evidence adduced during lengthy and comprehensive hearings, changes these facts."

Frosh's filing argues that the proposed merger would open Maryland ratepayers up to undue risk, expose them to anti-competitive harms not addressed by the merger application, and threaten the growth of renewables and distributed energy, among other consequences. Frosh also argues that the companies have not presented compelling plans to mitigate the possible harms:

"The proposed acquisition introduces substantial potential harms to Pepco and Delmarva customers and to the State as a whole, which are not subject to meaningful mitigation,” the brief reads.

Monday
Mar022015

"DC Consumer Advocate Seeks Delay in Exelon-Pepco Proceedings"

Logo courtesy of Public Citizen Energy ProgramAs reported by RTO Insider, Washington, D.C.'s consumer advocate, the Office of People's Counsel (OPC), has requested a months-long delay from the D.C. Public Service Commission in the Exelon-Pepco merger proceeding, because Exelon's recent filings are a "procedural mess." The OPC was joined in its motion to the D.C. PSC by the Apartment and Office Building Association of Metropolitan Washington.

In addition, the article reports, "the American Antitrust Institute asked the U.S. Department of Justice to block the merger or impose mitigation measures."

Thursday
Feb262015

EXELON LEGISLATION, FERC COMMENTS A “DECLARATION OF WAR” ON RENEWABLES AND EFFICIENCY, GROUP ASSERTS

In a press release, Nuclear Energy Information Service (NEIS) of Chicago has warned the energy future of IL is at stake, as Exelon Nuclear lobbyists have unveiled their wish list bill seeking $580 million from state legislators, at ratepayers' expense. In addition, Exelon seeks another $560 million from transmission grid operator, PJM Interconnection, also at ratepayers' expense.

NEIS has been defending IL ratepayers and residents against the state's nuclear utilities since 1981.