FacebookTwitterGoogle+RedditEmail

New Nukes on the Brink

by HARVEY WASSERMAN

The only two US reactor projects now technically under construction are on the brink of death for financial reasons.

If they go under, there will almost certainly be no new reactors built here.

The much mythologized “nuclear renaissance” will be officially buried, and the US can take a definitive leap toward a green-powered future that will actually work and that won’t threaten the continent with radioactive contamination.

As this drama unfolds, the collapse of global nuclear power continues, as two reactors proposed for Bulgaria have been cancelled, and just one of Japan’s 54 licensed reactors is operating. That one may well close next month, leaving Japan without a single operating commercial nuke.

Georgia’s double-reactor Vogtle project has been sold on the basis of federal loan guarantees. Last year President Obama promised the Southern Company, parent to Georgia Power, $8.33 billion in financing from an $18.5 billion fund that had been established at the Department of Energy by George W. Bush.

Until last week most industry observers had assumed the guarantees were a done deal. But the Nuclear Energy Institute, an industry trade group, has publicly complained that the Office of Management and Budget may be requiring terms that are unacceptable to the builders.

Southern and its supporters remain ostensibly optimistic that the deal will be done. But the climate for loan guarantees has changed since this one was promised. The $535 million collapse of Solyndra prompted a rash of angry Congressional hearings and cast a long shadow over the whole range of loan guarantees for energy projects. Though the Vogtle deal comes from a separate fund, skepticism over stalled negotiations is rising.

So is resistance among Georgia ratepayers. To fund the new Vogtle reactors, Southern is forcing “construction work in progress” rate hikes that require consumers to pay for the new nukes as they’re being built. Southern is free of liability, even if the reactors are not completed. Thus it behooves the company to build them essentially forever, collecting payment whether they open or not.

All that would collapse should the loan guarantee package fail.

A similar fate may be awaiting the Summer Project. South Carolina Electric & Gas has pledged to build the two new reactors there without federal subsidies or guarantees. But it does require ratepayer funding up front. That includes an apparent need for substantial financial participation from Duke Power and/or Progress Energy customers in North Carolina who have been targeted to receive some of the electricity projected to come from Summer.

But resistance in the Tar Heel State is fierce. NCWarn and other consumer/anti-nuclear organizations are geared up to fight the necessary rate hikes tooth and nail. Should they win—and in a troubled economy there is much going for them—nuclear opponents could well take Summer down before it gets seriously off the ground.

Progress already has its hands full with a double-reactor project proposed for Levy County, Florida. Massive rate hikes granted for CWIP by the Florida legislature have ignited tremendous public anger. Unlike Vogtle and Summer, Levy County has yet to get NRC approval.

Progress is also over its head at Crystal River. Upwards of $2 billion has been poured into botched repairs at this north Florida reactor. Odds are strong it will never reopen.

The same may be true at California’s San Onofre, now shut due to problems with its steam generator tubing, a generic flaw that could affect up to about half the currently licensed 104 US reactors. Nukes at Vermont Yankee, New York’s Indian Point and Pilgrim, in Massachusetts, among others, are also under fierce attack.

These elderly reactors have been routinely issued extended operating licenses by the NRC.

But as their physical deterioration accelerates, official licenses may now be beside the point for these old reactors….and for new nukes as well. The major financial trade publications such as Bloomberg’s, Fortune et. al., now regularly concede that increased efficiency and renewable projects are cheaper, faster to build and more profitable than new reactors. The Tennessee Valley Authority, a federal agency, could conceivably pick up the corpse and try to build new reactors, as it did at the dawn of the nuclear age, when no private utilities would touch the untested but clearly dubious promise of the “Peaceful Atom.”

In the decades since, the promise of electricity “too cheap to meter” has proven to be a tragic myth.

And all these years later, the financial pitfalls of what may be America’s last two proposed reactor projects may write the final epitaph for an industry whose fiscal failures are in the multi-billions.

At the end of the road, it will still take citizen activism to finally bury this industry. But we may be very close to making it happen, and now is a critical time to push extra hard.

Harvey Wasserman, a co-founder of Musicians United for Safe Energy, is editing the nukefree.org web site. He is the author of SOLARTOPIA! Our Green-Powered Earth, A.D. 2030, is at www.solartopia.org. He can be reached at: Windhw@aol.com

 

Harvey Wasserman wrote SOLARTOPIA! Our Green-Powered Earth. His Green Power & Wellness Show is at www.prn.fm

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

May 29, 2017
Jim Kavanagh
No Laughing Matter: The Manchester Bomber is the Spawn of Hillary and Barack’s Excellent Libyan Adventure
Vijay Prashad
The Afghan Toll
Melvin Goodman
The Washington Post’s Renewed Attack on Whistlblowers
Robert Fisk
We Must Look to the Past, Not ISIS, for the True Nature of Islam
Dean Baker
A Tax on Wall Street Trading is the Best Solution to Income Inequality
Lawrence Davidson
Reality and Its Enemies
Harry Hobbs
Australia’s Time to Recognize Indigenous Peoples’ Sovereignty
Ray McGovern
Will Europe Finally Rethink NATO’s Costs?
Cesar Chelala
Poetry to the Rescue of America’s Soul
Andrew Stewart
Xi, Trump and Geopolitics
Binoy Kampmark
The Merry Life of Dragnet Surveillance
Stephen Martin
The Silent Apartheid: Militarizing Architecture & Infrastructure
Weekend Edition
May 26, 2017
Friday - Sunday
Anthony DiMaggio
Swamp Politics, Trump Style: “Russiagate” Diverts From the Real White House Scandals
Paul Street
It’s Not Gonna Be Okay: the Nauseating Nothingness of Neoliberal Capitalist and Professional Class Politics
Jeffrey St. Clair
The ICEmen Cometh
Ron Jacobs
The Deep State is the State
Pete Dolack
Why Pence Might be Even Worse Than Trump
Patrick Cockburn
We Know What Inspired the Manchester Attack, We Just Won’t Admit It
Thomas Powell
The Dirty Secret of the Korean War
Mark Ashwill
The Fat Lady Finally Sings: Bob Kerrey Quietly Resigns from Fulbright University Vietnam Leadership Position
John Davis
Beyond Hope
Uri Avnery
The Visitation: Trump in Israel
Ralph Nader
The Left/Right Challenge to the Failed “War on Drugs”
Traci Yoder
Free Speech on Campus: a Critical Analysis
Dave Lindorff
Beware the Supporter Scorned: Upstate New York Trump Voters Hit Hard in President’s Proposed 2018 Budget
Daniel Read
“Sickening Cowardice”: Now More Than Ever, Britain’s Theresa May Must be Held to Account on the Plight of Yemen’s Children
Ana Portnoy
Before the Gates: Puerto Rico’s First Bankruptcy Trial
M. Reza Behnam
Rethinking Iran’s Terrorism Designation
Brian Cloughley
Ukraine and the NATO Military Alliance
Josh Hoxie
Pain as a Policy Choice
David Macaray
Stephen Hawking Needs to Keep His Mouth Shut
Ramzy Baroud
Fear as an Obstacle to Peace: Why Are Israelis So Afraid?
Kathleen Wallace
The Bilious Incongruity of Trump’s Toilet
Seth Sandronsky
Temping Now
Alan Barber – Dean Baker
Blue Collar Blues: Manufacturing Falls in Indiana, Ohio and Pennsylvania in April
Jill Richardson
Saving America’s Great Places
Richard Lawless
Are Credit Rating Agencies America’s Secret Fifth Column?
Louis Proyect
Venezuela Reconsidered
Murray Dobbin
The NDP’s Singh and Ashton: Flash Versus Vision
Ron Leighton
Endarkenment: Postmodernism, Identity Politics, and the Attack on Free Speech
Anthony Papa
Drug War Victim: Oklahoma’s Larry Yarbrough to be Freed after 23 Years in Prison
Rev. John Dear
A Call to Mobilize the Nation Over the Next 18 Months
Yves Engler
Why Anti-Zionism and Anti-Jewish Prejudice Have to Do With Each Other
Ish Mishra
Political Underworld and Adventure Journalism
Binoy Kampmark
Roger Moore in Bondage
FacebookTwitterGoogle+RedditEmail