courtney hanson nuclear economics-20120630
DESCRIPTION
Nuclear Economics presentation by Courney Hanson of Georgia Women's Action for New Directions (Georgia WAND) at the KNOW NUKES Y'ALL SUMMIT on June 30, 2012.TRANSCRIPT
Nuclear EconomicsNuclear EconomicsBoondoggles 101
Georgia Women’s Action for New Directions
Energy Policy Act (2005)Energy Policy Act (2005)-authorized cost-overrun support of up to $2 billion total for up to six new reactors;
-authorized production tax credit of up to $125 million total a year, estimated at 1.8 US¢/kWh during the first eight years of operation for the first 6,000 MW of capacity—approx. 5 reactors-- consistent with renewables;
-authorized loan guarantees of up to 80% of project cost to be repaid within 30 years or 90% of the project's life.
-extended the Price-Anderson Act through 2025;
The Cost of DisasterThe Cost of DisasterPrice Anderson Act: No fault insurance system for non-military reactors. Power companies pay up to $12.6 billion
Tepco’s Costs: “Impossible to bear”
Germany estimates a Fukushima scale accident would cost the country $11 trillion
Cost of ReactorsCost of Reactors
-Mayo Shattuck (Constellation Energy), March 2009: Calvert Cliffs-3 will be “about $10 billion” not counting financing and other costs
-Turkey Point (FP&L), September 2009: $8,200/kw—about $11 billion per reactor
-Bend (PPL, Pennsylvania), 2010: $13-15 billion for one 1600 MW EPR reactor ($8-9,000/kw)
-Levy County (Progress Energy), May 2012: $24 billion for two reactors (about $10,000/kw)
Nuclear EconomicsNuclear Economics
DOE: Average cost overrun in first round of reactors: 207%
Standard & Poor’s, Moody’s and Fitch’s rating services all essentially have said “no” to new nuclear. No U.S. bank will loan for new reactors without CWIP or loan guarantees.
CWIPCWIPConstruction Work In Progress, also known as Early Cost Recovery
Federal Loan GuaranteesFederal Loan Guarantees
Taxpayer loan “guarantees:” in fact, taxpayer loans
2007 battle over loan guarantees2007 battle over loan guarantees
Bush Administration wanted $50 Billion in new loan guarantees for new nuclear reactors
Grassroots campaign in opposition: 125,000+ e-mails in opposition, & thousands of phone calls
Musicians came to DC, met with key Congress members and brought public attention to the issue
Speaker Pelosi said no, and added that renewables would get however much nuclear got
Compromise position: $18.5 billion for new reactors, $2 Billion for uranium enrichment, $18.5 Billion for renewables/efficiency, $8 billion for “clean” coal.
2009 battle over loan guarantees2009 battle over loan guarantees
Sen. Bennett (R-Utah) led effort in February 2009 to add $50 Billion to nuclear loan guarantee program
Another major grassroots effort, w/support from Reps. Waxman & Markey, & tacit support from new Obama administration
Defeated.
2010-2011 battles over loan 2010-2011 battles over loan guaranteesguarantees
The idea of adding more money—from $9 Billion to $54 Billion—for new nuclear came up about a dozen times from Obama administration & at various levels of Congress during 2010-2011.
More than 200,000 grassroots e-mails, thousands and thousands of phone calls, and a new skepticism about federal spending generally…
Defeated. Defeated. Defeated. Defeated…
Meanwhile, DOE was trying to Meanwhile, DOE was trying to give away the money it had….give away the money it had….
-February 2010 President Obama personally announced conditional approval of $8.3 Billion for Vogtle reactors in Georgia.
-$2 billion granted for Areva uranium enrichment plant in Idaho
-October 2010. Unknown amount, but believed to be about $10 billion, offered to UniStar Nuclear for Calvert Cliffs-3 in Maryland.
……but not very successfullybut not very successfully-Areva enrichment plant is on indefinite hiatus because of financial issues at Areva, lack of future demand for uranium
-Vogtle received license, February 2012, but apparently “conditional” meant no conditions were actually worked out. DOE now trying to work out conditions with Southern Company
A look at Plant VogtleA look at Plant Vogtle
First two reactors: -went over budget by 1200%
-Led to largest rate hike in Georgia history at the time
New proposed reactors:-loan $$ not dispersed-just .5 - 1.5 % credit subsidy fee-$900 million projected overage-new construction flaws = more cost overages-CWIP fee 3x higher than
proposed
The most important battle The most important battle right right nownow: stopping the Vogtle loans: stopping the Vogtle loans
- DOE has not come to terms on loan agreement (which would come directly from taxpayers through Federal Financing Bank).
-SACE lawsuit assures some transparency/public statement of credit subsidy fee, so DOE can’t lowball. Uproar over Solyndra loan also puts pressure on DOE/OMB.
-Southern already submitting 32 license amendments—they weren’t ready for license.
-Coalition lawsuit against licensing assures it will stay controversial.
-9,000+ e-mails through NIRS alone; others doing too, but we need much more.
New battle? Nulcear tax creditsNew battle? Nulcear tax credits
-Tax credits for new nuclear have not been challenged at all
-Parity with renewables is not quite true—renewable tax credits have to be re-authorized constantly; nuclear tax credits are permanent
-Renewables offer benefit to society; nuclear offers misery to society
-We should begin now to lay groundwork for repealing nuclear tax credits.
The public is with us!The public is with us!March 2012 ORC International poll, for Civil Society Institute:
80% say “taxpayers and ratepayers should not "finance the construction of new nuclear power reactors in the United States through tens of billions of dollars in proposed new federal loan guarantees."
The public is with us….The public is with us….
76% would support "a shift of federal loan-guarantee support for energy away from nuclear reactors and towards clean, renewable energy, such as wind and solar."
80%--including 78% of Republicans, 83% of Independents, and 82% of Democrats--oppose the use by utilities in some states of advance billing (known as "Construction Work in Progress“) to pay for the construction of new nuclear and other power plants.
The public is still with us….The public is still with us….
78% favor a new Congressional review of the Price-Anderson Act and say that nuclear companies should be liable for damages from a nuclear accident.
51% support a moratorium on new reactor construction.
Act Now!Act Now!
-Educate
-Join -Stop Plant Vogtle .com-Georgia WAND .org
-Learn
-Boycottwww.georgiapowerripoff.wordpress.com
