Thursday, April 23, 2009
Nuclear Plant Cancelled in Missouri
AmerenUE announced they will no longer pursue building a new nuclear power plant in Missouri, due to inability to obtain financing without legislative changes that would allow the utility to charge existing customers for construction work in progress.
" "A large plant would be difficult to finance under the best of conditions, but in today's credit constrained markets, without supportive state energy policies, we believe getting financial backing for these projects is impossible. Pursuing the legislation in its current form will not give us the financial and regulatory certainty we need to complete this project.”
A repeal of the state’s 30-year-old Construction Work in Progress [law] was the most controversial legislation under debate this session, with proponents and detractors taking out television ads to influence public debate.
The proposed nuclear power plant in Callaway County was estimated to cost between $7 billion and $14 billion and create 3,000 jobs."
This is very good news for consumers, as nuclear power is not only unsafe, ultra-hazardous, and produces toxic waste products that endure for thousands of years, it produces power that must be sold for 30 to 40 cents per kwh in order to pay for the plant. A financing company must be willing to invest approximately $10 billion for a 1,000 MW plant, and $20 billion for a 2,000 MW plant, after including construction costs and interest on construction loans. The plants require 6 to 8 years to construct, even if nothing goes wrong. And, something almost always goes wrong. In the final years of a long project, any delay is very costly, with interest costs of $1 billion per year at that point.
It is good news, indeed, to see that some sanity has returned in America. With the very low costs of natural gas, due to a glut on the market that is not likely ever to disappear, it is a wonder that any utility is even considering building a nuke. Florida and South Carolina should take notice.
Roger E. Sowell, Esq.