With soaring costs, nuclear on the ropes in state legislatures

The rising cost of construction of nuclear power plants, combined with the allure of cheap gas, has lawmakers in Georgia and Florida asking why ratepayers should be on the hook for expensive, over-budget, past-due projects, the Associated Press reports.

In Georgia, a coalition of tea party conservatives and consumer advocates have banded together in support of a proposal to cut into Southern Co. (NYSE: SO) profits to penalize the regulated monopoly for going over budget. “Conservatives do not believe in incentivizing failure,” a tea party activist recently told lawmakers, according to the AP. Currently Georgia Power, a subsidiary of Southern Co., earns about 11 percent in profits when investing its own money in power projects, reports the AP.

Reacting to the recent closure of the Crystal River nuclear plant, Florida lawmakers are considering proposals to prevent utilities from collecting consumer fees before electricity is ever produced on a project. “A lot of people are paying for something that they’ll never see any return on their money,” said a Republican legislator behind one proposal, according to the AP. A similar Democratic proposal is on the table as well.

Plant owner Duke Energy (NYSE: DUK) stands to earn up to $50 million in profits on the $500 million collected from customers to pay for upgrades that ended up causing still greater damage to the facility and leading to its closure. Changes in the fee collection law could affect construction of the proposed Levy County nuclear plant, for which ratepayers have already paid $1.5 billion. Under current law, Duke could earn up to $150 million in profit even if the project is never completed.

Subscribe to Nuclear Power International magazine

Sponsored by FLSmidth

Related Articles

Day & Zimmermann land maintenance contract at Palo Verde Nuclear Generation Station

Day & Zimmermann (D&Z)'s Engineering, Construction & Maintenance group has been awarded a three-year contract by Arizona Public Service Co. (APS) to provide maintenance services at the 3,739-MW Palo Verde Nuclear Generation Station near Phoenix. 

Ameren Missouri's Callaway Energy Center returns to service

Ameren Missouri's 1,190-MW Callaway Energy Center has returned to service after a planned fueling and maintenance outage. 

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Bayport International Holdings, Inc. (BAYP) Announces Completion of the Brown Lease in McIntosh County, Oklahoma

Bayport International Holdings, Inc. (BAYP) Announces Completion of the Brown Lease in ...

National Hockey League Names Constellation Its Official Energy Provider, Will Offset Carbon Footprint Across All 30 Team Markets

National Hockey League Names Constellation Its Official Energy Provider, Will Offset Ca...

BioCNG, LLC Announces Groundbreaking on BioCNG Vehicle Fuel System and Pipeline for Grand Junction, Colorado's Persigo WWTP

BioCNG, LLC Announces Groundbreaking on BioCNG Vehicle Fuel System and Pipeline for Gra...

Synergy Resources Corporation Provides an Operations Update, Estimating 100% Year-Over-Year Production Growth, and a Revised Fiscal 2015 Capital Forecast

Synergy Resources Corporation Provides an Operations Update, Estimating 100% Year-Over-...

XZERES Sees Accelerating Sales Growth, Driven by Further Adoption in Key Markets

XZERES Sees Accelerating Sales Growth, Driven by Further Adoption in Key Markets

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>