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

 Nuclear reactor coolant pumps market to grow with new builds, replacements

Nuclear reactor coolant pumps market to grow with new builds, replacements

The global market for nuclear reactor coolant pumps is expected to grow in the coming future, an industry report said.

Calvert Cliffs nuclear power plant Maryland refueling outage offline Exelon maintenance

Calvert Cliffs nuclear Unit 2 taken offline for refueling

Unit 2 at the Calvert Cliffs nuclear power plant in Maryland was taken offline Monday for a scheduled refueling outage.

Follow Power Engineering on Twitter

Latest News

 GE gas engine achieves more than 50% efficiency

GE gas engine achieves more than 50% efficiency

GE (NYSE: GE) Power & Water’s Distributed Power business said the company achieved more t...
 Wärtsilä to deliver Smart Power Generation plant to Kansas municipal utility

Wärtsilä to deliver Smart Power Generation plant to Kansas municipal utility

Wärtsilä has been awarded a contract to supply a 56-MW Smart Power Generation power plant to ...
03/04 Henry Hub Average Natural Gas Spot Prices

03/04 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

MHPS to deliver supercritical-pressure coal-fired boilers to Tanda Power Plant

L&T-MHPS Boilers Private Ltd., a joint venture between Mitsubishi Hitachi Power Systems L...

SwRI receives $9.9Mn from DOE to improve solar plant efficiency

Southwest Research Institute (SwRI) has been awarded $4.9 million by the U.S. Department of E...
 Westinghouse says nuclear fuel performed flawlessly in Ukraine reactor

Westinghouse says nuclear fuel performed flawlessly in Ukraine reactor

Westinghouse Electric said its nuclear fuel “performed flawlessly” at a nuclear power plant i...

Public to weigh in on plan to close part of coal-fired plant

New Mexico regulators are set to take testimony on a plan by the state's largest electric pro...

Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended February 28, 2015.

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-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 | 2014 | 2015

Power Industry Wire News

ISO to Add Puget Sound Energy to the Energy Imbalance Market

ISO to Add Puget Sound Energy to the Energy Imbalance Market

Walter Energy Notified by NYSE of Non-Compliance With a Continued Listing Standard

Walter Energy Notified by NYSE of Non-Compliance With a Continued Listing Standard

More Than 50 U.S. Utilities to Attend 12th-Annual ARCOS Conference for Crew Callout and Crew Management

More Than 50 U.S. Utilities to Attend 12th-Annual ARCOS Conference for Crew Callout and...

Vivakor Acquires Land Lease in Asphalt Ridge Area in Vernal, Utah for Oil Extraction Technology Operation

Vivakor Acquires Land Lease in Asphalt Ridge Area in Vernal, Utah for Oil Extraction Te...

Envision Solar Announces First Sale of Solar Powered EV Chargers in the Caribbean

Envision Solar Announces First Sale of Solar Powered EV Chargers in the Caribbean

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 >>