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If You Like Federal Bailouts
Sep. 12th, 2008 08:51 amFrom the "I Told You So!" or "If You Buy Them, We Will Come" category. It's one hell of a long way from former Atomic Energy Commission head Lewis Strauss' ridiculous promotional assertion in 1954 that nukes would be "Too cheap to meter".
McCain Nuclear Revival May Cost $315 Billion - Bloomberg - 11 Sep 08
"John McCain's plan to revive the U.S. nuclear power industry with 45 new reactors may cost $315 billion, with taxpayers bearing much of the financial risk."
"'Loan guarantees get reactors built, simply put,' said Kevin Book, senior vice president and energy specialist at the Friedman, Billings, Ramsey & Co. investment banking firm in Arlington, Virginia."
"Congress in December authorized $18.5 billion in guarantees that cover as much as 80 percent of nuclear plant construction costs -- enough to fund three typical reactors. Three power companies have already applied for the aid."
"Taxpayers are on the hook only if borrowers default. A 2003 Congressional Budget Office report said the default rate on nuclear construction debts might be as high as 50 percent, in part because of the projects' high costs."
"Constellation's Wallace says his plans for a new reactor in Maryland hinge on federal guarantees. 'Commercial banks, not having experienced new nuclear plant licensing in 30 years -- and with all the uncertainties inherent in the process in the U.S. -- are just not willing' to provide financing without the supports, he said."
McCain Nuclear Revival May Cost $315 Billion - Bloomberg - 11 Sep 08
"John McCain's plan to revive the U.S. nuclear power industry with 45 new reactors may cost $315 billion, with taxpayers bearing much of the financial risk."
"'Loan guarantees get reactors built, simply put,' said Kevin Book, senior vice president and energy specialist at the Friedman, Billings, Ramsey & Co. investment banking firm in Arlington, Virginia."
"Congress in December authorized $18.5 billion in guarantees that cover as much as 80 percent of nuclear plant construction costs -- enough to fund three typical reactors. Three power companies have already applied for the aid."
"Taxpayers are on the hook only if borrowers default. A 2003 Congressional Budget Office report said the default rate on nuclear construction debts might be as high as 50 percent, in part because of the projects' high costs."
"Constellation's Wallace says his plans for a new reactor in Maryland hinge on federal guarantees. 'Commercial banks, not having experienced new nuclear plant licensing in 30 years -- and with all the uncertainties inherent in the process in the U.S. -- are just not willing' to provide financing without the supports, he said."
