Covering the cost of old nuclear plants | Editorial | progress-index.com - The Progress... - 0 views
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Energy Net on 06 Jul 09Meltdown is not the word you want to hear in relation to a nuclear power plant. Even the global financial meltdown has potentially dire consequences for public safety over the long term. Even as the industry and Washington quite rightly have moved toward a new generation of nuclear plant construction, an analysis by the Associated Press raises troubling questions about the current generation. Nuclear plant operators are required to set aside enough money, over the course of a plant's life, to pay for its decommissioning and demolition. That process, for most plants, costs hundreds of millions of dollars. The AP analysis found that the meltdown in the financial markets over the last two years has drained much of the money held by plant operators to safely decommission and demolish their plants. According to the analysis, operators of about half of the nuclear plants nationwide are not saving enough money for inevitable demolition projects. At the same time that the estimated costs of demolition has risen by $4.6 billion, the value of investments held by plant operators for that purpose has fallen by $4.4 billion, the AP reported. And, it found, the savings rates for demolition has declined for 80 percent of the nation's reactors. So far plant operators have reacted to the losses in two ways. In 19 cases they have won permission to delay decommissioning for as long as 60 years in order to allow their investments to recover. In more than 50 others, they have won permission to extend plant operations beyond their original permit expiration dates.