The Energy Department has narrowed its list of the most likely recipients of $18.5 billion in government loan guarantees for building the first new nuclear power plants.
– By Stephen Heiser –
The department recently informed four companies planning new reactors in Maryland, Georgia, Texas and South Carolina that their applications have been elevated for closer scrutiny, department and industry officials said Friday.
Energy Department spokeswoman Stephanie Mueller said the applications were singled out for closer review because they are furthest along in obtaining a license from the Nuclear Regulatory Commission. She said the department has made no decision on who will get the loan guarantees "and has not eliminated any applications."
The proposed projects singled out for "due diligence" review, often the final phase of the review process, are: Constellation Energy for a reactor at its Calvert Cliffs nuclear plant near Lusby, Md.; NRG Energy for two new reactors at its South Texas Project near Bay City, Texas; Southern Company for two new reactors at its Vogtle power plant near Waynesboro, Ga.; and South Carolina Electric & Gas, for two new reactors at its V.C. Summer power plant near Columbia, S.C.
Last October, the department received 19 applications from 17 electric power companies seeking a total of $122 billion in loan guarantees to build new reactors, far more than the $18.5 billion Congress has provided in loan guarantee authority for nuclear power plants.
It's not clear how the department plans to divide the loan guarantees or how many projects will end up being approved.
With the cost of a new nuclear power plant now at more than $9 billion and credit markets reluctant to commit to such projects in the current economic climate, utilities have virtually ruled out construction of a new plant without government loan guarantees.
On Friday, John Rowe, chairman of Exelon Corp., which operates 17 nuclear reactors, told reporters after a speech at the National Press Club that he had no intention of proceeding with the construction of two new reactors near Victoria, Texas, without government loan guarantees.