Energy Secretary Steven Chu Seeks $13 Billion For Nuclear-Plant Loan Program
– Edited by Mark McFadden –
According to a Dow Jones report, an additional $13 billion in loan-guarantee authority is needed if the U.S. Department of Energy is to award three more nuclear-power projects, Energy Secretary Steven Chu said Speaking before a Senate appropriations subcommittee. Typically, about $100 million in government money can leverage around $1 billion in loan guarantees.
The DOE has awarded an $8 billion loan guarantee for one plant and has around $12 billion in remaining authority, enough to approve one more application, but not enough for the two that are hoping for the next monetary loan award.
Chu added that an additional $4 billion in authority would help the DOE approve both of those applications, and a further $9 billion in authority would allow it to help finance a third application that could be wrapped up prior to the end of the 2011 budget cycle.
Sen. Byron Dorgan, (D., N.D.), chairman of the energy appropriations subcommittee, claimed that added loan-guarantee authority could be added on to other supplemental budget bills in coming weeks and months. If approved by the U.S. Congress, that could permit two other nuclear-power projects to move ahead.
Senator Mary Landrieu, (D., La.), a member of the energy appropriations subcommittee, added that her panel should seek to budget the additional loan-guarantee authority.
In February, President Barack Obama announced an $8 billion loan guarantee for Southern Co. to build a new nuclear-power plant in Georgia.
NRG Energy has applied for a loan for two nuclear reactors in Texas and Constellation Energy Group wants to build a plant in Maryland. Finally, Scana Corp is also a finalist for guarantees for a South Carolina project.
In the White House's 2011 budget, the DOE asked for a total of $54 billion in loan-guarantee authority to move ahead several other nuclear-power projects.