I2M Associates's Web Portal for Geoscientists
About this Portal 
Index / Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, and Industry

7/17/2017 by mdc
Batkins, et al., report that nuclear power is among the safest, but also the most regulated forms of energy in the world. As measured by harmful emissions, workplace injuries or fatalities on the job, nuclear has a sterling safety record, but the regulation imposed on the industry generates incredible costs and deters new reactor construction from producing zero-carbon energy.

Based on a review of publicly available 10-Ks, the American Action Forum (AAF) found $15.7 billion in regulatory liabilities for the industry, or $219 million per plant. These were largely related to long-term costs associated with disposing of waste. Annual ongoing regulatory costs range from $7.4 million to $15.5 million per plant, mostly related to paperwork compliance. Combined with regulatory capital expenditures and fees paid to the federal government, the average nuclear plant must bear a regulatory burden of $60 million annually.

These figures have profound implications for the industry bottom-line. Based on a review of per-plant profitability, there are at least six plants nationwide where regulatory burdens exceed profit margins. In total, AAF found 15 plants where regulatory burdens would exceed the nominal corporate tax rate in the nation. There is little doubt regulatory costs are one factor contributing to the retirement of nuclear facilities across the nation.

Finally, despite new nuclear reactor designs being safer, reactor design approval times still take several years, and these delays cost money and discourage new plants from ever being built. Regulators appear to regulate based on the risk of disaster from the 1970s, not 2017.

AAF recommends a focus on one of the most significant regulatory liabilities of nuclear power plants ... nuclear waste management. Mitigating the pecuniary and risk exposure of waste management, along with aligning regulation with the (low) risk generated by nuclear facilities will help to make the power source competitive once again.

Resource thumbnail
Open Resource  |  2017/07/17  |  26 Report Broken   Tell Friend

About this Portal