Jack Spencer's Power Play

Jack Spencer from the Heritage Foundation is at it again:

Electricity demand is projected to increase 40 percent by 2030, according to government estimates. Meanwhile, overzealous regulators make it difficult to expand energy capacity.

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Proponents make it sound so simple. Just buy a new dishwasher, build a couple of windmills, put some solar cells on the roof and — voila — energy problem solved. Not really. Maryland would have to reduce its electricity consumption by about a fifth of today's use — or the equivalent of a half a million households — to meet Mr. O'Malley's objective. Since Maryland produces only 1.3 percent of its electricity from renewables, increasing that to 20 percent in the next 14 years would be daunting, to say the least.

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The legitimacy of these draconian efforts is rooted in the notion there is an energy shortage. Conservation, after all, makes sense when there is a shortage of something.

But energy is not in short supply. There are fossil fuels, and lots of them, right here in America. Yet America is one of the few nations that chooses to leaves much of its own reserves untapped.

Yes, wind and solar power are options. But the technology hasn't advanced yet to the point where these are affordable enough or reliable enough to satisfy our growing energy demands.

Then there's nuclear power. It is emissions-free, affordable, proven and safe. It already provides the United States with 20 percent of its electricity. It can be used and recycled again and again, making it essentially limitless.

Nuclear power has the added benefit of solving many of the problems cited to justify faulty conservation plans and centrally planned energy mandates. It's abundant, environmentally friendly, free of carbon dioxide (CO2) and domestically produced. Yet officials continue to ignore its advantages.

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U.S. interests are best served by an energy mix that includes fossil fuels, nuclear power and renewable energies. If it does turn out that CO2 is a problem — a conclusion for which there is no consensus, despite what we're told — then the role of nuclear energy will be even more critical.

You can read more here.

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...

NEI Nuclear Notes

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