Skip to main content

Price Anderson Act Explained

Price Anderson ActProviding a corrective to an Op-ed that ran in the Minneapolis-St. Paul Star Tribune, Marv Fertel, NEI's Executive VP and Chief Nuclear Officer had this to say,
The Price-Anderson Act was established by the federal government in 1957 and has evolved into one of the best third-party liability programs in the world, with a minimum of $10 billion worth of insurance coverage in the unlikely event of a nuclear power plant accident.

The program was subsidized by the federal government in its inception, but even then the government made money on the premiums from electric companies that owned nuclear power plants. Under this framework, the public has paid nothing due to nuclear power accidents, while insurance pools have paid about $200 million in claims and the industry has paid $21 million to the federal government in indemnity fees.

The nuclear power industry must provide $10 billion in insurance coverage to compensate the public in the event of an accident. So even if an individual company declares bankruptcy has a result of an accident at its plant, the rest of the industry will provide funding from the pool to compensate members of the public. If $10 billion is not sufficient, Congress can require the industry to contribute additional funds to the pool.

In the worst U.S. nuclear power plant accident at Three Mile Island, about $71 million in claims and litigation costs was covered by the Price-Anderson Act.

Comments

Popular posts from this blog

How Nanomaterials Can Make Nuclear Reactors Safer and More Efficient

The following is a guest post from Matt Wald, senior communications advisor at NEI. Follow Matt on Twitter at @MattLWald.

From the batteries in our cell phones to the clothes on our backs, "nanomaterials" that are designed molecule by molecule are working their way into our economy and our lives. Now there’s some promising work on new materials for nuclear reactors.

Reactors are a tough environment. The sub atomic particles that sustain the chain reaction, neutrons, are great for splitting additional uranium atoms, but not all of them hit a uranium atom; some of them end up in various metal components of the reactor. The metal is usually a crystalline structure, meaning it is as orderly as a ladder or a sheet of graph paper, but the neutrons rearrange the atoms, leaving some infinitesimal voids in the structure and some areas of extra density. The components literally grow, getting longer and thicker. The phenomenon is well understood and designers compensate for it with a …

Why America Needs the MOX Facility

If Isaiah had been a nuclear engineer, he’d have loved this project. And the Trump Administration should too, despite the proposal to eliminate it in the FY 2018 budget.

The project is a massive factory near Aiken, S.C., that will take plutonium from the government’s arsenal and turn it into fuel for civilian power reactors. The plutonium, made by the United States during the Cold War in a competition with the Soviet Union, is now surplus, and the United States and the Russian Federation jointly agreed to reduce their stocks, to reduce the chance of its use in weapons. Over two thousand construction workers, technicians and engineers are at work to enable the transformation.

Carrying Isaiah’s “swords into plowshares” vision into the nuclear field did not originate with plutonium. In 1993, the United States and Russia began a 20-year program to take weapons-grade uranium out of the Russian inventory, dilute it to levels appropriate for civilian power plants, and then use it to produce…

Nuclear Is a Long-Term Investment for Ohio that Will Pay Big

With 50 different state legislative calendars, more than half of them adjourn by June, and those still in session throughout the year usually take a recess in the summer. So springtime is prime time for state legislative activity. In the next few weeks, legislatures are hosting hearings and calling for votes on bills that have been battered back and forth in the capital halls.

On Tuesday, The Ohio Public Utilities Committee hosted its third round of hearings on the Zero Emissions Nuclear Resources Program, House Bill 178, and NEI’s Maria Korsnick testified before a jam-packed room of legislators.


Washingtonians parachuting into state debates can be a tricky platform, but in this case, Maria’s remarks provided national perspective that put the Ohio conundrum into context. At the heart of this debate is the impact nuclear plants have on local jobs and the local economy, and that nuclear assets should be viewed as “long-term investments” for the state. Of course, clean air and electrons …