Calvert Cliffs

Resource planning is grinding to a halt. From EPA regulations to irrational markets, today’s policy missteps threaten tomorrow’s reliability.

In the aftermath of the March 11 earthquake and tsunami, questions are arising about the safety and survivability of reactors located in geologically active areas. Major changes might be required, and as a result the U.S. nuclear industry might face an existential challenge on the order of the Three Mile Island accident.

Could a TVA-style Fed Corp model be the answer to America’s ongoing nuclear waste dilemma? A bill sponsored by the new Senate Energy Committee chairman proposes to create just such a corporation. Constellation’s Henry (Brew) Barron discusses the proposal — and its prospects for enactment in the current political environment.

When Électricité de France stepped in to buy Constellation Energy’s nuclear assets and help the company avoid bankruptcy, the Maryland Public Service Commission conditioned the sale on a set of ring-fencing provisions. The industry has been using such structures to protect ratepayers in complex and high-risk M&A transactions since the 1990s. The protection isn’t foolproof, however—and it can bring problematic regulatory trade-offs.

Federal loan guarantees have been unleashed to support new nuclear plant construction. Will this be the watershed event that finally gets nuclear moving forward in the United States?

New nuke plants will take at least eight years to complete, while the coal that powers new IGCC plants is no longer cheap. Regulatory and market obstacles confront both technologies, just as they emerge from the starting gate. Which type of plant will win the future?

New Positions:

The Nuclear Regulatory Commission established the position of deputy executive director for Homeland Protection and Preparedness, naming William F. Kane to fill the role. Kane previously oversaw the offices of Nuclear Reactor Regulation, Enforcement, Investigations, and the Regions.