Legislation aimed at encouraging the expansion of nuclear power in Iowa is “a bad idea that gets worse by the minute,” according to a new report by Mark Cooper, Senior Fellow for Economic analysis at the Vermont Law School’s Institute for Energy and the Environment. Iowa Physicians for Social Responsibility commissioned the report, and Cooper summarized its conclusions at a Des Moines press conference today. He analyzed the nuclear industry as a whole and lessons learned from states that have adopted legislation similar to Iowa’s House File 561 and Senate File 390.
Cooper’s report focuses on the immense costs that this legislation would impose on customers of MidAmerican Energy, even if no new nuclear facility is ever built. The average MidAmerican customer may see utility bills go up $50 per month before any nuclear reactor comes online. MidAmerican President Bill Fehrman told Iowa lawmakers yesterday that nuclear power is less expensive than pursuing other methods of generating more electricity, such as solar power and natural gas. Perhaps he was unaware of recent comments by Exelon CEO John Rowe, who runs the largest nuclear plant operator in the U.S. Rowe is convinced that
“At the present time in the United States, new nuclear power reactors are not economical anyway with low load growth and very cheap natural gas. Natural gas generation is now the economic way of choice for low-carbon electricity and that will be true for at least a decade,” he said.
Cooper’s report demonstrates that nuclear power is not competitive with any other major method of producing electricity in terms of cost or efficiency. Massive up-front costs are one reason why nuclear projects in other parts of the U.S. have gone nowhere despite federal loan guarantees (see also here). Building nuclear power plants will only become more expensive in light of the ongoing disaster at Japan’s Fukushima facility.
Nuclear power projects also create relatively “few jobs per dollar invested,” “drain resources from household budgets,” “raise the cost of doing business” and primarily benefit foreign equipment vendors. Because the licensing and construction process for nuclear power plants is so slow, Cooper writes, “choosing nuclear reactors over efficiency and renewables not only produces many fewer local jobs in the aggregate, but takes much longer to get those jobs.”
For decades, activists opposed to nuclear power have focused on health and security concerns, such as the lack of appropriate long-term storage for nuclear waste, or the potential for an accident or terrorist attack to release large amounts of radiation. Cooper’s report shows that even if one sets aside all health and environmental concerns, nuclear power is a raw deal for consumers. MidAmerican ratepayers are unlikely ever to break even on this deal. The American Association for Retired Persons has been trying to get legislators to view the proposed bills from this perspective as well.
Governor Terry Branstad’s mind appears to be made up: he supports anything MidAmerican wants to help it build a nuclear power plant, because “we really can’t do it all with renewable.” I reject Branstad’s premise that efficiency measures and renewable energy projects can’t meet Iowa’s baseload electricity needs, but even if that were true, new natural gas-powered plants would be a far better use of resources than nuclear.
House File 561 has already cleared the Iowa House Commerce Committee and probably will pass the House easily. Senate File 390 is still being considered in subcommittee, and nine Democratic senators have urged their colleagues to shelve the proposal. (Cooper notes that other states that were considering similar legislation have put it on hold following the crisis in Japan.) Senate Commerce Committee Chair Swati Dandekar has scheduled a subcommittee meeting on this bill Monday, March 28 from 11:30 am to 1:00 pm in room 116 at the state capitol. Opponents of this bill should contact their representatives and senators, and members of the Senate Commerce Committee in particular.
After the jump I’ve posted today’s release from Iowa Physicians for Social Responsibility and several longer excerpts from Cooper’s report on advanced cost recovery for nuclear reactors.
UPDATE: MidAmerican disputes Cooper’s estimates on how much the average ratepayer’s utility bill would go up. I don’t put much stock in estimates from a company whose president claims nuclear power is less expensive than natural gas.
SECOND UPDATE: Paul Deaton of Iowa Physicians for Social Responsibility discusses MidAmerican’s shifting cost estimates and argues, “no single document lays out all of the impacts of HF 561 and SF 390 to consumers and that’s the point. The Iowa legislature needs to slow down, get the facts and then make a decision about nuclear power.”
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