Nuclear is Expensive
In 1954, then Chairman of the Atomic Energy Commission Lewis Strauss promised that the nuclear industry would one day provide energy “too cheap to meter.”(5) More than 50 years and tens of billions of dollars in federal subsidies later, nuclear power remains prohibitively expensive. Even among the business and financial communities, it is widely accepted that nuclear power would not be economically viable without government support.(11) Despite this poor economic performance, the federal government has continued to pour money into the nuclear industry the Energy Policy Act of 2005 included more than $13 billion in production subsidies, tax breaks and other incentives for nuclear power.
The most important subsidy for the nuclear industry and the most expensive for U.S. taxpayers comes in the form of loan guarantees, which are promises that taxpayers will bail out the nuclear utilities by paying back their loans when the projects fail. According to the Congressional Budget Office, the failure rate for nuclear projects is “very high well above 50 percent.”(12) The nuclear industry is demanding $122 billion in federal loan guarantees for 21 reactors. If these guarantees were authorized, taxpayers would be on the hook for at least $61 billion.