APPA, Others Urge Congress to Back New Nuclear Plants

February 2, 2009

Public Power Weekly by Jeannine Anderson

APPA, the National Rural Electric Cooperative Association, the
Large Public Power Council and the Nuclear Energy Institute sent
letters to congressional leaders Jan. 22 urging them to back three proposals that would support the construction of new nuclear plants.
Those proposals should be included in the economic stimulus
legislation that Congress is working on, APPA and the others told the
House Ways and Means Committee and the Senate Finance Committee.

The electricity groups urged the committees to: (1) adapt the
existing nuclear production tax credit for projects being developed by
partnerships that include investor-owned companies, electric
cooperatives and public power utilities; (2) provide an investment tax
credit to companies that expand nuclear manufacturing capabilities;
and (3) establish a tax credit for companies that train workers in
nuclear-grade disciplines.

The North American Electric Reliability Corp., which oversees the
reliability of the U.S. power grid, projects electric capacity
shortfalls for some electricity consumers as early as 2010, the groups
said.
"These shortfalls are projected to spread to most consumers by 2017, even
with the addition of potential resources. To meet this demand, the
U.S. electric power industry is developing the first new nuclear projects in the
United States since the late 1970s," they said. "Nuclear energy is one
of the few bright spots in the U.S. economy-expanding rather than
contracting.
The new nuclear plants now being developed serve multiple national
imperatives: they will provide needed baseload (24-by-7) electricity; create tens of
thousands of new jobs during construction and operation; and reduce
the electric power industry's carbon emissions."

APPA and the other organizations also urged Congress to support
expansion of the Department of Energy's clean energy loan guarantee
program in the economic stimulus legislation.

"Although this program falls outside the jurisdiction of the tax
committees, it is essential to support the financing of new nuclear
power plants," they said. The loan guarantee volume currently
authorized for new nuclear power projects "might support three
projects, at best," they said.
"It is not sufficient to support the six to eight new nuclear power
projects that will be ready to start construction over the next
several years."

House leaders have said they want to get an economic recovery 
bill to President Obama's desk by Feb. 13.