Nuclear “Renaissance” Meets Economic Reality, But Who Gets the Bill?

Crystal River Nuclear Generating Plant, Unit 3, 80 miles north of Tampa, FL. (photo: U.S. NRC)

Crystal River is back in the news. Regular readers will recall when last we visited Progress Energy Florida’s (PEF) troubled nuclear reactor it was, shall we say, hooked on crack:

The Crystal River story is long and sordid. The containment building cracked first during its construction in 1976. That crack was in the dome, and was linked to a lack of steel reinforcement. Most nuclear plants use four layers of steel reinforcement; Crystal River used only one. The walls were built as shoddily as the dome.

The latest problems started when Crystal River needed to replace the steam generator inside the containment building. Rather than use an engineering firm like Bechtel or SGT–the companies that had done the previous 34 such replacements in the US–Progress decided it would save a few bucks and do the job itself.

Over the objections of on-site workers, Progress used a different method than the industry standard to cut into the containment building. . . and that’s when this new cracking began. It appears that every attempt since to repair the cracks has only led to new “delamination” (as the industry calls it).

Sara Barczak of CleanEnergy Footprints provides more detail on the last couple of years:

The Crystal River reactor has been plagued with problems ever since PEF self-managed a steam generation replacement project in September 2009. The replacement project was intended to last 3 months, until PEF informed the Commission that it had cracked the containment structure during the detensioning phase of the project. PEF subsequently announced that the CR3 reactor would be repaired and back in service by the 3rd quarter of 2010…then by the 4th quarter of 2010…and then by the first quarter of 2011. On March 15, 2011 PEF informed the Commission that it had cracked the reactor again during the retensioning process and subsequently told the Commission that it estimated repair costs of $1.3 billion and a return to service in 2014. Shortly thereafter, the Humpty Dumpty Crystal River reactor suffered yet another crack on July 26, 2011.

That July crack was later revealed to be 12-feet long and 4-feet wide–and here, at least when it came to notifying the Nuclear Regulatory Commission, “later” means much later. . . like four months later.

The issue, of course–as anyone with a lifetime crack habit will tell you–is that this all gets very expensive. Not only is there the cost of the repairs. . . and the repairs to the repairs. . . and the repairs to the repairs to the repairs. . . there is the cost of replacing the energy that was supposed to be supplied to PEF customers by the crippled reactor.

And then there is the cost of the new reactors. . . .

Wait, what?

Yes, based on the amazing success they have had managing Crystal River–and something called a “determination of need,” which was granted in 2008–Progress Energy holds out hope of someday building two of those trendy new AP1000 nuclear reactors at another Florida site, this one in Levy County.

And who is expected to pick up the tab? Who is on the hook, not just for repairs and replacement energy at Crystal River, but for PEF keeping its options open at Levy? Well, not surprisingly in “privatize profits, socialize risk” America, the plan was to stick Florida ratepayers with the bill (again Footprints provides the numbers):

Customer bills for instance, were expected to increase by $16/mo. in 2016; $26/mo. in 2017 and a whopping $49/mo. in 2020. Initially, Progress expected the proposed reactors to cost $4-6 billion each, coming online beginning in 2016. Just a few years later, the estimated costs have skyrocketed to over $22 billion and the online date, if the reactors ever even come online, has bumped back to 2021 and 2022. And the Office of Public Counsel believes that PEF may not intend to complete the reactors until 2027, if at all. The company has spent over $1 billion dollars on the Levy nuclear reactors and has yet to commit to build them. And the company is entitled to recover all its preconstruction and carrying costs from its customers before even a kilowatt of electricity is produced. In fact, even if the project is never completed PEF can recover all its construction costs from customers courtesy of the 2006 anti-consumer “early cost recovery” state law…essentially a nuclear tax scheme.

But now, as of this week, there is a new plan. . . stick Florida ratepayers with the bill:

The state Public Service Commission on Wednesday unanimously approved an agreement that will increase the power bills of Progress Energy Florida customers — who already pay among the highest rates in the state.

It is supposed to be a win for consumers.

The deal includes a $288 million “refund” of money customers were to pay to replace power from the crippled Crystal River nuclear plant, which has been offline since fall 2009 and might never return to service.

PSC staff concluded that customer rates still would increase. The average Progress customer’s bill on Jan. 1 is expected to increase $4.93 a month per 1,000 kilowatt hours of usage, from $123.19 to $128.12, subject to adjustments for fuel costs.

That’s a “win” for Floridians, it seems, because they are paying out something less for Progress Energy’s mistakes–at least in the near term. But even that caveat is subject to scrutiny:

While the agreement provides a replacement power cost refund over 3 years of $288 million to PEF customers (due to the CR3 outage) – it comes packaged with a base rate increase of $150 million and it precludes the parties from challenging up to $1.9 billion (yes, billion) fuel and replacement power costs from 2009 to 2016.

And that’s not all. Also in the agreement is a requirement that PEF start (yes, that is start) the latest repairs on Crystal River by the end of 2012; if they do not, Progress has to “refund” an additional $100 million to consumers. Missing, however, from the agreement is any new estimate (given the latest revelations, not to mention any post-Fukushima upgrades required) of the cost should PEF actually try to remedy all of Crystal River’s problems–and perhaps even more glaring, questions remain as to who will pay (and how much it will cost) should PEF decide to stop throwing good money after bad and decommission Crystal River reactor 3.

Also missing from the calculation is any determination of what PEF’s insurance will cover–Crystal River’s insurer stopped paying out in early 2011, and they have yet to decide if they will pay anything more. . . at all.

The agreement also fails to put an end to what is now becoming a regular part of the nuclear power finance scam–collecting public money for plants that will never be built. As the Southern Alliance for Clean Energy (SACE, which is affiliated with CleanEnergy Footprints) observed when it opted not to sign on to the Florida rate agreement:

PEF hasn’t committed to actually building the Levy Co. reactors. Having customers pay for the company just to maintain the “option” at a later date to build reactors is unfair to today’s customers – and runs counter to the Commission’s “intent to build” standard. The agreement allows the company to collect another $350 million from customers, presumably for pursuing their Nuclear Regulatory Commission license (without any prudency review) for reactors it hasn’t committed to build? In fact, the agreement contemplates that the company will cancel its engineering and procurement contracts as well, further demonstrating the unlikelihood of project completion.

If something sounds familiar here, it should. Southern Company has been using heaping helpings of Georgia ratepayer money to do all kinds of preliminary work on their Vogtle site, purportedly the future home of two new AP1000 reactors, just granted a combined construction and operating license by the NRC in January.

The big difference so far between Levy and Vogtle has been Southern’s ability to line up some financing for its Georgia construction–thanks to $8.33 billion in federal loan guarantees granted the project by the Obama administration almost two years in advance of the NRC approval.

PEF does not have this kind of guarantee, but that did not stop them from trading on the possibility:

Progress Energy Florida officials said Thursday that President Obama’s plan to offer federal loan guarantees to encourage investment in nuclear power plant construction will be a strong incentive to move forward with the company’s proposed Levy County plant.

The project, however, is facing delays of between 20 to 36 months due to economic and regulatory problems, making the plant’s future uncertain despite the company’s insistence the project isn’t cancelled.

“It (the loan guarantee program) will definitely play a role in that decision (whether to continue with the project). It is one of many, but a very important one,” said Progress Energy spokesman Mike Hughes.

That was in 2010, right after President Obama announced the new Department of Energy loan program–but two years later, PEF has not secured a federal guarantee, and so has not secured any financing. . . and thus has also not committed to ever building the Levy plant. But none of that has stopped Progress from collecting money from Florida consumers just to keep hope alive, as it were. And none of that has apparently stopped any of Florida’s public service commissioners from telling PEF that this practice is just jake with them.

Even with NRC approval and some federally guaranteed money, it is still not a sure bet that the Vogtle AP1000 reactors will ever come on line. PEF’s Levy project has no license and no loan guarantee.

The folks at Progress Energy are not stupid–at least not when it comes to short-term financial gain–they know how very slim their chances are of ever pushing even a single kilowatt out of Levy County, but they also know where the profit is in the nuclear power game. It is not, quite obviously, in the construction of nuclear power plants–rife as that process is with lengthy delays and massive cost overruns–and it is not, some might be surprised to learn, so much in electric generation, given that plants in the US are now suffering “unusual events” that force one or more of them offline pretty much every week. Unusual events cost money–in parts and labor, and in time lost to repairs and inspections–and, as has been demonstrated at Crystal River, there is the cost of replacement energy.

No, the real profits in the nuclear racket come from the ability to collect on services not rendered and a product not delivered, or at least not delivered regularly. Because the system backstops the financing of nuclear facilities while also allowing plant operators to pass both real and anticipated costs onto ratepayers, many American taxpayers are poised to pay twice for nuclear power plants that don’t produce power.

And it would be remiss to close without adding a few more points.

Much has been made of the failure of solar panel manufacturer Solyndra, which also received aid from the federal government in the form of loan guarantees. Solyndra ultimately got $527 million from the government; contrast that with what has been granted to Southern for Vogtle. Or, starker still, look at the entire alternative energy loan program, now projected to cost out at under $3 billion, and then look back to 2010, when Barack Obama pledged $54.5 billion to the DOE loan guarantee program designed to foster investment in nuclear power.

In addition, while the government will actually recoup most of the money lost on Solyndra when the factory and inventory are auctioned off, the “leftovers” from a failed nuclear plant–even the parts that are not contaminated with radioactivity–are much harder (if not impossible) to move.

The focus of this story has been on the costs–because the case of Progress Energy Florida is such a glaring example of how nuclear operators fleece America–but the fact that a company so focused on the bottom line, regardless of its effect on public safety, is still allowed to play with something as dangerous as a damaged nuclear power plant should not be overlooked. Alas, as was exposed last year, nuclear regulators and the nuclear industry seem to agree that safety should be addressed with an eye toward cost. So, while Crystal River is a scary mess, the reactor in question is actually offline right now. The same cannot be said, for example, about Ohio’s Davis-Besse plant, which has cracking problems of its own, but was allowed by the NRC to restart in January–over the vociferous objections of industry watchdogs, engineers, and Rep. Dennis Kucinich (D-OH).

And then there is Palisades, on the shores of Lake Michigan, where numerous events and releases of radioactivity in the last year caused the Nuclear Regulatory Commission to issue a downgrade of the plant’s safety rating–but the NRC did not order the plant to shut down. Palisades is owned by Entergy Nuclear, who was recently cited for “buying reactors cheap, then running them into the ground.” In addition to Palisades, Entergy owns nine other plants–Arkansas Nuclear One, Nebraska’s Cooper Nuclear Station, Fitzpatrick in upstate New York, Grand Gulf in Mississippi, Indian Point, just north of New York City, Pilgrim, outside of Boston, River Bend and Waterford, both in Louisiana, and Vermont Yankee.

The case of Vermont Yankee is especially upsetting. Yankee is a GE boiling water reactor, similar to the model that failed so catastrophically at Fukushima–but the NRC voted to extend its operating license just days after the Tohoku quake. The state of Vermont had a better idea, declaring that the nuclear plant should shut down by March 21, 2012. However, in January, federal district court judge J. Garvan Murtha ruled Entergy could ignore Vermont’s order and continue operating. The state is appealing the ruling, but in the meantime, Yankee continues to operate. . . and continues to leak tritium into the groundwater, and into the Connecticut River.

It is not clear who will be paying for any attempt to clean up the Vermont Yankee leak–though one can guess–nor is it clear what will happen to new nuclear waste produced after March 21, since the Vermont statehouse has forbidden any new waste storage on the site. Indeed, storing used nuclear fuel is a nationwide problem that poses real dangers in the near term, and will likely cost billions of public dollars in the long term.

And that’s the bottom line–the real bottom line–for the industry’s oft-ballyhooed “nuclear renaissance.” Plant operators and captured regulators can try to obscure the safety concerns with diversionary dustups and magical thinking, but economic realities, like facts, are stubborn. Without huge injections of public money, nuclear power simply cannot continue to function–and the public is in no mood for another multi-billion dollar government bailout.

Subsidize This: US Eyes Tariffs on Chinese Solar Panels, But What Gets Protected?

Inside SolarWorld's Oregon manufacturing plant. (photo: OregonDOT)

While trade is often a bone of contention between the United States and China, this week’s visit by Chinese Vice President Xi Jinping threw the spotlight on one subset of that battle that could have far-reaching effects well in excess of the raw dollar amounts at stake.

At issue is a complaint filed by a solar industry trade group, the Coalition for American Solar Manufacturing, or CASM, asking that the US government impose tariffs on Chinese solar panels. CASM wants the duties for what it claims are unfair subsidies by China that make Chinese solar products substantially cheaper than those offered by many US competitors.

Language in President Obama’s State of the Union, along with comments made during Xi’s visit, would seem to indicate that the federal government is set to weigh in on the side of US solar energy companies in this brewing trade war, and so make a stand for domestic green energy manufacturing and good-paying American jobs.

It seems like a political slam-dunk. The president, after all, campaigned in 2008 on the promise of a growing alternative energy sector, and protecting jobs from being off-shored appears to be the perfect play at a time when unemployment is still unacceptably high. But the reality is, to put it in diplomatic speak, more nuanced.

First, that solar trade group, the Coalition for American Solar Manufacturing, claims to represent seven solar manufacturers, but the only company publicly identified as a CASM member is SolarWorld. SolarWorld is actually not a US company, but a German one, though it does employ about 1,000 at its Hillsboro, Oregon factory.

And even that number is nuanced. SolarWorld is considered the largest producer of solar panels in the US, and so it is used as a sort of case study in this trade dispute. Several stories on the topic note that SolarWorld shuttered its Camarillo, California plant, and with it went 100 jobs. The implication is that Chinese pricing caused the California closure, but a quick step through the Google looking glass will reveal that SolarWorld moved all its manufacturing to Oregon after that state offered it millions of dollars in tax breaks.

There is nothing inherently wrong with what Oregon did (unless you are one of the newly unemployed in California), but it should be part of the discussion. Not all jobs lost are part of the international trade war; in a low-growth economy, state governments are increasingly generous with the private sector as they try to secure precious jobs.

And not all “American” solar manufacturers actually do their manufacturing in America. SunPower, a San Jose-based solar company that has said it is “neutral” in this trade row, manufactures most of its solar panels in the Philippines.

Measuring the US solar sector by manufacturing alone is also a faulty yardstick. A majority of domestic solar-sector jobs–52%–are actually in installation. . . and there’s the rub. . . well, a rub. . . potentially, a really big rub.

Oregon’s two Democratic Senators, Ron Wyden and Jeff Merkley, are obviously quick to jump in on the side of a company that provides their state with 1,000 jobs (and solar manufacturing across all companies might provide Oregonians with something like twice that number). US Representatives, like Democrats Jackie Speier, Barbara Lee and Pete Stark, who have solar startups in their California districts, have also called for the federal government to investigate Chinese trade practices.

The Department of Commerce is scheduled to rule on CASM’s complaint by March 5, but if it takes what looks like the politically smoother path and sides with SolarWorld and their invisible friends, the next step would be for the US to impose tariffs on Chinese-made solar components, thus halting the rapid downward trend in prices for solar panels, and quite possibly driving prices up again here in the United States.

And that could actually spell big problems for America’s solar sector. Though it is hard to find an “expert” without some vested interest in some side of this dispute, there seems to be consensus that the recent substantial drops in the price of solar equipment have spurred a vast expansion in the numbers of homes, schools, businesses and government buildings that have installed solar cells to meet some or all of their electric power needs. Those installations, as noted above, mean jobs, and they also mean energy savings–both immediate and sustainable–for both individuals and municipalities. And while there are tax breaks for retrofitting buildings with solar panels, those breaks are mostly available for private buildings (not public schools and municipal buildings, where alternative energy could make a quick and substantial impact), and the savings do not make up for the price difference between Chinese- and American-manufactured products. The tax breaks are also scheduled to expire in 2016.

And there’s a multiplier effect that makes the basic savings seem small in comparison. Every home, hospital or school using solar power is that much demand that is not being placed on the conventional electrical grid. Depending on the region, that means less demand for coal-, gas, or nuclear-powered generation. And that means less demand for disappearing resources and less need to build costly, new power plants. It could also mean lower costs to society in the form of fewer pollution- and radiation-related health problems.

Then there is the obvious metric: Carbon-based power generation is guaranteed to grow more expensive as time marches on; the same has proven true for nuclear power. Solar prices are on a steady downward path, and solar power, if allowed to grow in market share, will continue to grow cheaper and more competitive.

And competition is what this is all supposed to be about, right? CASM has accused China of unfair trade practices that make it impossible for American manufacturers to compete. Proponents of 19th and 20th Century power-generating technologies love to remind advocates of alternative energy that fossil and fissile fuels are just “more competitive.” All things being equal. . . the market will decide. . . if there is a level playing field. . . or so the argument goes.

Fair enough, let’s look at that playing field.

Right now, without trying to estimate any possible solar tariffs, the alternative energy sector does get some help. According to a study from the Environmental Law Institute, renewables received $29 billion in federal subsidies from 2002 to 2008. Remove ethanol form that number, and you are down to $12.2 billion.

But during that same period, fossil fuel production received $72.5 billion in subsidies. That number excludes general energy sector subsidies–and it also excludes nuclear. The amount that nuclear receives is harder to calculate in the aggregate–loan guarantees are just guarantees until there is a default, and the Price-Anderson indemnity act has a value, but quantifiable payouts only come with disasters–but it is believed that for the second half of the 20th Century, nuclear consumed 10 percent of all US subsidies to the energy sector, something well in excess of $100 billion since the industry’s start.

But the numbers for fossil fuel and nuclear power are ridiculously low-ball. Not included there, what the federal government has to spend to clean up a polluted river or an oil spill in the gulf; nor does it include what the US has and will have to spend on behalf of the nuclear industry to transport and store its dangerous radioactive waste for as far forward as anyone can imagine.

Still, a “level playing field” sounds inherently fair, so why should domestic solar manufacturing have to suffer for the sins of legacy energy production?

Indeed. Wouldn’t it be amazingly convenient for gas producers or nuclear power concerns if the downward move in solar panel prices were arrested by a US tariff?

Instead, what if the federal government leveled that playing field by increasing its subsidies to domestic solar production?

Do more subsidies somehow sound too extravagant in these times of supposedly tight budgets? OK, then maybe the gas industry should be made to pick up the tab for trucking in fresh water to communities that have had their natural water supplies poisoned by hydro-fracking. Maybe the oil industry would like to pay to register its offshore rigs in the United States when they are drilling in US waters. Or maybe the nuclear industry should be required to find their financing without federal loan guarantees.

That last point is of special interest here. Take, for example, the two Chinese companies said to be providing the most competition for US solar manufacturers. According to SolarWorld representatives, “Trina Solar received a $4.4 billion loan from the China Development Bank, and Jinko Solar got a $7.6 billion loan from the Bank of China.” As regular readers of this space probably recognize, both of those figures are eclipsed by the $8.3 billion loan guarantee given by the Obama administration to the Southern Company for two recently approved nuclear reactors in Georgia.

So, fair is fair, level that playing field, but level it all over. If the US wants to move to make its solar companies more competitive with Chinese manufacturers, then make other energy sectors have to compete on similar terms. Rather than protect entrenched, disappearing, dangerous and dirty sources with duties that will render the entire solar sector less competitive, grant solar and other promising renewable alternatives the same level of help the US has habitually handed to fossil and fissile fuels. Rather than constrain domestic job growth by making solar power more expensive, pave the way for more good jobs with greater subsidies for both solar manufacturers and consumers. Rather than blow current and future resources on fuels that will only grow more expensive, spend now to expand the contribution of energy that continues to improve its cost-to-kilowatt ratio. Rather than use taxpayer dollars to pay for more pollution, more global warming, more cleanups and more adverse health outcomes, invest in clean, green technologies that not only pay immediate dividends but also have the potential to place America at the forefront of the next economic revolution.

If the Commerce Department does move toward imposing tariffs on Chinese solar manufacturers, the Obama administration and others in the government–as well as parts of the solar industry here–will now doubt call it a move on behalf of American manufacturing and the American worker. But will it be a move on behalf of America? The government might very well need to get involved to further the growth of this renewable energy sector, but if they do, manufacturers, workers and consumers should all insist that the intervention is done in a way that is truly in the public interest.

NRC Vogtle Reactor Approval Should Blow Lid Off Nuclear Finance Scam

Work is well underway on the Vogtle Unit 4 turbine building. The bottom of the Unit 3 containment vessel can be seen in the background. (photo via the Southern Company)

The Nuclear Regulatory Commission’s Thursday vote to approve the combined construction and operating license application (COLA) for Southern Company’s Plant Vogtle cleared the way for adding two AP1000 nuclear reactors to the two existing units near Augusta, Georgia, but it should also shine a light on the elaborate shell game that masquerades as nuclear-powered electrical generation.

Coming almost exactly two years after the Obama administration granted the project $8.33 billion in federal loan guarantees, the NRC’s OK for the project did not signal a groundbreaking at Vogtle. Thanks to a redefinition of what constitutes construction, drafted under a former NRC commissioner who now works for the nuclear industry, Southern started building on the site long before the AP1000 reactor design was finally approved by the NRC last December. And foundations were poured into the Georgia earth before environmental impact surveys were even required to be filed. So, Thursday’s move did not actually start construction, but it did start the roulette wheel turning on a massive financial gamble where Southern Company is pretty much assured of winning, and US taxpayers and Georgia utility customers are guaranteed to lose.

How much those Americans who don’t happen to own a power company will lose is an issue of some question–a question that the Department of Energy and Southern Company is making very hard to answer.

As this month marks two years since the government agreed to the loan guarantees, it will mark almost as long a time since the Southern Alliance for Clean Energy (SACE) filed a Freedom of Information Act (FOIA) request for the details of the deal the DOE struck with Southern Co., and thus it also marks almost two years of stonewalling by the Obama administration and the energy consortium:

To date, DOE has produced heavily censored documents that have provided little or no information in an effort to frustrate any analysis that would be useful to taxpayers. Based on the limited information produced to date, it appears that the power companies had to put almost no “skin in the game,” only promising to pay a token credit subsidy fee of what could be as little as 0.5 or 1.5 percent of the total loan principal.

Perhaps the once-pledged-to-be-the-most-open-in-history-but-now-proving-to-be-just-as-secretive administration thinks it can hide behind the idea that it is only a guarantee, and, at that, a guarantee of a private business plan, but that would be doubly troubling.

The DOE has indeed tried to use the confidential business argument, but Mindy Goldstein, acting director, Turner Environmental Law Clinic at Emory University School of Law, who is representing SACE in its FOIA case, explains just how disturbing that argument is:

DOE claims that the loan guarantee terms and credit subsidy fee estimates are confidential and may only be viewed by Georgia Power and its utility partners. Let’s hope DOE is wrong. For such information to be withheld as confidential, it must have been obtained from the utilities themselves. If the power companies are literally writing their own guarantees and credit subsidy fee estimates, the Loan Guarantee Program is more flawed than anyone could have imagined.

Alas, given the long history of industry representatives “helping” the DOE and NRC draft their regulations, Goldstein’s legal conundrum isn’t hard to imagine as the actual state of affairs.

And neither the government nor the taxpayer should take comfort from the guarantee angle:

Private lenders have declined to finance new reactors because of the enormously high cost of new nuclear power and the substantial risk that any such investment will fail. In 2003, the Congressional Budget Office (CBO) estimated that the chance of a loan for new nuclear reactor construction resulting in default would be “very high – well over 50 percent.”

And for the folks at Vogtle, the risk is likely much higher. The two reactors now at the Georgia site took over 15 years to complete, came in 1,200 percent over budget, and resulted in an enormous rate hike for Georgia power consumers.

The fact that even with taxpayers already shouldering the risk ratepayers are also on the hook is the remarkable second slap in the face that comes with the nuclear power con:

[Southern’s subsidiary and largest utility, Georgia Power] customers already are paying down the [Vogtle] project’s financing costs through a fee that will increase to $8.74 a month by 2015. The fee will end once reactors start producing power in 2016 and 2017.

Well, the fee is supposed to end when the reactors start producing power, which is supposed to be in 2016 and 2017. But no nuclear project comes in on time or on budget–and as was just noted, history is not Vogtle’s friend here–and not only will ratepayers continue to cough up cash while construction drags on, it is certainly not unprecedented to see them continue to get fleeced for overruns after the plants are finished (just ask the good citizens of Florida).

These, of course, are just the costs incurred if everything goes more or less right. And these, of course, are just the costs of building the reactors–it has nothing to do with the fueling, the maintenance, the waste removal and clean up should anything get, you know, “unusual.” But since the taxpayers and ratepayers pretty much built the new reactors for them, those costs should come out of Southern Co/Georgia Power’s profits once they start charging for the actual power, right?

Uh. . . wrong. As George W. Bush was headed out the door, he made sure that the Department of Energy would be liable for all costs from any high-level radioactive waste generated at the new Vogtle units. And, of course, as is true for all facilities in the US, the Price-Anderson Act indemnifies the industry against claims arising nuclear accidents.

And the Nuclear Regulatory Commission’s approval–coming when it does–does nothing to make those accidents less likely. The NRC voted for Vogtle’s COLA over the objections of its chairman, Greg Jaczko, who thought safety rules that should come from the post-Fukushima recommendations should have been stipulated as essential to any new license. And the AP1000’s design, which Toshiba-Westinghouse likes to tout as safer than its close cousin, the pressurized water reactor, is suspected to be anything but.

Meanwhile, trouble at nuclear reactors worldwide continues apace. At Japan’s Fukushima Daiichi, unit two, which was said to have been brought to a “cold shutdown” in December, has experienced what is called a “re-criticality”–in other words, the temperature inside the ruptured containment vessel has begun to rise again, up more than 20 degrees Celsius since February 1. Officials from Japanese power company TEPCO have done a poor job of explaining why this might be happening or what it might mean for the future, but they do admit to the necessity of increasing the amount of water and boric acid pumped into the damaged reactor to counteract the warming. And, since there are holes and cracks in the reactor vessel, that means more radioactive waste water pouring out of the building and into the basements and surrounding plant grounds–more water on top of the 95,000 cubic meters already believed to be there, and on top of the 220,000 cubic meters that TEPCO has claimed they “processed” (and then dumped back into the environment).

And something else quite troubling has been observed in Japan–bird populations in Fukushima prefecture have taken a bigger dip than was expected from studies of similar species around Chernobyl after that nuclear disaster.

Speaking of the former Soviet Union, there was a fire last weekend at the Alikhanov Institute of Theoretical and Experimental Physics in southwestern Moscow. The building contains an atomic collider and is home to Russia’s very first heavy water reactor, built in the 1940s, and now decommissioned. Government officials said there was no danger of a radiation leak, but others, like Greenpeace Russia, beg to differ.

Back in the USA, the San Onofre plant remains completely shutdown after one reactor was found to be leaking tritium on January 31. Meanwhile, the other reactor, offline for refueling and repairs since January 9, was discovered to have alarmingly excessive wear inside its almost new turbine tubes.

And at Prairie Island, a nuclear facility in southeastern Minnesota, Xcel Energy has copped to two separate toxic chemical and radiological spills. One happened last November, but Xcel did not alert residents of the Prairie Island Indian Community–a whopping 600 yards from the power plant–till last week. The second happened just last Friday, February 3, but Xcel waited to give notice till Monday because the leak happened “‘after business hours’ just before the weekend.”

This is but a small sample–less than a week’s worth–of the nuclear world the NRC has now voted to expand. With each of these items should come a list of questions and a cavalcade of caution, but the NRC’s rulings on the AP1000 have defied the facts on the ground. Meanwhile, the entire federal government seems hell-bent on ignoring the fiscal realities, instead choosing to guarantee that money flow from the pockets of taxpayers into the coffers of nuclear energy corporations, whether or not those corporations ever provide a kilowatt of power to those taxpayers.

It is a sad state of affairs–that almost goes without saying–but perhaps sadder is the relative silence around such a multi-layered scandal.

Political activists were rightfully outraged when the Bush administration fought tooth-and-nail to keep the minutes of Vice President Dick Cheney’s energy task force secret. Now, aside from the good people at SACE, who else is working to uncloak an equally secretive–and equally offensive–Obama energy deal?

Some look to leverage a scandal off the failure of Solyndra–but the loan guarantees to Southern Company are over 15 times larger than those made to the small solar manufacturer, and frankly, even today, more risky. (Solyndra may have failed, but its assets can and will be sold, and its plant will be repurposed. Very little of that potential exists for a failed nuclear endeavor.)

Many who are outraged by the bailouts of the banks should see each of these nuclear facilities as a little version of the same “socialize the risk, privatize the profit” model. A nuclear facility might only lose billions of dollars instead of trillions, but as Everett Dirksen observed in a cheaper era, “A billion here, a billion there, pretty soon you’re talking real money.”

And, of course, nuclear failures aren’t just toxic to the economy, they are toxic to the environment, too.

And for those that think this week’s $25 billion settlement with the five big financial institutions guilty of mortgage fraud is somehow a grand amount–just remember that you can’t get two new nuclear power stations for that. . . and after typical delays and cost overruns, $25 billion likely won’t even get you one.

So, take a good look at what is happening in Georgia–even if the Obama administration and the Nuclear Regulatory Commission won’t. . . even if the Obama administration and the NRC don’t want you to. The nuclear industry, its acolytes, its lackeys, its supplicants and subordinates want to make the Vogtle reactors the first of many, the first of an irresistible nuclear renaissance, the start of a hard-charging, government-subsidized pushback–against activists and environmentalists, sure, but in reality, against the truth.

The truth, of course, is that without the lobbyists and the grease they spread, without the captured regulators and the purchased elected officials, the nuclear industry would be relegated to the past, right alongside its antiquated technology. The truth is that nuclear power is not clean, nor safe, nor too cheap to meter–it is dirty, dangerous, and a financial sinkhole of epic proportions. Banks and investment houses know it, ratepayers in Georgia and Florida know it, many of the residents of Japan know it, and even the government of Germany knows it–and now you know it, too. Now is the time to make sure your representatives in government–your president, your members of Congress, your state and local officials–know that you know it. Now is the time to stop this boondoggle and bailout, and then get to the business of safely uncoiling the nuclear serpent’s grip on our leaders and our imaginations. The AP1000 is not a first glimpse of the future, it is the last gasp of the past–and the sooner we stop subsidizing the old ideas, the sooner we can start investing in some new ones.

Nuclear Regulatory Commission Ignores Fukushima, Green-Lights First New Reactors in 34 Years

Current containment buildings and cooling towers at the Vogtle Electric Generating Plant in Burke County, GA. (photo: NRC)

The Nuclear Regulatory Commission has granted a construction and operating license to Southern Co. for two reactors to be added to its Plant Vogtle facility in Georgia. The OK is the first granted by the US regulator since 1978.

The NRC approved the license over the objections of its chairman, Gregory Jaczko, who wanted the license to stipulate that the units would meet new standards recommended by the agency’s Fukushima Near-Term Task Force (NTTF) report:

“I think this license needed something that ensured that the changes as a result of Fukushima would be implemented,” Jaczko said in an interview after the vote. “It’s like when you go to buy a house and the home inspector identifies things that should be fixed. You don’t go to closing before those things are fixed.”

The NTTF recommendations, geared toward improving safety and preventing another disaster like the one still evolving at Japan’s Fukushima Daiichi nuclear power facility, have still not become official government rules–some are projected to take up to five years to draft and implement–and so, for now, the new reactor construction will get to pretend the Tohoku quake and tsunami, and the resulting core meltdowns and widespread radioactive contamination, never happened.

The Vogtle reactors are of a new (or, let’s call it “new-ish”) design. The AP1000 reactor was just approved by the NRC in December, over the objections of numerous scientists and engineers, who saw claims of innovation insufficient to counter the dangers native to any Pressurized Water Reactor (PWR) design. Upon examination, many of the “improvements” to the AP1000 look more like ways to cut construction costs. Even so, a single new AP1000 is expected to cost anywhere from $8 billion to $14 billion dollars–and, it should be noted, no US nuclear facility has ever come in anywhere close to on time or on budget. The US government has already pledged over $8 billion in federal loan guarantees to cover construction of the Georgia reactors, since without the government backstop, no private financial institutions will invest in such a high-cost, high-risk project. Southern Co. has already spent $4 billion preparing the Vogtle site for the anticipated new construction.

I cannot support this licensing as if Fukushima never happened,” said Gregory Jaczko after the Thursday vote–but thanks to the four other commissioners of his captured agency, licensing as if Fukushima never happened is exactly what the NRC did.