Last July, Ohio’s governor signed House Bill 6 (HB6) to provide FirstEnergy (now Energy Harbor), a large electric utility, with subsidies of nearly $150 million per year to keep its Perry and Davis-Besse nuclear power plants operating. Ohio is only the fifth US state to offer such subsidies; other states include New York, Illinois, New Jersey, and Connecticut. Although the subsidies are justified by some as necessary for climate mitigation, in the latter four states, electricity generation from natural gas, which results in greenhouse gas emissions, has increased since 2017, when these subsidy programs started kicking in. Moreover, in Ohio, subsidies are also being extended to coal power plants, providing the clearest illustration that what underlies the push for subsidies to nuclear plants is not a result of a real commitment to climate mitigation but a way to use climate concerns to bolster the profits of some energy corporations. The enormous lobbying effort that won the subsidies used dark money–backed organizations that spent millions of dollars to sway voters and politicians. But it didn’t stop with the bill being signed into law—the lobbying also thwarted the ability of citizens to put the proposal to a democratic vote through a referendum, including by funding television advertisements that falsely claimed that China was “intertwining themselves financially in our energy infrastructure” and threatening “national security,” implying that not going through with the nuclear bailout would somehow lead to Chinese control of Ohio’s power grid. As confronting climate change gets in the way of corporate profits, such dirty battles are sure to emerge more often. Already operating nuclear plants don’t have to worry about borrowing money for construction or repaying the money they have already borrowed. Herein lies the real cost problem for electric utilities that own nuclear plants. For each megawatt hour of electricity generated in 2019, the average nuclear power plant in the United States spent $30.42 on fuel, repairs and maintenance, and wages; some spent much more. Those costs are comparable to the overall generation costs (including the cost of construction) of solar and wind power.
Bulletin of Atomic Scientists 21st April 2020 read more »