Costly economic distortions are an inexorable result of government bailouts for specific industries, the justifications for which are almost always deeply dubious. Consider section 3203 of the proposed Senate Energy Infrastructure Act. It would establish a $6 billion credit program over four years starting in fiscal year 2022 for nuclear electricity plants “projected to cease operations due to economic factors.” The credits, disbursement of which would cease after 2031, would be defined as a certain dollar amount per megawatt-hour (mWh) of generation. And just as the production tax credit for wind electricity has been extended 13 times, it is difficult to believe that once implemented a similar subvention for nuclear power will fail to prove semi-permanent.
The Hill 28th Aug 2021 read more »