February 17, 2010

Obama Commits $8B in Loan Guarantees to Vogtle Expansion—With Conditions

POWERnews

President Barack Obama on Tuesday offered to conditionally guarantee $8.33 billion in loans for Southern Co.’s project to build two AP1000 nuclear reactors at the Alvin W. Vogtle Electric Generating Plant in Burke, Ga. The pledge marks the first federal nuclear loan guarantee, and it could boost construction of the first U.S. nuclear plant in more than 30 years. More commitments are on the way, the Energy Department said.

Investment in nuclear energy is integral for the U.S. if the nation wants to keep its stance as a clean technology exporter, the president said in a speech at the Maryland headquarters of Local 26 of the International Brotherhood of Electrical Workers. Obama also spoke about nuclear energy’s role in energy security and as a low-carbon option that would prevent climate change, alluding to efforts to forge a middle ground between congressional Democrats and Republicans who are currently shaping a comprehensive climate change and energy bill.

The administration’s support for nuclear power was first affirmed during the president’s State of the Union speech last month. Then, earlier this month, the DOE’s Fiscal Year 2011 budget unveiled by Energy Secretary Steven Chu highlighted $56.5 billion in nuclear loan guarantees—$36 billion added to the $18.5 billion allotted by the Energy Policy Act of 2005 and $2 billion that was subsequently added for fuel cycle facilities. The guarantees could support the construction of seven to 10 new reactors, Chu said, if their designs are approved and the developers raise their share of the capital.
 

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