Will stranded costs scuttle the nuclear industry?

Journal Article · Wed Nov 01 04:00:00 EST 1995 · NUKEM Market Report

OSTI ID:273387

This article addresses the subject of stranded, or unrecoverable costs and their effect on the nuclear utility industry. Data is presented that shows that the utility stranded cost of $73B in generation assets is approximately 80% due to nuclear investment. This represents approximately 35% of investor-owned utilities` total stranded assets. Those utilities with significant exposure are noted. Data is also presented on the production costs/KWh for each operating nuclear plant in the U.S. for the calender year 1994. The question of whether stranded costs may result in the demise of certain non-competitive nuclear power facilities is addressed, and it was concluded that operating and maintenance costs would be the most important determinant of which plants fail to make the cut in the competitive markets now unfolding.

• OSTI ID: 273387
• Journal Information: NUKEM Market Report, Journal Name: NUKEM Market Report; ISSN NMREEO
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
COST RECOVERY
ELECTRIC POWER INDUSTRY
NUCLEAR POWER PLANTS
OPERATING COST