Decommissioning nuclear power plants: a case for external funding

Journal Article · · Forum Appl. Res. Publ. Pol.; (United States)

OSTI ID:6814837

Hendren, C B

In deciding how to finance the decommissioning of nuclear power plants, there are five basic criteria for choosing between internal and external funding methods: (1) the desire for financial assurance, (2) the cost of the assurance, (3) the degree of equity in the recovery program, (4) the program's ability to respond to changes, and (5) the program's adaptability to different utilities. To fulfill its obligations to protect long-term public interests, the Missouri Public Service Commission decided it had to assure, to the maximum extent possible, that sufficient decommissioning funds were available when needed. For this reason, it chose the external funding method. In an external fund, the money currently collected from ratepayers to cover decommissioning costs is placed in an independent trust fund comprised of low-risk investments. The funds and the interest they accrue are available to the utility only at the time of decommissioning (and only for that purpose), thus assuring a certain amount of money will be on-hand to cover decommissioning costs as they arise. Such a fund may prove critical to the financial well-being of the utility, particularly if one considers that the utility would need additional generating facilities to replace the capacity lost through the retirement of its nuclear plant. 3 references.

• Research Organization: Missouri Public Service Commission, Jefferson City (USA)
• OSTI ID: 6814837
• Journal Information: Forum Appl. Res. Publ. Pol.; (United States), Journal Name: Forum Appl. Res. Publ. Pol.; (United States) Vol. 2:4; ISSN FARPE
• Country of Publication: United States
• Language: English

Related Subjects

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
210800* -- Nuclear Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
290600 -- Energy Planning & Policy-- Nuclear Energy
DECISION MAKING
DECOMMISSIONING
FEDERAL REGION VII
FINANCING
LAWS
MISSOURI
NORTH AMERICA
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
POWER PLANTS
PUBLIC POLICY
TAX LAWS
THERMAL POWER PLANTS
USA