Many of the manager’s reports I have written in the past two years have focused on future energy generation and our country’s attempt to regulate carbon emissions.  During that time, members have had several questions and concerns regarding nuclear power.  Common questions such as how much will it cost? What is done with the waste? How much energy is produced? How many nuclear plants are in the United States? Why can’t we just use renewable generation to meet all our electrical needs? These are excellent questions I would like to answer. 

Climate change is on almost everyone’s mind and is certainly a hot topic in Washington, DC.  Legislation is currently being debated which will require dramatic changes in the way electricity is produced in this country.  Limiting carbon emissions as stated in the current legislation and keeping electric rates affordable will require a portfolio of solutions which includes hybrid electric vehicles, energy efficient homes and businesses, expansion of renewable resources, nuclear power, and new technologies for carbon capture.  Unfortunately, there is no “magic potion” for combating climate change. 

The costs of all forms of energy production have been rising in recent years, and nuclear plants are no exception.  Recent estimates put the price tag for a typical 800 megawatt nuclear plant around 5 billion dollars.  While that is a tremendous amount of money, this 800 megawatt plant produces enough energy to serve annual energy needs for 6.5 million homes.  In comparison, an equivalent sized photovoltaic solar facility would cost 10 billion dollars, would serve the energy needs of about 1.4 million homes (when the sun is shining), and would require about 8,000 acres to construct.  Solar and nuclear energies are both key components of a range of options that needs to be deployed to meet the climate change challenge. 

Most spent nuclear fuel is currently being securely stored at the nation’s nuclear plants in steel lined concrete pools or massive airtight concrete and steel canisters.  In 2002, Congress approved a site at Yucca Mountain, Nevada, for long term deep underground storage of spent fuel.  An application for approval of the site for operation is under review by the Nuclear Regulatory Commission.  The industry is also working with the government to explore other alternatives such as reprocessing spent fuel so that it may be reused.

Presently, there are 104 nuclear reactors in the U.S., located in 31 states.  These plants are the lowest-cost producer of base load electricity. The average production cost of 1.87 cents per kilowatt-hour includes the costs of operating and maintaining the plant, purchasing fuel and paying for the management of used fuel.

While nuclear power is a key component in our energy solution, the United States relies on diverse sources for electricity production. Together, coal and nuclear energy provide almost 70 percent of our supply. Natural gas supplies 21.3 percent; hydropower, 5.9 percent; oil, 1.1 percent; and renewable and other sources, 3.3 percent.

More information on the safety of nuclear fuel storage as well as other facts can be found at the web site of the Nuclear Energy Institute at www.nei.org.

Thank You,

Jeff Loven
Email: jeff.loven@frenchbroademc.com


 Back to Current Manager's Report