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Exelon may close nuclear plants if energy costs don't recover

2/11/2014

6 Comments

 
By Lenka Kollar

Chicago-based Exelon is one of the biggest nuclear energy providers in the United States with 10 nuclear power plants, 6 of them in Illinois. Low natural gas prices and subsidies for renewables have driven down the price of electricity. Because of this, Exelon may need to shut down nuclear power plants in order to remain profitable. 

Although the uranium fuel is not expensive, nuclear plants are more expensive to run than other types of plants because of the high costs associated with strict federal regulations. Nuclear plants need more security and highly-trained employees and also pay high fees to be licensed by the Nuclear Regulatory Commission (NRC). Natural gas and coal plants do not require the same measures and licenses and therefore are cheaper to operate, even if nuclear fuel is very cheap.
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It seems like a complete waste to shut down a nuclear power plant because natural gas prices are low, right now. Natural gas prices have been extremely volatile in the past and there is absolutely no guarantee that they will remain low in the future. The federal government is also inhibiting nuclear energy by providing subsidies for renewables. Nuclear energy also emits no greenhouse gas emissions and should have access to this funding if it is provided to other "green" forms of energy.

Many people argue that the United States is a free market and that the government should not choose favorites by providing subsidies to some forms of energy and not others. This is a very controversial subject, especially in the debate of climate change and trying to reduce carbon emissions.

People in the nuclear community say that existing nuclear power plants are assets to this country because of the high initial investment, reliable baseload power, and number of jobs that they provide. Exelon argues that it should be payed a higher price for baseload electricity over intermittent electricity from wind and solar generators. 

Should the government intervene by subsidizing nuclear power plants to stay open or let the "free market" take over?
6 Comments
PilotBob link
2/11/2014 04:32:46 am

It seems to me that Nuclear is a "green" energy and should get the same subsidies as solar and wind do.

however, doesn't OIL and Gas also still get subsidies? That to me is absurd and should stop. Anyone want to research that and write a blog entry about it?

Reply
jeppen
2/11/2014 05:37:01 am

I would prefer neither. Scrap subsidies for renewables, really, really streamline nuclear regulation and put in carbon taxes and fine particulate taxes to internalize the external costs of fossils and of biomass combustion. Then watch nuclear surge to dominance. On a REALLY free market, nuclear power has no real competition.

However, an argument for nuclear is never ever that it "provides jobs". Jobs are not provided, they are consumed. As few jobs as possible in the energy sector, please. All our prosperity is due to us doing more with less. A good thing with nuclear is that it consumes few jobs.

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Lenka Kollar link
2/11/2014 05:43:44 am

I think providing jobs is a great argument for nuclear. While there may not be a very large amount of jobs, the employment opportunities are fantastic. High-paying, quality careers greatly enhance the community that the nuclear power plant is in. And since plants are in less-populated areas, they are also usually one of the primary employers in those communities. This is a big reason why public opinion of nuclear energy is so positive in nuclear plant communities.

Reply
Kyle Vastine
2/18/2014 06:44:34 pm

Let me start by saying there is no such thing as the free market. Governments have been providing subsidies for energy proliferation since the industrial revolution. This is not a bad thing either. The initial cost to market for nuclear energy is extremely high and providing incentives to companies interested in competing in the energy market is a good idea. The nuclear energy industry has more regulations and oversight than competing energy industries. The US government should provide ample subsidies to nuclear power proliferation and research just as they have for every other form of energy production (especially 'green' energy). Especially considering the amount of regulation that the government imposes on nuclear facilities. Simply put, there is no other form of energy production that can realistically compete with nuclear if laws and regulations were more 'nuclear friendly.' Energy released in the fission process is unparalleled by other forms of energy conversions (other than fusion naturally). Fossil fuels are being depleted at rates that can't sustain the world's energy demands in the future. Also, there is no way to replace the quickly depleting fossil fuels we have left. Solar, wind and wave-energy capture methods of harnessing energy all produce 'green' energy but on very small scales. Upscaling these operations to meet the needs of an energy hungry people wouldn't be realistic. The cost of such operations and the sheer scale necessary to meet our energy needs will always keep these types of green technology in the category of supplemental energy production. Nuclear energy (even the current state of fission reactors) can and should be our primary source of energy. The government should help to make this more of a reality than the pipe dream it is currently.

Reply
Joel Riddle
3/7/2014 07:37:10 am

No, operating nuclear power plants should not be subsidized. However, the reliability of supply of nuclear power plants should ABSOLUTELY be factored into the pricing within merchant electricity markets, while intermittent sources should NOT receive production tax credits for production at times of lower grid demand. The merchant electricity markets are unequivocally broken at the moment.

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