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"The project at Plant Vogtle near Waynesboro, Ga., is being undertaken by Southern Co., which operates four electric utilities in the South, and three minority

by hristov 15y ago

"The project at Plant Vogtle near Waynesboro, Ga., is being undertaken by Southern Co., which operates four electric utilities in the South, and three minority partners — all aided by a massive federal loan guarantee and other incentives." So yes federal taxpayers are paying for this too. Loan guarantees are not free. By the way, the loan guarantee for just these two nuclear reactors will be 8.3 billion which dwarfs the half a billion dollar Solyndra loan guarantee everyone is complaining about. Unfortunately, nuclear subsidies in the US dwarf the very few incentives we have for renewable power. Almost the entire budget of the Department of Energy is devoted to supporting nuclear in one way or another. Edit: This is the link showing the amount of the loan guarantee: http://www.nytimes.com/2010/02/17/business/energy-environment/17nukes.html http://www.nytimes.com/2010/02/17/business/energy-environmen...

ams6110 15y ago
I would think a loan guarantee would only have a cost if the utility defaulted on the loan. The taxpayers are in effect co-signing. Unfortunately the history of nuclear generating station construction is one of massive cost overruns and defaults. I wish I felt more confident that things would be different this time. Regardless, I think this is welcome news, demand for electricity is only going to grow especially as electric vehicles start to become viable.
- clarkevans 15y ago
  > loan guarantee would only have a cost if the utility defaulted But loan guarantee does have a cost -- it is risk the taken on by the tax payer. The value of that risk is how much the loan guarantee would cost if purchased on the free market.
- RockyMcNuts 15y ago
  I have good credit, would you co-sign a car loan for me for free? No? How much would I have to pay you to make it worth co-signing? That's the value of the loan guarantee to you. The value to me is how much I save on interest due to your guarantee. Or, if I can't buy a car without your signature, the value to me is the difference between the value of owning a car vs. not owning one.
- jbester 15y ago
  The loan guarantee is actually against government induced project delays not default. The goal is to make the government a stakeholder. The last two built at that same site had > 10x cost overruns for that reason.

by hristov 15y ago

ams6110 15y ago

I would think a loan guarantee would only have a cost if the utility defaulted on the loan. The taxpayers are in effect co-signing. Unfortunately the history of nuclear generating station construction is one of massive cost overruns and defaults. I wish I felt more confident that things would be different this time. Regardless, I think this is welcome news, demand for electricity is only going to grow especially as electric vehicles start to become viable.

clarkevans 15y ago
> loan guarantee would only have a cost if the utility defaulted But loan guarantee does have a cost -- it is risk the taken on by the tax payer. The value of that risk is how much the loan guarantee would cost if purchased on the free market.
RockyMcNuts 15y ago
I have good credit, would you co-sign a car loan for me for free? No? How much would I have to pay you to make it worth co-signing? That's the value of the loan guarantee to you. The value to me is how much I save on interest due to your guarantee. Or, if I can't buy a car without your signature, the value to me is the difference between the value of owning a car vs. not owning one.
jbester 15y ago
The loan guarantee is actually against government induced project delays not default. The goal is to make the government a stakeholder. The last two built at that same site had > 10x cost overruns for that reason.