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U.S. Energy Policy LegislationU.S. Energy Policy Legislation
Thelma L. Wiggins • Manager, Media Relations • Nuclear Energy Institute
ENS PIME 2004 Barcelona, Spain
Feb. 9, 2004
Energy Re-emerges as a Policy ImperativeEnergy Re-emerges as a Policy Imperative• Energy a non-issue for more than 15 years• California energy crisis in 2001• August 2003 blackout• Natural gas supply/price volatility
National Energy Policy BillNational Energy Policy Bill
•Diversified, comprehensive energy policy
•$31.1 billion price tag
•Legislation stalled in Senate over cost
•Nuclear provisions among the least controversial
•Bi-partisan support and chance for passage
•Decision expected in March
Demonstrated Supportof Nuclear EnergyDemonstrated Supportof Nuclear Energy
• President’s State of the Union Address• Congressional support during consideration of nuclear
energy provisions of the legislation• Northeast blackout prompts call for more nuclear• Designation of Yucca Mountain repository• 77-fold increase in nuclear energy R&D since 1998
Used Fuel Management:Continuing ProgressUsed Fuel Management:Continuing Progress• Increased funding to meet project needs and maintain
schedule– DOE budget request of $907 million for FY05 highest-
ever for Yucca Mountain program• DOE developing transportation infrastructure• DOE to file license application with NRC
this December• Major industry initiatives under way
Incentives for Energy SectorsIncentives for Energy Sectors
• Wind energy: $3 billion production credit• Clean coal: $1.5 billion investment credit • Natural gas: $1.5 billion R&D direct spending
$1.3 billion pipeline tax credits$2.2 billion other initiatives
• Electricity reliability: $300 million net direct spending• Nuclear energy: $200 million production credit
- 1.8 cents/ KWh for first 8 years- advanced design certified by NRC after bill passage - plant must be in service before 2021- saves consumers up to $6 million annually; $16 billion over the plant’s 60-year lifetime
The Business Logic Behind Nuclear EnergyThe Business Logic Behind Nuclear Energy• Safe, reliable, low-cost electricity
• Stable cash flow
• Hedge against volatility in natural gas price and supply
• Safeguard against escalating environmental requirements
Safe and Reliable
Forward Price Stability
Environmental Value
Low Cost
Sustained Political Support For Nuclear Energy
Sustained Political Support For Nuclear Energy• 2003: Energy legislation provided major stimulus
package for nuclear energy– Price-Anderson Act renewal– Financial incentives for new nuclear plants– Favorable tax treatment of decommissioning funds– Nuclear/hydrogen cogeneration project– Favorable regulatory changes– Removal of tariffs on steam generators, reactor
vessel heads
Validating the Licensing Process for New ReactorsValidating the Licensing Process for New Reactors
• Implementing cost-shared programs with the federal government to validate new licensing process and develop competitive designs– Exelon, Dominion, Entergy seeking early site
permits– Department of Energy solicited proposals to
demonstrate process for obtaining combined construction/operating license
Nuclear Power:Clearly CompetitiveNuclear Power:Clearly Competitive
$23.00
$35.84
$42.57
$34.64
$46.93
Nuclear BusbarCost
Mid-Atlantic
Gas-Fired Plant(fuel cost only)
California
Northeast
$ per Megawatt-hour
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