Key Issues
Policies That Support New Nuclear Power Plant Development
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October 2009
Key Facts
October 2009
Key Facts
- Electric utilities must build new baseload generating plants to meet future electricity demand. Because of concern over carbon dioxide emissions from fossil-fuel plants, uncertainty over federal climate change policy, and the volatility of natural gas prices, new nuclear power plants must be part of the portfolio.
- New nuclear power plants are large, capital-intensive projects. Financing these projects will be a challenge for the U.S. electric industry since the size of the projects is large relative to the size of the electric companies that will build them. These projects will require financing support from the federal government, state governments or both.
- The Energy Policy Act of 2005 included three forms of financial support for new nuclear plants. Some states have enacted legislation or implemented regulations, or both, to support the construction of new nuclear plants.