Energy chief announces plan to boost atomic power

August 05, 2006|Greg Bluestein, Associated Press

ATLANTA -- The nation's energy chief announced a plan yesterday to provide incentives to companies willing to build the first new nuclear plants in 30 years, offering $2 billion in federal insurance for construction of six plants.

``I think it's time for the nation that invented this technology to reassert its leadership," Energy Secretary Samuel Bodman said.

The United States has 103 nuclear power plants in 31 states, but utilities have not proposed a new reactor since 1973.

High costs and debate over where to store radioactive waste bogged down construction efforts, and a partial meltdown at the Three Mile Island plant in 1979 in Pennsylvania put an end to plans for new reactors.

But with energy prices on the rise, supporters of nuclear power have promoted it as a way to generate cheaper electricity without churning out greenhouse gases.

Bodman said 12 utilities are expected to file papers over the next three years to build 18 reactors.

The insurance plan would provide up to $500 million in coverage for the first two plants and up to $250 million for the next four plants.

``This program is crucial, we believe, to reinvigorating the American nuclear power industry," Bodman told Georgia Power Co. employees during a visit to Atlanta.

Georgia Power, which provides electricity to the Atlanta area, might take up Bodman's offer.

The company is considering building a new reactor at its Plant Vogtle site near Waynesboro, Ga.

``It's a very long process. So in order to keep that option open, we are actually taking steps right now that will at least allow us to be in the running," company spokeswoman Carol Boatwright said.

Bodman's visit to Atlanta came at the end of a nationwide heat wave that set record temperatures and strained electrical grids.