a commentary by Etopia News commentator Marc Strassman on the failure of former Illinois Governor Rod Blagojevich to take responsibility for a trivial dereliction of duty during the reality program Celebrity Apprentice, recorded on March 15, 2010, in Studio City, California
Monday, March 15, 2010
Friday, March 12, 2010
An effort to stop “nuclear socialism” emerges in wake of promised loan guarantees
“Nuclear socialism” is what Michael Mariotte, Executive Director of the Nuclear Information Resource Service (NIRS) calls efforts by the nuclear industry to finance its expansion with federal taxpayer money.
Mr. Mariotte today told Etopia News that instead of pooling its money and building new nuclear reactors on its own, as it did with almost all of the existing 103 reactors now in operation, the industry has chosen to spend “600 million dollars over 10 years” on lobbying to get taxpayers to pre-emotively bail-out “wealthy utilities” and “wealthy reactor makers.” He criticized arrangements that would give profits, if there were any, to private companies, while saddling taxpayers with the losses, which he deemed more likely.
He also discussed the “credit subsidy cost” associated with the recently-offered 8 billion dollar loan guarantee to Southern Company, saying that this “down payment” to the federal government to cover the risk of failure ought to reflect the Congressional Budget Office’s calculation of that risk at 50% or the Government Accountability Office’s estimate of “above 25% for a loss of money,” rather than the 1% or less rate favored by the industry.
If the size of the credit subsidy payment were to reflect the actual risk of failure, he said, then it was likely that the project to build two new nuclear reactors in Georgia would not proceed.
He also criticized the lack of transparency regarding this credit subsidy cost, saying that the process surrounding its determination, and even its final level, was “non-transparent,” with the Department of Energy, which will recommend the proper cost, and the Office of Management and Budget, which will approve it, saying that they won’t reveal their final decision even after they’ve made it.
With an original appropriation of 18.5 billion dollars in 2007 for these nuclear guarantees, the 8.3 billion collars in guarantees being offered to Southern Company and its partners leaves 10.2 billion dollars for additional such projects. President Obama’s proposed 2011 budget provides for the expansion of this amount to 54 billion dollars.
Mr. Mariotte believes that the “pro-nuclear majority in the Senate” means that any effort to stop further support for nuclear development will focus on the House of Representatives, specifically the House Appropriations Committee chaired by Rep. David Obey of Wisconsin. He expects hearings on this measure to begin in “three or four weeks.”
He listed Physicians for Social Responsibility, Friends of the Earth, the Natural Resources Defense Council, and the Union of Concerned Scientists as groups opposing the expansion of the nuclear loan guarantee program.
On the technical side, Mr. Mariotte pointed to on-going design problems, not yet resolved, that nuclear reactor maker Westinghouse was having with the “shield building” component of the proposed nuclear plant. In order to save money, he said, the company wanted to build this structure off-site and construct it in a modular fashion, but there were problems with whether or not that approach would result in a structure capable of withstanding weather-related stress.
“In a practical sense,” he said, the offer of a loan guarantee was “meaningless, since the design of the reactor was not yet approved” by the Nuclear Regulatory Commission.
On the political side, he characterized the Obama administration as divided on the issue of support for nuclear expansion, with Secretary of Energy Steven Chu being the “most ardent pro-nuclear” person involved in the discussions.
He said that U.S. Senator John Kerry, who “has the ear of the President,” had told Mr. Obama that with some Democratic senators opposing the Administrations overall climate change agenda, it would be necessary to cultivate the support of some Republicans, who might be won over if the President supported nuclear expansion, in order to pass a climate change bill.
But, as reported on March 5th by Etopia News in an article entitled “Obama‘s pro-nuke move has no effect on Republican opposition to cap-and-trade,” this approach is not likely to work. According to Mr. Mariotte, “it’s as likely to lose votes” for the President’s plans, citing the failure of a climate change bill put forward in 2005, with lesser nuclear subsidies, by Senators John McCain and Joseph Lieberman.
The big question that needs to be addressed, Mr. Mariotte said, was “Should taxpayers be subsidizing the industry” at a time when public opinion seems to have had enough of government bail-outs to wealthy corporations.
Mr. Mariotte today told Etopia News that instead of pooling its money and building new nuclear reactors on its own, as it did with almost all of the existing 103 reactors now in operation, the industry has chosen to spend “600 million dollars over 10 years” on lobbying to get taxpayers to pre-emotively bail-out “wealthy utilities” and “wealthy reactor makers.” He criticized arrangements that would give profits, if there were any, to private companies, while saddling taxpayers with the losses, which he deemed more likely.
He also discussed the “credit subsidy cost” associated with the recently-offered 8 billion dollar loan guarantee to Southern Company, saying that this “down payment” to the federal government to cover the risk of failure ought to reflect the Congressional Budget Office’s calculation of that risk at 50% or the Government Accountability Office’s estimate of “above 25% for a loss of money,” rather than the 1% or less rate favored by the industry.
If the size of the credit subsidy payment were to reflect the actual risk of failure, he said, then it was likely that the project to build two new nuclear reactors in Georgia would not proceed.
He also criticized the lack of transparency regarding this credit subsidy cost, saying that the process surrounding its determination, and even its final level, was “non-transparent,” with the Department of Energy, which will recommend the proper cost, and the Office of Management and Budget, which will approve it, saying that they won’t reveal their final decision even after they’ve made it.
With an original appropriation of 18.5 billion dollars in 2007 for these nuclear guarantees, the 8.3 billion collars in guarantees being offered to Southern Company and its partners leaves 10.2 billion dollars for additional such projects. President Obama’s proposed 2011 budget provides for the expansion of this amount to 54 billion dollars.
Mr. Mariotte believes that the “pro-nuclear majority in the Senate” means that any effort to stop further support for nuclear development will focus on the House of Representatives, specifically the House Appropriations Committee chaired by Rep. David Obey of Wisconsin. He expects hearings on this measure to begin in “three or four weeks.”
He listed Physicians for Social Responsibility, Friends of the Earth, the Natural Resources Defense Council, and the Union of Concerned Scientists as groups opposing the expansion of the nuclear loan guarantee program.
On the technical side, Mr. Mariotte pointed to on-going design problems, not yet resolved, that nuclear reactor maker Westinghouse was having with the “shield building” component of the proposed nuclear plant. In order to save money, he said, the company wanted to build this structure off-site and construct it in a modular fashion, but there were problems with whether or not that approach would result in a structure capable of withstanding weather-related stress.
“In a practical sense,” he said, the offer of a loan guarantee was “meaningless, since the design of the reactor was not yet approved” by the Nuclear Regulatory Commission.
On the political side, he characterized the Obama administration as divided on the issue of support for nuclear expansion, with Secretary of Energy Steven Chu being the “most ardent pro-nuclear” person involved in the discussions.
He said that U.S. Senator John Kerry, who “has the ear of the President,” had told Mr. Obama that with some Democratic senators opposing the Administrations overall climate change agenda, it would be necessary to cultivate the support of some Republicans, who might be won over if the President supported nuclear expansion, in order to pass a climate change bill.
But, as reported on March 5th by Etopia News in an article entitled “Obama‘s pro-nuke move has no effect on Republican opposition to cap-and-trade,” this approach is not likely to work. According to Mr. Mariotte, “it’s as likely to lose votes” for the President’s plans, citing the failure of a climate change bill put forward in 2005, with lesser nuclear subsidies, by Senators John McCain and Joseph Lieberman.
The big question that needs to be addressed, Mr. Mariotte said, was “Should taxpayers be subsidizing the industry” at a time when public opinion seems to have had enough of government bail-outs to wealthy corporations.
Thursday, March 11, 2010
Three “conditions pending” as Southern Company and DOE negotiate loan guarantee for new nuclear reactors
Etopia News spoke today with Ebony Meeks, Press Assistant at the U.S. Department of Energy, about the on-going negotiations between DOE and Southern Company for a loan guarantee in support of the major utility’s plans to build two new nuclear reactors in Georgia.
Ms. Meeks said that there were three “conditions pending” that need to be fulfilled before the loan guarantee can be issued.
First, the Nuclear Regulatory Commission (NRC) needs to issue a COL, or Combined License to build and operate the proposed plants. More about this at: http://www.nrc.gov/reactors/new-reactors/col.html
According to the NRC site:
By issuing a combined license (COL), the U.S. Nuclear Regulatory Commission (NRC) authorizes the licensee to construct and (with specified conditions) operate a nuclear power plant at a specific site, in accordance with established laws and regulations. A COL is valid for 40 years from the date of the Commission finding, under Title 10, Section 52.103 (g), of the Code of Federal Regulations [10 CFR 52.103(g)], that the acceptance criteria in the combined license are met. A COL can be renewed for an additional 20 years. The NRC expects to receive applications for new LWR {Light Water Reactor] facilities in a variety of projected locations throughout the United States.
Second, the DOE and Southern Company need to agree on the size of the “credit subsidy” payment to be made in return for the loan guarantee. Ms. Meeks said that information about the size of this payment was “proprietary,” but that it should be released when the loan agreement closes.
Third, the loan guarantee can only cover 80% of the project cost, so Southern Company, and its associated partners, need to raise 20% of the project funding from other sources, as a condition for getting the loan guarantee.
Ms. Meeks indicated that the 80% loan itself is expected to come from the Federal Financing Bank.
Ms. Meeks said that there were three “conditions pending” that need to be fulfilled before the loan guarantee can be issued.
First, the Nuclear Regulatory Commission (NRC) needs to issue a COL, or Combined License to build and operate the proposed plants. More about this at: http://www.nrc.gov/reactors/new-reactors/col.html
According to the NRC site:
By issuing a combined license (COL), the U.S. Nuclear Regulatory Commission (NRC) authorizes the licensee to construct and (with specified conditions) operate a nuclear power plant at a specific site, in accordance with established laws and regulations. A COL is valid for 40 years from the date of the Commission finding, under Title 10, Section 52.103 (g), of the Code of Federal Regulations [10 CFR 52.103(g)], that the acceptance criteria in the combined license are met. A COL can be renewed for an additional 20 years. The NRC expects to receive applications for new LWR {Light Water Reactor] facilities in a variety of projected locations throughout the United States.
Second, the DOE and Southern Company need to agree on the size of the “credit subsidy” payment to be made in return for the loan guarantee. Ms. Meeks said that information about the size of this payment was “proprietary,” but that it should be released when the loan agreement closes.
Third, the loan guarantee can only cover 80% of the project cost, so Southern Company, and its associated partners, need to raise 20% of the project funding from other sources, as a condition for getting the loan guarantee.
Ms. Meeks indicated that the 80% loan itself is expected to come from the Federal Financing Bank.
Friday, March 5, 2010
Obama’s pro-nuke move has no effect on Republican opposition to cap-and-trade
On February 16th, President Obama announced the granting of a provisional loan guarantee to Southern Company to help it raise the billions of dollars it needs to build two new nuclear reactors. Commentators said one of the reasons the President was coming out in support of nuclear energy was to convince Republicans to support broad cap-and-trade legislation intended to combat climate change.
Etopia News today contacted the office of Senate Republican Leader Mitch McConnell and asked if the President’s pro-nuclear action had impacted their position against cap-and-trade.
“We still don’t support the national energy tax,” said McConnell spokesperson Don Stewart. “Is that what the Republicans call cap-and-trade?” he was asked. “Yes, that’s what it is, isn’t it?” he replied. “So you don’t support cap-and-trade even though the President has come out in support of nuclear power?” “Yes,” he said.
Etopia News today contacted the office of Senate Republican Leader Mitch McConnell and asked if the President’s pro-nuclear action had impacted their position against cap-and-trade.
“We still don’t support the national energy tax,” said McConnell spokesperson Don Stewart. “Is that what the Republicans call cap-and-trade?” he was asked. “Yes, that’s what it is, isn’t it?” he replied. “So you don’t support cap-and-trade even though the President has come out in support of nuclear power?” “Yes,” he said.
Thursday, March 4, 2010
Utility expecting billions in taxpayer funding for two new nuclear reactors
On February 16th, President Obama offered Southern Company provisional loan guarantees for $3.4 billion to help it finance the construction of the first new nuclear reactors in the U.S. in over 30 years, Read about it at:
http://www.southerncompany.com/news/iframe_pressroom.aspx
Mentioned in this press release, but not as widely reported, is the fact that the utility expects to get the actual multi-billion dollar loan for building the reactors from the Federal Government as well, specifically, from the little-known Federal Financing Bank (FFB).
http://www.ustreas.gov/ffb/
Today, March 4th, Southern Company spokesperson Steven Higginbottom re-iterated to Etopia News by phone that “it’s our understanding that the funding will come from the Federal Financing Bank.”
Public funding to build the twin reactors, Vogtle 3 and 4, in not yet a done deal. U.S. Department of Treasury spokesperson Sandra Salstrom today told Etopia News by e-mail that:
“If and when a loan is ever made for this, it will be made public by the FFB.”
The consensus view on this seems to be that Southern Company is focusing its current efforts on negotiating the terms of the loan guarantee with the Department of Energy, making sure that the “credit subsidy” cost included in the project financing be as low as possible, and getting the licenses needed to construct and operate the proposed nuclear reactors.
http://www.southerncompany.com/news/iframe_pressroom.aspx
Mentioned in this press release, but not as widely reported, is the fact that the utility expects to get the actual multi-billion dollar loan for building the reactors from the Federal Government as well, specifically, from the little-known Federal Financing Bank (FFB).
http://www.ustreas.gov/ffb/
Today, March 4th, Southern Company spokesperson Steven Higginbottom re-iterated to Etopia News by phone that “it’s our understanding that the funding will come from the Federal Financing Bank.”
Public funding to build the twin reactors, Vogtle 3 and 4, in not yet a done deal. U.S. Department of Treasury spokesperson Sandra Salstrom today told Etopia News by e-mail that:
“If and when a loan is ever made for this, it will be made public by the FFB.”
The consensus view on this seems to be that Southern Company is focusing its current efforts on negotiating the terms of the loan guarantee with the Department of Energy, making sure that the “credit subsidy” cost included in the project financing be as low as possible, and getting the licenses needed to construct and operate the proposed nuclear reactors.
Thursday, February 25, 2010
James Carlini says "Follow Patton or get out"
Commentator and consultant James Carlini makes the case for cutting government budgets by 20% or firing those who can't or won't make the cuts, recorded between Los Angeles and East Dundee, Illinois, on February 25, 2010
Wednesday, February 24, 2010
James Carlini on Google's Gigabit Trial Project
Consultant and commentator James Carlini talks about Google's plan to deploy 1-gigabit ultra-high-speed Internet access and its implications for business and consumers, recorded from East Dundee, Illinois, on February 24, 2010
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