1 May 2009
The New York Times reports here that AmerenUE, a utility company servicing Missouri and Illinois, has suspended its effort to build another reactor and power plant near Fulton, MO. Evidently, the biggest obstacle was Missouri’s anti-CWIP regulations. Construction Works in Progress, or “CWIP” regulations in some states, like Florida, allow utility companies to charge rate payers for construction costs before a new power plant generates and sells a single watt of electricity. Missouri does not allow utilities to charge up-front to build new facilities.
Without the ability to charge its customers up front, AmerenUE couldn’t finance the project. Banks and other private investors still don’t see nuclear power as a wise investment, even though uranium prices are way down.