Nuclear Engineering Commons^™

Dismal Science Meets Dismal Subject: The (Mal)Practice Of Nuclear Power Economics, Charles Komanoff

New England Journal of Public Policy

Electric utilities, reactor designers and builders, and the federal government have badly underestimated the costs of new nuclear power plants over the past fifteen years. Although not all of the increases were readily predictable, particularly those caused by rapid general inflation, nuclear advocates failed to foresee most of the sixfold growth in real costs resulting from new reactors' greater complexity, scope, and regulatory surveillance.

This review recounts the methods used by nuclear power proponents to convince policymakers, the public, and themselves that new nuclear plants would be competitive with other energy sources, long after conclusive contrary evidence was available. It …

Seabrook: A Case Study In Mismanagement, Irvin C. Bupp

New England Journal of Public Policy

The Seabrook nuclear power plant construction project is an unqualified financial disaster. It simultaneously threatens its chief owner, the Public Service Co. of New Hampshire (PSNH) with bankruptcy and the company's electricity customers with huge rate increases. The fifteen-year history of the project is reviewed to identify "what went wrong?"

The review suggests that the basic problem has been mismanagement by both PSNH and by government regulators. A three-year regulatory imbroglio over the environmental effects of the plant's cooling system was extremely costly in the mid-1970s.

By the time this problem was belatedly resolved, the project had begun to outstrip …