• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 5 hours UK, Stay in EU, Says Tusk
  • 1 hour Socialists want to exorcise the O&G demon by 2030
  • 5 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 45 mins Nuclear Power Can Be Green – But At A Price
  • 15 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 2 hours Venezuela continues to sink in misery
  • 3 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 7 mins Chevron to Boost Spend on Quick-Return Projects
  • 17 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 15 hours How Is Greenland Dealing With Climate Change?
  • 11 hours Maritime Act of 2020 and pending carbon tax effects
  • 1 day Solid-State Batteries
  • 23 hours Orphan Wells
  • 18 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
Bearish News Mounts For LNG Spot Markets

Bearish News Mounts For LNG Spot Markets

Industry sources recently noted that…

Fears Of U.S. Shale Demise May Be Overblown

Fears Of U.S. Shale Demise May Be Overblown

Recent reports have highlighted growing…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Obama Admin Gives Nuclear Loan Guarantee For Free

The Obama administration has finalized a $6.5 billion loan guarantee to Georgia Power to build two new nuclear reactors near Augusta, Georgia. But in a surprise move, the Department of Energy will not charge a credit subsidy fee. The fee, intended to account for the risk borne by U.S. taxpayers, usually amounts to several hundred million dollars. But the Department of Energy agreed to provide the loan guarantee for the project for free, as reported by Environment and Energy Publishing (E&E) on April 21.

DOE confirmed its decision to waive the fee for two separate loan guarantees in a February 11 letter to Georgia Power and Oglethorpe, the two major owners of the reactors under construction. Obtained through Freedom of Information Act requests, E&E published the letters online earlier this week.

The Nuclear Regulatory Commission’s decision in 2009 to approve two new reactors at the Alvin W. Vogtle Electric Generating Plant in Georgia was seen as the start of a U.S. nuclear renaissance. Using the new AP1000 design by Westinghouse, the plans were enthusiastically endorsed by the White House early in Obama’s first term.

Related Article: Obama Administration Committed to U.S. Nuclear Energy Exports

On February 16, 2010, Obama announced that DOE would issue $8.33 billion in loan guarantees for the project, but several years passed before terms could be agreed upon. The credit subsidy fee has been a sticking point for previous projects. Most notably, the owners of the Calvert Cliffs nuclear power plant in Maryland shelved their plans at expansion after balking at the $880 million subsidy fee DOE wanted.

News of DOE’s decision to waive the fee has sparked some criticism. According to E&E, Sara Barczak, director of the Southern Alliance for Clean Energy's high-risk energy choices program, said, “It is outrageous that the Department of Energy and Office of Management and Budget somehow determined that the two reactors under construction at Plant Vogtle pose less of a risk of default today than they did a couple years ago.”

DOE spokesperson Dawn Selak responded to the criticism by noting that the project is owned and operated by responsible companies. “This calculation is based upon a standard methodology used across the federal government,” she said. “In this case, it should be noted that the Vogtle project sponsors are well-established, sizable companies that are already heavily invested and wholly committed to the project.”

By James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News