The economic realities of building new nuclear power plants in the U.S. may be coming to bear even faster than expected.
Constellation Energy (NYSE: CEG) annouced Saturday that it has been unable to reach an agreement with the U.S. Department of Energy over the terms of a loan guarantee for a new reactor proposed for Maryland.
According to a New York Times report, seven other new reactor projects have also been put on hold over the last few months.
Ever since the Obama administration announced it would greatly expand the DOE’s lending authority for new nuclear, groups like the Union of Concerned Scientists have pointed to the skyrocketing costs of building new nuclear power and the staggering economic risks they place on taxpayers.
DOE apparently is wary of the risks also. It demanded a high loan fee from Constellation, or other assurances of repayment. Constellation said the government’s demand was “unreasonably burdensome."
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