About
Ameren Missouri, based in St. Louis, is the states largest investor-owned utility and a regulated monopoly. Because they are a regulated monopoly, they have to follow certain regulations that private businesses do not. Because they are a regulated monopoly, they are also guaranteed a rate of return, or guaranteed profit. Ameren Missouri shareholders make money through increased energy production and sales. Building a second nuclear reactor in Missouri, estimated to be at least $9 billion dollars, is the most profitable way for Ameren to deliver energy, not the best way. If Ameren gets their way in Jefferson City, the $9 billion it takes to build a second nuclear reactor will become the burden of ratepayers and taxpayers, not utility shareholders.
The General Assembly is being pushed by Ameren Missouri’s army of lobbyists to repeal part of a consumer protection law supported by voters 2-to-1 in 1976. The law made it illegal for investor-owned utilities, like Ameren Missouri, to recover costs associated with construction of a new power plant until it was “used and useful” or producing electricity. Charging customers upfront is known as Construction Work In Progress (CWIP) and has been outlawed in Missouri for 35 years. This law saved Ameren ratepayers $400 million dollars after the completion of the Callaway 1 nuclear plant in the 1980′s.
Ameren’s nuclear legislation will repeal part of the no-CWIP law making it legal for Ameren Missouri to recoup up to $45 million associated with obtaining an Early Site Permit from the Nuclear Regulatory Commission. The issue here is that Ameren does not need an ESP for a new nuclear reactor. Over half of nuclear reactors being pursued throughout the country have not, and will not, seek an ESP because it is not needed. What is needed is a Construction and Operating License from the NRC.
The free market will not invest in new nuclear projects because of the high risk associated with cost overruns and construction delays; Moody’s calls building new nuclear a “bet on the farm.” Ameren is trying to insulate their investors from the significant risks of building a new nuclear reactor and is forcing the risk onto ratepayers. The events unfolding in Japan, while incredibly unfortunate, will do nothing but increase the already high price of new nuclear reactors due to increased safety regulations that are sure to follow.
Protect your wallet! Together we can tell our legislature we do not want to finance a money pit during a recession while Missouri families are struggling. Sign-up here for alerts!
