Nuclear Plant Builder in Chapter 11
As we debate climate change, someone always steps forward to claim that only some form of nuclear fission or fusion can keep the lights on. Nuclear power, they say, is safer and cleaner than burning fossil fuels.
But first, nuclear wastes have half-lives in the thousands of years. Second, nuclear power plants are so *not* profitable that only governments or utilities using public money can be induced to finance them.
Westinghouse Nuclear, owned by Toshiba, had tried to guarantee a fixed cost for four new projects, and is now going bankrupt as a result:
Westinghouse Electric Company, LLC, a U.S. company, and certain of its subsidiaries and affiliates, today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The Company is seeking to undertake a strategic restructuring as a result of certain financial and construction challenges in its U.S. AP1000® power plant projects.
… The DIP financing will fund Westinghouse’s core businesses of supporting operating plants, nuclear fuel and components manufacturing and engineering as well as decommissioning, decontamination, remediation and waste management as the company works to reorganize around these strong business units.
From the New York Times, Westinghouse Files for Bankruptcy, in Blow to Nuclear Power:
The filing comes as the company’s corporate parent, Toshiba of Japan, scrambles to stanch huge losses stemming from Westinghouse’s troubled nuclear construction projects in the American South. Now, the future of those projects, which once seemed to be on the leading edge of a renaissance for nuclear energy, is in doubt.
… The power companies — Scana Energy in South Carolina and a consortium in Georgia led by Georgia Power, a unit of Southern Company — would face the possibility of new contract terms, long lawsuits and absorbing losses that Toshiba and Westinghouse could not cover, analysts say. The cost estimates are already running $1 billion to $1.3 billion higher than originally expected, according to a recent report from Morgan Stanley, and could eventually exceed $8 billion over all.
… Using simplified structures and safety equipment, [AP1000] was intended to be easier and less expensive to install, operate and maintain. Its design also improves the ability to withstand earthquakes and plane crashes and is less vulnerable to a cutoff of electricity, which is what set off the triple meltdown at Fukushima.