Uranium is Costly: Bill For Nuclear Plant in Missouri Worries Consumer Groups

By Tony Messengerand Virginia Young

ST. LOUIS POST-DISPATCH

01/23/2009

JEFFERSON CITY — Missouri's energy debate is about to go nuclear.

A state lawmaker filed a bill in the Legislature on Thursday that sets the stage for a battle between utility interests who want to build a new nuclear plant and consumer groups that are leery of the costs.

The action comes the day after AmerenUE chief executive Tom Voss visited key decision makers in the Capitol to lobby for the bill.

The bill, filed by the Legislature's most senior member — Sen. Delbert Scott, R-Lowry City — would allow investor-owned utility AmerenUE to raise its rates while the nuclear plant in Callaway County is under construction.

The cost for the plant has been estimated at $6 billion or more. The project has been hailed by industry executives and politicians of both parties as a much-needed economic boost to the state. The plant would provide thousands of jobs over a decade or so of construction.

Under Missouri's current law, approved by voters in a ballot initiative in 1976, utility companies are barred from passing costs of a new plant on to consumers until the plant is operating. The law is generally referred to as "construction work in progress," or CWIP.

Changing the law would allow the financing costs of nuclear, wind and solar energy to be added to the rates as the facilities are built. The bill would also apply to coal plants that use the latest technology to reduce carbon emissions.

Scott said the bill addresses two issues: Having adequate power supplies and keeping the cost of energy down.

"If you wait, the cost is going to be a lot higher and you'll have a huge spike in electric rates. This way, we'll continue with low-cost energy and plenty of energy in the state of Missouri," he said.

Scott will face a battle from consumer groups, who say they aren't opposed to a nuclear plant but don't believe Ameren should be able to charge consumers until it is built. By repealing the current law, the utility would have no incentive to keep costs down, said John Coffman, a lobbyist for the Consumers Council of Missouri.

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