Jack Spencer at the Hertiage Foundation has published an important new paper with a substantial list of references that traces the effects of a shift in US public policy during the period from 1953-1980 regarding nuclear power from strong support to overt discouragement and over regulation. The paper is titled Competitive Nuclear Energy Investment: Avoiding Past Policy Mistakes and it is a must read for people who want to make the current renaissance in nuclear energy both real and sustainable.
I had one minor quibble with the paper, like many people (even yours truly on occasion), Mr. Spencer was a little careless with his units in one small section of the paper. In the first paragraph under the subheading of Overregulation Leads to a declining industry, he wrote:
Prior to 1981, electricity cost an average of approximately $600 per kilowatt hour. After 1981, electricity cost two to six times that rate,[20] which means that either consumers paid significantly more or utilities incurred losses if they did not charge market prices. Neither circumstance was sustainable.
Being the kind of guy I am, I sent him a note. Here is an excerpt from that note:
The statement needs to be revised – we certainly have never paid $600 per kilowatt hour – today’s average electricity cost in the US is about 8.5 cents per kilowatt-hour. The average household use of electricity is more than 11,500 kilowatt-hours per year. (note: The original note said 11,000 kilowatt hours per month, the post was corrected at 6:05 pm on 16 Nov 2007.)
Here is a suggested revision:
“Prior to 1981, electrical power plants cost an average of $600 per kilowatt of generating capacity. After 1981, plant capital costs increased to two to six times that amount, [20] which means that consumers paid significantly more or utilities incurred losses if they did not charge prices high enough to cover the capital costs. Neither circumstance was sustainable.”
As I completed reading the paper, I noticed that Mr. Spencer has also published another paper, along with Nick Loris, titled Congress Should Not Overlook Benefits of Nuclear Energy. I think I have some more reading to do this morning!
