WASHINGTON--(BUSINESS WIRE)--A report issued last week by IHS CERA demonstrates that existing nuclear energy plants, which provide one-fifth of the country’s electricity and are part of our diverse energy mix, help lower the cost of generating electricity for consumers by more than $93 billion a year. A diverse energy mix helps consumers by producing lower and less volatile power prices, among other economic benefits. Currently, these economic benefits may be threatened as a result of premature nuclear energy plant closures, emphasizing the need to preserve these valuable assets and prevent an over-reliance on any one generation source.
The study, titled "The Value of US Power Supply Diversity," also quantifies the impact of reduced energy diversity on our nation and on other aspects of the economy. Notably, the study concludes that with reduced energy diversity, average wholesale power prices would increase by about 75 percent and retail power prices would increase by 25 percent. The effect of these price increases would reduce U.S. gross domestic product by nearly $200 billion, result in one million fewer jobs and decrease a typical household’s annual disposable income by about $2,100.
Some existing nuclear energy plants face economic and policy challenges that threaten their continued operation. Within the past year, four nuclear energy reactors have announced that they will close prematurely due to these conditions, despite the fact that they have years of useful operating life remaining.
“The IHS study clearly demonstrates that diversity in power generation is a critical factor in ensuring cost-effective electricity prices for consumers and our economic prosperity,” said Senator Evan Bayh, co-chair of Nuclear Matters. “Yet the need for an energy strategy that includes a variety of generation sources tends to be taken for granted in this country, which is perhaps why our nation’s existing nuclear energy plants find themselves in the bind they’re in today. Hopefully, this report will serve as a wake-up call on the importance of sustaining our existing nuclear energy plants – failure to do so would harm Americans’ pocketbooks as well as our ability to generate reliable, carbon-free electricity.”
“Unfortunately, current market conditions are leading America towards a path where having a less diverse power supply is a very real possibility,” said Senator Judd Gregg, co-chair of Nuclear Matters. “This study demonstrates that the loss of a diverse energy mix that includes existing nuclear plants will have serious economic consequences for our nation. We cannot afford the effects that such a loss will have on our economy, in terms of lost GDP and job losses.”
Nuclear Matters is a bipartisan education campaign that strives to raise awareness among consumers and policymakers of the need to properly value and preserve America’s existing nuclear energy plants for the many benefits they provide.
A copy of the IHS CERA study can be found here.
About Nuclear Matters
The mission of Nuclear Matters is to inform the public about the clear benefits that nuclear energy provides to our nation, raise awareness of the economic challenges to nuclear energy that threaten those benefits, and to work with stakeholders to explore possible policy solutions that properly value nuclear energy as a reliable, affordable and carbon-free electricity resource that is essential to America’s energy future.
Supporters of Nuclear Matters include a range of companies and organizations in the energy industry, including Ameren Missouri, American Nuclear Insurers, Arizona Public Service Company, AREVA, Black & Veatch, Burns and Roe Enterprises Inc., Dominion, Duke Energy, Energy Future Holdings Corporation, Energy Northwest, Exelon Corporation, FirstEnergy Corporation, Hitachi GE Nuclear Energy, Lightbridge Corporation, Nebraska Public Power District, NextEra Energy Inc., Omaha Public Power District, Pacific Gas and Electric Company, South Texas Project Nuclear Operating Company, Southern Company, Tennessee Valley Authority, U.S. Enrichment Corporation, and Westinghouse Electric Corporation.