Cooperative pushes for nuclear plant
The board of directors of Central Electric Power Cooperative passed a resolution supporting the passage of Senate Bill 50 that also has a companion bill, House Bill 124. The Missouri legislation would preserve nuclear power as an option for future power supply and enable the state’s electric industry to obtain funding for a potential nuclear unit in Missouri.
The passage of these bills would allow power suppliers of Missouri to pursue an early site permit from the Nuclear Regulatory Commission and strategically position Missouri to take advantage of possible federal incentives to promote nuclear energy.
The cooperative’s action supports Gov. Jay Nixon’s announcement Nov. 19 of the state’s need for legislative changes to meet projected electricity demands for Missouri residents by 2023.
Sen. Mike Kehoe and other senators, along with Rep. Jeanie Riddle and others in the House of Representatives have put forth bipartisan legislation, Senate Bill 50 and House Bill 124 that preserve nuclear power as a supply option and potential construction of a second nuclear unit at Ameren’s Callaway Plant in central Missouri. Ameren currently has a nuclear unit already operating at that site.
Associated Electric Cooperative, Central Electric Power Cooperative’s wholesale power supplier, joined a collation of six additional regional power suppliers, including Ameren Missouri, The Empire District Electric Co., the Association of Missouri Electric Cooperatives, Kansas City Power & Light and the Missouri Public Utility Alliance in support of the legislation.
According to Central Electric Power cooperative general manager Donald Shaw, the cooperative has a history of providing low-cost, safe and reliable electric service to its member-owners throughout its service territory. Given existing regulatory and economic uncertainties of coal-based power suppliers, Central Electric Power Cooperative considers the legislation the most prudent course of action to meet future needs of its members.
2 bills would aid utility companies
Move could meet increase in energy demands, reduce dependence on oil
By Ceil Abbott, The Lake Today
Senate Bill 50, sponsored by Sen. Mike Kehoe, R-Jefferson City and House Bill 124, sponsored by state Rep. Jeanie Riddle, R-Mokane, are both designed to aid utility companies interested in forming a coalition to build a second nuclear power plant in Mid-Missouri.
The two bills, which mirror each other, were introduced into the respective houses of the General Assembly in early December for consideration during the 2011 legislative session.
According to the Missouri State Senate Website, Senate Bill 50 says any electric company seeking that receives an early site permit from the U.S. Nuclear Regulatory Commission to build a nuclear plant can begin recovering the costs of seeking that permit from its customers even before actual construction of the plant starts.
A description of the bills posted on the senate website reads as follows, “Beginning Oct.1, 2011, any electric company seeking an early site permit from the U.S. Nuclear Regulatory Commission must submit reports to the Missouri Public Service Commission (PSC) every six months. The reports must document the work completed and costs incurred up to that point toward the acquisition of the early site permit as well as the projected amount of work and costs remaining. If the total cost of obtaining the early site permit is expected to exceed $40 million, the company must also include an explanation in its reports as to why expenditures beyond that amount are prudent.
Once the permit is obtained, the electric company may recover the expenditures for the permit from its ratepayers through rates and charges over a period not to exceed 20 years. The company may begin the cost recovery on the effective date of tariffs approved by the PSC at the company’s first general rate proceeding following the acquisition of the permit. Other electric companies that also incur expenses toward the Early Site Permit may similarly recover their costs through rates and charges.
If an electric company has recovered costs from its ratepayers for an early site permit but the company’s interest in the permit is subsequently sold or transferred, the company must refund its ratepayers up to the amount that the company collected from the ratepayers for the permit.
Ameren Missouri and other utilities have been working for several years to get a second nuclear plant constructed on land the utility owns near its current nuclear power plant in Callaway County.
Gov. Jay Nixon and a number of other politicians have publicly supported the construction of a second nuclear power plant as one avenue for meeting increasing demands for more energy by Missourians in the upcoming decade and for reducing America’s dependence on foreign oil.
