Missouri delegation presses Chu on nuclear funding
Ameren Missouri officials were stunned two days before Thanksgiving when the Department of Energy passed over the utility’s application for a share of $452 million to help commercialize a Westinghouse-designed small nuclear reactor in the Show-Me State.
The Ameren-Westinghouse partnership, announced last April on the lawn of the governor’s mansion, spawned a huge public relations campaign among a broad coalition of electricity providers, labor, the state’s university system and politicians from both parties. All of them trumpeted the potential to use the federal subsidy to jump-start a new industry in Missouri.
But the hype was short-lived. The Energy Department’s decision to fund a single small reactor project in Tennessee led by Babcock & Wilcox ended those dreams — or at least put them on hold.
Now, Missouri’s congressional delegation is pressing Energy Secretary Steven Chu to explain the decision.
In a letter sent Wednesday, Sens. Claire McCaskill and Roy Blunt and five members of the state’s House delegation asked Chu why only one venture to commercialize small modular reactors was funded instead of two, as suggested in the department’s fiscal 2013 budget request.
“By issuing a single award, DOE is contradicting its own rationale and justification for the program,” the letter said. “Moreover, it is counter to the president’s goals for supporting SMR technology to strengthen our competitive edge in the global clean energy race.”
The department’s original funding solicitation sought projects with the greatest potential to be licensed by the Nuclear Regulatory Commission and put in service by 2022.
In announcing the grant award on Nov. 20, the government said it would announce a follow-up “funding opportunity” to help advance development of new reactor technologies, including small modular reactors. The next grant opportunity will focus on “innovative technologies” with a longer licensing and deployment horizon.
The Ameren-Westinghouse partnership has expressed interest in seeking any additional funds. Details of the next phase of the grant competition have not been announced, including the timing or amount of additional funding.
Missouri congressional members said they don’t understand the process, or why funding criteria are being changed.
“What is the justification for a second FOA (funding opportunity announcement) when all of the selection criteria from the president’s SMR program priorities are identified in the first FOA?” the letter said.
The delegation asked for answers by Feb. 15. The department didn’t have an immediate response on Wednesday.
Beside McCaskill and Blunt, U.S. Reps. Sam Graves, Vicky Hartzler, Billy Long, Blaine Luetkemeyer and Ann Wagner signed the letter.
Ameren Missouri officials say they remain interested in funding that’s made available for small reactor design and licensing.
Warner Baxter, the utility’s chief executive, expects the department to announce details of the new funding opportunity in the coming weeks.
Baxter said the first SMR grant competition drew eight applicants that were whittled down to six finalists.
“It is my understanding that we were absolutely No. 2,” he said in a meeting last week with the Post-Dispatch editorial board.
With its nuclear plans in limbo, Baxter said, Ameren won’t ask the legislature this session to repeal the law that prohibits charging customers for equipment before it’s put into service.
Instead, the utility is eyeing a measure that would provide faster payback on infrastructure projects — an initiative that’s sure to draw fire from consumer advocates in the wake of continued electric rate increases over the past five years.
