A newly released memo from the staff of the Iowa Utilities Board has provided a stinging economic critique of legislation passed by the Iowa House in 2011 which would make ratepayers liable for massive utility costs and cost overruns from building new nuclear power plants.

“The company would be guaranteed a profit on all spending up to this point,” it said.

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“This could create a stronger incentive to walk away form a plant than complete it.” them in advance for construction costs isn’t in the public interest, Iowa regulators said.

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The analysis warns the plan would turn traditional utility regulation on its ear.

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“This provision would exempt proposed nuclear plants from the existing requirement that a public utility that proposes a new plant must show that it has considered feasible sources of long-term supply and the proposed plant is reasonable when compared to those alternatives,” it said.

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It also says the proposed changes could affect more than just nuclear power in Iowa.

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“While the current bill restricts those changes to nuclear power, staff believes some provisions may go beyond leveling the playing field and could give a nuclear power plant unintended advantages over alternative sources of electric power,” it said.

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Iowa Utilities Board – Comments on HF 561 as amended by S3380

Source: ENews Park Forest

Source: IUB Analysis

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