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PSR Iowa Leads Fight Against Nuclear Subsidies

January 19, 2012

As the nuclear industry renews its effort to persuade legislators, taxpayers and ratepayers to prop up its uneconomic industry, PSR Iowa is leading a grassroots campaign against an advanced cost recovery bill, a measure which would enable utilities to collect the capital expense for a new nuclear reactor in advance from their customers. A number of environmental, consumer protection and agricultural groups have found common ground in seeking to defeat the bill. PSR Iowa has been highlighting the dangers and risks of nuclear reactors, and pressing the Iowa legislature to eschew legislation that would put Iowans at risk.

The bill, which is being seriously considered by the Iowa House of Representatives, was supported by MidAmerican Energy.  If the bill passes, MidAmerican would be allowed to recover all development costs from ratepayers and retain the advanced payments, if for any reason, a risky new nuclear reactor is not built.

The bill seems to be growing weaker and weaker these days as the first deadline approaches for moving legislation this year.  The bill passed quickly out of a subcommittee that was heavily in favor of the legislation, but has stalled in the full Senate committee as legislators have learned of the huge financial risks of early cost recovery.  A recent poll by the Des Moines Register found that 77% of Iowans would oppose early cost recovery for new nuclear development.

For more information, contact Paul Deaton, PSR Iowa.

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