U.S. to revive dormant nuclear-power industry

Later this year, three utilities -- Entergy, Exelon and Dominion Resources -- will begin seeking licenses to build new nuclear plants, reviving a practice essentially abandoned in America after 1979's Three Mile Island near-meltdown.

Bush administration officials and nuclear industry leaders speculate that the first new nuclear-power plant will be finished around 2010, probably next to an existing nuclear generator somewhere in the Southeast.

But even with robust new federal help, iffy economics, worries about plant security in an age of terrorism and continuing fears about safety risks make some outside experts doubtful that nuclear power is ready for a comeback.

The last five U.S. nuclear power plants cost 11 times as much to build per kilowatt produced as do current natural-gas plants.

Even if new next-generation nuclear plants can be built much more cheaply, their construction costs still are likely to be two to four times higher than natural gas, coal, or wind plants, according to the U.S. Energy Information Administration.

Both the Congressional Budget Office and the investment-rating firm Standard and Poor's concluded recently that investing in loans to build large nuclear power plants is a bad risk.

Some analysts think the same logic will keep nuclear power dormant.

"All that's happening right now is that the pieces are being put into the puzzle, but the puzzle hasn't been solved yet," said Geoff Rothwell, a Stanford University economist who specializes in nuclear issues.

America's 103 nuclear power plants produce about 20 percent of the nation's electricity, but the last one to go on line, Watt's Bar in Tennessee, turned on in 1996 after 23 years of construction and billions of dollars in cost overruns.

The biggest sign of a looming resurgence: The Senate voted 50-48 last week in favor of $15 billion in federal loan guarantees for companies to build six or seven new nuclear power plants.

The terms were part of broader energy legislation; the House of Representatives has voted for similar but lesser aid.

Such support from the federal government -- as well as environmental and economic problems nagging other power sources -- is prompting nuclear proponents to dust off their construction plans.

Industry officials are optimistic because:

- The current Senate energy bill either would provide straight loan guarantees for half the cost of power plant construction or commit the federal government to buy much of their power.

- Last year, the Bush administration cleared the way to solving the looming nuclear-waste disposal problem by approving Yucca Mountain in Nevada as an eventual dump site.

- The administration advocates a long-term switch to hydrogen as a fuel source, especially for cars. The Senate energy bill includes funding to build a $1.1 billion test project for a new type of nuclear power plant in Idaho that also would produce hydrogen.

- Natural gas prices are soaring.

- Efforts to combat global warming and air pollution could make coal and natural gas power plants more expensive and nuclear power more desirable.