Publication Laka-library:
Due diligence on the economics and business risks of new nuclear power (2010)
| Author | Craig A. Severance |
 |
6-01-0-10-84.pdf |
| Date | March 2010 |
| Classification | 6.01.0.10/84 (COSTS) |
| Front | 
|
From the publication:
Due Diligence
on The Economics and Business
Risks of New Nuclear Power
Craig A. Severance CPA
Author, Business Risks to Utilities as New Nuclear Power Costs Escalate
(Electricity Journal, May 2009)
Co-
Co-Author, The Economics of Nuclear and Coal Power (Praeger, 1976)
Website Resources: www.EnergyEconomyOnline.com
March 4, 2010
Brookings Institution/Global Public Policy Institute Conference
“Towards a Nuclear Power Renaissance?
Challenges for Global Energy Governance”
Governance”
Potsdam, Germany
Evaluating New Nuclear Power
Economics and Business Risks
Multiple studies & projections
Levelized Cost of Energy primary focus
Costs unproved, rely on nuclear vendors
Promoter business plans always look
competitive – yet most have serious
weaknesses
Due Diligence process asks questions that
highlight strengths and weaknesses
Trillions of dollars of energy investment
now at stake
Serious weaknesses exposed? Go slow.
“Who Stopped New Nuclear Power?”
Not environmentalists – government
policies always favored nuclear power
Not Three Mile Island 1979 accident –
cancellations already underway before
accident
Utility boards & Wall Street stopped
nuclear expansion after true costs,
business risks evident
Core Due Diligence Tests
1. Does proposal match customer
needs?
2. Financial Ability/Financial Stress
3. Reliability of Cost Projections
4. Assessment of Competition
5. Reliability of Revenue Projections
Business Test #1:
Does Proposal Match Customer Needs?
– Current Utility Environment –
Demand forecasts highly uncertain
Energy efficiency efforts increasing
Smart Grid to be implemented
Distrib