Risk insurance provisions attached to energy bill

Risk insurance provisions attached to energy bill

Washington (Platts)--26Jul2005

Provisions calling for federal risk insurance for new advanced reactors were
attached to broad energy legislation late July 25 as House and Senate
conferees were wrapping up work on the bill. The risk insurance amendment
offered by Sen. Pete Domenici (R-N.M.) would create a $2-billion program aimed
at easing utility and Wall Street concerns about financial losses from
regulatory delays in full-power operation of the first six reactors receiving
NRC's new combined construction and operating licenses (COL). Up to three
different reactor designs could be involved in the program. The first two
reactors would be eligible for up to $500-million each. The remaining four
could receive up to $250-million each. The bill does not stipulate how the
insurance would be funded, leaving open options that either appropriations or
money collected from utilities could be used. A congressional staffer said
today that funding, as well as the amount of any insurance premium, would be
negotiated during DOE-utility talks for individual risk insurance contracts.

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