July 29, 2014 | By Barbara Vergetis Lundin

Existing nuclear energy plants provide one-fifth of the country's electricity, are part of our diverse energy mix and help lower the cost of generating electricity for consumers by more than $93 billion a year, according to an IHS Energy report. However, current market conditions could lead to a less-diverse power supply -- which could include a reduction in the nation's nuclear plants -- meaning serious economic consequences in terms of lost GDP and jobs. A diverse energy mix helps consumers by producing lower, less volatile power prices, among other economic benefits. 

These economic benefits may be threatened as a result of premature nuclear energy plant closures, emphasizing the need to preserve these valuable assets and prevent an over-reliance on any one generation source. Some existing nuclear energy plants face economic and policy challenges that threaten their continued operation. In fact, within the past year, four nuclear energy reactors have announced plans to close prematurely due to these conditions, despite years of useful operating life remaining.

The study concludes that, with reduced energy diversity, average wholesale power prices would increase by about 75 percent and retail power prices would increase by 25 percent. The effect of these price increases would reduce U.S. gross domestic product by nearly $200 billion, result in one million fewer jobs, and decrease a typical household's annual disposable income by about $2,100.  

"The IHS study clearly demonstrates that diversity in power generation is a critical factor in ensuring cost-effective electricity prices for consumers and our economic prosperity," said Senator Evan Bayh, co-chair of Nuclear Matters. "Yet, the need for an energy strategy that includes a variety of generation sources tends to be taken for granted… which is perhaps why our nation's existing nuclear energy plants find themselves in the bind they're in today. Hopefully, this report will serve as a wake-up call on the importance of sustaining our existing nuclear energy plants -- failure to do so would harm Americans' pocketbooks as well as our ability to generate reliable, carbon-free electricity." 

For more:
- download the report

 

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