Business and Finance

State regulators should aggressively investigate AmerenUE’s pursuit of a second nuclear power plant even though a decision whether to build is three years away, Missouri’s public counsel said.

Public Counsel Lewis Mills Jr., who represents utility customers, asked the Missouri Public Service Commission to open a case to examine AmerenUE’s planning process and the cost of another nuclear plant, including financing costs.

"The commission should hire consultants, beef up its engineering staff and do everything within its power to be able to fully and responsibly address AmerenUE’s decision-making process as well as AmerenUE’s ultimate decision," he said in a PSC filing late Monday.

An early analysis by Mills’ office indicates another nuclear plant, including interest, could cost AmerenUE customers $19 billion to $41 billion over its 60-year life.

AmerenUE said it’s planning a response to the filing, and is only exploring the possibility of another nuclear plant.

"The Office of Public Counsel appears to want to limit those options before a decision to build is ever made," spokeswoman Susan Gallagher said in a statement. "This would severely jeopardize Missouri’s energy independence and the economic impact of what would be the largest construction project in Missouri history."

AmerenUE. a unit of St. Louis-based Ameren Corp., would need PSC approval to build another nuclear plant but won’t seek authority unless it decides to go forward with the project.

AmerenUE has taken visible steps to develop another nuclear plant in central Missouri. They include filing a construction and operating license application with the U.S. Nuclear Regulatory Commission in July.

However, the utility won’t commit to the project until at least 2011, and the decision will depend on factors such as energy prices, regulations on greenhouse gas emissions and construction and financing costs (paydayloans).

AmerenUE’s decision also will hinge on whether the state Legislature reverses a law that prevents electric utilities from charging customers for power plants before they are operational.

The so-called construction works in progress law (CWIP) was approved by Missouri voters in 1976 as part of a grass-roots campaign to halt AmerenUE, then Union Electric Co., from building a second nuclear plant.

AmerenUE has said a large new coal or nuclear power plant will be required by 2020 to help meet growing electricity demand, and that nuclear technology is preferable right now because of the likelihood of climate change legislation. Executives have said they won’t seek to build another nuclear plant unless it can charge customers during construction.

Utility officials have estimated the plant’s upfront construction cost at $6 billion, or as much as $9 billion with financing costs. However, those figures are only industry estimates and not specific to a second Callaway plant.

The analysis by the public counsel indicates the actual revenue needed to support another nuclear plant over its 60-year life ranges from $19.59 billion to $41.67 billion, depending on the regulatory structure.

Given what’s at stake for AmerenUE and its customers, its imperative for the PSC to be proactive in its examination of the utility’s plans, Mills said.

"We don’t know the cost yet," he said. "And it’s hard to weigh the options if we don’t know what the cost is."

jtomich@post-dispatch.com | 314-340-8320

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