House Commerce Committee: Enough support to move bill for new nuclear power plant

DES MOINES - The chairman of the Iowa House Commerce Committee says there's enough support to move a bill that sets out how a new nuclear power plant would be built in Iowa.

“I still sense there's a lot of support on this bill, especially because there are concerns with a lack of new (energy) generation in this state,” said Rep. Chuck Soderberg, R-Le Mars.

Soderberg's comments came after a special committee hearing on the bill Wednesday. The legislation had already been through the process necessary to bring it to the floor for a vote, but Soderberg called the special hearing after the earthquake and tsunami that impacted Japan's nuclear power plants.

Still, only about 15 minutes of the hourlong meeting was taken up by talk of potential hazards and safety. Most of the talk focused on rate increases and the lack of financial risk to MidAmerican Energy if it moves ahead with plant construction.

“We're not opposed to nuclear energy,” said Steve Falck, a senior policy advocate for the Environmental Law and Policy Center. “We want a policy that doesn't put all the risk on the rate payers.”

The legislation virtually guarantees that MidAmerican could recoup the costs of building the plant, even if it is begun and not completed.

MidAmerican CEO William Fehrman told lawmakers that nuclear energy would likely be the “only viable option” to meet the state's energy needs. He said proposed federal regulations on coal plants and the volatility of natural gas make both those less attractive than nuclear. He added that the technology for wind, solar and other renewable energy resources isn't developed enough to be cost-efficient on the type of scale that a nuclear generator could provide.

Anthony Carroll, associate state director for the AARP, said the organization was “strongly” opposed to the bill because it puts seniors and other people on fixed incomes on the hook for what she said should be a power company expense.

Soderberg said the provision in the bill that allows the utility to charge customers for money spent on a plant that could not be built makes the collection payable over 50 years.

“I don't think any company would risk going forward with something if they think they might not get paid back for 50 years,” he said.

The future of the legislation is still in doubt as the events in Japan have caused several lawmakers to ask that the legislation be studied for another year.

By Mike Wiser