Nuclear plan unfair for ratepayers

By Bruce Koeppl

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As AARP has testified before the Iowa Senate Commerce Committee chaired by Sen. Swati Dandekar, D-Marion, AARP is not opposed to nuclear power as a viable option for the state's future energy mix. AARP placed ads opposing Senate File 390 (House File 561) because, rather than rely on shareholders to finance a new power plant, this legislation shifts that cost and risk for nuclear power construction to ratepayers.

Specifically, this proposal instructs the Iowa Utilities Board to allow utility companies to shift the cost to ratepayers for the planning, permitting, pre-construction and construction costs for a possible nuclear plant, years before the plant is built, or the plant design has even been approved.

The utility company would not even have to show that it considered other, potentially lower-cost options before building. These are just a couple ways this legislation changes the rate review and oversight process traditionally used by Iowa Utilities Board.

Traditional consumer protections, which have served Iowa ratepayers well, are sorely lacking. This legislation puts no cap on how much rates can increase (yet consumers will not be receiving power from the nuclear plant for many years); consumers are not protected from cost overruns; and consumers are not protected if the proposed plant is canceled. This proposal allows utility companies to force customers to continue paying accumulated costs and profit to the utilities even if the plant is canceled.

The April 2 Cedar Rapids Gazette Editorial best encapsulates AARP's position moving forward:

“We think customers should risk less and the utility company's investors bear more of such a huge investment …. A proposed commission to thoroughly study the safety and cost issues of nuclear power and whether expansion of renewable energy alternatives could realistically play a bigger role makes some sense. A project with this much potential impact on our future and our pocketbooks deserves extra scrutiny.”

We stand by our ads and hope they cause ratepayers to tune in to how HF. 561 and SF 390 would impact their pocketbooks. We hope Iowans will stand with our belief that ratepayers should not be saddled with the higher costs and greater risk burden allowed by HF. 561 and SF 390.

Bruce Koeppl is AARP Iowa senior state director. Comments: bkoeppl@aarp.org