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Nov3-10, 08:36 PM
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Quote Quote by mheslep View Post
Eh? As I understood the article, OMB was setting higher than reasonable, ie forcing higher interest rates than even private capital would have charged. That, and OMB was forcing additional guarantees. So, all above and beyond what would happen without federal involvement, say in China where total plant costs are much lower even though they are exposed to essentially the same world wide cost of capital.
Um the Chinese government is involved in the building of those reactors in China, and they are flush with cash. In the US, we have public utilities or mechant power producers who have to go to the capital markets. The reason for the government loan guarantees is that the utilities could not get financing from the financial markets.

It could very well be that the government is over-estimating the risk of default on the $7.5 billion loan.

The Chinese government can also accept less stingent safety standards since they are will to accept the loss of life that would be unacceptable in the US (unless one lives in New Orleans ). And the Chinese people cannot sue the government or companies they way its done in the US.

Large forgings have so far been ordered from Japan until shops can be established in the US.

Quote Quote by joelupchurch
But the risks are created by the government. We have had two nuclear reactors that the government refused to issue operating licenses. The companies spent billions of dollars and the government wouldn't let them operate the plants.
Which two nuclear reactors? Usually the government has a very good reason not to issue a license. There are two sites under construction - South Texas and Vogtle. The rest are either slowly moving along or have been suspended or deferred for various reasons.