Learn more about our policy experts.

Media Contacts

Angela Bradbery, Director of Communications
w. (202) 588-7741
c. (202) 503-6768
abradbery@citizen.org, Twitter

Barbara Holzer, Broadcast Manager
w. (202) 588-7716
bholzer@citizen.org

Karilyn Gower, Press Officer
w. (202) 588-7779
kgower@citizen.org

Dan Hockensmith, Communications Officer (Global Trade Watch)
w. (202) 454-5108
dhockensmith@citizen.org

Other Important Links

Press Release Database
Citizen Vox blog
Texas Vox blog
Consumer Law and Policy blog
Energy Vox blog
Eyes on Trade blog
Facebook/publiccitizen

Follow us on Twitter

 

Feb. 19, 2014   

Nuclear Loan Guarantee: A Costly Act of Desperation for a Failing Project

Statement of Allison Fisher, Outreach Director, Public Citizen’s Energy Program

The announcement today by Energy Secretary Ernest Moniz that his agency has approved a multibillion-dollar taxpayer-backed loan guarantee for the first nuclear reactors to be built in the U.S. in more than 30 years should be viewed as a costly act of desperation for a failing project.

The $8.3 billion loan guarantee for two new reactors at Southern Company’s Vogtle plant in Waynesboro, Ga., was conditionally approved four years ago. Since then, negotiations around the terms of the loan guarantee have been extended five times. Secretary Moniz’s announcement today – that the government has finalized terms with two of three companies – accounts for just $6.5 billion of the loan. With approval for $1.8 billion of the loan still pending, the agency is clearly attempting to give momentum to the stalled project.

The construction of the two new reactors at the Vogtle plant are 21 months behind schedule and $1.6 billion over budget. This not only calls into question the decision to underwrite this risky project with taxpayer dollars, but proves that the same issues that plagued reactor construction more than three decades ago have not been resolved. Moreover, this is a technology that continues to be beset with safety issues and produces toxic wastes that we still don’t have a solution for – hardly a technology the government should be promoting and propping up with taxpayer funds.

No doubt, this is a bad deal for the American people who have been put on the hook for a project that is both embroiled in delays and cost overruns and to a company that has publicly stated that it does not need federal loans to complete the project.

This is a classic case of throwing good money after bad – an unnecessary and unconscionable decision to make with taxpayer money.

###

Copyright © 2014 Public Citizen. Some rights reserved. Non-commercial use of text and images in which Public Citizen holds the copyright is permitted, with attribution, under the terms and conditions of a Creative Commons License. This Web site is shared by Public Citizen Inc. and Public Citizen Foundation. Learn More about the distinction between these two components of Public Citizen.


Public Citizen, Inc. and Public Citizen Foundation

 

Together, two separate corporate entities called Public Citizen, Inc. and Public Citizen Foundation, Inc., form Public Citizen. Both entities are part of the same overall organization, and this Web site refers to the two organizations collectively as Public Citizen.

Although the work of the two components overlaps, some activities are done by one component and not the other. The primary distinction is with respect to lobbying activity. Public Citizen, Inc., an IRS § 501(c)(4) entity, lobbies Congress to advance Public Citizen’s mission of protecting public health and safety, advancing government transparency, and urging corporate accountability. Public Citizen Foundation, however, is an IRS § 501(c)(3) organization. Accordingly, its ability to engage in lobbying is limited by federal law, but it may receive donations that are tax-deductible by the contributor. Public Citizen Inc. does most of the lobbying activity discussed on the Public Citizen Web site. Public Citizen Foundation performs most of the litigation and education activities discussed on the Web site.

You may make a contribution to Public Citizen, Inc., Public Citizen Foundation, or both. Contributions to both organizations are used to support our public interest work. However, each Public Citizen component will use only the funds contributed directly to it to carry out the activities it conducts as part of Public Citizen’s mission. Only gifts to the Foundation are tax-deductible. Individuals who want to join Public Citizen should make a contribution to Public Citizen, Inc., which will not be tax deductible.

 

To become a member of Public Citizen, click here.
To become a member and make an additional tax-deductible donation to Public Citizen Foundation, click here.