Letter: Nuke utilities pay for most of Yucca

Wednesday, Aug. 31, 2005 | 9:20 a.m.

This refers to your Aug. 17 editorial, "Yucca's cost is no object?"

The point made that there is likely to be cost growth for the repository project probably has some basis, as both regional and national construction cost trends suggest. I would agree that a more current cost estimate is needed, but also note that the 2001 estimate was made in "constant 2000" dollars, which is important to recognize for a project that is to extend over a very long construction and operational period.

You were in error when you wrote that the Energy Department should level with "the taxpayers of Southern Nevada and the whole country" who are "footing the bill." There is an agreed cost-sharing formula for the repository program expenses in which nuclear utilities pay 72.8 percent of the costs and the Defense Department budget pays for the balance. Nevada taxpayers are helping to pay for 27.2 percent of the repository costs and nuclear utilities and their customers in states using nuclear energy are paying the larger share.

Nuclear utilities have been paying fees to the Treasury for nuclear waste disposal since 1983 and still do today. Congress appropriates all repository funds, but the point is that it also collects revenue from utilities to pay the majority of those funds. The energy secretary is required by law to periodically assess the adequacy of the fee rates to see if they need to be adjusted.

BRIAN O'CONNELL Washington, D.C.

Editor's note: The writer is director of the Nuclear Waste Program Office of the National Association of Regulatory Utility Commissioners.