Constraints on nuclear power development in the United States

The U.S. nuclear option appears, at this time, to be disappearing. Determinants of energy supply seem to be changing from engineering and economic factors to other considerations. Regulatory and financial constraints now appear to be dominating the guidelines for electrical energy expansion. American electric utilities, for the most part, have not been able to obtain sufficient revenues to cover their costs of production. What price increases that they are being allowed to charge their customers come too late to keep up with inflation. They require increasing quantities of outside funding in the form of debt and equity capital. This they can only obtain at record high rates, if at all. Most utilities are not even earning what their regulators have determined are fair returns. Financial problems and regulatory tangles severely affect nuclear power, despite its proven technology and environmental and economic benefits. If the United States loses the nuclear alternative, the economic consequences of limiting fuels for electric base load generation to coal only will be severe; analogous to a monopoly situation in fuel supply. It is doubtful, despite the huge resources of coal, that the coal industry can satisfy even a reduced future demand. The question then becomes whether the technological leader of the world may in the future be faced with blackouts and rationing of electricity