Will stranded costs scuttle the nuclear industry?

This article addresses the subject of stranded, or unrecoverable costs and their effect on the nuclear utility industry. Data is presented that shows that the utility stranded cost of $73B in generation assets is approximately 80% due to nuclear investment. This represents approximately 35% of investor-owned utilities' total stranded assets. Those utilities with significant exposure are noted. Data is also presented on the production costs/KWh for each operating nuclear plant in the U.S. for the calender year 1994. The question of whether stranded costs may result in the demise of certain non-competitive nuclear power facilities is addressed, and it was concluded that operating and maintenance costs would be the most important determinant of which plants fail to make the cut in the competitive markets now unfolding