Contrary to MidAmerican Energy’s full-page “Straight Talk” ad in The Des Moines Register, customers’ bills will increase if House File 561 is passed. The truth is that the public is not getting “straight” answers.
HF 561 does not increase rates, but it dictates to the Iowa Utilities Board how rates must be determined. That will result in higher rates. Amendments still allow MidAmerican Energy to keep any rates collected if the nuclear plant is never constructed nor completed.
Utility executives told legislators in 2011 that consumers’ electricity bills would rise by a minimum of 10 percent for each $1 billion MidAmerican spends on a new plant. Now, they claim they will spend only $1 billion to $1.5 billion.
Those same executives said last year that they were planning a 1,000- to 1,600-megawatt plant. Now, we are hearing 540 megawatt. New small module reactor technology being explored would produce approximately 45 megawatts each.
House File 561 does not confine MidAmerican to small module reactors, so it could choose to build a conventional nuclear plant. If 540 megawatts requires 12 units, the cost could be as much as $14.4 billion to $21.6 billion. A $5 billion estimate for a Florida plant escalated into a $22 billion, unfinished debacle with no electricity being generated and no refund for ratepayers.
Iowa utility consumers cannot afford such exorbitant electric bills.
Nuclear energy should not be an option for Iowa. MidAmerican maintains it needs the nuclear power plant to provide “baseload” to its customers. The fact is, the energy company does not need a central power plant for baseload.
Renewable sources can generate the energy and the capacity needed. Sierra Club applauds MidAmerican Energy for its investment in wind power, and the company is making some good choices for the future. However, nuclear power is not one of them.
Serious energy efficiency, conservation and rebate programs could facilitate a reduction in usage, but utilities earn greater profits on increased energy sales. Utilities have consistently resisted legislation that would allow homeowners, farmers and businesses to install their own renewable energy sources and be paid for excess electricity produced.
Any increased opportunities to produce renewable energy disappear into thin air if Iowans are strapped with paying for a nuclear power plant for the next 40 to 60 years.
MidAmerican’s contention that nuclear power is reliable and safe is a myth. Risks from natural disasters and long-term storage of spent fuel are unpredictable.
The Fort Calhoun nuclear power plant north of Omaha provides electricity to 754,000 people. While shut down for refueling, the Missouri River flooded, then a fire knocked out the used-fuel cooling system. Although the nuclear power plant escaped disaster, Fort Calhoun demonstrates how vulnerable nuclear power plants can be.
An accident could render thousands of acres of land uninhabitable.
After decades of trying to find an appropriate strategy for the radioactive spent fuel, a site has yet to be found. The Energy Department has abandoned consideration of Yucca Mountain in Nevada as well as sites in Texas and Washington state. The Nuclear Regulatory Commission is considering allowing nuclear power plants to store spent fuel on site for 300 years until a permanent depository can be found.
Iowans don’t need or want a new nuclear power plant. Poll IOWA’s survey of 600 Iowans in April 2011 found that 74 percent opposed paying higher electric rates for a new nuclear power plant while 17 percent favored it. Poll responses indicated that 70 percent preferred investing in renewable sources while 22 percent preferred nuclear reactors.
MidAmerican received legislative approval in 2010 to charge ratepayers $15 million for a feasibility study. A report has yet to be presented. Executives shy away from even hinting where a plant might be sited, exactly how much it might cost and how many small module reactors may be needed.
Iowans deserve honest answers from MidAmerican Energy.