McCain’s Nuclear Power Plan Could Cost Billions

September 11 - According to a recent article in Bloomberg, John McCain's plan to create 45 new nuclear reactors by 2030 would cost power plant producers roughly $315 billion - around $15 billion a year - with taxpayers bearing much of the financial risk. The article explains that the key to encouraging the development of these plants is federal government loan guarantees. However, according to a 2003 Congressional Budget Office report, the default rate on nuclear construction debts could be as much as 50 percent.

These loan guarantees could be financed through revenue from auctioning emissions permits in a carbon cap-and trade system. Such a system could raise between $50 billion and $300 billion a year, according to CBO. However, the McCain campaign has said it would only auction a small portion of permits, in the range of $5 billion a year.