U.S. government says loans for nuclear plants complicated

WASHINGTON (Reuters) – U.S. Energy Secretary Steven Chu said on Friday that the process for approving federal loan guarantees for new nuclear power plants has become “complicated,” but the department still expects to issue its first loan deals very soon.

“It was more complicated than I thought…these are multibillion dollar loans,” Chu told reporters at a lunch briefing at Energy Department headquarters, when he was asked why it was taking so long for the department to make a decision on the loan guarantees.

Congress authorized $18.5 billion for nuclear loan guarantees in 2005, hoping to revive development of the carbon-free source of energy. Investments in nuclear power have dried up on soaring costs following the 1979 accident at Three Mile Island.

The department said last month that it was close to issuing its first loan guarantees to build nuclear reactors. Chu reiterated that message: “It is soon, that’s all I can say.”

Reuters